Page 9 - Banking Finance January 2025

RBI CORNER

RBI Adds 27 Tonnes of

Gold to Reserves in Octo-
ber
The Reserve Bank of India (RBI) added
27 tonnes of gold to its reserves in
October, marking a fivefold increase
compared to the same period in 2023,
according to the World Gold Council Ò»©­
(WGC). This brings India's total gold
purchases to 77 tonnes from January
to October 2024, elevating its overall
reserves to 882 tonnes, with 510
tonnes stored domestically. Central
banks globally purchased 60 tonnes of RBI Deputy Governor Calls for Enforceable Code for
gold in October, with the RBI leading
the surge, reflecting its strategic focus Insolvency Committees
on diversifying reserves. RBI Deputy Governor M. Rajeshwar Rao emphasized the need for an en-
forceable code of conduct for Committees of Creditors (CoC) under the In-
Vaibhav Chaturvedi Ap- solvency and Bankruptcy Code (IBC). Speaking on December 7, Rao high-
lighted the critical role of CoCs in corporate insolvency resolution and called
pointed RBI Representa- for significant improvements in their governance. Introduced in 2016, the
tive on IBBI Board IBC has become a key recovery mechanism, but further refinements in CoC
The government has appointed operations are deemed essential.
Vaibhav Chaturvedi, Chief General
Manager of the Reserve Bank of India to siphon stolen funds. Deputy Governor pected to enhance the convenience
(RBI), as an ex-officio member of the T. Rabi Sankar described MuleHunter.AI and efficiency of digital payments.
Insolvency and Bankruptcy Board of as an infrastructure-level solution that
India (IBBI). The IBBI, established un- leverages data from banks and payment RBI Introduces SORR as
der the Insolvency and Bankruptcy systems to enhance fraud detection ca-
Code, 2016, oversees insolvency reso- pabilities. The initiative aims to bolster New Interest Rate Bench-
lution processes in India. Chaturvedi's digital security and assist smaller banks mark
appointment aims to enhance the lacking similar resources.
board's efforts in promoting transpar- The RBI has unveiled the Secured Over-
ency and accountability in resolving RBI Increases Offline UPI night Rupee Rate (SORR) as a new in-
stressed assets. terest rate benchmark, replacing the
Transaction Limit to Rs. Mumbai Interbank Outright Rate

RBI Launches AI-Powered 1,000 (MIBOR). SORR will be based on se-
cured transactions in the market repo
MuleHunter to Tackle The RBI has raised the transaction limit
for offline UPI Lite payments from Rs. and tri-party repo segments, which
Fraud 500 to Rs. 1,000, while increasing the account for 98% of overnight money

The RBI has introduced MuleHunter.AI, overall wallet limit to Rs. 5,000. UPI market activity. Deputy Governor
an artificial intelligence-driven applica- Lite, designed for small-value transac- Michael Debabrata Patra stated that
tion, to detect and prevent online finan- tions, operates without requiring a UPI SORR would provide a more accurate
cial fraud. Developed by the Reserve PIN, making payments faster and more representation of overnight funding
Bank Innovation Hub in Bengaluru, the reliable, particularly in areas with poor rates and enhance market transpar-
system identifies "mule accounts" used internet connectivity. The move is ex- ency.

8 | 2025 | JANAURY | BANKING FINANCE