Banking

Banks hold meeting on SWIFT freeze in Russia (March 03, 2022)

While the government explores alternatives to work around the SWIFT messaging ban on some Russian banks, Indian lenders held a meeting earlier this week to discuss challenges being faced following recent sanctions, said two people aware of the development. The agenda of the meeting - organized by the Indian Banks’ Association (IBA) was to look at the impact of the sanctions on Indian lenders and what could be done to overcome some of the issues being faced, said the first person cited above, on condition of anonymity. He added that at present banks are not in favour or any consolidated request to the Reserve Bank of India (RBI) in the matter since the regulator has already initiated preliminary discussions with banks.


Insolvency and Bankruptcy Board of India

PMC Bank case : IBBI suspends registration of Registered Valuer Vishwanath Sridhar Prabhu (March 03, 2022)

Insolvency regulator IBBI has suspended the registration of Vishwanath Sridhar Prabhu as a “Registered Valuer” (RV) for his role in the misconduct committed by fraud hit Punjab and Maharashtra Cooperative Bank Limited (PMC Bank). Prabhu’s registration as a RV will be suspended till he is exonerated of the charges against him, IBBI said. IBBI has also declared him not ‘fit and proper’ to be eligible as RV and noted that pendency of the criminal proceeding against Prabhu - who was in judicial custody—had adversely affected his integrity and reputation.


Ministry of Finance

Income Tax Department conducts searches in a major Telecom group ( 03 March 2022 )

The Income Tax Department conducted search & seizure operations on a multinational group, engaged in distribution of telecom products and providing captive software development services, on 15.02.2022. The ultimate shareholding of the group lies with a foreign entity of a neighboring country. The searches, which were spread across Delhi, Gurugram, and Bengaluru covered the main business premises and also the residential premises of the key office-bearers.  

The search action has revealed that the group has made inflated payments against receipt of technical services from its related parties outside India. The assessee company could not justify the genuineness of obtaining of such alleged technical services in lieu of which payment has been made as also the basis of determination of consideration for the same. The expenses debited by the assessee company towards receipt of such services are to the tune of Rs. 129 crore over a period of five years.

For Press Release, Click Here

RBI

Investment in Umbrella Organization (UO) by Primary (Urban) Co-operative Banks (March 3 , 2022)

 RBI has accorded regulatory approval to National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) in June 2019 for formation of Umbrella Organization (UO) for the UCB Sector. The approval inter-alia permits UCBs to subscribe to capital of the UO on voluntary basis. 

It is advised that the investment made for subscribing to the capital of the UO, for acquiring its membership, shall be exempt from the limits prescribed in Paragraphs 2(i) and 2(iii)(b) of the circular ibid.

For Circular, Click Here

Word of the Day

Keltner Channel : Keltner Channels are volatility-based bands that are placed on either side of an asset's price and can aid in determining the direction of a trend. 

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