Page 8 - Banking Finance July 2024

RBI CORNER

Reserve Bank

RBI slaps fine on Central unauthorised e-transactions to custom- be aggressive, they may ask for lower
ers' accounts promptly. yields," Vikas Goel, managing director
Bank, Bangladesh Bank on
and CEO at PNB Gilts, said.
violations RBI set to buy back bonds
RBI has imposed penalties of Rs 1.5 worth Rs. 60000 crore RBI launches PRAVAAH
crore and Rs 9.4 lakh on Central Bank The bond market will be closely watch- portal for online applica-
of India and Bangladesh's Sonali Bank,
respectively. ing the RBI buyback of securities worth tion, approval
Rs. 60,000 crore on behalf of the gov-
The penalty on Central Bank is for its ernment, as the two previous buybacks The Reserve Bank of India (RBI) Gov-
failure to comply with RBI directives on this month did not achieve the desired ernor Shaktikanta Das, launched an
loans and advances and customer pro- results. online portal for regulatory applica-
tection in electronic transactions. tions and approvals, a mobile app for
Sonali Bank has been fined for charges With banks offering to sell bonds at individuals for transacting in govern-
higher prices - or lower yields - the RBI
included failures to implement periodic ment securities, and two repositories
risk categorisation reviews, use robust rejected most of the bids in the previ- for information on fintech and lenders.
ous two auctions, accepting bids worth
software for transaction alerts incon- The PRAVAAH (Platform for Regulatory
sistent with risk categorisation, comply only Rs.12,583 crore out of a total no- Application, Validation and
with Swift-related operational controls, tified amount of Rs. 1 trillion. Authorisation) portal will enable indi-
and become a member of all credit The RBI is looking to inject funds into the viduals and entities to apply for
information company within stipulated banking system, which is experiencing authorisation and regulatory approvals.
timelines. tight liquidity due to low spending by the
government. Low spending due to the Individuals and entities will be able to
RBI's decision followed an inspection of track and monitor the status of their
ongoing national election has led to a
the two bank's financial position as of application in the PRAVAAH portal,
March 31, 2022. During this exercise, build-up in the government's cash bal- which is secure and centralised, and
ances and a subsequent cash deficit in
several instances of non-compliance respond to any clarification or query
the banking system. Liquidity deficit is
were unearthed, prompting RBI to is- sought by the regulator.
sue a show-cause notice. The charges expected to widen further in the next few
days as there is an outflow of goods and At present, 60 application forms cov-
on Central Bank included the sanction-
services taxes. ering different regulatory and supervi-
ing of a working capital demand loan
to a corporation against subsidies re- "The market will again try to get an- sory departments of RBI have been
ceivable from govt, as well as failure other 3-4 basis points better than the made available on the portal.
to credit amounts involved in prevailing yields. The bids are likely to RBI also launched an application for

8 | 2024 | JULY | BANKING FINANCE