top of page
  • Writer's pictureAK & Partners

AKP Banking & Finance Digest- May 29, 2023

Updated: May 30, 2023

Weekly Round-up | Updates

1. Regulatory Updates

1.1. India

1.1.1. Reserve Bank of India (RBI) approves voluntary amalgamation of Maratha Sahakari Bank Ltd., Mumbai (Maharashtra) with Cosmos Co-operative Bank Limited, Pune (Maharashtra)

RBI has sanctioned the scheme of amalgamation of Maratha Sahakari Bank Ltd., Mumbai, Maharashtra with Cosmos Co-operative Bank Limited, Pune, Maharashtra in the exercise of the powers conferred to it under Section 44A (4) read with Section 56 of the Banking Regulation Act, 1949, to come into effect from May 29, 2023. Branches of Maratha Sahakari Bank Ltd., Mumbai shall now function as branches of the Cosmos Co-operative Bank Ltd., Pune. RBI

1.1.2. RBI cancels certificate of registration of New Link Overseas Finance Limited

RBI has cancelled the certificate of registration of New Link Overseas Finance Limited under Section 45-IA (6) of the Reserve Bank of India Act, 1934, and prohibited the company from transacting the business of a non-banking financial institution (NBFC). RBI

1.1.3. 19 NBFCs surrender their Certificates of Registration to the RBI

RBI has cancelled the Certificate of Registration (CoR) of 19 NBFCs under Section 45-IA of the Reserve Bank of India Act, 1934 after they surrendered the same because of the following reasons:

  • 13 NBFCs exit from the Non–Banking Financial Institution (NBFI) business.

  • 3 met the criteria for unregistered Core Investment Companies (CIC) that do not require registration.

  • 3 ceased to be legal entities due to amalgamation/merger/dissolution/voluntary strike–off, etc. RBI

1.1.4. RBI designates Senior Officer as Nodal Officer for policy issues related to Primary (Urban) Co-operative Banks (UCBs)

RBI has decided to designate the Chief General Manager, Department of Regulation as a nodal point of contact to interface with the UCBs and other concerned entities on sector-level matters to bring about closer coordination. RBI

1.2. Monetary Penalties

1.2.1. RBI imposed monetary penalties on the following financial entities-

Name of the entity

Penalty Imposed


​INR 84.50 lakh (Rupees Eighty-four lakh fifty thousand only)

​Non-compliance with certain provisions of ‘Reserve Bank of India (Frauds classification and reporting by commercial banks and select FIs) directions 2016’ and ‘Master Circular on Customer Service in Banks’.

INR 1 lakh (Rupees One lakh only)

​Contravention of directions issued by RBI on Maintenance of Deposit Accounts as there were deficiencies in regulatory compliances by the bank.

INR 1 lakh (Rupees One lakh only)

​Contravention of directions issued by RBI on Maintenance of Deposit Accounts as there were deficiencies in regulatory compliances by the bank.

INR 4 lakh (Rupees Four lakh only)

Non-compliance with directions issued by RI vide ‘Master Direction – Non-Banking Financial Company-Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016’ related to Standard Asset Provisioning and Leverage Ratio.

INR 2 lakh (Rupees Two lakh only)

​Non-compliance with RBI directions with respect to the requirement of obtaining prior approval from RBI in cases of acquisition/transfer of control of Non-Banking Financial Companies (NBFCs) as applicable to Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company.

INR 7.50 lakh (Rupees Seven lakh fifty thousand only)

Non-compliance with directions issued by RBI on the transfer of eligible funds to the Depositor Education and Awareness Fund (DEA Fund) constituted as per Section 26A read with Section 56 of the Banking Regulation Act, 1949 and for non-adherence with ‘Know Your Customer (KYC) Direction, 2016’.

1.3. Bangladesh

1.3.1. Bangladesh Bank issues instructions on the classification of assets and reservation of provisions

Bangladesh Bank has issued instructions on the classification of assets, reservation of provisions in listed and unlisted companies, and investment and maintenance of provisions against said investments. Modifications have also been made in certain circulars and circular letters regarding the maintenance of provisions against investments in listed and unlisted shares, bond/debentures and mutual funds. Bangladesh Bank

1.3.2. Bangladesh Bank issues circular regarding the identification of public limited companies

Under Section 18(g) of the Financial Institutions Act, 1983, financial institutions are advised to insert the words “public limited company” or “PLC” at the end of their names and to amend their Articles of Association to comply with the same. Bangladesh Bank

1.4. Nepal

1.4.1. Nepal Rastra Bank amends integrated instructions issued to licensed Microfinance Financial Institutions of the “D” category

Under Section 79 of the Nepal Rastra Bank Act, 2058 (2002) the integrated instructions issued by the bank to “D” category licensed microfinance financial institutions have been amended. Nepal Rastra Bank

1.5. Mauritius

1.5.1. Bank of Mauritius invites bids for the construction of the Bank of Mauritius

Bank of Mauritius has invited sealed bids from qualified firms to provide Quantity Surveying/Cost Management Consultancy Services for the construction of the Bank of Mauritius Rodrigues House. Bank of Mauritius

2. Trends

2.1. Shriram Finance plans to offer loans for upskilling courses

Shriram Finance has planned to diversify its portfolio to include education loans on upskilling courses. The non-banking financial company (“NBFC”) is known for financing two-wheeler and micro, small, and medium enterprises (“MSME”) loans. Mint

2.2. India’s PhonePe secures another USD 100 million from General Atlantic

PhonePe has secured an additional USD 100 million (United States Dollar One Hundred Million only) from existing backer General Atlantic to raise USD 1 billion (United States Dollar One Billion only) in funding. PhonePe has raised a total of USD 850 million (United States Dollar Eight Hundred Fifty only) of capital in the current round. Fintech Futures

2.3. Westbridge and Shelter Finance aim INR 2000 Cr IPO picks three I-bankers

Westbridge Capital and Nexus Venture Partner backed India Shelter Finance has geared up to launch an initial public offer (IPO) to raise around INR 2,000 crore (Indian Rupee Two Thousand Crore only). Money Control

2.4. Axis Bank launches digital onboarding platform for point-of-sale terminals

Axis Bank has launched ‘Sarathi’, a digital onboarding platform aimed at simplifying the process for merchants to adopt Electronic Data Capture (EDC) or Point of Sale (PoS) terminals. This shall eliminate the need for lengthy paperwork and offer merchants a streamlined and hassle–free experience, enabling them to accept digital payments efficiently. Axis Bank

2.5. HDFC Asset Management Company (HDFC AMC) receives SEBI approval to change control

HDFC AMC has received approval from the SEBI for a change in its control on account of the amalgamation of HDFC Ltd. and HDFC Bank Ltd. After the merger, existing shareholders of HDFC will own 41 per cent of the bank. On the other hand, HDFC Bank will be 100 per cent owned by public shareholders. Business Standard

3. Sector Overview

4. Business Updates

4.1. Google Pay launches RuPay credit cards support on UPI in India

Google Pay, in collaboration with the National Payments Corporation of India (“NPCI”), rolled out support for RuPay credit cards on the Unified Payments Interface (“UPI”). This move shall now allow UPI users to link their RuPay credit cards to Google Pay and pay at all online and offline shops that accept RuPay credit cards. The functionality is currently accessible to RuPay credit card customers of Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, Indian Bank, Kotak Mahindra Bank, Punjab National Bank, and Union Bank of India. The Economic Times

4.2. Paytm partners with State Bank of India (SBI) Card, NPCI to launch next-gen co-branded RuPay credit cards

Payments and financial services company Paytm has announced a collaboration with SBI Card to launch the Paytm SBI Card on the RuPay network. The relationship between Paytm and SBI Card, which began in 2020, is now being expanded with the addition of NPCI’s RuPay, as the three home-grown companies join forces to accelerate the expansion of inclusive, digital-first financial services in the nation. Outlook

4.3. Fintech startups push for decentralized KYC regime

Fintech startups are advocating for a decentralized Know Your Customer (KYC) system as the Reserve Bank of India recognizes the centralized Know Your Customer Registry (c-KYCR) as a risky data validation source. These startups aim to improve the quality of data by utilizing blockchain technology and creating decentralized identification platforms. Key players in the tech industry such as Tata Consultancy Services, Wipro, and IBM have already developed such platforms. The Economic Times

4.4. Paytm Money launches bond investing on its platform

Paytm Money has launched bond investing on its platform for retail investors in an attempt to simplify debt investing for individuals. Investors can invest in three types of bonds – government, corporate and tax – free on Paytm Money. Information related to coupon v. yield, clean price v. dirty price etc. can all be found on one dashboard on the Paytm Money app. The Economic Times


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 content

For further queries or details, you may contact:

Mr Anuroop Omkar,

Partner, AK & Partners


bottom of page