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.
Banking shall continue to be treated as a public utility service
The Banking industry shall be a public utility service for the purposes of the Industrial Disputes Act for a period of six months with effect from the 15th December, 2023.
RBI relaxations for Processing of e-mandates for recurring transactions
RBI has permitted Additional Factor of Authentication (AFA) while processing e-mandates/standing instructions on cards, Prepaid Payment Instruments and Unified Payments Interface, for subsequent recurring transactions with values up to one lakh.
RBI Cautions against unauthorised campaigns on Loan waiver
There are reports of such entities charging a service/legal fee for issuing ‘debt waiver certificates’ without any authority. Members of the public are cautioned not to fall prey to such false and misleading campaigns and report such incidents to law enforcement agencies.
RBI lists reporting entities permitted to perform authentication under the Aadhaar Act for the purposes of the Money laundering Act
Central Government, in consultation with the Unique Identification Authority of India and the Reserve Bank of India, has listed reporting entities permitted to perform authentication under the Aadhaar Act for the purposes of the Money laundering Act.
Reserve Bank of India and Bank of England sign a Memorandum of Understanding on cooperation and exchange of information related to Clearing Corporation of India Limited
This MoU confirms the interests of both the authorities in enhancing cooperation in line with their respective laws and regulations. It will also enable the BoE to assess the application of CCIL for recognition as a third country Central Counterparty (CCP) which is a pre-requisite for UK based banks to clear transactions through CCIL.
