Page 10 - Banking Finance October 2022

RBI CORNER

come levels. In a country like India, Bank of India estimate that the GDP resident Indians (NRIs) undertaking
rural credit is closely related to inclu- growth rate was likely to be around 16.2 utility, education and other bill pay-
sive economic growth, as it caters to per cent in the first quarter. Finance Sec- ments on behalf of their families in In-
the requirements of agriculture and retary T V Somanathan said the Indian dia. RBI governor Shaktikanta Das had
allied activities, small businesses, etc.," economy is "on course" to achieve over said the move will greatly benefit se-
the RBI said. 7 per cent growth this fiscal. nior citizens in particular. The idea was
also to benefit payment of bills of any
"It (Q1 GDP) is good enough to achieve
RBI plans fraud registry the rate of growth that we think ev- biller on-boarded on the BBPS platform
in an interoperable manner.
RBI is planning to set up a "fraud reg- eryone including the IMF and RBI have
istry" to create a database of expected as real GDP growth for four
websites, phone numbers, email ID and quarters of this year. We are on course Central Bank rallies 15%
IP addresses used in digital frauds to to achieve more than 7 per cent GDP after RBI lifts PCA curbs
protect the interests of consumers, growth in the year, in the range 7.0-
Shares of Central Bank of India rallied
while maintaining that only a minus- 7.5 per cent. The IMF has predicted
15 per cent to hit the day’s high of Rs
cule proportion of complaints its re- 7.4 per cent," he said at a briefing.
23.4 per share on the NSE after the
ceives relates to "mis-selling of prod-
public sector bank was removed from
ucts". RBI enables cross-border the prompt corrective action (PCA)
RBI ED Anil Kumar Sharma told report- bill payments via BBPS framework by the RBI. The bank has
ers the database will help keep tabs on been subject to tough lending curbs
RBI notified the rupee drawing ar-
fraudsters. "There is no definite since June 2017.
rangement for cross-border remit-
timeline for setting up of the fraud
tances through the Bharat Bill Pay- It was the last bank to exit the PCA
registry. At present, we are talking to framework, which is implemented in
ment System (BBPS), paving the way
different stakeholders, including differ- case banks breach 3 primary risk
for non-resident Indians to make bill
ent departments like payments & thresholds based on parameters includ-
payments through the channel.
settlement and supervision of the RBI," ing net non-performing assets, mini-
" …it has been decided to allow foreign
he said. Payment system participants mum capital criteria and return on
inward remittances received under the
will be provided access to this registry assets.
rupee drawing arrangement (RDA), to
for near-real time fraud monitoring.
"It was noted that as per the assessed
be transferred to the KYC compliant
The aggregated fraud data will be pub-
figures of the bank for the year ended
bank account of the biller (beneficiary)
lished to educate customers on emerg-
March 31, 2022, the bank is not in
ing risks. through Bharat Bill Payment System
breach of the PCA parameters," RBI said.
(BBPS)," the central bank said in a no-
The bank was removed from the PCA
tification to all category-I authorised
India Q1 GDP is up 13.5%,
dealer banks. framework following the review by the
but lower than RBI esti- Board for Financial Supervision. The
The notification is aimed at imple-
bank has provided a written commit-
mate menting a measure announced by the
ment that it would comply with the
India's economy grew 13.5 per cent RBI in its statement on developmental
norms of minimum regulatory capital,
from a year ago in the April-June quar- and regulatory policies on August 5. net NPA and leverage ratio on an on-
ter this fiscal, its fastest year-on-year The BBPS, owned and operated by going basis. Also, the bank has apprised
growth rate in four quarters. It was NPCI Bharat BillPay, has over 20,000 the RBI of the structural and systemic
led by higher household consumption, billers and it processes more than 80 improvements in place now that shall
especially of contact-intensive services, million transactions on a monthly ba- help in meeting the aforementioned
and buoyant investment activity, as sis. So far, the payment channel was commitments.
compared to the same quarter of the accessible only for residents in India.
At around 9:36 am, the stock pared
last fiscal that bore the brunt of the
The central bank decided to enable some of its earlier gains, and traded
second Covid-19 wave.
BBPS to accept cross-border inward higher by over 9 per cent at Rs 22.2
But this was lower than the Reserve payments in order to facilitate non- per share.
10 | 2022 | OCTOBER | BANKING FINANCE