Page 11 - Banking Finance April 2023

RBI CORNER

RBI's Das bags 'Governor The other countries include Botswana, RBI penalty on RBL Bank
Fiji, Germany, Guyana, Israel, Kenya, The Reserve Bank of India (RBI) has
of Year' award
Malaysia, Mauritius, Myanmar, New imposed a monetary penalty of Rs 2.27
RBI governor Shaktikanta Das bagged
Zealand, Oman, Seychelles, Tanzania, crore on RBL Bank for non-compliance
the 'Governor of the Year' award for
Uganda and the UK. with certain provisions.
2023 by international publication Cen-
This shows a significant progress in the The central bank stated that this ac-
tral Banking for captaining financial
development of a mechanism to settle tion is based on the deficiencies in
markets through the turbulent periods
international trade in rupee. regulatory compliance observed relat-
of the pandemic and the crippling im-
ing to the period FY 2018-19 to FY
pact of the Ukraine war. Former RBI Last year, the RBI came out with a
2021-22 and is not intended to pro-
governor Raghuram Rajan was the first mechanism to allow overseas trade in
nounce upon the validity of any trans-
to be conferred the title in 2015 from rupee to facilitate import of cheaper
action or agreement entered into by
the country. oil from Russia following sanctions im- the bank with its customers.
The publication said the governor posed by the west.
In a statement, RBI said that the pen-
helped manoeuvre the ship as it faced
Russia's leading banks Sberbank, VTB alty is for non-compliance with certain
multiple obstacles since his appoint-
Bank and Gazprombank were among provisions of the directions issued by
ment in December 2019. An economy the central bank on the Internal Om-
the first to be granted approval by the
as complex as India's will likely never budsman Scheme, 2018, Fair Practices
RBI for special rupee vostro accounts.
be free from challenges but, as Das Code for Lenders, credit card opera-
As per a RBI circular released in July
faces up to the remainder of his sec- tions of banks, managing risks, and the
2022, Indian importers undertaking
ond term, he can take pride in major code of conduct in outsourcing of finan-
imports through this mechanism shall
achievements so far," the citation said. cial services by banks and recovery
make payment in INR which shall be agents engaged by banks.
Das said, "A war effort has to be
credited into the special vostro account
mounted, and is being mounted, to The RBI said that the private sector
of the correspondent bank of the part-
combat the virus, involving both con- bank failed to ensure that the loan
ner country, against the invoices for
ventional and unconventional mea- recovery agents engaged by it during
the supply of goods or services from those periods did not resort to intimi-
sures in continuous battle-ready mode.
the overseas seller /supplier. dation or harassment and that it did
Life in the time of Covid has been one
not ensure police verification of the
of unprecedented loss and isolation.
Yet, it is worthwhile to remember that RBI clears IndusInd CEO for agents before employing them.
tough times never last, only tough
2 more yrs
people and tough institutions do." Govt invites application
The RBI has approved the reappoint-
for RBI deputy governor
ment of Sumant Kathpalia as md & CEO
RBI approves 60 'vostro' of IndusInd Bank for a period of two post
accounts for rupee trade years from March 24, 2023. The pri- The Finance Ministry has initiated the
The Reserve Bank of India (RBI) has so vate lender's board had reappointed process to appoint a new Reserve Bank
Deputy Governor in place of M.K. Jain,
far granted approval for opening of 60 Kathpalia as md & CEO, for three years
whose extended term is coming to an
special rupee vostro accounts in do- with effect from March 2023.
end in June.
mestic and foreign banks in 18 coun- Kathpalia has been head of the bank
tries including Russia, Singapore and The applicant should have an experi-
since March 2020 post the retirement
ence of 15 years in banking and finan-
Sri Lanka to facilitate overseas trade in of Romesh Sobti former CEO. RBI's lim-
cial market operations, said a public
the Indian currency, Union Minister of iting his term to two more years would
notice, indicating that candidates from
State for Finance Bhagwat Karad in- mean that the board would have to
the private sector will also be consid-
formed parliament. send fresh proposal in 2024.
ered for the appointment.
10 | 2023 | APRIL | BANKING FINANCE