Page 10 - Banking Finance January 2018

RBI CORNER

RESERVE BANK

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Campaign on banking Urjit Patel cautions on inflation front

dos & don'ts to spread According to RBI governor Urjit Patel, India's recent success
in containing inflationary pressures needs to be viewed in the
awareness context of entrenching macroeconomic stability, in which the
The RBI is going launch a full-fledged government played a decisive role as it managed price pres-
multimedia sures in some key food items. The new monetary policy frame-
and multilin- work has been playing an important role in shaping inflation
gual campaign expectations and outcomes, Patel said in a speech recently.
to ceate gen-
eral aware- Reserve Bank asks banks to offer doorstep banking to
ness among citizens about the regu- senior citizens and differently-abled
lations and initiatives of the central The Reserve Bank of India has asked banks to provide doorstep banking facilities
bank. "The campaign will be in 14 lan- to senior citizens of more than 70 years of age and dif-
guages with focus on regional lan- ferently-abled persons. Banks have been directed that
guages," the RBI said. senior citizens and specially-abled persons, including the
visually-impaired, should be provided basic services like
RBI leaves interest rates pickup and delivery of cash, cheque books and demand
unchanged drafts at their residence. These facilities should include
pickup of cash and instruments against receipts, delivery of cash against withdrawal
Reserve Bank of India's monetary from accounts, delivery of demand drafts, submission of know-your-customer docu-
policy committee kept the key inter-
ments and life certificates at the premises or residence of such customers.
est rate unchanged, noting risks to in-
flation, but expressed optimism that RBI asks NBFCs not to use coercion against borrowers
the slowdown in economic growth The RBI has asked NBFCs to ensure that no coercive action is taken against bor-
had bottomed out. The decision was rowers during recovery of loans by their agents and
in line with market expectations. The
said senior management will be responsible for breach
repurchase rate-the rate at which the
of norms. The norms are part of the directions issued
central bank infuses liquidity in the by the RBI on 'Managing Risks and Code of Conduct in
banking system- was left unchanged at Outsourcing of Financial Services by NBFCs (Non-Bank-
6%. RBI also maintained its neutral
ing Financial Companies)'. As per the directions, the
policy stance, which essentially means
outsourcing of any activity by NBFC does not diminish its obligations, and those
future calls on rate direction would be
of its Board and senior management, who have the "ultimate responsibility" for
data-driven and in either direction.
the outsourced activity.
10 | 2018 | JANUARY | BANKING FINANCE

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