Draft rule for setting up PSO regulator opens for comments

The RBI will reserve the right to clear the appointment of important positions in the governing body of the SRO. The Reserve Bank of India (RBI) on Tuesday released the draft framework for recognition of a self-regulatory organisation (SRO) for payment system operators. The organisation will be responsible for setting and enforcing rules for payment systems operators (PSOs), the central bank said. “As the payment ecosystem matures and as the number of payments systems proliferates, it becomes necessary, in the interest of optimal use of regulatory resources, that the payments industry develops industry standards in respect of system security, pricing practices, […]

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Divest governance of PSBs from govt, says former RBI deputy governor NS Vishwanathan

Privatisation is a bigger political decision and not an economic one alone, Vishwanathan said, adding that a bank holding company needs to be created first. (Representational image) Former Reserve Bank deputy governor N S Vishwanathan on Tuesday said there is a need to separate governance of state-run banks from the government and pitched for doing away with the nationalisation laws from which the executive derives its powers. Privatisation is a bigger political decision and not an economic one alone, Vishwanathan said, adding that a bank holding company needs to be created first. Vishwanathan, who was head of banking regulation, said the […]

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RBI releases framework for retail payments systems; invites applications from companies

“All entities eligible to apply as promoter/promoter group of the umbrella entity shall be owned and controlled by resident Indian citizens’,” it added. The Reserve Bank on Tuesday unveiled the framework for setting up umbrella entities for operating pan-India retail payments systems and invited applications from eligible companies by February 26, 2021. As per the framework, the companies with a net worth of over Rs 500 crore will be eligible to set up an umbrella entity which among other things will be permitted to set up, manage and operate new payment systems in the retail space comprising ATMs, White Label PoS, […]

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Capital needed for growth and provisioning: UCO Bank chief

Goel also said an uptick in credit demand has been witnessed. State-run UCO Bank has secured approvals from its board of directors and shareholders to raise Rs 3,000 crore capital this fiscal as the lender requires resources to achieve growth and provision for non-performing assets, an official said on Tuesday. The capital will be raised at an appropriate time either through public offer or Qualified Institutional Placement (QIP) or preferential issue, UCO Bank MD and CEO A K Goel said. “We need capital for both growth and provisioning. Demand for credit is slowly recovering,” he said. The bank’s provision coverage ratio […]

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Loan moratorium may not extend after 31 August deadline as KV Kamath panel gear up for restructuring

The regulator and the banks are now awaiting the new modalities and the Reserve Bank of India may not extend the moratorium period for loans. The 31st August deadline for loan moratorium is unlikely to get extended as veteran banker KV Kamath-led panel is all set to come out with the modalities of restructuring of loans for both corporates and individuals. The regulator and the banks are now awaiting the new modalities and the Reserve Bank of India may not extend the moratorium period for loans, The Indian Express reported citing government and industry sources. In fact, banks are likely to […]

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Citi gives away $900 million by mistake, now three lenders refuse to return the money

The mistaken payment was first reported by LevFin Insights. By Katherine Doherty and Jenny Surane Even for Citigroup Inc., it was big money. On Wednesday, loan operations staff at the New York bank wired $900 million, seemingly on behalf of Revlon Inc., to lenders of the troubled cosmetics giant controlled by billionaire Ron Perelman. It was a mistake for the ages — a “clerical error,” as Citigroup told lenders — that’s now plunged the bank into a battle between the Perelman empire and a corps of sharp-edged investment funds that have become its impatient creditors. One financier involved likened the surprise […]

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Partial credit guarantee: Government eases rules to benefit more NBFCs 

The government has said AA-rated papers and below, including unrated papers, will be eligible for investment. The government on Monday extended the validity of its partial credit guarantee scheme (PCGS) 2.0 by three months to November 19 to improve liquidity for low-rated shadow lenders and enabled state-run banks to raise their AA and AA- investment sub-portfolio under this scheme by another Rs 11,250 crore. The total facility remains unchanged at Rs 45,000 crore. The finance ministry said AA and AA- investment sub-portfolio should not exceed 50% (instead of 25%, or Rs 11,250 crore, mandated earlier) of the total portfolio of bonds […]

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US law firm to investigate HDFC Bank’s securities claims on behalf of investors

HDFC Bank said that it was unaware of the development till media outlets reached out to it for a response on the matter. US-based Rosen Law Firm said late on Sunday night that it will launch an investigation of potential securities claims on behalf of shareholders of HDFC Bank. The firm cited media reports about the bank’s probe into malpractices at its vehicle-financing arm, its financial underperformance in Q1FY21 and delayed reporting to a credit bureau. “Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of HDFC Bank resulting from […]

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RBI lifts restrictions on MD & CEO’s remuneration: Bandhan Bank

“Consequent to the above, all the regulatory restrictions imposed by the RBI vide letter dated September 19, 2018, on the bank are now withdrawn,” it added. Bandhan Bank on Monday said the Reserve Bank of India (RBI) has lifted the regulatory restriction imposed on the remuneration of its managing director and CEO Chandra Shekhar Ghosh, as the holding company brought the shareholding in the bank to 40% to comply with licensing conditions earlier this month. The private sector bank’s holding company, Bandhan Financial Holdings (BFHL), on August 3 diluted 20.95% equity shares in the lender to bring its shareholding to 40% […]

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