AKP Banking & Finance Digest- September 19, 2022
Updated: Sep 26
The RBI has released a master direction on interest rates on deposits. The circular refers to Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 03, 2016 and Master Direction – Reserve Bank of India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016 dated May 12, 2016. It states that the reference rates for arriving at the interest rates applicable on Foreign Currency (Non-resident) Accounts (Banks) [FCNR(B)] deposits shall be published by the Financial Benchmarks India Pvt. Ltd. (FBIL) with effect from January 31, 2022 instead of Foreign Exchange Dealers Association of India (FEDAI). In addition, the RBI has also modified the provision regarding eligibility for opening of saving accounts under the above-mentioned master directions. All modifications done to relevant sections of the mentioned master directions are annexed to the circular.
RBI releases its annual publication titled “Handbook of Statistics on the Indian Economy, 2021-22” (HBS). This will be the 24th publication in the series and it disseminates time series data on major economic and financial indicators relating to the Indian economy.
Export-Import Bank of India (“Exim Bank”) has entered into an agreement with the Government of Republic of Uzbekistan, for making available to the latter, Government of India supported Line of Credit (LoC) of USD 448 million (USD Four Hundred and Forty-Eight Million Only) for the purpose of financing the social infrastructure and other development projects.
RBI has allowed foreign inward remittances received under the Rupee Drawing Arrangement (“RDA”) to be transferred to the KYC compliant bank account of the biller (beneficiary) through Bharat Bill Payment System (BBPS).
RBI imposes a monetary penalty INR 25,00,000 (Indian Rupees Twenty-Five Lakh Only) on G S Mahanagar Co-operative Bank Limited, Mumbai, Maharashtra (“the bank”) for non-compliance with the directions issued by RBI on ‘Maintenance of Deposit Accounts’.
2. Sri Lanka
The Financial Intelligence Unit (FIU) of Sri Lanka which is a regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) has imposed monetary penalty on:
Name of the Entity
Penalty Imposed (in LKR)
Sampath Bank PLC
LKR 1,000,000.00 (Sri Lankan Rupees one million only)
Non-compliance with Section 9 (1) of the Financial Transactions Reporting Act, 2006 (FTRA) which imposes the duty to not divulge information.
Bangladesh Bank has released a circular directing all scheduled banks, mobile financial service (MFS) providers, other concerns and all stakeholders associated with Foreign Exchange dealings in Bangladesh to not engage in virtual assets, virtual currencies or provide any facilitation in favor of doing business or operation in relation with the exchange/transfer/trading of virtual assets or virtual currencies. In addition, the bank emphasized that as per section 2(b)(i) of the Foreign Exchange Regulation Act 1947, virtual currency has not been recognized as a currency and is not an approved form of transaction/ investment. The circular also clarified that virtual assets and currencies do not have financial value in Bangladesh.
RBI/2022-2023/117 DOR.SOG (SPE).REC. No 68/13.03.00/2022-23, Reserve Bank of India, September 16, 2022.
Press Release: 2022-2023/874, Reserve Bank of India, September 15, 2022.
RBI/2022-2023/116 A.P. (DIR Series) Circular No.15, Reserve Bank of India, September 15, 2022.
RBI/2022-23/115 A.P. (DIR Series) Circular No. 14, Reserve Bank of India, September 15, 2022.
Press Release: 2022-2023/862, Reserve Bank of India, September 12, 2022.
Imposition/ Collection of Administrative Penalties by the Financial Intelligence Unit (FIU) to enforce compliance on financial institutions, Central Bank of Sri Lanka, September 15, 2022.
FE Circular No. 24, issued by Foreign Exchange Policy Department, Bangladesh Bank, September 15, 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.
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