Reserve Bank of India (Bond Forwards) Directions, 2023 - Draft In exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 (hereinafter called the Act) read with section 45U of the Act, the Reserve Bank of India (hereinafter called the Reserve Bank) hereby issues the following Directions.

 Section 3(a) of Foreign Exchange Management Act, 1999 (‘’FEMA’’) stipulates:

‘Save as otherwise provided in this Act, rules or regulations made thereunder, or with the general or special permission of the Reserve Bank, no person shall deal in or transfer any foreign exchange or foreign security to any person not being an authorised person.’

Further, section 10(1) of FEMA, 1999 stipulates:

‘The Reserve Bank may, on an application made to it in this behalf, authorise any person to be known as authorised person to deal in foreign exchange or in foreign securities, as an authorised dealer, money changer or off-shore banking unit or in any other manner as it deems fit.’

2. The Reserve Bank issues authorisation in the form of a licence to Authorised Persons (APs), which includes authorised dealers and Full-Fledged Money Changers (FFMCs). Authorisation is also granted to select institutions to carry out specific foreign exchange transactions related to their business activities.

Draft Master Direction for Comments  All Commercial Banks (including Local Area Banks, Regional Rural Banks, Payments Banks, and Small Finance Banks) All-India Financial Institutions (viz. Exim Bank, NABARD, NHB, SIDBI, and NaBFID) All Non-Banking Financial Companies including Housing Finance Companies (HFCs) All Urban Co-operative Banks, State Co-operative Banks, and Central Co-operative Banks All Credit Information Companies

DoR.SIG.FIN.REC.xx/20.16.003/2023-24

September 21, 2023

Reserve Bank of India
(Treatment of Wilful Defaulters and Large Defaulters) Directions, 2023

In exercise of the powers conferred under Chapter III-A of the Reserve Bank of India Act, 1934, Section 21, Section 35-A read with Section 56 of the Banking Regulation Act, 1949 and Section 11 of the Credit Information Companies (Regulation) Act, 2005, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest to do so, hereby, issues the Directions hereinafter specified:

Objective

The primary objective of these Directions is to provide for a non-discriminatory and transparent procedure, while complying with the principles of natural justice for classifying a borrower as a wilful defaulter by the lenders. The directions also aim to put in place a system to disseminate credit information about wilful defaulters for cautioning lenders to ensure that further institutional finance is not made available to them.

CHAPTER I
PRELIMINARY

1. Short Title and Commencement

(1) These Directions shall be called the Reserve Bank of India (Treatment of Wilful Defaulters and Large Defaulters) Directions, 2023.

(2) These Directions shall come into force after 90 days from placing it on the website of the Reserve Bank.

2. Applicability

(1) The provisions regarding wilful defaulters contained in these Directions shall apply to the ‘lenders’ as defined in these Directions.

(2) Asset Reconstruction Companies (ARCs), and Credit Information Companies (CICs) shall be bound by these Directions only with regard to the reporting requirements contained in Chapter III.

(3) The restrictions on further financial accommodation to wilful defaulters shall apply to all entities regulated by the Reserve Bank, irrespective of whether they fall within the definition of ‘lender’ as provided in these Directions or not.

(4) The provisions regarding large defaulters contained in these Directions shall apply to all entities regulated by the Reserve Bank, irrespective of whether they fall within the definition of ‘lender’ as provided in these Directions or not.

3. Definitions

(1) In these Directions, unless the context or subject otherwise requires, -

(a) “All India Financial Institution (AIFI)”1 means -

1. Export Import Bank of India (EXIM Bank);

2. National Bank for Agriculture and Rural Development (NABARD);

3. National Housing Bank (NHB);

4. Small Industries Development Bank of India (SIDBI); and

5. National Bank for Financing Infrastructure and Development (NaBFID).

(b) “bank” means -

Draft Circular for Comments CO.DPSS.POLC.No. S-**** /02-14-003/2023-24 July 05, 2023 The Chairman / Managing Director / Chief Executive Officer Authorised Payment System Providers / Participants (Banks and Non-banks) Madam / Dear Sir, Draft Circular - Arrangements with Card Networks for issue of Debit, Credit and Prepaid Cards The authorised card networks1 tie-up with banks / non-banks for issuance of debit / credit / prepaid cards. The choice of affiliated network2 f

Draft Master Directions for Comments CO.DPSS.OVRST.No.xx / xxxx / 2023-24 June 02, 2023 The Chairman / Managing Director / Chief Executive Officer Authorised Non-bank Payment System Operators Madam / Dear Sir, Draft Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators Ensuring safety and security of payment systems is a key objective of the Reserve Bank. To ensure that the authorised non-bank Payment System Operators

इन दिशानिर्देशों की विषयवस्तु को भारतीय रिज़र्व बैंक बैंकिंग कंपनियों में शेयरों अथवा मताधिकारों का अधिग्रहण तथा धारिता) निदेश, 2023 और बैंककारी विनियमन अधिनियम, 1949 के लागू प्रावधानों के साथ पढ़ा जाएगा। किसी बैंकिंग कंपनी में शेयरों या मताधिकारों के अधिग्रहण के लिए पूर्व स्वीकृति 2. बैंककारी विनियमन अधिनियम, 1949 की धारा 12 बी की उप-धारा (1) के अनुसार, प्रत्येक व्यक्ति, जो शेयर या मताधिकार प्राप्त करना चाहता है और एक बैंकिंग कंपनी का प्रमुख शेयरधारक1 बनना चाहता है, उसे रिज़र्व बैंक का पूर्व अनुमोदन प्राप्त करना आवश्यक है।