RBI issues revised instructions for Inoperative Accounts /Unclaimed Deposits in Banks
RBI has issued comprehensive guidelines on the measures to be put in place by the banks covering various aspects of classifying accounts and deposits as inoperative accounts and unclaimed deposits, as the case may be, periodic review of such accounts and deposits, measures to prevent fraud in such accounts/deposits, grievance redressal mechanism for expeditious resolution of complaints, steps to be taken for tracing the customers of inoperative accounts/ unclaimed deposits including their nominees/ legal heirs for re-activation of accounts, settlement of claims or closure and the process to be followed by them.
Revised methodology for assessing the systemic importance of banks and identification of the D-SIBs
2. Detailed guidelines as per the revised methodology will be shared in the Guidance Note and Excel Sheet provided to banks included in the annual assessment each year.
Reclassification of MSMEs
For Priority Sector Lending to MSMEs, banks shall be guided by the classification recorded in the Udyam Registration Certificate (URC).
RBI releases Draft Directions on Bond Forwards under Section 45W of the RBI Act, 1934
The Reserve Bank of India has released the Draft Reserve Bank of India (Bond Forwards) Directions, 2023. Comments on the draft directions are invited from banks, market participants, investors and other interested parties by January 25, 2024.
MHP Exemption for Transfer of Receivables by banks
In order to develop secondary market operations of receivables acquired as part of ‘factoring business’ as defined under the Factoring Regulation Act, 2011, has decided that transfer of receivables by eligible transferors will be exempted from Minimum Holding Period requirement.
Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023
RBI has issued the Reserve Bank of India (Financial Benchmark Administrators) Directions, 2023 to put in place a holistic risk-based framework covering all benchmark administrators in financial markets regulated by the Reserve Bank.
‘Draft Omnibus Framework for recognizing Self-Regulatory Organizations for Regulated Entities
The draft omnibus framework contains broad parameters applicable to any Self-Regulatory Organization (SRO) viz., objectives, responsibilities, eligibility criteria, governance standards, application process and other basic conditions for grant of recognition to the SRO. Comments/ feedback from the stakeholders and members of the public on the above draft omnibus framework may be submitted by January 25, 2024, through e-mail.
RBI has enabled Card-on-File Tokenization through Card Issuing Banks
RBI has decided to enable CoFT directly through card issuing banks / institutions. This will provide cardholders with an additional choice to tokenize their cards for multiple merchant sites through a single process.
RBI clarification regarding Investments in Alternative Investment Funds (AIFs)
REs shall not make investments in any scheme of AIFs which has downstream investments either directly or indirectly in a debtor company of the RE. investment by REs in the subordinated units of any AIF scheme with a ‘priority distribution model’ shall be subject to full deduction from RE’s capital funds.
Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023
These regulations aim to bring greater clarity and structure to foreign exchange transactions in India. Businesses engaged in international trade or financial transactions need to align their processes with these new rules to ensure compliance. It’s crucial for entities to understand the nuances of these regulations to avoid legal complications and to facilitate smoother international transactions.
