Press Releases

The Reserve Bank of India (RBI), vide order dated October 4, 2023, has cancelled the licence of Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra. Consequently, the bank ceases to carry on banking business, with effect from the close of business on October 04, 2023. The Additional Secretary & Central Registrar of Cooperative Societies, Ministry of Cooperation, Government of India has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

RBI cancelled the licence of the bank as:

1. 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.

2. 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;

3. The continuance of the bank is prejudicial to the interests of its depositors;

4. The bank with its present financial position would be unable to pay its present depositors in full; and

5. Public interest would be adversely affected if the bank is allowed to carry on its banking business any further.

2. Consequent to the cancellation of its licence, Nagar Urban Co-operative Bank Ltd., Ahmednagar, Maharashtra is prohibited from conducting the business of ‘banking’ which includes, among other things, acceptance of deposits and repayment of deposits as defined in Section 5 (b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect.

3. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, 95.15% of the depositors are entitled to receive full amount of their deposits from DICGC. As on March 31, 2023, DICGC has already paid ₹294.85 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1044

RBI had released the Discussion Paper on "Introduction of Expected Credit Loss Framework for Provisioning by Banks" on January 16, 2023, soliciting inputs from all stakeholders. The ECL approach to provisioning is a paradigm shift from the current incurred loss-based provisioning regime. The Discussion Paper envisages a forward looking, principle-based framework for provisioning for credit risk, which has already been implemented under International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB).

2. Several comments have been received from various stakeholders on the issues flagged in the Discussion Paper, which are being examined by the Reserve Bank. While the regulatory stance to be taken in respect of each of the issues shall be examined by the Reserve Bank, it has been decided to constitute a Working Group in order to get independent inputs on some of the technical aspects having a bearing on the significant transition involved.

3. The Working Group will be chaired by Prof. R. Narayanaswamy, former Professor, IIM Bangalore and shall consist of domain experts from academia and industry as well as representatives from select banks as given below:

Prof. Sanjay Kallapur, ISB, Hyderabad

Shri Rajosik Banerjee, KPMG

Shri S Srinivasa Rao, SBI

Shri Rajendra Khandelwal, ICICI Bank

Shri Susanta Baishya, HDFC Bank

Shri Adish Yadav, Canara Bank

Shri Pravinkumar Taparia, Saraswat Co-operative Bank

Shri Sridharan N, Equitas Small Finance Bank

4. The Terms of Reference for the Working Group would be as follows:

Delineate the principles that will be required to be considered by banks while designing the credit risk models to be used for assessing and measuring expected credit losses.

Recommend factors that banks should consider for determination of credit risk based on the guidance provided in IFRS 9 and principles laid out by BCBS.

Suggest the methodology to be used for undertaking external independent validation of the models.

Recommend, based on comprehensive data analysis, prudential floors for provisioning.

Any other issue incidental to the above.
5. The recommendations of the Working Group would be duly factored in while framing the draft guidelines, which shall be put in the public domain for comments before issue of final guidelines.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1043

Auction Results91 Days182 Days364 Days I.Notified Amount₹7000 Crore₹8000 Crore₹9000 Crore II.Competitive Bids Received (i) Number164174209 (ii) Amount₹18860.052 Crore₹19901.450 Crore₹21501 Crore III.Cut-off price / Yield98.317596.580893.3610 (YTM: 6.8640%)(YTM: 7.0999%)(YTM: 7.1306%) IV.Competitive Bids Accepted (i) Number4484109 (ii) Amount₹6966.320 Crore₹7974.249 Crore₹8981.290 Crore V.Partial Allotment Percentage of Competitive Bids83.11%44.16%85.15% (3 Bids)(4 Bids)(1 Bid)

VI.Weighted Average Price/Yield98.334696.588993.3828

(WAY: 6.7930%)(WAY: 7.0825%)(WAY: 7.1056%)

VII.Non-Competitive Bids Received   

(i) Number864

(ii) Amount₹1557.680 Crore₹449.371 Crore₹302.840 Crore

VIII.Non-Competitive Bids Accepted   

(i) Number864

(ii) Amount₹1557.680 Crore₹449.371 Crore₹302.840 Crore

(iii) Partial Allotment Percentage---

Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1040

Date : Oct 04, 2023 Money Market Operations as on October 03, 2023 (Amount in ₹ crore, Rate in Per cent) MONEY MARKETS@ Volume (One Leg) Weighted
Average RateRange A. Overnight Segment (I+II+III+IV)518,896.836.750.03-7.85 I. Call Money12,213.066.775.00-6.90 II. Triparty Repo368,046.706.756.68-6.85 III. Market Repo138,597.076.750.03-6.90 IV. Repo in Corporate Bond40.007.857.85-7.85 B. Term Segment   

     I. Notice Money**344.706.676.00-6.85

     II. Term Money@@603.00-6.75-7.00

     III. Triparty Repo2,527.006.656.60-6.70

     IV. Market Repo1,648.096.836.83-6.90

     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. MSFTue, 03/10/20231Wed, 04/10/202389,746.006.75

4. SDFΔTue, 03/10/20231Wed, 04/10/202357,940.006.25

5. Net liquidity injected from today's operations [injection (+)/absorption (-)]*   31,806.00

The Reserve Bank of India (RBI) has appointed Shri Muneesh Kapur as Executive Director (ED) with effect from October 3, 2023.

Prior to being promoted as ED, Shri Kapur was Adviser-in-Charge, Monetary Policy Department and Secretary to the Monetary Policy Committee.

Over a span of nearly three decades in the Reserve Bank, Shri Kapur has worked in the areas of macroeconomic policy and research and monetary policy in Department of Economic and Policy Research and Monetary Policy Department in RBI. He also served as Adviser to Executive Director, International Monetary Fund during 2012-15.

As Executive Director, Shri Kapur will look after the Department of Economic and Policy Research.

Shri Muneesh Kapur holds a Master’s degree in Economics and is a Certified Associate of the Indian Institute of Bankers (CAIIB).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2023-2024/1041

The Reserve Bank has today released data on Reserve Money for the week ended September 29, 2023 and Money Supply for the fortnight ended September 22, 2023.

Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1042

The rate of interest on Government of India Floating Rate Bond 2028 (GOI FRB 2028) applicable for the half year October 04, 2023 to April 03, 2024 shall be 7.69 per cent per annum.

It may be recalled that FRB 2028 carries a coupon, which has a base rate equivalent to the average of the Weighted Average Yield (WAY) of last three auctions (from the rate fixing day i.e., October 04, 2023) of 182 Day T-Bills, plus a fixed spread (0.64 per cent).

Ajit Prasad            
Director (Communications)

Press Release: 2023-2024/1036

The Reserve Bank of India (RBI) has imposed, by an order dated August 31, 2023, a monetary penalty of ₹6.00 Lakh (Rupees Six Lakh only) on The Sarvodaya Sahakari Bank Limited, Modasa, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms /concerns in which they are interested’ read with ‘Loans and advances to directors etc - directors as surety/guarantors - Clarification’, ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’ and ‘Interest Rate on Deposits - Directions 2016’. 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 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) sanctioned credit facilities to relative of one of its directors and also wherein relatives of the directors stood as guarantor (ii) breached inter-bank gross exposure limit, (iii) breached inter-bank counterparty exposure limit, and (iv) not paid interest on matured fixed deposits from the date of maturity till the date of its repayment at the rate applicable to saving deposits or 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: 2023-2024/1032

The Reserve Bank of India (RBI) has imposed, by an order dated August 31, 2023, a monetary penalty of ₹6.50 lakh (Rupees Six Lakh Fifty Thousand only) on Dhanera Mercantile Co-operative Bank Ltd., Dhanera, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Loans and advances to directors, relatives and firms/concerns in which they are interested’; ‘Loans and advances to directors etc. – directors as surety / guarantors – clarification’ and on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks (UCBs)’. 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 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 was 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) sanctioned credit facilities to its directors / their relatives and also wherein their relative stood as guarantor, (ii) breached prudential inter-bank (gross) exposure limit, and (iii) breached prudential inter-bank counter-party exposure limit. 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 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: 2023-2024/1033

The Reserve Bank of India (RBI) has imposed, by an order dated August 31, 2023, a monetary penalty of ₹3.50 Lakh (Rupees Three Lakh Fifty Thousand only) on The Janata Co-operative Bank Ltd., Godhra, Dist. Panchmahal, Gujarat (the bank) for non-compliance with the directions issued by RBI on ‘Donations to Trusts and Institutions where Directors, their relatives hold position or are interested’ and ‘Loans and advances to directors, relatives and firms /concerns in which they are interested’ read with ‘Loans and advances to directors etc- directors as surety/guarantors- Clarification’. 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 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.