Press Release*
October 2012
Directions under Section 35A of the
Banking Regulation Act, 1949 (AACS) Shri
Siddhivinayak Nagari Sahakari Bank Ltd.,
Rasayani, Dist. Raigad, Maharashtra
October 1, 2012
It is hereby notified for the information of the
public that validity period of directions imposed on
Shri Siddhivinayak Nagari Sahakari Bank Ltd., Rasayani,
Dist. Raigad vide our directive UBD.CO.BSD-I.No.D-
56/12.22.332/2011-12 dated September 29, 2011,
extended vide directive UBD.CO.BSD-I.No.D-74/
12.22.332/2011-12 dated March 14, 2012 has been
extended further for a period of six months i.e. from
September 29, 2012 to March 28, 2013 vide our modified
directive UBD.CO.BSD-I.No.D-10/12.22.332/2012-13
dated September 14, 2012. The other terms and
conditions remain unchanged. A copy of the direction
dated September 14, 2012 notifying the above
modification is displayed at the bank’s premises for the
perusal of public.
The aforesaid modification by the Reserve Bank
of India should not per-se be construed to imply that
Reserve Bank of India is satisfied of substantive
improvement in the financial position of the bank.
Directions under Section 35A of the
Banking Regulation Act, 1949 (AACS)
Swami Samarth Sahakari Bank Ltd.,
Akkalkot, Solapur, Maharashtra
October 1, 2012
It is hereby notified for the information of the
public that validity period of directions imposed on
Swami Samarth Sahakari Bank Ltd., Akkalkot, Solapur,
Maharashtra vide our directive UDB.CO.BSD-I/
D-76/12.22.282/2011-12 dated March 30, 2012 has been extended further for a period of six months i.e., from
September 30, 2012 to March 29, 2013 vide our modified
directive UBD.CO.BSD I/D-9/12.22.282/2012-13 dated
September 14, 2012. The other terms and conditions
remain unchanged. A copy of the directive dated
September 14, 2012 notifying the above modification
is displayed at the bank’s premises for the perusal of
public.
The aforesaid modification by the Reserve Bank
of India should not per-se be construed to imply that
Reserve Bank of India is satisfied of substantive
improvement in the financial position of the bank.
RBI Central Board of Directors meets
today at Puducherry
October 4, 2012
The Reserve Bank of India’s Central Board of
Directors met today at Puducherry. Dr. D. Subbarao,
Governor, Reserve Bank of India chaired the meeting.
Directors Dr. Anil Kakodkar, Shri Kiran S. Karnik, Prof.
M.V. Rajeev Gowda, Shri Y.H.Malegam, Smt. Ela Bhatt,
Dr. Indira Rajaraman and Shri Y.C. Deveshwar, as also,
Government nominee director on the Central Board
Shri Aravind Mayaram, Secretary, Economic Affairs
attended the meeting. Deputy Governors Dr. K. C.
Chakrabarty, Dr. Subir Gokarn, Shri Anand Sinha and
Shri Harun R. Khan were also present.
The Board reviewed the current economic
situation and global and domestic challenges and policy
responses.
The Central Board meets at least once every
quarter. Apart from holding meetings in Mumbai,
Chennai, Kolkata and one in New Delhi after the Union
Budget which is addressed by the Finance Minister, the
rest of the meetings are held in other state capitals by rotation. The main function of the Central Board of
Directors of the Reserve Bank is to provide overall
direction to the Reserve Bank’s affairs.
Banks urged to enhance education loans in
Puducherry
After the Central Board meeting, the Governor also
held a special State Level Bankers Committee (SLBC)
meeting in which all banks, including SLBC convener
Indian Bank and State Government officials, led by the
Chief Secretary of Puducherry Smt. M. Sathiyavathy
participated. The following issues were discussed
during the meeting:
-
Banks will work out a plan of action at the
State Level Bankers Committee to increase the
flow of education loan in Puducherry to enable
the Puducherry government to position the
Union Territory as a premier education centre
in the country.
-
The Reserve Bank will also prepare a position
paper on education loans across the country.
-
The Reserve Bank Governor urged the
administration and banks in the Union
Territory of Puducherry to make financial
inclusion more meaningful. This would
require that the account-holders are encouraged
to use their bank accounts for credit and
remittance facilities as well.
-
The Government and banks would jointly work
towards transferring benefits of government
schemes directly to bank accounts of the
beneficiaries, to enable payment of taxes
through e-payment. They will also jointly
conduct a campaign to make farmers aware of
the benefits of obtaining crop insurance.
Earlier, the Governor and the Deputy Governors
of the Reserve Bank interacted with students from
colleges in and University of Puducherry in a town hall
event. Students raised interesting questions relating to
economy, banking and the functions of Reserve Bank
of India.
The Bapunagar Mihila Co-operative Bank
Ltd., Ahmedabad – Penalised
October 5, 2012
The Reserve Bank of India has imposed a monetary
penalty of `5.00 lakh (Rupees five Lakh only) on the
The Bapunagar Mihila Co-operative Bank Ltd.,
Ahmedabad, in exercise of the powers vested in it under
the provisions of Section 47A (1)(b) read with Section
46(4) of the Banking Regulation Act, 1949 (As applicable
to Co-operative Societies), for violation of Reserve Bank
of India directives/guidelines on exceeding the ceiling
on unsecured advances, delay in reporting of Suspicious
Transaction Reports (STRs), non-filing of First
Information Reports (FIRs) and delay in submission of
FIRs without any cogent reasons.
The Reserve Bank of India had issued a Show
Cause Notice to the bank, in response to which the
bank submitted a written reply and made further
submissions during the personal hearing by Regional
Director. After considering the facts of the case and
bank’s reply in the matter, the Reserve Bank of India
came to the conclusion that the violations were
substantiated and warranted imposition of penalty.
Working Group on Cloud computing
option for small size UCBs
October 5, 2012
The Reserve Bank of India has today placed on its
website, the report of the Working Group on Cloud
computing option for small size Urban Co-operative
Banks (UCBs). The Working Group comprising senior
officers from the Reserve Bank, experts from the
software industry and eminent professors from
academia was set up in July 2012. The Working Group
reviewed the profile of the sector, technological trends
in Cloud Computing and use of cloud like solutions
within UCBs. Based on the analysis, the Working Group
has suggested its approach for Cloud computing option.
The study observed that many Urban Cooperative
banks have been providing IT support to other cooperative banks which included sharing of Data
Centre and DR sites, Automated Teller Machines and
Payment Gateways. Some of these banks were also
providing their software solutions as outright sale or
fees based ASP model. It was observed that two leading
software company had been also offering cloud like
services which included core banking as well as many
other solutions such as HR solutions, e-mail, storage,
etc which the banks could choose. These services were
mostly on private cloud like set up.
The Working Group has recommended caution
while adopting cloud computing solutions by the Urban
Cooperative banks till such time that all issues related
to its standards and technology management processes
are understood and resolved. In cases where such
innovative solutions are already adopted, the Working
Group has recommended that the issues identified in
this report may be examined on the lines indicated in
the report to ensure adequacy of risk mitigation
measures and to address concern regarding data
security and data privacy in the multi-tenancy
environment. Finally the Working Group has identified
the need for further study in the area of Cloud
Governance, Cloud Audit, Cloud Management and
Cloud Security Technology.
ING Vysya Bank Ltd. and ICICI Bank Ltd.– Penalised
October 9, 2012
The Reserve Bank of India has imposed monetary
penalties of `55 lakh on ING Vysya Bank Ltd. and `30
lakh on ICICI Bank Ltd., in exercise of the powers vested
with it under the provisions of Section 47A(1)(b) read
with Section 46(4)(i) of the Banking Regulation Act,
1949. The penalties have been imposed on these banks
for contravention of various directions and instructions
issued by the RBI on ‘Know Your Customer (KYC) norms/
Anti-Money Laundering (AML) Standards/Combating
of Financing of Terrorism (CFT)/Prevention of Money
Laundering Act, 2002’, such as failure to obtain adequate documents for opening accounts, failure to
carry out sufficient customer identification procedures,
failure to examine control structure of entities, failure
to ascertain the identification of natural persons behind
entities, failure to carry out effective enhanced due
diligence, failure to carry out appropriate risk
categorisation and delay in filing the Suspicious
Transaction Reports.
The RBI had issued Show Cause Notices to these
banks and in response thereto, the banks had submitted
their written replies. On a careful examination of the
banks’ written replies and the oral submissions made
during the personal hearings, the RBI found that the
violations were established and the penalties were
accordingly imposed.
RBI constitutes High Level Financial
Inclusion Advisory Committee
October 11, 2012
The Reserve Bank of India has constituted a high
level Financial Inclusion Advisory Committee (FIAC) to
spearhead the efforts towards greater financial
inclusion. The collective expertise and experience of
the members of the committee is expected to explore
issues such as developing viable and sustainable
banking services delivery models focussing on
accessible and affordable financial services, developing
products and processes for rural as well as urban
consumers presently outside the banking network and
suggest appropriate regulatory framework to ensure
that financial inclusion and financial stability move in
tandem.
The Committee will be chaired by Dr. K.C.
Chakrabarty, Deputy Governor, Reserve Bank of India
and will comprise of the following members:-
a. Shri Y.H. Malegam, Member, Central Board of
Directors, Reserve Bank of India
b. Professor Dipankar Gupta, Member, Central
Board of Directors, Reserve Bank of India
c. Ms. Ela Ramesh Bhatt, Member, Central Board
of Directors, Reserve Bank of India
d. Shri D.K. Mittal, Member, Central Board of
Directors, Reserve Bank of India & Secretary,
Department of Financial Services, Ministry of
Finance, Government of India
e. Dr. Nachiket Mor, Member of the Governing
Council, IKP Trust and former Deputy
Managing Director of ICICI Bank
f. Professor M.S. Sriram, Independent Researcher
& Adjunct Professor, Indian Institute of
Management, Ahmedabad and Indian Institute
of Management, Indore
g. Shri R.S. Sharma, Director General, Unique
Identification Authority of India (UIDAI)
h. Shri B. Sambamurthy, Director, Institute of
Development & Research in Banking
Technology (IDRBT)
i. Ms. Rama Vedashree, Vice President, NASSCOM
and Member of NABARD’s Advisory Board on
Financial Inclusion Fund and Financial
Inclusion Technology Fund
j. Shri P.D.K. Rao, Managing Trustee, Sodhana
Charitable Trust
k. Chairman, Indian Banks’ Association – Shri
K.R. Kamath, Chairman & Managing Director,
Punjab National Bank
Executive Director in-charge of Rural Planning and
Credit Department, Reserve Bank of India will be the
Convenor of the Committee and the Rural Planning and
Credit Department, Central Office, Reserve Bank of
India will provide the Secretariat to the Committee.
It may be mentioned that there has been
significant, albeit slow, progress towards greater
financial Inclusion. However, ensuring accessible and
affordable financial services in all 6 lakh villages in
India is a herculean task and given the enormity of the
task, a lot of ground still needs to be covered. This calls
for a partnership of all the stakeholders – Reserve Bank,
other sectoral regulators like Securities and Exchange
Board of India, Insurance Regulatory and Development
Authority, Pension Fund Regulatory and Development Authority, National Bank for Agriculture and Rural
Development; Banks; Governments; Civil Society; Non-
Governmental Organisations, etc.
While the regulators and the Government of India
are already part of the Technical Group on Financial
Inclusion and Literacy of the Sub-committee of the
Financial Stability & Development Council, a need was
felt to engage the members from the civil society/Non-
Governmental Organisations and others for a sound
and purposeful collaboration. The Committee, if
necessary, would call other market players like
Corporate Business Correspondents, Technology
Vendors etc., as special invitees to the meetings. Since
the financial inclusion model selected in India is
primarily bank-led, the Financial Inclusion Advisory
Committee may also invite the Chairperson/Managing
Directors of banks to each of its meetings to gather the
perspective of the banks.
RBI introduces New External Research
Funding Scheme in Memory of Noted
Economist Prof. K.N. Raj; invites
Applications from Scholars
October 15, 2012
The Reserve Bank of India has introduced a new
external research funding scheme in the name of Prof.
K. N. Raj, a noted economist who rendered distinguished
services to the Reserve Bank, economic planning and
to the nation in general. It has invited applications for
the year 2012-13 from eligible scholars. Applications in
soft form need to be sent to the Reserve Bank on or
before November 15, 2012.
Called Prof. K.N. Raj Memorial National Fellowship
Scheme, the objective of this scheme is to encourage
distinguished research scholars in India or abroad to
work in academic institutions in India for a short period
and to facilitate interaction between the scholar and
other faculties of the institution in which the scholar
would work. The theme will be identified by a Steering
Committee on Economic and Policy Research (SCEPR)
of the Reserve Bank of India.
Distinguished scholars in the field of social
sciences from reputed domestic/international
universities/research institutions (Indian or foreign
nationals), scholars having outstanding professional
contributions including publication of papers/articles
in leading international journals and scholars sponsored
by reputed domestic/international universities/research
institutions fulfilling the requirements are eligible to
apply.
Details of the Scheme and application form are
available at www.rbi.org.in
Prof. Damodar Acharya nominated on
RBI Central Board
October 16, 2012
The Central Government has nominated Prof.
Damodar Acharya as a director on the Central Board of
Directors of the Reserve Bank of India for a period of
four years with effect from October 12, 2012. The
nomination has been made in exercise of the powers
conferred by clause (c) of sub-section (1) of Section 8
of the Reserve Bank of India Act, 1934.
Certificate of Registration of
Venkataraya Finance Private Limited
Cancelled
October 18, 2012
The Reserve Bank of India has on August 29, 2012
cancelled the certificate of registration No. B-09.00366
dated July 20, 2001, issued to Venkataraya Finance
Private Limited, having its registered office at 12-69-6,
Industrial Area Road, Tanuku-534211, West Godavari
District, Andhra Pradesh for carrying on the business
of a non-banking fi nancial institution as the company
has voluntarily exited from carrying on NBFI activities.
Following cancellation of the registration certificate the
company cannot transact the business of a non-banking
financial institution.
By the powers conferred under Section 45-IA (6)
of the Reserve Bank of India Act, 1934, the Reserve Bank
can cancel the registration certificate of a non-banking financial company. The business of a non-banking
financial institution is defined in clause (a) of Section
45-I of the Reserve Bank of India Act, 1934.
Vyavasayik Evam Audyogik Sahakari
Bank Maryadit, Morena (Madhya
Pradesh) – Penalised
October 18, 2012
The Reserve Bank of India has imposed a monetary
penalty of `5.00 lakh (Rupees Five Lakh only) on the
Vyavasayik Evam Audyogik Sahakari Bank Maryadit,
Morena (Madhya Pradesh), in exercise of the powers
vested in it under the provisions of Section 47A (1)(b)
read with Section 46(4) of the Banking Regulation Act,
1949 (As applicable to Co-operative Societies), for
violation of the directives/instructions/guidelines of
the Reserve Bank of India on credit exposure ceiling,
maximum limit on unsecured advances, Know Your
Customer (KYC)/Anti Money Laundering(AML) and
submission of compliance to RBI’s inspection report.
The Reserve Bank of India had issued a Show Cause
Notice to the bank in response to which the bank
submitted a written reply. After the bank’s written
reply, RBI came to the conclusion that the violation was
substantiated and warranted imposition of penalty.
Directions under Section 35A of the
Banking Regulation Act, 1949 (AACS)
Abhinav Sahakari Bank Ltd., Rahuri,
Ahmednagar, Maharashtra
October 19, 2012
It is hereby notified for the information of the
public that validity period of directions imposed on
Abhinav Sahakari Bank Ltd., Rahuri, Ahmednagar,
Maharashtra vide our directive UDB.CO.BSD-I/
D-80/12.22.472/2011-12 dated April 13, 2012 has been
extended further for a period of six months i.e.. from
October 17, 2012 to April 16, 2013 vide our modified
directive UBD.CO.BSD I/D-15/12.22.472/2012-13 dated
October 11, 2012. The other terms and conditions
remain unchanged. A copy of the directive dated October 11, 2012 notifying the above modification is
displayed at the bank’s premises for the perusal of
public.
The aforesaid modification by the Reserve Bank
of India should not per-se be construed to imply that
Reserve Bank of India is satisfied of substantive
improvement in the financial position of the bank.
Directions under Section 35A of the
Banking Regulation Act, 1949 (AACS)
Shri Shivaji Sahakari Bank Ltd.,
Gadhinglaj, Dist. Kolhapur, Maharashtra
October 22, 2012
It is hereby notified for the information of the
public that validity period of directions imposed on
Shri Shivaji Sahakari Bank Ltd., Gadhinglaj, Dist.
Kolhapur vide our directives UBD.CO.BSD-I.No.D-
61/12.22.249/2011-12 dated October 24, 2011 and UBD.
CO.BSD-I.No.D-79/12.22.249/2011-12 dated April 13,
2012, has been extended for a further period of six
months from October 25, 2012 to April 24, 2013 vide
our modified directive UBD.CO.BSD-I.No.D-18/12.22.249/
2012-13 dated October 16, 2012 subject to review. The
other terms and conditions remain unchanged. A copy
of the direction dated October 16, 2012 notifying the
above modification is displayed at the bank’s premises
for the perusal of public.
The aforesaid modification by the Reserve Bank
of India should not per-se be construed to imply that
Reserve Bank of India is satisfied of substantive
improvement in the financial position of the bank.
The Vijay Co-operative Bank Ltd.,
Ahmedabad – Penalised
October 29, 2012
The Reserve Bank of India has imposed a monetary
penalty of ` 5.00 lakh (Rupees Five Lakh only) on The
Vijay Co-operative Bank Ltd., Ahmedabad, in exercise
of the powers vested in it under the provisions of
Section 47A (1)(b) read with Section 46(4) of the Banking
Regulation Act, 1949 (As applicable to Co-operative Societies), for violation of Know Your Customer (KYC)
norms and violation of operational instructions viz.,
distributing dividend without obtaining prior approval
from RBI.
The Reserve Bank of India had issued a Show
Cause Notice to the bank in response to which the bank
submitted a written reply. After considering the facts
of the case and the bank’s replies as also personal
submission in the matter, the Reserve Bank of India
came to the conclusion that the violation was
substantiated and warranted imposition of the penalty.
Change in settlement cycle of the
primary auction in T-Bills to T+1
settlement
October 30, 2012
As announced in Second Quarter Review of
Monetary Policy 2012-13 (Para No. 64), in order to bring
about standardisation and enhance market efficiency,
it has been decided that the settlement cycle of primary
auction in T-Bills would be reduced from T+2 to T+1
settlement. This change would come to effect from
November 21, 2012.
Udhna Citizen Co-operative Bank Ltd.,
Surat, Gujarat
October 31, 2012
In exercise of the powers vested under sub-section (1) of Section 35 A of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies), the period of directions imposed by the Reserve Bank of India on the Udhna Citizen Co-operative Bank Ltd., Surat, Gujarat, vide its directive UBD.CO.BSD.II No./D-81/12.21.354/2011-12 dated April 20, 2012, expiring on November 1, 2012, has since been further extended by six months i.e. up to May 1, 2013, vide modified directive No.UBD.CO.BSD. II./D-16/12.21.354/2012-13 dated October 10, 2012 subject to review. The modified directive is displayed on the bank’s premises for interested members of the public to peruse.
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