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Bombay High Court will hear Kotak Bank’s plea against RBI on March 6

Bombay High Court will hear Kotak Bank’s plea against RBI on March 6

Finance
The Bombay High Court will hear the case filed by Kotak Mahindra Bank against central banker the Reserve Bank of India (RBI) on March 6. As per the Bombay High Court website, the division bench of Justice SC Dharmadhikari and Justice RI Chagla has posted the hearing in March. “Due to paucity of time the matter is adjourned to March 6,” said the division bench in its order, further adding, “In case any ad-interim/interim relief is operating till today, the said order will continue to operate till the next date. If ad-interim/interim relief is not granted for a limited period, the said order will remain unaffected.” In December 2018, Kotak Mahindra Bank had moved to the court after the central banker had rejected its proposal to issue perpetual non-convertible preference shares to comply wit
Travelex: Banks halt currency service after cyber-attack

Travelex: Banks halt currency service after cyber-attack

Business
A number of High Street banks have stopped customers ordering foreign currency, following a ransomware cyber-attack on Travelex.Problems at Lloyds, Barclays and Royal Bank of Scotland follow disruption at supermarkets Sainsbury's and Tesco.All get their foreign notes from Travelex, whose computer system is down after hackers demanded $ 6m (£4.6m) in return for customer data.Travelex says there is no evidence customer data has been compromised.However, Travelex cashiers have been resorting to using pen and paper to keep money moving at cash desks in airports and on the High Streets.And banks are now reporting their supply of notes from Travelex has dried up following the cyber-attack, which struck last week.An RBS representative said: "We are currently una
Banks not keen to lend big to small businesses

Banks not keen to lend big to small businesses

Finance
MUMBAI: Bank lending to India’s micro, small and medium enterprises (MSMEs) shrank from a year earlier as well as the beginning of FY20, despite measures by the government to boost credit flow to these businesses as lenders turned cautious due to slowing economic growth. The contraction in gross credit flow to the sector could be on the back of risk-averse lending by top banks as slowing consumption and stalling manufacturing growth have rubbed off on many of these businesses and raised likelihood of defaults, bankers and industry experts ET. Gross loans to MSME sector fell 3.43% to <Rupee>4.65 lakh crore in November from <Rupee>4.81 lakh crore in March, as per RBI data. The drop was 0.5% from November 2018. While loans to micro and small businesses shrank 3.4% since the beginn
Cooperative banks will need RBI approval for CEO appointment

Cooperative banks will need RBI approval for CEO appointment

Finance
In an attempt to strengthen its supervisory control over the Urban co-operative banks (UCBs) the Reserve Bank on Friday said that UCBs with deposit base over Rs 100 crore will require prior approval of RBI for appointment of their CEOs. After capping lending to a single borrower and raising the priority sector lending requirements for UCBs, the RBI in its final guidelines on constitution of Board of management in UCBs, said that UCBs with deposit size of Rs 100 crore and above, will also require prior approval of RBI for appointment of their CEOs. The central bank’s announcement is significant considering its supervision practices came in for criticism after a gross violation of lending norms by a better run UCB- PMC Bank as a result of which the bank is under an RBI appointed administrato
RBI has not put banks on alert: Shaktikanta Das

RBI has not put banks on alert: Shaktikanta Das

Finance
BHUBANESWAR: The Reserve Bank of India on Thursday said it has not put banks on alert, as reported by a section of media, but asked lenders to remain prepared to face emerging and new challenges. RBI Governor Shaktikanta Das was in the city to attend a central board meeting. He also met Chief Minister Naveen Patnaik in the state capital. "There is nothing like putting banks on alert though a section of media has reported. We have said that banks should remain prepared to face the emerging and new challenges," Das told reporters. The RBI governor said he also discussed a host of banking-related issues with Patnaik during their meeting. "We discussed on financial inclusion, bank branches in the state, credit flow to agriculture sector and streamlining of the DBT through e-Kuber platform in O...