Page 9 - Banking Finance October 2020

RBI CORNER

Reserve Bank News

RBI shuffles roles of sion, financial inclusion, HR, corporate by the state government. Chhibber got
strategy and budget department. a few extensions as the interim CMD
deputy governors of the bank before being appointed as
Michael Patra, the deputy governor rep-
The newly appointed RBI deputy gov- resenting the RBI in the monetary policy the full-time CMD with effect from
ernor M Rajeshwar Rao has taken panel, will continue to be in charge of October 10, 2019, for a period of six
charge of key portfolios in the regula- economic policy & research, statistics, months. Thereafter, he has been ap-
tion, enforcement, inspection, risk deposit insurance, financial markets proved by the RBI to continue as the
monitoring and legal departments. He CMD of Jammu & Kashmir Bank for
regulation and financial stability.
will also be in charge of communica- various tenures.
tions.
RBI extends R. K. Chhibber's Extension of moratorium
Rao was appointed deputy governor in
place of N S Vishwanathan who retired term as Jammu & Kashmir period may affect credit
three months ahead of schedule on Bank CMD discipline
March 31 for health reasons. Rao, a Jammu & Kashmir Bank said the RBI
career central banker, was elevated to has extended the term of RK Chhibber RBI has told the Supreme Court that
the executive director position on No- continuation of the loan moratorium
as the Chairman and Managing Direc- period beyond the six months already
vember 7, 2016 and was the senior-
tor for a period of six months. granted may affect overall credit dis-
most among the EDs who interviewed
for the position. "We wish to intimate that the Reserve cipline, and small borrowers will even-
Bank of India has extended the term tually feel the pinch.
The regulation and enforcement port-
folio has gained significance after the of R K Chhibber, Chairman and Manag- The central bank has also urged the
RBI merged the department of regu- ing Director of the bank by a further apex court to lift its interim order stay-
period of six months with effect from ing declaration of accounts as non-per-
lations for banking, cooperative banks
and NBFCs into one. The RBI rejigged 10th October, 2020 or till the appoint- forming assets (NPAs), saying this will
the portfolios of all deputy governors. ment of MD & CEO, whichever is ear- have "huge implications for the bank-
lier," Jammu & Kashmir Bank said in a ing system, apart from undermining"
B P Kanungo, the senior-most deputy
governor from the RBI, will be in regulatory filing. its "regulatory mandate".
charge of coordination, currency man- In June 2019, the Reserve Bank had In a fresh affidavit filed in the Supreme
agement, external investments, gov- approved the appointment of R K Court, which is hearing a plea on the
ernment accounts, IT, payments, RTI Chhibber as interim Chairman and question of charging interest on inter-
and forex department. M K Jain, the Managing Director (CMD) of Jammu est for loan repayments during the
deputy governor from the banking in- and Kashmir Bank, following the re- moratorium period, the RBI said "a
dustry, will hold the charge of supervi- moval of Parvez Ahmed from the post long moratorium exceeding six months

BANKING FINANCE | OCTOBER | 2020 | 9