Page 10 - Banking Finance December 2016

RBI CORNER

Start-ups can borrow in rupees, foreign currency or Second banking om-

both budsman office opened
Start-ups can borrow up to $3 million is either a member of the Financial Ac- in New Delhi
or equivalent per financial year - either tion Task Force or a member of a FATF- The Reserve Bank of India said that
in rupees, or any con- Style Regional Body, it has set up the
vertible foreign cur- and should not be from second office of
rency or a combination a country identified in the banking
of both - for a minimum the public statement of ombudsman at
average maturity period the FATF. Overseas its office in New
of three years, the RBI branches / subsidiaries Delhi. The new
said in its guidelines for of Indian banks and office has been
start-ups to access loans under the Ex- overseas wholly owned subsidiary/joint opened in view
ternal Commercial Borrowing (ECB) venture of an Indian company will, of the signifi-
framework. however, not be considered as cant increase in

RBI said the lender/investor in the ECB recognised lenders under this frame- banking network during the recent
should be a resident of a country which work. past and the large jurisdiction being
covered by the present office of the
Adequate stocks of notes ready in currency chests: RBI ombudsman, New Delhi.

The Reserve Bank of India has said ad- the demand, printing presses are print- The first office of the banking om-
equate stocks of notes are ready in the ing the currency notes at full capacity budsman at RBI, New Delhi, will
currency chests located so that adequate quan- have jurisdiction over Delhi and
at more than 4,000 tum of notes is avail- Jammu & Kashmir. The second office
places across the coun- able," the RBI said. will have jurisdiction over Haryana
try. Recent report (except Panchkula, Yamuna Nagar
To minimise the incon-
states that many ATMs venience to public the and Ambala districts) and Ghaziabad
had run out of cash and branches of banks and and Gautam Buddha Nagar districts
serpentine queues in front of bank all RBI offices have been working well of Uttar Pradesh.
branches for exchange and withdrawal beyond normal business hours, with ad- The banking ombudsman scheme
of notes. ditional counters opened to cater to provides an expeditious and inexpen-
"Bank branches are linked to them to the huge turnout of public. On Novem- sive forum to bank customers for reso-
source their requirements from them," ber 10, 2016, about 10 crore exchange lution of complaints relating to cer-
the RBI said in a statement. "To sustain transactions have been reported. tain services rendered by banks. The
banking ombudsman is a senior offi-
RBI asks banks to check on fake notes circulation cial appointed by the RBI to redress
customer complaints against defi-
The RBI has asked banks to put entire banking areas under CCTV surveillance ciency in certain banking services.
and keep all the recordings that can help iden-
tify corrupted elements. The Reserve Bank fur- ATM for only Rs 100 note
ther said that failure of banks in detection and The RBI will undertake a pilot project
impounding of counterfeit notes and in prevent-
under which 10 per cent of ATMs in
ing such currencies from being re-circulated will the country will be calibrated to dis-
be violative of the directions and will, therefore, pense notes of only Rs. 100 denomi-
attract penal action.
nation. The objective is to ensure
"In order to facilitate identification of people abetting circulation of counterfeit that "genuine requirements of
notes, banks are advised to cover the banking hall/area and counters under CCTV members of the public" are met, the
surveillance and recording and preserve the recording," it said in a statement. apex bank said.

10 | 2016 | DECEMBER | BANKING FINANCE

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