Press Releases

The Reserve Bank of India (RBI) has imposed, by an order dated September 01, 2023, a monetary penalty of ₹1.00 Lakh (Rupees One Lakh only) on Maninagar Co-operative Bank Ltd., Ahmedabad, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Co-operative Banks - Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in the RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949.

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 statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2022, and examination of the Inspection Report, Risk Assessment Report and all correspondence related thereto revealed, inter alia, that the bank had (i) breached prudential inter-bank counterparty exposure limit, and (ii) not paid interest on overdue term deposits from the date of maturity till the date of repayment at the rate applicable to savings deposits or at the contracted rate of interest, whichever is lower. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions, as stated therein.

After considering the bank’s reply to the notice and oral submissions made by it during the personal hearing, 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: 2023-2024/1031

The result of the auction of State Government Securities held on October 03, 2023 is as under: (Amount in ₹ Crore) ANDHRA PRADESH 2034ANDHRA PRADESH 2041ASSAM 2033BIHAR 2031 Notified Amount 1000100010002000 Tenure1118108 Competitive Bids Received (i) No.38213367 (ii) Amount3015320522804745 Cut-off Yield (%)7.607.507.627.62 Competitive Bids Accepted


 

(i) No.1812756

(ii) Amount989.868999.961979.9071964.682

Partial Allotment Percentage of Competitive Bids


 

(i) Percentage43.894499.996162.80432.3048

(ii) No.(3 bids)(1 bid)(2 bids)(6 bids)

Non - Competitive Bids Received


 

(i) No.3236

(ii) Amount10.1320.03920.09335.318

Non-Competitive Price (₹)100.21100.00100.44100.24

Non-Competitive Bids Accepted


 

(i) No.3236

(ii) Amount10.1320.03920.09335.318

Partial Allotment Percentage of Non-Competitive Bids


 

(i) Percentage----

(ii) No.----

Weighted Average Yield (%)7.57227.50007.55597.5797

Total Allotment Amount1000100010002000

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted Average Rate Range A. Overnight Segment (I+II+III+IV)0.00-- I. Call Money0.00-- II. Triparty Repo0.00-- III. Market Repo0.00-- IV. Repo in Corporate Bond0.00 B. Term Segment I. Notice Money**0.00-- II. Term Money@@0.00-- III. Triparty Repo0.00-- IV. Market Repo0.00-- V. Repo in Corporate Bond0.00-- RBI OPERATIONS@ Auction DateTenor (Days)Maturity DateAmountCurrent Rate / Cut off Rate C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF) I. Today's Operations 1. Fixed Rate 2. Variable Rate&

  (I) Main Operation

     (a) Repo

     (b) Reverse Repo

  (II) Fine Tuning Operations

     (a) Repo

     (b) Reverse Repo

3. MSFMon, 02/10/20231Tue, 03/10/2023298.006.75

4. SDFΔMon, 02/10/20231Tue, 03/10/20239,737.006.25

5. Net liquidity injected from today's operations [injection (+)/absorption (-)]*

-9,439.00

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg)Weighted Average Rate Range A. Overnight Segment (I+II+III+IV)33,345.906.415.50-6.85 I. Call Money964.406.275.75-6.85 II. Triparty Repo32,342.306.426.00-6.85 III. Market Repo39.206.365.50-6.50 IV. Repo in Corporate Bond0.00-- B. Term Segment I. Notice Money**20.006.406.40-6.40 II. Term Money@@0.00-- III. Triparty Repo10.006.256.25-6.25 IV. Market Repo0.00-- V. Repo in Corporate Bond0.00-- RBI OPERATIONS@ Auction DateTenor (Days)Maturity DateAmountCurrent Rate / Cut off Rate C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF) I. Today's Operations 1. Fixed Rate

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg)Weighted Average RateRange A. Overnight Segment (I+II+III+IV)25,282.496.695.60-6.95 I. Call Money3,310.456.435.60-6.80 II. Triparty Repo18,243.006.796.70-6.95 III. Market Repo3,729.046.446.25-6.95 IV. Repo in Corporate Bond0.00-- B. Term Segment I. Notice Money**9,528.906.865.60-6.95 II. Term Money@@74.00-6.80-6.93 III. Triparty Repo290,928.906.806.70-7.00 IV. Market Repo140,822.196.820.02-6.95 V. Repo in Corporate Bond0.00-- RBI OPERATIONS@ Auction DateTenor (Days)Maturity DateAmountCurrent Rate / Cut off Rate C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF) I. Today's Operations 1. Fixed Rate 2. Variable Rate&

  (I) Main Operation

     (a) Repo

     (b) Reverse Repo

  (II) Fine Tuning Operations

     (a) Repo

     (b) Reverse Repo

3. MSFFri, 29/09/20234Tue, 03/10/2023150,692.006.75

4. SDFΔFri, 29/09/20234Tue, 03/10/202359,782.006.25

5. Net liquidity injected from today's operations [injection (+)/absorption (-)]*

90,910.00

The value of exports and imports of services during August 2023 is given in the following table. International Trade in Services (US$ Million) MonthReceipts (Exports)Payments (Imports) April – 202325,781 (7.2)13,959 (-0.7) May – 202326,997 (7.4)15,881 (4.5) June – 202327,796 (3.3)15,609 (-1.0) July – 202326,228 (8.1)13,754 (-2.2) August – 202328,719 (8.4)15,103 (-0.8)

The Reserve Bank of India has today released the data on External Commercial Borrowings (ECB), Foreign Currency Convertible Bonds (FCCB) and Rupee Denominated Bonds (RDB) both, through Automatic Route and Approval Route, for the month of August 2023.

Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1037

Sr. NoStateAmount to be raised (₹ Crore)Amount Accepted (₹ Crore)Cut off Yield (%)Tenure (Year) 1Andhra Pradesh100010007.6011 100010007.5018 2Assam100010007.6210 3Bihar200020007.628 4Chhattisgarh100010007.548 5Haryana5005007.5310 100010007.5912 6Kerala100010007.4922 7Madhya Pradesh200020007.5512 100010007.5115 8Punjab150015007.6712 9Rajasthan100010007.5410 10Tamil Nadu100010007.5210 11Telangana100010007.559 100010007.4921 12Uttar Pradesh300030007.5612 13Uttarakhand5005007.5410 14West Bengal200020007.5916 TOTAL22,50022,500
Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1029

The Reserve Bank of India (RBI) had announced the withdrawal of ₹2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. In order to complete the exercise in a time bound manner and to provide adequate time to members of the public, the banks were advised to provide deposit and / or exchange facility for ₹2000 banknotes until September 30, 2023. The exchange facility was also made available at the 19 Regional Offices (ROs) of RBI having Issue Departments (RBI Issue Offices)1. The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases.

Government of India (GOI) has announced the sale (re-issue) of three dated securities for a notified amount of ₹30,000 crore as per the following details: Sr No    Security    Date of Repayment    Notified Amount(₹ crore)    GoI specific Notification  Auction Date Settlement Date 1 7.06% GS 2028 Apr 10, 2028 7,000 F.No.4(3)-B(W&M)/2023 dated September 29, 2023 October 06, 2023 (Friday) October 09, 2023 (Monday) 2 7.18% GS 2033 Aug 14, 2033 13,000

(Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume(One Leg)Weighted Average RateRange A. Overnight Segment (I+II+III+IV)28,923.546.785.00-7.24 I. Call Money841.006.595.80-6.85 II. Triparty Repo27,261.006.785.00-7.24 III. Market Repo821.546.786.20-6.90

The 28th Meeting of the Standing Advisory Committee (SAC) to review the flow of credit to Micro, Small and Medium Enterprises (MSME) sector was held under the chairmanship of Shri Swaminathan J, Deputy Governor, Reserve Bank of India on September 29, 2023 in Lucknow. The meeting was attended by Senior Officials from Ministry of MSME and Department of Financial Services, Ministry of Finance, Government of India; Chairman, SIDBI, Executive Director, RBI, Senior Management of major banks and NABARD, senior executives of Credit Guarantee Fund Trust for Micro and Small Enterprises, National Credit Guarantee Trustee Company Limited, Khadi & Village Industries Commission, Indian Banks’ Association and MSME Associations.The Deputy Governor in his keynote address emphasised the significant role of the MSME sector, particularly in the context of the goal of attaining developed economy status by 2047. He stressed the need for collaborative efforts on the part of all stakeholders to unlock the full potential of MSMEs. Deputy Governor highlighted various initiatives taken by the Reserve Bank such as the Account Aggregator (AA) framework, the digital Public Tech Platform to enable delivery of frictionless credit and the regulatory sandbox on MSME lending. He also dwelt on the important role of Industry Associations in information dissemination and capacity building among MSMEs.

1. Reserve Bank of India - Liabilities and Assets* (₹ Crore) Item20222023 Variation Sep. 23Sep. 15Sep. 22 Week Year 12345 4 Loans and Advances 4.1 Central Government 00000 4.2 State Governments 65151693913480-34596965 * Data are provisional. 2. Foreign Exchange Reserves* ItemAs on September 22, 2023Variation over WeekEnd-March 2023 Year

Today, the Reserve Bank of India (RBI), vide order dated September 28, 2023, has cancelled the licence of Lucknow Urban Co-operative Bank Ltd., Lucknow, Uttar Pradesh. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 29, 2023. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank cancelled the licence of the bank as: The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949; The bank has failed to comply with the requirements of Sections 22(3) (a), 22 (3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949;

In the underwriting auctions conducted on September 28, 2023 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:(₹ crore) Nomenclature of the SecurityNotified AmountMinimum Underwriting Commitment (MUC) AmountAdditional Competitive Underwriting Amount AcceptedTotal Amount underwrittenACU Commission Cut-off rate (paise per ₹100) 6.99% GS 20268,0004,0113,9898,0000.63

The Reserve Bank of India (RBI) has imposed, by an order dated September 22, 2023, a monetary penalty of ₹23 lakh (Rupees Twenty Three lakh only) on Saraswat Co-operative Bank Limited, Mumbai (the bank) for contravention of the provisions of Section 20(1)(b)(iii) read with Section 56 of the Banking Regulation Act, 1949 (BR Act), and the directions issued by RBI on ‘Loans and advances to directors, their relatives, and firms/concerns in which they are interested’. This penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the BR Act.

The Reserve Bank of India (RBI) has, by an order dated September 22, 2023, imposed a monetary penalty of ₹13 lakh (Rupees Thirteen lakh only) on Rajkot Nagarik Sahakari Bank Ltd., Rajkot (the bank) for non-compliance with the directions issued by RBI on ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.This action is based on deficiency 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 statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2021, and examination of the Risk Assessment Report, Inspection Report and all related correspondence pertaining to the same, revealed, inter alia, that the bank had failed to pay eligible interest at the time of repayment (i) on term deposits which matured on a Sunday / holiday / non-business working day, and paid on the succeeding working days, and (ii) on matured unpaid term deposits for the period they remained unclaimed with the bank. Consequently, 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 RBI directions, as stated therein.

The Reserve Bank of India (RBI) has, by an order dated September 22, 2023, imposed a monetary penalty of ₹25 lakh (Rupees Twenty Five lakh only) on Bassein Catholic Co-operative Bank Ltd., Vasai, Maharashtra (the bank) for contravention of the provisions of Section 20 read with Section 56 of the Banking Regulation Act, 1949 (BR Act), and the directions issued by RBI on ‘Exposure Norms and Statutory / Other Restrictions’. This penalty has been imposed in exercise of powers vested in RBI under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.

This action is based on deficiency 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 statutory inspection of the bank conducted by RBI with reference to its financial position as on March 31, 2021, and examination of the Risk Assessment Report, Inspection Report and all related correspondence pertaining to the same, revealed, inter alia, that the bank had granted multiple unsecured loans to one of its director / his proprietorship firm. Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the provisions of the BR Act and the RBI directions, as stated therein.

After considering the bank’s reply to the notice, its additional submissions and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of contravention of the statutory provisions and the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1015

(Amount in ₹ crore, Rate in Per cent)MONEY MARKETS@ Volume (One Leg) Weighted Average RateRange A. Overnight Segment (I+II+III+IV)463,422.356.770.05-6.90 I. Call Money9,782.406.775.00-6.85 II. Triparty Repo320,314.856.776.75-6.79 III. Market Repo133,325.106.790.05-6.90 IV. Repo in Corporate Bond0.00-- B. Term Segment

Today, the Reserve Bank released data relating to India’s International Investment Position for end-June 2023[1]. Key Features of India’s IIP in end-June 2023: Net claims of non-residents on India increased by US$ 12.1 billion during Q1:2023-24 and stood at US$ 379.7 billion as at end-June 2023.The rise in net claims of non-residents during the quarter was on account of higher rise in foreign-owned financial assets in India (US$ 36.2 billion) when compared with Indian residents’ overseas financial assets (US$ 24.1 billion) (Table 1).Increase in reserve assets (US$ 16.6 billion) was the largest contributor to the rise in Indian residents’ foreign assets during April-June 2023, followed by direct investment, loans and trade credit.Inward portfolio investment (US$ 15.0 billion) and foreign direct investment (US$ 8.9 billion) together accounted for two thirds of the rise in foreign liabilities of Indian residents.Reserve assets accounted for 64.2 per cent of India’s international financial assets at end-June 2023 (Tables 1 and 2).