Category Archives: RBI

RBI Master Directions on Access Criteria for Payment Systems

Master Directions on Access Criteria for Payment Systems RBI/DPSS/2016-17/51 Master Direction DPSS.CO.OD.No.1846/04.04.009/2016-17 January 17, 2017 The Chairman/ Managing Director/ Chief Executive Officer All Scheduled Commercial Banks including RRBs/ Urban Co-operative Banks/ State Co-operative Banks/ District Central Co-operative Banks/ Payment Banks/ Small Finance Banks/ Primary Dealers/ Authorised Payment System Providers Dear Sir, Master Directions on Access… Read More »

Withdrawal of Old bank Notes – RBI Updated FAQ till 17.01.2017

Withdrawal of Legal Tender Character of the Old Bank Notes in the denominations of Rs 500 and Rs 1000 and The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 (Updated as on January 17, 2017) 1. Why was the Scheme of Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of… Read More »

Category: RBI

Match & Settle Bill of Entry data with Outward Remittance Message : RBI to Authorised Dealer Banks

RBI/2016-17/212 A.P. (DIR Series) Circular No. 27 January 12, 2017 To All Category – I Authorised Dealer Banks Madam / Sir, Evidence of Import under Import Data Processing and Monitoring System (IDPMS) Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 05 dated October 06, 2016 read with… Read More »

Issue of Convertible Notes by Indian startup companies -FEMA regulations 2016 notified

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 10th January, 2017 No.FEMA.377/ 2016-RB Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fifteenth Amendment) Regulations, 2016 G.S.R. 16 (E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47… Read More »

How Asset Prices Interact with Bank Credit and Monetary Policy?

RBI Working Paper* Series No. 1/2017 : How Asset Prices Interact with Bank Credit and Monetary Policy? By Bhupal Singh and Avadhoot R. Nadkarni The Reserve Bank of India placed on its website today a Working Paper titled “How Asset Prices interact with Bank Credit and Monetary Policy? Evidence from Emerging Market and Developing Economies“.… Read More »

Category: RBI

NBFCs -All you wanted to know-FAQ’s

All you wanted to know about NBFCs (Updated as on January 10, 2017) A. Definitions 1. What is a Non-Banking Financial Company (NBFC)? A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or… Read More »

Exchange Limit of Indian Currency to foreign citizens till 31.01.2017

RBI/2016-17/208 A.P. (DIR Series) Circular No. 24 January 03, 2017 To All Authorised Persons Madam / Sir, Exchange facility to foreign citizens Attention of Authorized Persons is invited to the A.P. (DIR Series) Circular No. 20 dated November 25, 2016 permitting foreign citizens to exchange foreign exchange for Indian currency notes up to a limit… Read More »

Supply 40% of bank notes to rural areas : RBI to Banks

Allocation of cash for rural areas RBI/2016-17/207 DCM (Plg) No.2200/10.27.00/2016-17 January 03, 2017 The Chairman / Managing Director/ Chief Executive Officer, (All banks with currency chests) Dear Sir / Madam Allocation of cash for rural areas Please refer to our circulars DCM (Plg) No.1345/10.27.00/2016-17 dated November 22, 2016 and DCM (Plg) No.1508/10.27.00/2016-17 dated December 02,… Read More »

Tender Form – For Resident Indians – For Deposit of Old Bank Notes at RBI

Tender Form – For Resident Indians [ Related Post How and Where to Deposit Old bank notes after 30.12.2016 : RBI prescribed procedure How to deposit old Bank notes at RBI after 30.12.2016 -Key Points ] Download Tender Form – For Resident Indians Related Post on Demonetization Particulars Date Circular No       Ceasing of bank… Read More »

How and Where to Deposit Old bank notes after 30.12.2016 : RBI prescribed procedure

Facility for exchange of Specified Bank Notes (SBNs) during Grace Period – Verification of KYC and Account details RBI/2016-17/205 DCM (Plg) No.2170 /10.27.00/2016-17 December 31, 2016 The Chairman / Managing Director/ Chief Executive Officer, Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural Banks / Urban Cooperative Banks/ State Cooperative Banks District Central… Read More »

Pre-Paid Payment Instruments Issuance to merchants – RBI exentended Time

RBI/2016-17/203 DPSS.CO.PD.No.1669/02.14.006/2016-2017 December 30, 2016 All Prepaid Payment Instrument Issuers System Providers, System Participants and all other Prospective Prepaid Payment Instrument Issuers Dear Madam/ Sir, Special measures to incentivise Electronic Payments – Extension of time A reference is invited to circular DPSS.CO.PD.No.1288/02.14.006/2016-17 dated November 22, 2016 advising enhancements in the limits of semi-closed PPIs issued… Read More »

Daily Cash withdrawal Limit from ATMs increased w.e.f 01.01.2017

RBI/2016-17/204 DCM (Plg) No. 2142/10.27.00/2016-17 December 30, 2016 The Chairman / Managing Director/ Chief Executive Officer, Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural Banks / Urban Cooperative Banks/ State Cooperative Banks District central Cooperative Banks Dear Sir, Cash withdrawal from ATMs – Enhancement of daily limits Please refer to our circular… Read More »

RBI alowed White Label ATM Operators for Sourcing of cash from retail outlets

RBI/2016-17/202 DPSS.CO.PD. No.1621/02.10.002/2016-17 December 30, 2016 The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks / Authorised ATM Network Operators /Card Payment Network Operators/ White Label ATM Operators Dear Madam/ Sir, White Label ATM Operators (WLAOs)… Read More »

Old Bank Notes cannot form part of banks cash balances on 31.12.2016 : RBI

RBI/2016-17/201 DCM (Plg) No.2103/10.27.00/2016-17 December 30, 2016 The Chairman / Managing Director / Chief Executive Officer Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks / District Central Co-op Banks Dear Sir, Closure of the scheme of exchange of Specified Bank Notes… Read More »

Sanction Additional Working Capital Limits to Micro and Small Enterprises : RBI

RBI/2016-17/200 FIDD.MSME & NFS.BC.No.20/06.02.31/2016-17 December 29, 2016 All Scheduled Commercial Banks (Excluding Regional Rural Banks) Dear Sir / Madam, Sanction of Additional Working Capital Limits to Micro and Small Enterprises (MSEs) Please refer to our circular FIDD.MSME & NFS.BC.No.60/06.02.31/2015-16 dated August 27, 2015 on ‘Streamlining flow of credit to Micro and Small Enterprises (MSEs) for… Read More »

RBI issued Interest Rate Options Directions 2016 in India

RBI/2016-17/199 FMRD.DIRD.12/14.01.011/2016-17 December 29, 2016 To All eligible market participants Dear Sir/Madam Introduction of Interest Rate Options in India As announced in the fourth bi-monthly Monetary Policy Statement 2016-17, it has been decided to introduce Interest Rate Options in India. 2. The Reserve Bank of India has accordingly issued a Notification No. FMRD.DIRD. 11/2016 dated… Read More »

Dr. Viral V. Acharya Appointed Deputy Governor of RBI

Dr. Viral V. Acharya Appointed Deputy Governor, Reserve Bank of India Date : Dec 28, 2016 The Central Government has, through notification F No. 7/1/2012-BO-I (Pt.) dated December 28, 2016, appointed Dr. Viral V. Acharya, currently C.V. Starr Professor of Economics, Department of Finance, New York University – Stern School of Business, (resume enclosed) as… Read More »

RBI given additional time for Classification of standard asset as substandard

RBI/2016-17/198 DBR.No.BP.BC.49/21.04.048/2016-17 December 28, 2016 All Regulated Entities Madam / Dear Sir, Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances Please refer to circular DBR.No.BP.BC.37/21.04.048/2016-17 dated November 21, 2016. 2. On a review, it has been decided to: (i) Provide 30 days, in addition to the 60 days provided vide the… Read More »

RBI allowed FPIs to transact directly in Indian Company non-convertible debentures/bonds

Purchase and sale of securities other than shares or convertible debentures of an Indian company by a person resident outside India RBI/2016-17/197 A.P. (DIR Series) Circular No.23 December 27, 2016 To All Category – I Authorised Dealer Banks Madam/ Sir, Purchase and sale of securities other than shares or convertible debentures of an Indian company… Read More »

RBI permitted Banks to issue prepaid instruments to Employers /unlisted corporates / partnership firms / sole proprietorship / public organisation

Master Circular on Issuance and Operations of Prepaid Payment Instruments – Amendments to paragraph 7.9 RBI/2016-17/196 DPSS.CO.PD.No.1610/02.14.006/2016-17 December 27, 2016 All Prepaid Payment Instrument Issuers, System Providers, System Participants and all other Prospective Prepaid Payment Instrument Issuers Dear Madam / Sir, Master Circular on Issuance and Operations of Prepaid Payment Instruments – Amendments to paragraph… Read More »

Interest Subvention Scheme for Short Term Crop Loans for FY 2016-17 -Grace period

Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17- Grant of grace period of 60 days beyond due date RBI/2016-17/194 FIDD.No.FSD.BC. 19/05.04.02/2016-17 December 26, 2016 To, The Chairman / Managing Director All Public & Private Sector Scheduled Commercial Banks Dear Sir/Madam Interest Subvention Scheme for Short Term Crop Loans during the year… Read More »

RBI opens Office of Banking Ombudsman at Ranchi

Date : Dec 23, 2016 Considering the significant increase in banking network during the recent past and the large jurisdiction being covered by the current Office of the Banking Ombudsman, Patna, the Reserve Bank of India has set up an Office of the Banking Ombudsman for the State of Jharkhand at Reserve Bank of India,… Read More »

Category: RBI

RBI -Procedural Guidelines for Servicing the Sovereign Gold Bonds

RBI/2016-17/193 IDMD No.1569/14.04.050/2016-17 December 23, 2016 All Scheduled Commercial Banks (Excluding RRBs) Designated Post Offices Stock Holding Corporation of India Ltd. (SHCIL) BSE & NSE Madam/Sir, Procedural Guidelines for Servicing the Sovereign Gold Bonds The Sovereign Gold Bond Scheme was launched by Government of India (GOI) on October 30, 2015. The Sovereign Gold Bonds (henceforth… Read More »

Why historic Demonetisation decision was taken in India ?

 Demonetisation in India On 8th November 2016,the Prime Minister Shri Narendra Modi announced demonetisation of Rs. 500 and Rs. 1000 notes that represent 86.4% of the currency in circulation 1. Corruption in India India is the 76 least corrupt nation out of 175 countries, according to the 2015 Corruption Perceptions Index reported by Transparency International.… Read More »

Interest rates on Special Deposit Scheme 1975 for calendar year 2016

Special Deposit Scheme 1975 – Payment of interest for the calendar year 2016 RBI/2016-17/192 DGBA.GAD.No.1478/15.01.001/2016-17 December 22, 2016 The Chairman/Chief Executive Officer Agency Banks handling Special Deposit Scheme,1975 Dear Sir, Special Deposit Scheme 1975 – Payment of interest for the calendar year 2016 Please find enclosed copies of Government of India Gazette Notifications dated April… Read More »

Withdrawal of Cash From Bank -RBI Updated FAQ

Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on December 22, 2016) (Updated as on December 22, 2016) 1. Why is this scheme introduced? The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes… Read More »

RBI to issue of Rs 50 Banknotes with inset letter ‘L’

Date : Dec 19, 2016 RBI to issue of Rs 50 Banknotes with inset letter ‘L’, with numerals in ascending size in number panels, and without intaglio printing The Reserve Bank of India will shortly issue Rs 50 denomination banknotes in the Mahatma Gandhi Series-2005, with inset letter ‘L’ in both the number panels, bearing… Read More »

Category: RBI

RBI to issue of Rs 50 Banknotes with inset letter ‘R’,

Date : Dec 19, 2016 RBI to issue of Rs 50 Banknotes with inset letter ‘R’, with numerals in ascending size in number panels, and without intaglio printing The Reserve Bank of India will shortly issue Rs 50 denomination banknotes in the Mahatma Gandhi Series-2005, with inset letter ‘R’ in both the number panels, bearing… Read More »

Category: RBI

RBI Caped Maximum Charges for Transactions upto Rs 2000 with debit cards

Special measures upto March 31, 2017: Rationalisation of Merchant Discount Rate (MDR) for transactions upto ₹ 2000/- RBI/2016-17/184 DPSS.CO.PD.No.1515/02.14.003/2016-17 December 16, 2016 The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks / Payments Banks and Small… Read More »

No charges for Transactions settled upto Rs 1000 through IMPS,USSD, UPI : RBI

Special Measures upto March 31, 2017 : Rationalisation of customer charges for Immediate Payment Service (IMPS), Unified Payment Interface (UPI) & Unstructured Supplementary Service Data (USSD) RBI/2016-17/185 DPSS CO.PD.No.1516/02.12.004/2016-17 December 16, 2016 The Chairman and Managing Director / Chief Executive Officers All participants in Immediate Payment Service (IMPS), Unified Payment Interface (UPI) and Unstructured Supplementary… Read More »

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS) 2016

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS) 2016 RBI/2016-17/187 IDMD.CDD.No.1453/14.04.050/2016-17 December 16, 2016 The Chairman & Managing Director All Authorised Banks Dear Sir/Madam, Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 The Government of India has vide the notification no. S.O. 4061 (E) dated December 16, 2016 announced the “Pradhan Mantri Garib Kalyan Deposit Scheme… Read More »

PMGKDS 2016 – Operational Guidelines by RBI

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 – Operational Guidelines RBI/2016-17/188 IDMD.CDD.No.1454/14.04.050/2016-17 December 16, 2016 The Chairman & Managing Director Authorised Banks Dear Sir/Madam, Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 – Operational Guidelines This has reference to the Central Government notification S.O. 4061 (E) and RBI circular IDMD.CDD.No. 1453/14.04.050/2016-17 dated December 16,… Read More »

FAQ’s on PMGKDS- Pradhan Mantri Garib Kalyan Deposit Scheme 2016

Pradhan Mantri Garib Kalyan Deposit Scheme 2016 1. What is Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 is a scheme notified by the Government of India on December 16, 2016 which is applicable to every declarant under the Taxation and Investment Regime for Pradhan Mantri Garib… Read More »

RBI Revised threshold for taking PAN/ Form 60 for Bank accounts – KYC

Compliance to provisions of Master Direction on Know Your Customer (KYC) RBI/2016-17/183 DBR.AML.BC.48/14.01.01/2016-17 December 15, 2016 All Regulated Entities Dear Sir/Madam, Compliance to provisions of Master Direction on Know Your Customer (KYC) A reference may be made to the following provisions of the Master Direction on Know Your Customer (KYC): (i) Section 8(d) and (e),… Read More »