|RBI slaps Rs. 50 million penalty on Airtel Payments Banks
|RBI has levied a penalty of Rs. 50 million on Airtel Payments Bank for violation of operating guidelines and KYC norms. RBI after scrutiny of bank’s documents relating to opening of accounts without customers’ consent found these violations. Over 2.3 million customers had received Rs. 470 million in their Airtel Bank accounts and they were not aware that bank accounts had been opened.
|IFC, IFC FIG to sell 1.2% via Bankdhan Bank IPO
|It is known that IFC and IFC FIG have a total 5 per cent stake in Bankdhan Bank. Out of this, they will sell 1.2 per cent through proposed Initial Public Offering of the lender which opens on March 15, 2018. Precisely, IFC and IFC FIG would be offering 14 million and 7.57 million shares for sales respectively. Let apart, the bank also proposes to offer fresh issue of 97.6 million shares to the public.
|Credit Flow after PNB fraud
|PSU Banks have become more cautious in lending after PNB fraud. The impact of new framework for restructuring of stressed assets is also consuming bankers’ time. Auditors are stricter in checking compliance after the PNB fraud. Entire eco system is said to be in turbulence. The Industry Credit in December 2017 stood at 26,341 billion which is now at 26,151 billion as on January 2018. The YoY change percentage is 1.10.
|Review of Sale ban on Guarantors’ personal assets
|Insolvency law is likely to change if Government feels there is a case for access to personal assets in case of companies undergoing insolvency resolution. Issue of moratorium is also being looked into which will not only be applicable to the property of the corporate debtor but also on the personal guarantor. This will be a change in the Insolvency and Bankruptcy Code (IBC).