Reserve Bank of India Facts and Legal Documents

Table of Contents

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Kolkata but was permanently moved to Mumbai in 1937. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.
RBI

Legal Framework

I. Acts administered by Reserve Bank of India

Reserve Bank of India Act, 1934
Public Debt Act, 1944/Government Securities Act, 2006
Government Securities Regulations, 2007
Banking Regulation Act, 1949
Foreign Exchange Management Act, 1999
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Chapter II)
Credit Information Companies(Regulation) Act, 2005
Payment and Settlement Systems Act, 2007
Payment and Settlement Systems Regulations, 2008 As Amended up to 2022
The Payment and Settlement Systems (Amendment) Act, 2015 – No. 18 of 2015
Factoring Regulation Act, 2011

II. Other relevant Acts

Negotiable Instruments Act, 1881
Bankers’ Books Evidence Act, 1891
State Bank of India Act, 1955
Companies Act, 1956/ Companies Act, 2013
Securities Contract (Regulation) Act, 1956
State Bank of India Subsidiary Banks) Act, 1959
Deposit Insurance and Credit Guarantee Corporation Act, 1961
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
Regional Rural Banks Act, 1976
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980
National Bank for Agriculture and Rural Development Act, 1981
National Housing Bank Act, 1987
Recovery of Debts Due to Banks and Financial Institutions Act, 1993
Competition Act, 2002
Indian Coinage Act, 2011 : Governs currency and coins
Banking Secrecy Act
The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
The Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993

Banking Regulations-Notice/Circular/Master Direction/Framework

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.
₹2000 Denomination Banknotes – Withdrawal from Circulation (RBI-19/05/2023) - ₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tender RBI/2023-24/32DCM(Plg) No.S-236/10.27.00/2023-24 May 19, 2023 The Chairman / Managing Director/ Chief Executive OfficerAll Banks Dear Sir/Madam, ₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tender 1- ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934 primarily to meet the […]
Borrowing and Lending in foreign currency in India - The Reserve Bank of India, is the custodian of the country’s foreign exchange reserves and is vested with the responsibility of managing their investment. The legal provisions governing management of foreign exchange reserves are laid down in the Reserve Bank of India Act, 1934. The Reserve Bank issues licences to banks and other institutions to act as Authorised Dealers in the foreign exchange market. In keeping with the move towards liberalisation, the Reserve Bank has undertaken substantial elimination of licensing, quantitative restrictions and other regulatory and discretionary controls.
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.
Central Bank Digital Currency – Is This the Future of Money by T Rabi Sankar, Deputy Governor RBI (22/07/2021) - The Reserve Bank derives the necessary statutory powers from various sections of the RBI Act – with respect to denomination (Section 24), form of banknotes (Section 25), status as legal tender (Sec 26(1)) etc. There is a need to examine consequential amendments to other Acts like The Coinage Act, 2011, FEMA, 1999, Information Technology Act, 2000 etc.
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, 2020 To All Category-I Authorised Dealer Banks Madam / Sir Foreign Exchange Management Act, 1999 (FEMA)- Compounding of Contraventions under FEMA, 1999 The attention of Authorized Dealer Category-I […]
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
Digital Payment system in India 2022 - In November 2005, a more secure system was introduced for facilitating one-to-one funds transfer requirements of individuals / corporates. Available across a longer time window, the NEFT system provides for batch settlements at half-hourly intervals, thus enabling near real-time transfer of funds. Certain other unique features viz. accepting cash for originating transactions, initiating transfer requests without any minimum or maximum amount limitations, facilitating one-way transfers to Nepal, receiving confirmation of the date / time of credit to the account of the beneficiaries, etc., are available in the system. From December 2019, it is available 24x7 throughout the year with half-hourly settlements.
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.
FINANCIAL AGREEMENT BETWEEN THE UNITED KINGDOM AND INDIA-14/08/1947 - The Reserve Bank of India and the Bank of England shall consult together at agreed intervals in order to establish by reference to the best statistical data available to them the net capital movement from India to the other countries of the sterling area, or vice versa as the case may be, resulting from the agreed transfers of capital.
Foreign Exchange Management (Possession and retention of foreign currency) Regulations, 2000 - a person resident in India but not permanently resident therein may possess without limit foreign currency in the form of currency notes, bank notes and travellers cheques, if such foreign currency was acquired, held or owned by him when he was resident outside India and, has been brought into India in accordance with the regulations made under the Act.
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 - 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 and 9th October, 2020 in its first meeting and the 25th under the monetary policy framework that was instituted in June 2016. I welcome the new members and thank them for their valuable contributions to the setting and conduct of monetary policy in India. I take this opportunity to thank our teams in the Reserve Bank of India (RBI) for their analytical support and logistic assistance.
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 of “Small Finance Banks” in the Private Sector on November 27, 2014. The process of licensing culminated in granting in-principle approval to ten applicants and they have since […]
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.
Indian Govt took comprehensive measures to curb incidence of frauds in banks - RBI Master Circular on Frauds, 2015, observes that frauds are committed by unscrupulous borrowers by various methods including, inter alia, fraudulent discount of instruments, fraudulent disposal of pledged /hypothecated stocks, fund diversion, criminal neglect and mala fide managerial failure on the part of borrowers.
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).
International Trade Payment and Settlement in Indian Rupees through Vostro Account with immediate effect – RBI guidelines ( 11/07/2022) - In terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, AD banks in India have been permitted to open Rupee Vostro Accounts. Accordingly, for settlement of trade transactions with any country, AD bank in India may open Special Rupee Vostro Accounts of correspondent bank/s of the partner trading country.
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 the currency from the Central Government and of carrying on the business of banking in accordance with the provisions of this Act.The capital of the Bank shall be […]
Legal framework of foreign exchange reserve management in India - The Reserve Bank of India publishes half-yearly reports on management of foreign exchange reserves as part of its efforts towards enhanced transparency and levels of disclosure. These reports are prepared half yearly with reference to the position as at end-March and end-September each year. The present report (37th in the series) is with reference to the position as at end-September 2021.
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.
Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021. - The draft Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2020 were released for public comments on December 04, 2020. Based on the feedback received from the market participants, the draft Directions were reviewed and have since been finalised. The Master Direction – Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021 are enclosed herewith.
Minority (discenting) Opinion in Vivek Narayan Sharma Vs UOI (Demonetisation Case) by Justice Nagarathna (02/01/2023) - Judgment proposed by His Lordship, Gavai, J. does not recognise the essential fact that the Act does not envisage initiation of demonetisation of bank notes by the Central Government. Subsection (2) of Section 26 of the Act, contemplates demonetisation of bank notes at the instance of the Central Board of the Reserve Bank of India (hereinafter referred to as "the Bank").
Monetary Policy Framework of RBI : As Assessed by Bank of International Sattlement - The monetary policy framework aims at setting the policy repo rate at an appropriate level to achieve the monetary policy objectives based on an assessment of the current and evolving macroeconomic situation. Liquidity management is the operating procedure of monetary policy which envisages modulation of liquidity conditions, aimed at anchoring the WACR to the policy repo rate.
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 Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) systems – Waiver of charges Please refer to paragraph No. 8 of the Second Bi-monthly Monetary Policy Statement on Developmental […]
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.
Overview of Payment Systems in India-Notes By RBI - In India, the payment and settlement systems are regulated by the Payment and Settlement Systems Act, 2007 (PSS Act) which was legislated in December 2007. The PSS Act as well as the Payment and Settlement System Regulations, 2008 framed thereunder came into effect from August 12, 2008. In terms of Section 4 of the PSS Act, no person other than the Reserve Bank of India (RBI) can commence or operate a payment system in India unless authorised by RBI. Reserve Bank has since authorised payment system operators of pre-paid payment instruments, card schemes, cross-border in-bound money transfers, Automated Teller Machine (ATM) networks and centralised clearing arrangements.
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 October 12, 2020: Name Departments Shri B.P. Kanungo 1. Co-ordination 2. Department of Currency Management 3. Department of External Investments And Operations 4. Department of Government and Banks […]
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 Cautions against unauthorised Digital Lending Platforms - There have been reports about individuals/small businesses falling prey to growing number of unauthorised digital lending platforms/Mobile Apps on promises of getting loans in quick and hassle-free manner. These reports also refer to excessive rates of interest and additional hidden charges being demanded from borrowers; adoption of unacceptable and high-handed recovery methods; and misuse of agreements to access data on the mobile phones of the borrowers.
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 Banks/State Co-operative Banks / District Central Co-operative Banks All-India Financial Institutions All Non-Banking Financial Companies Dear Sir / Madam, New Definition of Micro, Small and Medium Enterprises – […]
RBI Compliance Function and Role of Chief Compliance Officer – NBFCs – 11/04/2022 - Framework for Compliance Function and Role of Chief Compliance Officer in Non-Banking Financial Companies in Upper Layer and Middle Layer (NBFC-UL & NBFC-ML)
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 draft Circular on Declaration of Dividend by NBFCs-9/12/2020 - Core Investment Company (CIC) should have Adjusted Net Worth (ANW) of at least 30% of its aggregate risk weighted assets on balance sheet and risk adjusted value of off-balance sheet items for last 3 years, including the accounting year for which it proposes to declare dividend.
RBI Framework on Analysis of Balance Sheets (BSA) - the analysis of the financial position of banks as disclosed in the balance sheets is not being done in a systematic manner with a view to evaluating the critical parameters of performance and initiating appropriate corrective measures. Peer group comparison of performance parameters is also not attempted to evaluate the operational efficiency, strengths and weaknesses in performance of competitors. Further, in the absence of uniformity among banks in using various financial and nonfinancial parameters, the results are not always objective. It has, therefore, been decided that a uniform framework should be devised to enable banks to undertake focused scrutiny of the balance sheets to identify/analyse the key measures of returns and risks, assumed by banks and to demonstrate the relationship of returns and risks.
RBI imposed restrictions on Mastercard Asia / Pacific Pte. Ltd from 22/07/ 2021 - The Reserve Bank of India (RBI) has today imposed restrictions on Mastercard Asia / Pacific Pte. Ltd. (Mastercard) from on-boarding new domestic customers (debit, credit or prepaid) onto its card network from July 22, 2021. Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data.
RBI Integrated Ombudsman Scheme-2021 - Reserve Bank of India, being satisfied that it is in public interest to do so, and to provide an avenue for cost free alternate grievance redress to customers of regulated entities covered under the RBIOS 2021 (the Scheme) for grievances against Credit Information Companies, hereby directs that the ‘Credit Information Company’ as defined in the Credit Information Companies (Regulation) Act, 2005, shall also be treated as a ‘Regulated Entity’ for the purpose of the Scheme.
RBI issued Statement on Developmental and Regulatory Policies-4/12/2020 - Statement sets out various developmental and regulatory policy measures to i) enhance liquidity support to targeted sectors of the economy with linkages to other sectors; (ii) deepen financial markets; (iii) conserve capital among banks and NBFCs through regulatory initiatives; (iv) strengthen supervision through the audit function; (v) facilitate external trade by improving ease of doing business for exporters; and (vi) upgrade payment system services so as to expand financial inclusion and improve customer service.
RBI keeps Repo rate at 4%-GDP projected at 9.5% in 2021/22-Rs 15,000 cr liquidity support to hospitality sectors - The Reverse Repo Rate too will remain unchanged at 3.35%. He informed that Monetary Policy Committee was of the view that policy support from all sides is required to gain growth momentum and to nurture recovery after it takes root. “Hence policy rate has been left unchanged and accommodative stance has been decided to be continued as long as necessary to revive and sustain growth, while ensuring inflation remains within target” the Governor said while delivering RBI’s bi-monthly monetary policy statement through an online address.
RBI Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022 - In exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 (02 of 1934) (hereinafter called the Act) read with section 45U of the Act and in supersession of Circular No. IDMD.PCD.No.10/14.03.04/2012-13 dated January 07, 2013, the Reserve Bank of India (hereinafter called the Reserve Bank) hereby issues the following Directions.
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 19, 2018) (Updated as on December 22, 2017) (Updated as on February 02, 2017) (Updated as on May 26, 2016) To, All Authorised Dealer Category – I banks […]
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 Model Educational Loan Scheme-2001 - The Finance Minister in a meeting with the Chief Executives of the public sector banks on 13 June 2000 had highlighted the role of commercial banks in facilitating pursuit of higher education by poor, but meritorious students. In pursuance thereof the Indian Banks Association constituted a Study Group under the chairmanship of Shri R.J.Kamath, Chairman and Managing Director of Canara Bank to examine the issue in detail. Based on the recommendations of the Study Group, a comprehensive model educational loan scheme was prepared by the Indian Banks Association for adoption by all banks. The Scheme aims at providing financial support from the banking system to deserving/meritorious students for pursuing higher education in India and abroad.The scheme was announced in the Union Budget for 2001-2002 and discussed in the meeting the Finance Minister had with the Chief Executives of banks on 7 April 2001.
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 National Electronic Clearing Service Procedural Guidelines-2011 - The objective of the system is to facilitate centralised processing for repetitive and bulk payment instructions. Sponsor banks shall submit NECS data at a single centre viz. at Mumbai. NECS (Credit) shall facilitate multiple credits to beneficiaries’ accounts at core banking enabled destination bank branches spread across the country against a single debit of the account of a User with the Sponsor Bank which maintains settlement account in the books of RBI, Mumbai. NECS (Debit), when operationalised, shall facilitate multiple debits to destination account holders against single credit to User account.
RBI Payment and settlements in India: Vision-2019-21 - ayment and settlement systems are the backbone of any economy. The last decade has witnessed substantial developments in this area of activity across the country. The Reserve Bank of India (RBI), under powers from the Payment and Settlement Systems Act, 2007, has endeavoured to ensure that India has ‘state-of-the-art’ payment and settlement systems that are not just safe and secure, but are also efficient, fast and affordable. Efforts in this direction has yielded handsome results.
RBI Payments Vision-2025 - Payments Vision 2025 has been prepared after considering the inputs from various stakeholders and guidance from the Board for Regulation and Supervision of Payment and Settlement Systems of the RBI. The activities to be taken up during the period up to 2025 as part of Vision 2025 are captured across five anchor goalposts of Integrity, Inclusion, Innovation, Institutionalisation and Internationalisation. They cover 47 specific initiatives and 10 expected outcomes. Payments Vision 2025 builds on the initiatives of Payments Vision 2019-21.
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 regulatory policy relating to Financial Markets; Regulation; Payment and Settlement Systems and Currency Management (08/02/2023) - A well-functioning market for securities lending and borrowing will add depth and liquidity to the Government securities market, aiding efficient price discovery. It is, therefore, proposed to permit lending and borrowing of Government securities which will augment the existing market for ‘special repos’. The system is expected to facilitate wider participation in the securities lending market by providing investors an avenue to deploy idle securities and enhance portfolio returns. Draft Directions will be issued separately for stakeholder comments.
RBI releases Annual Report of Ombudsman Schemes, 2020-21 - The Reserve Bank of India (RBI) released the Annual Report of the Ombudsman Schemes for the year 2020-21 , which has been prepared for the nine-month period, i.e., July 1, 2020 to March 31, 2021, in alignment with the change in the Financial Year of RBI from ‘July – June’ to ‘April – March' with effect from July 1, 2020. The Annual Report covers the activities under the Banking Ombudsman Scheme, 2006 (BOS), the Ombudsman Scheme for Non-Banking Financial Companies, 2018 (OSNBFC) and the Ombudsman Scheme for Digital Transactions, 2019 (OSDT), major developments and the way forward in the area of consumer protection.
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 Retail Direct Scheme to bring G-secs within easy reach of common man - A significant milestone in the development of the Government securities (G-sec) market, the Reserve Bank of India-Retail Direct (RBI-RD) Scheme will bring G-secs within easy reach of the common man by simplifying the process of investment. Under the Scheme, retail individual investors will be able to open a Retail Direct Gilt (RDG) Account with the Reserve Bank of India, using an online portal
RBI Scale Based Regulation: A Revised Regulatory Framework for NBFCs-22/10/2021 - Regulatory structure for NBFCs shall comprise of four layers based on their size, activity, and perceived riskiness. NBFCs in the lowest layer shall be known as NBFC - Base Layer (NBFC-BL). NBFCs in middle layer and upper layer shall be known as NBFC - Middle Layer (NBFC-ML) and NBFC - Upper Layer (NBFC-UL) respectively. The Top Layer is ideally expected to be empty and will be known as NBFC - Top Layer (NBFC-TL)
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.
Registration of Factors (Reserve Bank) Regulations, 2022 - In exercise of the powers conferred by section 3 read with Section 31A of the Factoring Regulation Act, 2011 (12 of 2012), the Reserve Bank of India, hereby makes the following regulations pertaining to the manner of granting Certificate of Registration to companies which propose to do factoring business.
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 of India Monetary Policy Report – 07/04/2021 - The Indian equity market remained upbeat in October 2020 following the phased unlocking of the economy, Q2 corporate earnings and a slew of liquidity and regulatory measures by the RBI. Domestic equities, however, witnessed cautious trading towards the end of the month due to uncertainty surrounding the outcome of the US presidential elections. In November, the BSE Sensex gained by 11.4 per cent, supported by FPI inflows, positive developments on the vaccine and the Government’s approval of a ₹1.5 lakh crore production-linked incentive (PLI) scheme for 10 manufacturing sectors.
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
Reserve Bank-One Nation One Integrated Ombudsman Scheme-2021 - The Scheme integrates the existing three Ombudsman schemes of RBI namely, (i) the Banking Ombudsman Scheme, 2006; (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019
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.
Summary of RBI Concept Note on Central Bank Digital Currency (07/10/2022) - Reserve Bank defines CBDC as the legal tender issued by a central bank in a digital form. It is the same as a sovereign currency and is exchangeable one-to-one at par (1:1) with the fiat currency9. While money in digital form is predominant in India—for example in bank accounts recorded as book entries on commercial bank ledgers—a CBDC would differ from existing digital money available to the public because a CBDC would be a liability of the Reserve Bank, and not of a commercial bank.
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 half-year ended December 31, 2018,” the RBI said. The RBI board also “reviewed the current economic situation, global and domestic challenges, and other specific areas of operations”. The […]
Unique Transaction Reference number (22-character code) used to uniquely identify a transaction in RTGS system - RTGS transaction through NetBanking - the maximum amount of funds that can be transferred per day is as per customer's TPT limit (Maximum upto Rs. 50 Lakh)
What is Sovereign Gold Bond (SGB) and when it was introduced by GOI? - The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.
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.