Norms for Remittances to International Financial Services Centers (IFSCs) under the Liberalized Remittance Scheme
It is directed that Authorized Persons may facilitate remittances by resident individuals under purpose ‘studies abroad’ as mentioned in Foreign Exchange Management (Current Account Transactions) Rules, 2000 for payment of fees to foreign universities or foreign institutions in IFSCs for pursuing courses.
Revised Master Direction for Housing Finance Companies
Updated Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 enabling the Bank to regulate the financial system to the advantage of the country and to prevent the affairs of any Housing Finance Company (HFC) from being conducted in a manner detrimental to the interest of investors and depositors or in any manner prejudicial to the interest of such HFCs
Revised Master Directions – Mortgage Guarantee Companies(MGCs) (Reserve Bank) Directions, 2016
The amended master directions provides that the MGCs shall comply with the instructions contained in circular on ‘Framework for Compromise Settlements and Technical Write-offs’ dated June 08, 2023, as amended from time to time.
FAQ on ‘Framework for Compromise Settlements and Technical Write-offs’
2. The provision enabling banks to enter into compromise settlement in respect of borrowers categorised as fraud or wilful defaulter is not a new regulatory instruction and has been the settled regulatory stance for more than 15 years.
RBI Clarifications on allegations of missing of banknotes printed by banknote printing presses
All banknotes supplied from printing presses to RBI are properly accounted for. There are robust systems in place for reconciliation of banknotes printed at the presses and supplied to RBI which include protocols to monitor production, storage and distribution of banknotes.
RBI allows additional time to UCBs to achieve PSL
In case contribution has been made by any UCB towards the above PSL shortfall during the FY 2020-21 and/ or FY 2021-22, that contribution can be used to offset any shortfall that may have occurred during FY 2022-23. Excess deposit, if any, after offsetting the PSL shortfall during FY 2022-23 will be refunded.
RBI Statement on Developmental and Regulatory Policies
RBI on June 08, 2023 has issued Statement on Developmental and Regulatory Policies relating to (i) Financial Markets; (ii) Regulation; and (iii) Payment Systems.
RBI Guidelines on Default Loss Guarantee (DLG) in Digital Lending
Arrangements between Regulated Entities (REs) and Lending Service Providers (LSPs) or between two REs involving default loss guarantee (DLG), commonly known as FLDG, has been examined by the Bank and it has been decided to permit such arrangements.
Framework for Compromise Settlements and Technical Write-offs
The Prudential Framework for Resolution of Stressed Assets dated June 7, 2019 provides a broad principle-based framework. With a view to provide further impetus to the same, as well as to harmonize the instructions across all regulated entities, Statement on Developmental and Regulatory Policies dated June 08, 2023 has proposed to Issue a comprehensive regulatory framework governing compromise settlements and technical write-offs covering all regulated entities.
RBI revises Scope of Trade Receivables Discounting System
Insurance facility will now be permitted on TReDS. This will encourage financing / discounting of payables of buyers irrespective of their credit ratings. Accordingly, insurance companies will be permitted to participate as a “fourth participant” on TReDS, apart from the MSME sellers, buyers and financiers.
All entities / institutions eligible to undertake factoring business under the Factoring Regulation Act will be permitted to participate as financiers in TReDS.
Secondary market operations will now be enabled on TReDS platforms. This would allow financiers to offload their existing portfolio to other financiers within the same TReDS platform, if required.
