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AKP Banking & Finance Digest- May 8, 2023

Weekly Round-up | Updates


Reserve Bank of India (RBI) decided to amend the Master Direction on KYC to update the instructions on Wire Transfer which is specified in Section 64 of the Master Directions (MD) on KYC, also aligning the same with the relevant FATF Recommendation. Further, definitions of the relevant terms used in the amended Wire Transfer instructions are being added in Section 2 of the MD on KYC.[1]

1.2. RBI imposed penalties on various banks

Name of the Entity

Penalty Imposed


₹4.10 lakh (Rupees Four Lakh and Ten Thousand only)

Non-compliance with section 26 A (2) of the Banking Regulation Act, 1949 read with paragraph 3 of The Depositor Education and Awareness Fund Scheme 2014, the Reserve Bank of India (KYC) Directions, 2016, and provisions of the Credit Information Companies (Regulation) Act, 2005.

₹10.00 lakh (Rupees Ten Lakh only)

Contravention of directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’ and ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)

₹10.00 lakh (Rupees Ten Lakh only)

Contravention of section 35A and section 36 (1) (a) read with section 56 of the Banking Regulation Act, 1949

₹1.00 lakh (Rupees One lakh only)

Contravention of directions issued by RBI on Maintenance of Deposit Accounts

₹30,000/- (Rupees Thirty thousand only)

Contravention of RBI directions to Urban Cooperative Banks on (i) ‘Exposure Norms and Statutory/Other Restrictions-UCBs’ and (ii) Know Your Customer (KYC) Directions, 2016

₹1.00 lakh (Rupees One lakh only)

Contravention of/ non-compliance with the directions issued by the RBI to Urban Co-operative Banks on Know Your Customer (KYC)

₹2.00 lakh (Rupees two lakh only)

​Non-compliance with the directions issued by RBI on ‘Know Your Customers’(KYC).

₹4.50 lakh (Rupees Four lakh and fifty Thousand only)

Contravention of specific directions issued to the bank by the RBI under Supervisory Action Framework in terms of section 36(1) read with section 56 of the Banking Regulation Act, 1949 (the Act), RBI Directions on Exposure Norms & Statutory/Other Restrictions-UCBs and Know Your Customer (KYC).

RBI has released the Report on Currency and Finance (RCF) for the year 2022-23 today. The main highlights of this report are- (i) It covers four major dimensions of climate change to assess future challenges such as climate change. (ii) India has embarked on a targeted and time-bound climate action plan to reduce carbon emissions and is currently ranked the best amongst G-20 countries as per the Climate Change Performance Index,2023. (iii) There is a need for accelerated reduction in the energy intensity of GDP by around 5 % annually and an improvement in its energy mix in favour of renewable to around 80% by 2070-71 for India to achieve the net zero target by 2070.(iv) India’s green financing requirement is estimated to be at least 2.5 per cent of GDP annually till 2030. (v) A balanced policy intervention with progress ensured across all policy levers will enable India to achieve its green transition targets by 2030, making the net zero goal by 2070 attainable.[10]

RBI announced that the rate of interest on the Government of India Floating Rate Bond 2024 (FRB 2024) applicable for the half year May 07, 2023, to November 06, 2023, shall be 6.97 per cent per annum.[11]

Under India’s G20 Presidency, the RBI and the BIS Innovation Hub (BISIH) of the Bank for International Settlements have jointly launched the fourth edition of the G20 TechSprint. RBI and BIS invite global innovators to help develop innovative technology solutions for cross-border payments. The competition is open to developers worldwide for submitting applications from May 04, 2023, to June 04, 2023, and the TechSprint will conclude around August/ September 2023. The detailed problem statement can be accessed at: The TechSprint aims to showcase how technology solutions can address illicit financing risks, provide settlement solutions in other currencies and achieve interoperability in multi-lateral CBDC platforms.

BharatPe has acquired a 51% (fifty-one per cent) stake in Trillion Loans NBFC based in Mumbai. Bharat Pe shall be nominating retired State Bank of India executive Ravindra Pandey and senior executives Nalin Negi and Sabyasachi Senapati to the Trillion Loans’ board. Trillion Loans offers secured and unsecured loans to small enterprises, including small business and working capital loans.[12]

Indian-American businessman Ajay Banga has been appointed as the head of the World Bank. He shall be replacing outgoing World Bank Chief David Malpass. Banga was the sole contender for the post after being nominated by American President Joe Biden.[13]

One97 Communications, a parent company of fintech platform PayTM, reported a 51 per cent jump in revenue from operations at Rs 2,334 crore in Q4FY23 on an annual basis. The overall revenue in FY23 increased 61 per cent to Rs 7,990 crore. The company significantly brought down its net loss in the March quarter to Rs 168 crore from Rs 761 crore a year ago, and Rs 392 crore in Q3FY23.[14]

GetVantage is an RBF start-up and is the first of its type to secure a non-banking finance company (NBFC) license from RBI. The lending operations will be managed by GetGrowth Capital i.e. the NBFC arm of GetVantage which is backed by several investors including Chiratae Ventures, Varanium, InCred, DMI, and Sony which will capitalise the NBFC with Rs. 50 crore and aims to raise a cumulative amount of Rs. 200 crores to scale its lending operations.[15]


According to the prospectus published by this department dated 20th December 2020 and 31st May 2021 respectively, against the project entitled “Safe water supply in the country”. (Eight Thousand) crores of 30 years Bangladesh Government Investment Sukuk (Lease Suruk) was issued and was tradable only at face value. Presently, the Suruk can be bought and sold in the secondary market at par after one-third of the project is implemented as per the conditions stated in the document.[16]


The Bank of Mauritius Intervened in the domestic foreign exchange market and sold a total amount of USD 10 million at the rate of Rs 45.25/USD.[17]


The meeting was chaired by the Governor of the State Bank of Pakistan, Mr Jameel Ahmad. He confronted various challenges and difficulties faced by the SAARC region. The State Bank of Pakistan (SBP) presented a study on the use of unconventional policy instruments by South Asian Central Banks, and Nepal Rastra Bank presented a study on the prospects of Central Bank Digital Currency (CBDC) in the SAARC REGION.[18]

[1]Notification: RBI/2023-24/25, May 4th 2023, Reserve Bank of India

[2]Press Release: 2023-2024/158, May 2nd 2023, Reserve Bank of India

[3]Press Release: 2023-2024/159, May 2nd 2023, Reserve Bank of India

[4]Press Release: 2023-2024/161, May 2nd 2023, Reserve Bank of India

[5]Press Release: 2023-2024/167, May 2nd 2023, Reserve Bank of India

[6]Press Release: 2023-2024/165, May 2nd 2023, Reserve Bank of India

[7]Press Release: 2023-2024/164, May 2nd 2023, Reserve Bank of India

[8]Press Release: 2023-2024/166, May 2nd 2023, Reserve Bank of India

[9]Press Release: 2023-2024/163, May 2nd 2023, Reserve Bank of India

[10] Press Release: 2023-2024/172, May 3rd 2023, Reserve Bank of India. [11] Press Release: 2023-2024/182, May 4th 2023, Reserve Bank of India. [12]Times of India, ‘Bharat Pe acquires 51% stake in Trillion Loans NBFC’, 2 May 2023. [13] Economic Times, ‘Indian American business leader Ajay Banga appointed as World Bank President for the five-year term’, 04 May 2023 [14]Business Today, “Paytm Q4 results: Net loss narrows to Rs 168 crore from Rs 761 crore, revenue rises 51% to Rs 2,334 crores”, 5th May 2023. [15]Business Today, “GetVantage becomes first RBF start-up to get NBFC licence”, 4th May 2023. [16]DMD Circular Letter No. 04; April 30, 2023, Bangladesh Bank [17]Public Notice: 2023-24, May 4th 2023, Bank of Mauritius. [18]Press Release: 2023-24/01, May 3rd, State Bank of Pakistan.


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 contents.

* Image credits: RBI

For further queries or details, you may contact:

Mr Anuroop Omkar,

Partner, AK & Partners


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