RBI extends the bank’s priority sector lending facility through NBFCs till 31st March.
The Loans disbursed under the on-lending model will continue to be classified under Priority Sector till the date of repayment/maturity whichever is earlier.
RBI notifies the Statement on Developmental and Regulatory Policies.
RBI has extended the tap on Special Long-Term Repo Operations (SLTRO) for small finance banks (SFBs) till 31st December 2021.A three-year SLTRO facility of ₹10,000 crore at the repo rate was made available to SFBs in May 2021 to be deployed for fresh lending of up to ₹10 lakh per borrower.
Value Free Transfer (VFT) of Government Securities Guidelines
Eligible VFTs and permitted VFTs can be initiated through Core Banking System of RBI viz., e-Kuber. The VFTs so undertaken shall be subject to concurrent audit by SGL/CSGL holders on a 100% sampling basis. The auditor shall verify that the transactions comply with the guidelines and any deviations may be brought to notice of the Bank by the SGL/CSGL holders immediately.
RBI notifies Master Circular on Prudential Norms on Income Recognition.
Banks are urged to ensure that while granting loans and advances, realistic repayment schedules may be fixed on the basis of cash flows with borrowers. This would go a long way to facilitate prompt repayment by the borrowers and thus improve the record of recovery in advances.
The Insolvency and Bankruptcy Board of India (Liquidation Process) (Second Amendment) Regulations, 2021.
The liquidator may conduct multiple rounds of auctions to maximize the realization from the sale of the assets, and to promote the best interests of the creditors.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2021.
The committee and members of the committee shall discharge functions and exercise powers under the Code and these regulations in respect of corporate insolvency resolution process in compliance with the guidelines as may be issued by the Board.
Redemption Price for Premature redemption of Sovereign Gold Bond Scheme (SGB)
The redemption price for the premature redemption due on September 29 and 30, 2021 shall be ₹4652/- (Rupees Four thousand six hundred fifty-two only) per unit of SGB based on the simple average of closing gold price for the week September 20-24, 2021.
RBI allows use of any Alternative reference rate in place of LIBOR in export/import
In view of the impending cessation of LIBOR as a benchmark rate, it has been decided to permit AD banks to use any other widely accepted/Alternative reference rate in the currency concerned for such transactions.
RBI publishes master direction for securitisation of standard assets.
The total exposure of an originator to the securitisation exposures belonging to a particular securitisation structure or scheme should not exceed 20% of the total securitisation exposures created by such structure or scheme.
RBI publishes master direction on Transfer of Loan Exposures.
The lenders must put in place a comprehensive Board-approved policy for transfer and acquisition of loan exposures under these guidelines. These guidelines must, inter alia, lay down the minimum quantitative and qualitative standards relating to due diligence, valuation, requisite IT systems for capture, storage and management of data, risk management, periodic Board level oversight, etc.
