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RBI and FIU-IND Sign MoU to Strengthen AML/CFT Framework AND Cancels Licence of Colour Merchants Co-op Bank and Approves Revolut's Entry.

Banking & Finance | Dated: 19 Apr 2025

On April 16, 2025, the Reserve Bank of India (RBI) and New Delhi-based Financial Intelligence Unit-India (FIU-IND) under the Department of Revenue (DOR), Ministry of Finance (MoF) signed a Memorandum of Understanding (MoU) to enhance coordination in implementing the Prevention of Money Laundering Act, 2002 (PMLA) and its associated rules.

🎯 Key Highlights:

- The MoU was signed by Vivek Aggarwal, Director of FIU-IND, and R. Laksmi Kanth Rao, Executive Director (ED) of the Department of Regulation, RBI.

💡 Other Important Facts:

(i) RBI cancelled the licence of Ahmedabad (Gujarat)-based Colour Merchants Co-operative Bank Limited due to inadequate capital adequacy, poor earnings prospects, and non-compliance with Section 11(1) and Section 22(3)(d) read with Section 56 of the Banking Regulation Act, 1949.
(ii) RBI imposed penalties of Rs. 61.4 lakh on KMBL, Rs. 38.6 lakh on IDFC First Bank, and Rs. 29.6 lakh on PNB for regulatory non-compliance.
(iii) UK-based Revolut, a global financial application (App), received full authorization from the RBI to operate as a Prepaid Payment Instrument (PPI) issuer and enable Unified Payments Interface (UPI) transactions in India.

📚 Test Your Knowledge:

Which New Delhi-based organization recently signed an MoU with RBI to enhance the AML/CFT framework in India?

Correct Answer: FIU-IND

🚀 Quick Recap:

About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai