Page 8 - Banking Finance August 2019

RBI CORNER

Payment data to be All coins are legal tender: RBI to people
stored in India: RBI The RBI has recently asked the public to continue accepting coins of various
denominations pumped into circulation regularly. The
The RBI has stated that payment RBI puts into circulation coins minted by the central
system government. RBI further said that in order to meet
provid- transaction needs, coins are being manufactured from
ers are time to time with distinctive features and various
required themes -- economic, social and cultural.
to store
"It is reported that there are doubts in some quarters, regarding the genuine-
entire
ness of such coins which has resulted in reluctance on the part of some traders,
payments data in a system only in shop-keepers and members of public to accept coins. This has impeded the free
India. RBI has released frequently use and circulation of coins in certain pockets of the country. The Reserve Bank
asked questions (FAQ), following appeals to members of the public not to give credence to such rumours and
clarifications sought by Payment Sys- continue to accept these coins as legal tender in all their transactions without
tem Operators (PSOs), in which it any hesitation," it said in a release.
stated that data processed abroad
would have to be brought back to Banks' liquidity tap opened for NBFCs & HFCs by RBI
the country within 24 hours.
The RBI has recently declared an additional liquidity facility to banks for assets
“The entire payment data shall be purchase from and on-lending to non-banking financial
stored in systems located only in In- companies and housing finance companies, which will en-
dia,” RBI stated in the FAQ. able banks to avail additional liquidity of Rs. 1,34,000
crore. This would be available within the Facility to Avail
“The data should include end-to-end
transaction details and information Liquidity for Liquidity Coverage Ratio (FALLCR) within the
mandatory SLR requirement.
pertaining to payment or settlement
transaction that is gathered/trans- An RBI statement said, “It has been decided that, with immediate effect, banks
mitted/processed as part of a pay- will be permitted to reckon this increase in FALLCR of 1 per cent of the bank’s
ment message/instruction,” the RBI NDTL as Level 1 HQLA for computing LCR, to the extent of incremental out-
said. standing credit to NBFCs and HFCs over and above the amount of credit to
NBFCs/HFCs outstanding on their books as on date.”
The data could be pertaining to cus-
tomer data like name, mobile num- RBI levies Rs 7 crore penalty on SBI
ber, Aadhaar number, PAN; Payment-
RBI has said that it has slapped a penalty of Rs 7 crore on State Bank of India
sensitive data like customer and ben-
for non-compliance with norms related to NPA identifica-
eficiary account details; payment
tion and fraud risk management, among others. The fine
credentials like OTP, PIN and, trans-
has been imposed on SBI for non-compliance of income
action data such as originating and
recognition and asset classification (IRAC) norms, code of
destination system information
conduct for opening and operating current accounts and
amount, among others.
reporting of data on Central Repository of Information on Large Credits (CRILC),
The RBI had further made clarifica- and fraud risk management and classification and reporting of frauds.
tion that in case the processing is RBI said the statutory inspection of SBI with reference to its financial position
done abroad, the data should be
as on March 31, 2017, revealed, non-compliance with IRAC norms, sharing of
deleted from the systems abroad information about customers with other banks, reporting of data on CRILC, fraud
and brought back to India within one
risk management, and classification and reporting of frauds. Based on the in-
business day or 24 hours from the spection report and other relevant documents, a notice was issued to the bank
payment processing, whichever is
advising it to show cause as to why penalty should not be imposed on it for non-
earlier. compliance with directions issued by the RBI.

8 | 2019 | AUGUST | BANKING FINANCE