• AK & Partners

AKP Banking & Finance Digest- February 07, 2022

Read this week in our update- RBI cautions the public against unauthorized forex trading platforms and cancels the license of Independence Co-operative Bank Limited, Nashik, Maharashtra.

Highlights of the Week:
RBI Cautions Against Unauthorized Forex Trading Platforms
RBI cancels the license of Independence Co-operative Bank Limited, Nashik, Maharashtra

1.1 RBI Cautions Against Unauthorized Forex Trading Platforms

The Reserve Bank of India (RBI) has observed misleading advertising of unlicensed electronic trading platforms (ETPs) offering forex trading services to Indian residents, including on social media platforms, search engines, over-the-top (OTT) platforms, gaming apps, and other similar platforms. Further, such unlicensed ETPs/portals have been accused of committing fraud, with many citizens losing money as a result of such trading/schemes. Hence, RBI has cautioned the public against undertaking forex transactions on unregistered ETPs or remitting/depositing funds for such transactions. Additionally, RBI website has a list of authorized ETPs.[1]


1.2 RBI cancels the license of Independence Co-operative Bank Limited, Nashik, Maharashtra

RBI has canceled the license of Independence Co-operative Bank Ltd. (ICBL), Nashik, Maharashtra. As a result, ICBL shall cease to conduct banking activity on February 3, 2022. The Maharashtra Commissioner for Cooperation and Registrar of Cooperative Societies has also been asked to issue an order for the bank's winding up and the appointment of a liquidator.[2]



1.3 RBI penalizes banks

RBI has imposed monetary penalty on:

Sl. No.

Name of the Bank

Penalty Imposed (in INR)

​Reason

1.

Navbharat Co-operative Urban Bank Ltd., Hyderabad, Telengana[3]

​12 (twelve) lakhs

Contravention of/non-compliance with (i) directions issued under Supervisory Action Framework, (ii) directions relating to Basic Cybersecurity Framework, and (iii) requirements on IS Audit and Internal Audit Compliance.

​2.

Dharamvir Sambhaji Urban Co-operative Bank Ltd., Pune[4]

​1 (one) lakh

Contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs.

​3.

National Co-operative Bank Ltd., Mumbai[5]

​2 (two) lakhs

Contravention of/non-compliance with the directions issued by RBI on Know Your Customers (KYC) Directions, 2016.

​4.

Hutatma Sahakari Bank Ltd., Walwa, Sangli[6]

​2 (two) lakhs

Contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs.

[1] Press Release: 2021-2022/1660, Reserve Bank of India, February 03, 2022 [2] Press Release: 2021-2022/1662, Reserve Bank of India, February 03, 2022

[3] Press Release: 2021-2022/1640, Reserve Bank of India, January 31, 2022

[4] Press Release: 2021-2022/1643, Reserve Bank of India, January 31, 2022

[5] Press Release: 2021-2022/1644, Reserve Bank of India, January 31, 2022

[6] Press Release: 2021-2022/1645, Reserve Bank of India, January 31, 2022


21 views0 comments

Recent Posts

See All

1. INDIA 1.1 RBI releases Statement on Developmental and Regulatory Policies The Reserve Bank of India (RBI) has released the Statement on Developmental and Regulatory Policies. Under the policy measu

INDIA 1.1. RBI announces rate of interest on Government of India Floating Rate Bond 2033 RBI has announced the rate of interest on Government of India Floating Rate Bond 2033 (“GOI FRB 2033”) which sh