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Mumbai, Jun 17 () The Reserve Bank on Wednesday proposed to double the minimum net owned fund (NOF) requirement for housing finance companies to Rs 20 crore and classification of such firms under its draft framework for these companies. The step is aimed at strengthening the capital base mainly of small housing finance companies (HFC), the RBI said while releasing the proposed changes in the regulatory framework for HFCs. A new category of systematically important HFCs based on financial parameters and restrict lending by HFCs either to a construction company or flat buyers of that company have also been proposed in the draft framework. The RBI said that existing HFCs would be provided with a glide path to achieve minimum Net Owned Fund (NOF) of Rs 20 crore. They will be required to reach Rs 15 crore within one year and Rs 20 crore within two years. "This step is aimed at strengthening the capital base, especially of smaller HFCs and companies proposing to seek registration under NHB Act," the RBI said while inviting comments from stakeholders by July 15. Regarding the classification of HFCs, the RBI draft said that they would be split into systemically important and non-systemically important companies on the lines of NBFCs. At present, HFC regulations are common for all HFCs irrespective of their asset size and ownership, the draft said adding, "non-deposit taking HFCs (HFC-ND) with asset size of Rs 500 crore and above; and all deposit-taking HFCs (HFCD), irrespective of asset size, will be treated as systemically important HFCs." On the other hand, HFCs with asset size below Rs 500 crore will be treated as non-systemically important HFCs (HFC-non-SI), the draft said. "While the regulations for HFC-NDSI and HFC-Ds will be as existing under NHB regulations or harmonised with NBFC regulations, the regulations for HFC-non-SI will be brought on par with relevant regulations for NBFC-ND-non-SI." Among other things, the draft regulations propose to restrict lending by the HFCs to either the construction company or individuals purchasing flats from the company. "...the HFC can either undertake an exposure on the group company in real estate business or lend to retail individual homebuyers in the projects of group entities, but not do both," the draft said. The HFC's exposure in its group entities (lending and investment) directly or indirectly cannot be more than 15 per cent of owned fund for a single entity in the group and 25 per cent of owned fund for all such group entities. The draft also proposes that foreclosure charges as a measure of customer protection and also in order to bring in uniformity, no foreclosure charges/pre-payment penalties shall be levied on any floating rate term loan sanctioned for purposes other than business to individual borrowers with or without co-obligants. Since similar regulations are currently not prescribed for HFCs, it is proposed to extend these instructions to HFCs. Post transfer of regulation of HFCs from National Housing Bank (NHB) to RBI in August 2019, the central bank had said it will carry out a review of the extant regulatory framework applicable to HFCs. NKD CS MR MR

RBI proposes changes in regulations for HFCs

The <keyword id="20018890" type="General" weightage="20" keywordseo="digital-infrastructure" source="keywords">digital infrastructure</keyword> has made the <keyword id="20572901" type="General" weightage="20" keywordseo="loan-sanctioning" source="keywords">loan sanctioning</keyword> system adopt an online mode, but the <keyword id="21614839" type="General" weightage="20" keywordseo="loan-recovery" source="keywords">loan recovery</keyword> still requires a 'feet on the street' approach, says <keyword id="20506781" type="General" weightage="20" keywordseo="swaminathan-j" source="keywords">Swaminathan J</keyword>, Deputy Governor of Reserve Bank of India (RBI). Speaking at a media event in Mumbai, the deputy Governor of RBI noted that with the digital infrastructure at place, many <keyword id="22721545" type="General" weightage="20" keywordseo="fintech-players" source="keywords">fintech players</keyword> are giving loans to customers with poor credit profiles, and up on default, use aggressive recovery tactics. "While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending <keyword id="22791879" type="General" weightage="20" keywordseo="small-value-loans" source="keywords">small-value loans</keyword> to customers who often have a poor credit profiles" said the deputy governor. He emphasized that the business model of many fintech platforms involves offering small-value loans to customers who often have poor credit profiles. This has led to the adoption of aggressive recovery strategies, which on many occasions also crosses ethical boundaries. He also highlighted one particularly concerning practice that involves the invasion of customers' privacy, where recovery agents access the personal data and contacts of borrowers and use that as a threat practice. Swaminathan cautioned that such tactics not only infringe on individuals right to privacy, but also risk damaging the reputation of regulated lenders associated with these fintech platforms. He also highlighted RBI's regulations on outsourcing, that even though regulated financial entities delegate certain activities to third parties, they remain ultimately accountable for the actions of their outsourced agents. The deputy governor also noted that the digitisation allows banks and NBFCs to leverage data for greater insights into their customers' requirements and behaviour, which can be used for developing bespoke products apart from facilitating better risk management and compliance. He stated that the role of RBI as a regulator is to establish guardrails or a balanced framework that encourages innovation while ensuring that risks are managed prudently. The deputy governor also indicated the primary goal of RBI is to ensure the stability and integrity of the financial system and not to hinder business operations.

Loan sanctioning has gone digital, but recovery still needs a 'feet on the street' approach, says RBI Deputy Governor

Mumbai, Apr 30 () Amid uncertainty over the lockdown period, the Reserve Bank on Thursday extended the truncated trading hours of debt as well as currency markets till further notice.In order to minimise risks arising due to the unprecedented situation created by COVID-19 outbreak, the trading hours for various RBI regulated markets were earlier amended as 10.00 am to 2.00 pm, effective from April 7 till the close of business hours on April 30, 2020.In a statement, the Reserve Bank of India said there is a likelihood of extension of lockdown in major cities like Mumbai or easing of the restrictions in a limited manner."In view of persisting operational dislocations and elevated levels of health risks warranting continuing restrictions on movement, work from home arrangements and business continuity plans, it has been decided that the amended trading hours i e, from 10.00 am to 2.00 pm for RBI-regulated markets...shall be extended till further notice," it said.Market trading timings will be reviewed on issuance of directions pertaining to the lockdown from the government, the central bank added.As per the revised timings, the RBI regulated market opens at 10 am instead of 9 am earlier. The closing timings too have been revised to 2 pm for all segment.While revising the timings earlier this month, the RBI had said the lockdown has adversely impacted the functioning of financial markets.The central bank had amended the market timings in order to minimise risks and to ensure that market participants maintain adequate checks and supervisory controls while optimising thin resources and ensuring safety of personnel.The RBI regulated markets include, 'call/notice/term money', 'market repo in government securities', 'commercial paper and certificates of deposit', 'repo in corporate bonds', 'government securities', 'foreign currency (FCY)/Indian Rupee (INR) trades' and 'Rupee Interest Rate Derivatives'.The government has imposed a countrywide lockdown till May 3 with an aim to fight coronavirus pandemic. NKD CS BAL

Truncated trading hours for debt, currency markets extended till further notice: RBI

<ul><li>The Reserve Bank of India went public on 19 October with its disagreement regarding a proposal from the central government to establish an independent regulator to oversee all <keyword id="6359540" type="PERSON" weightage="20" keywordseo="payments">payments</keyword> systems. </li><li>The proposal was put forth last month by an inter-ministerial committee as an amendment to the the Payment &amp; Settlement Systems Act of 2007. </li><li>The <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> explained that since payments systems come under the umbrella of currency, it made sense for them to be overseen by the central bank since it was a currency regulator and monetary authority. </li></ul> In a rare move, the Reserve Bank of India went public on 19 October about its disagreement with a proposal from the central government to establish an independent regulator to oversee all payments systems in the country. The move comes a few days after the central bank’s 15 October deadline for payment companies to demonstrate their compliance with local data storage norms expired. The <a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=45287">“dissent note”</a>, as it was termed by the central bank, comprised a list of reasons why it was against the government’s decision to take the regulation of payments outside its current scope of responsibilities. The proposal was put forth last month by an inter-ministerial committee as an amendment to the the Payment &amp; Settlement Systems Act of 2007. The RBI explained that since payments systems came under the umbrella of currency and all issues related to currency, it made sense for their regulation to be overseen by the central bank since it was a currency regulator and monetary authority. Furthermore, as the settlement of payment transactions involves entries in the books of banking entities, it negates the need for dual regulators. Payments systems are currently dominated by banks. The RBI has moved to make it easier for non-banking financial institutions and mobile wallet instruments from participating in the payments industry. Infact, last week it released <a href="https://www.businessinsider.in/the-rbis-new-guidelines-will-allow-you-to-transfer-funds-between-different-mobile-wallets/articleshow/66256349.cms">guidelines </a>for the transfer of funds between different “pre-paid instruments”. The central bank emphasised that since the banking system and payment system are two sides of the same coin it will be easier for the same regulator to oversee both, instead of creating another body - which would lead to greater costs and a potential overlap of responsibilities between different regulators. The RBI has regulated payments for several years. After drawing attention to the international model under which most central banks are payments regulators, the RBI concluded by saying that the current system was “well-functioning” and there wasn’t any need to change it at the moment. As a compromise, the RBI said that an payments regulator committee should be established which should be headed by the governor of the central bank and made up of three nominees each put forth by the RBI and central government.

The RBI is butting heads with the central government over a proposal to establish an independent payments regulator

The <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) has approved <keyword id="19895995" type="General" weightage="20" keywordseo="hdfc-bank" source="keywords">HDFC Bank</keyword>'s proposal to acquire an up to 9.5% stake in <keyword id="19901053" type="General" weightage="100" keywordseo="indusind-bank" source="keywords">IndusInd Bank</keyword>. "Pursuant to Regulation 30 of the <keyword id="35210" type="General" weightage="20" keywordseo="SEBI" source="Orion">SEBI</keyword> Listing Regulations, we would like to inform you that the Reserve Bank of India vide its letter dated February 5, 2024 has accorded its approval to HDFC Bank Limited ("applicant") for acquiring "aggregate holding" of up to 9.50% of the paid-up share capital or voting rights in IndusInd Bank Limited. The aforesaid RBI approval has been granted with reference to the application made by the applicant to the RBI," IndusInd Bank said in a stock exchange filing. The approval also stipulates that if the "aggregate holding" of HDFC Bank falls below 5%, prior approval of the RBI will be required to increase it to 5% or more of the paid-up share capital or voting rights. The RBI approval is subject to compliance with the <keyword id="19976511" type="General" weightage="20" keywordseo="banking-regulation-act" source="keywords">Banking Regulation Act</keyword>, 1949, RBI's Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies dated January 16, 2023 (as amended), provisions of the Foreign Exchange Management Act, 1999, regulations by the Securities and Exchange Board of India (SEBI), and other applicable statutes, regulations, and guidelines, the filing noted. --IANS sps/dpb

HDFC gets RBI nod to acquire 9.5% stake in IndusInd Bank

The <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> Friday said it would hear on November 23 the plea filed by Rajya Sabha MP Binoy Viswam seeking direction to the RBI for framing regulation to ensure that data collected on UPI platforms is not "exploited" or used in any manner other than for processing payments. The matter came up for hearing before a bench comprising Chief Justice S A Bobde and Justices A S Bopanna and V Ramasubramanian which listed it for hearing next week. On October 15, the apex court had sought responses from the Centre, Reserve Bank of India (RBI), National Payments Corporation of India (NPCI) and others including Google Inc, Facebook Inc, WhatsApp and Amazon Inc on the plea. Viswam, the Communist Party of India (CPI) leader, has sought a direction to the RBI and the NPCI to ensure that data collected on Unified Payments Interface (UPI) platforms is not shared with their parent company or any other third party under any circumstances. "In India, the UPI payments system is being regulated and supervised by Respondent no. 1 (RBI) and Respondent no. 2 (NPCI), however the RBI and the NPCI instead of fulfilling their statutory obligations and protecting and securing the sensitive data of users are compromising the interest of the Indian users by allowing the non-compliant foreign entities to operate its payment services in India," the plea has alleged. "The RBI and NPCI have permitted the three members of 'Big Four Tech Giants' i.e. Amazon, Google and Facebook/WhatsApp (Beta phase) to participate in the UPI ecosystem without much scrutiny and in spite of blatant violations of UPI guidelines and RBI regulations," it claimed. The plea has alleged that this conduct of RBI and NPCI put the sensitive financial data of Indian users at huge risks, especially when these entities have been "continuously accused of abusing dominance and compromising data", among other things. It said these allegations have become particularly worrisome at a time when India has banned host of Chinese applications on the ground that those applications were or could be used for data theft and could lead to security breaches. It has further sought a direction that RBI and NPCI should ensure that WhatsApp is not permitted to launch full scale operations of 'WhatsApp Pay' in India without fulfilling all legal compliances to the satisfaction of the court regarding requisite regulatory compliances. It said that in April 2018, the RBI, with a view to secure the data of Indian users, had issued a circular directing all system providers to ensure that entire data relating to payment systems operated by them are stored in systems only in India and they were asked to ensure compliance by October 15, 2018. The plea claimed that later, the RBI toned down the April 2018 circular by issuing Frequently Asked Questions (FAQs) and permitted processing of all payment transaction abroad, including domestic transactions. In the said FAQ it was clarified that in cases of data processing done abroad, the data should be deleted from the systems abroad and brought back to India within 24 hours, the plea said. It has sought the apex court's direction to declare the FAQ dated June 26, 2019 issued by the RBI as ultra vires to the circular dated April 6, 2018. The plea referred to another pending petition in the apex court and said that in that matter, the counsel appearing for WhatsApp had undertook that his client would not go ahead with payment services without complying with all the regulation in force. It alleged that Google and Facebook already have access to "immense personal data of millions of Indian users" and if they are permitted to collect "unrestricted financial data" of Indian users while operating at the UPI platform, the same would give them "draconian control" over sensitive Indian data. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/mumbais-massive-power-cut-last-month-may-have-been-the-work-of-hackers/articleshow/79318282.cms">Mumbai’s massive power cut last month may have been the work of hackers</a> <a href="https://www.businessinsider.in/stock-market/news/vodafone-idea-shares-jump-after-selling-stake-in-indus-towers-for-3760-crore/articleshow/79316662.cms">Vodafone Idea soars nearly 5% on fund infusion from Indus Towers stake sale</a> <a href="https://www.businessinsider.in/tech/apps/news/pubg-mobile-india-was-supposed-to-launch-today/articleshow/79315462.cms">PUBG Mobile India was rumoured to launch today — but there is no official update from the company</a>

Plea for regulation to ensure UPI data is not 'exploited' to be heard by the Supreme Court on November 23

<ul><li>The government is considering the Reserve Bank of India for regulatory job for <keyword id="1187157" type="PERSON" weightage="20" keywordseo="non-banking-financial-institutions">Non-banking financial institutions</keyword>, amid rising crisis. </li><li>Presently, the National Housing Board (NHB) regulates the non-housing financial institutions with an RBI executive director as a board member. </li></ul> The Finance Minister empowered the RBI to regulate <keyword id="100080" type="DOMAIN" weightage="20" keywordseo="housing-finance">housing finance</keyword> companies, in her Budget speech today. "The National Housing Bank (NHB), besides being the refinancer and lender, is also regulator of the housing finance sector. This gives a somewhat conflicting and difficult mandate to NHB. I am proposing to return the regulation authority over the housing finance sector from NHB to RBI. Necessary proposals have been placed in the Finance Bill," she said. In addition, Sitharaman also gave more teeth to the RBI to regulate non-banking finance companies (NBFCs). And, these measures will be taken up in the Finance Bill. "Further, RBI is the regulator for NBFCs. However, RBI has limited regulatory authority over them. Appropriate proposals for strengthening the regulatory authority of RBI over NBFCs are being placed in the Finance Bill," said the FM. This move comes after <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword>, the Governor of the Reserve Bank of India, in a press meeting last month <a href="https://www.businessinsider.in/dhfl-crisis-rbi-governor-shaktikanta-das-on-high-alert/articleshow/69674581.cms">said</a> that the central bank could step in to address the ongoing crisis in the non-banking financial institutions. “We will not hesitate to take steps to ensure the financial stability is not adversely affected,” the governor said, adding that if some action is required, it will be taken. Das has then said that while housing finance companies do come under RBI’s purview, they are concerned as they have been affecting the financial health of banks, which they regulate. Last month, one of country’s largest housing finance companies <keyword id="6423706" type="DOMAIN" weightage="20" keywordseo="dewan-housing-finance">Dewan Housing Finance</keyword> Limited (DHFL) entered the red zone as it is as <keyword id="6354972" type="DOMAIN" weightage="20" keywordseo="icra">ICRA</keyword> downgraded its debt further to the default zone. It has piled up as much as ₹ 380 billion in debt, and its lenders are considering <a href="https://www.livemint.com/companies/news/lenders-to-sign-inter-creditor-agreement-by-5-july-to-resolve-stress-in-dhfl-1561998176253.html">re-casting the loan</a>. The housing finance sector is under stress as very few of them are disbursing loans, and many face their own financial problems. There are 82 HFCs in India, but more than 90 per cent of the housing finance market is controlled by top five companies. SEE ALSO: <a href="https://www.businessinsider.in/dhfl-crisis-rbi-governor-shaktikanta-das-on-high-alert/articleshow/69674581.cms">India’s central bank is on high alert amid fears of a ₹8.5 billion default by housing finance major</a>

Budget 2019: RBI will regulate housing finance companies, tighten hold on NBFCs

The <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> on Tuesday proposed rationalising <keyword id="19909672" type="General" weightage="20" keywordseo="regulations" source="keywords">regulations</keyword> that cover <keyword id="19986776" type="General" weightage="100" keywordseo="export" source="keywords">export</keyword> and <keyword id="20040382" type="General" weightage="20" keywordseo="import" source="keywords">import</keyword> <keyword id="19971375" type="General" weightage="20" keywordseo="transactions" source="keywords">transactions</keyword> with an aim to promote ease of doing <keyword id="19933715" type="General" weightage="20" keywordseo="business" source="keywords">business</keyword> and empower banks to provide more efficient service to their <keyword id="19986712" type="General" weightage="20" keywordseo="foreign-exchange" source="keywords">foreign exchange</keyword> customers. The central bank has issued 'Regulation of Foreign Trade under Foreign Exchange Management Act (<keyword id="19940710" type="General" weightage="20" keywordseo="fema" source="keywords">FEMA</keyword>), 1999 - <keyword id="20399690" type="General" weightage="20" keywordseo="draft" source="keywords">Draft</keyword> Regulations and Directions' in this regard. As per the draft, every exporter should furnish to the specified authority a declaration specifying the amount representing the full export value of the goods or services. "The amount representing the full export value of goods and services shall be realised and repatriated to India within nine months from the date of shipment for goods and date of invoice for services," it said. The draft also proposes that an exporter who has not realised the full value of export within the time specified may be caution listed by the authorised dealer. An exporter who has been caution listed can undertake export only against receipt of advance payment in full or against an irrecoverable letter of credit, to the satisfaction of the authorised dealer. According to the draft, no advance remittance for the import of gold and silver should be permitted unless specifically approved by the <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="153" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>. The RBI said the proposed regulations are intended to promote ease of doing business, especially for small exporters and importers. They are also intended to empower Authorised Dealer banks to provide quicker and more efficient service to their foreign exchange customers, the central bank said. The RBI has sought comments on the draft regulations under FEMA and directions to authorised dealer banks by September 1.

RBI proposes rationalising regulations on export, import transactions

Mumbai, Apr 20 () The RBI on Monday asked banks and NBFCs to carry out money laundering (ML) and terrorist financing (TF) risk assessment exercise periodically.The Reserve Bank said it has added a new section in the Master Directions on KYC.This requires its regulated entities (REs) to carry out ML and TF risk assessment exercise periodically to identify, assess and take effective measures to mitigate its money laundering and terrorist financing risk for clients, countries or geographic areas, products, services, and transactions or delivery channels. "While assessing the ML/TF risk, the REs are required to take cognizance of the overall sector-specific vulnerabilities, if any, that the regulator/supervisor may share with REs from time to time," the RBI said in a circular. Further, the internal risk assessment carried out by the regulated entity should be commensurate to its size, geographical presence, complexity of activities/structure, it added.Entities regulated by the RBI include, banks, All India Financial Institutions, NBFCs, and all payment system providers."Also, the REs shall apply a Risk Based Approach (RBA) for mitigation and management of the identified risk and should have Board approved policies, controls and procedures in this regard," the RBI's circular added.The new KYC has come in force with immediate effect, the RBI added. NKD MKJ

RBI asks banks, NBFCs to carry out money laundering risk assessment periodically

The <keyword id="50847" type="General" weightage="20" keywordseo="Reserve-Bank" source="Orion">Reserve Bank</keyword> of India (<keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword>) has extended the last date for periodic KYC update till March 31, amid Omicron uncertainties and has advised banks and other regulated entities not to take restrictive action against customers till the fiscal end. Earlier in May, the RBI had extended the last date for updation of KYC by regulated entities till December-end because of the second wave of the coronavirus pandemic. "In view of the prevalent uncertainty due to new variant of COVID-19, the relaxation provided in the ... circular (relating to Periodic Updation of KYC - Restrictions on Account Operations for Non-compliance issued in May) is hereby extended till March 31, 2022," the RBI said on Thursday. In May, the RBI had advised the regulated entities not to impose punitive restriction on operations of accounts of customers for their failure to comply with the KYC updation norms till December-end. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/list-of-nse-and-bse-stock-market-holidays-in-2022/articleshow/88585352.cms">NSE and BSE in 2022 — List of stock market holidays in the new year</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/rbl-banks-stock-slumped-nearly-10-even-as-rbi-approves-interim-head-for-the-bank/articleshow/88584214.cms">RBL Bank slides back to its lowest in a year despite a new chief and RBI's assurances</a>

RBI extends deadline for periodic KYC update by three months till March 31, 2022

(Eds: Adding details) New Delhi, Mar 3 () A bill to provide more powers to the RBI for regulating cooperative banks was introduced by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday.The Banking Regulation (Amendment) Bill, 2020, which comes in the backdrop of PMC Bank scam, seeks to strengthen cooperative banks by increasing professionalism, enabling access to capital, improving governance and ensuring sound banking through the RBI.Introducing the bill, Sitharaman said it is the "need of the hour" to avoid a PMC Bank-like crisis in the future.Noting that the happenings at the PMC Bank had "unfortunately" put a lot of small depositors in difficulty, she said there were demands that the government should do something about it.The Bill was introduced in the Lok Sabha amid the din, with Sitharaman saying that if the opposition wants to deny the small depositors their rights then "it is a shame". It could not be cleared because of the ongoing ruckus in the House over the issue of violence in Delhi.The proposed law seeks to enforce banking regulation guidelines of the RBI in cooperative banks, while administrative issues will still be guided by the Registrar of Cooperative.It also proposed to bring cooperative banks on par with developments in the banking sector through better management and proper regulation of cooperative banks with a view to ensure that affairs of cooperative banks are conducted in a manner that protects the interest of depositors, it said."Keeping in view developments in the banking sector and regulation thereof overtime, it has become necessary to strengthen provisions of the said Act as applicable to cooperative banks," said the Statement of Objects and Reasons of the Bill.In her Budget speech, Sitharaman had said that to strengthen cooperative banks, amendments would be brought in the Banking Regulation Act for increasing professionalism, enabling access to capital and improving governance and oversight for sound banking through the RBI.The decision assumes significance in the wake of a scam in the Punjab and Maharashtra Cooperative (PMC) Bank affecting lakhs of customers who have been facing difficulty in withdrawing their money due to restrictions imposed by the RBI.The PMC Bank was found to have given over Rs 6,700 crore loan to a single realty company HDIL through alleged fraudulent means and also hid the stress from the RBI by creating separate books of accounts.There are 1,540 cooperative banks with depositor base of 8.60 crore having total savings of about Rs 5 lakh crore. JD CSBAL

Bill to give more powers to RBI to regulate cooperative banks introduced in LS

New Delhi, Jun 27 () President Ram Nath Kovind has promulgated the Banking Regulation (Amendment) Ordinance, 2020 to bring all urban cooperative banks and multi-state cooperative banks under the supervision of the RBI in order to protect the interest of depositors. The Ordinance amends the Banking Regulation Act, 1949 as applicable to cooperative banks, an official statement said on Saturday. "The Ordinance seeks to protect the interests of depositors and strengthen cooperative banks by improving governance and oversight by extending powers already available with RBI in respect of other banks to Co-operative Banks as well for sound banking regulation, and by ensuring professionalism and enabling their access to capital," it said. The amendments do not affect existing powers of the State Registrars of Co-operative Societies under state co-operative laws, it added. The amendments also do not apply to Primary Agricultural Credit Societies (PACS) or co-operative societies whose primary object and principal business is long-term finance for agricultural development, and which do not use the words "bank", "banker" or "banking" and do not act as drawees of cheques, it said. "The Ordinance also amends Section 45 of the Banking Regulation Act, to enable making of a scheme of reconstruction or amalgamation of a banking company for protecting the interest of the public, depositors and the banking system and for securing its proper management, even without making an order of moratorium, so as to avoid disruption of the financial system," it said. There are 1,482 urban cooperative banks and 58 multi-state cooperative banks having about 8.6 crore depositors with total savings deposit of about Rs 4.85 lakh crore. The decision assumes significance in the wake of scams in cooperative banks, including the Punjab and Maharashtra Cooperative (PMC) Bank, affecting lakhs of customers who are facing difficulty in withdrawing their money due to restrictions imposed by the Reserve Bank of India (RBI). The RBI had placed regulatory curbs on PMC Bank on September 23, 2019, after finding out certain financial irregularities and misreporting of loans given to real estate developer HDIL. Earlier this month, the RBI had put restrictions on withdrawals from People's Co-operative Bank, Kanpur, Uttar Pradesh. Finance Minister Nirmala Sitharaman had introduced 'The Banking Regulation (Amendment) Bill, 2020' in the Lok Sabha on March 3, 2020, which is pending approval. The proposed law sought to enforce banking regulation guidelines of the RBI on cooperative banks. In her February 1 Budget speech, Sitharaman had proposed amendments to the Banking Regulation Act with an aim to increasing professionalism and improving governance among the cooperative banks. DP ABM ABM

You Searched For "RBI regulations" and got 12 results

RBI proposes changes in regulations for HFCs

PTI

Loan sanctioning has gone digital, but recovery still needs a 'feet on the street' approach, says RBI Deputy Governor

ANI

Truncated trading hours for debt, currency markets extended till further notice: RBI

PTI

The RBI is butting heads with the central government over a proposal to establish an independent payments regulator

Dilsher Dhillon

HDFC gets RBI nod to acquire 9.5% stake in IndusInd Bank

IANS

Plea for regulation to ensure UPI data is not 'exploited' to be heard by the Supreme Court on November 23

PTI

Budget 2019: RBI will regulate housing finance companies, tighten hold on NBFCs

BI India Bureau

RBI proposes rationalising regulations on export, import transactions

PTI

RBI asks banks, NBFCs to carry out money laundering risk assessment periodically

PTI

RBI extends deadline for periodic KYC update by three months till March 31, 2022

PTI

Bill to give more powers to RBI to regulate cooperative banks introduced in LS

PTI

President promulgates ordinance to bring co-operative banks under RBI supervision

PTI

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