Page 7 - Banking Finance December 2021

RBI CORNER

Reserve Bank

News

Economy poised to regain economic conditions remained uncer- Systems Act, 2007 (PSS Act). The RBI
tain amid the risk of faster policy order did not impact the existing cus-
the ground lost to Covid: normalisation by major central banks tomers of Diners Club International.

RBI leading to tightening of financial con- In a statement today, the RBI said: "In
ditions and stifling of growth impulses.
The aggregate demand in the view of the satisfactory compliance
economy is improving and overall mon- "The Indian economy is clearly differ- demonstrated by Diners Club Interna-
etary and credit conditions are condu- entiating itself from the global situa- tional Ltd. with the Reserve Bank of
cive for a durable economic recovery tion, which is marred by supply disrup- India (RBI) circular dated April 6, 2018
to take root, while the quality of the tions, stubborn inflation and surges of on Storage of Payment System Data,
government expenditure has seen an infections in various parts of the world," the restrictions imposed, vide order
improvement in the second half, said it said. dated April 23, 2021, on on-boarding
the Reserve Bank of India (RBI) in its High-frequency indicators show that of fresh domestic customers have been
'state of the economy' report released the recovery is taking hold in several lifted with immediate effect."
on Monday. spheres, "though some others are still
"Supported by the decadal low-inter- lagging behind." RBI eases rules for small
est rates, softening inflation and a With the gradual uptick in confidence, biz in current A/Cs
modest current account surplus, the mobility indicators have edged up, "the
The Reserve Bank of India (RBI) has
Indian economy is poised to regain the job market is exhibiting signs of ebul- partially rolled back some of the strin-
ground lost to the pandemic and re- lience on the back of an uptick in busi- gent norms barring banks from open-
emerge as among the fastest growing ness optimism and faster pace of vac- ing current accounts for borrowers
countries in the world," said the re- cination."
towards whom they have no credit
port, published as a part of RBI's exposure.
monthly bulletin for November. RBI allows Diners Club to
"For borrowers, where the exposure of
"Indicators of aggregate demand posit onboard new customers the banking system is less than Rs 5
a brighter near-term outlook than be- The Reserve Bank of India today lifted crore, there is no restriction on the
fore," the report added. "Mobility is restrictions imposed on Diners Club In- opening of current accounts or on the
rapidly improving, the job market is ternational with immediate effect over provision of cash credit/overdraft facil-
recouping and overall economic activ- on-boarding of fresh domestic custom- ity by banks, subject to obtaining an
ity is on the cusp of a strengthening ers. Diners Club International is a pay- undertaking from such borrowers that
revival." ment system operators authorised to they shall inform the bank, as and when
The report was bullish on India's pros- operate card networks in the country the credit facilities availed by them
pect in the coming days even as global under the Payment and Settlement from the banking system reaches Rs 5

BANKING FINANCE | DECEMBER | 2021 | 7