Tag: RBI guidelines

AU Small Finance Bank Submits Application To RBI For Universal Bank License. Economy News

New Delhi: AU Small Finance Bank (AUSFB) on Tuesday submitted an application to the RBI seeking approval for a universal bank license. The RBI in April invited applications from small finance banks meeting specified criteria, including a minimum net worth of Rs 1,000 crore, for becoming regular or universal banks.

AUSFB submitted an application to the central bank seeking approval for the voluntary transition from a small finance bank to a universal bank on September 3, 2024, the lender said in a BSE filing.

In November 2014, the RBI issued guidelines for the licensing of small finance banks (SFBs) in the private sector. As per the April guidelines of RBI, an SFB aiming to become a universal bank should have a minimum net worth of Rs 1,000 crore at the end of the previous quarter and shares of the bank should have been listed on a recognized stock exchange.

It should also have a net profit in the last two financial years and gross NPA and net NPA of less than or equal to 3 per cent and 1 per cent, respectively, in the last two financial years.

Jaipur-based AUSFB acquired Fincare Small Finance Bank, and the merger became effective on April 1 this year. With the merger, the total business mix of the merged entity crossed Rs 1.8 lakh crore.

September 3, 2024
Govt Bonds Worth Rs 28,000 Crore Coming Up For Sale On Friday | Markets News

New Delhi: The Finance Ministry on Wednesday announced the sale of Government bonds worth Rs 28,000 crore in three lots through auctions to be conducted by the Reserve Bank of India in Mumbai on Friday (July 5). The first lot comprises “7.02 per cent Government Security 2027” for a notified amount of Rs 6,000 crore.

The second set of “7.23 per cent Government Security 2039” are valued at Rs 12,000 crore while the third lot of “7.30 per cent Government Security 2053” are for a notified amount of Rs 10,000 crore. The three lots will be sold through a price-based auction using the multiple price method.

The government will have the option to retain additional subscriptions up to Rs 2,000 crore against each of the three securities. Up to 5 per cent of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 5. The non-competitive bids should be submitted between 10.30 am and 11 am and the competitive bids should be submitted between 10.30 am and 11.30 am

The result of the auctions will be announced on July 5, 2024 (Friday) and payment by successful bidders will be on June 8 (Monday). The Securities will be eligible for “When Issued” trading in accordance with the RBI guidelines.

July 3, 2024
Death claims: How some banks nonetheless pose hurdles

A nominee of a checking account—financial savings or fastened deposit— is liable to obtain proceeds from the stated account on the demise of the account holder. This is as per the laws of the Reserve Bank of India (RBI). Yet, not all banks implement this rule in true spirit and so nominees or authorized heirs of account holders face quite a few challenges throughout dying declare processing. This is true of some massive banks, the place every of the branches are depending on the foundations adopted by the zonal and regional workplaces in blatant violation of RBI pointers.

At such branches, the officers involved demand irrelevant paperwork, claiming that it’s in accordance with directions despatched by the lender’s authorized division. Branch officers select not to reply to emails or letters which quote RBI pointers and even their very own insurance policies (as hosted on their web site). With inner grievance cells missing independence and effectiveness; a lukewarm assist underneath Integrated Ombudsman Scheme 2021 appears to be extra of a compliance requirement leading to pointless harassment of account holders and their nominees.

Such was the case with Pawar, who didn’t need to disclose her first title—was the nominee of her son’s financial savings checking account with a personal sector financial institution (at Sri Ganganagar). After her son’s dying, the financial institution refused to simply accept her declare software, citing that the nominee ought to acquire no objection certificates from two firms— her son was a certified signatory at one the businesses and a accomplice on the different. Both these entities additionally had present accounts with the identical department of the financial institution and had been debt free. When her declare was rejected, Pawar, a retired banker, threw the rule e-book at them on the relevance of nomination and immunity from the 2 accounts owned by impartial entities. The department supervisor, nevertheless, refused to get right into a dialogue, whereas the zonal and regional heads refused to satisfy the nominee or settle for illustration letters. Her declare is pending for greater than six months now.

In one other case, Lima—who too didn’t need to disclose her full title—was the nominee of her mom’s financial savings checking account and a few fastened deposits with a number one public sector financial institution. Her mom suffered a cardiac arrest and died when she came over her within the US in 2021. Her certificates of dying was issued by the division of well being and psychological hygiene metropolis of New York. Lima visited India in February this yr and submitted a dying declare. The financial savings account had periodic ECS transactions and was operative. The financial institution refused to simply accept the declare and demanded that the dying certificates be adjudicated within the US after which notarized. This stipulation, as per the financial institution’s personal web site, is relevant solely to non-residential exterior (NRE) or non- resident unusual (NRO) account holders who die abroad.

Accordingly, Lima then submitted the dying certificates, which, too, was refused by the financial institution in violation of the mannequin operational process (MOP) adopted by its board of administrators, and in opposition to the mannequin buyer rights coverage formulated by Indian Banking Association (IBA). The financial institution’s customer support remained a mute spectator and its authorized division opted to not reply to any letters or submissions. A plea to the chairman and impartial board members stating {that a} resident account owned by a resident Indian can’t be topic to guidelines relevant to non-resident accounts didn’t heed any response. The financial institution additionally didn’t acknowledge a duplicate of return of revenue filed by Lima’s authorized consultant on the earnings and a duplicate of revenue tax returns of the deceased in India. Sadly, the financial institution adopted its personal interpretation of deciding the residential standing of a deceased account holder and never as per Fema or revenue tax Act.

Lima additionally confronted an identical downside with one other public sector financial institution. Here although, her mom had two separate accounts in two completely different branches of this financial institution. While one department accepted the dying certificates (duly notarized in India) and processed the declare, one other department (situated barely 2km away) initially refused to simply accept the certificates. When questioned concerning the differential therapy at two completely different branches of the identical financial institution, the lender quietly settled the declare.

Many banks, in utter disregard of RBI notifications, proceed to harass nominees and authorized heirs and attempt to deprive them of what’s rightfully theirs. The regulatory regime lacks sufficient mechanism to forestall such occurrences, maybe as a consequence of lack of accountability and levy of penalties.

Rajat Dutta is founder & initiator, Inheritance Needs Services Pvt. Ltd

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Updated: 07 Aug 2023, 10:49 PM IST

Topics

August 7, 2023
Retail, wholesale commerce introduced underneath MSMEs: Gadkari

MSME minister Nitin Gadkari on Friday introduced inclusion of retail and wholesale commerce underneath MSMEs as per which they can even now get the advantage of precedence sector lending underneath RBI tips. He stated the retail and wholesale commerce sector was ignored of the ambit of MSMEs (micro, small and medium enterprises).
“Now under the revised guidelines, retail and wholesale trade will also benefit from priority sector lending under RBI guidelines,” the Minister added.
In a tweet, he stated the federal government is dedicated to strengthening MSMEs and make them engines of financial development.

The revised tips will profit 2.5 crore retail and wholesale merchants. The transfer would additionally enable them to register on Udyam portal.
Commenting on the event, Confederation of All India Traders (CAIT) stated, with this choice, merchants will be capable of avail requisite funds from banks and monetary establishments underneath precedence sector lending.

Besides, now the merchants can avail the advantages of a number of different authorities schemes for MSMEs, it stated in an announcement.

July 3, 2021
RBI points tips for appointment of statutory auditors of banks, NBFCs

The Reserve Bank of India on Tuesday issued tips for appointment of statutory auditors of banks and non-banking finance corporations (NBFCs), together with housing finance corporations.
‘Guidelines for Appointment of Statutory Central Auditors (SCAs)/ Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs)’ might be relevant for monetary yr 2021-22 and onwards.
However, non-deposit taking NBFCs with asset dimension beneath Rs 1,000 crore have the choice to proceed with their extant process.

The tips present obligatory directions for appointment of SCAs/SAs, the variety of auditors, their eligibility standards, tenure and rotation, and so on. whereas making certain the independence of auditors, the Reserve Bank stated.
As the rules are being applied for the primary time for Urban Co-operative Banks (UCBs) and NBFCs from 2021-22, “they shall have the flexibility to adopt these guidelines from the second half of FY 2021-22, in order to ensure that there is no disruption”.
Banks and UCBs might be required to take prior approval of Reserve Bank of India (RBI) for appointment/reappointment of SCAs/SAs, on an annual foundation, the rules stated.
For entities with an asset dimension of Rs 15,000 crore and above as on the finish of earlier yr, statutory audit ought to be carried out below joint audit of a minimal of two audit corporations. All different entities ought to appoint a minimal of 1 audit agency for conducting statutory audit.

“It shall be ensured that joint auditors of the entity do not have any common partners and they are not under the same network of audit firms. Further, the entity may finalise the work allocation among SCAs/SAs, before the commencement of the statutory audit, in consultation with their SCAs/SAs,” it stated.
The tips additional stated that so as to shield the independence of the auditors/audit corporations, entities must appoint the SCAs/SAs for a steady interval of three years, topic to the corporations satisfying the eligibility norms every year.

April 27, 2021
Airtel Payments Bank hikes day-end stability by as much as ₹2 lakh. 5 issues to know

Airtel Payments Bank has elevated the day-end stability by as much as ₹2 lakh, according to the Reserve Bank of India’s (RBI) pointers. This means prospects having an account with Airtel Payments Bank will be capable to save extra with this elevated restrict.

The financial institution’s deposits are insured beneath the Deposit Insurance and Credit Guarantee Corporation (DICGC) which is a wholly-owned subsidiary of the RBI.

Anubrata Biswas, MD and CEO, Airtel Payments Bank, stated, “The RBI’s resolution to extend the stability restrict is an endorsement of the function funds banks have in furthering monetary and digital inclusion in India.”

Requirements for opening an account

You have to have an Aadhaar card and lively cell quantity to open Airtel Payments Bank account by means of the Aadhaar biometric authentication course of. You might also go for a non-Aadhaar primarily based account by visiting any of the financial institution branches and filling out the account opening type. This type has additionally been uploaded to the financial institution web site. While onboarding additionally, you will be requested to share your PAN particulars. If the identical shouldn’t be obtainable, it is advisable submit type 60.

There are not any costs to open an account. However, it’s possible you’ll refer financial institution schedule of costs for Account Facilitation Charges being applied whereas opening an account.

The advantage of funds checking account

With an Airtel Payments Bank account, you possibly can deposit and withdraw cash (you possibly can withdraw cash at any Airtel Payments Bank Banking Point by means of the Aadhaar biometric authentication course of, with only a finger scan), switch funds to different’s Airtel Payments Bank Account and different financial institution accounts, recharge cell and DTH, pay payments, guide tickets, pay outlets, make on-line funds, and so on.

How to switch cash

You can ship/switch cash utilizing any of the next modes:

> My Airtel App: Airtel Payments Bank part

> IVR: Dial 400 from registered cell quantity (airtel prospects) or 8800688006 (all prospects)

>USSD: Dial *400# from registered cell quantity

Charges

There are not any costs whereas loading cash by means of debit card or internet banking. However, 1% of the transaction quantity, relevant on loading pockets by way of bank card, primarily based on transaction sample of most (most is bigger than 90% utilization) spend solely on the web card.

Besides, transferring cash out of your pockets(full KYC Only) to the financial institution, you can be charged 3% of the transaction quantity.

How to boost a criticism

You can contact buyer care from the registered cell quantity at 400 (Airtel prospects) or 8800688006 (all prospects), or go to the closest Airtel Payments Bank Banking Point.

Subscribe to Mint Newsletters * Enter a sound e mail * Thank you for subscribing to our e-newsletter.

April 19, 2021