Page 130 - Reserve Bank Of India

RBI updates KYC instructions on wire transfers for banks, institutions

The Reserve Bank on Thursday instructed banks and other financial institutions to ensure cross-border as well as domestic wire transfers contain complete information about the originator and beneficiary. The central bank has updated instructions in the Master Direction on Know Your Customer (KYC) related to wire transfers and also aligned the same with the relevant recommendation of the Financial Action Task Force (FATF). "All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary information...," as per the updated instructions in the Master Direction. Also, domestic wire transfers, where the originator is an account holder of the ordering regulated entity (RE), should be accompanied by originator and beneficiary information, as in the case of cross-border wire transfers. "Domestic wire transfers of Rs 50,000 and above, where the originator is not an account holder of the ordering RE, shall also be accompanied by originato

India's green financing requirement estimated at 2.5% of GDP: RBI Study

India's green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030, a Reserve Bank report said on Wednesday. The country aims to achieve net zero emissions target by 2070. The Reserve Bank of India's report on Currency and Finance (RCF) for the year 2022-23 covers four major dimensions of climate change to assess future challenges to sustainable high growth in India. The areas are the unprecedented scale and pace of climate change; its macroeconomic effects; implications for financial stability; and policy options to mitigate climate risks. The country's goal of achieving the net zero target by 2070 would require an accelerated reduction in the energy intensity of GDP by around 5 per cent annually and a significant improvement in its energy-mix in favour of renewables to around 80 per cent by 2070-71, it said. "India's green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030," the report said. According to

UCO Bank Q4 net profit rises 86% to Rs 581.24 cr, NPA down to 4.78%

The loan Book of UCO Bank also reached its highest-ever level of Rs 11.6 trillion against a loan book of Rs 12.9 trillion last year

State-run banks likely to launch special drive to recover written-off loans

The government has instructed public sector banks (PSBs) to focus on written-off loans, a senior official said

As risks loom, RBI asks banks not to increase exposure to unsecured loans

The RBI has instructed banks to limit their unsecured loan portfolios to the levels seen in FY23, a CEO of a private bank said

Looking closely at banks' business models: RBI governor Shaktikanta Das

Citing the recent bank failures in the US and in Europe, Das said risks for individual banks would crop up from their balance sheet, which might have been considered safer

Succession planning at pvt banks is a major issue: RBI on board governance

At a first-of-its kind open house with bank boards next month, Mint Road can be expected to do some plain speaking on long-festering issues of management and ethics

Reliance General to accept e-Rupee through Yes Bank for premium payments

Reliance General Insurance on Wednesday said it has become a forerunner general insurance company in the country to accept the Reserve Bank of India's (RBI) Central Bank Digital Currency e-Rupee for premium payments. The company has tied up with Yes Bank to facilitate the collection of premiums in the digital mode using the bank's eRupee platform, a statement said. Customers who have an active e-wallet with any bank can scan Reliance General Insurance's eRupee QR code to make immediate payment, it said. With this pioneering launch, the company is presenting its customers with an easy, safe, instant and green payment solution, and taking its promise of providing excellent customer experience to the next level. eRupee is a digital token that is equivalent to a banknote i.e. legal tender, and is a sovereign currency backed by the RBI, it noted. Being digital, eRupee removes all the issues of handling physical cash and offers the same anonymity as a banknote, it said. Moreover, it sa

RBI approves reappointment of N Kamakodi as City Union Bank MD and CEO

The Reserve Bank of India has given its consent for the re-appointment of N Kamakodi as Managing Director and CEO of private sector bank City Union Bank, the Tamil-Nadu-based lender said on Wednesday. The tenure of his re-appointment would be for a period of three years with effect from May 1, 2023. "We hereby inform that based on the recommendation of the Board of Directors of the Bank, the Reserve Bank of India...has given its approval for the re-appointment of Dr N Kamakodi as the Managing Director and CEO of the bank for a further period of three years with effect from May 1, 2023," the bank said in a BSE filing on Wednesday. Early this month, the bank launched a facility for its customers to use Voice Biometric authentication for logging into its mobile banking application.

AU Small Finance tumbles 5% in 4 sessions; what should investors do?

Last week, reports claimed that the Reserve Bank of India has raised concerns about the rapid rise in advances at AU Small Finance Bank

RBI imposes Rs 44 lakh penalty on 4 co-operative banks for violation

The Reserve Bank has imposed penalties totalling Rs 44 lakh on four cooperative banks, including a Rs 16 lakh penalty on Chennai-based The Tamil Nadu State Apex Co-operative Bank, for contravention of various norms. A penalty of Rs 13 lakh has been imposed on Bombay Mercantile Co-operative Bank as it failed to transfer eligible amount to Depositor Education and Awareness Fund (DEAF) within the prescribed period and transferred the same with delay, RBI said in a release on Monday. In a separate release, the central bank said a penalty of Rs 13 lakh has been imposed on Janata Sahakari Bank, Pune for non-compliance with directions on 'Interest Rate on Deposits'. Penalty has been imposed on The Tamil Nadu State Apex Co-operative Bank as it failed to transfer eligible amounts to the Depositor Education and Awareness Fund within the prescribed period. It also failed to report a fraud to NABARD within the prescribed timeline and reported the same with delay. A monetary penalty of Rs 2 lak

RBI harmonises provisioning norms for UBCs irrespective of their tier

The Reserve Bank on Monday harmonised the provisioning norms for standard assets applicable to all categories of urban cooperative banks (UCBs). In December last year, the RBI had categorised UCBs into four tiers -- tier 1, 2, 3 and 4 -- for regulatory purposes. Prior to that, such banks fell only in tier 1 and tier 2 categories. "On a review, it has been decided to harmonise the provisioning norms for standard assets applicable to all categories of UCBs, irrespective of their tier in the revised framework," the central bank said in a circular. Direct advances to agriculture and SME sectors which are standard, would attract a uniform provisioning requirement of 0.25 per cent of the funded outstanding on a portfolio basis to all categories of UCBs under the revised framework. Advances to commercial real estate (CRE) sector which are standard shall attract a uniform provisioning requirement of 1 per cent of the funded outstanding on a portfolio basis. In case of Commercial Real ...

No need to activate countercyclical capital buffer for banking system: RBI

Credit to GDP gap is the difference between credit-to-GDP ratio and the long term trend value of credit-to-GDP ratio at any point in time, according to RBI

RBI to meet board members of PSU banks to address ethics issues on May 22

Reserve Bank Governor Shaktikanta Das is scheduled to meet the board of directors of all public sector banks next month to discuss issues related to governance and ethics. The one-day meeting organised by the Department of Supervision of the Reserve Bank of India is to be held on May 22 in Delhi, sources said. Das will address the directors -- both whole time and independent -- on issues related to governance, ethics, and the role of the boards in assurance functionalities of the banks, besides highlighting the supervisory expectations, sources said. Besides the governor, the RBI communication sent to all public sector banks said, deputy governors, executive directors from its Department of Regulation as well as Supervision will be attending the meeting. The one-day event is designed to be an interactive one where directors, including the bank chairman, and nominee directors both from the central bank and the government, will be invited to interact with the entire RBI top brass. T

Cumulative impact of monetary policy actions still unfolding: RBI guv Das

RBI Governor Shaktikanta Das, in the rate-setting panel meeting earlier this month, opined that the cumulative impact of the monetary policy actions over the last one year is still unfolding and needs to be monitored closely, as per the MPC minutes released on Thursday. Das, along with the five other members of the Monetary Policy Committee, voted for a pause in rate hike earlier this month. The central bank, which effected six back-to-back hikes in the key short-term lending rate (repo) since May 2022 to check high inflation, decided to take a pause early this month. The cumulative rate hike since May 2022 is 250 basis points. "The cumulative impact of our monetary policy actions over the last one year is still unfolding and needs to be monitored closely," Das said during the last Monetary Policy Committee (MPC) meeting held during April 3-6. Inflation for 2023-24 is projected to soften, but the disinflation towards the target is likely to be slow and protracted. The projected ...

RBI to come up with new rules on classification of accounts as fraudulent

The new rules will reportedly give the borrower a personal hearing before they are declared a wilful defaulter

RBI calls meeting of all bank boards to discuss governance, supervisory

Ethics, supervisory expectations may also figure in May 29 meeting

Bumpy ride ahead for green deposits with questions raised about workability

The RBI's framework for green deposits is well meant but raises many questions on its workability

RBI's norms on outsourcing IT services will improve corporate governance

Reserve Bank's regulation on outsourcing of IT services by banking sector entities is aimed at improving corporate governance and will protect the interest of consumers, say industry experts. The Reserve Bank of India (RBI) has recently come out with detailed norms for the outsourcing of IT services by banks, NBFCs and other regulated financial sector entities to ensure that such arrangements do not undermine their responsibilities and obligations to customers. These norms came in the backdrop of the current practice of regulated entities (REs) of extensively leveraging IT and IT-enabled services (ITeS) to support their business models and also the products and services being offered to customers. Commenting on the Master Direction issued by the RBI on 'Outsourcing of Information Technology Services', Monish G Chatrath, Managing Partner, MGC Global Risk Advisory LLP, said, "Strong corporate governance practices and comprehensive risk management frameworks are aspects that are ...

When the randomness of monetary policy reminds one of a game of Ludo

The real issue may be that the RBI does not really subscribe to the mandate it has been given, and the govt, in a pre-election year, quietly supports such agnosticism, writes T N Ninan