Reserve Bank of India Facts and Legal Documents

  • Asset Reconstruction Companies registered with RBI are advised to adopt ‘Fair Practices Code’ - In exercise of the powers conferred by Section 9 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, Asset Reconstruction Companies registered with the Bank are advised to adopt ‘Fair Practices Code’ so as to ensure transparency and fairness in their operation.
  • Automation of Income Recognition, Asset Classification and Provisioning processes in banks-RBI - Banks shall keep the business logic and other parameters/configurations of the System updated to ensure that the System based identification, classification, provisioning and income recognition are strictly in compliance with the regulatory guidelines on an ongoing basis. There should be periodic system audit, at least once in a year, by Internal / External Auditors who are well versed with the system audit both on system parameters as also from the perspective of compliance to Income Recognition, Asset Classification and Provisioning guidelines.
  • Business and work of The Reserve Bank of India - Reserve Bank is there to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth.
  • Compounding powers delegated to RBI Regional Office under FEMA Act 1999 - Compounding powers delegated to RBI Regional Office under FEMA Act 1999 and under  RBI Master direction of Compounding of Contraventions under FEMA, 1999 RBI/2020-21/67 A.P. (DIR Series) Circular No. 06 November 17, […]
  • Core Investment Companies (Reserve Bank) Master Direction 2016 - In exercise of the powers conferred by sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934 (2 of 1934), and of all the powers enabling it in this behalf, the Reserve Bank of India (hereinafter also referred to as the Bank) being satisfied that it is necessary and expedient in the public interest and being satisfied that for the purpose of enabling the Bank to regulate the credit system to the advantage of the country to do so
  • Failed transactions shall not be charged: Non-cash ATM inquiries shall be free- RBI 14/08/2019 - The number of free ATM transactions has been reduced to three for other banks and five for home/own Bank.  
  • Safe Haven Assets GOI announced Sovereign Gold Bond Scheme 2020-21, Series I, II, III, IV, V, VI - The Sovereign Gold Bond Scheme 2020-21-Series III will be opened for subscription for the period from June 08, 2020 to June 12, 2020. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three business days of the week preceding the subscription period, i.e. June 03 – June 05, 2020 works out to ₹4,677/- (Rupees Four Thousand Six Hundred and Seventy Seven only) per gram of gold.
  • Government of India issued RBI directions u/s 7 of the RBI Act for the first time - The Reserve bank of India is neither autonomous nor independent and directors are simple government servant by their appointment.
  • Governor’s Statement on the monetary policy framework-9/10/2020 - Governor’s Statement – October 9, 2020 The newly appointed Monetary Policy Committee (MPC) with Dr. Ashima Goyal, Professor Jayanth R. Varma and Dr. Shashanka Bhide as external members met on 7th, 8th […]
  • Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector - Licensing of Small Finance Banks in the Private Sector Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector I. Introduction The Reserve Bank had issued the Guidelines for Licensing […]
  • India Banks have been granted permission to declare dividends by RBI-04/05/2005 - These guidelines permitted banks to declare dividends subject to a ceiling of 33.33% on the dividend payout ratio, without obtaining the prior approval of RBI, subject to the fulfilment of the laid down criteria.
  • India’s External Debt as at the end of March 2020 - At end-March 2020, India’s external debt was placed at US$ 558.5 billion, recording an increase of US$ 15.4 billion over its level at end-March 2019.
  • International Investment Position of India-RBI December 2019 - Increase in reserve assets (US $ 26.2 billion) was the dominant contributor to higher increase in Indian residents’ overseas financial assets, followed by overseas direct investments (US $ 3.3 billion).
  • Law of Reserve Banking - Creation of the  Reserve Bank of India and Reserve Banking A bank to be called the Reserve Bank of India shall be constituted for the purposes of taking over the management of […]
  • List of Master Directions issued by Reserve Bank of India - The existing set of Master Circulars issued by RBI on various subjects will stand withdrawn with the issue of the Master Direction on the subject. The Master Directions consolidate instructions on rules and regulations framed by the Reserve Bank under various Acts including banking issues and foreign exchange transactions.
  • Master Direction – Exemptions from the provisions of RBI Act 1934 - The Reserve Bank of India (the Bank), being satisfied that, in the public interest, and to enable the Bank to regulate the financial system of the country to its advantage, in exercise of the powers conferred by section 45NC of the Reserve Bank of India Act, 1934 (Act 2 of 1934) and of all the powers enabling it in this behalf exempts the categories of non-banking financial companies as given below from certain provisions of the Reserve Bank of India Act, 1934 (the RBI Act, 1934) as specified hereunder
  • Master Direction – Non-Banking Financial Companies Acceptance of Public Deposits RBI Directions 2016 - The Reserve Bank of India (the Bank), having considered it necessary in the public interest and being satisfied that for the purpose of enabling the Bank to regulate the credit system to the advantage of the country, it is necessary to give the directions set out below, hereby, in exercise of the powers conferred by sections 45J, 45JA, 45K, 45L and 45MA of the Reserve Bank of India Act, 1934 (Act 2 of 1934) (the RBI Act) and of all the powers enabling it in this behalf, and in supersession of the earlier directions contained in Notification No.DFC.118/DG (SPT)-98 dated January 31, 1998 issues the following Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016 (the Directions) applicable to every non-banking financial company hereinafter specified.
  • Monetary Policy: Reserve Bank of India - Monetary policy refers to the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the Act. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.
  • National Electronic Funds Transfer and Real Time Gross Settlement systems – Waiver of charges by RBI - RBI/2018-2019/208 DPSS (CO) RPPD No.2557/04.03.01/2018-19 June 11, 2019 The Chairman / Managing Director / Chief Executive Officer of member banks participating in RTGS and / or NEFT Madam / Sir National Electronic […]
  • Non-Banking Financial Companies are required to comply with Indian Accounting Standards for preparation of financial statements: RBI - RBI: Non-Banking Financial Companies (NBFCs) covered by Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 are required to comply with Indian Accounting Standards (Ind AS) for the preparation of their financial statements.
  • Portfolios of Deputy Governors of RBI - Date : Oct 12, 2020 Portfolios of Deputy Governors Consequent upon the appointment of Shri M. Rajeshwar Rao as Deputy Governor, following will be the portfolios of the Deputy Governors with effect from […]
  • RBI announces the Framework on Currency Swap Arrangement for SAARC countries for the period 2019 to 2022 - Under the Framework for 2019-22, RBI will continue to offer swap arrangement within the overall corpus of US $ Two billion. The drawals can be made in US Dollar, Euro or Indian Rupee. The Framework provides certain concessions for swap drawals in Indian Rupee.
  • RBI asked Banks for seeding of Aadhaar numbers with existing or new accounts for Direct Benefit Transfer – 13/08/2019 - RBI directed all Banks for implementation of Direct Benefit Transfer (DBT) Scheme
  • RBI Clarification on Definition of Micro-Small & Medium Enterprises-27/08/2020 - RBI/2020-2021/26 FIDD.MSME & NFS.BC.No.4/06.02.31/2020-21 Date: August 21, 2020 The Chairman/ Managing Director/Chief Executive Officer All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks) All Primary (Urban) Co-operative […]
  • RBI COVID-19 – Regulatory Package-27/03/2020 - In respect of all term loans (including agricultural term loans, retail and crop loans), all commercial banks (including regional rural banks, small finance banks and local area banks), co-operative banks, all-India Financial Institutions, and NBFCs (including housing finance companies) (“lending institutions”) are permitted to grant a moratorium of three months on payment of all instalments1 falling due between March 1, 2020 and May 31, 2020.
  • RBI Master Direction-Compounding of Contraventions under FEMA 1999 - Master Direction- Compounding of Contraventions under FEMA, 1999 (Updated as on April 04, 2019) RBI/FED/2015-16/1 FED Master Direction No.4/2015-16 January 1, 2016 (Updated as on April 04, 2019) (Updated as on September […]
  • RBI merged three categories of NBFCs, asset finance, loan companies and investment companies into one category called NBFC-ICC - The Reserve Bank of India (RBI) has merged three categories of NBFCs — asset finance, loan companies and investment companies — into one new category called NBFC-investment and credit company (NBFC-ICC) to ease operational flexibility of these institutions.
  • RBI Monthly Bulletin-June 2020 - The Bulletin includes RBI Governor’s statement, Monetary Policy Statement, 2020-21, Statement on Developmental and Regulatory Policies, four Articles and Current Statistics. The four articles are: I. Quarterly Estimates of Households’ Financial Assets and Liabilities; II. Issues in Non-Bank Financial Intermediation; III. Market Financing Conditions for NBFCs: Issues and Policy Options; and IV Provisional Accounts of Central Government Finances 2019-20: An Assessment.
  • RBI Priority Sector Lending – Targets and Classification Directions 2020 - Reserve Bank of India has comprehensively reviewed the Priority Sector Lending (PSL) Guidelines to align it with emerging national priorities and bring a sharper focus on inclusive development, after having wide-ranging discussions with all stakeholders.
  • RBI releases draft “Enabling Framework for Regulatory Sandbox” - A regulatory sandbox (RS) usually refers to live testing of new products or services in a controlled/test regulatory environment for which regulators may (or may not) permit certain regulatory relaxations for the limited purpose of the testing. The RS allows the regulator, the innovators, the financial service providers (as potential deployers of the technology) and the customers (as final users) to conduct field tests to collect evidence on the benefits and risks of new financial innovations, while carefully monitoring and containing their risks. It can provide a structured avenue for the regulator to engage with the ecosystem and to develop innovation-enabling or innovation-responsive regulations that facilitate delivery of relevant, low-cost financial products.
  • RBI Statement on Developmental and Regulatory Policies-27/03/2020 - This Statement sets out various developmental and regulatory policies that directly address the stress in financial conditions caused by COVID-19.
  • RBI Statement on Developmental and Regulatory Policies-6/2/2020 - This Statement sets out various developmental and regulatory policy measures for improving credit flows to certain sectors; reinforcing monetary transmission; strengthening regulation and supervision; broadening and deepening financial markets; and improving payment and settlement systems.
  • RBI-Statement on Developmental and Regulatory Policies: 05/12/2019 - RBI Statement sets out various developmental and regulatory policy measures for strengthening regulation and supervision; broadening and deepening of financial markets; and improving payment and settlement systems.
  • Report of the Working Group on FinTech and Digital Banking [RBI] - Financial services, including banking services, are at the cusp of a revolutionary change driven by technological and digital innovations. A rapidly growing number of financial entities and technology firms are experimenting with related technological and financial solutions as well as new products in the financial services field which either modifies the way financial intermediation takes place or leads to disintermediation.
  • Reserve Bank of India (Prevention of Market Abuse) Directions, 2019 - These Directions shall apply to transactions of all participants in markets for financial instruments but shall exclude transactions executed through the recognized stock exchanges under and in accordance with the regulations of the Securities and Exchange Board of India. These Directions shall not apply to the Bank and the Central Government in furtherance of monetary policy, fiscal policy or other public policy objectives.
  • Reserve Bank released data relating to India’s International Investment Position as at end-March 2020. - International financial assets of Indian residents increased by US$ 73.9 billion due to the rise in reserve assets and overseas direct investment by US$ 64.9 billion and US$ 13.0 billion, respectively, though other investments declined marginally during the year
  • Role of Chief Compliance Officer in Banking compliance functioning-RBI Guidelines - As part of robust compliance system, banks are required, inter-alia, to have an effective compliance culture, independent corporate compliance function and a strong compliance risk management programme at bank and group level. Such an independent compliance function is required to be headed by a designated Chief Compliance Officer (CCO) selected through a suitable process with an appropriate ‘fit and proper’ evaluation/selection criteria to manage compliance risk effectively.
  • The Reserve Bank of India decided to transfer an interim dividend of Rs 28,000 crore to the government in the financial year 2018-19 - “Based on a limited audit review and after applying the extant economic capital framework, the board decided to transfer an interim surplus of Rs 28,000 crore to the central government for the […]
  • Why Lakshmi Vilas Bank Ltd was put under moratorium by RBI - The Reserve Bank assures the depositors of the bank that their interest will be fully protected and there is no need to panic. In terms of the provisions of the Banking Regulation Act, the Reserve Bank has drawn up a scheme for the bank’s amalgamation with another banking company. With the approval of the Central Government, the Reserve Bank will endeavour to put the Scheme in place well before the expiry of the moratorium and thereby ensure that the depositors are not put to undue hardship or inconvenience for a period of time longer than what is absolutely necessary.
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