Read this week in our update- RBI cautions the public against unauthorized forex trading platforms and cancels the license of Independence Co-operative Bank Limited, Nashik, Maharashtra.
Highlights of the Week:
RBI Cautions Against Unauthorized Forex Trading Platforms
RBI cancels the license of Independence Co-operative Bank Limited, Nashik, Maharashtra
1.1 RBI Cautions Against Unauthorized Forex Trading Platforms
The Reserve Bank of India (RBI) has observed misleading advertising of unlicensed electronic trading platforms (ETPs) offering forex trading services to Indian residents, including on social media platforms, search engines, over-the-top (OTT) platforms, gaming apps, and other similar platforms. Further, such unlicensed ETPs/portals have been accused of committing fraud, with many citizens losing money as a result of such trading/schemes. Hence, RBI has cautioned the public against undertaking forex transactions on unregistered ETPs or remitting/depositing funds for such transactions. Additionally, RBI website has a list of authorized ETPs.[1]
1.2 RBI cancels the license of Independence Co-operative Bank Limited, Nashik, Maharashtra
RBI has canceled the license of Independence Co-operative Bank Ltd. (ICBL), Nashik, Maharashtra. As a result, ICBL shall cease to conduct banking activity on February 3, 2022. The Maharashtra Commissioner for Cooperation and Registrar of Cooperative Societies has also been asked to issue an order for the bank’s winding up and the appointment of a liquidator.[2]
1.3 RBI penalizes banks
RBI has imposed monetary penalty on:
|
Sl. No. |
Name of the Bank |
Penalty Imposed (in INR) |
Reason |
|
1. |
Navbharat Co-operative Urban Bank Ltd., Hyderabad, Telengana[3]
|
12 (twelve) lakhs |
Contravention of/non-compliance with (i) directions issued under Supervisory Action Framework, (ii) directions relating to Basic Cybersecurity Framework, and (iii) requirements on IS Audit and Internal Audit Compliance. |
|
2. |
Dharamvir Sambhaji Urban Co-operative Bank Ltd., Pune[4]
|
1 (one) lakh |
Contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs. |
|
3. |
National Co-operative Bank Ltd., Mumbai[5]
|
2 (two) lakhs |
Contravention of/non-compliance with the directions issued by RBI on Know Your Customers (KYC) Directions, 2016. |
|
4. |
Hutatma Sahakari Bank Ltd., Walwa, Sangli[6]
|
2 (two) lakhs |
Contravention of/non-compliance with the directions issued by RBI on Exposure Norms and Statutory / Other Restrictions – UCBs. |
For further information, please contact:
Kritika Krishnamurthy, Partner, AK & Partners
kritika@akandpartners.in
[1] Press Release: 2021-2022/1660, Reserve Bank of India, February 03, 2022 [2] Press Release: 2021-2022/1662, Reserve Bank of India, February 03, 2022
[3] Press Release: 2021-2022/1640, Reserve Bank of India, January 31, 2022
[4] Press Release: 2021-2022/1643, Reserve Bank of India, January 31, 2022
[5] Press Release: 2021-2022/1644, Reserve Bank of India, January 31, 2022
[6] Press Release: 2021-2022/1645, Reserve Bank of India, January 31, 2022
