This month, RBI improves the governance of Asset Reconstruction Companies (ARC’s) by strong compliance of rules for increasing participation and investment in distressed asset resolution. RBI requires banks to increase its provisions for project finance from 1-2% to 5% as it involves collateral which makes it less risky for banks and also provides financial safety. So far, it is noticed that the number of frauds occurring in banks have increased over the period whereas the amount involved in these frauds has reduced by 47%. RBI makes Paytm transfer its operation from PPBL to other banks as concerns regarding money laundering were raised due to KYC norms and compliance issues.
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