Page 109 - Rbi

RBI imposes fines on 3 payment system operators including Visa Worldwide

The RBI has imposed penalties on payment system operators Visa Worldwide, Ola Financial Services and Manappuram Finance for deficiencies in regulatory compliance. A penalty of Rs 2.4 crore has been imposed on Visa Worldwide Pte Limited and Rs 41.5 lakh on Manappuram Finance Limited. A fine of Rs 87.55 lakh has been slapped on Ola Financial Services in two cases. The RBI said monetary penalty on Payment System Operators (PSOs) Manappuram Finance and Ola Financial Services has been imposed for non-compliance with certain provisions of Know Your Customer (KYC) directions. Compounding orders were also issued to two Ola Financial Services and Visa Worldwide for contravention of certain provisions. Giving details, the Reserve Bank of India said it was observed that Visa Worldwide Pte Limited had implemented a payment authentication solution without regulatory clearance from the central bank. Accordingly, notice was issued to it, advising it to show cause as to why a penalty should not

RBI issues prompt corrective action framework for urban cooperative banks

The RBI on Friday issued a prompt corrective action framework for urban cooperative banks with an aim to enabling supervisory intervention at an appropriate time. The provisions of the Prompt Corrective Action (PCA) Framework for Primary (Urban) Co-operative Banks (UCBs) will be effective from April 1, 2025. The objective of the PCA Framework is to enable supervisory intervention at an appropriate time and require the UCBs to initiate and implement remedial measures in a timely manner, to restore their financial health. The Reserve Bank had issued a Supervisory Action Framework (SAF) as an early intervention tool for bringing about desired improvements in weak UCBs and UCBs which are experiencing financial stress. The SAF was last revised in January 2020. "This PCA framework shall replace the SAF," the RBI said in a statement. The revised framework seeks to provide flexibility to design entity specific supervisory action plans based on the assessment of risks on a case-by-case ...

Digital payments increase 12.6% at March-end 2024, shows RBI data

Digital payments across the country registered a 12.6 per cent on-year rise as on March 31, 2024, according to RBI's index that measures the adoption of online transactions. RBI's Digital Payments Index (RBI-DPI) stood at 445.5 at the end of March 2024 compared to 418.77 in September 2023 and 395.57 in March 2023. "The RBI-DPI index has increased across all parameters driven by significant growth in payment performance and payment infrastructure across the country over the period, Reserve Bank of India (RBI) said in a statement on Friday. The central bank had announced the construction of a composite RBI-DPI in March 2018 as a base to capture the extent of digitisation of payments across the country. The index comprises five broad parameters that enable the measurement of the deepening and penetration of digital payments in the country over different periods. These parameters are Payment Enablers (weightage 25 per cent); Payment Infrastructure Demand-side factors (10 per cent); .

Govt to push forward IDBI Bank stake sale after RBI key clearance

The Reserve Bank of India has indicated completion of its fit and proper vetting of potential bidders of IDBI Bank, said Tuhin Kanta Pandey, the country's secretary responsible for the stake sale

RBI Recruitment alert 2024: Registration begins for 94 posts, check process

RBI started the registration process for Grade B officers' posts. The vacancy aims to fill 94 positions. Interested candidates can apply through the official website, i.e., rbi.org.in

Climate events influence actions of central banks, says RBI DG Rao

Rao said that such events can destroy assets funded by institutional finance, thereby harming the financial health of these institutions

India's financial system looks stronger than in the past: RBI dy guv Rao

Indian financial system looks stronger than in the past and the country's economy is an outlier even as strong headwinds globally, Reserve Bank of India Deputy Governor M Rajeshwar Rao said. Delivering the J P Morgan India Leadership Series Lecture here, the RBI official also highlighted that India has achieved the highest climate change performance index (CCPI) score among G20 members in 2024, which reflects the country's unwavering commitment to this cause. "This also shows that by aligning economic policies with climate action, we can spur green investments, enhance energy efficiency, and foster sustainable development across the sectors," he said in the lecture on 'Climate Change -- The Emerging Challenge'. Rao said the global financial system is facing strong headwinds from various quarters, including high levels of public debt, stretched asset valuations, economic and financial fragmentation, geopolitical tensions, and risks arising from increasing cyber threats. "Amidst thes

DLAI adds former RBI execs to advisory council, aims for SRO-FT recognition

An SRO is a non-governmental organisation that acts as a bridge between industry players and the regulator. It also sets standards for the conduct of entities operating in the country

RBI tightens domestic transfer rules: KYC must for walk- in money transfer

Remitting bank shall obtain and keep a record of the name and address of beneficiary, according to new norms

India likely to amend rules to check hot flows on bond index entry

Central bank has designated class of bonds that can have full foreign ownership, JPMorgan Chase & Co. has included securities from this set of bonds into its emerging markets index that India joined

RBI revamps regulatory framework for domestic money transfer services

The changes in the current framework have been made based on recent review of various services for payments transfer

India needs to monetise assets to support spending, says JPMorgan

The federal budget released Tuesday targeted a smaller fiscal deficit for this year on the back of a record dividend from the Reserve Bank of India

Budget: Aided by RBI surplus transfer, FM improves fiscal consolidation

It may still take years before S&P raises sovereign ratings

RBI dy guv flags risks in digital outsourcing for financial companies

'Inadequate management' of such relationships can expose regulated entities to reputational damage, says M Rajeshwar Rao

Reserve Bank of India approves KVS Manian as CEO of Federal Bank

Federal Bank had applied for the approval to the regulator on May 6, 2024

Cashfree Payments gets payment aggregator-cross border licence from RBI

The Bengaluru-based company is one of the first non-banks to receive the PA-CB licence, according to the RBI's website

Deposits remain preferred saving instrument but equity gains steam

Equity, investment funds share in total financial wealth up by over 50% between 2011-12 and 2022-23

Need unambiguous, clear focus on inflation: RBI Governor Shaktikanta Das

RBI Governor said that lag in deposit mobilisation compared to credit growth is a critical issue

Deposit growth trailing credit growth may cause liquidity issues: Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday warned banks of "structural liquidity issues", if deposit growth continues to trail credit growth. Das also flagged more issues on the unsecured credit front, pointing out that banks are having higher ceilings for such risky credit despite the portfolios being large enough, and asked them to be prudent and avoid exuberance. Urging banks to maintain a "reasonable balance" between credit and deposit growth, Das also mentioned that a good part of household savings that used to come into the banking system as deposits is now going into other instruments like mutual funds. "Credit growth should not run ahead of deposit growth by miles. More so when banks are required to maintain CRR, SLR, LCR," Das said during his address at a summit organised by Financial Express here. "Deposit mobilisation has been lagging credit growth for some time now. This may potentially expose the system to structural liquidity issues," he added. He

Foreign banks lead as largest investors in debt, says RBI report

It says their investments surpass net inflows into JP Morgan index-eligible bonds