Page 8 - Banking Finance April 2025
P. 8

RBI CORNER

          Ajit  Joshi  Appointed  as

          Executive Director of RBI
          The Reserve Bank of India (RBI) an-
          nounced the appointment of Dr. Ajit
          Ratnakar Joshi as Executive Director
          (ED), effective March 3, 2025. Dr. Joshi
          will oversee the Department of Statis-
          tics and Information Management as                                                Ò»©­
          well as the Financial Stability Depart-
          ment.  Prior  to  his  promotion,  he
          served as Principal Adviser in the De-
          partment of Statistics and Information
          Management.
          With over three decades of experi-  PM Modi Applauds RBI for Winning Global Digital
          ence, Dr. Joshi has contributed exten-
          sively in the areas of statistics, infor-  Transformation Award
          mation  technology,  and  cyber  risk  Prime Minister Narendra Modi has lauded the Reserve Bank of India (RBI)
          management. He has also been part of  for being awarded the Digital Transformation Award 2025 by Central Bank-
          the faculty at the Institute for Devel-  ing, London. In a post on social media platform X, the Prime Minister de-
          opment and Research in Banking Tech-  scribed the recognition as a "commendable accomplishment" that highlights
          nology, Hyderabad, and has partici-  innovation and efficiency in governance.
          pated in numerous national commit-  RBI was awarded for its in-house developed systems-Pravaah and Sarthi-
          tees and working groups on macroeco-
                                              which have digitized internal and external processes, reducing reliance on
          nomic statistics and policy formulation.
                                              paper submissions. The RBI stated that the award affirms the success of its
                                              digital initiatives. Modi noted that such innovations empower lives and en-
          RBI to Inject Rs. 1.87 Lakh         hance India's financial ecosystem.
          Crore into Banking System

          The Reserve Bank of India (RBI) has  RBI Slaps Rs. 68 Lakh in        The RBI clarified that these penalties
          announced fresh liquidity measures to-  Penalties  on  Banks  and    address regulatory shortcomings and
          talling Rs. 1.87 lakh crore to ease po-                              do not affect the validity of existing
          tential liquidity stress in the second half NBFC                     agreements with customers.
          of March 2025. These include open  The Reserve Bank of India (RBI) has im-  RBI Relaxes Risk Norms for
          market operations (OMO) for purchas-  posed monetary penalties totalling Rs.
          ing government securities (G-Secs) and  68.1 lakh on two banks and a non-bank-  NBFC  and  Microfinance
          USD/INR Buy/Sell swaps.           ing finance company (NBFC) for non-com-  Lending

          This  move  comes after the central  pliance with regulatory norms. Nainital  In a reversal of earlier measures, the
          bank had earlier injected Rs. 2.80 lakh  Bank Ltd was fined Rs. 61.4 lakh for vio-  Reserve Bank of India (RBI) has re-
          crore into the financial system through  lations related to 'Interest Rate on Ad-  duced the risk weights on bank loans
          similar measures between January 30  vances' and 'Customer Service in Banks'.  to  non-bank  finance  companies
          and February 28, 2025. The RBI's de-  Ujjivan Small Finance Bank faced a Rs.  (NBFCs) and microfinance institutions.
          cision aims to maintain sufficient liquid-  6.7 lakh penalty for non-compliance  This change allows banks to hold less
          ity and support credit flow amid pre-  with lending restrictions. Additionally,  capital against such exposures, thereby
          vailing market conditions, ensuring sys-  Shriram Finance was penalised Rs. 5.8  boosting their lending capacity. The
          temic stability and smooth financial op-  lakh for lapses in Know Your Customer  move comes after a slowdown in credit
          erations across the banking sector.  (KYC) norms and credit data reporting.  flow to NBFCs following the November


            8 | 2025 | APRIL                                                               | BANKING FINANCE
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