RBI notifies statement on developmental and regulatory policies.
RBI proposes to issue draft Reserve Bank of India (Managing Risks and Code of Conduct in Outsourcing of Financial Services) Directions, 2022, for public comments shortly. The scope of these Directions is being expanded to also include RRBs, Local Area Banks (LABs), All India Financial Institutions, Credit Information Companies, and non-scheduled Payments Banks.
Master Direction on External Commercial Borrowings, Trade Credits and Structured Obligations
This Master Direction has been issued to lay down the modalities as to how the foreign exchange business has to be conducted by Authorized Persons [under the Foreign Exchange Management Act (FEMA), 1999], with their customers/constituents to implement the regulations framed thereunder.
Master Directions-Priority Sector Lending (PSL)- Targets and Classification
The Master Directions aims to ensure that the lending policies are aligned with national priorities and are environment friendly to help achieve Sustainable Development Goals (SDGs).
Master Circular on Credit Facilities to Minority Communities
It mandates the setting up of special cell and designating an exclusive officer in each bank to ensure smooth flow of credit to minority communities.
External Commercial Borrowings (ECB) Policy – Liberalisation Measures
Eliigible ECB borrowers are allowed to raise External Commercial Borrowings (ECB) up to USD 750 million or equivalent per financial year under the automatic route.
The Foreign Exchange Management (Borrowing and Lending) (Third Amendment) Regulations, 2022.
Through this amendment, RBI has temporarily increased the borrowing limit of USD 750 million or equivalent per financial year to USD 1500 million or equivalent.
RBI notifies restriction on storage of actual card data.
Based on review of the issues involved and after detailed discussions with all stakeholders, RBI has advised that there shall be no change in the effective date of implementation of the requirements – all entities, except card issuers and card networks, shall purge the CoF data before October 1, 2022.
RBI extends the timeline for submission of applications for authorisation by payment aggregators.
Keeping in view the disruption caused by the COVID-19 pandemic, and to ensure smooth functioning of the payments ecosystem, it has since been decided to allow another window to all such PAs (existing as on March 17, 2020) to apply to RBI. They can apply by September 30, 2022 and shall have a net worth of ₹15 crore as on March 31, 2022. They shall be permitted to continue their operations till they receive communication from RBI regarding the fate of their application. The timeline of March 31, 2023 for achieving the net worth of ₹25 crore shall, however, remain.
RBI publishes updated master direction on Lending to Micro, Small & Medium Enterprises (MSME) Sector.
Classification of Enterprises in case of upward /downward migration: In case of an upward change in terms of investment in plant and machinery or equipment or turnover or both, and consequent re-classification, an enterprise will maintain its prevailing status till expiry of one year from the close of the year of registration.
FAQ on Regulatory Framework for Microfinance Loans
Lender is required to provide a loan card to the borrower in a language understood by the borrower which should have following information: Information which adequately identifies the borrower, Simplified factsheet on pricing, All other terms and conditions attached to the loan, Acknowledgements by the lender of all repayments including instalments received and the final discharge, and Details of the grievance redress system, including the name and contact number of the nodal officer of the lender.
