RBI includes Retail and wholesale Trade under MSME.
The beneficiary segments of the change in norm would be wholesale and retail trade and repair of motor vehicles and motorcycles, wholesale trade except of motor vehicles and motorcycles and retail trade except of motor vehicles and motorcycles.
RBI issues norms on unclaimed maturity proceeds of term deposits.
The new norms are applicable for deposits in all commercial banks, small finance banks, local area banks, and cooperative banks.
RBI extends the Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit.
The extension takes effect from July 01, 2021, and ends on September 30, 2021, covering a period of three months. The scheme, announced in April 2015, gives subsidies on interest provided on pre-and post-shipment export credit varying between 3% and 5% to exporters.
The Interest rate on floating rate saving bonds to remain 7.15 till 31st December 2021.
The interest rate for the next half-year (which is due on July 1, 2021) will reset every six months, the first reset being on January 1, 2021. There is no option to pay interest on cumulative basis. This would mean that once the interest on bonds are due, it will be credited to the investor’s bank account at the same time instead of payable at maturity.
Central Government Approves loan guarantee scheme for COVID affected sectors.
The Scheme would be applicable to all eligible loans sanctioned up to 31.03.2022, or till an amount of Rs. 50,000 crore is sanctioned, whichever is earlier.
RBI clarifies about public document issued on ‘High-Risk Jurisdictions subject to a Call for Action’
The Financial Action Task Force (FATF), vide public document ‘High-Risk Jurisdictions subject to a Call for Action’ dated June 25, 2021, has called on its members and other jurisdictions to refer to the statement on these jurisdictions adopted in February 2020.
RBI issues Guidelines for Managing Risk in Outsourcing of Financial Services by Co-operative Banks.
The co-operative banks shall consider all relevant laws, regulations, guidelines and conditions of approval, licensing or registration when performing its due diligence in relation to outsourcing.
The Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021
The revised prudential borrowing limits for transactions in Call, Notice and Term Money Markets provides that Scheduled Commercial Banks (including Small Finance Banks), Payment Banks and Regional Rural Banks shall be 100% of capital funds on a daily average basis in a reporting fortnight, and 125% of capital funds on any given day.
RBI has extended the validity of Entrepreneurs Memorandum and Udyog Aadhaar Memorandum till 31st December 2021.
The aim is to facilitate the holders of EM Part-II and UAMs to avail benefits of the provisions under various existing schemes and incentives including Priority Sector Lending benefits of MSME.
IFSCA issues Guidelines on liquidity risk management for a finance unit.
The FC/FU shall have a liquidity risk management framework in order to ensure a sound and robust liquidity risk management system and ensure that it maintains sufficient liquidity.
