Reserve Bank of India regulates the issue of bank notes, maintains reserves to secure monetary stability, and operates the currency and credit system in India. The company also formulates, implements, and monitors the monetary policy; prescribes broad parameters for banking operations within which the country's banking and financial system work; and issues and exchanges or destroys currency and coins not fit for circulation. It also performs various promotional functions to support national objectives; manages the foreign exchange management; and performs merchant banking function for the central and the state governments, as well as acts as their banker. Reserve Bank of India was founded in...
Central Office Building
Shahid Bhagat Singh Marg
Founded in 1935
RBI Imposes Monetary Penalty on Muthoottu Mini Financiers Pvt Ltd
Jul 25 15
The Reserve Bank of India has imposed a monetary penalty of INR 0.5 million on Muthoottu Mini Financiers Pvt Ltd. under section 58G(1)(b) read with sub-section 5(aa) of section 58B of the RBI Act, 1934 for violation of various directions/orders issued by Reserve Bank of India from time to time. An inspection of the company under section 45N of Reserve Bank of India Act, 1934 (the RBI Act, 1934) with reference to its financial position as on March 31, 2013 was conducted during December, 2013. It was observed that several regulatory violations were committed by the company relating to the guidelines on Loan to Value (LTV) ratio pertaining to gold loans, issuance and renewal of Non-Convertible Debentures (NCDs), loans against NCDs, adherence to Fair Practices Code (FPC), disclosures in the balance sheet etc. On account of various contraventions to RBI Directions as pointed out in the inspection, the company was issued a Show Cause Notice (SCN) on July 25, 2014 for imposition of penalty. The company’s response to the SCN was not found to be satisfactory. The company was further accorded a personal hearing by RBI under section 58G (2) of the RBI Act, 1934. After considering the facts of the case and the company’s reply, as also, personal submissions made during the hearing, RBI came to the conclusion that the violations as observed during inspection were of serious nature and were substantiated which warranted imposition of monetary penalty on the company. Accordingly, a penalty of INR 0.5 million has been imposed on the company.
NBFCs Need RBI Approval to Change Shareholding Pattern
Jul 10 15
NBFCs will need RBI approval when any change in shareholding pattern, which results in acquisition or transfer of shares of over 26% of the paid-up capital, takes place. NBFCs will also require RBI approval for any change in the management that requires a change in more than 30% of directors, excluding independent directors, said RBI in a notification. NBFCs should provide documents pertaining to information on the proposed directors or shareholders and source of funds of these shareholders acquiring the shares. Such shareholders should not be associated with any unincorporated body accepting deposits or with any company, the application for Certificate of Registration (CoR) of which has been rejected by the RBI.
Reserve Bank of India Reduces Repo Rate
Jun 2 15
The Reserve Bank of India (RBI) reduced the Repo rate by 25 basis points to 7.25%.