INFORM: Infrastructure, Projects & Finance – February 2024

The highlights of the current issue are:

Notifications/circulars:

• Exposure norm/other restrictions for Urban Cooperative Banks (UCBs)
• Re-appointment and appointment of statutory auditors of central and state co-operative banks
• Norms for credit and investment concentration and credit risk transfer
• Revision to the Master Direction on KYC
• Enhanced bulk deposit limit for Urban Co-op banks in T3 and T4
• Risk management and inter-bank transactions: Mitigating foreign exchange risks
• RBI revises guidelines on inactive accounts and unclaimed deposits in banks

Case laws:

• Dissenting creditor entitled to an amount equivalent to the security interest under Section 30(2)(b) of the Insolvency Bankruptcy Code, 2016.
• Bank has no jurisdiction to hold a foreign passport, OCI as security beyond 15 days.
• Banks cannot charge exorbitant interest rates without proper justification.
• Specimen signature stored by banks can be produced as evidence for dispute in genuineness of signature on cheque.