The World Opinion

Tag: RBI

  • RBI Cancels Registration Of Four Non-Banking Financial Companies | Economy News

    New Delhi: On Friday, the Reserve Bank of India (RBI) cancelled the certificate of registration of four non-banking financial companies.Those companies are Uttar Pradesh-based Kundles Motor Finance Private Limited, Tamil Nadu-based Nithya Finance Limited, Punjab-based Bhatia Hire Purchase Pvt Ltd, and Himachal Pradeesh-based Jiwanjyoti Deposits and Advances Limited.

    These companies will now not be able to transact the business of a Non-Banking Financial Institution as defined in the RBI Act. In other news, the Reserve Bank of India (RBI) today imposed a monetary penalty of Rs 1 crore on IDFC First Bank Limited (the bank) for non-compliance with certain directions issued by the central bank on ‘Loans and Advances – Statutory and Other Restrictions’. (Also Read: RBI To Soon Launch App To Enable Retail Investors To Participate In Govt Bonds)

    According to an RBI release, this penalty has been imposed in the exercise of powers vested in RBI under the Banking Regulation Act, of 1949. Based on supervisory findings of non-compliance with RBI directions / statutory provisions and related correspondence in that regard, a notice was issued by the RBI to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. (Also Read: RBI To Launch New NRI Scheme For Sovereign Green Bonds In IFSC)

    After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI found, inter alia, that the charge against the bank was sustained warranting imposition of monetary penalty. 

    According to RBI, the bank had sanctioned term loans to a public sector undertaking for financing infrastructure projects, without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and the repayment / servicing of the said term loans was made out of budgetary resources. 

    “The action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transactions or agreement entered into by the bank with its customers. Further, imposition of monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank,” RBI said. 

  • 97.69 Pc Of Rs 2000 Currency Notes Returned: RBI | Economy News

    New Delhi: The Reserve Bank of India (RBI) on Monday said nearly 97.69 per cent of the Rs 2000 denomination bank notes have returned to the banking system, and only Rs 8,202 crore worth of the withdrawn notes are still with the public.

    On May 19, 2023, the RBI announced the withdrawal of Rs 2,000 denomination bank notes from circulation. The total value of Rs 2000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of Rs 2000 banknotes was announced, has declined to Rs 8,202 crore at the close of business on March 29, 2024, the Reserve Bank of India said in a statement. (Also Read: RBI To Not Accept, Exchange Rs 2,000 Notes Today, 01 April 1 –Know Why)

    “Thus, 97.69 per cent of the Rs 2000 banknotes in circulation as of May 19, 2023, has since been returned,” it added. The Rs 2,000 banknotes continue to be legal tender. People can deposit and/or exchange Rs 2000 bank notes at 19 RBI offices across the country. People can also send Rs 2000 bank notes through India Post from any post office to any of the RBI Issue Offices for credit to their bank accounts in India. (Also Read: PM Lauds RBI, Says India Must Become Financially ‘Atmanirbhar’ In 10 Years)

    Public and private entities holding such notes were initially asked to either exchange or deposit them in bank accounts by September 30, 2023. The deadline was later extended to October 7, 2023. Deposit and exchange services at bank branches were discontinued on October 7, 2023.

    Starting October 8, 2023, individuals have been provided with the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at the 19 offices of the RBI.

    The 19 RBI offices depositing/exchanging the bank notes are in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram. The Rs 2000 bank notes were introduced in November 2016, following the demonetisation of the then-prevailing Rs 1,000 and Rs 500 bank notes.

  • PM Lauds RBI, Says India Must Become Financially ‘Atmanirbhar’ In 10 Years | Economy News

    Mumbai: Over the next 10 years, India must strive to become a ‘Financially Atmanirbhar’ economy that is shielded from all global events and continues to march ahead confidently for progress and development, Prime Minister, Narendra Modi, said on Monday.

    Speaking at the 90th-anniversary celebrations of the Reserve Bank of India (RBI), the PM said that the country’s economy has risen in the last few years from the inherited mess of 2014 when the BJP government took office and is now poised for take-off.

    “India is among the youngest nations in the world… Our policies have opened up new sectors in the economy like green energy, digital technology, Defence which is getting into the export mode, MSMEs, space and tourism industries.

    “The RBI must address the aspirations of the youth and develop ‘out-of-the-box’ policies for all these emerging sectors to help the youth,” urged the PM. (Also Read: SBI Customers Alert! Internet Banking, YONO To Be Unavailable At THESE Timings Today, 01 April)

    Pointing out that globally there is a challenge for nations to strike a balance between inflation control and growth, the PM called upon the RBI to study and develop a model for this, which can be a trendsetter for the world, especially the Global South, while ensuring that the Indian Rupee is accessible and acceptable world over.

    He said that in the next 10 years, India will strive to improve its financial independence, with the country’s economy getting impacted minimally by global developments “as we are already on the way to becoming a world growth engine.” (Also Read: RBI To Not Accept, Exchange Rs 2,000 Notes Today, 01 April 1 –Know Why)

    Present at the celebrations were Union Finance Minister, Nirmala Sitharaman, RBI Governor, Shaktikanta Das, and other dignitaries.

  • Sovereign Gold Bond 2016 Series II Maturing Today, March 28: Final Redemption Price And Other Key Details | Bullion News

    New Delhi: The Sovereign Gold Bond 2016 Series II, is due for redemption on 28 March 2024, as per Reserve Bank of India (RBI) circular.

    “In terms of GOI Notification F.No.4(19) – W&M/2014 dated March 04, 2016 (SGB 2016 Series II – Issue date March 29, 2016) on Sovereign Gold Bond Scheme, the Gold Bond shall be repayable on the expiration of eight years from the date of the issue of the Gold Bonds. Accordingly, the final redemption date of the above tranche shall be March 28, 2024 (March 29, 2024 being a holiday),” RBI had said in a release.

    The redemption price of SGB shall be based on the simple average of closing price of gold of 999 purity of the week (Monday-Friday), preceding the date of redemption, as published by the India Bullion and Jewellers Association Ltd (IBJA), said the RBI. 

    “Accordingly, the redemption price for the final redemption due on March 28, 2024 (March 29, 2024 being a holiday) shall be ₹6601/- (Rupees Six thousand Six hundred and One only) per unit of SGB based on the simple average of closing price of gold for the week March 18-22, 2024,” the central bank added.

    The first tranche of Sovereign Gold Bond (SGB), initiated in 2015 was available for redemption on on November 30, 2023.

    What is Sovereign Gold Bond Scheme?

    Sovereign Gold Bond Scheme are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

    How Is Sovereign Gold Bond Scheme being sold?

    The bonds will be sold through scheduled commercial banks (except Small Finance Banks and Payment Banks), Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

    Who can buy Sovereign Gold Bond Scheme?

    The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

  • RBI Imposes Rs 6 Lakh Penalty On The Mandi Cooperative Bank: Here’s Why | Companies News

    New Delhi: The Reserve Bank of India on Wednesday imposed a Rs 6 lakh fine on Himachal Pradesh’s The Mandi Cooperative Bank for breaching prudential inter-bank exposure limits in FY22.The Mandi-headquartered bank was found to be breaching certain limits, warranting the imposition of the monetary penalty, as per an official statement.

    The penalty is for non-compliance with provisions of RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’, and as per provisions of the Banking Regulation Act, 1949, the central bank said. (Also Read: Discounts On Apple iPhone 15, 14, 13 Available On Flipkart: Check Current Prices)

    The central bank also imposed a penalty of Rs 1 lakh on West Bengal’s The Howrah District Central Co-operative Bank for failing to undertake a periodic update of KYC (know your customer) of customer accounts, and failing to put in place a system of risk categorisation of accounts. (Also Read: WhatsApp Android To Introduce Feature For High-Quality Media Sharing)

    The RBI has also imposed a fine of Rs 75,000 on The Rajapalayam Co-operative Urban Bank, Rajapalayam, Tamil Nadu, for extending loans to relatives of directors, and sanctioning loans to nominal members in excess of the prescribed ceiling in FY22.

    It has also imposed a penalty of Rs 1 lakh on Mumbai’s Excellent Co-operative Bank for not transferring the eligible amount to the Depositor Education and Awareness Fund within the due date in FY23, as per an official statement.

    The Standard Urban Co-operative Bank in Maharashtra’s Aurangabad was levied a fine of Rs 50,000 for not transferring the eligible amount to the Depositor Education and Awareness Fund within the due date in FY23, a statement said.

  • Want To Invest In Eco-Friendly Schemes? Check Detailed Comparison Of SBI vs BoB Green Rupee Term Deposit | Personal Finance News

    New Delhi: There are many investment avenues in India. But, as the world turns its focus towards environmental sustainability, Indian banks are stepping up their efforts to support green initiatives. State Bank of India (SBI) and Bank of Baroda are among the key players in this movement.

    Both banking giants offer green fixed deposit (FD) facilities to their customers. Here we are decoding the comparison of the green FDs provided by these two prominent banks. (Also Read: Indian CEO Leaves High-Paying Microsoft Job to Pursue Passion for Farming)

    Continue reading to delve deep into the further details. (Also Read: NHAI Revised Banks & NBFC List To Issue FASTags: Check New Authorized Entities Here)

    What Is Green Deposits?

    Green deposits are interest-bearing deposits received by regulated entities, with the funds specifically earmarked for allocation towards green finance, as per the Reserve Bank of India’s notification.

    The circular is dated April 11, 2023. These deposits aim to channel funds towards environmentally sustainable projects.

    RBI Issued FAQs

    The RBI recently released a document addressing various inquiries investors may have regarding green deposits, providing clarity and guidance on the matter.

    Introduction Of SBI And BoB Green Term Deposits

    Bank of Baroda has rolled out the BOB Earth Green Term Deposit Scheme, allowing both existing and new customers to open green deposits at any Bank of Baroda branch across India.

    Meanwhile, the State Bank of India offers the SBI Green Rupee Term Deposit (SGRTD) through its branch network. Additionally, plans are underway to make SGRTD available through digital channels such as YONO and Internet Banking Services (INB).

    SBI vs BoB Green Rupee Term Deposit: Tenors

    SGRTD from SBI provides investors with flexibility, offering three distinct tenors: 1111 days, 1777 days, and 2222 days.

    On the other hand, the BOB Earth Green Term Deposit Scheme introduces innovative tenures including 1 year, 1.5 years, 1111 days, 1717 days, and 2201 days.

    SBI vs BoB Green Rupee Term Deposit: Interest Rates

    According to information available on the SBI website, SGRTD offers interest rates 10 basis points (bps) below the card rate for retail and bulk deposits, varying based on the respective tenor.

  • India's Retail Inflation Eases To 4-Month Low At 5.09% In February

    There was no relief as far as pulses are concerned as they turned costlier by 20.47 per cent, while the prices of cereals went up by 7.83 per cent.

  • Paytm Payments Bank Fined Rs 5.49 Crore For Money Laundering, Penalised By Finance Ministry

    The FIU issued its order imposing the penalty on February 15. 

  • RBI Imposes Penalties Amounting To Nearly Rs 3 Crore On SBI, Canara Bank, City Union Bank | Personal Finance News

    Mumbai: The Reserve Bank of India (RBI) on Monday said it has imposed penalties amounting to almost Rs 3 crore on State Bank of India, Canara Bank, and City Union Bank for violation of regulatory norms. In each case, the RBI said the penalties are based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with their customers.

    RBI imposes Rs 2 crore Penalty on SBI

    In a statement, the RBI said a penalty of Rs 2 crore has been imposed on the State Bank of India (SBI) for contravention of certain norms related to the Depositor Education Awareness Fund Scheme, 2014.

    “The Reserve Bank of India (RBI) has, by an order dated February 26, 2024, imposed a monetary penalty of ₹2.00 crore (Rupees Two Crore only) on State Bank of India (the bank) for contravention of provisions of sub-section (2) of Section 19 of the Banking Regulation Act, 1949 (the BR Act), and sub-section (2) of Section 26A of the BR Act read with the Depositor Education Awareness Fund Scheme, 2014. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 51 (1) of the BR Act,” RBI release said.

    RBI imposes Rs 66 lakh Penalty on City Union Bank Limited

    A penalty of Rs 66 lakh has been imposed on City Union Bank Limited for non-compliance with certain directions issued by the RBI on ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances — Divergence in NPA Accounts’ and Know Your Customer Directions..

    “The Reserve Bank of India (RBI) has, by an order dated February 08, 2024, imposed a monetary penalty of ₹66.00 lakh (Rupees Sixty-six lakh only) on City Union Bank Limited (the bank) for non-compliance with certain directions issued by RBI on ‘Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances – Divergence in NPA Accounts’ and ‘Reserve Bank of lndia (Know Your Customer (KYC)) Directions, 2016’. This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949,” RBI said in another release.

    RBI imposes Rs 32.30 lakh Penalty on Canara Bank

    The RBI has also levied a penalty of Rs 32.30 lakh on Canara Bank for non-compliance with certain directions.

    “The Reserve Bank of India (RBI) has, by an order dated February 06, 2024 imposed a monetary penalty of ₹32.30 lakh (Rupees Thirty two lakh thirty thousand only) on Canara Bank (the bank) for non-compliance with certain directions issued by RBI on ‘Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures’, ‘Resolution Framework 2.0 – Resolution of Covid-19 related stress of Micro, Small and Medium Enterprises (MSMEs)’ and ‘Resolution Framework – 2.0: Resolution of Covid-19 Related Stress of Individuals and Small Businesses’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47A(1)(c) read with sections 46(4)(i) and 51(1) of the Banking Regulation Act, 1949 and section 25(1)(iii) read with section 23(4) of the Credit Information Companies (Regulation) Act, 2005,” RBI release added.

    RBI imposes Rs 16 lakh Penalty on Ocean Capital Market Ltd

    A penalty of Rs 16 lakh has been imposed on Ocean Capital Market Ltd, Rourkela, Odisha, for non-compliance with certain provisions related to non-banking financial companies.