Goverment Notice/Circulars

Kotak Bank’s Digital-Only Zero-Balance Savings Accounts Hit a Roadblock: RBI’s Action

25Apr

By Ankit1 Comment

Banking, BFSI, Goverment Notice/Circulars

Kotak Bank’s Digital-Only Zero-Balance Savings Accounts Hit a Roadblock: RBI’s Action

In a significant development within India’s banking sector, digital savings accounts have been reshaping traditional norms, offering unparalleled convenience and efficiency. Leading this transformation was Kotak811, which exemplified how digital banking is revolutionizing financial management in India. With features like instant activation, zero balance requirements, free virtual debit cards, and credit cards against fixed deposits (without employment or income proofs), Kotak811 met the demands of today’s tech-savvy generation. One standout feature was ActivMoney, allowing account holders to earn up to 7% interest p.a. on savings by automatically investing idle funds into fixed deposits, without penalties for withdrawal. Moreover, digital savings accounts have democratized access to...

RBI Bars Kotak Mahindra Bank From Onboarding New Customers Via Online, Mobile Banking

24Apr

By Ankit2 Comments

Banking, BFSI, Digital Lending, Goverment Notice/Circulars, NBFC, Regtech

RBI Bars Kotak Mahindra Bank From Onboarding New Customers Via Online, Mobile Banking

The Reserve Bank of India (RBI) has taken a decisive step by prohibiting Kotak Mahindra Bank from onboarding new customers through its online and mobile banking channels. Additionally, the bank is barred from issuing fresh credit cards. However, existing customers, including credit card holders, will continue to receive services from the bank. The regulatory action comes in response to significant concerns arising from the RBI’s IT examination of Kotak Mahindra Bank for the years 2022 and 2023. The central bank identified serious deficiencies and non-compliances in various critical areas: IT Inventory Management: The bank’s management of IT assets was found lacking. Patch and Change Management: Inadequate processes for managing software updates and changes. Us...

Building Trust and Confidence: The Regulatory Ecosystem of Lending in India

24Apr

By Ankit1 Comment

Lending, BFSI, Blog, Digital Lending, Goverment Notice/Circulars, NBFC, Regtech

Building Trust and Confidence: The Regulatory Ecosystem of Lending in India

Lending plays a crucial role in India's financial landscape, providing individuals and businesses with access to capital for various purposes. To ensure the stability, transparency, and fairness of lending practices, the lending space in India operates within a robust regulatory ecosystem governed by multiple authorities and regulations. In this article, we will delve into the key components of the regulatory framework for lending in India, shedding light on the various entities and regulations that shape the lending landscape. Reserve Bank of India (RBI): At the heart of India's lending regulatory framework stands the Reserve Bank of India (RBI). As the central banking institution, the RBI plays a pivotal role in regulating the lending sector. It formulates and implements policies a...

RBI Imposes Penalty on Fatehabad Central Cooperative Bank for Non-Compliance with Unclaimed Funds Transfer Rules

23Apr

By Ankit1 Comment

BFSI, Banking, Goverment Notice/Circulars

RBI Imposes Penalty on Fatehabad Central Cooperative Bank for Non-Compliance with Unclaimed Funds Transfer Rules

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹2 lakh on The Fatehabad Central Cooperative Bank Limited, Fatehabad, for contravention of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). The penalty was imposed based on the findings of a statutory inspection conducted by National Bank for Agriculture and Rural Development (NABARD) with reference to the bank’s financial position as on March 31, 2022. The inspection revealed that the bank had not transferred the eligible unclaimed amounts to the Depositor Education and Awareness Fund within the prescribed time limit. This action is in violation of the provisions of section 26A (2) read with section 56 of the Banking Regulation Act, 1949 (BR Act). Also Read: RBI Imp...

RBI Imposes Monetary Penalty on Panvel Co-operative Urban Bank

23Apr

By Ankit1 Comment

BFSI, Goverment Notice/Circulars

RBI Imposes Monetary Penalty on Panvel Co-operative Urban Bank

In a move to ensure compliance with regulatory directives, the Reserve Bank of India (RBI) has imposed a monetary penalty of ₹1.00 lakh on The Panvel Co-operative Urban Bank Ltd., Raigad, Maharashtra. According to the press release, the penalty was levied based on the findings of a statutory inspection conducted by the RBI, which revealed the bank's non-compliance with directions issued under the 'Supervisory Action Framework' (SAF) for Primary (Urban) Co-operative Banks (UCBs). Specifically, the RBI found that the bank had sanctioned fresh loans carrying a risk weight of more than 100%, in violation of the specific directions issued under the SAF. After considering the bank's response to the show-cause notice, the RBI determined that the charge of non-compliance was sustained, warra...

RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance

23Apr

By AnkitNo Comments

BFSI, Banking, Goverment Notice/Circulars

RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3.5 lakh on Jogindra Central Co-operative Bank Ltd., Solan, Himachal Pradesh, for non-compliance with directions issued by National Bank for Agriculture and Rural Development (NABARD) on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. Monetary Penalty The penalty was imposed based on the findings of a statutory inspection conducted by NABARD with reference to the bank’s financial position as on March 31, 2021. The inspection revealed that the bank had delayed in reporting frauds. This action is in violation of NABARD’s directions on ‘Frauds-Guidelines for Classification, Reporting and Monitoring’. Also Read: RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance The RBI h...

RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance

23Apr

By Ankit2 Comments

BFSI, Goverment Notice/Circulars

RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance

The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹3 lakh on Ambarnath Jai Hind Co-operative Bank Limited, Ambarnath, Maharashtra, for non-compliance with certain provisions of RBI directions on ‘Maintenance of Deposit Accounts - Primary (Urban) Co-operative Banks’. The penalty was imposed based on the findings of a statutory inspection conducted by RBI with reference to the bank’s financial position as on March 31, 2023. The inspection revealed that the bank had: Collected fixed penal charges for shortfall in the maintenance of minimum balance in savings bank accounts without giving one month notice to customers regarding minimum balance requirement. Collected penal charges for non-maintenance of minimum balance in inoperative accounts. Charged for the activa...

RBI Imposes Monetary Penalty on NABFINS Limited for Non-Compliance

22Apr

By Ankit1 Comment

Goverment Notice/Circulars, NBFC

RBI Imposes Monetary Penalty on NABFINS Limited for Non-Compliance

The Reserve Bank of India (RBI) has taken strict action against NABFINS Limited, a subsidiary of NABARD, by imposing a monetary penalty of ₹10 lakh (Rupees Ten lakh only) for non-compliance with certain provisions of the Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016. Monetary Penalty In an order dated April 15, 2024, the RBI announced the penalty after conducting a statutory inspection of NABFINS Limited. The inspection focused on the company's financial position as of March 31, 2022. Based on supervisory findings of non-compliance with RBI directions and related correspondence, the RBI issued a notice to the company, giving it an opportunity to explain why a penalty should not be imposed for i...

Health Insurance for All Ages: IRDAI’s Progressive Decision to lift Age Limit of 65 years

21Apr

By AnkitNo Comments

BFSI, Goverment Notice/Circulars, Insurtech

Health Insurance for All Ages: IRDAI’s Progressive Decision to lift Age Limit of 65 years

In a significant move, the Insurance Regulatory and Development Authority of India (IRDAI) has abolished the age limit for purchasing health insurance policies, effective from April 1, 2024. This decision marks a departure from the conventional constraints that previously limited individuals in securing comprehensive health coverage. With the recent announcement, the regulatory body has eliminated the cap on buying health insurance policies, marking a significant departure from the conventional constraints that often limited individuals in securing comprehensive coverage Furthermore, this move is poised to stimulate innovation within the insurance sector. Insurers are now incentivised to diversify their product offerings, catering to a broader spectrum of healthcare requirements. ...

Decoding RBI’s Draft Guidelines for Payment Aggregators

19Apr

By Ankit1 Comment

Fintech, Goverment Notice/Circulars, Payments, Regtech

Decoding RBI’s Draft Guidelines for Payment Aggregators

The Reserve Bank of India (RBI) has recently unveiled draft guidelines for payment aggregators (PAs), and industry experts believe that these regulations are both pivotal and timely. Let’s delve into the details and understand why these guidelines are significant. Boosting the PA Ecosystem and Enhancing Trust The proposed regulations aim to bolster the PA ecosystem, improve digital trust, and promote ethical practices. Here are the key takeaways: Level Playing Field: The guidelines ensure a level playing field by defining PAs as entities that onboard merchants and facilitate payment aggregation for goods and services. This includes both online and physical point-of-sale (PoS) payment modes. Notably, the updated definition now includes physical PoS payment providers w...