The Reserve Bank of India | Exclusive News

10Oct

By editor3No Comments

Feature, National News

RBI asks banks to use info from all relevant sources for risk assessment

Mumbai, October 10, 2024. The Reserve Bank of India on Thursday asked banks, NBFCs, and other entities regulated by it to use information obtained from all relevant internal and external sources for their risk assessment exercise. Reserve Bank's Regulated entities (REs) have to carry out ‘Money Laundering and Terrorist Financing Risk Assessment’ exercise periodically to identify, assess and take effective measures to mitigate their Money Laundering (ML), Terrorist Financing (TF) and Proliferation Financing (PF) risks for clients, countries or geographic areas, products, services, and transactions or delivery channels. In this regard, the central bank has issued 'The Internal Risk Assessment Guidance for Money Laundering/ Terrorist Financing’ for the REs, particularly for the deali...

RBI cancels licence of City Co-operative Bank

20Jun

By editor3No Comments

Feature, National News

RBI cancels licence of City Co-operative Bank

New Delhi, June 20,2024. The Reserve Bank of India (RBI) has cancelled the licence of The City Co-operative Bank Ltd, Mumbai as “the bank does not have adequate capital and earning prospects”. “Consequently, the bank ceases to carry on banking business, with effect from the close of business on June 19, 2024. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank,” the RBI said. The bank has failed to comply with the requirements of Sections of the Banking Regulation Act, 1949, the RBI said. “The continuance of the bank is prejudicial to the interests of its depositors. The bank with its present financial position would be unable to pay its present ...

RBI imposes monetary penalty on SBM Bank (India)

31May

By editor3No Comments

Feature, National News

RBI imposes monetary penalty on SBM Bank (India)

Mumbai, May 31, 2024. The Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 88.70 lakh on SBM Bank (India) for non-compliance with certain regulatory norms. In a statement, the central banks said the penalty has been imposed for non-compliance with licensing conditions imposed by the RBI, and specific directions to stop undertaking Liberalised Remittance Scheme (LRS) transactions with immediate effect. Two separate notices were issued 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/conditions.

RBI moves 1 lakh kg of gold from UK to its vaults in India

31May

By editor3No Comments

Business News, Feature, National News

RBI moves 1 lakh kg of gold from UK to its vaults in India

New Delhi, May 31, 2024. The Reserve Bank of India (RBI) has moved approximately 100 tonnes (1 lakh kilograms) of gold from the United Kingdom to its vaults in India, Business Today reported, quoting sources. This is the first time since 1991 that India has undertaken such a large-scale transfer of gold reserves. More than half of the RBI’s gold reserves are held overseas in secure custody with the Bank of England and the Bank of International Settlements, while approximately a third is stored domestically. It may be noted that the move is expected to help the RBI save on storage costs currently paid to the Bank of England. The central bank held 822.10 tonnes of gold as part of its foreign exchange reserves as of March 31, 2024, an increase from the 794.63 tonnes held at the...

RBI may transfer dividend of around Rs 1 lakh crore to government: Report

20May

By editor3No Comments

Feature, National News

RBI may transfer dividend of around Rs 1 lakh crore to government: Report

New Delhi, May 20, 2024. The Reserve Bank of India (RBI) is expected to transfer a substantial dividend, possibly around Rs 1 lakh crore, to the government, significantly higher than last year's payout, reported The Economic Times. Recently, the RBI announced a significant reduction in the government's borrowing through Treasury Bills, cutting the anticipated funds by Rs 60,000 crore. Additionally, the central bank is supporting an operation to allow the government to prematurely repay Rs 60,000 crore of earlier borrowings. These measures suggest an effort to utilise idle government funds, limited by election-related spending constraints, indicating an imminent improvement in the Centre's financial situation. The RBI is anticipated to declare the transfer of its surplus fund...

RBI updates guidance note for banks, NBFCs

1May

By editor3No Comments

Feature, National News

RBI updates guidance note for banks, NBFCs

Jaipur, May 01, 2024. The Reserve Bank of India has updated its “guidance note” on operational risk management for the financial sector, and also extended it to the non-banking financial companies (NBFCs), including housing finance companies. The 2005 ‘Guidance Note on Management of Operational Risk’ covered only commercial banks. The RBI said all regulated entities (REs) in India should implement a robust information and communication technology (ICT) risk management programme in alignment with their operational risk management framework. “REs should manage their dependencies on relationships, including those of, but not limited to, third parties (which include intragroup entities), for the delivery of critical operations,” the Reserve Bank said in its guidance note. All r...

RBI sets draft norms for web aggregators of loan products

29Apr

By editor3No Comments

Feature, National News

RBI sets draft norms for web aggregators of loan products

New Delhi, April 29, 2024. The Reserve Bank of India has proposed that banks and non-banking finance companies (NBFCs) should ensure that their loan service providers (LSPs) to provide a digital view of all the loan offers available to the borrower from all the willing lenders that the LSP has arrangements. The digital view, the RBI said, should include the name of the bank of the NBFC extending the loan, the amount and tenor of loan, the annual percentage rate and other key terms and conditions in a way that enables the borrower to make a fair comparison between various offers. The RBI set these terms in the draft guidelines for the regulatory framework for the aggregation of loan products by lending service providers (LSP) in order to enhance transparency and enable borrowers t...