Progress of NEFT and RTGS Systems
National Electronic Funds Transfer (NEFT) system and Real Time Gross Settlement (RTGS) system are being managed by the Reserve Bank to settle the retail and wholesale payments, respectively. An important landmark was reached in the journey of these systems with NEFT and RTGS functioning on a 24x7x365 basis from December 16, 2019, and December 14, 2020, respectively.
RBI update on Withdrawal of ₹2000 Denomination Banknotes
The facility for exchange of the ₹2000 banknotes is available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices)1 since May 19, 2023. From October 09, 2023, RBI Issue Offices are also accepting ₹2000 banknotes from individuals / entities for deposit into their bank accounts. Further, members of the public are sending ₹2000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts.
Master Direction – Reserve Bank of India (Bharat Bill Payment System) Directions, 2024
These Directions seek to streamline the process of bill payments, enable greater participation, and enhance customer protection among other changes. These Directions shall be applicable from April 01, 2024.
RBI invites comments on the “Draft Disclosure framework on Climate-related Financial Risks, 2024”
These guidelines shall be applicable to all Scheduled Commercial Banks (excluding Local Area Banks, Payments Banks and Regional Rural Banks), All Tier-IV Primary (Urban) Co-operative Banks, All All-India Financial Institutions (viz. EXIM Bank, NABARD, NaBFID, NHB and SIDBI) and All Top and Upper Layer Non-Banking Financial Companies (NBFCs).
RBI publishes updated ‘Enabling Framework for Regulatory Sandbox’
Among others, the timelines of the various stages of the Regulatory Sandbox process have been revised from seven months to nine months. The updated framework also requires sandbox entities to ensure compliance with provisions of the Digital Personal Data Protection Act, 2023.
RBI has issued revised Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024
The Master Direction provides a broader framework to understand the purpose of the returns and harmonizes the timelines for their submission. This Direction removes certain instructions that have become obsolete and consolidates twenty existing instructions, including one Master Direction for Non Banking Financial Companies. It creates a single document for ensuring compliance related to submission of all supervisory data.
Amendment to Master Direction on Prepaid Payment Instruments
Public transport systems across the country cater to a multitude of commuters on a daily basis. To provide convenience, speed, affordability, and safety of digital modes of payment to commuters for transit services, it has been decided to permit authorised bank and non-bank PPI issuers to issue PPIs for making payments across various public transport systems.
RBI declares that Card Network that enables businesses to make card payments through certain intermediaries to entities that do not accept card payments qualifies as payment system
Under this arrangement, the intermediary accepts card payments from corporates for their commercial payments and then remits the funds via IMPS/RTGS/NEFT to non-card accepting recipients. On closer scrutiny, it was observed that this arrangement qualified as a payment system. Under the provisions of Payment and Settlement Systems (PSS) Act, 2007, such payment system requires authorization under Section 4 of PSS Act, which has not been obtained in the instant case. The activity was, therefore, without legal sanction.
National Savings Time Deposit (Amendment) Scheme, 2024
By giving retrospective effect to the National Savings Time Deposit (Amendment) Scheme, 2024, no one shall be adversely affected as a result of retrospective effect being given to this amendment.
Review of Fixed Remuneration granted to Non-Executive Directors of private banks
Considering the crucial role of NEDs in efficient functioning of bank Boards and its various Committees and in order to further enable the banks to sufficiently attract qualified competent individuals on their Boards, it has been decided to revise the ceiling to ₹30 lakh per annum.
