Connect 2 Regulate

Under the provisions of Banking Regulation Act, 1949, nomination facility is available in respect of deposit accounts, articles kept in safe custody or safe deposit lockers. This is intended to facilitate expeditious settlement of claims or return of articles or release of contents of safe deposit locker upon death of a customer and to minimise hardship caused to family members. The extant instructions require banks to adopt a simplified procedure to facilitate expeditious and hassle-free settlement of claims made by survivors/ nominees/ legal heirs in case of deposit accounts up to a threshold limit, however, the procedures vary across banks. With a view to enhance customer service standards, it has been decided to streamline the procedures and standardise the documentation to be submitted to the banks. Accordingly, Reserve Bank has released today the draft circular in this regard for public consultation.

The Reserve Bank has issued guidelines / instructions / directives from time-to-time governing internet and mobile banking services offered by various categories of banks. These services have evolved significantly since issue of the initial guidelines in 2001 as new and innovative digital channels / platforms have come into use. To facilitate sustainable growth of digital banking services, it has been decided to consolidate, strengthen, and update the existing instructions on use of digital channels for providing banking services including internet and mobile banking services by banks.  The draft Master Directions in this regard are being issued today for stakeholder feedback.

Reserve Bank of India introduced the EDPMS to monitor the realisation of funds against exports in February, 2014. In due course, the flow of shipping bills from the Customs Authority has been automated through ICEGATE and from January, 2022, data from ECCS (Express Cargo Clearance System) also started flowing into EDPMS. Further, postal exports bill data also started flowing into EDPMS from January, 2025.

Please refer to instructions at paragraph 6.1 of the circular captioned Inoperative Accounts/ Unclaimed Deposits in Banks - Revised Instructions, dated January 1, 2024. Reserve Bank has released today the draft circular on Inoperative Accounts/ Unclaimed Deposits in Banks – Revised Instructions (Amendment) 2025 which modifies the aforementioned instructions.

Please refer to instructions on Updation/ Periodic Updation of KYC as contained in paragraph 38 of Master Direction - Know Your Customer (KYC) Direction, 2016 dated February 25, 2016 (as amended from time to time). Reserve Bank has released today the draft circular on Updation/ Periodic Updation of KYC – Revised Instructions which encloses the draft Reserve Bank of India (Know Your Customer (KYC)) (Amendment) Directions, 2025 modifying the aforementioned instructions.

The Banking Regulation (Amendment) Act, 2020 has enabled certain capital related provisions such as issuance of special shares, issuance of shares at a premium, etc., which are new to the co-operative banking sector. The Report of the Expert Committee on Primary (Urban) Co-operative Banks (the Expert Committee), chaired by Shri. N.S. Vishwanathan, former Deputy Governor, RBI, had provided broad guiding principles on these provisions through its recommendations. Thereafter, a Working Group was constituted in RBI to inter alia operationalise the recommendations of the Expert Committee on these newly enabled capital related provisions.

The Reserve Bank had, on December 19, 2023, issued guidelines relating to investment by the regulated entities (REs) in Alternative Investment Funds (AIFs), with the objective of addressing certain concerns relating to possible evergreening through this route. Subsequently, certain clarifications were issued vide circular dated March 27, 2024. On a review, it is observed that the regulatory measures undertaken by the Reserve Bank have brought financial discipline among the REs regarding their investment in AIFs. Meanwhile, SEBI has also issued guidelines requiring inter alia specific due diligence with respect to investors and investments of the AIFs, to prevent facilitation of circumvention of regulatory frameworks. In view of these developments, the Reserve Bank of India has issued the revised draft Directions today for public consultation.

Loans against the collateral of gold jewellery and ornaments are extended by regulated entities (REs) for both consumption and income-generation purposes. Prudential and conduct related regulations for such loans have been issued from time to time and they vary for different categories of REs. With a view to harmonizing such regulations across REs while keeping in view their risk-taking capabilities, and also to address a few concerns that have been observed, it has been decided to issue comprehensive regulations, on prudential norms and conduct related aspects, for such loans. The draft Directions in this regard have been issued for public comments.

The extant guidelines on co-lending are applicable only to arrangements between banks and NBFCs for priority sector loans. In light of the evolution of such lending practices, and the potential of such lending arrangements in catering to the credit needs of a wider segment in a sustainable manner, it has been decided to expand the scope for co-lending and issue a generic regulatory framework for all forms of co-lending arrangements among REs. The draft Directions have been issued for public comments.

A prudentially structured securitisation transaction can be an enabler for resolution of stressed assets as it is expected to improve risk distribution and provide an exit route from such exposures for lenders. With this objective, RBI had released a discussion paper on Securitisation of Stressed Assets Framework in January 2023, to seek comments from market participants on various aspects of the framework. After factoring in the suggestions received from the stakeholders on the discussion paper, the draft Directions for securitisation of stressed assets have been issued for public comments. The framework intends to enable securitisation of stressed assets through a market-based mechanism, in addition to the existing ARC route under SARFAESI Act, 2002.