Page 8 - Banking Fiannce March 2018

RBI CORNER

RESERVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

PNB adopts strict SWIFT controls after mega fraud Market rate benefit to
PNB has pepped up its controls on the use of global payments network SWIFT, old home loans
according to memos issued this month. The new
measures mean only PNB officers will be able to ini- The Reserve Bank of India advised
tiate messages on SWIFT, taking away the author- banks to link
older home
ity of clerks to do so. Several new limits have been
loan rates to
placed on the amount that officers can generate de-
the current
pending on their seniority in the bank hierarchy.
market-linked
The note sent by the bank's head office in New Delhi to all regional offices on levels.Prior to
February 17 also stated any SWIFT message will have to be created, verified April 2016, home loans were linked
and authorised by three different officers. Previously only two individuals were to the base rate which was arbitrarily
needed for the process. "In continuation of efforts to strengthen SWIFT opera- decided by banks. As there were com-
tions and deploy additional measures to ensure more effective control, it has plaints that the base rate was not re-
been decided to set up SWIFT user-base limits," the note went on to say. flecting rate cuts, the RBI introduced
"When a case of potential fraud is reported to us, we offer our assistance to the formula-based marginal cost of
the affected user to help secure its environment," Natasha de Teran said. PNB lending rate (MCLR) which was linked
has also created a unit called 'Treasury Division Mumbai' for re-authorisation of to the cost of funds. While borrow-
most messages sent over SWIFT by branches. The messages include those meant ers after April 2016 got the benefit
for LoUs, said a separate circular on February 12. Any rejection due to any mis- of MCLR, those with older loans con-
match will be "kept on record for audit by auditors", the note added. tinued to pay as per the base rate.

RBI announces Ombudsman scheme for NBFC PNB directed to conduct
The Reserve Bank of India brought non-banking financial companies (NBFC) un- forensic audit
der an Ombudsman Scheme, by which an aggrieved person Punjab National Bank (PNB) had been
can file a complaint against an NBFC. The scheme will cover directed by the
NBFCs that take deposits and will later include those with Government and
an asset size of Rs 1 billion and above with a customer in- RBI to conduct a
terface. The scheme will not be applicable to infrastructure-related NBFCs and forensic audit and
NBFCs under liquidation. give a detailed report on loan fraud
According to the RBI, there are 168 deposit-taking NBFCs out of the more than by Nirav Modi and his associates,
11,500 registered with the regulator. There can be complaints about interest based on fraudulent letters of under-
payment, deposits, cheques, or "undue" charges. Complaints can also be raised taking (LoUs), and also explanation
for not intimating customers in regional languages they understand. on unearthing of matter since 2011.

8 | 2018 | MARCH | BANKING FINANCE