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.
RBI Minutes of the Monetary Policy Committee Meeting, April 3 to 5
The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 per cent, while supporting growth.
Foreign Exchange Management (Non-debt Instruments) (Third Amendment) Rules, 2024
The amendment provides the revised caps for foreign investment through automatic route in the Space Sector.
RBI draft circular to provide clarity on several key aspects of PA regulation
The circulars also address the net worth requirement for PAs, emphasizing the importance of maintaining adequate financial strength to support their operations. This requirement is applicable on an ongoing basis, highlighting the need for financial stability in the payment aggregation space.
Draft Regulation of Payment Aggregators – physical Point of Sale
Non-bank entities offering PA-POS services are required to seek authorization from the RBI within a specified timeline. Existing entities must intimate their intention to seek authorization within 60 days of the circular’s issuance and apply for authorization by a designated deadline. Non-bank PAs authorized for online transactions are also required to seek approval from the RBI to continue their PA-POS activities.
RBI have laid down comprehensive guidelines on the disclosure of essential information regarding loans and advances
Regulated entities (REs) are mandated to provide a KFS to prospective borrowers before the execution of a loan contract. This document, outlined in Annex A of the guidelines, must be comprehensible to borrowers. Furthermore, REs are obligated to ensure that borrowers understand the contents of the KFS, obtaining acknowledgment thereof.
RBI permits resident entities to hedge their exposures to price risk of gold using OTC derivatives in the IFSC
To provide further flexibility to resident entities to hedge their exposures to price risk of gold, it has now been decided to permit resident entities to hedge their exposures to price risk of gold using OTC derivatives in the IFSC in addition to the derivatives on the exchanges in the IFSC, subject to the stipulations set out in the Master Direction – Foreign Exchange Management (Hedging of Commodity Price Risk and Freight Risk in Overseas Markets) Directions, 2022, as amended from time to time.
Launch of RBI’s new website and mobile application
The new website and mobile application of the Reserve Bank of India was released which can be accessed using the URL https://website.rbi.org.in. The new mobile application of Reserve Bank of India can be downloaded from Play store for Android users and App Store for iOS users.
