Yogesh Prajapati’s Post

Anil Ambani, and twenty-four other entities, including former senior officials of Reliance Home Finance, have been barred from the securities market for a period of five years by the Securities and Exchange Board of India (SEBI). Their role in the misappropriation of business funds is the reason for the severe action. The regulator referred to the plan as "fraudulent," pointing out that the money was embezzled by presenting it to credit-worthy consumers as a "loan." Notably, Anil Ambani has also been fined Rs 25 crore by SEBI, which claims he masterminded a plan to embezzle money from Reliance Home Finance Ltd. The majority of these debtors were connected to shareholders who might affect business decisions, according to SEBI. #anilambani #sebi #ban #market #company #indianstartupnews #regulatory

#update The central bank has highlighted various troubling trends within peer-to-peer (P2P) platforms in its most recent report. A number of platforms were identified for breaching designated funds transfer protocols, whereas some have been observed marketing P2P lending as an investment vehicle offering guaranteed returns tied to tenure, a practice that goes against the intended purpose of such platforms. Key changes introduced: > #NBFCs that operate as peer-to-peer lending platforms (P2Ps) are currently prohibited from offering or facilitating credit enhancement or guarantee services. This prohibition aims to shield these platforms from bearing any credit risks linked to transactions conducted on their platforms. > Furthermore, RBI has imposed limitations on NBFC-P2Ps, barring them from cross-selling various products, except for insurance products directly related to loans. > The central bank also implemented regulations setting a cap on the total exposure of a lender to all borrowers through peer-to-peer (P2P) platforms, restricting it to Rs 50 lakh.  > This restriction aims to align the lending activities of lenders with their financial capabilities. Lenders extending loans exceeding Rs 10 lakh across P2P platforms are now obligated to furnish a certificate from a CA verifying a minimum net worth of Rs 50 lakh. > The banking regulator has made it a requirement that loan disbursement may only take place after a thorough matching process between lenders and borrowers as per the policy approved by the board. Additionally, all financial transactions between parties on a peer-to-peer platform must be processed through an escrow account managed by a trustee supported by a bank. > In order to promote transparency, NBFC-P2P entities are now obligated to make publicly available their portfolio performance data, which includes information on non-performing assets, on a monthly basis. The new RBI guidelines are positive for the industry and in the best interest of lenders and borrowers. The RBI noted that certain P2P platforms were providing liquidity options and at times operating similarly to deposit takers or lenders, rather than as intermediaries facilitating lending between peers. #RBI #NBFC #Loan #Retailassets #Banks #Policies #Regulations #NPA

RBI's Latest Monetary Policy amendments Cheque Clearing: RBI to reduce cheque clearance time from two days to just a few hours through continuous processing under the Cheque Truncation System (CTS) Digital Lending: Introduction of a public repository for Digital Lending Apps (DLAs) to enhance transparency and customer protection. Credit Reporting: Borrower credit information to be updated fortnightly, improving risk assessment. UPI Enhancements: UPI transaction limit for tax payments raised to ₹5 lakh, with "Delegated Payments" feature introduced for broader use. #RBIMeeting #DigitalFinance #BankingReforms #IndiaEconomy #MonetaryPolicy

Happy to share.. #ODR #SEBI #NISM #Grievance #GRC #investors #hdfcbank #rbi

Happy to share 😊 #sebi #nism #securities #investor #rbi

Over the past three years, the RBI has increased penalties by a top most 88%, Know Your Customer (KYC) and Anti-Money Laundering (AML) violations are the major and most area of concern. Here is the breakdown from an Economic Times piece I contributed to: → Total Penalty Haul: ₹78.6 crore collected in the last three years. → Penalty Frequency: 261 penalties imposed in 2023 alone! → Top Offenders: Urban and rural co-operative banks, responsible for ₹13.5 crore and ₹20.13 crore in fines respectively (from 2021 to January 2024). There are two main reasons for the surge in penalties: 1. Stricter Audits: The RBI has stringent its audits area, particularly focusing on fintech companies, Banks & non-banking financial institutions (NBFCs). 2. KYC/AML Shortcomings: Many institutions, especially smaller ones like co-operative banks and fintech startups, lack the resources or expertise to properly implement KYC and AML procedures. These procedures are crucial for preventing money laundering activities. There is need of robust mechanism to identify suspicious accounts and curbing these ongoing frauds which are against KYC/AML guidelines. We are known for our innovative approach, but might not always have robust risk management and compliance teams like traditional banks. This can lead to practices that don't align with RBI regulations. The RBI is serious about enforcing these regulations, and non-compliance can lead to hefty fines. #Reservebank #rbi #banks #nbfc #penalties #KYC #AML #internalaudit #fine #fraud

Election results yesterday was similar to Claim CTC: 400+ Cash component: 300 Inhand salary: 240 #electionresult #election2024

Ab sona hi sona hoga! It is unusual to see achievements on the front page of a newspaper, while disasters typically dominate the headlines. Achievements are frequently stashed away in the sports section. But today is a magnificent exception: India is returning 100 tons of gold from the UK! In 1991, during a severe economic crisis, we were forced to send our gold abroad. What an incredible adventure it's been since then! This is a wonderful and historic time for all Indians. We've all contributed to this amazing accomplishment. Jai Hind! #gold #rbi #centralbank #UK #economy #india #world

#Penalty badi bhari hai .... Kaisi Penalty? The Reserve Bank of India (#RBI) on May 27 has levied monetary penalty on ICICI Bank and YES Bank of Rs. 1 crore and 91 lakhs respectively for rule violations in non compliance. The monetary penalty on ICICI Bank was imposed as it had sanctioned term loan(s) to certain entities in lieu of or to substitute budgetary resources envisaged for certain projects and without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations. Further, the repayment/servicing of which was made out of budgetary resources and without ensuring that the funding proposals were for specific monitorable projects. Penalty on YES Bank was imposed as bank had levied charges for non-maintenance of minimum balance in certain savings accounts having insufficient/zero balance and opened and operated certain internal accounts in the name of its customers for unauthorized purposes like parking funds and routing customer transactions, the RBI said. Being compliance professional, it is high time to be more vigilant and ensure that the direction/instructions issued by RBI from time to time is complied in letter and spirit so as to remove the chances of non-compliance as well as of attracting monetary penalty. #RBI #Central bank #Compliance #circular #news #credit #hdfcbank #icici #yesbank

Another learning why compliance is important..... Press Release: 2024-2025/326 RBI imposes monetary penalty on Karnataka Bank for rule violations On May 17, the Reserve Bank of India (#RBI) announced that it had fined #Karnatakabank Rs 59.10 lakh for breaking regulations. The reason for the penalty against Karnataka Bank was that the bank opened savings deposit accounts in the names of some ineligible businesses, neglected to examine or renew some loan accounts in a timely manner, and neglected to designate these accounts as non-performing assets. The action is based on regulatory compliance violations and is not meant to rule on the legality of any agreements or transactions the bank has made with its clients. #audit #compliance #regulator #RBI