Central Bank of India Archives

This is news for you if your account is also with the Public Sector Central Bank of India (CBI). In order to improve its financial position, the bank is planning to close a large number of branches. The news agency Reuters reported that the bank plans to close 13 percent of its branches across the country.

4594 branches across the country

By March 2023, the Central Bank Of India plans to close 600 branches nationwide or merge the loss-making ones. There are 4594 branches of the Central Bank of India across the country.

Listed on PCA List in 2017

Significantly, in the year 2017, many banks, including the Central Bank of India, were included in RBI’s prompt corrective action (PCA) list. Banks experiencing bad financial conditions are included in this list.

12 banks placed in PCA in 2018

The banks included in this list were given a chance to improve their financial situation, but there were many restrictions. In 2018, RBI included 12 banks in its PCA framework. In those days, there were 11 government and one private bank. Who was provided with additional working capital.

Financial position of all other banks improved

Media reports say that, with the exception of the Central Bank of India, all other banks were removed from the PCA list. Despite no improvement in the financial situation, the Central Bank remained on this list. There is a possibility of closing 13 percent of the bank’s branches in order to improve its financial situation.

Reserve Bank of India (RBI) imposed a heavy fine on a public sector bank. If you are also a customer of CBI, Central Bank of India, you should read this news. For violating regulations related to protecting customers’ interests, the RBI fined the Central Bank of India Rs 36 lakh. According to the RBI, action against the bank was taken due to a lack of regulatory compliance.

RBI imposed a heavy fine

RBI informed that it investigated it and issued a ‘show-cause notice to the bank, following which RBI made this decision. In fact, the central bank RBI is not satisfied with this answer. RBI said the CBI was not following the rules to protect the interests of its customers. RBI has responded by taking this action.

Detail of discussions of MPC released

The RBI has also released the details of the discussion held at the six-member meeting of the MPC from April 6-8. As mentioned here, the MPC decided at this meeting that the repo rate will remain unchanged. As such, let us inform you that, for the 11th consecutive time, MPC hasn’t changed the repo rate related to the cost of borrowing. In spite of rising inflation in the country, this decision was taken to accelerate the pace of economic growth.

According to the minutes of the meeting, the Governor of the RBI had said, ‘The situation is dynamic and changing rapidly.’ Every time we reevaluate the situation, we should be ready to take the appropriate steps.

Increase in inflation forecast

Also, the RBI raised its inflation forecast for the current fiscal year to 5.7 percent. Let us know that in February it was expected to be 4.5 percent. As a result, the RBI reduced its growth rate forecast for the current financial year from 7.8 percent to 7.2 percent. As a whole, in this meeting, the emphasis was on accelerating economic growth.

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Tag: Central Bank of India

Big crisis on the Central Bank Of India, 600 branches will have to be closed

This government bank was Monetary fined heavily by the RBI, is your account even?