RBI

dy-rbi-governor-kanungo-gets-extension

Dy RBI Governor Kanungo gets extension

The NaMo administration on Friday extended the tenure of Deputy RBI Governor B P Kanungo for a period of one year up to 03.04.2021. His tenure was scheduled to end on 02.04.2020.

After the exit of Viral Acharya, Kanungo was assigned the portfolio of monetary policy and forecasting department in addition to his regular portfolio currency management.

27 Mar 2020
merger-of-banks-to-be-effective-from-april-1,-2020

Merger of banks to be effective from April 1, 2020

Exercise of consolidation of 10 PSBs into four is on course and the merger will come into effect from April 1, 2020. Cabinet has given a go-ahead for the merger proposal with the government being in regular touch with these banks.

There will be no regulatory issues. The banks’ merger is on course and decisions have already been taken by the respective bank boards. The mergers are aimed at creating global sized banks in India.

This has been the biggest consolidation exercise in banking sector. The government in August 2019 announced mergers of public sector banks by bringing down their total number to 12 from 27 in 2017.

United Bank and Oriental Bank of Commerce will be merged with PNB; Syndicate Bank will be merged with Canara Bank; Allahabad Bank will be amalgamated with Indian Bank, and Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.

05 Mar 2020
dy-rbi-governor-kanungo-gets-extension

Dy RBI Governor Kanungo gets extension

By IndianMandarins 27 Mar 2020

The NaMo administration on Friday extended the tenure of Deputy RBI Governor B P Kanungo for a period of one year up to 03.04.2021. His tenure was scheduled to end on 02.04.2020.

After the exit of Viral Acharya, Kanungo was assigned the portfolio of monetary policy and forecasting department in addition to his regular portfolio currency management.

merger-of-banks-to-be-effective-from-april-1,-2020

Merger of banks to be effective from April 1, 2020

By IndianMandarins 05 Mar 2020

Exercise of consolidation of 10 PSBs into four is on course and the merger will come into effect from April 1, 2020. Cabinet has given a go-ahead for the merger proposal with the government being in regular touch with these banks.

There will be no regulatory issues. The banks’ merger is on course and decisions have already been taken by the respective bank boards. The mergers are aimed at creating global sized banks in India.

This has been the biggest consolidation exercise in banking sector. The government in August 2019 announced mergers of public sector banks by bringing down their total number to 12 from 27 in 2017.

United Bank and Oriental Bank of Commerce will be merged with PNB; Syndicate Bank will be merged with Canara Bank; Allahabad Bank will be amalgamated with Indian Bank, and Andhra Bank and Corporation Bank will be consolidated with Union Bank of India.

public-sector-banks-threaten-to-go-on-strike-during-budget

Public sector banks threaten to go on strike during budget

By IndianMandarins 16 Jan 2020

Unions of public sector banks threatened to go on a two-day nationwide strike beginning January 31, 2020 to press for early wage revision. Wage revision for employees of public sector banks is pending since November 2017. The strike will coincide with beginning of the Budget session and presentation of Budget 2020-21.

Strike has been called by the United Forum of Bank Unions, an umbrella body of the nine bank unions including All India Bank Officers’ Confederation, All India Bank Employees Association and National Organisation of Bank Workers (NOBW).

The meeting of UFBU held at Mumbai on January 13 came to the unanimous and inescapable conclusion that intensified agitational actions have to be resorted to press our demands for reasonable resolution and satisfactory settlement. Unions are demanding wage revision settlement at 20 per cent hike on pay slip components with adequate loading.

rbi-proposes-to-bring-down-single-and-group-borrower-limits-of-ucbs

RBI proposes to bring down single and group borrower limits of UCBs

By IndianMandarins 31 Dec 2019

The RBI has proposed that single and group borrower limits of UCBs should be brought down and half the loans given should not be of more than Rs 25 lakh however it is for raising limits of priority sector lending targets.

UCBs’ target for priority-sector lending has been proposed at 75 per cent of their credit from 40 per cent now. The target has to be reached in phases — 50 per cent by March 2021, 60 per cent by March 2022, and 75 per cent by March 2023.

At present, UCBs are allowed to have exposures of up to 15 per cent and 40 per cent of their capital funds to a single borrower and a group of borrowers, respectively.

Urban cooperative bankers are of the view that draft norms were similar to those prescribed for small finance banks (SFBs). These norms, if they become rules, will hamper the growth of cooperatives. The move seems to be to push UCBs to become SFBs.

The RBI said the norms would save UCBs from concentration risk and focus on their larger agenda of financial inclusion, for which they were created.

merger-process-of-ten-banks-in-advance-stage

Merger process of ten banks in advance stage

By IndianMandarins 17 Dec 2019

Ten banks involved in the merger are understood to be in advanced stages of due diligence with just over three months left to complete the process of consolidation of PSBs. This was announced by finance minister in September.

PNB, Union Bank of India, Canara Bank and Indian Bank will acquire six smaller nationalised banks. Given the amount of the additional provisioning burden that the merger process may entail, it is expected that the upcoming Budget may provide for another round of recapitalization.

In order to estimate the amount of capital required by these banks, which the government may have to pump in, the due diligence process has been put on fast track. Audit and consultancy firm PwC has been appointed by Canara Bank, while Indian Bank has appointed KPMG to conduct due diligence. Deloitte has the mandate from PNB and Union Bank. All banks lined up for consolidation have been asked to meet the December 31 deadline to complete due diligence.

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RBI: Dy Guv Vishwanathan re-appointed

By IndianMandarins 01 Jul 2019

The NaMo administration on Monday announced the re-appointment of N S Vishwanathan, the outgoing Deputy Governor RBI, for another one year beginning July 04, 2019. His term is scheduled to end on July 03, 2019.  

rbi-fines-several-banks

RBI fines several banks

By IndianMandarins 06 Mar 2019

The Reserve Bank of India has fined two public sector banks for non-compliance of directions on Swift messaging software. On Tuesday, Bank of Baroda was slapped a Rs 4 crore penalty and Canara Bank Rs 2 crore for delayed implementation of the Swift related operational controls.

 

Swift is the global messaging software used for transactions by the financial entities. It may be noted that the huge Rs 14,000 crore fraud at the Punjab National Bank was a case of misuse of this messaging software. Post the PNB fraud, which came to light in February 2018, the RBI has been tough on banks to tighten all kinds of transactions. The RBI had asked banks to take time-bound measures to strengthen internal controls to avoid fraud transaction.

 

Earlier today, the apex bank slapped Rs 1 crore fine on private sector lenders ICICI Bank and Yes Bank for non-compliance of directions on Swift.

Allahabad Bank was fined for non-compliance of RBI directions dated February 20, 2018, pertaining to the reconciliation of Nostro on a real-time basis with immediate effect, as per a BSE filing.

 

On Monday, the RBI had slapped a total monetary fine of Rs 8 crore on three banks- Karnataka Bank, United Bank of India and Karur Vysya Bank for not complying with the directions related to Swift.

 

Earlier on Saturday, four banks - State Bank of India (SBI), Union Bank of India, Dena Bank and IDBI - had informed stock exchanges about monetary penalty slapped on them by the RBI for non-compliance with various directions. A fine of Rs 3 crore was imposed on Union Bank, Rs 2 crore on Dena Bank, and Rs 1 crore each on IDBI and the SBI.

rbi-fines-four-psbs

RBI fines four PSBs

By IndianMandarins 14 Feb 2019

The Reserve Bank of India (RBI) has imposed a monetary penalty on four public sector banks for violating various norms. While Corporation Bank is fined Rs 02 crore penalty, State Bank of India, Bank of Baroda and Union Bank of India are fined a penalty of Rs one crore each.

 

“RBI has imposed, monetary penalty for non-compliance with various directions issued by RBI on monitoring of end-use of funds, exchange of information with other banks, classification and reporting of frauds, and on the restructuring of accounts,” the banking regulator said.

 

RBI further added that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.

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