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  • Writer's pictureAK & Partners

AKP Banking & Finance Digest- September 26, 2022

  1. INDIA

RBI has announced the rate of interest on Government of India Floating Rate Bond 2033 (“GOI FRB 2033”) which shall be applicable for the half year i.e., September 22, 2022 to March 21, 2023. The rate of interest has been kept at 7.42 % per annum

RBI has cancelled the licence of “The Laxmi Co-operative Bank Limited, Solapur, Maharashtra because of the following reasons –

  1. The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949.

  2. The bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949;

  3. The continuance of the bank is prejudicial to the interests of its depositors;

  4. The bank with its present financial position would be unable to pay its present depositors in full; and

  5. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 22, 2022.

The Board of Financial Supervision (“Board”) under RBI has reviewed the performance of the Central Bank of India under the Prompt Corrective Action Framework (PCAF). As per the assessment conducted by the Board, the Central Bank of India is not in breach of the PCA parameters and therefore, is taken outside of the PCA restrictions, subject to some conditions and continuous monitoring.

RBI had launched a mobile application known as Mobile Aided Note Identifier (MANI) to help visually impaired individuals to identify denomination of Indian Bank notes on January 01, 2020. The app has launched facilities for identifying the denomination of banknotes through audio notifications in multiple languages including Assamese, Bengali, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu, Urdu along with Hindi and English which was released earlier.

RBI has directed Mahindra & Mahindra Financial Services Ltd. (“MMFSL”), Mumbai, to immediately cease carrying out any recovery or repossession activity through outsourcing arrangements, till further orders. However, the said NBFC may continue to carry out recovery or repossession activities, through its own employees.

RBI has extended the directions issued to Rupee Co-operative Bank Ltd., Pune, Maharashtra from September 22, 2022 to October 22, 2022.

2. Bangladesh

In accordance with the Bangladesh Payment and Settlement Systems Regulations 2014 issued under section 7(a)(e) of Bangladesh Bank Order, 1972, the Bangladesh Bank has granted a payment service operator (PSO) license to Service Hub Limited. Service Hub Limited shall be permitted to operate as payment service operator (PSO) within Bangladesh under the name of PayStation.

The Bangladesh Bank has released a circular to formulate policy on green bond financing with the aim of facilitating green-focused sustainable investments of banks and FIs. The policy seeks to achieve the Sustainable Development Goals (SDGs) through sustainable investment in infrastructure sectors such as energy, transport etc. The policy document is annexed to the circular.

3. Nepal

The Nepal Rastra Bank (NRB) has released the draft of Nepal Rastra Bank Final Lender Facility Regulations for the purpose of receiving feedback from the stakeholders. NRB has requested the stakeholders for suggestions and comments within a period of 15 days from the release of circular.


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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