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RBI UPDATE
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Sr No
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Circular/ Notification number
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Particulars
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Applicability
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1 (a)
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RBI/2011-12/509 dated April 17, 2012
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Section 24 of the
Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR)
– Marginal Standing Facility (MSF)
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All Scheduled Commercial Banks
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(b)
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RBI/2011-12/505 MPD.BC.354 /07.01.27 9/2011-12 dated April 17, 2012
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Standing Liquidity
Facilities for Banks and Primary Dealers
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All the Scheduled Banks
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(c)
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Monetary Policy Statement 2012 – 13
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Highlights of Monetary Policy Statement 2012-13
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To all
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(d)
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RBI/2011-12/513 DPSS (CO) EPPD No.
1918/ 04.03.01/
2011-12 dated April 18, 2012.
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ECS (Debit) mandate management procedure
by the banks – adherence to Procedural Guidelines
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To all the banks
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(e)
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RBI/2011-12/512 A.
P. (DIR Series) Circular No. 109 dated April 18, 2012
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Authorised Dealer Category II –
Permission for additional activity and opening of Nostro account
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All Authorised Persons in Foreign Exchange
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(f)
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RBI/2011-12/510 RPCD.CO RRB.BC No.71 /03.05.33/2011-12 dated April 18, 2012
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Grant of ‘Certificate of Registration’
– For carrying on the business of Credit Information – Credit Information
Bureau (India)
Limited
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Information to all
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(g)
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RBI/2011-12/515 DBOD.No.Ret.BC.96 /12.01.001/2011-12 dated April 19, 2012
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Bank Rate and penal interest rates
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All Scheduled Commercial Banks
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(h)
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RBI/2011-12/520 A.
P. (DIR Series) Circular No. 112 dated April 20, 2012
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External Commercial Borrowings (ECB)
Policy – Refinancing / Rescheduling of ECB (Revised)
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All Category-I Authorised Dealer Banks
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(i)
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RBI/2011-12/519 A.
P. (DIR Series) Circular No. 111 dated April 20, 2012
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External Commercial
Borrowings (ECB) Policy –
Liberalisation and Rationalisation |
All Category-I Authorised Dealer Banks
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(j)
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RBI/2011-12/518 A.
P. (DIR Series) Circular No. 110 dated April 20, 2012
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Exim Bank's Line of
Credit of USD 15 million to the Government of the Republic of Togo
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All Category-I Authorised Dealer Banks
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(k)
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RBI/2011-12/516 DPSS (CO) RTGS No. 1934/04.04.002/2011-12 dated April 20, 2012
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Printing of MICR Code and IFSC Code on
Passbook/Statement of Account
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All banks participating in RTGS, NEFT and NECS
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(l)
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RBI/2011-12/522 IDMD.PCD.4085 /14.03.04 /2011-12 dated April 23, 2012
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Guidelines on Credit Default Swaps
(CDS) for Corporate Bonds-Permitting All India Financial Institutions
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All India
Financial Institutions
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(m)
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RBI/2011-12/523 A.
P. (DIR Series) Circular No. 113 dated April 24, 2012
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External Commercial Borrowings (ECB)
for Civil Aviation Sector
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All Category-I Authorised Dealer Banks
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(n)
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RBI/2011-12/524
RPCD.CO.Plan.BC.73 /04.09.01/2011-12 dated April 25, 2012
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Priority Sector Lending-Indirect
Finance to Housing Sector
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All Scheduled
Commercial Banks (excluding Regional Rural Banks)
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(o)
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RBI/2011-12/525 UBD.BPD. (PCB). Cir. No.31 /13.05.000/2011-12 dated April 26, 2012
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Monetary Policy Statement 2012-13 -
Exposure to Housing, Real Estate and Commercial Real Estate - Primary (Urban)
Co-operative Banks
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All Primary (Urban) Co-operative Banks
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(p)
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RBI/2011-12/528 DBOD.AML. BC. No. 97 /14.01.001/2011-12 dated April 27, 2012
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Intra-bank Deposit Accounts
Portability
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All Scheduled Commercial Banks (excluding RRBs)/Local Area Banks
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MCA UPDATES
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2 (a)
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MCA notification
dated April17, 2012
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Alterations in the Schedule XIV of the
Companies Act, 1956
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All the Companies.
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1(a) Section 24 of the
Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) –
Marginal Standing Facility (MSF)
RBI Notification – April 17, 2012:
We draw your attention to the RBI notification no: RBI/2011-12/509
dated April 17, 2012.
Applicability:
All Scheduled Commercial Banks
Crux of
the Notification:
In the RBI circular DBOD.No.Ret.BC.No.92/12.02.001/2010-11 dated
May 09, 2011 the Scheduled Commercial Banks (SCBs) were permitted to
borrow overnight, up to 1 per cent of their respective Net Demand and Time
Liabilities (NDTL) under the Marginal Standing Facility (MSF) Scheme.
2. As announced in the Reserve Bank of India's Annual Monetary Policy Statement
2012-13 on April 17, 2012, in order to provide greater liquidity
cushion, it has been decided to raise the borrowing limit of SCBs under the MSF
from 1 per cent to 2 per cent of their NDTL outstanding at the end of the
second preceding fortnight with immediate effect.
3. Banks can continue to access overnight funds under the MSF
against their excess SLR holding as advised in our circular FMD.No.65/01.18.001/11-12
dated December 21, 2011.
For further details
information please follow the below link
1 (b) Standing Liquidity Facilities for Banks
and Primary Dealers
RBI Notification
– April 17, 2012:
We draw your attention to the RBI notification no: RBI/2011-12/505
MPD.BC.354 /07.01.27 9/2011-12 dated April 17, 2012.
Applicability:
All the Scheduled Banks.
Meaning of Repo & Reverse Repo
Rate:
Repo is a collateralized lending i.e. the banks which borrow money from Reserve Bank to meet short term needs have to sell securities, usually bonds to Reserve Bank with an agreement to repurchase the same at a predetermined rate and date. Reserve bank charges some interest rate on the cash borrowed by banks. This rate is usually less than the interest rate on bonds as the borrowing is collateral. This interest rate is called ‘repo rate’. The lender of securities is said to be doing repo whereas the lender of cash is said to be doing ‘reverse repo’.
Crux of
the Notification:
With reference to the Monetary Policy Statement 2012-13
dated April 17, 2012, the repo rate under the Liquidity Adjustment
Facility (LAF) has been reduced by 50 basis points ie. from 8.50 per cent to
8.00 per cent with immediate effect.
The Standing Liquidity Facilities provided to the banks (export
credit refinance) and Primary Dealers (PDs) (collateralised liquidity support)
from the Reserve Bank would now be available at the revised repo rate, i.e., at 8.00 per cent with effect from April 17, 2012.
For further details
information please follow the below link
1 (c) Highlights of Monetary Policy
Statement 2012-13
RBI Notification
– April 17, 2012:
We draw your attention to the RBI notification Monetary Policy
Statement 2012 – 13.
Applicability:
To all
Crux of
the Notification:
(A) POLICY MEASURES:
* Repo Rate cut by 50 bps to 8.00 percent;
* Reverse repo rate adjusted 7.00 percent
* Bank Rate and MSF adjusted to 9.00
percent (The borrowing limit of banks under marginal standing facility has been
increased to 2 percent from 1 percent)
* Cash reserve ratio unchanged at 4.75%.
Similarly SLR remains unchanged at 24%
(B) POLICY STANCE:
* Says modest growth slowdown, upside risks to inflation
limit space for further reduction in policy rates
* Policy stance aims to provide greater liquidity cushion to
financial system
* Liquidity moving towards comfort zone, proactive steps will be
taken to restore to comfort zone if needed
(C ) FORECASTS :
* RBI has pegged the GDP growth rate for 2012-13 at 7.3 per
cent. It is expected to be 6.9 per cent in 2011-12.
* Dr. Subbarao, ruled out further reduction in policy rate in the
immediate future citing persistent upside risks to
inflation and possible fiscal slippages driven by higher oil subsidies.
It expects the inflation to be around 6.5 per cent by March 2013.
* Money supply growth projected at 15
percent, credit growth at 17 percent and deposits at 16 percent in 2012-13
(D) ECONOMY
* Says current account deficit level
unsustainable
* Financing of current account deficit will continue to pose a
major challenge
* Risk of pass-through of administered prices into inflation
limited on reduced corporate pricing power
* Non-food manufactured products inflation
expected to remain contained
For further details
information please follow the below link
1 (d) ECS (Debit) mandate
management procedure by the banks – adherence to Procedural Guidelines
RBI
Notification – April 18, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/513 DPSS (CO) EPPD No. 1918/ 04.03.01/ 2011-12 dated April 18,
2012.
Applicability:
To all the banks
Crux of
the Notification:
The banks are advised to adhere to the following:
1. All the debit mandates executed by the customers
authorizing debit in their accounts should be authenticated and stored by the
destination banks. Any debit to customers’ accounts will be raised only on the
basis of a valid mandate. If such mandates are not available on their record,
banks are not authorised to effect such debits to the customers’ accounts.
2.
The account holder may also be given the
facility of putting an upper limit for each individual transaction in the
mandate, and / or a time limit for operation of a particular ECS mandate (life
of a mandate) by the end user / destination banker. The debit to a customer’s
account has to be within this amount and time limits prescribed by the
customer.
3. Any instructions on withdrawal of mandate by the
customer will be accepted by the destination banks without necessitating the
customer to obtain the prior concurrence / approval for withdrawal from the
beneficiary user institution and will be treated equal to a “Stop Payment”
instruction in the cheque clearing system. After receipt of such instructions
for mandate withdrawal, no debit in the account will be permitted. In view of
the possibility of multiple mandates in one account, the banks should be
careful to record the withdrawal of the correct mandate.
For further details
information please follow the below link
1 (e) Authorised Dealer
Category II – Permission for additional activity and opening of Nostro account
RBI
Notification – April 18, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/512
A. P. (DIR Series) Circular No. 109 dated April 18, 2012.
Applicability:
All Authorised Persons in Foreign Exchange
Meaning of
Nostro and Vostro accounts:
A bank account held in a foreign country by a
domestic bank, denominated in the currency of that country. Nostro accounts are
used to facilitate settlement of foreign exchange and trade transactions.
Conversely, accounts that are held by the
domestic bank in its home country for foreign banks are called vostro accounts,
derived from the Latin word for "yours."
Crux of the Notification:
For further details
information please follow the below link
1 (f) Grant of ‘Certificate of
Registration’ – For carrying on the business of Credit Information – Credit
Information Bureau (India)
Limited
RBI
Notification – April 18, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/510
RPCD.CO RRB.BC No.71 /03.05.33/2011-12 dated
April 18, 2012.
Applicability:
Information to all
Crux of the Notification:
Reserve
Bank of India has issued
‘Certificate of Registration’ to Credit Information Bureau (India) Limited
to carry on the business of credit information.
For further details
information please follow the below link
1 (g) Bank Rate and penal
interest rates
RBI
Notification – April 18, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/515
DBOD.No.Ret.BC.96 /12.01.001/2011-12 dated
April 19, 2012.
Applicability:
All Scheduled Commercial Banks
Crux of the Notification:
As
per the Monetary Policy Statement 2012-13, the Bank Rate stands adjusted by 50
basis points from 9.50 per cent to 9.00 per cent with effect from April 17,
2012.
All
penal interest rates on shortfall in reserve requirements, which are
specifically linked to the Bank Rate, also stand revised
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Item
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Existing Rate
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Revised Rate
(Effective from April 17, 2012) |
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Penal interest rates on shortfalls in reserve requirements
(depending on duration of shortfalls).
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Bank Rate plus 3.0 percentage points (12.50 per cent) or Bank
Rate plus 5.0 percentage points (14.50 per cent).
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Bank Rate plus 3.0 percentage points (12.00 per cent) or Bank
Rate plus 5.0 percentage points (14.00 per cent).
|
For further details
information please follow the below link
1 (h) External Commercial Borrowings (ECB) Policy – Refinancing / Rescheduling of ECB (Revised)
RBI
Notification – April 20, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/520
A. P. (DIR Series) Circular No. 112 dated April 20, 2012.
Applicability:
All Category-I Authorised Dealer Banks
Crux of the Notification:
- As per the extant guidelines, existing ECB may
be refinanced by raising a fresh ECB subject to the condition that the fresh
ECB is raised at a lower all-in-cost.
- On a review, it has been decided that the
borrowers desirous of refinancing an existing ECB can raise fresh ECB at a
higher all-in-cost/reschedule an existing ECB at a higher all-in-cost under the approval route subject to
the condition that the enhanced all-in-cost does not exceed the all-in-cost
ceiling prescribed as per the extant guidelines.
- The modifications to the ECB policy will come
into force with immediate effect and will be subject to review. All other
aspects of ECB policy remain unchanged.
-
All the necessary amendments to the Foreign
Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations,
2000 dated May 3, 2000 are being issued separately wherever necessary.
For further details
information please follow the below link
1 (i) External Commercial Borrowings (ECB)
Policy –
Liberalisation and Rationalisation
Liberalisation and Rationalisation
RBI
Notification – April 20, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/519
A. P. (DIR Series) Circular No. 111 dated April 20, 2012.
Applicability:
All Category-I Authorised Dealer Banks
Crux of the Notification:
On a review of the policy related to ECB and keeping in view the
announcements made in the Union Budget for the Year 2012-13, it has been
decided to further rationalize and liberalize the extant guidelines as under:-
(i) Enhancement of Refinancing limit for Power Sector
Indian companies in the power
sector will be allowed to utilise 40 per cent of the fresh ECB
raised towards refinancing of the Rupee loan/s availed by them from the
domestic banking system, under the
approval route, subject to the condition that at least 60 per
cent of the fresh ECB proposed to be raised should be utilised for fresh capital
expenditure for infrastructure project(s). All other terms and conditions
relating to refinancing of Rupee loans mentioned in A.P. (DIR Series) Circular No. 25 dated
September 23, 2011 remain unchanged.
(ii) ECB for Maintenance and Operation of Toll systems for
Roads and Highways
ECBs would also be allowed for capital expenditure under the automatic route for the purpose of maintenance and
operations of toll systems for roads and highways provided they form part of
the original project.
Effect of the
notification:
The modifications to the ECB policy will come into force with
immediate effect. All other aspects of the ECB policy, such as, maximum
permissible limit under the automatic route, eligible borrower, recognised
lender,average maturity, all-in-cost,
prepayment, refinancing of existing ECB and reporting arrangements shall remain
unchanged.
For further details
information please follow the below link
RBI Notification – April
20, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/518
A. P. (DIR Series) Circular No. 110 dated April 20, 2012.
Applicability:
All Category-I Authorised Dealer Banks
Crux of the Notification:
Export-Import Bank of India (Exim Bank) has concluded an Agreement
dated November 23, 2011 with the Government of the Republic of Togo, making available to the latter, a
Line of Credit (LOC) of USD 15 million (USD fifteen million) for financing
export of eligible goods, services, machinery and equipment including
consultancy services for the purpose of financing Rural Electrification Project
in Togo. The goods, services, machinery and equipment including consultancy
services from India
for exports under this Agreement are those which are eligible for export under
the Foreign Trade Policy of the Government of India and whose purchase may be
agreed to be financed by the Exim Bank under this Agreement. Out of the total
credit by Exim Bank under this Agreement, the goods and services including consultancy
services of the value of at least 75 per cent of the contract price shall be
supplied by the seller from India and the remaining 25 percent goods and
services (other than consultancy services) may be procured by the seller for
the purpose of Eligible Contract from outside India.
2. The Credit Agreement under the LOC is effective from March 30,
2012 and the date of execution of Agreement is November 23, 2011. Under the
LOC, the last date for opening of Letters of Credit and Disbursement will be 48
months from the scheduled completion date(s) of contract(s) in the case of
project exports and 72 months (November 22, 2017) from the execution date of
the Credit Agreement in the case of supply contracts.
3. Shipments under the LOC will have to be declared on GR /
SDF Forms as per instructions issued by the Reserve Bank from time to time.
4.No agency commission is payable under the above LOC. However, if
required, the exporter may use his own resources or utilize balances in his
Exchange Earners’ Foreign Currency Account for payment of commission in free
foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow
such remittance after realization of full payment of contract value subject to
compliance with the prevailing instructions for payment of agency commission.
5.AD Category-I banks may bring the contents of this circular to
the notice of their exporter constituents and advise them to obtain full
details of the Line of Credit from the Exim Bank’s office at Centre One, Floor
21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to
www.eximbankindia.in.
6.The Directions contained in this circular have been issued under
sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999
(42 of 1999) and are without prejudice to permissions / approvals, if any,
required under any other law.
For further details
information please follow the below link:
1 (k) Printing of MICR Code and IFSC Code on
Passbook/Statement of Account
RBI
Notification – April 20, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/516
DPSS (CO) RTGS No. 1934/04.04.002/2011-12
dated April 20, 2012.
Applicability:
All banks participating in RTGS, NEFT and NECS
Crux of the Notification:
Currently, the MICR code is available on the cheque leaf along
with the IFSC code of the branch. On a review it has been decided that this
information should also be made available in the passbook / statement of
account of the account holders.
For further details
information please follow the below link
1 (l) Guidelines on Credit Default Swaps (CDS)
for Corporate Bonds-Permitting All India Financial Institutions
RBI
Notification – April 23, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/522
IDMD.PCD.4085 /14.03.04 /2011-12 dated April 23, 2012.
Applicability:
All India Financial
Institutions
Crux of the Notification:
In addition to the commercial banks, PDs, NBFCs, mutual funds,
insurance companies, housing finance companies, provident funds, listed
corporates and foreign institutional investors (FIIs) the All India
Financial Institutions, namely, Export Import Bank of India (EXIM), National
Bank for Agriculture and Rural Development (NABARD), National Housing Bank
(NHB) and Small Industries Development Bank of India (SIDBI) are also allowed
to participate in the CDS market as user
to hedge the underlying credit risk in corporate bonds in their portfolio.
For further details
information please follow the below link:
1 (m) External Commercial Borrowings (ECB) for
Civil Aviation Sector
RBI
Notification – April 24, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/523
A. P. (DIR Series) Circular No. 113 dated April 24, 2012.
Applicability:
All Category-I Authorised Dealer Banks
Crux of the Notification:
As per the extant guidelines, availing of ECB for working capital
is not a permissible end-use. On a review of the policy related to ECB and
keeping in view the announcement made in the Union Budget for the Year 2012-13,
it has been decided to allow ECB for working capital as a permissible end-use
for the civil aviation sector, under
the approval route, subject to the following conditions:
i.
Airline companies registered under the Companies
Act, 1956 and possessing scheduled operator permit license from DGCA for
passenger transportation are eligible to avail of ECB for working capital;
ii. ECB will be allowed to the airline companies
based on the cash flow, foreign exchange earnings and its capability to service
the debt;
iii.
The ECB for working capital should be raised
within 12 months from the date of issue of the circular;
iv.
The ECB can be raised with a minimum average
maturity period of three years; and
v.
The overall ECB ceiling for the entire civil
aviation sector would be USD one
billion and the maximum permissible ECB that can be availed by
an individual airline company will be USD
300 million. This limit can be utilized for working capital as
well as refinancing of the outstanding working capital Rupee loan(s) availed of
from the domestic banking system. Airline companies desirous of availing of
such ECBs for refinancing their working capital Rupee loans may submit the
necessary certification from the domestic lender/s regarding the outstanding
Rupee loan/s.
2. ECB availed for working capital/refinancing of working capital
as above will not be allowed to be rolled over.
3. The application for such ECB should be accompanied by a
certificate from a chartered accountant confirming the requirement of the
working capital loan and the projected foreign exchange cash flows/earnings
which would be used for servicing the loan. Authorised Dealer should ensure
that the foreign exchange for repayment of ECB is not accessed from Indian
markets and the liability is
extinguished only out of the foreign exchange earnings of the borrowing
company.
4. The modifications to the ECB policy will come into force from
the date of this circular. All other aspects of the ECB policy shall remain
unchanged.
For further details
information please follow the below link
1 (n) Priority Sector Lending-Indirect Finance
to Housing Sector
RBI
Notification – April 25, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/524
RPCD.CO.Plan.BC.73 /04.09.01/2011-12 dated April 25, 2012.
Applicability:
All Scheduled
Commercial Banks (excluding Regional Rural Banks)
Crux of the Notification:
Pursuant to the announcement made by Union Finance Minister in the
Union Budget for the year 2012-13, it has been decided to increase the limit
from Rs.5 lakh to Rs.10 lakh for the bank loans extended to non-governmental
agencies, approved by NHB for their refinance, for on-lending for the purpose
of construction/reconstruction of individual dwelling units or for slum
clearance and rehabilitation of slum dwellers.
The revised
limit is applicable to the bank loans sanctioned from the date of this
circular.
For further details
information please follow the below link
1 (o) Monetary Policy Statement 2012-13 -
Exposure to Housing, Real Estate and Commercial Real Estate - Primary (Urban)
Co-operative Banks
RBI
Notification – April 26, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/525
UBD.BPD. (PCB). Cir. No.31 /13.05.000/2011-12 dated April 26, 2012.
Applicability:
All Primary (Urban) Co-operative Banks.
Crux of the Notification:
At present, UCBs are permitted to assume aggregate exposure on
real estate, commercial real estate and housing loans up to a maximum of 10 per
cent of their total assets with an additional limit of 5 per cent of their
total assets for housing loans up to `1.5 million. In
order to facilitate enhanced priority sector lending, it is decided:
- to permit UCBs to utilise the additional limit of 5 per cent of their total assets for granting housing loans up to `2.5 million, which is covered under the priority sector.
For further details
information please follow the below link
1 (p) Intra-bank Deposit Accounts Portability
RBI
Notification – April 27, 2012:
We draw your attention to the RBI notification no. RBI/2011-12/528
DBOD.AML. BC. No. 97 /14.01.001/2011-12
dated April 27, 2012.
Applicability:
All Scheduled Commercial Banks (excluding RRBs)/Local Area Banks
Crux of the Notification:
Banks are advised that KYC once done by one branch of the bank
should be valid for transfer of the account within the bank as long as
full KYC has been done for the concerned account. The customer should be
allowed to transfer his account from one branch to another branch without
restrictions. In order to comply with KYC requirements of correct address of
the person, fresh address proof may be obtained from him/her upon such transfer
by the transferee branch. It may be noted that instructions regarding
periodical updation of KYC data in terms of para 2.4(e) and those on
maintenance of records of identity and transaction in terms of para 2.21(iii)
of the RBI Master circular DBOD.AML.BC.
No.2/14.01.001/ 2009-10 dated July 01, 2011 remain unchanged and
banks will be required to carry out the updation at prescribed intervals as also
maintain records of transactions and verification of identity as prescribed.
For further details
information please follow the below link
MCA UPDATES:
2(a) Alterations in the Schedule XIV of the Companies Act, 1956
MCA Notification
– April 17, 2012:
We
draw your attention to the MCA notification dated April17, 2012.
All the Companies.
Crux of
the Circular:
In addition to the present schedule XIV further alterations are
made to the same.
For
further information please follow the below mentioned MCA circular:
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