Read this week in our update- Reserve Bank of India (RBI) announces Digital Payment Index for September 2021 and issues regulations under the recently amended Factoring Regulation Act, 2011
Highlights of the Week:
RBI announces Digital Payments Index for September 2021
RBI issues regulations under the amended Factoring Regulation Act, 2011
Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s 1267/1989 ISIL (Da'esh) and Al-Qaida Sanctions List
The Reserve Bank of India (RBI) had announced the creation of a composite Reserve Bank of India – Digital Payments Index (RBI-DPI) on January 01, 2021 to capture the extent of digitization of payments across the country. The latest RBI-DPI for September 2021 stands at 304.06 as against 270.59 for March 2021. This difference in RBI-DPI highlights considerable rise in digital payment uptake and penetration across the country.[1]
RBI has notified the deletion of 3 (three) entrants from United Nations Security Council’s (UNSC) 1267/ 1989 ISIL (Da'esh) and Al-Qaida sanctions list. The deleted entries are: [2]
Al-Haramain Islamic Foundation (Bosnia and Herzegovina);
Al-Haramain Islamic Foundation (Somalia); and
Al-Haramain Foundation (Indonesia)
RBI has issued the following regulations after the amendment of the Factoring Regulation Act, 2011 (Act):
· Registration of Factors (Reserve Bank) Regulations, 2022, that prescribes the manner of granting certificate of registration (CoR) to companies which propose to do factoring business; and
· Registration of Assignment of Receivables (Reserve Bank) Regulations, 2022, which shall permit and prescribe the manner for Trade Receivables Discounting System (TReDS) to file the particulars of assignment of receivable transactions with the Central Registry on behalf of the factors for operational efficiency.
Under the issued regulations, all existing non-deposit taking non-banking finance companies- Investment and Credit Companies (NBFC-ICCs) with asset size of INR 1,000 Crore (Indian Rupees One Thousand Crores Only) and above shall be permitted to undertake factoring business subject to satisfaction of prescribed conditions.[3]
1.4 RBI penalizes Co-operative Bank of Rajkot Ltd., Rajkot, Gujarat
RBI has imposed INR 4 (four) lakhs monetary penalty on Co-operative Bank of Rajkot Ltd., Rajkot, Gujarat[4] for contravention of/ non-compliance with directions issued by RBI on ‘Loans and advances to directors, relatives and firms/ concerns in which they are interested’.
[1] Press Release: 2021-2022/1568, Reserve Bank of India, January 19, 2022 [2] RBI/2021-22/152DOR.AML.REC.82/14.06.001/2021-22, Reserve Bank of India, January 19, 2022 [3] Press Release: 2021-2022/1576, Reserve Bank of India, January 20, 2022 [4] Press Release: 2021-2022/1559, Reserve Bank of India, January 17, 2022