Page 7 - Banking Finance February 2025

RBI CORNER

RBI Adds 8 Tonnes of Gold

to Reserves in November:
WGC
The Reserve Bank of India (RBI) has
continued its gold acquisition spree,
adding 8 tonnes to its reserves in No-
vember. This brings the total gold
added during the first 11 months of Ò»©­
2024 to 73 tonnes, increasing India's
total reserves to 786 tonnes. In the
same period, other nations collectively
added 53 tonnes, with Poland leading
at 21 tonnes.
The World Gold Council (WGC) high-
lighted in its latest report that RBI Imposes Compensation for Delays in Credit Data
Uzbekistan, Kazakhstan, China, Jordan, Updates
Turkey, the Czech Republic, and Ghana The RBI has mandated compensation of Rs 100 per day for delays in credit
were significant contributors. How- data updates by credit information companies (CICs) and credit institutions
ever, Singapore reduced its gold hold- (CIs). Complaints unresolved beyond 30 calendar days from the date of fil-
ings by 5 tonnes. ing will be subject to this penalty.
Commenting on the RBI's purchases, Banks and CICs must notify customers by email or SMS when credit infor-
the WGC stated, "The Reserve Bank mation is sought or when defaults occur. If a bank fails to update credit data
maintained its buying momentum in within 21 days, it must compensate the customer. Similarly, CICs are liable
2024, acquiring another 8 tonnes in for unresolved complaints despite receiving updated data from banks within
November. This positions India as the the stipulated time.
second-largest gold buyer of the year
Currently, four CICs are authorized by the RBI: TransUnion CIBIL, CRIF High
after Poland." Central banks, particu-
larly from emerging markets, re- Mark, Equifax, and Experian. The RBI's Master Direction on Credit Informa-
mained significant buyers of gold in tion Reporting ensures transparency and accountability in the resolution
2024, citing economic uncertainties. process.

RBI Establishes Panel for sessing global AI adoption trends, iden- department as Michael Patra's term as
Ethical AI Use in Financial tifying risks, reviewing regulatory Deputy Governor concludes. Patra
frameworks, and suggesting ethical served a five-year term, including two
Sector governance models. The RBI's fintech one-year extensions. Rao will continue

The Reserve Bank of India has set up a department will assist the committee, to manage his current responsibilities
panel named Framework for Respon- which is expected to submit its report alongside his new portfolio.
sible and Ethical Enablement of Artifi- within six months.
cial Intelligence (FREE-AI) to oversee HDFC Bank Receives RBI
the ethical adoption of AI in the finan- RBI Deputy Governor Rao
cial sector. The committee, chaired by Approval for AU SFB Stake
Pushpak Bhattacharyya of IIT Bombay, to Oversee Monetary Purchase
includes experts from academia, indus- Policy HDFC Bank has received the RBI's ap-
try, government, and regulatory bod- Rajeshwar Rao, Deputy Governor of proval to acquire up to a 9.5% stake in
ies. the Reserve Bank of India, has been AU Small Finance Bank Limited within
The panel's mandate encompasses as- assigned charge of the monetary policy one year. The approval extends to

BANKING FINANCE | FEBRUARY | 2025 | 7