Page 9 - Banking Finance June 2023

RBI CORNER

Reserve Bank

RBI approves Bharucha as RBI imposes Rs.1.73 crore RBI cancelled the banking licence of
Adoor Co-operative Urban Bank to
deputy MD of HDFC Bank penalty on HSBC carry on banking business under the
HDFC Bank has said that the RBI has
The Reserve Bank of India (RBI) im- Banking Regulation Act,1949, with ef-
approved the appointment of Kaizad
posed a monetary penalty of Rs.1.73 fect from the close of business on April
Bharucha as deputy MD and Bhavesh
crore on the Hongkong and Shanghai 24, 2023, it added. The Bank was
Zaveri as executive director for three-
Banking Corporation Ltd (HSBC Bank) granted license in January 1987.
year terms effective April 19, 2023. A
for violating the Credit Information
meeting of the bank's board of direc- "This makes it obligatory on the part
Companies Rules, 2006. The RBI stated
tors will be convened to formalise the of The Adoor Co-operative Urban Bank,
appointments, the bank said. that during their examination of the Adoor to stop conducting the business
Risk Assessment Report and all related of 'banking'…including acceptance of
This appointment reinforces
correspondences pertaining to the deposits from non-members with im-
Bharucha's position as number two in
same, it was discovered that the bank mediate effect," RBI said.
the bank after Sashidhar Jagdishan,
had breached the aforementioned
who was appointed CEO in October
2020. The bank's board recommended rules. CBDC more environment
Jagdishan for another three-year term
friendly than other cash-
last month. RBI notifies Adoor Co-op
less modes, says RBI re-
Bharucha, with over 35 years of expe-
Urban Bank as non-bank-
rience, has been associated with HDFC port
Bank since 1995. He currently serves ing institution
Central bank digital currency (CBDC) or
as executive director and is responsible
The Reserve Bank of India has can- e-rupee, if designed keeping in mind
for wholesale banking. Bharucha also
celled the banking license of Kerala- the environment, social and gover-
serves as the designated director for
based Adoor Co-operative Urban Bank nance (ESG) objectives, can be more
the financial intelligence unit and the
Ltd and notified it as a non-banking environment friendly compared to al-
internal ombudsmen committee.
Institution. ternative cashless methods, according
Zaveri, who has been with HDFC Bank to a RBI report.
The cancellation of the bank's license
since 1998, currently holds the position
and its new categorisation as a non- The pilot phase of CBDC or digital ru-
of group head for operations, cash
management & ATM product. He is banking Institution have been done pee for both wholesale and retail uses
responsible for delivering an efficient under various sections of the Banking was launched by the RBI in 2022.
and seamless operation across the Regulation Act, 1949, per a RBI state- "Payments effected through CBDC
bank's diversified product suite. ment. would be instantaneous and final, and
BANKING FINANCE | JUNE | 2023 | 9