No instruction to banks on withdrawing Rs 2000 notes: FM
Finance Minister Nirmala Sitharaman on Wednesday said that no instructions have been given to banks on stopping issuing notes of Rs 2000 denomination.
 
"As far as I know, no such instruction has been given to the banks (on stopping issue of Rs 2000 notes)," she said at a meeting with heads of PSU banks. 
 
The Minister's comments come after reports of ATM recalibration to phase out of Rs 2,000 notes and that the largest currency denomination will remain legal tender, but would be gradually phased out of public circulation.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Newme

    4 weeks ago

    In Tamil Nadu nobody accepts 2000Rs note. Last 6 months I haven\'t got 2000Rs note from ATM - HDFC, ICICI, AXIS, INDIAN Banks.

    RBI lifts curbs, allows Bandhan Bank to open new branch
    Bandhan Bank on Tuesday said that the Reserve Bank of India has lifted the regulatory restrictions on the bank against opening a new branch considering the "efforts made by the bank to comply with the said licencing condition".
     
    In a regulatory filing, the bank said: "RBI vide its letter dated February 25 has informed that though the bank is still not in compliance with the licencing conditions on dilution, considering the efforts made by the bank to comply with the said licencing condition, it has lifted the regulatory restriction on branch opening."
     
    However, the restriction has been lifted on the condition that the bank ensures that at least 25 per cent of the total number of 'banking outlets' opened during a financial year are located in unbanked rural centres.
     
    The apex bank had barred Bandhan Bank from opening new branches without its approval in September 2018, and had ordered the bank to freeze the salary of its chief executive Chandra Shekhar Ghosh over the bank's failure to meet shareholding rules.
     
    RBI's licencing guidelines required Bandhan Financial Holdings, the banks' promoter company, to reduce its stake from 82 per cent to 40 per cent within three years of commencing business. The deadline for Bandhan Bank was August 23, which it failed to meet.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    Top 50 NBFCs' asset-liability status under RBI lens: Das
    The top 50 non-banking finance companies (NBFCs) were being monitored closely, said Reserve Bank of India Governor Shaktikanta Das, here on Monday, hinting at the RBI's focus on early detection of risks signs or any contagion effect on the credit system.
     
    "The asset-liability management (ALM) position and other relevant aspects of the top 50 NBFCs are being closely monitored. It covers all NBFCs with asset size above Rs 5,000 crore. The ALM of top 51-100 NBFCs is also being examined by the respective regional offices of the RBI," Das said at the 'Banking landscape in the 21st century' seminar.
     
    The NBFC sector has seen a lot of turmoil, starting with a series of defaults by Infrastructure Leasing & Financial Services (IL&FS), that forced the government to intervene and exposed weaknesses in the sector. Then Dewan Housing Finance Corp also entered a crisis phase making the RBI to keep close vigil.
     
    The RBI was having regualar interaction with statutory auditors, credit rating agencies, credit information firms, mutual funds and banks having large exposures to NBFCs, he said.
     
    "In addition to the four pillars of supervision -- on-site inspection, off-site surveillance, market intelligence and reports of statutory auditors (SAs) -- a fifth pillar of supervision in the form of periodic interaction with stakeholders, including statutory auditors, credit rating agencies, credit information firms, mutual funds and banks having large exposures to NBFCs has been instituted to have a clearer understanding of the emerging risks and developments in the sector," he said.
     
    It would ensure availability of critical information, whenever required, he said.
     
    On the co-operative banks, he said the RBI had developed a robust stress-testing framework for urban cooperative banks (UCBs). It also acts as early warning system for co-operative banks with timely identification of weak banks for appropriate action. 
     
    It's a shift from reactive to pro-active supervisory approach, intended to ensure surveillance of UCBs' vulnerabilities. Moreover, as on December 31, 2019, over 90 per cent of these banks are now on the core banking solution, although efforts are required to standardise solutions and have a robust set of internal controls implemented for improved outcomes.
     
    The CAMELS (capital, asset quality, management, earnings, liquidity and systems & control) supervisory rating methodology for UCBs has also been revised. "We have taken steps to bring UCBs under the CRILC reporting framework and issued draft guidelines on exposure norms to mitigate credit concentration risk and enhancement in the priority sector lending targets to further financial inclusion," he said.
     
    To improve governance, the RBI had issued guidelines on formation of the UCB board of management (BOM) with deposit size of Rs 1,000 crore, he said. "To have appropriate regulatory powers in respect of co-operative banks, almost on par with those over banking firms, certain amendments in the Banking Regulation Act, 1949 have been proposed," the RBI Governor said.
     
    The RBI move follows the sanctionining of personal loans by PMC Bank in August by throwing of all rules to the wind. Also, it was over and above the Rs 2,500 crore loan that HDIL had ceased repaying and which the cooperative bank failed to classify as bad loan.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    vikram.chin

    1 month ago

    Who are these top 50 NBFC's - according to the RBI ? A list would make the article meaningful.

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