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RBI imposes Rs 4 crore penalty on Citibank.

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The Reserve Bank of India (RBI) on Friday said that it has imposed a monetary penalty of Rs 4 crore on Citibank for the contravention of Section 10 (1) (b) (ii) of Banking Regulation Act, 1949 (the Act).

RBI in a release said the monetary penalty has been imposed on Citibank for non-compliance with the directions issued by it on obtaining a declaration from customers about credit facilities enjoyed with other banks, granting non-fund based facilities to non-constituent borrowers, verifying data available in CRILC database and obtaining no-objection certificate (NOC) from lending banks at the time of opening current accounts, and submission of compliance to risk assessment findings.

According to the RBI, this action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

According to India’s central bank, the statutory inspection of the Indian operations of the bank with reference to its financial positions as on March 31, 2017, and March 31, 2018, and the Risk Assessment Reports (RARs) pertaining thereto revealed, inter-alia, contravention with the provisions of the Act and non-compliance with the above-mentioned directions issued by the RBI.

RBI has also imposed a monetary penalty of Rs 60 lakh on Bharat Co-operative Bank (Mumbai) Ltd, Rs 45 lakh on TJSB Sahakari Bank Limited (the bank) and Rs 40 lakh on Nagar Urban Co-operative Bank Ltd, Ahmednagar, for non-compliance with directions issued by it on the Income Recognition and Asset Classification (IRAC) norms and Frauds.

While imposing a monetary penalty on Bharat Co-operative Bank (Mumbai) Ltd, TJSB Sahakari Bank Limited (the bank), RBI said that the penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) and Section 56 of the Banking Regulation Act, 1949, taking into account failure of the bank to adhere to the aforesaid directions issued by the RBI.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers, said the RBI.

“The statutory inspection of the banks with reference to its financial position as on March 31, 2018, conducted by RBI, revealed, inter alia, non-compliance with RBI directions on IRAC norms and Frauds – classification and reporting. A separate notice was issued to both the banks advising them to show cause as to why the monetary penalty should not be imposed for non-compliance with the aforesaid directions. After considering the banks’ reply, oral submissions made during the personal hearing and additional submissions made after the personal hearing, RBI came to the conclusion that the above charges were established and warranted imposition of monetary penalty,” said the RBI.

“After considering the bank’s reply and oral submissions made during the personal hearing, the RBI came to the conclusion that the charges regarding non-compliance with RBI directions on IRAC norms, management of advances and exposure norms and statutory/other restrictions were established and warranted imposition of monetary penalty,” said the RBI.

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Govt plans to boost organic farming by doubling allocation,but experts say it’s anti Swadeshi

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  • Agriculture Ministry has proposed to double the allocation for the sector to Rs 1,300 crore annually in coming years
  • It has also proposed to bring additional 25 lakh hectares under organic farming in the next 5 years.
  • The current organic farming coverage of 28 lakh hectares is a measly 2% of the total farm land.
  • Zero budget farming expert Subhash Palekar thumbed down the government’s move saying it was a foreign concept and destroys fertility of the farmland

In a serious push to natural farming within the nation, the Agriculture Ministry has proposed to double the allocation for the sector to Rs 1,300 crore yearly. The Center has supplied Rs 660 crore to help the sector in its funds estimate (BE) for FY21. In a presentation to the Fifteenth Finance Fee, the Agriculture Ministry has proposed to convey extra 25 lakh hectares underneath natural farming within the subsequent 5 years. The present natural farming protection of 28 lakh hectares is a measly 2% of the entire farm land.

The federal government has been selling natural farming within the nation by varied central schemes. The transfer is geared toward decreasing the usage of chemical fertilizers, pesticides and progress regulators. States corresponding to Madhya Pradesh, Gujarat, Maharashtra and Sikkim have boosted natural farming by offering varied incentives and help.

In January 2016, Sikkim was declared India’s first 100% natural state. Regardless of the federal government’s push for natural farming, its adoption has been sluggish. In comparison with a few of the European nations, the entire acreage underneath natural farming is far decrease. As per Eurostat, the entire space underneath natural farming within the European Union (EU) has been growing through the years. In 2018, the entire space underneath natural farming was 13.four million hectares of the agricultural land.

This made up about 7.5% of complete EU agricultural land in that 12 months. Moreover motivating farmers to take up natural farming, India has been pushing for exports of natural merchandise particularly vegetables and fruits. As per Agricultural and Processed Meals Merchandise Export Improvement Authority (APEDA), complete exports of natural merchandise in worth phrases recorded a 50 per cent leap in 2018-19 to Rs 5,151 crore. Among the many main meals gadgets that had been shipped out from the nation included flax seeds, sesame, soybean, arhar (purple gram), rice and tea. The US and European Union (EU) member-countries had been the most important consumers of those natural merchandise.

However not everybody is happy about natural farming. Subhash Palekar –  the pioneer of Zero Funds Pure Farming (ZBNF) – mentioned that natural farming is a overseas technique and shouldn’t be inspired when the federal government is stressing on AtmanirbharBharat.

“AtmanirbharBharat means Swadeshi. Natural farming will not be Swadeshi and it destroys the fertility of the land. It’s far dearer than standard farming utilizing chemical fertilizers. The enter value is much increased in case of natural farming. It is past my understanding that whereas the federal government is speaking about Atmanirbhar Bharat it has determined to advertise natural farming. This coverage will not be proper,” Palekar mentioned.

Agriculture coverage professional Vijay Sardana mentioned that there was no dependable information to conclude that productiveness goes up in natural farming. “There is no such thing as a subject in pushing for natural farming however the authorities also needs to spell out its meals safety plan. Then, the opposite subject is natural merchandise are offered at a premium so solely the wealthy can afford to purchase,” Sardana mentioned.

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