Category: Press Releases

Ajit Prasad
Director   

Press Release: 2021-2022/412

Today, the Reserve Bank released the preliminary estimates of Household Financial Savings for Q3: 2020-21 and Household Debt-GDP Ratio at end-December 2020 on its website under the tab “Statistics” => “Data Releases” => “Quarterly”.

Highlights:

• The preliminary estimate of household financial savings is placed at 8.2 per cent of GDP in Q3:2020-21, exhibiting a sequential moderation for the second consecutive quarter after having spiked in the pandemic-hit first quarter of 2020-21. The moderation was driven by a significant weakening in the flow of household financial assets, which more than offset the moderation in the flow of household financial liabilities.

• The ratio of household (bank) deposits to GDP declined to 3.0 per cent in Q3:2020-21 from 7.7 per cent in the previous quarter.

• Despite higher borrowings from banks and housing finance companies, the flow in household financial liabilities was marginally lower in Q3: 2020-21 following a marked decline in borrowings from non-banking financial companies.

• Household debt to GDP ratio, which is based on select financial instruments, has been increasing steadily since end-March 2019. It rose sharply to 37.9 per cent at end-December 2020 from 37.1 per cent at end-September 2020.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/411

The Result of the auction of State Development Loans for 10 State Governments held on June 22, 2021.

Ajit Prasad
Director   

Press Release: 2021-2022/409

Ajit Prasad
Director   

Press Release: 2021-2022/408

The Reserve Bank of India (RBI) has imposed, by an order dated June 21, 2021, a monetary penalty of ₹ 12 lakh (Rupees Twelve lakh only) on Mogaveera Co-operative Bank Limited, Mumbai (the bank) for contravention of the provisions of section 26-A read with section 56 of the Act, directions issued by the RBI on Maintenance of Deposit Accounts and Know Your Customer (KYC) Directions. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949 (the Act), taking into account the failure of the bank to adhere to the aforesaid directions issued by the RBI.

This action 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 bank with its customers.

Background

The inspection report of the bank, based on its financial position as on March 31, 2019, revealed that the bank had (i) not fully transferred unclaimed deposits to Depositor Education and Awareness (DEA) Fund (ii) not conducted annual review of inoperative accounts (iii) no system of periodic review of risk categorization of accounts and (iv) customers with multiple Unique Customer Identification Codes (UCICs) for multiple accounts and also multiple customers with same UCICs. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with and contravention of the provisions of the Act and the directions issued under the Act, as stated therein.

After considering the bank’s reply to the notice, the RBI came to the conclusion that the aforesaid charges of non-compliance with and contravention of the provisions of the Act and the directions issued under the Act were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/405

The Reserve Bank of India (RBI) has imposed, by an order dated June 21, 2021, a monetary penalty of ₹1 lakh (Rupees One lakh only) on The Baramati Sahakari Bank Limited, Baramati (the bank) for contravention of the directions issued by RBI on Exposure Norms and Statutory/Other Restrictions – UCBs. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by the RBI.

The action 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 bank with its customers.

Background

The inspection report of the bank based on its financial position as on March 31, 2019, revealed that the bank had exceeded prudential inter-bank (single bank) exposure limit. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank’s reply to the notice, oral submissions made during the personal hearing, the RBI came to the conclusion that the aforesaid charge of non-compliance with the RBI directions was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/404

The Reserve Bank of India (RBI) has imposed, by an order dated June 21, 2021, a monetary penalty of ₹10 lakh (Rupees Ten lakh only) on Indapur Urban Cooperative Bank Ltd., Indapur (the bank) for contravention of the directions issued by the RBI on Exposure Norms and Statutory / Other Restrictions – UCBs and Know Your Customer (KYC) Directions. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47A(1)(c) read with Section 46(4)(i) and Section 56 of the Banking Regulation Act, 1949, taking into account the failure of the bank to adhere to the aforesaid directions issued by RBI.

This action 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 bank with its customers.

Background

The inspection report of the bank, based on its financial position as on March 31, 2019, revealed that the bank (i) had not adhered to the aggregate ceiling on unsecured advances (ii) did not have process for periodical review of risk categorization of accounts and (iii) did not have a robust system in place to generate alerts whenever transactions were inconsistent with the risk categorization of customers. Based on the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with the directions.

After considering the bank’s reply to the notice, the RBI came to the conclusion that the aforesaid charges of non-compliance with the RBI directions were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/406

Today, the Reserve Bank released its quarterly house price index (HPI)¹ (base: 2010-11=100) for Q4:2020-21, based on transaction-level data received from housing registration authorities in ten major cities (viz., Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur, Kanpur, Kochi, Kolkata, Lucknow and Mumbai). Time series data on all-India and city-wise HPIs are available at the Bank’s Database of Indian Economy (DBIE) portal (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics > Real Sector > Price & Wages > Quarterly).

Highlights:

• All-India HPI increased (y-o-y) by 2.7 per cent in Q4:2020-21 vis-a-vis 3.9 per cent growth a year ago; HPI growth showed large variation across major cities, from an increase of 15.7 per cent (Bengaluru) to a contraction of (-) 3.6 per cent (Jaipur).

• On a sequential (q-o-q) basis, all-India HPI growth rate moderated to 0.2 per cent in Q4:2020-21; Delhi, Bengaluru, Kolkata and Jaipur recorded a sequential decline in HPI, whereas it increased for other cities.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/403