Blog

May 14, 2018

Prohibition on dealing in Virtual Currencies (VCs)

The Reserve Bank of India Vide Notification No RBI/2017-18/154 DBR.No.BP.BC.104 dated 6th April 2018 decided that with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. It has also stated that the regulated entities which already provide such services shall exit the relationship within three months from the date of this circular.....

May 17, 2018

Guidelines on lending to priority sector for Primary (Urban) Cooperative Banks (UCBs)

The Reserve Bank of India Vide its Notification RBI/2017-18/175 dated 10th May 2018 has revised the guidelines on lending to priority sector for Primary (Urban) Co-operative Banks the salient features of it are as follows: (i) Target for lending to total priority sector and weaker section will continue as 40 per cent and 10 per cent, respectively, of Adjusted Net Bank Credit (ANBC) or credit equivalent of off balance sheet exposure, whichever is higher. (ii) Agriculture: Distinction between direct and indirect agriculture is dispensed with. (iii) Bank loans to food and agro processing units.....

Aug 18, 2018

Monetary Policy - Changes in various rates

Repo rate - 6.5% w.e.f 01.08.2018 Reverse Repo rate - 6.25% w.e.f 01.08.2018 Marginal Standing Facility rate - 6.75% w.e.f 01.08.2018 Bank rate - 6.75% w.e.f 01.08.2018.....

Sep 16, 2018

Master Circular for Commodity Derivative Market

Securities Exchange Board of India(SEBI) on 07-09-2018 has issued a Master Circular in relation to Commodity Derivatives Market. It is a compilation of various circulars issued earlier by the Commodity Derivatives Market Regulation Department(CDMRD). https://www.sebi.gov.in/legal/master-circulars/sep-2018/master-circular-for-commodity-derivatives-market_40276.html.....

Oct 16, 2018

External Commercial Borrowings (ECB) Policy – Liberalisation

<!-- wp:paragraph --> <p>Reserve Bank Of India vide Cirulcar RBI/2018-2019/54 A.P. (DIR Series) Circular No.10 dated 3rd October 2018 has liberalized the norms relating to External Commercial Borrowings. As per the present norms, ECB up to USD 50 million or its equivalent can be raised by eligible borrowers with minimum average maturity period of 3 years. It has been decided to allow eligible ECB borrowers who are into manufacturing sector to raise ECB up to USD 50 million or its equivalent with minimum average maturity period of 1 year.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><br.....

Nov 17, 2018

Payments Bank and Small Finance Banks – access to Call /Notice/Term Money Market

<!-- wp:paragraph --> <p> Reserve Bank Of India vide its Circular No. RBI/2018-19/68 has clarified that Payments Banks and Small Finance Banks are eligible to participate in the Call/Notice/Term money market both as borrowers and lenders. Such eligibility is valid even prior to the completion of the process to get themselves included in the Second Schedule of Reserve Bank of India Act, 1934. The prudential limits and other guidelines on Call money market for Payments Banks and Small Finance Banks will be the same as those applicable to Scheduled Commercial Banks in terms of the Master Directio.....

Dec 16, 2018

Relaxation on guidelines to NBFCs on securitisation transactions

<!-- wp:paragraph --> <p>In order to encourage NBFCs to securitise/assign their eligible assets, Reserve Bank Of India vide its Notification No. RBI/2018-19/82 dated 29th November 2018 has decided to relax the Minimum Holding Period (MHP) requirement for originating NBFCs. MHP in respect of loans of original maturity above 5 years shall be till the receipt of repayment of six monthly instalments or two quarterly instalments, subject to the following requirement:- Minimum Retention Requirement for such securitization / assignment transactions shall be 20% of the book value of loans being securi.....

Dec 16, 2018

Maintenance of Statutory Liquidity Ratio (SLR)

<!-- wp:paragraph --> <p>Reserve Bank Of India vide its Notification No. RBI/2018-19/86 dated 05th December 2018 has decided to reduce the Statutory Liquidity Ratio (SLR) requirement of banks by 25 basis points every calendar quarter from 19.50 per cent of their Net Demand and Time Liabilities (NDTL) to (i) 19.25 per cent from January 5, 2019 (ii) 19.00 per cent from April 13, 2019 (iii) 18.75 per cent from July 6, 2019 (iv) 18.50 per cent from October 12, 2019 (v) 18.25 per cent from January 4, 2020 (vi) 18.00 per cent from April 11, 2020. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p.....

Jan 19, 2019

Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances

<!-- wp:paragraph --> <p>With a view to facilitate meaningful restructuring of MSME accounts that have become stressed, Reserve Bank OfIndid vide its Circular No. RBI/2018-19/100 dated 01-01-2019 hasdecided to permit a one-time restructuring of</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>existing loans to MSMEs classified as ‘standard’ without a downgrade in the asset classification, subject to the following conditions:</p> <!-- /wp:paragraph --> <!-- wp:list {"ordered":true} --> <ol><li>The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrow.....

Feb 26, 2019

Credit Flow to Agriculture- Collateral free agricultural loans

<!-- wp:paragraph --> <p>Keeping in view the overall inflation and rise in agriculture input cost over the years since 2010, RBI vide Circular No RBI/2018-19/118 dated 07th February 2019 has decided to raise the limit for collateral free agricultural loans from the existing level of ₹1 lakh to ₹1.6 lakh. Accordingly, banks may waive margin requirements for agricultural loans upto ₹1.6 lakh</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11469&amp;Mode=0</p> <!-- /wp:paragraph -->.....

Feb 26, 2019

Harmonisation of different categories of NBFCs

<!-- wp:paragraph --> <p>Over a period of time, evolution of the NBFC sector has resulted in several categories of NBFCs intended to focus on specific sector. On a review, it has been decided by RBI vide Notification No. RBI/2018-19/130 dated 22nd February 2019 that for greater operational flexibility, harmonisation of different categories of NBFCs shall be carried out based on the principle of regulation by activity rather than regulation by entity. Accordingly, the three categories of NBFCs viz. Asset Finance Companies (AFC), Loan Companies (LCs) and Investment Companies (ICs) into a new cat.....

Mar 18, 2019

Re-categorization of IDBI Bank Ltd. as a Private Sector Bank

<!-- wp:paragraph --> <p>Reserve Bank Of India vide its Presss Release dated 14th March 2019 has categorized IDBI Bank Limited as a ‘Private Sector Bank’ for regulatory purposes with effect from January 21, 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=46552">https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=46552</a></p> <!-- /wp:paragraph -->.....

Mar 18, 2019

Interest Subvention Scheme for Short Term Crop Loans during the years 2018-19 and 2019-20

<!-- wp:paragraph --> <p>Reserve Bank of India vide Notification No RBI/2018-19/137 dated 07th March 2019 has announced that the Government of India has approved the implementation of the Interest Subvention Scheme with modifications for the years 2018-19 and 2019-20 for short term crop loans up to Rs. 3 lakh with the following stipulations:<br>  To provide short-term crop loans upto Rs. 3 lakh to farmers at an interest rate of 7% p.a. during the years 2018-19 and 2019-20, interest subvention of 2% p.a. will be provided to Public Sector Banks (PSBs) and Private Sector Commercial Banks.<br> .....

Apr 18, 2019

Deferral of Implementation of Indian Accounting Standards (Ind AS) by Banks

<!-- wp:paragraph --> <p>Reserve Bank Of India vide its Notification No. RBI/2018-2019/146 dated 22nd March 2019 has decided to defer the implementation of Ind AS till further notice by RBI.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11506&amp;Mode=0</p> <!-- /wp:paragraph -->.....

Apr 18, 2019

Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other place of business in India by foreign entities

<!-- wp:paragraph --> <p>Reserve Bank of India vide Notification No RBI/2018-19/154 dated 28th March 2019 has issued guidelines regarding opening of BO/LO/PO in India by foreign entities. For opening of a BO/LO/PO or any other place of business in India, where the principal business of the applicant falls in the Defence, Telecom, Private Security and Information and Broadcasting sector, no prior approval of the RBI shall be required, if Govt. approval or license / permission by the concerned Ministry / Regulator has already been granted. Further, in the case of proposal for opening a PO relati.....

May 16, 2019

Legal Entity Identifier: Extension of deadline

<!-- wp:paragraph --> <p>Earlier, Reserve Bank Of India hasissued CircularNo.FMRD.FMID.No.10/11.01.007/2018-19dated 29-11-2018on requirement of Legal Entity Identifier (LEI) for participation in non-derivative markets.LEI is a 20-character unique code assigned to entities who are parties to a financial transaction. All participants, other than individuals, undertaking transactions in the markets regulated by RBI and non-derivative forex markets shall obtain LEI codes by the due date specified in that circular. RBIvide Notification No.RBI/2018-19/177dated 26-04-2019 extended the due dates to ap.....

Jun 21, 2019

Appointment of Chief Risk Officer (CRO) for NBFCs

<!-- wp:paragraph --> <p>RBI vide Notification No. RBI/2018-19/184 dated 16<sup>th</sup> May, 2019 has decided that NBFCs with Asset Size of more than Rs.50 Billion shall appoint a CRO with clearly specified Roles and Responsibilities with adequate Independence to ensure high levels of Risk Management.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Instructions for NBFCs in appointing a CRO and Roles of CRO are detailed in the circular.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><a href="https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT18493A8BC3E04424A89A29ED4D18C0B67FC.PD.....

Jun 21, 2019

Waiver of Charges on National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS) Systems

<!-- wp:paragraph --> <p>RBI vide Notification No. RBI/2018-2019/2018 dated June 11, 2019, RBI has decided that with effect from 1<sup>st</sup> July,</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>2019 processing charges and Time Varying charges levied by RBI on banks for NEFT and RTGS transactions&nbsp;&nbsp; will be waived.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Banks are advised to pass on the benefits to their customers for NEFT and RTGS transactions with effect from 1<sup>st</sup> July, 2019.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><a href="https://rbidocs.....

Sep 23, 2019

Cash withdrawl at Point of Sale (PoS) Devices

<!-- wp:paragraph --> <p>RBI vide notification no. RBI/2019-20/50 dated August 29, 2019 reiterates the details regarding Cash withdrawl at PoSdeivces as the thing notified has not being implemented.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>Cash can be withdrawn from PoS devices through all Debit Cards/Open loop prepaid Cards issued by banks which is limited to Rs.1,000 per day in Tier I and II centres and Rs.2000 per day in Tier III to VI Centres.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>It can be charged to customers not more than 1% on the transaction amount.</p> <!--.....

Sep 23, 2019

real Time Gross Settlement (RTGS) System – Increase in operating hours

<!-- wp:paragraph --> <p>RBI vide notification no. RBI/2019-20/46 dated August 21, 2019 decides to increase in operating hours of RTGS system.</p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p>At present, the RTGS system is available for customer transactions from 8:00 am to 6:00 pm and for inter-bank transactions from 8:00 am to 7:45 pm. In order to increase the availability of the RTGS system, it has been decided to extend the operating hours of RTGS and commence operations for customers and banks <strong>from 7:00 am</strong>. </p> <!-- /wp:paragraph --> <!-- wp:paragraph --> <p><a hre.....

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