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AKP Banking & Finance Digest - August 08, 2022

Updated: Sep 22

1.1. RBI releases financial inclusion index for March 2022

Reserve Bank of India (“RBI”) has constructed a composite financial inclusion index (“FI-Index”) in order to record the extent of financial inclusion in the country. The FI Index for March 2022 is 56.4 (Fifty-Six point Four) compared to the last years index at 53.9 (Fifty-Three point Nine) in March 2021. The FI Index observes growth across all the sub-indices such as ease of access, availability and usage of services, and quality of services.[1]


1.2. RBI changes rate under Liquidity Adjustment Facility

RBI has announced that the monetary policy committee (MPC) has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points. The existing repo rate of 4.90% is now increased to 5.40% with immediate effect. Accordingly, the standing deposit facility (SDF) rate has now adjusted to 5.15% while the marginal standing facility (MSF) rate stand adjusted to 5.65% with immediate effect[2].


1.3. RBI releases Master Circular on Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)

RBI has released a master circular on Credit Facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs), 2022 consolidating the previous master circulars regulating lending to SC/ STs. The circular shall be applicable on all scheduled commercial banks including small finance banks and specifies the measures that are to be undertaken by banks to improve their advances to SCs/STs.[3]


1.4. RBI releases Master Circular on Credit Facilities to Minority Communities

RBI has released a master circular on providing credit facilities to minority communities by consolidating all the previous circulars issued till date with respect to the subject matter.[4]


1.5. RBI issued directions to Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra

RBI has extended the directions issued to Babaji Date Mahila Sahakari Bank Limited, Yavatmal, Maharashtra for a period of three (03) months from August 9, 2022 to November 8, 2022[5].


1.6. RBI amended the Gold Monetization Scheme, 2015

RBI has amended the Gold Monetization Scheme (“GMS”), 2015. The circular has inserted new guidelines for renewal/redemption of Medium and Long-Term Government Deposit (“MLTGD”)[6].


1.7. RBI extends Integrated Ombudsman Scheme, 2021 (RBIOS, 2021) to CICs

RBI has amended the Integrated Ombudsman Scheme, 2021 (“RBIOS, 2021”). The circular has amended the applicability of the scheme and has extended its applicability to Credit Information Companies (“CICs”) to the extent not specifically excluded under the Scheme. The amendment shall come into force from September 1, 2022[7].


1.8. RBI imposes monetary penalty on the Regulated Entities ("RE")


S. No.

Name of The Entity

Penalty

Reason

01

Indian Bank[8]

INR 32,00,000 (Indian Rupees thirty-two lakhs only)

for non-compliance with certain provisions of Reserve Bank of India (Fraud classification and reporting by commercial banks and select FIs) Directions 2016.

02

Jupiter Capital Private Limited, Bengaluru[9]

INR 81,92,000 (Indian Rupees eighty-one lakh and ninety-two thousand only)

for non-compliance with certain provisions of the directions issued by RBI contained in the ‘Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016’ and RBI directions on Membership of Credit Information Companies (“CICs”)



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: 2022-2023/635, Reserve Bank of India, August 02, 2022. [2] RBI/2022-23/101 FMOD.MAOG.No.146/01.01.001/2022-23, Reserve Bank of India, August 05, 2022. [3] RBI/2022-2023/97 FIDD.CO.GSSD.BC.No.10/09.09.001/2022-23, Reserve Bank of India, August 01, 2022. [4] RBI/2022-23/99 FIDD.GSSD.BC.No.11/09.10.001/2022-23, Reserve Bank of India, August 02, 2022. [5] Press Release: 2022-2023/664, Reserve Bank of India, August 05, 2022. [6] RBI/2022-23/100 DoR.AUT.REC.58/23.67.001/2022-23, Reserve Bank of India, August 04, 2022. [7] Ref.CEPD.PRD. No. S544/13.01.001/2022-23, Reserve Bank of India, August 05, 2022. [8] Press Release: 2022-2023/659, Reserve Bank of India, August 05, 2022. [9] Press Release: 2022-2023/660, Reserve Bank of India, August 05, 2022.

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