RBI enables Bharat Bill Payment System (BBPS) to process cross-border inbound Bill Payments
It has been decided to allow foreign inward remittances received under the Rupee Drawing Arrangement (RDA), to be transferred to the KYC compliant bank account of the biller (beneficiary) through Bharat Bill Payment System (BBPS), through electronic mode, such as, NEFT, IMPS.
Alert List of entities which are not authorized to deal in forex and to operate electronic trading platforms for forex transactions
Members of the public are once again cautioned not to undertake forex transactions on unauthorised ETPs or remit/deposit money for such unauthorised transactions. Resident persons undertaking forex transactions for purposes other than those permitted under the FEMA or on ETPs not authorized by the RBI shall render themselves liable for legal action under the FEMA.
Revised Prudential Norms for Credit Guarantee Schemes (CGS)
The revised scheme provides that where the terms of the guarantee schemes restrict the maximum permissible claims through features like specified extent of guarantee coverage, clause on first loss absorption by member lending institutions (MLI), payout cap, etc., the zero percent risk weight shall be restricted to the maximum permissible claim.
RBI issues notification on incentives for improving service to non-chest branches.
However, through this notification, it has been clarified that the amount levied on cash deposited by non-chest bank branches to the Currency Chests are exclusive of applicable taxes.
Pilot project for end-to-end digitalisation of Kisan Credit Card (KCC) lending
The pilot will commence in September 2022 in select districts of Madhya Pradesh and Tamil Nadu with Union Bank of India and Federal Bank, respectively, as partner banks and with active cooperation of the state governments.
RBI notifies guidelines on Digital Lending.
REs shall communicate to the borrower, at the time of sanctioning of the loan and also at the time of passing on the recovery responsibilities to an Lending Service Provider (LSP) or change in the LSP responsible for recovery, the details of the LSP acting as recovery agent who is authorised to approach the borrower for recovery.
RBI re-issues Master Direction on Liberalized Remittance Scheme
The Master Direction provides that the received/realized/unspent/unused foreign exchange, unless reinvested, shall be repatriated and surrendered to an authorized person within a period of 180 days from the date of such receipt/ realization/purchase/acquisition or date of return to India, as the case may be.
RBI notifies Foreign Exchange Management (Overseas Investment) Regulations, 2022.
An Indian entity may lend or invest in any debt instruments issued by a foreign entity subject to the condition that such loans are duly backed by a loan agreement where the rate of interest shall be charged on an arm’s length basis.
Reserve Bank of India releases Discussion Paper on Charges in Payment Systems.
The discussion paper covers all aspects relating to charges in payment systems [such as Immediate Payment Service (IMPS), National Electronic Funds Transfer (NEFT) system, Real Time Gross Settlement (RTGS) system and Unified Payments Interface (UPI)] and various payment instruments [such as debit cards, credit cards and Prepaid Payment Instruments (PPIs)], etc. The feedback received would be used to guide policies and intervention strategies.
Cabinet approves enhancement in the corpus of Emergency Credit Line Guarantee Scheme for increasing the limit of admissible guarantees.
The ECLGS was launched by the Government of India as a special scheme in view of COVID-19 crisis, to provide 100% guarantee coverage to banks and NBFCs to enable them to extend emergency credit facilities to business enterprises/MSMEs to meet their additional term loan/additional working capital requirements.
