RBI has issued Statement on Developmental and Regulatory Policies. This Statement sets out various developmental and regulatory policy measures relating to (i) Regulations; and (ii) Payment Systems and FinTech.
I. Regulations
- Review of Limit of Bulk Deposits for Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, and Local Area Banks
The Reserve Bank of India (RBI) is set to revise the definition of bulk deposits for Scheduled Commercial Banks (SCBs) (excluding Regional Rural Banks), Small Finance Banks (SFBs), and Local Area Banks. Banks have the discretion to offer differential interest rates on bulk deposits based on their requirements and Asset-Liability Management (ALM) projections. In 2019, the limit for bulk deposits was enhanced to ‘Single Rupee term deposits of ₹2 crore and above’ for SCBs (excluding RRBs) and SFBs. Upon review, it is now proposed to redefine bulk deposits as ‘Single Rupee term deposits of ₹3 crore and above’ for SCBs (excluding RRBs) and SFBs. For Local Area Banks, the bulk deposit limit will be set at ‘Single Rupee term deposits of ₹1 crore and above,’ similar to RRBs. The necessary guidelines will be issued shortly. - Rationalisation of Export and Import Regulations under FEMA, 1999
In line with the progressive liberalisation under the Foreign Exchange Management Act (FEMA) 1999, the RBI aims to impart greater operational flexibility to Authorized Dealer banks by rationalising existing guidelines on the export and import of goods and services. This rationalisation seeks to simplify operational procedures, promoting ease of doing business for all stakeholders. Draft regulations and directions will be published on the RBI’s website by the end of June 2024, inviting feedback from stakeholders before finalisation.
II. Payment Systems and FinTech
- Setting up a Digital Payments Intelligence Platform
To ensure the safety and security of digital payments and maintain public confidence, the RBI proposes to establish a Digital Payments Intelligence Platform. This platform will use advanced technologies to mitigate payment fraud risks, facilitating real-time data sharing and network-level intelligence across payment systems. A committee, chaired by Shri A.P. Hota, former MD & CEO of NPCI, has been constituted to examine the various aspects of setting up this platform. The committee will provide recommendations within two months. - Inclusion of Recurring Payments for Fastag, NCMC, etc. with Auto-Replenishment Facility under the E-Mandate Framework
The RBI’s e-Mandate framework, issued on January 10, 2020, enables recurring payments with fixed periodicity. It is now proposed to include payments such as replenishment of balances in Fastag, NCMC, etc., which are recurring but without fixed periodicity, into the e-Mandate framework. An automatic replenishment facility will be introduced for such payments when the balance falls below a customer-set threshold. The current requirement of a pre-debit notification at least 24 hours before the actual debit will be exempted for these payments. Necessary guidelines will be issued shortly. - Introducing Auto-Replenishment of UPI Lite Wallet – Inclusion under the E-Mandate Framework
To enhance the seamless use of the UPI Lite facility, the RBI proposes to include UPI Lite within the e-Mandate framework by introducing an auto-replenishment facility. This facility will allow automatic loading of the UPI Lite wallet when the balance falls below a customer-set threshold. The requirement of additional authentication or pre-debit notification will be dispensed with, as funds remain with the customer. Guidelines for this proposal will be issued shortly.
