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.
The Expert Committee on developing GIFT IFSC as “Global Finance and Accounting Hub” has submitted its report IFSCA
In its report, the Committee has highlighted the potential for GIFT IFSC to become a global hub for book-keeping, accounting, taxation and financial crime compliance services, which would create large employment opportunities for the talented workforce.
IFSCA (Vault Manager) Amendment Circular
The amendment provides that a registered Vault Manager may make an application in such form and manner as may be specified by the Authority for registration of additional vault(s) under its existing registration.
RBI clarification regarding Investments in Alternative Investment Funds banking entities
Investment by banking entities in the subordinated units of any AIF scheme with a ‘priority distribution model’ shall be subject to full deduction from RE’s capital funds. This shall only be applicable in cases where the AIF does not have any downstream investment in a debtor company of the RE.
Omnibus Framework for recognizing Self-Regulatory Organizations for its Regulated Entities
The omnibus framework contains broad parameters viz., objectives, responsibilities, eligibility criteria, governance standards, application process and other basic conditions for grant of recognition, which will be common for any SRO proposed to be recognized by the Reserve Bank. Other sector-specific guidelines like number of SROs, membership, etc., shall be issued separately by the respective departments of the Reserve Bank wherever a sectoral SRO is intended to be set up.
RBI extends the timeline for submission of entries for financial literacy Ideathon
In view of requests received for an extension of the timeline, the Reserve Bank of India (RBI) is pleased to announce the extension of last date of submission, to April 15, 2024. RBI aim to encourage more students to participate actively and contribute their creative solutions to address financial literacy challenges.
