• AK & Partners

AKP Banking & Finance Digest- March 15, 2022

Updated: Sep 22

Read in this week's update, Paytm Payments Banks Ltd. was banned from onboarding new customers by RBI. RBI press release notifies the establishment of the National Bank for Financing Infrastructure and Development as a Development Financial Institution

Highlights of the Week:
RBI bans Paytm Payments Bank Ltd. from onboarding new customers
RBI launches UPI for feature phones and 24x7 helpline for digital payments
RBI clarifies on the mode of receipt of complaints under Reserve Bank – Integrated Ombudsman Scheme 2021
RBI notifies establishment of National Bank for Financing Infrastructure and Development



1. Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s Sanction List

The Reserve Bank of India (RBI) has notified the deletion of 2 (two) entrants from United Nations Security Council’s (UNSC) 1267/ 1989 ISIL (Da'esh) and Al-Qaida sanctions list. The deleted entries are:[1]

  • Abd-al-Malik Muhammad Yusif Uthman Abd-al-Salam; and

  • Naif Saleh Salem al Qaisi.

2. RBI launches UPI for feature phones and 24x7 helpline for digital payments

RBI has launched the following initiatives which are effective from March 08, 2022:[2]

  • UPI123Pay- an app that shall make available Unified Interface Payments (UPI) payments for feature phone users; and

  • DigiSaathi- a 24x7 helpline to address the queries of digital payment users across digital payment products and services.


3. RBI clarifies on the mode of receipt of complaints under Reserve Bank – Integrated Ombudsman Scheme 2021

RBI has clarified that it does not have an arrangement with any entity that shall help people to get their grievances with regulated entities redressed earlier for a fee. Under the Reserve Bank – Integrated Ombudsman Scheme 2021, RBI has established a cost-free grievance redress process that does not need payment of any fees or charges.[3]

4. RBI notifies establishment of National Bank for Financing Infrastructure and Development

RBI has issued a press release notifying the establishment of the National Bank for Financing Infrastructure and Development as a Development Financial Institution (DFI) to support the development of long-term infrastructure financing in India and shall be regulated and supervised as the fifth All India Financial Institution (AIFI) by RBI. [4]



5. Implementation of Section 51A of UAPA, 1967: Update to UNSC’s Sanction List RBI has notified the addition of Khatiba al-Tawhid wal-Jihad organization to United Nations Security Council’s (UNSC) 1267/ 1989 ISIL (Da'esh) and Al-Qaida sanctions list.[5]



6. RBI bans Paytm Payments Bank Ltd. from onboarding new customers

RBI has directed Paytm Payments Bank Ltd. (Paytm) to stop onboarding new customers. Paytm has also been directed to hire information technology (IT) auditing firm to undertake a full system audit of the IT system. Further, Paytm shall be required to obtain explicit approval from RBI after examining the IT auditor's report before onboarding new customers.[6]


7. RBI penalizes LivQuik Technology (India) Private Limited

RBI has imposed monetary penalty on:

Name of the Payment System Operator

Penalty Imposed (in INR)

Reason

LivQuik Technology (India) Private Limited[7]

14,83,000 (Indian Rupees Fourteen Lakhs Eighty-Three Thousand Only)

Contravention of / non-compliance with certain provisions of the Master Direction on Issuance and Operation of Prepaid Payment Instruments dated October 11, 2017 (updated as on November 17, 2020).


8. RBI penalizes M.L. Securities and Finance Private Limited, Indore (M.P)

RBI has imposed monetary penalty on:

Name of the Non-Banking Financial Company

Penalty Imposed (in INR)

Reason

M.L. Securities and Finance Private Limited, Indore (M.P)[8]

​2,50,000 (Indian Rupees Two Lakh Fifty Thousand Only)

Contravention of / non-compliance with certain provisions of the directions issued by RBI on the classification of non-performing assets contained in ‘Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016’.





[1] RBI/2021-22/178DOR.AML.REC.91/14.06.001/2021-22, Reserve Bank of India, March 08, 2022

[2] Press Release: 2021-2022/1830, Reserve Bank of India, March 08, 2022

[3] Press Release: 2021-2022/1836, Reserve Bank of India, March 09, 2022

[4] Press Release: 2021-2022/1837, Reserve Bank of India, March 09, 2022

[5] RBI/2021-2022/183 DOR.AML.REC.94/14.06.001/2021-22, Reserve Bank of India, March 10, 2022

[6] Press Release: 2021-2022/1850, Reserve Bank of India, March 11, 2022

[7] Press Release: 2021-2022/1826, Reserve Bank of India, March 07, 2022

[8] Press Release: 2021-2022/1826, Reserve Bank of India, March 11, 2022

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