Master Circular for Investments by Primary (Urban) Co-operative Banks
The Master Circular provides that the total investments of a co-operative bank in the shares of co- operative institutions shall not exceed 2 per cent of its owned funds (paid-up share capital and reserves). The investment of a bank in the shares of any one co-operative institution shall not exceed 5 per cent of the subscribed capital of that institution.
RBI publishes Reserve Bank of India (Market-makers in OTC Derivatives) Directions, 2021.
The policy for introduction of new over the counter (OTC) derivative products shall, inter-alia, include the process for evaluation and approval of new products. All new products shall be approved by the Board of Directors.
Non-Bank Entity recognized as a custodian by IFSCA permitted to become a clearing member.
Any non-bank entity recognized as a custodian of assets/securities by IFSCA through the branch structure, shall be permitted to become a Clearing Member of a Clearing Corporation in GIFT-IFSC
RBI notifies Application form for Aadhar e-KYC Authentication License
In terms of Section 11A of the Prevention of Money Laundering Act (PMLA), 2002, the government through a notification may permit entities other than banking firms to authenticate client’s Aadhaar number using the e-KYC facility provided by the Unique Identification Authority of India (UIDAI). However, the notification shall be issued only after consulting with the UIDAI and the appropriate regulator.
RBI revises the Large Exposures Framework.
Through this revised framework it has been decided to permit foreign banks to exclude derivative contracts executed prior to April 1, 2019 while computing the derivative exposures on their Head Office (including overseas branches).
The Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2021.
Through this amendment regulation 15 which deals with advance payment against exports has been amended.
RBI enhances the framework on card tokenisation services to reinforce the safety and security of card data.
The RBI had earlier permitted ‘tokenisation’ services, under which a unique alternate code is generated for transaction purposes, on mobile phones and tablets of cardholders.
RBI publishes details of General Allocation of Special Drawing Rights by the IMF
IMF makes the general SDR allocation to its members in proportion to their existing quotas in the Fund. The Board of Governors of the IMF had approved a general allocation of about SDR 456 billion on August 2, 2021 (effective from August 23, 2021) of which the share of India is SDR 12.57 billion.
Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021
Banks are directed to take prior approval from the Reserve Bank of India before any appropriation is made from the Statutory Reserve or any other reserve.
RBI amends the Guidelines on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff of banks
It is clarified that share-linked compensation shall be recognized as expense beginning with the accounting period for which approval has been granted.
