Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill, 2021
The Deposit Insurance and Credit Guarantee Corporation Act, 1961 is being amended to enable easy and time-bound access by depositors to their own money, even when there are restrictions on banks. It is proposed to provide that even if a bank is temporarily unable to fulfil its obligations due to restrictions such as moratorium imposed on it, depositors can access their deposits to the extent of deposit insurance cover through interim payments by the Corporation.
Enhancement of collateral free loans to Self Help Groups (SHGs)
For loans to SHGs up to ₹10.00 lakh, no collateral and no margin will be charged. No lien should be marked against savings bank account of SHGs and no deposits should be insisted upon while sanctioning loans.
RBI Statement on Developmental and Regulatory Policies
Banks are allowed to avail of funds under the marginal standing facility (MSF) by dipping into the Statutory Liquidity Ratio (SLR) up to an additional one per cent of net demand and time liabilities (NDTL), i.e., cumulatively up to 3 per cent of NDTL, for a further period of three months, i.e., up to December 31, 2021.
RBI issues guidelines on opening of current account by banks.
As per the new guidelines, RBI has given banks time until 31st October 2021 to implement the new rules on current accounts issued in 2020. The regulator had previously set a deadline of 31 July.
RBI provides that penal interest for excess put through/ double claim amount may be levied by State Government
The penal interest period for such double claim/excess put through may start from the date on which the agency bank has received the excess put through / double claim amount and up to previous date to actual date of return of such excess put through / double claim amount by agency banks to concerned state government account (excluding the date of return of such excess payment/double claim amount by the agency banks to government account(s).
Accounting Standard to be followed by IFSC Banking Units (IBUs)
The IBUs whose parent banks are following the IFRS, may prepare their standalone financial statements also as per the IFRS, from the beginning of the quarter / half-year starting from October 1, 2021.
RBI issues framework for Outsourcing of Payment and Settlement-related Activities by Payment System Operators (PSO).
The framework is not applicable to activities other than those related to payment and/or settlement services, such as internal administration, housekeeping or similar functions.
RBI has enlisted the names of credit rating agencies for the purpose of accepting public deposits by HFCs
RBI has enlisted the names of credit rating agencies and their minimum investment grade ratings for the purpose of accepting public deposits by HFCs.
RBI allows non-bank to participate in Centralised payment system.
Non-banks include entities like Payment System Providers (PSPs) and Non-Banking Financial Companies (NBFCs) that are regulated by Reserve Bank as also entities that are under the remit of other financial sector regulators like PFRDA, IRDAI, SEBI, etc.
Revised restrictions on loans and advances issued by banks
The amendment provides that unless sanctioned by the Board of Directors/Management Committee, banks should not grant loans and advances aggregating Rupees five crore and above to relatives of directors.
