Page 9 - Banking Finance April 2025
P. 9

RBI CORNER

         2023 increase in risk weights by 25  RBI's  Dollar  Swap  Adds        livery. Speaking at the annual confer-
         percentage points. That earlier step                                  ence  of  the  RBI's  Ombudsmen  in
         was taken to manage potential risks  $15 Billion to  Forex Re-        Mumbai, Malhotra noted that inad-
         due  to  rapid  growth  in  consumer  serves in a Week                equate attention to customer service
         credit. As of December 2024, lending  India's foreign exchange reserves jumped  has led to numerous complaints being
         to NBFCs rose just 4.8% from March,  by $15 billion to $653.9 billion in the week  escalated to the RBI Ombudsman.
         compared to 13.2% in the same period  ending March 7, 2025, marking the larg-  He urged top management to allocate
         the previous year.                 est single-week rise in over two years, as  more time and resources to address
                                            per RBI data. The sharp increase was  customer  issues  directly,  ensuring
         RBI  Clarifies  Disclosure         primarily attributed to a dollar-rupee  timely  and  effective redressal. The
         Norms for Repo, Reverse            buy-sell swap conducted by the RBI on  Governor's remarks underline the RBI's
                                            February 28, along with revaluation  commitment to improving customer-
         Repo Deals                         gains in the dollar index.         centric banking practices across the
         The Reserve Bank of India has man-  The central bank executed a $10 bil-  financial sector.
         dated that banks disclose both the  lion  swap  to  address  liquidity con-
         market and face values of repo and                                    Perform  or  perish:  RBI
                                            straints in the banking system by pur-
         reverse repo transactions in their fi-  chasing dollars in exchange for rupees. Governor to banks on cus-
         nancial statements. The clarification
                                            The  move significantly  boosted re-
         follows queries from banks and the In-  serves, helping stabilize the rupee and  tomer service
         dian Banks' Association regarding note                                Reserve Bank of India (RBI) Governor
                                            support the central bank's liquidity
         disclosures to accounts. The RBI stated  management strategy.         Sanjay Malhotra came down heavily on
         that including both valuations ensures                                regulated entities like banks and non-
         a clearer picture of banks' financial                                 banking financial companies (NBFCs)
         positions.                         RBI Governor Urges CEOs            for the spike in customer complaints in
                                            to Prioritize Customer Ser-        recent years, urging them to improve
         Additionally, the central bank clarified
         that margin money received as depos- vice  Amid  Rising  Com-         services and strengthen grievance re-
                                                                               dress in a time-bound manner. He said
         its, where a lien is marked in regular  plaints                       that senior executives, including chief
         business, should be classified under                                  executive officers (MDs), should spend
         Schedule 3: Deposits, with appropriate  RBI Governor Sanjay Malhotra has ex-  time on the issue at least once a week.
         disclosures. These changes are aimed  pressed concern over increasing cus-
         at enhancing transparency and unifor-  tomer complaints and urged bank and  "In this age of competition, we will not
         mity in financial reporting across the  NBFC CEOs to become more involved  survive long if we do not provide qual-
         banking sector.                    in grievance resolution and service de-  ity service to our consumers," Malhotra
                                                                               said in a speech at the annual confer-
                                                                               ence of the RBI Ombudsmen.
           Indranil Bhattacharyya Appointed Executive Director
                                                                               Commenting that the high number of
           at RBI                                                              customer grievances remains a serious
           The Reserve Bank of India (RBI) has appointed Indranil Bhattacharyya as  concern, Malhotra cited data showing
           Executive  Director  (ED),  effective  March  19,  2025.  In  his  new  role,  that complaints received under RBI's
           Bhattacharyya will oversee the Department of Economic and Policy Research.  Integrated Ombudsman Scheme grew
           Prior to this appointment, he served as Adviser in the RBI's Monetary Policy  at a compound average rate of almost
           Department.                                                         50 per cent per year over the past two
                                                                               years, reaching 934,000 in 2023-24
           With nearly three decades of experience in fiscal policy, banking, and inter-  (FY24). The number of complaints pro-
           national economic affairs, he has worked in several key departments within  cessed by the office of the RBI Om-
           the RBI. Notably, Bhattacharyya served as an economic expert in the  budsman increased by 25 per cent,
           Governor's technical office at Qatar Central Bank between 2009 and 2014,
                                                                               from about 235,000 in 2022-23 to al-
           further enhancing his global financial credentials.                 most 294,000 in 2023-24.


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