Reserve Bank of India (RBI), vide order dated September 14, 2022, has cancelled the licence of “The Laxmi Co-operative Bank Limited, Solapur, Maharashtra”. Consequently, the bank ceases to carry on banking business, with effect from the close of business on September 22, 2022.

The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.

 

The Reserve Bank cancelled the licence of the bank as :

 

* 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.

 

* 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;

 

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

 

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

 

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

 

* Consequent to the cancellation of its licence, “The Laxmi Co-operative Bank Limited, Solapur, 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.

 

* 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, about 99% of the depositors are entitled to receive full amount of their deposits from DICGC. As on September 13, 2022, DICGC has already paid ₹193.68 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..

Source : RBI

 

 

 

* The Reserve Bank of India (RBI) has given its approval to the appointment of Rama Subramaniam Gandhi as the Non-Executive (Part-time) Chairman of Yes Bank with effect from 20 September 2022, for a tenure of 3 years.

* He is currently serving as a financial sector policy expert and adviser.

* He served as an RBI deputy governor for three years from 2014 to 2017.

* He also served as a director of Institute for Development and Research in Banking Technology (IDRBT), Hyderabad..

Source : Mint

Private sector lender IDFC First Bank on Thursday(15th Sep 2022) announced the start of its integration with ‘payments on WhatsApp’ to enable simple and secure FASTags recharge for the Bank’s customers.

 

* IDFC FIRST customers will now be able to recharge their FASTags right within IDFC FIRST’s WhatsApp chatbot and complete the transaction from within the chat thread, the bank in a statement said.

 

* “IDFC FIRST Bank customers can get started by just sending ‘Hi’ to the Bank’s official WhatsApp chatbot number at +919555555555," it added.

 

* The recharge process will be a smooth one that allows payments in two easy stages. Customers must enter the amount and authenticate the transaction using an OTP after choosing the recharge option in the WhatsApp chat. They will then receive a message confirming the transaction.

 

* Millions of FASTag customers that utilise the Bank, this new feature will enable users to pay for their recharge using “payments on having to sign into any other mobile app or net banking platform.

 

* Users may now send and receive money via Unified Payment Interface (UPI) from their friends as simple as sending a WhatsApp message thanks to the “Payments on WhatsApp” feature.

 

* ‘Payments on WhatsApp’ is built with a rigorous set of security and privacy principles with user safety at its core, including entering a unique UPI-PIN for each payment..

Source : Mint

CSB Bank Limited on Friday(16th Sep 2022) announced the appointment of "Pralay Mondal" as the managing director and chief executive officer of the bank for a period of three years starting 15 September.

 

Pursuant to the approval received from the Reserve Bank of India (RBI) on 15 September 2022, the board of directors of the Bank in its meeting held on the same day approved the appointment.

 

Mondal joined CSB Bank as president, retail, SME, operations and IT on 23 September, 2020 and was appointed as the deputy MD with effect from 17 February. He was the interim MD and CEO of the bank with effect from 1 April till date in the absence of a regular CEO and MD.

 

Prior to joining CSB Bank, Mondal was Executive Director and Head, Retail Banking at Axis Bank..

Source : Mint

IndusInd Bank has approved the re-appointment of Sumant Kathpalia as managing director and chief executive officer for three years with effect from March 24, 2023, the private lender informed exchanges.

 

The re-appointment is subject to approval from the lender’s shareholders and the Reserve Bank of India.

 

Kathpalia was appointed as MD & CEO of IndusInd Bank in March 2020.

 

“He is responsible for the Bank's overall business strategy & execution, financial management, managing investor relations, mergers & acquisitions, evaluation of inorganic growth opportunities, digitization, compliance and governance,” the bank said.

 

Prior to joining IndusInd Bank, Kathpalia had stints with Citibank, Bank of America and ABN Amro..

Source : Business Standard

Federal Bank was ranked 63rd on the Best Workplaces in Asia 2022 and becomes the only bank in India to be listed by Great Place to Work, the global authority on workplace culture.

 

The list is based on over one million survey responses across Asia and West Asia, representing the experience of over 4.7 million employees in the region.

 

This recognition is based on confidential survey data assessing employee experiences of trust, innovation, company values and leadership. Companies are also evaluated on how well they are creating For All workplace experience, inclusive of all employees no matter who they are or what they do.

 

Ajith Kumar KK, President and Chief Human Resources Officer of the Bank said, “We are extremely glad on being recognized as one amongst the Best Workplaces in Asia 2022, the only Indian Bank to be featured in this list. I gratefully acknowledge the contribution of every Federal towards this. Great employees make a place great to work.”.

Source : The Hindu Businessline

Announcing a partnership with branchless banking network PayNearby, a senior executive of Axis Bank said on Wednesday(7th Sep 2022) that such tie-ups would aid the private lender in achieving priority sector lending aims.

 

“The priority sector targets that we have in our own business, if we have a shortfall, we have to build up through PSLCs (priority sector lending certificate) or something else. It is ensuring that we meet the requirements of the bank,” said Munish Sharda, group executive and Head of Bharat Banking.

 

Axis Bank aims to meet its priority sector lending targets in an organic manner, taking advantage of the PayNearby’s distribution-as-service network of 50 lakh micro businesses.

 

The tie-up will be used to set up current and savings accounts for both retail and individual customers in remote areas..

Source : Business Standard

HDFC Bank has unveiled Wednesday(7th Sep 2022) its state-of-the-art ‘Bank on Wheel’ van in Gujarat. The Bank in Wheel van service will take banking services to unbanked villages.

The Bank in Wheel van will visit remote villages located 10-25 km from the nearest branch to further financial inclusion, under the HDFC Bank’s newly initiated Rural Banking Business. 

The van was flagged off by Shri Dhavalkumar R Patel, Taluka Development Officer, Ankleshwar at a function organised in Ankleshwar Taluka Panchayat office, in the presence of Mr Anil Bhavnani, Sr Executive Vice President and National Rural Banking Head, HDFC Bank, and other senior bank officials.

 

* The Bank in Wheel initiative is a part of a pilot project to offer banking services in unbanked locations.

* Customers can access 21 banking products as well as services.

* The Bank in Wheel van will be operational at each location for a specific period and will cover 3 villages in a day.

* The Bank in Wheel van will reach and visit each village twice a week.

* HDFC Bank is one of India’s Premier Banks providing a wide range of financial products and services using multiple distribution channels including a pan-India network..

Source : Mint

On Tuesday(6th Sep 2022), ESAF Small Finance Bank Ltd. introduced a "Rainbow Savings Account" with a number of features designed specifically for the transgender community, including a high savings rate and cutting-edge debit card capabilities.

 

A trans-friendly or inclusive workplace culture is urgently needed, and this is a significant step toward the inclusive revolution, according to a statement from Kerala-based ESAF Small Finance Bank.

 

In 2015, the Reserve Bank of India ordered banks to add a distinct column labeled "third gender" to all of their applications and forms..

Source : India info line

* As part of the financial inclusion drive, public sector banks will open about 300 brick-and-mortar branches in the unbanked areas of various states by December 2022.

 

* These new branches will cover all remaining unbanked villages with a population of more than 3,000, according to sources.

 

* A Maximum number of 95 branches will be opened in Rajasthan followed by 54 in Madhya Pradesh.

 

* The public sector banks will open 38 branches in Gujarat, 33 in Maharashtra, 32 in Jharkhand and 31 in Uttar Pradesh..

Source : Business Standard