Page 7 - Banking Finance May 2022

BANK UPDATE

party application providers (TPAPs) to pointed the IT audit firm to conduct a
implement an online dispute resolution comprehensive System Audit of the IT DICGC settles PMCBL
system by September 2022, failing system of the bank," Karad said. claim of Rs. 3,792 crore
which it will ban the onboarding of new The RBI on March 11 barred SoftBank- The Deposit Insurance and Credit
customers. Guarantee Corporation (DICGC)
backed Paytm Payments Bank from
The corporation has also asked all Uni- adding new customers due to likely said it has settled the main claim ag-
fied Payments Interface (UPI) partici- gaps in its technology systems. gregating Rs. 3,791.55 crore of
pants to make available international Punjab& Maharashtra Cooperative
"Onboarding of new customers by Bank Ltd (PMCBL) for 8,47,506
merchant payments through the plat-
Paytm Payments Bank Ltd will be sub- traceable depositors.
form before September. If this is not
ject to specific permission to be DICGC asked depositors of the erst-
done, the corporation will impose pen- granted by the Reserve Bank of India
alties. The NPCI has been working with while PMCBL (transferor bank) to
(RBI) after reviewing (the) report of contact the transferee bank (Unity
offshore entities to promote accep- the IT auditors," the central bank said Small Finance Bank) for receipt of
tance of UPI by overseas merchants. in a statement. their claim amount.
Last year, it had partnered with Liquid
Scam-hit PMCBL was merged with Unity
group in Singapore to enable UPI QR- SFB with effect from January 25, 2022
based payments' acceptance in 10 Transaction volumes on (the appointed date for the merger), as
markets. UPI cross 500 crore in per a scheme of amalgamation.
March Exim Bank plans to raise
Deposit insurance law: Rs.
The widely popular Unified Payments $3 billion through over-
15000 crore paid in 6 Interface (UPI) crossed the 500 crore seas bonds in FY23
months mark in terms of volume and was close
to touching the Rs. 10-lakh crore mile- Export Import (Exim) Bank of India
The new deposit insurance law is help- plans to raise around $3 billion in 2022-
stone in value terms in March this
ing depositors in bankrupt banks in 23 (FY23) via overseas bonds to support
year. UPI processed as many as 540.56
getting quick payments, with nearly crore payments last month, amounting fresh lending and refinance a portion
Rs. 1,500 crore being paid out in less to Rs. 9,60,581.66 crore, data from the of the old debt. Harsha Bangari, man-
than six months of its enactment. This aging director, India Exim Bank, said
National Payments Corporation of In- that treasury rates (yields on govern-
is more than a quarter of what Deposit
dia (NPCI) revealed. ment bonds) have started going up in
Insurance Corp has paid out in 60 years international markets.
since it came into existence in 1961. In contrast, it had processed 452.74
crore transactions worth Rs.8,26,843 The bank, said Bangari, will keep an eye
"Since the Act came into force, over
Rs. 1,500 crore has been paid to over crore in February this year. For the full on the markets. If the benefit of low cost
comes in, the bank will take it. Else the
1.2 lakh depositors.. as of early Janu- fiscal 2021-22, it crossed the $1-trillion normal borrowing programme will re-
ary 2022," this survey said. mark at Rs. 84,17,572.48 crore pay- main. Half the money is to be used for
ments. UPI had crossed the 100 crore
fresh lending and the balance to refi-
Paytm bank yet to appoint mark in volume terms in October 2019 nance maturing debt. Last year, the
and after a dip in April 2020, and has bank tried to refinance high-cost liabili-
IT auditor since been gaining widespread adop- ties. The fund costs have come down
Paytm Payments Bank is yet to appoint tion. There were as many as 315 banks and extended the duration.
a firm to conduct an audit of its infor- live on the UPI platform by March this Banks, financial institutions, and
mation technology (IT) systems, minis- year. On a daily basis, UPI has been corporates have taken the benefit of
ter of state for finance Bhagwat Karad processing a high value of transactions. a benign interest-rate environment
told the Lok Sabha. Recent data reveal that over 17 crore the world over due to huge liquidity
"The RBI (Reserve Bank of India) has payments, worth over Rs. 20,000 in the system infused by central banks
further informed that the Paytm Pay- crore, have been made via UPI on a and governments to battle the im-
ments Bank Limited has not yet ap- daily basis. pact of the Covid-19 pandemic. T

BANKING FINANCE | MAY | 2022 | 7