Cabinet approves Interest subvention of 1.5% per annum on Short Term Agriculture Loan upto Rupees Three lakh.
An increase in Interest Subvention will ensure sustainability of credit flow in the agriculture sector as well as ensure financial health and viability of the lending institutions especially Regional Rural Banks & Cooperative Banks, ensuring adequate agriculture credit in rural economy.
RBI notifies responsibilities of regulated entities employing recovery agents
The extant guidelines on permissible hours for calling borrowers on phone for recovery purpose are currently specified in respect of Housing Finance Companies and REs extending microfinance loans.
RBI amends Gold Monetization Scheme, 2015
Guidelines for Renewal/Redemption of Medium- and Long-Term Government Deposit (MLTGD) are included. It clearly lays down that premature redemption of MLTGD shall only be in INR, while redemption of principal at maturity shall, at the option of the depositor, be either in Indian Rupee equivalent of the value of deposited gold at the time of redemption, or in gold.
RBI notifies amendments to Prudential Guidelines on Bilateral netting of qualified financial contracts.
For Credit Default Swaps where the bank is the protection seller and that are outside netting and margin agreements, the exposure may be capped to the amount of premium unpaid. Banks have the option to remove such credit derivatives from their legal netting sets in order to apply the cap.
Clarification regarding Implementation of Recommendations of the Working group on Digital Lending
All loan disbursals and repayments are required to be executed only between the bank accounts of borrower and the RE without any pass-through/ pool account of the LSP or any third party.
RBI notifies eligibility norms for Small Finance Banks for Authorised Dealer Category-I.
The eligible SFBs may approach Foreign Exchange Department, Central Office, Reserve Bank of India with their applications along with the supporting documents with regard to their eligibility and a copy of applicant’s banking license and Necessary Board resolution for conducting the activities permitted to an Authorised Dealer Category-I and for obtaining necessary authorisation from the Reserve Bank under section 10(1) of FEMA 1999 for grant of Authorised Dealer Category-I license.
RBI reviews Rupee Interest Rate Derivatives Directions.
Banks in India were permitted, in February 2022, to undertake transactions in the offshore Foreign Currency Settled Overnight Indexed Swap (FCS-OIS) market with non-residents and other market makers with a view to removing the segmentation between onshore and offshore OIS markets and improving the efficiency of price discovery. Standalone Primary Dealers (SPDs) are also market-makers, like banks, in the onshore OIS market. It has now been decided that SPDs authorized under section 10(1) of FEMA,1999 will also be permitted to undertake FCS-OIS transactions directly with non-residents and other market-makers. Necessary directions will be issued shortly.
Measures taken by the Government to protect the interest of investors/account holders in the bank.
The deposit insurance cover of ₹5 lakh is applicable uniformly to all insured banks and their depositors, and is payable to any depositor in respect of deposits held by him/ her in the same right and same capacity at all the branches of an insured bank taken together, in case of liquidation/ failure of a bank.
RBI includes CICs under the scope of the Integrated Ombudsman Scheme, 2021
The RBIOS 2021 shall also be applicable to Credit Information Companies to the extent not specifically excluded under it.
RBI increases policy Repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis.
Consequently, the standing deposit facility (SDF) rate and marginal standing facility (MSF) rate stand adjusted to 5.15 per cent and 5.65 per cent respectively which was decided by the Monetary Policy Committee (MPC). The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting
