Tag: Gujarat

Union finance minister Nirmala Sitharaman seeks greater coordination of bourses in GIFT, BFSI News, ET BFSI

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Clearing three proposals of the International Financial Services Centres Authority (IFSCA) on Saturday, Union finance minister Nirmala Sitharaman stated that greater coordination on certain aspects is needed among stock exchange authorities and different regulators for the development of GIFT City in Gandhinagar.

Clarifying that these aspects are not of major concerns, the FM who was on her maiden visit to the GIFT City, quickly added, “It is possible to sit around a table and sort them all out. That is the understanding that all of us have had (today).” The three proposals worth Rs 500 crore included sanctioning of Rs 269 crore for a supervisory technology fund for IT infrastructure, Rs 200 crore for IFSCA’s headquarter building in GIFT City and the FinTech scheme of Rs 45.75 crore. The FM was also informed that a bullion exchange will come up soon at the GIFT.

The FM, who was accompanied by Union ministers of state for finance Pankaj Chaudhary and Dr Bhagwat Kishanrao Karad as well as seven from the finance and corporate affairs ministries, listed out four points.

“First, the stock exchanges need to talk among themselves. Second, regulators, weather it is SEBI or RBI or insurance regulator (IRDAI) need to talk among themselves. Third, startups should be brought in and fourth the development of area outside IFSC (International Financial Services Centre) but within the GIFT City,” she said.

She suggested that the Gujarat government should engage with leading startups, not just those belonging to the fintech space, from Bengaluru, Hyderabad, Gurgaon among others and bring them to GIFT City, which will help create an ecosystem fora global financial hub at GIFT City.

Referring to the bilateral meetings with multinational business leaders during her visit to Washington in October for the World Bank meet, Sitharaman stated that several business leaders had then expressed their willingness to shift some of their core activities in different towns and cities in the US to India. “In that context, I did recommend to them that they must visit GIFT City,” said the FM,who shared the list of such companies with the authorities of GIFT City.

“Hopefully, an interaction and engagement with them will bring more business here,” added the FM.



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RBI imposes Rs 1 cr penalty on Cooperatieve Rabobank U.A., BFSI News, ET BFSI

Banking & Finance

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Reserve Bank of India (RBI) on Thursday said it has imposed a penalty of Rs 1 crore on Cooperatieve Rabobank U.A. for deficiencies in regulatory compliances.

The penalty has been imposed for contravention of certain provisions of the Banking Regulation Act, 1949 and directions related to ‘transfer to reserve funds’.

RBI said it conducted a statutory Inspection for Supervisory Evaluation (ISE) of the bank with reference to the bank’s financial position as on March 31, 2020.

Examination of the risk assessment report pertaining to the same, revealed contravention of the provisions of the Banking Regulation Act and the directions issued by RBI.

A show cause notice was issued to the bank.

“After considering the bank’s reply to the notice, oral submission made during the personal hearing and examination of additional submissions made by the bank, RBI came to the conclusion that the charge of contravention of… provisions of the Act and RBI directions was substantiated and warranted imposition of monetary penalty on the bank,” RBI said in a statement.

In another statement, RBI said a penalty of Rs 5 lakh has been imposed on Village Financial Services Ltd, Kolkata, for non-compliance with certain provisions of the Know Your Customer Directions, 2016.

The central bank, however, said the penalties are 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 banks with their customers.

On Wednesday, RBI imposed penalties on two co-operative banks for deficiencies in regulatory compliances.

It imposed penalty of Rs 13 lakh on Ahmednagar Merchant’s Cooperative Bank, Ahmednagar, Maharashtra, and Rs 2 lakh on The Mahila Vikas Co-operative Bank, Ahmedabad, Gujarat.



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AMNS India executes paperless bill discounting transaction in partnership with ICICI Bank, BFSI News, ET BFSI

Banking & Finance

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New Delhi: AMNS India on Sunday said its has executed “a paperless bill discounting transaction” in partnership with ICICI Bank. Gujarat-based ArcelorMittal Nippon Steel (AMNS) India said it is first such transaction in India.

The end-to-end electronic transaction, comprising digital issuance of letter of credit (LC), advisory and presentment of documents took place among AMNS India, its Baroda-based customer Vijay Tanks and ICICI Bank, the steel maker said in a statement.

“In a step forward for digitising trade payments, AMNS India today (Sunday) announced it has executed the country’s first domestic paperless bill discounting transaction in partnership with ICICI Bank,” it said.

ICICI Bank was the intermediary between the buyer and seller, the statement said.

The bank’s branch in Baroda, Gujarat, issued an LC for the buyer Vijay Tanks, while its branch at Hazira advised and negotiated for the seller AMNS India, it said.

The terms of the LC required AMNS India to digitally present the documents to ICICI Bank evidencing the transaction flow.

In the statement, AMNS India Deputy Chief Financial Officer Amit Harlalka said it is a positive step towards enabling the digitisation of trade payments and provides for better working capital efficiency for the company and trade partners.

“This transaction is seen by many in banking and business as a prelude to the blockchain, a technology even more robust in security, identity and transparency, and which is now being widely studied for possible adoption by Indian banks,” he said.

ICICI Bank Head (Transaction Banking and SME Group) Ajay Gupta said, “We are glad to have partnered with AMNS India to execute India’s first paperless bill discounting transaction. The bank continues to play a pioneering role in re-imagining digital and cashless payments in India.”

This innovative solution has the potential to enable greater velocity of trades at lower cost for customers, AMNS India said.

In paper-based trades, physical goods at times arrive before their supporting documents, leading to corporates incurring demurrage charges. This will be a thing of the past with such digital developments, it said.

AMNS India further said it actively encourages the digitisation of processes across all its work streams from finance to sales to operations.

The COVID-19 pandemic forced companies in steel sector and beyond to manage their manufacturing and administration in different ways, and accelerated the adoption of digital technology, the statement said.



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RBI imposes Rs 2 lakh penalty on Dhrangadhra People’s Co-op Bank, BFSI News, ET BFSI

Banking & Finance

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The Reserve Bank of India (RBI) on Tuesday imposed a penalty of Rs 2 lakh on Dhrangadhra People‘s Co-operative Bank, Surendranagar, Gujarat, for non-compliance with certain norms. The RBI said the penalty has been imposed for non-compliance with RBI directions on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Depositor Education and Awareness Fund Scheme 2014’.

Giving details, the RBI said the statutory inspection of the bank conducted by it with reference to the bank’s financial position as on March 31, 2018, and the inspection report thereto, revealed, inter alia, non-compliance with the directions.

Subsequently, a notice was issued to the Dhrangadhra People’s Co-operative Bank.

“After considering the bank’s reply to the notice and oral submissions made during the personal hearing, the RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty,” the RBI said.

The central bank added that 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 bank with its customers.



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Banks in Gujarat to stay shut for 4 days in March, BFSI News, ET BFSI

Banking & Finance

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If you have an account with a public sector bank, then avoid scheduling your banking activities between March 13 and March 16.

Around 55,000 public sector bank employees from 18,000 branches from across Gujarat are planning to participate in the nationwide bank strike on March 15 and 16, according to the MahaGujarat Bank Employees’ Association.

With March 13 being a second Saturday and March 14 being a Sunday, banks are expected to remain shut over the weekend.

The United Forum of Bank Unions, an umbrella body of nine unions, has given a call for the two-day strike against the proposed privatization of two-state owned lenders.

In an UFBU meeting held in Hyderabad on Tuesday, various announcements made in the union budget regarding reform measures like privatization of IDBI Bank and two public sector banks, setting up a bad bank, disinvestment in LIC, privatization of one general insurance company, allowing FDI in insurance sector up to 74%, aggressive disinvestment and sale of public sector undertakings.

On February 19, a day-long dharna will be held by bank employees in all state capitals whereas relay demonstrations will be held from February 20 to March 10 across various towns and districts of Gujarat. According to bankers, the strike will bring transactions worth at least Rs 60,000 crore to a standstill.



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