Page 6 - Banking Finance July 2023

BANK UPDATE

ing and co-promoter of the company crore and 0.80 lakh Rs 100 digital (RBI) had issued a circular on compro-
Mangayarkarasi Sundar have settled notes worth Rs 83 lakh in circulation, mise settlement with borrowers, in-
the case regarding violation of regula- the central bank said. Rs 500 digital cluding wilful defaulters and fraud ac-
tions of the Securities and Exchange rupee accounts for 47.5 per cent of the counts. The regulator mandated a
Board of India by providing investment total e-rupee in circulation, the RBI board approved policy for compromise
advisory services without the requisite said in its Annual Report. settlements, and proposals for compro-
Sebi registration. mise settlements in respect of debtors
The RBI has also launched the digital
classified as fraud or wilful defaulters
In the settlement order issued by the versions of 50 paise (Rs 0.50), Re 1, Rs
would require approval of the board in
Sebi, the three have agreed to refrain 2, Rs 5, Rs 10, Rs 20 and Rs 50 in a
all cases.
from buying, selling or otherwise deal- closed user group. It has even launched
ing in securities for one year from the 2.7 lakh pieces of 50 paise digital ru-
passing of the settlement order, pay a pee valued at Rs one lakh. Ex-RBI deputygovernor
settlement amount and disgorge more
On the other hand, the total value of named Axis chairman
than Rs 6 crore, including profit earned
wholesale digital rupee - used in the
The Axis Bank board, at its meeting
from advisory services and interest on
securities transactions - is just Rs 10.69
held, appointed independent director
the profit.
crore, showing that it has failed to
N S Vishwanathan as the non-execu-
According to the order, the settle- make any impact in the segment.
tive (part-time) chairman for three
ment amount of Rs 15.60 lakh will have
years, subject to shareholder and regu-
to be paid by each of the three enti- New MD for Karnataka latory approval.
ties, totaling to Rs 46.80 lakh. They will
Bank His appointment will be effective from
have to shell out the disgorgement
October 27, or the date of approval by
amount of Rs 6,07,69,863, including Karnataka Bank announced Srikrishnan
the RBI if received after that day.
interest of 12 percent per annum from Harihara Sarma as its new Managing
Vishwanathan had joined the RBI in
June 1, 2020 till the date of submission Director & CEO for a period of three
1981 and retired in March 2020 as the
of the revised settlement terms (RST), years. The appointment follows M.S.
deputy governor. He also served as the
which was reached in February 2023. Mahabaleshwara retiring after two
director of supervision at the Bank of
terms of three years as MD & CEO.
Mauritius and as the chief vigilance
E-rupee worth Rs. 5.70 A release from the bank here said the
officer and head of internal audit at
appointment is subject to approval by
crore in circulation the Industrial Financial Corporation of
shareholders at the ensuing annual
India.
After the launch of the central bank
general meeting or within three
digital currency (CBDC), or e-rupee, on
months from the date of assuming
December 1, 2022, the value of retail ADB, India sign Rs. 130
charge, whichever is earlier, as per
digital rupee in circulation amounted
SEBI regulations. million loan
to just Rs 5.70 crore involving 17.1 lakh
Government of India and the Asian
pieces of notes (digital) as on March
Wilful defaulters may get Development Bank (ADB) have signed
31, 2023, the Reserve Bank said.
loans after 5 years of a USD 130 million loan agreement to
When compared to this, the currency increase agricultural productivity, im-
with public (physical notes) was Rs settlement prove access to irrigation and promote
33.66 lakh crore as on May 5, 2023, Banks will be allowed to extend loans horticulture agribusinesses to raise
indicating that digital rupee is yet to to wilful borrowers and defaulters af- farmers' income in Himachal Pradesh,
make any impact in the country. ter five years of a compromise settle- a release said.
ment and debt restructuring will be
There were around 0.50 lakh Rs 500 The project interventions will help in-
allowed only if there is change in pro-
digital rupee pieces in circulation crease the income and resilience to the
moters, sources aware of the develop-
worth Rs 2.71 crore, the RBI said in its effects of climate change of at least
ment said.
Annual Report. There were 0.60 lakh 15,000 farm households across seven
Rs 200 digital notes valued at Rs 1.16 On June 8, the Reserve Bank of India districts of the state namely Bilaspur,
6 | 2023 | JULY | BANKING FINANCE