RBI framework for Voluntary transition of Small Finance Banks to Universal Banks
The eligible SFB may submit its application for transition to Universal Bank, in the prescribed form (Form III) in terms of Rule 11 of the Banking Regulation (Companies) Rules, 1949, along with other requisite documents, to Department of Regulation, Reserve Bank of India, Central Office, 12th Floor, Central Office Building, Shahid Bhagat Singh Road, Mumbai – 400001.
RBI has issued the limits for investment in debt and sale of credit default swaps by Foreign Portfolio Investors (FPIs)
The limits for FPI investment in government securities (g-secs), state government securities (SGSs) and corporate bonds shall remain unchanged at 6 per cent, 2 per cent and 15 per cent respectively, of the outstanding stocks of securities for 2024-25.
RBI invites comments on the Draft Circular on “Digital Lending – Transparency in Aggregation of Loan Products from Multiple Lenders”
Comments/ feedback, if any, may be sent by e-mail with the subject line “Comments on Draft Circular on Digital Lending – Transparency in Aggregation of Loan Products from Multiple Lenders”, by May 31, 2024.
RBI FAQ on comprehensive guidelines on Default Loss Guarantee (DLG) in Digital Lending
The Reserve Bank of India (RBI) has recently issued FAQ on comprehensive guidelines on Default Loss Guarantee (DLG) in Digital Lending, aiming to regulate and enhance transparency in the digital lending ecosystem. These guidelines provide a structured framework for managing DLG arrangements, ensuring prudent risk management practices while fostering innovation in the digital lending landscape.
RBI cautions public against Prepaid Payment Instruments issued by unauthorized entities
Members of public should verify and satisfy themselves that the website / application used or the entity they are dealing with is authorised to carry out the activity it performs.
Foreign Exchange Management (Mode of Payment and Reporting of Non Debt Instruments) (Amendment) Regulations, 2024
The Authorised Dealer Category I banks shall report to the Reserve Bank in Form LEC (FII) the purchase / transfer of equity instruments by FPIs on the stock exchanges in India.
RBI cautions against unauthorized foreign exchange transactions
There is a need for greater vigilance to prevent the misuse of banking channels in facilitating unauthorised forex trading. AD Cat-I banks are, therefore, advised to be more vigilant and exercise greater caution in this regard. As and when AD Cat-I banks come across an account being used to facilitate unauthorised forex trading, they shall report the same to the Directorate of Enforcement, Government of India, for further action, as deemed fit.
The Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024
The provisions of these Directions shall apply to every asset reconstruction company (ARC) registered with the Reserve Bank under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
RBI Reviews Requirement of Counter-Cyclical Capital Buffer
The framework envisages credit-to-GDP gap as the main indicator, which may be used in conjunction with other supplementary indicators. Based on review and empirical analysis of CCyB indicators, it has been decided that it is not necessary to activate CCyB at this point in time.
RBI Master Circular – Credit facilities to Scheduled Castes (SCs) & Scheduled Tribes (STs)
Under major centrally sponsored schemes, reservations and relaxations are earmarked for SCs/STs, ensuring equitable access to credit opportunities. For instance, schemes like Deendayal Antyodaya Yojana prioritize the inclusion of SCs/STs, reflecting a commitment to inclusive growth. Additionally, differential rate of interest schemes and credit enhancement guarantee schemes offer tailored financial support, addressing the unique needs of SC/ST entrepreneurs.
