Month: August 2021

Bandhan Bank to invest in digital capabilities, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Kolkata, Aug 23 (PTI) MFI-turned-bank Bandhan Bank will invest in improving digital capabilities as a part of Vision 2025, MD and CEO of the private lender Chandra Sekhar Ghosh said on Monday. Speaking at the sixth foundation day programme of the bank, Ghosh said the bank will also leverage machine learning and artificial intelligence.

“As a part of Vision 2025, Bandhan Bank will invest in digital capabilities. There is a need for digital transformation and improving the technology backbone,” he said.

With a present business size of Rs 1.50 lakh crore, Ghosh said the vision envisaged by the bank is having a well-diversified asset portfolio, optimum mix of secured and unsecured assets and geographically diversified.

Former chairman of State Bank of India and present head of Salesforce India, Arundhuti Bhattacharya, said there is a need for the bank to shift data on the cloud from its own premises and the regulatory system should encourage this migration. PTI dc NN NN



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

RBI imposes Rs 27.5 lakh penalty on Dhanlaxmi Bank, Rs 20 lakh on a co-op bank, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The RBI on Monday said it has imposed a penalty of Rs 27.5 lakh on Dhanlaxmi Bank, Thrissur, for contravention of certain norms related to the ‘Depositor Education and Awareness Fund Scheme’.

The banking regulator also imposed a Rs 20 lakh penalty on the NE & EC Railway Employees’ Multi-State Primary Cooperative Bank, Gorakhpur, for deficiencies in regulatory compliance.

In a statement, the RBI said penalty on Dhanlaxmi Bank has been imposed for contravention of a section of the Banking Regulation Act, 1949 read with a paragraph of The Depositor Education and Awareness Fund Scheme, 2014 (the scheme).

The RBI said the Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted with reference to its financial position as on March 31, 2020, and the examination of the Risk Assessment Report and Inspection Report pertaining to the same, revealed, inter-alia, contravention of the provisions of the Act read with the scheme.

A notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention.

“After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of aforesaid provisions of the Act read with the scheme was substantiated and warranted imposition of monetary penalty on the bank,” it said.

In another statement, the RBI said the inspection report of the NE & EC Railway Employees’ Multi-State Primary Co-operative Bank based on its financial position as on March 31, 2019 revealed non-adherence/violation of specific directions issued to it under the Supervisory Action Framework (SAF).

In both cases, the RBI said, the penalty is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

HDFC Bank aims to regain cards market share in 3-4 months

Banking & Finance

[ad_1]

Read More/Less


Also, there is a larger 60 million-strong base available for customers who are sort of keen on taking credit cards.

HDFC Bank is aiming to hit the credit card issuance run rate it had just prior to the embargo issued by the Reserve Bank of India (RBI). It plans to recover its market share in cards outstanding over the next three-four months, the bank said on Monday.

Parag Rao, group head – payments, consumer finance, digital banking & IT, HDFC Bank, said in November 2020, the bank had hit a run rate of incremental issuance of over 3 lakh cards per month. “So, in a quarter, we plan to hit that milestone and post that it would be half a million cards a month which we expect to happen over the next two quarters. Over the next three to four quarters, our clear aim is to regain the market share (by number of cards) which we have lost and are pretty confident with the plan we have in place,” Rao said.

According to a recent report by Motilal Oswal Financial Services, HDFC Bank has lost nearly 0.6 million cards since the date of the embargo in December 2020. On the other hand, ICICI Bank, SBI Card and Axis Bank added around 1.3 million, 0.75 million and 0.3 million new cards, respectively, over the same period. ICICI Bank and SBI Card’s incremental market share rose sharply to 49% and 28%, respectively, during the period, the report said.

Prior to the ban, HDFC Bank held pole position in terms of both number of cards in force as well as card spends.

The bank’s open market strategy before the embargo was 15-18% of its total card base. With the increase in very selective strategic alliances, the share of open market customers could go up to 22-24% in the long run, Rao said. The strategy will still be to reach out to existing bank customers. “We will always have a set of pre-approved liability customers,” he added.

Rao said during the embargo, the lender looked at a number of issues, which customers were facing and took some commercial and technical decisions to make the experience simpler. The bank focused on its existing card portfolio, connecting with them and looking at detailed patterns of their spends.

Over the last eight months, HDFC Bank had been sourcing in excess of 4 lakh accounts every month and it sees that base as available for immediate sourcing. Also, there is a larger 60 million-strong base available for customers who are sort of keen on taking credit cards.

“So even within the bank’s internal base, we have a significant headroom to grow and that’s the reason I said our strategy will continue to be largely focusing on internal customers, customers who have a liability relation with the bank,” Rao said.

For the time being, all new credit cards issued by HDFC Bank will be on the Visa and RuPay platforms as MasterCard and Diners International are currently barred from issuing new cards.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment ,

Reserve Bank of India – Press Releases

Press Releases

[ad_1]

Read More/Less


Government of India (GOI) has announced the sale (issue/re-issue) of four dated securities for a notified amount of ₹31,000 crore as per the following details:

Sr No Security Date of Repayment Notified Amount
(₹ crore)		 GoI specific Notification Auction Date Settlement Date
1 5.63% GS 2026 April 12, 2026 11,000 F.No.4(3)-B(W&M)/2021 dated August 23, 2021 August 27, 2021
(Friday)		 August 30, 2021
(Monday)
2 New GoI FRB 2034 October 30, 2034 3,000
3 6.64% GS 2035 June 16, 2035 10,000
4 6.67% GS 2050 December 17, 2050 7,000
  Total   31,000      

2. GoI will have the option to retain additional subscription up to ₹ 8,000 crore against above security/securities.

3. The securities will be sold through Reserve Bank of India Mumbai Office, Fort, Mumbai – 400001. The sale will be subject to the terms and conditions spelt out in the ‘Specific Notification’ mentioned above and the General Notification F.No.4(2)–W&M/2018, dated March 27, 2018.

4. The auction will be conducted using uniform price method for 5.63% GS 2026, New GoI FRB 2034, 6.64% GS 2035 and multiple price method for 6.67% GS 2050. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on August 27, 2021 (Friday). The non-competitive bids should be submitted between 10.30 a.m. and 11.00 a.m. and the competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. The result will be announced on the same day and payment by successful bidders will have to be made on August 30, 2021 (Monday).

5. Bids for underwriting of the Additional Competitive Underwriting (ACU) portion can be submitted by ‘Primary Dealers’ from 9.00 a.m. up to 9.30 a.m. on August 27, 2021 (Friday) on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

6. The Stocks will be eligible for “When Issued” trading for a period commencing from August 24, 2021 – August 27, 2021.

7. Operational guidelines for Government of India dated securities auction and other details are given in the Annex.

Ajit Prasad
Director   

Press Release: 2021-2022/732

ANNEX

Type of Auction

1. For multiple price-based auction, successful bids will get accepted at the respective quoted yield/price for the security. For uniform price-based auction, bids will get accepted at the cut off yield/price accepted in the auction.

2. The auction will be yield based for new security and price based for securities which are re-issued.

3. In case of a Floating Rate Bonds (FRB), the auction will be spread-based for new security and price based for securities which are reissued. At the time of placing bids for new FRB, the spread should be quoted in percentage terms.

Minimum Bid Size

4. The Stocks will be issued for a minimum amount of ₹10,000/- (nominal) and in multiples of ₹10,000/- thereafter.

Non-Competitive Segment

5. In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities.

6. Each bank or Primary Dealer (PD) on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

7. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price of the successful bids that will emerge in the auction on the basis of the competitive bidding.

Submission of Bids

8. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

9. Bids in physical form will not be accepted except in extraordinary circumstances.

Business Continuity Plan (BCP)-IT failure

10. Only in the event of system failure, physical bids will be accepted. Such physical bids should be submitted to the Public Debt Office, Mumbai through (email; Phone no: 022-22632527, 022-22701299) in the prescribed form which can be obtained from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends.

11. In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595666, 022-27595415, 022-27523516).

12. For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

Multiple Bids

13. An investor can submit more than one competitive bid in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system.

14. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

Decision Making Process

15. On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions.

16. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected.

17. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

Issue of Securities

18. Issue of securities to the successful bidders will be by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate.

Periodicity of Interest Payment

19. Interest on the Government Stock will generally be paid half-yearly other than in case of securities with non-standard maturities. The exact periodicity of coupon payment is invariably mentioned in the specific notification for the issue of security.

Underwriting of the Government Securities

20. The underwriting of the Government Securities under auctions by the ‘Primary Dealers’ will be as per the “Revised Scheme of Underwriting Commitment and Liquidity Support” announced by the Reserve Bank vide circular RBI/2007-08/186 dated November 14, 2007 as amended from time to time.

Eligibility for Repurchase Transactions (Repo)

21. The Stocks will eligible for Repurchase Transactions (Repo) as per the conditions mentioned in Repurchase Transactions (Repo) (Reserve Bank) Directions, 2018 (Reserve Bank) Directions, 2018 as amended from time to time.

Eligibility for ‘When Issued’ Trading

22. The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

Investment by Non-Residents

23. Investments by Non-Residents are subject to the guidelines on ‘Fully Accessible Route’ for Investment by Non-residents in Government Securities and Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF).

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Tenders

Tenders

[ad_1]

Read More/Less


A Pre-bid meeting on E-tender for Supply, Installation, Testing and Commissioning of X-Ray Baggage Scanner System for Bank’s Office Building at RBI, Jammu issued on MSTC and RBI website on July 29, 2021 was held at 11.00 am, at RBI, Jammu, on August 23, 2021 via WebEx. The names of firms and their representatives who participated in the meeting are as under:

Sl. No Name of the representative Name of the organization
1. Shri Samir Bhatt M/s D.B. Impex
2. Shri Karthik Mudliar M/s Astrosonic Imaging Systems
3. Shri Ashish Sumrani M/s Vehant Technologies
4. Shri Sunil Kumar Pandey M/s Evolve IT Solutions Pvt. Ltd

2. Bank’s side was represented by following officials:

Sl. No Name of Bank’s Official Designation
1. Shri Bhaskar Choudhury DGM–Electrical-PMCNZ
2. Shri Sanjeev Sharma AGM
3. Shri Himanshu Bhatt AM-Electrical
4. Shri Sumit Jain AM

The queries raised by the representatives and the clarifications thereto are as under:

S.No Query Raised Clarifications
1. Government of India has come with circulars on Performance Bank Guarantee (PBG) Security where a PBG of 3 % is applicable instead of 5%. The requirement for Performance Bank Guarantee has been reduced from 5% to 3% for tenders to be invited on or before December 31, 2021 as per RBI circular dated June 28, 2021 on Performance Bank Guarantee – Review of Instructions. However, as per above CO circular, PBG of 5% would continue to remain applicable for specialized/ technology based works like lit UPS, X-Ray Baggage scanner etc.
2. MSEs are exempted from submission of EMD for the captioned work. Registered MSEs are exempted from submission of EMD for works having an estimated cost of up to Rs.10 lakh (including all taxes, duties etc). However, there is no exemption of submission of EMD for the captioned work as the cost of work is beyond the permissible limit.

Note: All other terms and conditions of the captioned tender remain unchanged.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Press Releases

Press Releases

[ad_1]

Read More/Less


The Reserve Bank of India (RBI) has imposed, by an order dated August 23, 2021, a monetary penalty of ₹27.50 lakh (Rupees Twenty Seven Lakh and Fifty Thousand only) on Dhanlaxmi Bank Ltd., Thrissur, Kerala (the bank) for contravention of sub-section (2) of section 26A of the Banking Regulation Act, 1949 (the Act) read with paragraph 3 of The Depositor Education and Awareness Fund Scheme, 2014 (the scheme) enclosed with RBI Circular on ‘The Depositor Education and Awareness Fund Scheme, 2014 – Section 26A of Banking Regulation Act, 1949- Operational Guidelines’ dated May 27, 2014. The penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Act.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The Statutory Inspection for Supervisory Evaluation (ISE) of the bank was conducted by RBI with reference to its financial position as on March 31, 2020, and the examination of the Risk Assessment Report and Inspection Report pertaining to the same, revealed, inter-alia, contravention of above-mentioned provisions of the Act read with the scheme. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for contravention of the provisions of the Act read with the scheme, as stated therein.

After considering the bank’s reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of aforesaid provisions of the Act read with the scheme was substantiated and warranted imposition of monetary penalty on the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/731

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Tenders

Tenders

[ad_1]

Read More/Less


E-tenders were invited for Design, Supply, Installation, Testing and commissioning of UVGI System for Air Handling Units (AHUs) at Main Office Building, RBI, Hyderabad after publishing the NIT in Newspaper and on the Bank’s website. As per the schedule, pre-bid meeting was conducted on August 17, 2021.

2. Representatives of Integrated Cooltech Private Limited, Blue Star Limited, Voltas Limited, and ETA Engineering Private Limited attended the meeting. Various points and clarifications were discussed from our side and vendor’s side. Following main points were discussed:

  1. Measurement of intensity/dose shall be done by the contractor after completion of work at site.

  2. Bar Chart for completion of the work should be submitted within the contractual completion period from the tenth day of letter of intent. Such chart shall include all activities like the date of supply of material at site, item wise completion of work etc., and obtain the approval of the Bank.

  3. The tenderer need to submit the detailed design calculation preferable with simulation reports indicating the number of UV lamps, Wattage, Intensity and Dose of the system so as to meet the tender specification.

  4. UV lamps and Ballasts should be UL/CE certified and the lamp output shall not drop by more than 20% after 9000 hours of operation.

  5. Individual lamp On/Off Indicator, lamp failure, individual lamp usage meter (Hr) and main power on/off switch shall be provided in the control panel.

  6. In Section-III para 3.8.5 of the tender document, minimum 4016 µW/Cm2 may be read as minimum average 4016 µW/Cm2.

  7. In section VII para 7.5 (d), 100μW/cm2 may be read as 4016 µW/Cm2.

  8. In terms of para 3.8.1 in Section III of tender, “the air quality after the work will be checked for effectiveness of the newly installed systems.” This may be read as “Testing of Air quality is to be conducted before and after installation of UVGI, after taking swab samples from the coil surface. The testing is to be conducted by an NABL approved agencies. Test-reports are to be submitted to the Bank to showcase the effectiveness of the installation.

3. Representatives of the firms were advised to follow the important instructions provided in the tender document and adhere to the prequalification criteria and all terms and conditions mentioned therein.

4. The Prospecting bidders were informed that the working hours will be 10.00 AM to 6.00 PM on working days i.e., Monday to Friday. Decision of working on holidays will be taken as per the convenience of the Bank.

5. All the above points were noted and agreed by the firms.

6. AGM (Tech-Electrical) ended the meeting with vote of thanks.

Please note:

(i) This document (minutes of the Pre-Bid Meeting) shall form a part of the tender.

(ii) Rest of the terms and conditions and specifications of the bid document shall continue to remain the same.

(iii) The above amendments/ clarifications are issued for the information of all the intending bidders.

(iv) The submission of bid by the firm shall be construed to be in conformity to the bid document and amendments/ clarifications given above.

[ad_2]

CLICK HERE TO APPLY

Leave a comment

Centrum Financial Services to set up SFB to take over PMC

Banking & Finance

[ad_1]

Read More/Less


Centrum Financial Services Ltd (CFSL) has initiated the process of establishing a small finance bank (SFB), which will eventually take over the scam-hit Punjab and Maharashtra Co-operative (PMC) Bank, by taking steps towards creating necessary infrastructure in this regard, according to the Reserve Bank of India (RBI).

The RBI had accorded “in-principle” approval to CFSL on June 18, 2021, to set up an SFB. This approval was in specific pursuance to CFSL’s offer in response to PMC Bank’s Expression of Interest (EoI) notification.

CFSL, which is a non-banking finance company, and Resilient Innovations Pvt Ltd (BharatPe), which is a fintech company, are equal partners in setting up the SFB.

Petition nixed

In an additional affidavit filed in the Delhi High Court in the Bejon Kumar Mishra (petitioner) versus Union of India & Others (Respondents) case, RBI said: “It is envisaged that Central government will be approached for approval and notification of a scheme of amalgamation of PMC Bank with the proposed SFB under Section 45 of the Banking Regulation Act after the proposed SFB starts functioning.” The RBI has sought the dismissal of the writ petition filed by Mishra

The central bank submitted that all efforts are underway to expedite the resolution of PMC Bank in the best possible manner and in the larger interest of all depositors of that Bank.

Also read: Depositors of PMC Bank still await clarity on withdrawals

Mumbai-based PMC Bank was placed under All Inclusive Directions with effect from close of business on September 23, 2019, on account of major financial irregularities (fraud perpetrated by a real estate group), failure of internal control and systems of the bank and wrong/ under-reporting of its exposures under various off-site surveillance reports.

The bank has been under directions for close to two years now and depositors, especially senior citizens, have been finding it difficult to make ends meet.

Deposit withdrawal has been capped at ₹1 lakh per depositor during the entire period the bank is under directions.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

Reserve Bank of India – Tenders

Tenders

[ad_1]

Read More/Less


E-Tender No. RBI/Nagpur/Estate/42/21-22/ET/55

Please refer to the tender notice for the captioned tender published on the Bank’s website on July 26, 2021 inviting application from eligible bidders through e-tender on MSTC Portal (https://www.mstcecommerce.com/eprochome/rbi/).

2. The last date for the tender submission has been extended till 02:00 PM of August 31, 2021 and Part I of the tender will be opened at 03:00 PM on August 31, 2021.

Corrigendum shall be treated as the part of the tender document. All other terms and conditions mentioned in the tender remain unchanged.

Regional Director
Reserve Bank of India
Nagpur

August 23, 2021

[ad_2]

CLICK HERE TO APPLY

Leave a comment

RBI wants NAFCUB to expedite setting up of umbrella organisation to support urban co-operative banks

Banking & Finance

[ad_1]

Read More/Less


The National Federation of Urban Co-operative Banks and Credit Societies Ltd (NAFCUB) should expedite the process of setting up the Umbrella Organisation (UO) so that it can provide support with regard to IT infrastructure, capital, liquidity, and training, to its member urban co-operative banks (UCBs), according to a Reserve Bank of India panel.

The small UCBs with the support of the UO can emerge the neighbourhood bank of choice, the RBI’s Expert Committee on UCBs, headed by former Deputy Governor of RBI NS Vishwanathan, said in a report.

“Therefore, the Committee suggests that the grant of new licences for setting up UCBs could be considered after the UO satisfactorily emerges as a stabilising arrangement,” it added.

The committee felt that in the long run, the UO may take up the role of a Self-Regulatory Organization (SRO) for smaller UCBs, where the UO could run an independent audit/ inspection and supervisory division that may conduct both offsite and onsite supervision.

The branding partner

The panel observed that the UO should be the branding partner for the member UCBs and both because of this and the business model itself, it has a significant systemic role.

The committee noted that membership of UO, once it becomes operational, would mitigate market and operational risks for UCBs in lower tiers to a certain extent and, therefore, the capital to risk-weighted assets ratio (CRAR) requirement can be brought down. However, a glide path should be provided to UCBs to achieve the higher CRAR.

UO membership

The report said that if a Tier-1 UCB (with less than Rs 100 crore deposits) meets the minimum net worth criteria of ₹2 crore for those having area of operation within a district/ ₹5 crore for other Tier-1 banks and is a member of UO, the minimum CRAR could be pegged at 9 per cent.

For Tier-1 UCBs, which meets minimum net worth criteria but is not a member of UO, and vice-versa, the minimum CRAR could be 11.5 per cent.

If a Tier-1 UCB does not meet the net worth criteria and is not a member of UO, the CRAR could go up to 14 per cent.

For Tier-2 UCBs (deposits between ₹100 crore and up to ₹1,000 crore), the minimum CRAR could be 15 per cent on credit risk. The minimum CRAR requirement may be reduced by one per cent point upon the bank becoming a member of the UO.

For Tier-3 UCBs (deposits between ₹1,000 crore and up to ₹0,000 crore), the minimum CRAR could be 15 per cent as applicable to small finance banks.

For Tier 4 UCBs (deposits above ₹10,000 crore), the minimum CRAR could as per Basel III prescriptions as applicable to universal banks.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,
1 … 33 34 35 36 37 … 121