The Reserve Bank of India(RBI) slapped a fine of Rs 3 crore on Axis Bank and Rs 2 crore on Indian Overseas Bank(IOB) on March 5. The fine was imposed on Axis Bank for violating the Non-Performing Assets (NPA) norms. Indian Overseas Bank was fined for non-compliance with the Know Your Customer(KYC) regulations.
RBI imposes fine on Axis Bank and Indian Overseas Bank
RBI imposed the fine on the banks under Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949, taking into consideration the failure of bank to adhere to the mentioned directions/guidelines issued by RBI.
RBI said that on March 31, 2016, a statutory inspection of Axis Bank with reference to its financial position was carried out. The central bank said in a statement that the inspection, inter alia, revealed “violations of various regulations issued by RBI in the assessment of non-performing assets(NPA).”
RBI said in a statement,”The RBI has imposed, on February 27, 2018, a monetary penalty of Rs 30 million on Axis Bank Limited for non-compliance with the directions issued by RBI on Income Recognition and Asset Classification (IRAC) norms.”
Notably the Gross Non-Performing Assets(GNPA) of Axis Bank, increased by 22.5% to Rs 25,000.51 crore in Q3FY18 as compared to Rs 20,466.82 crore in Q3FY17. However, current quarter’s GNPA is down by 8.76% from Rs 27,402.32 crore in Q2FY18.
In terms of percentage, GNPA of Axis Bank came in at 5.28% in Q3FY18 – versus 5.22% in Q3FY17, but lower if compared with 5.90% GNPA recorded in Q2FY17.
In regard to Indian Overseas Bank, RBI said that fraud was detected in one of the branches of the state owned bank. The statement released by RBI said,”The examination of the documents, including the bank’s internal inspection report, revealed, inter alia, non-compliance with the directions issued by RBI on Know Your Customer (KYC) norms.”
RBI said that the charges of non-compliance with RBI directions/guidelines were confirmed after considering IOB’s reply, oral and written submissions made in the personal hearing. About the fine imposed on IOB, RBI said,”Based on the documents, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for non-compliance with directions issued by the RBI. After considering the bank’s reply, oral and written submissions made in the personal hearing, as also the additional information and documents furnished, the RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty.”
The release also added that the action is being taken on deficiencies in the regulatory compliance and it doesn’t pronounce on the validity of any transaction or agreement entered into the bank with its customers.
Even at 76, Pradip Burman, the zestful chairman of Mobius Foundation radiates a contagious enthusiasm when he is talking about sustainability. The environmental crusader, better known to many as the great-grandson of Dabur founder Dr S.K.Burman, has devoted substantial attention towards promoting the concept of sustainability in all aspects of life. He refuses to conform to the convenience and comfort in today’s world which ultimately adds on to the adverse effects of climate change.
Talking to The Logical Indian, Burman emphasised why sustainability as a concept is indispensable for us. “We ought to be aware of what lies ahead of us. Soon we will finish the oil, iron, tin, and coal, and our next generations will be left with nothing. Recycling, banning plastics, stop felling trees for paper… This should become a part of everyone’s lifestyle,” he urges.
Traditional wisdom and modern research
A mechanical engineer from Massachusetts Institute of Technology (MIT), USA, Burman had always nurtured a keen interest in helping the society, as evident from his graduation project of designing a sonic aid for the visually challenged, which detected obstacles in the way using ultrasonic wave signals.
As an executive for the nature-centric company Dabur, Burman has always opted for natural alternatives to solve his everyday problems like taking Ayurvedic medicine to cure his Arthritis. He later launched the veterinary wing for Dabur – Ayurvet – which provides nature-friendly solutions for animal health care.
A patron of the ancient scientific wisdom of India, Burman always hailed the confluence of “traditional knowledge and modern research”, which he advocated as the Ayurvet motto.
As part of the CSR initiative of Dabur, Pradip Burman founded SUNDESH (Sustainable Development Society) which has been tirelessly working for last 25 years in remote villages for uplifting the rural communities in an environmentally sustainable way.
An advocate of sustainability
Burman believes that sustainability is the indispensable mantra for the world at present. Due to uncontrolled utilisation of the planet’s resources by human beings, the world today stands at a juncture of destabilisation. Today the human race has reached the pinnacle of progress but the advancement is happening in a very unsustainable manner.
Through energy-efficient use of everyday essentials like transport, communication, altered habits of diet, clothing and daily living, some crusaders of sustainability try to reduce their carbon footprint. Pradip Burman’s Mobius Foundation is one of the forerunners toward sustainability goals.
Mobius Foundation aims to change the sustainability dynamics
In 2015, Burman paved the way for the start of Mobius Foundation, focused on sustainability. Named after 18th-century German mathematician August Ferdinand Mobius, the famous Mobius strip has an important philosophical significance. The extraordinary shape symbolises balance and union.
Similar is the essence of Mobius Foundation which wishes to enhance the “Reduce, Reuse, Recycle” principle to a widespread basis in India, helping generations to come.
Founder Pradip Burman wishes to achieve notable development in education, population stabilisation and renewable energy projects.
A dream school in the making
At Coorg, Pradip Burman’s Mobius Foundation is constructing the World Environment School, Coorg (WESc) where the curriculum will surpass the boundaries of books and classrooms, with a special focus on hands-on learning in close collaboration with the environment. Amidst the pristine natural beauty of Coorg, the school will nurture young minds to grow up into future green leaders. As of now, the school will be open to teenagers, welcoming students from standards 6 to 12.
Needless to say, World Environment School will be the first-of-its-kind not only in India but also in entire South Asia. The school is expected to start from March 2020.
The school promises to nurture the responsible behaviour of citizens of our future.
The Sustainability Conference of 2019
In 2019, the Mobius Foundation has planned an international conference, on the lines of the celebrated earth summits over the past decade. The 2019 International Conference on Sustainability Education (ICSE 2019) aims to bring together environmental activists, practitioners of sustainable development as well as climate change experts to help develop a sustainability-focused curriculum.
It is surmised that the conference will give a platform to innovative concepts of Sustainability Education including an essential change in the existing education system ensuring a wholesome personal development for a student.
The Sustainability crusader
The Mobius founder strongly believes that it is high time to sprout sustainability awareness among a society drowning in consumerism and unknowingly doing irreparable harm to the planet, every second. The best way to achieve this goal is through education which is available to all. At present, the education system is predominantly career-oriented, making the learners a victim of materialism, and thus, their dreams are also outlined in those colours.
Living beyond the limits
When asked about his wish to attain the age of hundred, he strongly asserts that more than becoming a centurion, he wishes his life and work continue to better the society even in his absence. “I have lived my life. I wish that whatever I start before I go, will continue – for the betterment of my country,” says Mr Pradip Burman.
He is also a trustee of the Climate Reality Project – India (affiliated to Mr. Al Gore of the Climate Reality Project Foundation, USA). Climate Reality Project, India, has been actively engaged igniting the spark and spreading the message of climate change amongst educators, policy makers and civil society. The India branch looks after more than 500 trained Climate Leaders, and more than 900 volunteers spread all over the country.
In his journey, Pradip Burman has been a beacon of hope for millions, motivating many to join the movement for sustainability. We wish he continues his tireless efforts for promoting sustainability awareness and inspire generations to come.