Page 10 - Banking Finance May 2024

RBI CORNER

Reserve Bank

RBI : 97.69% of Rs. 2000 The information collected in the survey universal bank licence in January last
includes quantitative data on new or- year. Both applications are still under
currency notes returned ders received during the reference consideration.

RBI has stated that the total value of quarter, backlog of orders at the be- So far, the RBI has received 13 appli-
Rs 2000 banknotes in circulation, which ginning of the quarter, and pending cations to set up banks under the
was Rs 3.56 lakh crore at the close of orders at the end of the quarter. Guidelines for 'On Tap' Licensing of
business on May 19, 2023, when the It also collects data on total invento- Universal Banks and Small Finance
withdrawal of Rs 2000 banknotes was
ries with a breakup between finished Banks. Eleven applications have been
announced, has declined to Rs 8202
goods (FG), work-in-progress (WiP) and rejected, while two are still under con-
crore at the close of business on March raw material (RM) inventories at the sideration.
29, 2024. Thus, 97.69% of the Rs 2000 end of the quarter, item-wise produc-
banknotes in circulation as on May 19, tion in terms of quantity and value.
2023, have since been returned. The RBI modifies AIF norms in
RBI had announced the withdrawal of RBI rejects two applica- a relief to lenders
Rs 2000 denomination banknotes from In a relief to banks and non-banking
circulation vide a Press Release dated tions for small finance financial companies (NBFCs), the Re-
May 19, 2023. bank licences serve Bank of India (RBI) relaxed the
The Reserve Bank of India (RBI) has norms it announced on investments in
RBI launches manufactur- rejected two more applications for set- Alternative Investment Funds (AIFs) in
ing cos survey ting up small finance banks: Dvara December last year.
The Reserve Bank has launched the Kshetriya Gramin Financial Services The RBI had restricted banks and fi-
next round of quarterly order books, Private Limited and Tally Solutions Pri- nancial institutions from investing in
inventories and capacity utilisation sur- vate Limited. AIFs where there is an exposure to a
vey of manufacturing companies, a key So far, the regulator has received 13 firm to which they have already lent
input for the monetary policy formula- applications to set up banks under the to, in order to address evergreening
tion. The 65th round of survey is for the guidelines for 'on tap' licensing of Uni- on loans. The regulator had asked
reference period January-March 2024 versal Banks and Small Finance Banks, banks and NBFCs to make 100 per cent
(Q4:2023-24), the central bank said. RBI said in a release. provisions for the entire investment in
The Reserve Bank has been conduct- In January this year, Fino Payments such AIF schemes.
ing the order books, inventories, and Bank applied to the RBI for a small fi- In a circular issued, the RBI said that
Capacity Utilisation Survey (OBICUS) of nance bank licence. Bhubaneswar- its regulated entities (REs) will now be
the manufacturing sector on a quar- based micro-lending Annapurna Fi- required to make provisioning only to
terly basis since 2008. nance Private Limited applied for a the extent of the amount invested by

BANKING FINANCE | MAY | 2024 | 9