Page 9 - Banking Finance August 2022

RBI CORNER

tokens is yet to gain traction across endeavor is to ensure there is orderly and IndusInd Bank for irregularities.
categories of merchants. evolution of rupee in both ways," Das Kotak Bank has been fined Rs 1.05
said in a fireside chat at the Singapore crore for failing to transfer unclaimed
It was mandated that no entity in the
Indian Chamber of Commerce and money to the depositor education and
card transaction or in the payment
Industry's event in the city-state. awareness fund, reversing
chain, other than the card issuers and
/ or card networks, can store the CoF The Indian rupee has been on a down- unauthorised electronic transfers in
data, and any such data stored previ- ward spiral, falling 6.6% in 2022, as time and not maintaining margins on
ously be purged. The initial deadline fears of a global recession and deterio- advances to brokers.
was January 1, which was extended by rating external balances fuel outflows. The Rs 1-crore fine on IndusInd Bank
six months. is for not doing due diligence in ac-
The RBI, earlier this month, an-
CoF refers to card information stored nounced measures to help shore up its counts opened using OTP-based e-KYC,
by payment gateway and merchants to foreign exchange reserves that have in a non-face-to-face mode where re-
process future transactions. declined to the lowest in more than 14 quired. Banks are required to transfer
unclaimed deposits, if there is no cus-
months at $588.3 billion as of 1 July.
RBI, Govt working on tomer-initiated transaction for 10
years, into the Depositor Education
measures to halt currency RBI imposes Rs. 1.68-crore
and Awareness Fund.
fall penalty on Ola Financial
Besides the two private banks, the
RBI and the Centre could take a series RBI has imposed monetary penalty of central bank has also penalised some
of one-off measures to halt the rupee's Rs. 1.678 crore on Ola Financial Ser- co-operative banks - Nav Jeevan Co-
slide. These may include curbs on im- vices Private Ltd for non-compliance operative Bank, Balangir District Cen-
ports of non-essential goods, reduction with certain provisions of the Master tral Cooperative Bank (Balangir),
in thresholds on aggregate overseas Directions on Prepaid Payment Instru-
Dhakuria Cooperative Bank (Kolkata),
investments by resident Indians, and ments (PPIs) and Know Your Customer
and The Palani Co-operative Urban
mandates for exporters to quicken (KYC).
Bank (Palani). The penalty ranges be-
their USD remittances.
The central bank, in a statement, said tween Rs 1 lakh and Rs 2 lakh.
"The central bank could look at inter- it was observed that Ola Financial Ser-
ventions like telling exporters to bring vices was non-compliant with the di- RBI allows trade settle-
in their dollars quickly, or asking im- rections issued by it on KYC require-
ment in rupees
porters to sell dollars directly to oil ments.
RBI has allowed trade settlements
marketing companies if the situation
Accordingly, notice was issued to the between India and other countries,
worsens from here," said Madan
entity advising it to show cause as to including Sri Lanka and Russia, in ru-
Sabnavis, Chief Economist, Bank of
why penalty should not be imposed for
Baroda. pees.
non-compliance with directions.
"In order to promote the growth of
"After considering the entity's re-
Reserve Bank looks for or- global trade with emphasis on exports
sponse, RBI concluded that the afore-
from India and to support the increas-
derly evolution of rupee, said charge of non-compliance with
ing interest of the global trading com-
says Das RBI directions was substantiated and munity in INR, it has been decided to
warranted imposition of monetary
RBI is for an orderly appreciation or put in place an additional arrange-
penalty," the central bank said.
depreciation in the currency and is in- ment for invoicing, payment, and
tervening in all market segments to settlement of exports/imports in INR,"
RBI fines Kotak, Induslnd
curb volatility, Governor Shaktikanta the RBI said in a notification.
Das said. banks Rs. 1 crore each Banks have to take approval on doing
"We don't have a level in mind, but our RBI has imposed fines on Kotak Bank such transactions.

BANKING FINANCE | AUGUST | 2022 | 9