Page 16 - Banking Finance June 2022

"Considering the bank's present liquid- be difficult, the RBI said in a notifica- ternate bank account specified by de-
ity position, no amount from the total tion. positors, or on their consent, to their
balance across all savings bank or cur- Aadhaar linked bank accounts, said a
"Such positions may be seen as creat-
rent accounts or any other account of DICGC notice.
ing conflicts of interest as well as cre-
a depositor, may be allowed to be with-
ation of a parallel or shadow authority In the fiscal ended March 2022, the
drawn, but are allowed to set off loans
impeding effective and independent corporation had settled main claims of
against deposits subject to the condi-
functioning of the legally constituted eight cooperative banks, including
tions...," it said.
board in the best interest of all its nearly Rs 136 crores of 32,221 deposi-
It further said the issuance of the di- stakeholders," it said. tors of Goa-based The Madgaum Ur-
rections should not per se be con- ban Co-op Bank, Rs 374 crores of
strued as cancellation of the banking Depositors of Lucknow co- 38,325 depositors of Maharashtra-
licence by RBI. based Karnala Nagri Sahakari Bank,
operative bank to get
and Rs 330 crore of 39,032 deposits of
RBI directs UCBs to not money from DICGC on Maharashtra-based Karad Janata
Sahakari Bank.
confer honorary titles April 27
Initially, under the provisions of Section
The Reserve Bank asked Urban Coop- The Deposit Insurance and Credit Guar-
16(1) of the DICGC Act, the insurance
erative Banks (UCBs) not to create cre- antee Corporation (DICGC) will be mak-
cover was limited to Rs 1,500 only per
ate any honorary position or title such ing payments to the eligible depositors
depositor. It was gradually increased to
Chairman Emeritus and Group Chair- of Lucknow-based Indian Mercantile
Rs 1 lakh with effect from May 1, 1993
man at the board level as it results in Cooperative Bank on April 27, accord-
onwards. The insurance cover was
creation of a shadow authority. ing to a notice.
later increased to Rs 5 lakh with effect
The RBI has directed these banks to Depositors of Beed-based Dwarakadas from February 4 onwards.
eliminate such positions within one Mantri Nagari Sahakari Bank will get
DICGC insures all bank deposits, such
year. payments on June 6. DICGC, a wholly-
as saving, fixed, current, and, recur-
owned subsidiary of the RBI, provides
While such positions or titles may be ring, except deposits of foreign Govern-
an insurance cover of up to Rs 5 lakh
indicative of certain privileges or rights ments; deposits of Central/State Gov-
on bank deposits.
for the incumbent to access all board ernments; Inter-bank deposits, and
materials and participate in board or Depositors of the two banks, submit- deposits of the State Land Develop-
committee meetings, enforcing liabil- ting valid documents, as mentioned ment Banks with the State co-opera-
ity or obligations on such person may above, will be paid by credit to the al- tive banks.

Equity MF inflows jump 43%
NET INFLOWS into equity-linked schemes rose over 43% month-on-month (m-o-m) in March to Rs 28,463.49 crore
amid sustained interest from retail investors in the equity markets despite global headwinds, Association of Mutual
Funds in India (AMFI) said.
Equity inflows in March were the highest in the last four years. According to the data, all 11 categories in the equity
funds witnessed positive flows during the month. Multicap funds saw net inflows to the tune of Rs 9,694.56 crore,
the highest among all other categories of equity funds.
"Perhaps, this is due to the continued interest in retail and HNI investors to make use of market opportunities and
enter into corrections for better valuations. Ongoing Russia- Ukraine crisis has kept the market volatile giving advan-
tage to investors in making higher allocations or re-balance their existing allocations," said Akhil Chaturvedi, chief
business officer, Motilal Oswal AMC.

The monthly SIP (systematic investment plan) contribution was also at a lifetime high in March, as it stood at Rs
12,327.9 crores.

16 | 2022 | JUNE | BANKING FINANCE