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AKP Banking & Finance Digest- January 31, 2022

Read this week in our update- RBI notifies the sanctioning of amalgamation between Punjab and Maharashtra Co-operative Bank Ltd. and Unity Small Finance Bank Ltd. and cautions members of the public about cyber threats and frauds.

Highlights of the Week:
Punjab and Maharashtra Co-operative Bank Ltd. branches to operate as Unity Small Finance Bank Ltd. branches
Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s Sanctions List
RBI Cautions Public About Cyber Threats and Frauds

1.1 Punjab and Maharashtra Co-operative Bank Ltd. branches to operate as Unity Small Finance Bank Ltd. branches

The Reserve Bank of India (RBI) has notified the sanctioning of amalgamation between Punjab and Maharashtra Co-operative Bank Ltd. (PMC Bank) and Unity Small Finance Bank Ltd. (USFBL) by the Government of India. Subsequent to the amalgamation, all the branches of the PMC Bank shall function as branches of USFBL with effect from January 25, 2022.[1]


1.2 Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s Sanctions List

RBI has notified the deletion of 1 (one) entrant from the United Nations Security Council’s (UNSC) 1267/ 1989 ISIL (Da'esh) and Al-Qaida sanctions list. The deleted entry is Khalil Ben Ahmed Ben Mohamed Jarraya.[2]


1.3 RBI Cautions Public About Cyber Threats and Frauds

RBI has issued a press release cautioning members of the public to be cautious of fraudulent messages, bogus calls, unknown links, false notifications, unauthorized QR codes, and other scams that promise to help people get concessions or speed up responses from banks and financial service providers in any way. Further, RBI encourages people to practice safe digital banking by taking all necessary safeguards when doing any digital (online/mobile) banking/payment operations.[3]


1.4 RBI penalizes banks

RBI has imposed monetary penalty on:

Sl. No.

Name of the Bank

Penalty Imposed (in INR)

​Reason

1.

Jodhpur Nagrik Sahakari Bank Ltd., Jodhpur[4]

​1 (one) lakh

​Contravention of/non-compliance with certain directions issued by RBI contained in the Master Circular DCBR.CO.BPD. (PCB) MC No.13/13.05.000/2015-16 dated July 01, 2015 on ‘Exposure Norms and Statutory / Other Restrictions – UCBs’.

​2.

Jammu Central Co-operative Bank Ltd., Jammu[5]

​1 (one) lakh

Contravention of/non-compliance with provisions of Section 6 and Section 9 read with Section 56 of the Banking Regulation Act, 1949 (the Act).

​3.

M/s Bhadradri Co-operative Urban Bank Ltd., Khammam, Telangana[6]

​2 (two) lakhs

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

​4.

Associate Co-operative Bank Ltd., Surat (Gujarat)[7]

​4 (four) lakhs

Contravention of/non-compliance with directions issued by RBI on ‘Loans and advances to directors, relatives and firms / concerns in which they are interested’, and non-compliance with the Master Directions on ‘Know Your Customer (KYC)’.

​5.

Mogaveera Co-operative Bank Ltd., Mumbai[8]

2 (two) lakhs

Contravention of/non-compliance withdirections contained in the Supervisory Action Framework (SAF) issued to the bank and Know Your Customers (KYC) Directions, 2016 (as updated from time to time) issued by RBI under section 36 (1) and section 35 A read with section 56 of the Act.

​6.

Vasai Janata Sahakari Bank Ltd., Dist. Palghar[9]

2 (two) lakhs

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

​7.

Rajkot Peoples Co-operative Bank Ltd., Rajkot (Gujarat)[10]

1 (one) lakh

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: 2021-2022/1616, Reserve Bank of India, January 25, 2022 [2] RBI/2021-22/153 DOR.AML.REC.83/14.06.001/2021-22, Reserve Bank of India, January 27, 2022 [3] Press Release: 2021-2022/1630, Reserve Bank of India, January 28, 2022 [4] Press Release: 2021-2022/1597, Reserve Bank of India, January 24, 2021

[5] Press Release: 2021-2022/1598, Reserve Bank of India, January 24, 2021

[6] Press Release: 2021-2022/1603, Reserve Bank of India, January 24, 2021

[7] Press Release: 2021-2022/1605, Reserve Bank of India, January 24, 2021

[8] Press Release: 2021-2022/1609, Reserve Bank of India, January 24, 2021

[9] Press Release: 2021-2022/1608, Reserve Bank of India, January 24, 2021

[10] Press Release: 2021-2022/1607, Reserve Bank of India, January 24, 2021

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