RBI's central board deliberates on domestic and global economic situations

According to a statement from the RBI, the Board also approved the risk-based deposit insurance framework for banks.

"The 620th meeting of the Central Board of Directors of the Reserve Bank of India was held today in Hyderabad under the Chairmanship of Governor Sanjay Malhotra," RBI said in an official statement.

The Board discussed the global and domestic economic situation and associated challenges.

Additionally, it examined the Trend and Progress of Banking in India, 2024–2025 draft report, and the operations of a few Central office departments.

"It approved the risk-based deposit insurance framework for banks. The Board also reviewed the activities of select Central Office Departments and the draft report on Trend and Progress of Banking in India, 2024-25," the statement added.

The meeting was attended by Deputy Governors T. Rabi Sankar, Swaminathan J, Poonam Gupta, and Shirish Chandra Murmu.

Other directors of the Central board -- Nagaraju Maddirala, Department of Financial Services Secretary; Satish K Marathe, Revathy Iyer, Pankaj Ramanbhai Patel, and Ravindra H Dholakia, too, attended the meeting.

Earlier, the RBI had issued a compounding order under Section 15 of the Foreign Exchange Management Act (FEMA), 1999, in the case of Nearbuy India Private Limited, which has resulted in the termination of proceedings against the company for alleged contraventions of the Act, the Enforcement Directorate (ED) said.

The order was passed by the RBI on October 17 after the issuance of "No Objection" by the ED, an agency statement said.

In this case, based on credible information received, an investigation was taken up by the ED under the provisions of the Act.

"After completion of investigation, the agency filed a complaint under FEMA before the Adjudicating Authority on December 3, 2024, pointing out the contraventions under the FEMA which include late reporting of foreign inward payments under Para 9(1)(A) of Schedule 1 to FEMA 20/2000-RB, covering Rs 35.82 crore, late filing of Form FCGPR after issuing shares under Para 9(1)(B) of the same schedule, covering Rs 73.01 crore."

The RBI has now done the compounding for these contraventions, the statement said.