RBI opens new dept.

Q.  Which department will RBI open from April 3 to oversee breaches of rules and their violation?
- Published on 03 Apr 17

a. Enforcement department
b. Grievances Redressal department
c. Social welfare department
d. Financial laws department

ANSWER: Enforcement department
RBI opens new dept.RBI will open a separate enforcement department from April 3 to oversee possible breaches of rules and take punitive actions against those who violate them.

The Enforcement Department shall, inter alia, develop a broad policy for enforcement and initiate enforcement action against the regulated entities for violation consistent with such policy.

The department proposed to be opened on April 3 would serve as a centralised wing to deal with banks only for enforcement action.

Reserve Bank of India (RBI) has reported that the net profit/loss, profit after tax (PAT) of Public Sector Banks (PSBs) declined to INR (-)17,993 crore during 2015-16 from INR 37,823 crore in 2014-15 and INR 37,019 crore in 2013-14.

At the same time PAT of private banks increased from INR 33,661 crore during 2013-14 to INR 38,735 crore in 2014-15 and further to INR 41,314 crore during 2015-16.

PAT of PSBs stood at Rs (-)1,678 crore for the period April- December, 2016 while it was INR 31,262 crore for the same period for private sector.

RBI has informed that as part of the package of measures announced on August 25, 2016 for development of fixed income and currency markets, in connection with developing the market for rupee denominated bonds overseas, it has been decided to permit banks to issue Perpetual Debt Instruments (PDI) qualifying for inclusion as Additional Tier 1 capital and debt capital instruments.

It was also decided to allow banks to issue rupee denominated bonds overseas under the extant framework of incentivising issuance of long term bonds by banks for financing infrastructure and affordable housing.

The RBI has also taken various measures to deepen the corporate bond market.

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