RBI Opens Sub Office in Agartala

Agartala.(ABC Live):The Central Board of Directors of the Reserve Bank of India met today at Agartala under chaired Dr. D. Subbarao, Governor, Reserve Bank of India. The Reserve Bank opened a sub-office in Agartala on the eve of its Board meeting. Shri Manik Sarkar, Hon’ble Chief Minister of Tripura inaugurated the sub- office along with Reserve Bank Governor Dr. D. Subbarao. Shri Badal Chaudhary, Hon’ble Finance Minister of Tripura and senior officers of the state, banks and RBI were present. While opening the new office of the Reserve Bank of India in Agartala, the Chief Minister stated that the State government had been and would cooperate in every manner to ensure that banking access is made available to the people in the State. He, however, lamented at the low credit/deposit ratio of banks, low credit flow to agriculture, low number of bank branches and inadequate manpower in these branches in the State. The Governor in his remarks pointed out that the Reserve Bank was sensitive to all the three issues and was taking appropriate steps to bring improvement in all the three areas.  It had already decided to open its offices in all the North-Eastern States; he said and added that opening of an office in Agartala was a step in that direction. The Reserve Bank was also making efforts to enhance credit flow to the North-Eastern States. In the past few years, for instance, the Reserve Bank of India had announced a subvention scheme for opening branches in the North-East. Of the five branches which were agreed to be opened in Tripura, two branches were already opened and three more had been approved and would be opened as soon as security issues were resolved. He hoped that the issue would be resolved soon with the cooperation of the State government.  The Governor pointed out that for faster development of the region, it was equally important to increase its credit absorptive capacity. For this purpose, it was equally necessary to introduce bankable schemes and open financial literacy and credit counselling centres in the region. He added that educating the population about banking facilities would also help generate demand for bank services and products. He urged the State Government to include finance in school curriculum to enhance financial literacy in the state. He stated that the Reserve Bank had developed material for this purpose which it would willingly share with the State government.  Earlier, Dr. D. Subbarao, inaugurated the Electronic Clearing System (ECS) by putting through the first transaction at the Clearing House maintained by State Bank of India, Agartala. ECS is an efficient, secure and fast payment system that enables quick movement of payments and receipts and is especially beneficial for bulk payments like salary, pension, Government benefit payments like NREGA and utility payments. Shri A. Krishna Kumar, Managing Director, State Bank of India was present at the launch.  At the special State Level Bankers Committee (SLBC) meeting held today, the following decisions were taken:

       ·banks will strive to achieve 40 per cent credit deposit ratio during the current financial year;

       ·to improve access to banking services in the North-East, banks will open at least 26 (of the over 400 branches to be opened) in brick and mortar form;

       ·banks will organise a Financial Literacy Day before March 2012 to enhance financial literacy and awareness among the people of the state; and

·the progress of these action points would be reviewed before October 2011.

RBI Authorizes 926 Banks to Receive advance Income Tax in Mumbai

Mumbai (ABC Live): The Reserve Bank of India has announced that 926 computerized branches of public and private sector banks will receive advance income tax in Mumbai and Navi Mumbai.  These arrangements have been made for the convenience of the income tax assesses. Of the 926 bank branches 862 branches are public sector bank branches, 35 HDFC bank branches, 10 ICICI bank branches and 19 AXIS bank branches.  The Reserve Bank of India has advised income tax assesses to take advantage of these standing arrangements made for their convenience.  Long queues and inconveniences can be avoided at the Reserve Bank of India counters if the assesses in Mumbai and Navi Mumbai utilise the services being made available at various designated branches of banks and deposit their income tax dues well in advance of the last date.  Information to this effect was made by Ajit Prasad ,Assistant General Manager through RBI Press Release : 2010-2011/165.

RBI Authorizes IDBI Bank to Deal in Government Securities Market

Mumbai (ABC Live): The Reserve Bank of India on Tuesday has authorized IDBI Bank Limited to undertake Primary Dealer business in Government securities market with effect from April 20, 2011.  Information and confirmation to this effect was made by Ajit Prasad, Assistant General Manager through Press Release: 2010-2011/1515 that IDBI Bank Limited was given permission to deal in Primary Dealer business in Government securities market in lieu of authorization withdrawal from IDBI Gilts Limited, its subsidiary.

RBI Penalizes Four Gujarat Co-operative Banks for KYC/ AML Violations

Mumbai (ABC Live): The Reserve Bank of India imposed a monetary penalty of Rs. 5.00 lakh (Rupees five lakh only) on The Siddhi Co-operative Bank Ltd., Ahmedabad. The penalty was imposed for violation of RBI instructions/directions on Know Your Customer (KYC) / Anti Money Laundering (AML) and for submitting improper compliance of the observations made in its last inspection report.   The Reserve Bank had issued a show cause notice to The Siddhi Co-operative Bank Ltd.  The bank submitted a written reply in response to the Show Cause notice and after considering facts of the case, the bank's reply and personal submissions in the matter, the Reserve Bank concluded that the violations were substantiated and warranted imposition of penalty.  The Reserve Bank of India has imposed a monetary penalty of Rupees five lakh on Shri Vinayak Sahakari Bank Ltd., Ahmedabad, Gujarat for violation of Reserve Bank of India instructions on unsecured advances, Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines, shortage in cash balances, opening of benami accounts and violation of Dos' and Donts' prescribed for board of directors. The Reserve Bank of India has imposed a monetary penalty of ` 1.00 lakh (Rupees one lakh only) on The Suvikas Co-operative Bank Ltd., Ahmedabad, Gujarat for violation of Reserve Bank of India instructions on Know Your Customers (KYC).  The Reserve Bank of India has imposed a monetary penalty of Rupees one lakh on The Botad People's Co-operative Bank Limited, Botad, Dist. Bhavnagar for violations of Reserve Bank of India instructions in respect of reporting of cash transactions above ` 10.00 lakh to Financial Intelligence Unit-India (FIU-IND), New Delhi, non compliance of Know Your Customers (KYC) norms and persistence of irregularities pointed in previous inspection report.