Friday, November 22

Tag: RBI

RBI Imposes Monetary Penalty on Jogindra Central Co-operative Bank for Non-Compliance
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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...
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RBI Imposes Penalty on Ambarnath Jai Hind Co-operative Bank for Non-Compliance
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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...
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RBI Imposes Monetary Penalty on NABFINS Limited for Non-Compliance
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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...
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India’s Forex Fall to $643 Billion, Steepest Decline in 3 Months: What Does It Mean for the Indian Economy?
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BFSI, Business, Economics, Wealthtech

India’s Forex Fall to $643 Billion, Steepest Decline in 3 Months: What Does It Mean for the Indian Economy?

India's foreign exchange reserves declined by $5.4 billion to $643.16 billion for the first time in eight weeks as of April 12, as per data released by the Reserve Bank of India. This is the steepest decline in Forex in over three months. Earlier, it rose by $32.5 billion over a period of seven weeks. Key Points: This is the first decline in Forex reserves in eight weeks. The decline is the steepest in over three months. The decline is attributed to the central bank's intervention in the forex market to control volatility. The rupee settled at 83.47 against the dollar on Friday. Reasons for the decline in Forex Reserves The central bank has been selling dollars in the spot forex market over the last few sessions to prevent a large-scale depreciation in the rupee amid g...
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Decoding RBI’s Draft Guidelines for Payment Aggregators
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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...
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Review of Draft circular by RBI “Amendments to PA (2)”
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Goverment Notice/Circulars, Blog, Fintech, Payments, Review

Review of Draft circular by RBI “Amendments to PA (2)”

Here’s a concise summary based on the draft circular for Payment Aggregators (PAs) issued by the Reserve Bank of India (RBI): Objective: The circular aims to introduce amendments to the Payment Aggregators (PA) framework. Some Key Points of the draft circular: Risk Management: PAs must implement robust risk management practices, including monitoring and mitigating risks associated with transactions. Merchant Onboarding: PAs should ensure thorough due diligence while onboarding merchants. Transaction Limits: PAs must set transaction limits for merchants based on their risk profiles. Escrow Account: PAs must maintain an escrow account with a scheduled commercial bank. Security Measures: PAs should enhance security measures to prevent unauthorized access and fraud. ...
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Regulatory Shift Ahead: RBI Considers Licensing Framework for POS Players, Implications for Pine Labs, Paytm, and More, April’24
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Fintech, Payments

Regulatory Shift Ahead: RBI Considers Licensing Framework for POS Players, Implications for Pine Labs, Paytm, and More, April’24

The Reserve Bank of India (RBI) is reportedly contemplating the implementation of a licensing framework for point-of-sale (POS) operators. This move is expected to have significant implications for major players in the industry, including Pine Labs, Paytm, MSwipe, and BharatPe. The objective behind this proposed measure is to ensure operational consistency and create a level playing field between online and offline payment operators. However, if licences become mandatory, it raises questions about the eligibility . Read more at: https://bfsi.economictimes.indiatimes.com/news/policy/rbi-may-bring-licensing-regime-for-pos-players-impact-pine-labs-paytm-among-others/109328779?utm_source=top_story&utm_medium=homepage   Current Scenario While existing regulated entities such as ...
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Small Finance Bank License: RBI denied licenses 2 more entities
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Banking, BFSI, Lending, Microfinance, Payments

Small Finance Bank License: RBI denied licenses 2 more entities

In a recent development, the Reserve Bank of India (RBI) has turned down two more applications for (SFB) Small Finance Bank licenses, as reported by Moneycontrol. This decision marks a continuation of the stringent scrutiny exercised by the central bank in granting licenses for SFBs. Background of Bank Licenses The central bank had received a total of 12 applications for both small finance bank licenses and universal bank licenses. These applications were submitted by various entities aiming to set up financial institutions that cater to specific segments of the population. The RBI's decision comes amidst the backdrop of a rigorous evaluation process that assesses various aspects including financial stability, governance structures, and business models. With the Indian banking s...
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RBI’s Vigilance Drive: Unauthorised Forex Trading Platforms Under Scrutiny, Banks Called to Action
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Fintech, Banking, Finance, Regtech, Wealthtech

RBI’s Vigilance Drive: Unauthorised Forex Trading Platforms Under Scrutiny, Banks Called to Action

The Reserve Bank of India (RBI) has intensified its efforts to combat unauthorised forex trading platforms, emphasizing the need for heightened vigilance among banks. Governor Shaktikanta Das has raised concerns about banking channels being exploited for funding these platforms, prompting the RBI to take decisive action. Framework for Authorisation of Electronic Forex Trading Platforms The RBI has implemented a robust framework for the authorisation of electronic trading platforms since 2018. This framework ensures strict compliance with regulations and is currently being updated to keep pace with technological advancements that have revolutionized financial markets. Cautionary Advice and Alert List: In response to complaints of cheating and fraud associated with unauthorised trading p...
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