CURRENT AFFAIRS : BANKING & FINANCE
RBI Imposes Cumulative Penalties of ₹10.34 Crore on Citibank, Bank of Baroda, and Indian Overseas Bank for Non-Compliance
- The Reserve Bank of India (RBI) has imposed penalties amounting to ₹10.34 crore on Citibank, Bank of Baroda (BoB, and Indian Overseas Bank (IOB) for contravention of various regulatory norms.
Basis of Action :
- The regulatory body clarified that the penalties are a result of deficiencies in regulatory compliance.
- The action does not intend to comment on the validity of any transaction or agreement entered into by the banks with their customers.
Penalties Breakdown :
- RBI imposed a fine of ₹1 crore on Indian Overseas Bank for non-compliance with certain directions issued by it on ‘loans and advances – statutory and other restrictions’.
- Citibank is fined ₹5 crore for non-compliance with various directions, including ‘operational guidelines, managing risks and code of conduct in outsourcing of financial services by banks,’ and ‘the depositor education and awareness fund scheme, 2014.’
- A monetary penalty of ₹4.34 crore has been imposed by the RBI on the Bank of Baroda for non-compliance related to ‘loans and advances – statutory and other restrictions’, and ‘Reserve Bank of India (interest rate on deposits) directions, 2016’.
Recent News :
- On 23 November, the RBI imposed monetary penalties on 5 co-operative banks ie ₹2.50 lakh on Ahmedabad’s Shri Mahila Sewa Sahakari Bank Ltd., ₹2 lakh on Porbandar Vibhagiya Nagarik Sahkari Bank Limited., ₹1 lakh in Himmatnagar’s Sarvodaya Nagarik Sahakari Bank Ltd., ₹50,000 on The Khambhat Nagarik Sahakari Bank Ltd. and ₹25,000 on the Vejalpur Nagarik Sahkari Bank Ltd. for deficiencies in regulatory compliance.
About RBI :
- Established : 1 April 1935
- Headquarters : Mumbai, Maharashtra, India
- Governor : Shaktikanta Das
- Deputy Governors : Swaminathan Janakiraman, Michael Patra, M. Rajeshwar Rao, T Rabi Sankar
HSBC India Collaborates with UK Export Finance to Aid Indian MSMEs
- The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India) and UK Export Finance (UKEF), the United Kingdom’s export credit agency, intend to establish a financing programme of up to £100 million to support Indian Micro, Small and Medium enterprises (MSMEs) and corporates for financing their imports from the UK.
- This partnership is expected to enhance the availability of credit for Indian MSMEs and boost trade ties between the two countries.
- HSBC India and UKEF signed a Letter of Intent (LoI) to enable them to work together on opportunities relating to UKEF’s guarantee-backed structures.
- HSBC India and UKEF will work closely to originate, structure and extend financing and credit facilities to Indian MSMEs.
- India was UK’s 12th largest trading partner in the four quarters to the end of Q2 2023, accounting for 2.1% of total UK trade.
About HSBC India :
- Established : 1853
- Headquarters : Mumbai, Maharashtra
- CEO : Hitendra Dave
About UK Export Finance :
- Founded : 1919
- Headquarters : London
- CEO : Tim Reid
- UK Export Finance (UKEF) is the operating name of the Export Credits Guarantee Department (ECGD) which is the United Kingdom’s export credit agency and a ministerial department of His Majesty’s Government.
Karnataka Bank Enters Partnership with Bajaj Allianz Life Insurance for Life Insurance Product Distribution
- Karnataka Bank has announced a strategic corporate tie-up with Bajaj Allianz Life Insurance Co Ltd, one of India’s leading private life insurers to distribute life insurance products to its
- This collaboration is designed to leverage the strength of BALIC’s product capabilities and Karnataka Bank’s large customer base with wide distribution of over 900+ branches across India.
- These offerings will cater to various life stages and financial needs, ensuring that customers receive structured insurance solutions aligned with their requirements.
- MD and CEO of Bajaj Allianz Life Insurance : Tarun Chugh
About Karnataka Bank :
- Founded : 18 February 1924
- Headquarters : Mangalore, Karnataka, India
- MD & CEO : Srikrishnan Hari Hara Sarma
