RBI issues Master Circular on Bank Finance to Non-Banking Financial Companies (NBFCs).
The ceiling on bank credit linked to Net Owned Fund (NOF) of NBFCs has been withdrawn in respect of all NBFCs which are statutorily registered with RBI and are engaged in principal business of asset financing, loan, factoring and investment activities.
RBI releases Framework for Facilitating Small Value Digital Payments in Offline Mode.
The framework allowing offline payments up to Rs 200 per transaction, subject to an overall limit of Rs 2,000. Under this new framework, such payments can be carried out face-to-face (proximity mode) using any channel or instrument like cards, wallets, mobile devices, etc. Such transactions would not require an Additional Factor of Authentication (AFA). Since the transactions are offline, alerts (by way of SMS and / or e-mail) will be received by the customer after a time lag.
RBI Working Paper on an Alternative Perspective on Demand and Supply to Forecast Inflation
The paper develops a new method to construct a measure of demand-supply imbalance in the economy using a Bayesian Dynamic Factor Model.
Authorized non-bank payment aggregators and merchants on-boarded by them may store CoF till June 30, 2021
In addition to tokenisation, industry stakeholders may devise alternate mechanism(s) to handle any use case (including recurring e-mandates, EMI option, etc.) or posttransaction activity (including chargeback handling, dispute resolution, reward / loyalty programme, etc.) that currently involves / requires storage of CoF data by entities other than card issuers and card networks.
Steps taken by Government to improve flow of credit to MSME sector.
The Reserve Bank of India in its earlier circular, has allowed Scheduled Commercial Banks (SCBs) to deduct the amount equivalent to credit disbursed to New Micro Small and Medium Enterprises (MSMEs), who have not availed any credit facilities from banking_system as on 01.01.2021, from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR).
RBI releases ‘Draft Master Direction on Minimum Capital Requirements for Operational Risk’
These direction shall come into effect from April 1, 2023 and all existing approaches viz. Basic Indicator Approach (BIA), The Standardised Approach (TSA)/ Alternative Standardised Approach (ASA) and Advanced Measurement Approach (AMA) for measuring minimum operational risk capital requirements shall be replaced by the new standardised approach (Basel III Standardised Approach).
Cabinet approves an incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions.
This scheme will facilitate acquiring Banks in building robust digital payment ecosystem and promoting RuPay Debit card and BHIM-UPI digital transactions, across all sectors and segments of the population and further deepening of digital payments in the country.
RBI introduces prompt corrective Action (PCA) Framework for non-banking financial companies.
The objective of the PCA Framework is to enable Supervisory intervention at appropriate time and require the Supervised Entity to initiate and implement remedial measures in a timely manner, so as to restore its financial health. The PCA Framework is also intended to act as a tool for effective market discipline.
RBI introduces Legal Entity Identifier for Cross-border Transactions.
The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide to improve the quality and accuracy of financial data systems. LEI has been introduced by the Reserve Bank in a phased manner for participants in the over the counter (OTC) derivative, non-derivative markets, large corporate borrowers and large value transactions in centralised payment systems.
RBI grants permission for infusion of capital in overseas branches and subsidiaries and retention/ repatriation/ transfer of profits in these centres by banks incorporated in India.
This circular is applicable to all Scheduled Commercial Banks other than foreign banks, Small Finance Banks, Payment Banks and Regional Rural Banks.
