RBI deputy governor KC Chakrabarty said the central bank will introduce some corrective measures in KYC norms as and when necessary to check any “transaction-level aberrations” in the functioning of banks
Reserve Bank of India (RBI) deputy governor KC Chakrabarty on Tuesday said the central bank will introduce some corrective measures in KYC (know your customer) norms as and when necessary to check any “transaction-level aberrations” in the functioning of banks.
“(The) system is good, there is no problem. There are... (at the) transactional level, some aberration will always take place and there is a need to look into those issues and as and when it is necessary, banks will take the corrective measures. And if necessary, from the Reserve Bank, regulator side, we will issue the corrective measures,” he said.
Mr Chakrabarty was asked whether the RBI was contemplating a change in the norms in the wake of allegations by Cobrapost, an online magazine, that some officials of ICICI Bank, HDFC Bank and Axis Bank were involved in money laundering.
“We are examining... changing how the business is done,” he told reporters.
Asserting that there are no systemic issues involved, Mr Chakrabarty said the RBI had looked into the issue.
After a meeting with the RBI top brass last week, Rajiv Takru, secretary at the Department of Financial Services, had said that the central bank report points out to some ‘aberrations’, and assured action against the erring parties.
Mr Chakrabarty reiterated that there was no money laundering involved, adding that such talk is prompted by “financial illiteracy”.
Sudipto Sen, chairman of the Saradha group, the chit fund company which has allegedly defrauded thousands of depositors, has been detained from Sonmarg in Jammu and Kashmir along with two other company officials
Sudipto Sen, the chairman of group, the chit fund company which has allegedly defrauded thousands of depositors, has been detained from Sonmarg in Jammu and Kashmir (J&K) along with two other company officials today, a senior police official said.
“Three persons have been detained in Sonmarg area of J&K. The police there have identified them as Sudipto Sen, Debjani Mukherjee and Arvind Singh Chauhan,” Bidhannagar Police Commissioner Rajeev Kumar informed the media.
A Scorpio vehicle with a West Bengal number-plate has also been seized, Kumar said.
“Our team is there, after completing all necessary legal procedures they will be produced in court there and efforts will be made to bring them back,” he said.
West Bengal chief minister Mamata Banerjee had earlier ordered Sen’s arrest and said that he was hiding somewhere in North India.
The central bank decided to delink the penal interest levied for delayed credit of pension, revised pension and arrears from the bank rate plus 2% and charge a fixed interest rate of 8% on such delays
The Reserve Bank of India (RBI) has asked all agency banks to compensate all pensioners, including non-state resident pensioners at a fixed rate of 8% for delay in credit of their pension, revised pension or arrears for the delayed period beyond due date.
Replying to a complaint filed by Commodore Lokesh Batra, the central bank issued these instructions to agency banks. Commodore Batra has complained about the delay in receiving revised pension of pre-2005 to defence commissioned officers and family pensioners.
Recently, the RBI aligned the bank rate, which was kept at 6% to the marginal standing facility (MSF) rate and at present stands at 9.5% and whenever there is an adjustment in MSF rate, the central bank would align bank rate accordingly, RBI said in a notification.
It said, “It has now been decided to delink the penal interest levied for delayed credit of pension, revised pension and arrears from the bank rate plus 2% and charge a fixed interest rate of 8% on such delays. The rate will be subject to review by RBI as considered appropriate”.
The central bank also directed all nationalised banks, IDBI Bank, ICICI Bank, Axis Bank and HDFC Bank to implement instructions issued by the Principal Controller of Defence Accounts (Pensions) in circular no500 on 17 January 2013 about revision of pension of pre-2006 defence commissioned officers and family pensioners.