Page 8 - BF Cover January 2021.cdr

RBI CORNER

Reserve Bank

News

RBI to conduct special central banks - the US Federal Reserve aligning the financial year of the RBI,
and the European Central Bank - on currently July-June, with the
audit of Srei Infrastructure Twitter by a wide margin, emerging as government's fiscal year (April-March)

RBI is conducting a special audit of the most popular central bank on the from the year 2020-21.
Kolkata-based lender Srei microblogging site with over 1 million The 16-member board, also discussed
Infrastructure Finance and its followers. the draft Report on Trend and
subsidiary, Srei Equipment Finance. In As the RBI handle is followed by as Progress of Banking in India, 2019-20.
a notification to the exchanges, the
many as 10,00,513 people around the
lender said, RBI has appointed an world. The achievement is impressive RBI circular on foreign law
auditor to conduct a special audit in
as the 85-year-old Reserve Bank was
exercise of its powers under Section 45 also a latecomer to the world of firms
MA (3) of the RBI Act, 1934. The RBI asked banks not to approve
Twitter as it created the account only
Under the said section, the RBI may at in January 2012. any proposal of foreign law firms to
any time by order conduct a special open a branch office, project office or
audit of the accounts of a non-banking RBI central board reviews liaison office in the country under
finance company, if it is of the opinion FEMA for the purpose of practicing
that it is necessary so to do in the current economic situation legal profession.
public interest or in the interest of the The central board of the Reserve Bank, The RBI has issued a circular in this
non-banking financial company or in reviewed the current economic regard in view of a Supreme Court
the interest of the depositors of such situation in the backdrop of global and order wherein the apex court held that
company. domestic challenges and various areas advocates enrolled under the
of operations of the RBI, including the Advocates Act, 1961 alone are entitled
RBI Twitter handle creates customer education initiatives and to practice law in India and foreign law
resolution of customer complaints. firms or foreign lawyers cannot
record with 1million
The board meeting, chaired by practice the profession of law.
followers Governor Shaktikanta Das, noted the "… banks are directed not to grant any
RBI has become the first monetary change in the bank's Financial Year approval to any branch office, project
authority in the world to have more from July-June to April-March, and the office, liaison office or other place of
than 1 million followers on its official changes in the unit of presentation business in India under FEMA for the
Twitter handle. from millions / billions to lakh / crore, purpose of practicing legal profession
Despite much less monetary firepower, the central bank said in a statement. in India," the RBI said.
the Reserve Bank of India (RBI) has In its February 2020 meeting, the Further, "they shall bring to the notice
beaten the world's most powerful central board had recommended of the Reserve Bank in case any such

8 | 2021 | JANUARY | BANKING FINANCE