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AKP Banking & Finance Digest - August 01, 2022

Updated: Sep 22

1. RBI releases Digital Payments Index for March 2022

The Reserve Bank of India (RBI) has released the Reserve Bank of India- Digital Payments Index (RBI – DPI) for March 2022. The index aims to evaluate the extent of digitization in the payment landscape of the country. The index for March 2022 stood at 349.30 compared to 304.06 for September 2021 with March 2018 as the base month. This increased index is an indication of significant growth in the speed of adoption and penetration of digital payments in the nation.[1]


2. RBI issued directions to Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P).

RBI has extended the directions issued to the Indian Mercantile Co-operative Bank Ltd., Lucknow (U.P) for a period of three (03) months from July 28, 2022 to October 27, 2022[2].


3. RBI issued directions to Co-operative Banks.

RBI issued directions to the following Co-operative Banks-


S. No.

Name of the Co-operative Bank

Sanctions Imposed

Permissible Withdrawal Limit (savings or/ and current account)

1

Anjangaon Surji Nagari Sahakari Bank Ltd., Amravati[3]

The bank shall not grant/renew any loans, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except with the prior approval of the RBI.

INR 1,50,000 (Indian Rupees one lakh and fifty thousand only).

2.

Lucknow Urban Co-operative Bank Ltd., Lucknow (U.P.)[4]

The bank shall not grant/renew any loans, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except with the prior approval of the RBI.

INR 30,000 (Indian Rupees thirty thousand only).

3.

Urban Co-operative Bank Limited, Sitapur[5]

The bank shall not grant/renew any loans, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except with the prior approval of the RBI.

INR 50,000 (Indian Rupees fifty thousand only).

4.

Jaiprakash Narayan Nagari Sahakari Bank Ltd., Basmatnagar[6]

The bank shall not grant/renew any loans, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except with the prior approval of the RBI.

No withdrawal is allowed but loans can be set off against deposits.

5.

The Karmala Urban Co-operative Bank Ltd., Solapur[7]

The bank shall not grant/renew any loans, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except with the prior approval of the RBI.

INR 10,000 (Indian Rupees ten thousand only).

6.

​Durga Co-operative Urban Bank Ltd., Vijayawada[8]

The bank shall not grant/renew any loans, make any investment, incur any liability including borrowing of funds and acceptance of fresh deposits, disburse or agree to disburse any payment, enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except with the prior approval of the RBI.

INR 1,50,000 (Indian Rupees one lakh and fifty thousand only).


4. RBI penalizes various Co-Operative Banks

RBI has imposed monetary penalty on:


Name of the Entity

Penalty Imposed

Reason

INR 50,000 (Indian Rupees fifty thousand only).

Non-compliance with Know Your Customer (KYC) directions, 2016 issued by RBI.

INR 50,000 (Indian Rupees fifty thousand only).

Non-compliance with Know Your Customer (KYC) directions, 2016 issued by RBI.

The Moirang Primary Co-operative Bank Ltd., Moirang (Manipur)[11]

INR 1,00,000 (Indian Rupees one lakh only)

Non-compliance with Know Your Customer (KYC) directions, 2016 issued by RBI.

INR 50,000 (Indian Rupees fifty thousand only)

Non-compliance with Know Your Customer (KYC) directions, 2016 issued by RBI.

INR 45,00,000 (Indian Rupees forty-five lakh only)

Non-compliance with the directions issued by RBI on ‘Frauds monitoring and reporting mechanism’ and ‘Maintenance of Deposit Accounts’.

INR 2,00,000 (Indian Rupees two lakh only)

contravention of/ non-compliance with the directions issued by RBI on Know Your Customer (KYC)

Jila Sahakari Kendriya Bank Maryadit, Rajnandgaon (C.G.)[15]

INR 3,00,000 (Indian Rupees three lakh only)

contravention of/ non-compliance with the provisions of the Banking Regulation Act, 1949 (the Act) and directions issued by the Reserve Bank of India (RBI) on Know Your Customer (KYC).

Disclaimer

The note is prepared for knowledge dissemination and does not constitute legal, financial or commercial advice. AK & Partners or its associates are not responsible for any action taken based on its contents.

For further queries or details you may contact:

Mr. Anuroop Omkar,

Partner, AK & Partners

anuroop@akandpartners.in

[1] Press Release: 2022-2023/602, Reserve Bank of India, July 27, 2022. [2] Press Release: 2022-2023/600, Reserve Bank of India, July 27, 2022. [3] Press Release: 2022-2023/614, Reserve Bank of India, July 28, 2022. [4] Press Release: 2022-2023/612, Reserve Bank of India, July 28, 2022. [5] Press Release: 2022-2023/613, Reserve Bank of India, July 28, 2022. [6] Press Release: 2022-2023/626, Reserve Bank of India, July 29, 2022. [7] Press Release: 2022-2023/625, Reserve Bank of India, July 29, 2022. [8] Press Release: 2022-2023/628, Reserve Bank of India, July 29, 2022. [9] Press Release: 2022-2023/608, Reserve Bank of India, July 28, 2022. [10] Press Release: 2022-2023/610, Reserve Bank of India, July 27, 2022. [11] Press Release: 2022-2023/609, Reserve Bank of India, July 27, 2022. [12] Press Release: 2022-2023/611, Reserve Bank of India, July 27, 2022. [13] Press Release: 2022-2023/589, Reserve Bank of India, July 25, 2022. [14] Press Release: 2022-2023/588, Reserve Bank of India, July 25, 2022. [15] Press Release: 2022-2023/587, Reserve Bank of India, July 25, 2022.

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