RBI
Monday, March 16, 2020
Covid-19- Operational and Business Continuity Measures
RBI has issued Operational and Business Continuity Measures to all Banks and NBFC, for preventing and controlling the local transmission of novel coronavirus disease (COVID-19).
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT1728EEC42EF697147629A2261A4EAF2D3DD.PDF
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Monday, March 23, 2020
Priority Sector Lending – Lending by Banks to NBFCs for On-Lending
RBI has extended the priority sector classification for bank loans to NBFCs for on-lending for FY 2020-21. Further all the existing loans disbursed under the existing model shall be continued to be classified as under Priority sector till the date of repayment/ maturity. Bank credit to registered NBFCs (other than MFIs) and HFCs for on-lending will be allowed up to an overall limit of five percent of individual bank’s total priority sector lending.
The link for the aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT179A2BCEB830C3748BCB4A2688354A01584.PDF
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Friday, March 27, 2020
Change in Bank Rate
RBI has announced that as the Bank Rate is revised downwards by 75 basis points from 5.40 per cent to 4.65 per cent with immediate effect, all the penal interest rates on shortfall in reserve requirements, which are linked to the Bank rate are also stand revised.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT19089EDCCF4DC674B7AB80F979AA01E4989.PDF
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Change in Daily Minimum Cash Reserve Maintenance Requirement
RBI has notified that maintenance of minimum daily Cash Reserve Ratio has reduced from 90 per cent of the requirement to 80 per cent effective from the fortnight beginning March 28, 2020. This is a one-time dispensation available up to June 26, 2020.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT192925EFFEAB1B44D0BA813013B4B00A359.PDF
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Risk Management and Inter-Bank Dealings- Participation of Banks in Offshore Non-deliverable Rupee Derivative Markets
RBI has announced that following amendments are being made to the Master Direction- Risk Management and Inter-bank Dealings dated July 06, 2016, as updated from time to time (Master Direction) which shall come into effect from June 1, 2020.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/SOLONDF01A3A921152B4A388D6A9C46B2D4FE4F.PDF
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Covid-19 – Regulatory Package
RBI has announced COVID-19 Regulatory Package to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic and to ensure the continuity of viable businesses.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI186B27003E9DB3D4FB49BDDF955F4289D68.PDF
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Legal Entity Identifier: Extension of Deadline
RBI has extended the timeline for implementation of LEI (Phase III) due to the outbreak of novel coronavirus disease (COVID-19) and with a view to enabling smoother implementation of the LEI system in non-derivative markets. It is extended till September 30, 2020 for the entities whose net worth is upto Rs. 200 crores.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT185246CB2BC78DA4F7188740B5528CA73D2.PDF
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Liquidity Adjustment Facility
RBI has notified that repo rate under the Liquidity Adjustment Facility (LAF) has been reduced by 75 basis points i.e. from 5.15 per cent to 4.40 per cent and reverse repo rate under LAF stand adjusted from 4.90 per cent to 4.00 per cent with immediate effect.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI18254BF5E95BC68481B93509081E833650E.PDF
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Maintenance of Cash Reserve Ratio (CRR)
RBI has decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points from 4.00% to 3.00% of their Net Demand and Time Liabilities (NDTL) with effect from the reporting fortnight beginning March 28, 2020 for a period of one year, ending on March 26, 2021.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI191853C2E37DDCA4A1CBF355C6A998F5660.PDF
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Maintenance of Statutory Liquidity Ratio (SLR) – Marginal Standing Facility (MSF)
RBI has notified that it has been decided to raise the borrowing limit of Scheduled Banks (excluding Regional Rural Bank) under the MSF scheme from 2 per cent to 3 per cent of their Net Demand and Time Liabilities (NDTL) outstanding at the end of the second preceding fortnight with immediate effect. The enhanced limit will be applicable up to June 30, 2020
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI189D34B32393D5A4A81B6C7B322FF5D1743.PDF
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Standing Liquidity Facility for Primary Dealers
The Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralized liquidity support) from the Reserve Bank would be available at the revised repo rate of 4.40 per cent with effect from March 27, 2020
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/184SLFPDS5F1EB626C0594ADBA826D9B2FE76FD4B.PDF
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Monday, March 30, 2020
Investment by Foreign Portfolio Investors (FPI): Investment Limits
RBI has increased the Investment Limit by Foreign Portfolio Investor (FPI) for FY 2020-21. Limit for FPI Investment in Corporate bonds increased by 15% of outstanding stock for FY 2020-21
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIR199CBCDC327BD354347821544014A340B27.PDF
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Fully Accessible Route for Investment by Non-Residents in Government Securities
RBI has issued direction on “Fully Accessible Route (FAR)” for investment by non-residents in securities issued by the Government of India. All new issuances of Government securities of 5-year, 10-year and 30-year tenors from the financial year 2020-21 will be eligible for investment under the FAR as “specified securities”.
The link for aforesaid notification and circular are mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT20002D420738201429395C108665A28EF27.PDF
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/DIRECTION3619B5C52DDD4542A40C86D4B6B9F66D.PDF
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Tuesday, March 31, 2020
Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2020
RBI has issued Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2020 for making various amendments in the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/FEMA23R3991A9612AEE34BB0BD8FC52B66CC4060.PDF
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Wednesday, April 15, 2020
Investment by Foreign Portfolio Investors (FPI) in Government Securities: Medium Term Framework (MTF)
RBI has notified that the limits for FPI investment in Government securities (G-secs) and State Development Loans (SDLs) shall remain unchanged at 6% and 2%, respectively, of outstanding stocks of securities for FY 2020-21
The link for aforesaid circular is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/FPI19C2AF97866841C3A804DD6F67 2F02D4.PDF
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Friday, April 17, 2020
Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR)
RBI stated that banks are required to maintain LCR of 100 % with effect from January 1, 2019. However, in order to accommodate the burden on banks cash flows on account of the COVID-19 pandemic, Banks are permitted to maintain low LCR as prescribed.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT2170558BB99816C46E1993A09208 61FCCC7.PDF
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COVID19 Regulatory Package – Asset Classification and Provisioning
Due to the lingering impact of COVID-19 Pandemic on businesses and financial institutions in India, RBI has given the detailed instructions with regard to asset classification and provisioning.
The link for aforesaid notification is mentioned as below:
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COVID-19 Regulatory Package – Review of Resolution Timelines under the Prudential Framework on Resolution of Stressed Assets
Due to the lingering impact of COVID-19 Pandemic on businesses and financial institutions in India, RBI has given detailed instructions relating to extension of resolution timelines under the Prudential Framework on Resolution of Stressed Assets.
The link for aforesaid notification is mentioned as below:
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Declaration of dividends by banks (Revised)
In an environment of heightened uncertainty caused by COVID-19, it is important that banks conserve capital to retain their capacity to support the economy and absorb losses. RBI stated that all banks shall not make any further dividend payouts from the profits pertaining to the F.Y. ended March 31, 2020 until further instructions.
The link for aforesaid notification is mentioned as below:
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Prudential Norms on Income Recognition, Asset Classification and Provisioning Pertaining to Advances – Projects under Implementation
RBI had decided to extend the guidelines issued to banks mutatis mutandis, to NBFCs as well, on deferment of date of commencement of commercial operations (DCCO) for projects in commercial real estate (CRE) sector.
The link for aforesaid circular is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT216D0553B557CB34B57AF49DAF 0D9D15DFD.PDF
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Monday, April 20, 2020
Internal ML/TF risk assessment by REs – Amendment to Master Direction (MD) on KYC
A new section (5A) has been added to chapter II of the MD on KYC requiring REs to carry out “Money Laundering (ML) and Terrorist Financing (TF) Risk Assessment” exercise periodically has been introduced as per RBI notification.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/221IRAMDKYC501344A199CE47A5959F047427D7D56A.PDF
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Thursday, April 23, 2020
Electronic Cards for Overdraft Accounts
RBI has issued that the electronic card for Overdraft Accounts in the nature of personal loans shall be allowed to be used for domestic transactions only. Further, adequate checks and balances shall be put in place to ensure that the usage of such cards is restricted to facilitate online/ non-cash transactions.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT225F53F5A3AFB6245B3AB7BF621C11AA588.PDF
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Wednesday, April 29, 2020
Submission of regulatory returns – Extension of timelines
In view of the disruptions on account of COVID-19 pandemic, RBI has extended the timelines for the submission of various regulatory returns. The extension will be applicable to regulatory returns required to be submitted upto June 30, 2020.
The link for aforesaid notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT2284F727CDA432B4CD783D898FB2B50AC2F.PDF
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Wednesday, May 13, 2020
Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit – Extension
RBI has notified that Government of India (GoI) has approved the extension of Interest Equalization Scheme on pre and post Shipment Rupee Export Credit with effect from April 01, 2020 and end on March 31, 2021 covering a period of one more year.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/231IESB366F6A1C1074B599555190440E745DF.PDF
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Monday, May 18, 2020
Risk Management and Inter-Bank Dealings – Hedging of Foreign Exchange Risk Date of Implementation
RBI has decided that the Directions on Hedging of Foreign Exchange Risk, which were likely to come into effect from June 01, 2020, the said directions will now come into effect from September 1, 2020 and directions on the participation of Banks in Offshore Non-deliverable Rupee Derivative Markets will come into effect from June 1, 2020.
The link for aforesaid Circular is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI232AEE2D38A335C4A96991CFBACA4192812.PDF
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Reporting Platform for OTC Derivatives – Transactions Undertaken by IFSC Banking Units (IBUS) and Non-Deliverable Derivative Contracts (Involving Rupee or Otherwise)
RBI has notified that all foreign exchange non-deliverable derivative contracts (NDDCs) undertaken by banks in India having an AD-1 license through their IBUs or through their branches in India or through their foreign branches (in case of foreign banks operating in India, through any branch of the parent bank) shall be reported to CCIL’s reporting platform with effect from June 1, 2020.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/233NDDCOTC8FD90CF56EDD44D8B12B87441B7BEB2A.PDF
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Tuesday, May 19, 2020
Extending Master Direction – Know Your Customer (KYC) Direction, 2016 to Housing Finance Companies
RBI has notified that; it has been decided to extend the Master direction – KYC to all Housing Finance Companies. Instructions/ guidelines/ regulations contained in circulars shall stand repealed.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT2358988BB2AB792443CA17A0FFE3A012B64.PDF
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Friday, May 22, 2020
Change in Bank Rate
RBI has notified that, as announced in the Monetary Policy Statement 2020-21, the bank rate is revised downwards by 40 basis points from 4.65% to 4.25% with immediate effect.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI24072EB4311662B490A998A108453FC66C1.PDF
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‘Voluntary Retention Route’ (VRR) For Foreign Portfolio Investors (FPIS) Investment in Debt – Relaxations
RBI has decided to allow FPIs, an additional time of three months to invest 75% of their ‘Committed Portfolio Size’ (CPS), due to disruptions caused by COVID-19. As FPI shall invest at least 75% of their CPS within 3 months from the date of allotment so, it has been relaxed by granting extension.
The link for aforesaid Circular is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/VRR12B8ED1146294C3A9C251D08201FAB41.PDF
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Import of Goods and Services- Extension of Time Limits for Settlement of Import Payment
RBI has announced that due to outbreak of COVID- 19 pandemic, it has been decided to extended the time period for completion of remittance against normal imports (except in cases where amounts are withheld towards guarantee of performance etc.) from 6 months to 12 months from the date of shipment for such imports made on or before July 31, 2020.
The link for aforesaid Circular is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIRIMPORT81A587BE5FAA4A65ACD27AA6D5BE2160.PDF
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Liquidity Adjustment Facility (LAF) – Repo and Reverse Repo Rates
RBI has notified that due to reduction in the repo rate of Liquidity Adjustment Facility (LAF) from 4.40% to 4.00% with immediate effect, the reverse repo rate under LAF stands adjusted to 3.35% with immediate effect.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT23737C7FC1EBCDB4F57BAF1584C30642F19.PDF
Marginal Standing Facility
RBI has notified that due to reduction in the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 40 basis points from 4.40% to 4.00% with immediate effect, as announced in the Monetary Policy Statement, 2020-21 today, Marginal Standing facility (MSF) rate also stands adjusted from 4.65% to 4.25% with immediate effect.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI2367F96819E5FC24EE78D0736FE67ED13A4.PDF
Standing Liquidity Facility for Primary Dealers
RBI has notified that due to reduction in the repo rate under LAF by 40 basis points, the Standing Liquidity Facility provided to Primary Dealers (collateralized liquidity support) from the Reserve Bank would be available at the revised repo rate of 4% with effect from May 22, 2020.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT2388FE02C207BAA40FCAD123117EEBD7342.PDF
Saturday, May 23, 2020
Covid-19 – Regulatory Package
RBI has announced COVID-19 Regulatory Package to mitigate the burden of debt servicing, prevent the transmission of financial stress to the real economy and to ensure the continuity of viable businesses and households.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT2455D86E6F80D9D4BC29C0DFAA43D76D9A4.PDF
Covid19 Regulatory Package – Review of Resolution Timelines Under the Prudential Framework on Resolution of Stressed Assets
RBI has further extended the timelines for review of resolution under the Prudential Framework on Resolution of Stressed Assets. The period from March 1, 2020 to August 31, 2020 shall be excluded from the calculation of the 30-day timeline for the Review Period. In respect of all such accounts, the residual Review Period shall resume from September 1, 2020, upon expiry of which the lenders shall have the usual 180 days for resolution.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI245FF065926FEA2467983EBF58B85010F87.PDF
Large Exposures Framework – Increase in Exposure to a Group of Connected Counterparties
RBI has notified that on account of the COVID-19 pandemic and with a view to facilitate greater flow of resources to corporate, it has been decided, as a one-time measure, to increase a bank’s exposure to a group of connected counterparties from 25% to 30% of the eligible capital base of the bank.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/243LEFE24BAEED650447AC85E57E31CD36CDD9.PDF
Pre-Shipment and Post-Shipment Export Credit – Extension of Period of Advance
RBI has granted relaxation with respect to pre-shipment and post-shipment export credit sanctioned by banks. RBI has already permitted the period of realization and repatriation of the export proceeds to India to be increased from nine months to 15 months from the date of export in respect of exports made upto July 31, 2020.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/246EXPORT4C60D723CC974022B54274691E9B288B.PDF
Wednesday, May 27, 2020
Cessation of 7.75% Savings (Taxable) Bonds, 2018
RBI has announced the cessation of subscription of the 7.75 percent Savings (Taxable) Bonds with effect from the close of business on 28th May, 2020 and only the applications where funds have been realized by the branches may be processed and shall be reported to CAS Nagpur within permissible time limit of T+3 days.
he link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI2476FF204355A9043BFBFABDA7FB0E1983C.PDF
Friday, May 29, 2020
Recovery of Penal Interest on Delayed Remittance of Government Receipts into Government Account
RBI advised that the agency banks may take note that as advised by the O/o C&AG, penal interest calculation for delayed reporting of State Government transactions will be made as per the instructions without any further filters of Rs. 500/- or below.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT248586117EA98EE482B9945F1E5ECD11CB4.PDF
Sunday, June 21, 2020
Assignment of risk weights on credit facilities under the Emergency Credit Line Guarantee Scheme
RBI has notified that Government of India (GOI) has announced to extend guaranteed emergency credit line to MSME borrowers and decided that the member lending institutions shall assign zero percent risk weight on the credit facilities extended under this scheme as such facilities are backed by an unconditional and irrevocable guarantee provided by Government of India.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/255CIRCULAR8C52DA27831C47808336D06D4DE3AB30.PDF
Monday, June 22, 2020
Enhancing public awareness campaigns on increasing instances of payment frauds
RBI advised to all authorized payment systems operators and participants to undertake targeted multi-lingual campaigns by way of SMSs, advertisements in print and visual media, etc. for educating their users on safe and secure use of digital payments.
The link for aforesaid Notification is mentioned as below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/256CIRCULARE6521761166042728106B78DFA3D78A1.PDF
Wednesday, June 24, 2020
Guidelines to adhere fair practices code and outsourcing by Banks and NBFCs
RBI issued guidelines to adhere fair practices code and outsourcing by the Banks and NBFCs while lending Loans over digital lending platforms. Irrespective of whether Bank and NBFCs lend through their own digital lending platform or through an outsourced lending platform, they must adhere to the Fair Practices Code guidelines in letter and spirit.
The Link of the aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/CCN112LNBCF387F4EE693D74EA6A70E6 938C7CDCE47.PDF
Wednesday, July 01, 2020
Special Liquidity Scheme for NBFCs/HFCs
RBI has stated that Government of India has notified a scheme to improve the liquidity position of Non-Banking Financial Companies (NBFCs) / Housing Finance Companies (HFCs) through a Special Purpose Vehicle (SPV) to avoid any potential systemic risks to the financial sector.
The Link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT013D1A96E8D0D94579A656351B41E6FB5B.PDF
Thursday, July 02, 2020
Credit Flow to Micro, Small and Medium Enterprises Sector
RBI has notified new criteria for classifying the enterprises as Micro, Small and Medium enterprises. The new criteria are effective from July 1, 2020. This was done to boost MSME positions and easy of registration.
The Link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/MSME906FF936758A47D0B0B41F7C7332B3CF.PDF
Monday, July 06, 2020
Extension of Timeline for Finalization of Audited Accounts for NBFCs
RBI has extended the timeline for finalization of audited accounts of all the NBFCs. Every applicable NBFC shall finalize its balance sheet within a period of 3 months from the date to which it pertains or any date as notified by SEBI for submission of financial results by listed entities.
The Link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/ETFAA2C0CE1CD9F15481FA5DFF33E041A0D77.PDF
Friday, July 10, 2020
Exemption from Registration as NBFC – Alternative Investment Fund (AIF)
Now, Alternative Investment Fund Companies holding certificate of registration with Securities and Exchange Board of India Act, 1992 (SEBI Act) and not holding or accepting public deposit are exempted from the provisions of section 45-IA and 45-IC of the RBI Act, 1934 and also from the applicability of guidelines issued by the Bank for NBFCs.
The Link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/CCN115EAIF27F4552FF5CF435ABB631DF60E7788BE.PDF
Friday, July 24, 2020
Implementation of Indian Accounting Standards
RBI has decided that the unrealized gain/loss on a derivative transaction undertaken for hedging may be offset against the unrealized loss/gain recognized in the capital (either through Profit or Loss or through Other Comprehensive Income) on the corresponding underlying hedged instrument. If after such offset and netting with unrealized gains/losses on other financial instruments, there are still net unrealized gains, the same should be excluded from regulatory capital.
The Link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/INDASBF34D2B6BC6D49DFB2F428174034CC9C.PDF
Thursday, August 06, 2020
Resolution Framework for Covid-19-Related Stress
RBI has issued Conditions for the Resolution Framework for COVID-19-related Stress for implementing the resolution plan which involves granting of any concession on account of financial difficulty of the borrower entails an asset classification downgrade.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT168F87DBE0F71643B3B17BC8278108C16B.PDF
Micro, Small and Medium Enterprises (MSME) sector – Restructuring of Advances
RBI has informed to all Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks), all Primary (Urban) Co-operative Banks/State Co-operative Banks / District Central Co-operative Banks, All-India Financial Institutions and all Non-Banking Financial Companies, that it has issued a circular on Micro, Small and Medium Enterprises (MSME) sector for restructuring of advances. RBI has planned to extend the scheme in the wake of the COVID-19 stress. Accordingly, existing loans to MSMEs classified as ‘standard’ may be restructured without a downgrade in the asset classification, subject to the following conditions.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT17996B01058D314E1FA0CD74067DE933AD.PDF
Opening of Current Accounts by Banks – Need for Discipline
RBI has reviewed and revised the instructions on opening of current accounts by banks. Banks shall monitor all current accounts and CC/ODs regularly, at least on a quarterly basis and they should not route drawal from term loans through current accounts. Banks shall ensure compliance with all the instructions. The details of instructions are mentioned on the below mentioned link.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT20097D966B84C34C0CA1B6D2E0A62B5BFD.PDF
Online Dispute Resolution (ODR) System for Digital Payments
RBI issued a circular to announce an online dispute resolution (ODR) system for digital payments. The authorities aim to have a vision for increase in the usage of online payments for 2020-21. Thus, there is a need to establish a grievance redressal
mechanism for addressing any disputes arising in the process.
The Payment System Operators (PSO’s) shall have grievance redressal mechanism by January 01, 2021 and provide the access of such systems to its participating member It is applicable to all authorised PSOs – banks and non-banks – and their participating members [Payment System Participants (PSPs)]. The ODR system should be a transparent, rule-based, system-driven, user-friendly and unbiased mechanism for resolving customer disputes and grievances, with zero or minimal manual intervention.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/21ODR602F0A579EB246AA885776A76122DB0C.PDF
Offline Retail Payments Using Cards / Wallets / Mobile Devices – Pilot
RBI has launched a pilot scheme to be conducted for a limited period with an aim to provide an offline retail payment using cards, wallets, mobile devices. The pilot scheme will offer offline digital payment options to banks and nonbanks but with certain terms and conditions. The Scheme shall be applicable till March 31, 2021.
Due to the internet connectivity issues in certain areas, the digital payment system is not being implemented appropriately. The RBI feels that launching the pilot scheme for the offline payment will help the people adopt digital payments as well, which has been done for a limited period.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI22E337913692C04560A953EEC75CCF099C.PDF
Wednesday, August 12, 2020
System-Based Asset Classification – UCBs
RBI issued a master circular no. DCBR.BPD. (PCB) MC No. 12/09.14.000/2015-26 dated July 01, 2015 giving out consolidated instructions on the asset classification and other such related matters. Further, to improve efficiency, transparency and integrity of the asset classification process, RBI has issued relevant instructions to be followed by Urban Cooperative Banks (UCB’s).
The link for aforesaid Circular is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/SACUCBSBA2671E100174A21BFEAB4D1CC10E4AD.PDF
Thursday, August 13, 2020
Review of Guidelines for Core Investment Companies
RBI has issued guidelines for Core Investment Companies (CIC). After the comments and suggestions received from the stakeholders, RBI has decided to revise these guidelines.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/CCN117RCIC00691E0EE2F14E65847C760EE4FDCAC4.PDF
Friday, August 21, 2020
New Definition of Micro, Small and Medium Enterprises – Clarifications
RBI has clarified the new criteria for classifying the enterprises as micro, small and medium enterprises. All enterprises are required to register online and obtain ‘Udyam Registration Certificate’. The Udayam registration captures the depreciated value of Plant and Machinery or Equipment as on 31st March each year.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI262654FEA1F3864D858960F92C2E329696.PDF
Wednesday, August 26, 2020
Submission of Returns Under Section 31 of the Banking Regulation Act, 1949 (AACS) – Extension of Time
RBI informed the Chief Executive Officer, All Primary (Urban) Co-operative Banks that the time for submission of the returns under Section 31 of the Banking Regulation Act, 1949 for the financial year ended on March 31, 2020 is extended upto September 30, 2020.
The link for aforesaid Circular is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/28EXTENSION41BEBB73A2394C3ABFDE7357D0E814EE.PDF
Thursday, September 03, 2020
Cessation of “Aditya Birla Idea Payments Bank Limited” as a banking company within the meaning of sub section (2) of Section 36 A of Banking Regulation Act, 1949
RBI advised that the “Aditya Birla Idea Payments Bank Limited” has ceased to be
a banking company within the meaning of the Banking Regulation Act, 1949 with
effect from July 28, 2020.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT32C0FA879FB2074C5C90E4003D5D74BE58.PDF
Cessation of “Westpac Banking Corporation” as a banking company within the meaning of sub section (2) of Section 36 A of Banking Regulation Act, 1949
RBI advised that the “Westpac Banking Corporation” has ceased to be a banking
company within the meaning of the Banking Regulation Act, 1949
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT3171CB03BFFEBE4AE7A1D1DD4D388EEBC3.PDF
Friday, September 04, 2020
Master Directions – Priority Sector Lending (PSL) – Targets and Classification
RBI revised the guidelines to aim to encourage and support environment friendly lending policies to help achieve Sustainable Development Goals (SDGs). This review also took into account the recommendations made by the ‘Expert Committee on Micro, Small and Medium Enterprises and the ‘Internal Working Group to Review Agriculture Credit’ apart from discussions with all stakeholders.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/MDPSL803EE903174E4C85AFA14C335A5B0909.PDF
Saturday, September 05, 2020
Long Form Audit Report (LFAR) – Review
RBI issued the revised Long Form Audit Report formats are required to be put into operation for the period covering FY 2020-21 and onwards. The mandate and scope of the audit will be as per this format and if the Statutory Central Auditors feels the need of any material additions, etc., this may be done by giving specific justification by the SCA and with the prior intimation of the bank’s Audit Committee of Board.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT33960A003F30AF4DB0927E15FA9E05B3AD.PDF
Monday, September 07, 2020
Resolution Framework for COVID-19-related Stress – Financial Parameters
All lending institutions shall mandatorily consider the key ratios while finalizing the resolution plans in respect of eligible borrowers which have been broadly accepted by the Reserve Bank on the recommendations submitted by the Expert Committee on the required financial parameters with sector specific benchmark ranges for such parameters to be factored in the resolution plans in respect of borrowers eligible under Part B of the Annex to the Resolution Framework.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/34COVID19122F09F4AE2A4C96B5A89E8250A5FF7F.PDF
Friday, September 11, 2020
Compliance functions in Banks and Role of Chief Compliance Officer (CCO)
RBI has notified certain guidelines to bring uniformity in approach followed by banks, as also to align the supervisory expectations on Chief Compliance Officers with best practices. This is due to the reason that RBI has observed that the banks follow diverse practices with regards to appointment of Chief Compliance Officer
(CCO) in Bank.
The link for aforesaid Notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT35DA3ECE4BC2924AA1B7BFE01B3FB5B654.PDF
Monday, September 14, 2020
Automation of Income Recognition, Asset Classification and Provisioning processes in banks
RBI has notified that, in order to ensure the completeness and integrity of the automated Asset Classification (classification of advances/investments as NPA/NPI and their upgradation), Provisioning calculation and Income Recognition processes, Banks are advised to put in place / upgrade their systems to conform to the following guidelines latest by June 30, 2021.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT372E157BAAD1114EFCA3055B5EC99ECB18.PDF
Thursday, September 17, 2020
Exim Bank’s Government of India supported Line of Credit (LoC) to the Government of the Republic of Malawi
Exim Bank has entered into an Agreement with the Government of the Republic of Malawi, for making available to the latter, Government of India supported Line of
Credit (LoC) of USD 215.68 million for the purpose of financing drinking water supply schemes and other development projects in the Republic of Malawi.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT38469ACA4E165D42F595A33EAC29C4B34F.PDF
Friday, September 18, 2020
Master Circular – Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
RBI has notified that Master Circular which was issued by RBI on Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), has been suitably updated by incorporating the modifications in DAY-NRLM scheme and the updated scheme is placed on website www.rbi.org.in
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/MCNRLMA3BF3A32867E411497D82B568967FF6C.PDF
Friday, September 25, 2020
Assignment of Lead Bank Responsibility in new districts formed in the State of Arunachal Pradesh
RBI notified that it has been decided to assign the Lead Bank responsibility of the new Districts in the State of Arunachal Pradesh.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT40B390C90B278C4259A49DD07325EE7B62.PDF
Implementation of Positive Pay System for Cheque Truncation System
RBI had announced introduction of Positive Pay System for Cheque Truncation System (CTS). The concept of Positive Pay, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT4198C41B6710AE4BBCB5AD754E42DA759F.PDF
Tuesday, September 29, 2020
Basel III Capital Regulations- Review of transitional arrangements
RBI has notified that due to continuing stress on account of COVID -19 Pandemic, it has been decided to defer the implementation of the last tranche of 0.625 per cent of the Capital Conservation Buffer (CCB) from September 30, 2020 to April 1, 2021.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/CIRCULARCCB6DB27B9062D14007BD700245BE816F26.PDF
Basel III Framework on Liquidity Standards – Net Stable Funding Ratio (NSFR)
RBI has notified that due to uncertainty on account of COVID-19 Pandemic it has been decided to defer the implementation of Net Stable Funding Ratio -NSFR Guidelines by a further period of six months. These guidelines shall now come into effect from April 1, 2021.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NSFR2E5AB527C64D4E05BFE00F995D5A8519.PDF
Wednesday, October 07, 2020
Interest Subvention Scheme for MSMEs – Co-operative banks
Interest Subvention Scheme for MSMEs has been released by the Ministry of MSMEs. Government of India has since decided to include Co-operative Banks also as Eligible Lending Institutions effective from March 3, 2020. The scheme provides for an interest relief of two per cent per annum to eligible MSMEs on their outstanding fresh/incremental term loan/working capital during the period of its validity.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/ISS5D09963F430140329CD88683ACC7707F.PDF
Wednesday, October 07, 2020
Interest Subvention Scheme for MSMEs – Co-operative banks
Interest Subvention Scheme for MSMEs has been released by the Ministry of MSMEs. Government of India has since decided to include Co-operative Banks also as Eligible Lending Institutions effective from March 3, 2020. The scheme provides for an interest relief of two per cent per annum to eligible MSMEs on their outstanding fresh/incremental term loan/working capital during the period of its validity.
The link for aforesaid Notification and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/ISS5D09963F430140329CD88683ACC7707F.PDF
Thursday, October 08, 2020
Exim Bank’s Government of India supported Line of Credit (LoC) to the Government of the Republic of Zimbabwe
RBI has notified that on February 24, 2020 Export-Import Bank of India (Exim Bank) has entered into an agreement with the Government of the Republic of Zimbabwe, for making available to the latter, Government of India supported Line of Credit (LoC) of USD 310 million for the purpose of financing repowering of Hwange Thermal Power Station in the Republic of Zimbabwe. Out of the total credit by Exim Bank under the agreement, goods, works and services of the value of at least 75% of the contract price shall be supplied by the seller from India, and the remaining 25% of goods and services may be procured by the seller for the purpose of the eligible contract from outside India
The link for aforesaid Circular and Annex is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/EBGS08102020A63D27086AFD44D689F5002B28BEFE9C.PDF
Friday, October 09, 2020
Review of Export Data Processing and Monitoring System (EDPMS) Module for ‘Caution/De-caution Listing of Exporters’
RBI notified that, it has been decided to withdraw the existing para 3 (1) (i) and 3 (1) (ii) of the APDIR Circular No. 74 dated May 26, 2016 on the Module for ‘Caution/ De-caution Listing of Exporters’ in the EDPMS, with a view to make system more exporter friendly and equitable.
The link for aforesaid Circular is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIR034420C8AC687F453B9E1A0C851F9D95E9.PDF
Sovereign Gold Bond Scheme (SGB) 2020-21- Series VII, VIII, IX, X, XI, XII
RBI notified that GoI has vide its Notification No F.No4.(4)-B (W&M)/2020 dated October 9, 2020 has announced the Sovereign Gold Bond Scheme 2020-21, Series VII, VIII, IX, X. XI and XII. Under the scheme there will be a distinct series (starting from Series VII) for every tranche.
The Link for details of Date of Issue of SGB, Period of Subscription, Procedure for application of SGB and link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI52DF056138FF5E461F8A6E2EC19CCAED91.PDF
Monday, October 12, 2020
Regulatory Retail Portfolio – Revised Limit for Risk Weight
RBI notified that the threshold limit of Rs. 5 crore for aggregated retail exposure to counterparty shall stand increased to Rs. 7.5 crore from the date of this circular. The risk weight of 75% will apply to all fresh exposures and also to existing exposures where incremental exposure may be taken by the banks upto the revised limit of Rs. 7.5 crore.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI534D0C8BAE2D3A44EB9672375CE4605C56.PDF
SLR holdings in HTM category
RBI extended the dispensation of holding SLR securities acquired on or after September 1, 2020 up to March 31, 2021 under HTM category up to an overall limit of 22% of NDTL, which was allowed by RBI vide circular dated September 1, 2020, for SLR securities acquired between September 1, 2020 and March 31, 2021, up to March 31, 2022.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI542E7CB9D6246F42A9B13E6B886366A6D4.PDF
Tuesday, October 13, 2020
Extension of time for Submission of returns under Section 31 (read with section 56) of the Banking Regulation Act, 1949
In view of the difficulties faced by all Primary (Urban) Co-operative Banks (UCBs) in finalizing the financial statements amidst the COVID-19 pandemic, GoI, on the recommendation of the Reserve Bank, declared that the provisions of Section 31 read with clause (t) of Section 56 of the Act shall not apply to Primary Co-operative Banks till December 31, 2020. Accordingly, all UCBs shall ensure submission of the aforesaid returns to the Reserve Bank on or before December 31, 2020.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI55D6B79031B7D44FBA8B3F5D3BAD5839C4.PDF
Friday, October 16, 2020
Rationalization of Risk Weights for Individual Housing Loans
RBI decided to rationalise the risk weights, irrespective of the amount. The risk weights for all new housing loans to be sanctioned on or after the date of this circular i.e. after October 16, 2020 and upto March 31, 2022 are as under:
| LTV Ratio (%) | Risk Weight (%) |
| ≤ 80 | 35 |
| > 80 and ≤ 90 | 50 |
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT56BEDDD975CA624938A941CCF63BE51C70.PDF
Tuesday, October 16, 2020
Inclusion in/exclusion from the Second Schedule to the Reserve Bank of India Act, 1934 – Regional Rural Banks (RRBs)
RBI announced that for inclusion of names of ten amalgamated Regional Rural Banks and exclusion of names of 21 erstwhile Regional Rural Banks (RRBs) to/from the Second Schedule to the Reserve Bank of India Act, 1934, respectively, has been published in the Extraordinary Gazette of India (Part III – Section 4) dated October 19, 2020.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT5752C31103C215445B98AEBE787B71C5B6.PDF
Thursday, October 22, 2020
Framework for Recognition of a Self-Regulatory Organization for Payment System Operators
RBI issued framework for recognition of a self-regulatory organization for payment system operators wherein provisions related to characteristics, eligibility for recognition, requirements, grant, function and responsibilities have been discussed in details.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT583EB873C7EE0B4AEF8ACE7893E7588CDE.PDF
Digital Payment Transactions – Streamlining QR Code infrastructure
RBI notified about Digital Payment Transactions to streamline QR Code infrastructure on the recommendations and suggestion of the Committee constituted to review the current system of QR Codes under the Payment and Settlement Systems Act, 2007.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT597FAB5678F14F46359E7B535EBDE0E412.PDF
Review of regulatory framework for Housing Finance Companies (HFCs)
RBI notified about Review of regulatory framework for Housing Finance Companies (HFCs) in reference to its earlier Press Release No. 2019/419 dated August 13, 2019 and Press Release No. 2019-2020/2510 dated June 17, 2020 under the National Housing Bank Act, 1987 and Reserve Bank of India Act, 1934.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT605BE165AA9E8043EFA087339829CCF469.PDF
Monday, October 26, 2020
Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020)
RBI stated that, the Government of India has announced the Scheme which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions.
The link for aforesaid notification is mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI612B155289A6084BF180E687C96DCB6DC1.PDF
Monday, November 02, 2020
Opening of Current Accounts by Banks – Need for Discipline
RBI notified on opening of Current Accounts by Banks-Need for Discipline, in reference to its earlier Circular dated August 06, 2020. Banks shall ensure compliance with the instructions given in the Circular within a period of 3 months from the date of issue of the circular i.e. by November 05, 2020.
The link for aforesaid Notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT62F0712EF9A7044379B8BC0D8E827BE67F.PDF
Thursday, November 05, 2020
Co-Lending by Banks and NBFCs to priority sector
RBI notified about Co-Lending by Banks and NBFCs to Priority Sector rechristened as “Co-Lending Model” (CLM),to improve the flow of credit to the unserved and underserved sector of the economy and make available funds to the ultimate beneficiary at an affordable cost, considering the lower cost of funds from banks and greater reach of the NBFCs.
The link for the above notification and annex is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT6300DF94088B674E7FB6FC7EEC214B0200.PDF
Friday, November 13, 2020
Discontinuation of Returns/Reports under Foreign Exchange Management Act, 1999
RBI notified on Discontinuation of Returns/Reports under Foreign Exchange Management Act, 1999 (FEMA) by AD Bank, Custodian and AMC. This is done a view to improve the ease of doing business and reduce the cost of compliance and the 17 Returns/ Reports are discontinued to be reported by Reporting Entities like AD Bank, Custodian and Asset Management Company.
The link for the aforesaid circular and Annexure is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIR05CE737874637145C7ACB6287F1848E5E9.PDF
Tuesday, November 17, 2020
Foreign Exchange Management Act, 1999 (FEMA)- Compounding of Contraventions under FEMA, 1999
RBI notified that the compounding powers stand delegated to the Regional Offices/ Sub Offices of the Reserve Bank to compound the certain contraventions (as given in the circular) under FEM (Non –Debt Instruments) Rules, 2019 and FEM (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019.
The link for the aforesaid Circular is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIRS62545AA7432734B31BD5B59601E49AA6C.PDF
Maintenance of Escrow Account with a Scheduled Commercial Bank
RBI stated that, with a view to diversify risk and address business continuity concerns, it has been decided to allow one additional escrow account in a different scheduled commercial bank. The relevant instructions are being modified as per Annex 1 and 2 to this circular (link given below).
The link for the aforesaid Circular is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT68A141A71A5CC24F4FBFB9DF8C9986B079.PDF
Monday, November 23, 2020
Establishment of Branch Office (BO) / Liaison Office (LO) / Project Office (PO) or any other place of business in India by foreign law firms
RBI, in exercise of its powers under the FEMA Provisions, has directed the AD-I Banks to not grant approvals to any branch office, liaison office, project office, or any other place of business under the Foreign Exchange Management Act, 1999, to practice legal profession in India.
The link for the aforesaid Circular is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIR0798DFFED77933459F8FEDF0E4754D20B2.PDF
Friday, December 04, 2020
24×7 availability of the Real Time Gross Settlement (RTGS) system
The Following guidelines have been issued to the members:
- RTGS shall be available for customer and inter-bank transactions round the clock, except for the interval between ‘end-of-day’ and ‘start-of-day’ processes, whose timings would be duly broadcasted through the RTGS system.
- RTGS shall continue to be governed by the RTGS System Regulations, 2013, as amended from time to time.
Intra-Day Liquidity (IDL) facility shall be made available to facilitate smooth operations. The Intra-Day Liquidity (IDL) availed, if any, shall be reversed before the ‘end-of-day’ process begins.
The link for aforesaid circular is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/RTGS24X71798171F014C4AF18C755BAA2AECE838.PDF
Authorisation of entities for operating a Payment System under PSS Act
Introduction of Cooling Period in the following situations:
- Authorised Payment System Operators (PSOs) whose Certificate of Authorisation (CoA) is revoked or not-renewed for any reason; or
- CoA is voluntarily surrendered for any reason; or
- Application for authorisation of a payment system has been rejected by RBI.
- New entities that are set-up by promoters involved in any of the above categories; definition of promoters for the purpose, shall be as defined in the Companies Act, 2013.
The Cooling Period shall be for one year from the date of revocation / non-renewal / acceptance of voluntary surrender / rejection of application, as the case may be.
The link for aforesaid notification is as mentioned below:
Card transactions in Contactless mode – Relaxation in requirement of Additional Factor of Authentication
RBI specified that COVID-19 pandemic has underlined the benefits of contactless transactions. Keeping this in view and based on stakeholder feedback, it was announced in the Statement on Developmental and Regulatory Policies dated December 4, 2020 that per transaction limit for Additional Factor of Authentication (AFA) was increased to Rs. 5,000 (earlier it was Rs. 2,000 per transaction). All other requirements, including the discretion of cardholder to use contactless or contact mode of transaction, shall continue to remain applicable, as hitherto.
The link for aforesaid notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/DPSSE57ACE9964684AC0A788A3587FB2C08A.PDF
Declaration of dividends by banks
RBI has issued a notification declaring dividends by banks. Considering the ongoing stress and heightened uncertainty on account of COVID-19, it is imperative that banks continue to conserve capital to support the economy and absorb losses. In order to further strengthen the banks’ balance sheets, while at the same time support lending to the real economy, it has been decided that banks shall not make any dividend payment on equity shares from the profits pertaining to the F.Y. ended March 31, 2020.
The link for aforesaid notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/FCDDB04122020B1DB6FFC64A34EC39CFA0AFC041F6C61.PDF
External Trade – Facilitation – Export of Goods and Services
It has been decided to delegate more powers to the Authorised Dealer Category – I banks (AD banks) in the following areas:
- Direct Dispatch of Shipping Documents
- “Write-off” of unrealized Export bills
- Set-off of Export receivables against Import payables
- Refund of Export Proceeds
The link for aforesaid Circular is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/APDIR08DCB570D45FF14E369652F751858C99F8.PDF
Introduction of Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) for Regional Rural Banks (RRBs)
In order to provide an additional avenue for liquidity management to Regional Rural Banks (RRBs), it has been decided that Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) will be extended to Scheduled RRBs meeting the following criteria:
- Implemented Core Banking Solution (CBS)
- There is a minimum CRAR of nine per cent and
Fully compliant with the terms and conditions for availing LAF and MSF issued by Financial Markets Operations Department (FMOD), Reserve Bank of India.
The link for aforesaid notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/LAFMSFRRBSFCB697090CF848E599D3BDE570170E62.PDF
Perpetual Validity for Certificate of Authorisation (CoA) issued to Payment System Operators (PSOs) under Payment and Settlement Systems Act, 2007 (PSS Act)
To reduce licensing uncertainties and enable PSOs to focus on their business as also to optimise utilisation of regulatory resources, it has been decided to, hereafter, grant authorisation for all PSOs (both new and existing) on a perpetual basis, subject to the usual conditions. For existing authorised PSOs, grant of perpetual validity shall be examined as and when the CoA becomes due for renewal subject to certain conditions.
The link for aforesaid notification is as mentioned below:
Processing of e-mandates for recurring transactions
RBI has issued the Processing of e-mandates for recurring transactions. RBI has planned to increase the Additional Factor of Authentication limit to Rs. 5,000 from January 01, 2021 per transaction. Processing of recurring transactions (domestic or cross-border) using cards / PPIs / UPI under arrangements / practices not compliant with the aforesaid instructions shall not be continued beyond March 31, 2021.
The link for aforesaid notification is as mentioned below:
Regional Rural Banks – Access to Call/Notice/Term Money Market
RBI issued Draft Call, Notice and Term Money Markets (Reserve Bank) Directions, 2020 to give the directions to all entities/agencies eligible to deal in call, notice and term money markets as detailed in the link below
The link for aforesaid notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT7860075FB425D74B1EB180BC896B28503B.PDF
Monday, December 14, 2020
Opening of Current Accounts by Banks – Need for Discipline
RBI issued a Notification on the need of discipline on Opening of Current Accounts by Banks. It has been decided to permit banks to open specific accounts which are stipulated under various statutes and instructions of other regulators/ regulatory departments, without any restrictions.
The link for aforesaid notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NT79BEFBE49F47254D13BB6B11B5F57EB312.PDF
Friday, December 18, 2020
Amendment to Master Direction (MD) on KYC – Centralized KYC Registry – Roll out of Legal Entity Template & other changes
REs shall upload the KYC data pertaining to accounts of LEs opened on or after April 1, 2021, on to CKYCR in terms of Prevention of Money Laundering (Maintenance of Records) Rules, 2005. REs shall ensure that during periodic updation, the customers’ KYC details are migrated to current Customer Due Diligence (CDD) standards.Once KYC Identifier is generated by CKYCR, the REs shall ensure that the same is communicated to the individual/legal entity.
The link for aforesaid notification is as mentioned below:
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/CKYCRLEB3990A3432AC4BAB95D7A77854CE011F.PDF