Category: Press Releases

The expression ‘ Banking System ‘ or ‘ Banks ‘ means the banks and any other financial institution referred to in sub-clauses (i) to (vi) of clause (d) of the explanation below Section 42(1) of the Reserve Bank of India Act, 1934.

No. of Scheduled Commercial Banks as on Current Fortnight:132

Ajit Prasad
Director   

Press Release : 2020-2021/1022

Today, the Reserve Bank of India (RBI) has, vide order dated January 28, 2021 cancelled the licence of Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra. Consequently, the bank ceases to carry on banking business, with effect from the close of business on January 29, 2021. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

The Reserve Bank cancelled the licence of the bank as:

1. The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of section 11(1) and section 22 (3) (d) read with section 56 of the Banking Regulation Act, 1949.

2. The bank has failed to comply with the requirements of section 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with section 56 of the Banking Regulation Act, 1949;

3. The continuance of the bank is prejudicial to the interests of its depositors;

4. The bank with its present financial position would be unable to pay its present depositors in full; and

5. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

2. Consequent to the cancellation of its licence, Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect.

3. With the cancellation of licence and commencement of liquidation proceedings, the process of paying the depositors of Shivam Sahakari Bank Ltd, Ichalkaranji, Kolhapur, Maharashtra as per the DICGC Act, 1961 will be set in motion. As per the data submitted by the bank, more than 99% of the depositors are fully insured by Deposit Insurance and Credit Guarantee Corporation (DICGC). On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees Five lakh only) from the DICGC subject to the provisions of the DICGC Act, 1961.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2020-2021/1019

In terms of GoI notification F.No.4(4)-B(W&M)/2020 and RBI circular IDMD.CDD.No.730/14.04.050/2020-21, dated October 09, 2020, the Sovereign Gold Bond Scheme 2020-21 – Series XI will be open for subscription for the period from February 01, 2021 to February 05, 2021. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. January 27 – 29, 2021 works out to ₹4,912/- (Rupees Four thousand nine hundred and twelve only) per gram of gold.

Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹4,862/- (Rupees Four thousand eight hundred and sixty two only) per gram of gold.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2020-2021/1018

Reserve Bank of India announces the auction of Government of India Treasury Bills as per the following details:

The sale will be subject to the terms and conditions specified in the General Notification F.No.4(2)-W&M/2018 dated March 27, 2018 along with the Amendment Notification No.F.4(2)-W&M/2018 dated April 05, 2018, issued by Government of India, as amended from time to time. State Governments, eligible Provident Funds in India, designated Foreign Central Banks and any person or institution specified by the Bank in this regard, can participate on non-competitive basis, the allocation for which will be outside the notified amount. Individuals can also participate on non-competitive basis as retail investors. For retail investors, the allocation will be restricted to a maximum of 5 percent of the notified amount.

The auction will be Price based using multiple price method. Bids for the auction should be submitted in electronic format on the Reserve Bank of India’s Core Banking Solution (E-Kuber) system on Wednesday, February 03, 2021, during the below given timings:

Results will be announced on the day of the auction.

Payment by successful bidders to be made on Thursday, February 04, 2021.

Only in the event of system failure, physical bids would be accepted. Such physical bids should be submitted to the Public Debt Office (email; Phone no: 022-22632527, 022-22701299) in the prescribed form obtainable from RBI website (https://www.rbi.org.in/Scripts/BS_ViewForms.aspx) before the auction timing ends. In case of technical difficulties, Core Banking Operations Team should be contacted (email; Phone no: 022-27595666, 022-27595415, 022-27523516). For other auction related difficulties, IDMD auction team can be contacted (email; Phone no: 022-22702431, 022-22705125).

Ajit Prasad
Director   

Press Release: 2020-2021/1017

The above information can be accessed on Internet at https://wss.rbi.org.in/

The concepts and methodologies for WSS are available in Handbook on WSS (https://rbi.org.in/scripts/PublicationsView.aspx?id=15762).

Time series data are available at https://dbie.rbi.org.in

Ajit Prasad
Director   

Press Release: 2020-2021/1016

Data on sectoral deployment of bank credit collected from select 33 scheduled commercial banks, accounting for about 90 per cent of the total non-food credit deployed by all scheduled commercial banks, for the month of December 2020 are set out in Statements I and II.

Highlights of the sectoral deployment of bank credit are given below:

• On a year-on-year (y-o-y) basis, non-food bank credit growth stood at 5.9 per cent in December 2020 as compared to 7.0 per cent in December 2019.

• Credit growth to agriculture and allied activities accelerated to 9.4 per cent in December 2020 from 5.3 per cent in December 2019.

• Credit to industry contracted by 1.2 per cent in December 2020 as compared with 1.6 per cent growth in December 2019 mainly due to contraction in credit to large industries by 2.4 per cent as compared with 1.8 per cent growth a year ago. Credit to medium industries registered a robust growth of 15.3 per cent in December 2020 as compared to 2.5 per cent a year ago and credit to micro & small industries registered an accelerated growth of 1.2 per cent in December as compared to 0.1 per cent a year ago.

• Within industry, credit to ‘food processing’, ‘gems & jewellery’, ‘petroleum, coal products & nuclear fuels’, ‘leather & leather products’, ‘paper & paper products’, ‘mining & quarrying’, ‘glass & glassware’ and ‘wood & wood products’ registered accelerated growth in December 2020 as compared to the growth in the corresponding month of the previous year. However, credit growth to ‘rubber plastic & their products’, ‘cement & cement products’, ‘all engineering’, ‘beverages & tobacco‘, ‘infrastructure’, ‘basic metal & metal products’ and ‘construction’ decelerated/contracted.

• Credit growth to the services sector accelerated to 8.8 per cent in December 2020 from 6.2 per cent in December 2019 mainly on the back of acceleration in credit growth to ‘transport operators’ and ‘trade’.

• Personal loans registered a decelerated growth of 9.5 per cent in December 2020 as compared with 15.9 per cent growth in December 2019. Vehicle loans continued to perform well registering an accelerated growth of 7.8 per cent in December 2020 as compared to 7.2 per cent a year ago.

Ajit Prasad
Director   

Press Release: 2020-2021/1015