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Economic Times
23-05-2025
- Business
- Economic Times
RBI penalises Union Bank of India, Transactree Technologies
The Reserve Bank of India has levied a penalty of Rs 63.6 lakh on Union Bank of India for non-compliance with the Banking Regulation Act and directions related to collateral-free agricultural loans. Additionally, Transactree Technologies (Lendbox) faces a Rs 40 lakh penalty for violating norms outlined in the Peer-to-Peer Lending Platform Directions, 2017. Tired of too many ads? Remove Ads The Reserve Bank of India RBI ) on Friday announced penalties on Union Bank of India and Transactree Technologies for not following certain regulatory Bank of India has been fined Rs 63.6 lakh for not complying with some parts of the Banking Regulation Act, 1949, and for not following RBI's directions related to ' Credit Flow to Agriculture – Collateral-free Agricultural Loans,' the RBI a separate statement, the RBI said Transactree Technologies Pvt Ltd , also known as ' Lendbox ,' has been fined Rs 40 lakh. This was for failing to comply with rules under the 'Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017.'The RBI clarified that these penalties were imposed because of regulatory lapses. The fines are not meant to judge the validity of any deals or agreements these companies have made with their from PTI
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Business Standard
23-05-2025
- Business
- Business Standard
RBI fines Union Bank ₹63.6L, Lendbox ₹40L for regulatory breaches
The Reserve Bank of India (RBI) on Friday said it has imposed penalties on Union Bank of India and Transactree Technologies for non-compliance with certain regulatory norms. A penalty of Rs 63.6 lakh has been imposed on Union Bank of India for non-compliance with the certain provisions of Banking Regulation Act, 1949 and certain directions on 'Credit Flow to Agriculture -- Collateral free Agricultural Loans', the RBI said. In another statement, it said a penalty of Rs 40 lakh has been imposed on Transactree Technologies Pvt Ltd (also referred to as 'Lendbox') for non-compliance with certain provisions of the 'Non-Banking Financial Company -- Peer to Peer Lending Platform (Reserve Bank) Directions, 2017'. In both cases, the RBI said the penalties are based on deficiencies in regulatory compliance and not intended to pronounce upon the validity of any transaction or agreement entered into by the entities with its customers.
Time of India
23-05-2025
- Business
- Time of India
RBI penalises Union Bank of India, Transactree Technologies
The Reserve Bank of India ( RBI ) on Friday announced penalties on Union Bank of India and Transactree Technologies for not following certain regulatory rules. Union Bank of India has been fined Rs 63.6 lakh for not complying with some parts of the Banking Regulation Act, 1949, and for not following RBI's directions related to ' Credit Flow to Agriculture – Collateral-free Agricultural Loans,' the RBI said. In a separate statement, the RBI said Transactree Technologies Pvt Ltd , also known as ' Lendbox ,' has been fined Rs 40 lakh. This was for failing to comply with rules under the 'Non-Banking Financial Company – Peer to Peer Lending Platform (Reserve Bank) Directions, 2017.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sàn cao su chất lượng sắp được tặng ở Đường Chuyên Dùng 9 Gạch | Quảng cáo tìm kiếm Tìm Ngay Undo The RBI clarified that these penalties were imposed because of regulatory lapses. The fines are not meant to judge the validity of any deals or agreements these companies have made with their customers. Inputs from PTI
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Business Standard
22-05-2025
- Business
- Business Standard
RBI moots special shares for UCBs as new source to raise capital
The Reserve Bank of India (RBI) has mooted a proposal for urban co-operative banks (UCBs) with deposits of more than Rs 10,000 crore to issue Special Share Certificates (SSCs) to their members or to persons residing within their area of operations. This will offer an additional avenue for raising capital, alongside the existing arrangement for issuing member shares. These special shares are to be issued at book value and would carry the same face value as member shares. However, SSCs shall be issued without voting rights and will not confer any form of membership rights on investors, according to the RBI's discussion paper on capital-raising avenues for UCBs. The RBI noted that a system of dual-class shares in co-operative institutions is well established internationally. It also pointed out that amendments to the Banking Regulation Act made in 2020 contain enabling provisions for the issuance of such special shares. The premium—defined as the difference between the face value and the book value—received on SSCs may be transferred to a 'Special Shares Premium Account'. This account may be disclosed under 'Reserve Fund and Other Reserves', the RBI added. The outstanding amount of SSCs (excluding premium), along with the outstanding amount of Perpetual Non-Cumulative Preference Shares (PNCPS) and Perpetual Debt Instruments (PDIs), should not exceed 35 per cent of the total Tier I capital at any point in time. The board of directors of the UCB will be empowered to determine the amount of SSCs to be raised by the bank. UCBs will be required to submit the offer document to the RBI—including all necessary details and disclosures regarding SSCs—at least one month prior to the issuance date.
Hindustan Times
20-05-2025
- Business
- Hindustan Times
HCBL Cooperative Bank mgmt to appeal after RBI cancels licence
The Lucknow-based HCBL Cooperative Bank Limited management has decided to appeal to the union finance secretary, following the Reserve Bank of India's (RBI) decision on Monday to cancel the bank's certificate of registration (CoR). The RBI cited inadequate capital and poor earning prospects as reasons for the cancellation. On RBI's direction, the Commissioner and Registrar of Cooperative Societies, Uttar Pradesh, has initiated the process to wind up the bank and appoint a liquidator. The liquidator will take control of the bank's management, including its assets and liabilities, and will use the proceeds from asset sales to repay creditors according to their priority, Heera Lal, Commissioner and Registrar, Cooperative Societies UP, said. HCBL Cooperative Bank, launched in 2002, expanded its services across nearby districts including Unnao, Barabanki, Rae Bareli, and Sitapur. The bank operated four branches and one extension counter in Lucknow, providing telebanking, SMS banking, personalised banking, and general services to approximately 10,000 customers, a bank officer who does not wished to be named said. The bank's head office in Gomti Nagar was notably quiet on Tuesday. A few customers visited to inquire about the bank's operations after the RBI order, while bank officials held meetings to assess the situation. The bank faced operational challenges starting in 2015 when RBI ordered its closure under Section 35A of the Banking Regulation Act, 1949. It resumed activities in 2018 but again suspended operations in 2023 following RBI directives. The bank was allowed to operate until May 2025, subject to review, the HCBL officer said. According to the RBI, the bank's current financial position prevents it from fully repaying depositors, and continuing operations would harm public interest. 'The cancellation prohibits HCBL from conducting any banking business, including accepting or repaying deposits, with immediate effect.' Depositors are entitled to claim deposit insurance up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As per bank data, 98.69% of depositors qualify for full reimbursement, with DICGC having paid ₹21.24 crore as of January 31, 2025.
