India – AKP Banking & Finance Digest- January 17, 2022.

Read this week in our update- RBI releases Discussion Paper on Prudential Norms for Classification, Valuation and Operations of Investment Portfolio of Commercial Banks; 28th Meeting of the FSDC Sub-Committee and multiple NFBCs and HFCs surrender license

Highlights of the Week:

Nine Non-Banking Financial Companies (including one Housing Finance Company) surrender their Certificate of Registration

RBI releases Discussion Paper on Prudential Norms for Classification, Valuation and Operations of Investment Portfolio of Commercial Banks

28th Meeting of the FSDC Sub-Committee over Video Conference

RBI releases Annual Report of Ombudsman Schemes, 2020-21

1.1 RBI releases Annual Report of Ombudsman Schemes, 2020-21

The Reserve Bank of India (RBI) has released the Annual Report of the Ombudsman Schemes (Annual Report) for the year 2020-21, for a period of nine-month, i.e., July 1, 2020 to March 31, 2021. The Annual Report covers the activities under the Banking Ombudsman Scheme, 2006 (BOS), the Ombudsman Scheme for Non-Banking Financial Companies, 2018 (OSNBFC), Ombudsman Scheme for Digital Transactions, 2019 (OSDT), major developments and the way forward in the area of consumer protection.[1]

1.2 28th Meeting of the FSDC Sub-Committee over Video Conference

RBI has held a virtual meeting of the Financial Stability and Development Council (FSDC) Sub Committee (FSDC-SC) on January 13, 2022. Shri Shaktikanta Das, Governor, RBI was chairman of the meeting. FSDC-SC reviewed the major developments in the global and domestic economy as well as in various segments of the financial system and discussed the assessments of members about the scenario emerging from the third wave of the COVID-19 pandemic.[2]

1.3 RBI releases Discussion Paper on Prudential Norms for Classification, Valuation and Operations of Investment Portfolio of Commercial Banks

RBI has released the Discussion Paper on Review of Prudential Norms for Classification, Valuation and Operations of Investment Portfolio of Commercial Banks (Discussion Paper). Banks, market participants and other stakeholders have been invited to send comments on the Discussion Paper by February 15, 2022.[3]

1.4 Nine Non-Banking Financial Companies (including one Housing Finance Company) surrender their Certificate of Registration

RBI has accepted the surrender of the certificate of registration (CoR) of eight non-banking financial companies (NBFCs) and have stopped transacting business of a non-banking financial institution.[4]

Further, Indie Homefin Private Limited housing finance company has surrendered the CoR granted by National Housing Bank (NHB) and shall neither transact the business of a housing finance institution nor of a non-banking financial institution with effect from November 23, 2021.

1.5 RBI penalizes Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana

RBI has imposed INR 1 (one) lakh monetary penalty on Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana[1] for contravention of/ non-compliance with provisions of Section 9 read with Section 56 Banking Regulation Act, 1949 and certain provisions of the directions issued by RBI contained in the Master Circular on Exposure Norms and Statutory / Other Restrictions – UCBs.

1.6 RBI extends directions to banks

RBI has extended the directions issued to:

[1] Press Release: 2021-2022/1533, Reserve Bank of India, January 12, 2022 [2] Press Release: 2021-2022/1538, Reserve Bank of India, January 13, 2022 [3] Press Release: 2021-2022/1548, Reserve Bank of India, January 14, 2022 [4] Press Release: 2021-2022/1539, Reserve Bank of India, January 13, 2022

[5] Press Release: 2021-2022/1520, Reserve Bank of India, January 10, 2022

[6] Press Release: 2021-2022/1519, Reserve Bank of India, January 10, 2022

[7] Press Release: 2021-2022/1524, Reserve Bank of India, January 11, 2022

[8] Press Release: 2021-2022/1553, Reserve Bank of India, January 17, 2022