The penalty on Rajkot Nagarik Sahakari Bank was imposed for granting loans to companies in which the bank’s directors held interests.
Tag: Reserve Bank of India
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RBI Tells Banks To Inform Borrowers Regarding Key Facts Statement Of Loan From October 1: Check 8 Key Points | Personal Finance News
New Delhi: Reserve Bank on Monday issued a circular telling banks and lenders that they will have to provide key facts statement (KFS) about the loan agreement terms, including all-inclusive interest cost to borrowers for retail and MSME loans, from October 1.
“This is being done in order to enhance transparency and reduce information asymmetry on financial products being offered by different regulated entities, thereby empowering borrowers to make an informed financial decision,” the RBI said.
For the purpose of this circular, following terms have been defined by the RBI:
(a) Key Facts of a loan agreement between an RE/a group of REs and a borrower are legally significant and deterministic facts that satisfy basic information required to assist the borrower in taking an informed financial decision.
(b) Key Facts Statement (KFS) is a statement of key facts of a loan agreement, in simple and easier to understand language, provided to the borrower in a standardised format.
(c) Annual Percentage Rate (APR) is the annual cost of credit to the borrower which includes interest rate and all other charges associated with the credit facility.
(d) Equated Periodic Instalment (EPI) is an equated or fixed amount of repayments, consisting of both the principal and interest components, to be paid by a borrower towards repayment of a loan at periodic intervals for a fixed number of such intervals; and which result in complete amortisation of the loan. EPIs at monthly intervals are called EMIs.
1. RBI said REs shall provide a KFS to all prospective borrowers to help them take an informed view before executing the loan contract, as per the standardised format given in the Annex A. The KFS shall be written in a language understood by such borrowers. Contents of KFS shall be explained to the borrower and an acknowledgement shall be obtained that he/she has understood the same.
2. Further, the KFS shall be provided with a unique proposal number and shall have a validity period of at least three working days for loans having tenor of seven days or more, and a validity period of one working day for loans having tenor of less than seven days.
3. The KFS shall also include a computation sheet of annual percentage rate (APR), and the amortisation schedule of the loan over the loan tenor. APR will include all charges which are levied by the RE. Illustrative examples of calculation of APR and disclosure of repayment schedule for a hypothetical loan are given in Annex B and C respectively.
4. Charges recovered from the borrowers by the REs on behalf of third-party service providers on actual basis, such as insurance charges, legal charges etc., shall also form part of the APR and shall be disclosed separately. In all cases wherever the RE is involved in recovering such charges, the receipts and related documents shall be provided to the borrower for each payment, within a reasonable time.
5. Any fees, charges, etc. which are not mentioned in the KFS, cannot be charged by the REs to the borrower at any stage during the term of the loan, without explicit consent of the borrower.
6. The KFS shall also be included as a summary box to be exhibited as part of the loan agreement.
7. Credit card receivables are exempted from the provisions contained under this circular.
8. REs shall put in place the necessary systems and processes to implement the above guidelines at the earliest. In any case, all new retail and MSME term loans sanctioned on or after October 1, 2024, including fresh loans to existing customers, shall comply with the above guidelines in letter and spirit without any exception.
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Banks Must Provide Simple Key Facts Statement To Borrowers On Terms Of Loans: RBI
The RBI has decided to harmonise all instructions on KFS and disclosure of the Annual Percentage Rate (APR).
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Bank Holiday On Eid-Ul-Fitr 2024: Financial Institutions Open Tomorrow? Check Here | Personal Finance News
New Delhi: According to the Reserve Bank of India (RBI) holiday list, banks in certain states will remain closed on Thursday in observance of Ramzan-Id (Eid-Ul-Fitr). This follows a series of consecutive holidays from April 9 to April 14 for various festivals including Gudi Padwa, Ugadi, Telugu New Year, Bohag Bihu, and Eid.
Holiday Schedule
April 13, falling on the second Saturday of the month, typically sees banks closed, and April 14 is a Sunday. In some states, April 15th is a bank holiday for Bohag Bihu, and April 16th is a bank holiday for Ram Navami. (Also Read: Stock Market Holiday On Eid-Ul-Fitr 2024: Check Whether NSE, BSE, Open Or Not)
Customers are advised to verify holiday schedules with their nearby bank branches to avoid any confusion or inconvenience. (Also Read: ‘This Salary Equal To IT Companies’: Users On Viral Job Posting At Momo Shop)
Eid Al-Fitr
Eid al-Fitr begins when the crescent moon is seen, starting the month of Shawwal in the Islamic calendar. Since lunar months are usually 29 to 30 days long, Muslims wait until the evening before Eid to confirm its date.
Celebrations Across States
While Eid celebrations are scheduled for April 11 in Delhi, Hyderabad, and Lucknow, in Kerala, Ladakh, and Jammu and Kashmir, Eid was celebrated on April 10 as the crescent was sighted a day earlier in these states.
Bank Holidays In States
On April 11, banks are closed in most states except Chandigarh, Sikkim, Kerala, and Himachal Pradesh. Further closures are scheduled on April 13 for Bohag Bihu, Cheiraoba, Baisakhi, and Biju Festival in Tripura, Assam, Manipur, Jammu, and Srinagar.
On April 15, banks in Assam and Himachal Pradesh will remain closed for Bohag Bihu and Himachal Day, respectively. Additionally, on April 16, banks in multiple states will observe closure for Shree Ram Navami.
RBI’s Classification Of Bank Holidays
The RBI has sorted bank holidays into three types: Negotiable Instruments Act Holidays, Real-Time Gross Settlement (RTGS) Holidays, and Bank Account Closing Holidays.
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Govt Bonds Worth Rs 30,000 Crore To Come Up For Auction On April 12
The government will have the option to retain additional subscriptions up to Rs 2,000 crore against each of these securities.
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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.
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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.
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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.
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Paytm Partners With Axis Bank For Merchant Payments Settlement; Read Details | Companies News
New Delhi: One97 Communications (OCL), the parent company of Paytm, has announced a strategic move to shift its nodal account to Axis Bank from Paytm Payments Bank. This decision comes in response to the Reserve Bank of India’s (RBI) directive to terminate its nodal account with Paytm Payments Bank by February 29, citing persistent non-compliance and supervisory concerns.
What OCL Revealed In Exchange Filing?
In an exchange filing, OCL revealed that the transition to Axis Bank aims to ensure continuity and seamless settlements for merchants. (Also Read: RBI Gives 15-Day Relaxation To Paytm: Check What You Can Do And What Can’t)
A nodal account plays a crucial role for intermediaries like Paytm, as it holds funds on behalf of customers and vendors. With this shift, OCL aims to maintain smooth operations and enhance balance flow. (Also Read: Techie, With Rs 43 Lakh Salary, Seeking Job Where He Can Get High-Protein Food; Viral Story Amazes Netizens)
Axis Bank Partnership
Paytm Payment Services Ltd (PPSL), a wholly-owned subsidiary of OCL, has been utilizing Axis Bank’s services since its inception. This pre-existing partnership adds to the confidence in the transition process.
An official from Axis Bank emphasized that the new arrangement will facilitate the flow of money through the nodal account, reinforcing the commitment to efficient financial transactions.
RBI’s Directive And Deadline Extension
The RBI had initially ordered the termination of OCL and PPSL’s nodal accounts maintained by Paytm Payments Bank by February 29, due to compliance issues and supervisory concerns. However, the central bank extended the deadline till March 15 for the payments bank to halt new deposits or credit transactions.
Impact On Merchants
In its FAQ, the RBI clarified that merchants using Paytm’s services can continue accepting payments through QR codes, soundboxes, or point-of-sale terminals even after March 15, provided their accounts are linked to banks other than Paytm Payments Bank.
However, merchants linked to Paytm Payments Bank will only be able to receive refunds or cashback, with no other credit transactions allowed.
According to Paytm’s earnings presentation for the third quarter of the financial year 2024, the company has over 10.6 million soundboxes and point-of-sale devices deployed in the market, underlining its significant presence in the payment solutions sector.