The ICAI has also issued show cause notices to auditors of Punjab National Bank (PNB) and Gitanjali Gems.
The lone dissenter RBI's Michael Patra, who voted for a rate hike, said the 4% inflation target is “in danger of getting out of reach" while Deputy Governor Viral Acharya said economic recovery needs support
The central bank has also decided to constitute an expert committee under Y H Malegam, a former member of the Central Board of Directors of RBI, to look into the reasons for high divergence observed in asset classification and provisioning by banks and the steps needed to prevent it.
"In the wake of SWIFT-related fraud involving significant amount, reported recently by PNB, RBI has today reiterated its confidential instructions and mandated the banks to implement, within the stipulated deadlines, the prescribed measures for strengthening the SWIFT operating environment in banks," the statement said.
The central bank said it had alert at least 3 times on potential malicious use of the SWIFT infrastructure.
Jewellers are concerned about financing and line of credit from banks going forward
This Nirav Modi-chase last week was a déjà vu, except for different names and faces such as Vijay Mallya and Jatin Mehta. Also, barring one, rest of the defaulters hail from gems and jewellery sector
Banking sector is always buzzing. This week, the buzz was louder with Punjab National Bank revealing one of the biggest scams in the industry amounting to fraudulent transactions.
The Reserve bank of India has denied giving any instructions to Punjab National Bank in the Rs 11,400 crore fraud unearthed on Wednesday.
The 10-year benchmark bond yield briefly eased by 1 basis point to 7.58 percent, but came back to 7.59 percent as hopes of open market purchases of bonds stayed feeble.
The 10-year benchmark bond yield briefly eased by 1 basis point to 7.58 percent, but came back to 7.59 percent as hopes of open market purchases of bonds stayed feeble
The regulators are set to spread their net overseas as it has been found that credit was availed from various bank branches in Hong Kong on the basis of Letters of Undertaking (LoUs) issued by Punjab National Bank.
RBI’s recent circular on non-performing assets would mean provisions by banks towards bad loans staying elevated for at least three more quarters.
The revised framework has specified norms for "early identification" of stressed assets, timelines for implementation of resolution plans, and a penalty on banks for failing to adhere to the prescribed timelines.
The RBI abolished half a dozen existing loan-restructuring mechanisms late last night, and instead provided for a strict 180-day timeline for banks to agree on a resolution plan in case of a default or else refer the account for bankruptcy.
Existing mechanisms such as CDR, SDR, S4A and the JLF stand to be withdrawn and discontinued.
Starting Feb 23, banks are required to identify defaults and make disclosures every Friday to the RBI credit registry.
The corresponding rates were 64.3686 and 78.8902, last Friday.
Finance Minister Arun Jaitley in his Budget has proposed to amend the RBI Act to empower the central bank to come up with an additional instrument for liquidity management.
In its annual report for 2016-17 released on August 30 last year, the RBI said Rs 15.28 lakh crore, or 99 percent of the demonetised notes, had returned to the banking system.
The week gone by was more about the RBI monetary policy despite a bland status quo and the financial results of big banks such as State Bank of India (SBI) and Bank of Baroda (BoB).
SBI reported Rs 23,239 crore divergences for FY19 and slippages jumped to Rs 25,000 crore. In FY19, the bank also plans to raise Rs 20,000 crore from the market
RBI has invited comments and suggestions by email or post before February 28, 2018
It’s been less than 2 years that Insolvency and Bankruptcy Code, 2016 (IBC) came into force and with number of changes it is progressing in the right direction of the NPA clean-up
The Reserve Bank of India has cautioned citizens against a fake website which is fraudulently taking personal and confidential banking details of bank customers posing as the central bank.