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AKP Banking & Finance Digest- October 31, 2022

Updated: Nov 1, 2022

  1. INDIA

Reserve Bank of India has approved the merger of Shree Sharada Sahakari Bank Ltd, Pune (Maharashtra), and the Cosmos Co-operative Bank Ltd., Pune (Maharashtra). The scheme was approved in accordance with the provisions of Section 44A read with Section 56 of the Banking Regulation Act of 1949, as amended by the Banking Regulation (Amendment) Act of 2020. (39 of 2020). The scheme will become effective on October 30, 2022. All Shree Sharada Sahakari Bank Ltd. branches in Pune (Maharashtra) will become branches of the Cosmos Co-operative Bank Ltd. in Pune (Maharashtra) with effect from October 30, 2022.

Reserve Bank of India released a press release stating that the Financial Action Task Force (FATF) has requested that its members implement enhanced due diligence measures proportionate to the risk posed by Myanmar. The move comes after Myanmar was added to the list of 'High-Risk Jurisdictions Subject to a Call for Action,' also known as blacklist countries.

Reserve Bank of India (RBI) has scheduled an additional Monetary Policy Committee (MPC) meeting for November 3, 2022. On September 30, RBI raised the repo rate by 50 basis points to 5.90% in response to rising inflation concerns.

Reserve Bank has sought information about a total of 10 members of Hizbul Mujahideen, Lashkar-e-Taiba and other banned organisations and individuals Imtiaz Ahmed Kandu, Shaukat Ahmed Sheikh, Basit Ahmed Resh. These are among those who have been declared 'terrorists' earlier.

Under the provisions of the Unlawful Activities Prevention Act (UAPA), RBI has sought any information related to these 'terrorists'.

2. Bangladesh

Bangladesh Bank has directed banks to refrain from conducting transactions with Sri Lanka via the ACU system. The ACU is a system by which participating countries settle import payments for intra-regional trade. If a bank in Bangladesh wishes to settle a transaction with a commercial bank in Sri Lanka, it may do so by ignoring the ACU system.

In order to facilitate and increase foreign direct investments and international trade, the CBB has added a group of companies and their related organizations to the conditional payment system for post-import financing (PIF). Furthermore, the circular stated that the group of companies can settle payments through PIF through cross-border transactions rather than import against a local letter of credit.

3. Sri Lanka

The Regional Development Department of the Central Bank of Sri Lanka conducted the first-ever countrywide Financial Literacy Survey in Sri Lanka, with the assistance of the International Finance Corporation (IFC) - under the IFC-DFAT Women in Work programme - as part of the implementation of the National Financial Inclusion Strategy of Sri Lanka. The primary goal of the survey was to assess the level of financial literacy among the population in order to develop appropriate policy measures.

[1] Press Release: 2022-2023/1108 Reserve Bank of India, October 29, 2022

[2] Press Release: 2022-2023/1101 Reserve Bank of India, October 27, 2022

[3] Press Release: 2022-2023/1099 Reserve Bank of India, October 27, 2022

[4] Press Release: 2022-23/134 Reserve Bank of India, October 27, 2022


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.

For further queries or details you may contact:

Mr Anuroop Omkar,

Partner, AK & Partners


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