All complaints involving ‘deficiency in service’ on the part of the RE, except for those listed under Question 14 below are handled under the RB-IOS, 2021. ‘Deficiency in service’ has been defined in RB-IOS, 2021 as ‘any shortcoming or inadequacy in any financial service, which the Regulated Entity of RBI is required to provide statutorily or otherwise, which may or may not result in financial loss or damage to the customer’.

ಉತ್ತರ. ಬಿಎಸ್ಬಿಡಿಎಯಿಂದ ಹಿಂಪಡೆತಗಳ ಸಂಖ್ಯೆಯು ಅಂತಹ ಖಾತೆಗಳೊಂದಿಗಿನ ನಿಬಂಧನೆಗಳಿಗೆ ಒಳಪಟ್ಟಿರುವುದರಿಂದ ಮೇಲಿನವು ಬಿಎಸ್ಬಿಡಿಎಗೆ ಅನ್ವಯಿಸುವುದಿಲ್ಲ.

Banks may be guided by para 3.2.3 of the Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated April 1, 2023, as per which in respect of NPAs, fees, commission and similar income that have accrued should cease to accrue in the current period and should be reversed with respect to past periods, if uncollected. Accordingly, in respect of NPA accounts, penal charges shall be reversed to the extent it remains uncollected for the specific purpose of non-recognition of income. However, the same shall be part of the total liability of the borrower to the lender, unless it is waived as per the bank’s Board approved policy.

Response: Banks and the CPTCs/GMCTAs may put in place a mutually acceptable procedure in this regard and notify that to the relevant CPTCs/GMCTAs.

With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSME units, payments have to be made by the buyers as under:

(i) The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days.

(ii) If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.

(iii) For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at (ii) above.

(iv) In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government.

Further, banks are advised to fix sub-limits within the overall working capital limits to the large borrowers specifically for meeting the payment obligation in respect of purchases from MSMEs. (Refer circular  IECD/5/08.12.01/2000-01 dated October 16, 2000 reiterated on May 30, 2003, vide circular No. IECD.No.20/08.12.01/2002-03).

Ans. The exemption provided by the Reserve Bank to ‘Not for Profit’ companies (i.e., companies incorporated under Section 8 of the Companies Act, 2013 or Section 25 of the Companies Act, 1956) is applicable to those which are providing microfinance loans as defined in the directions and subject to conditions specified in para 2(i) of our ‘Master Direction – Exemptions from the provisions of RBI Act, 1934’ dated August 25, 2016 (as amended from time to time). This exemption is not applicable to other ‘Not for Profit’ companies engaged in NBFI business and it is incumbent upon such companies to obtain a certificate of registration under Section 45-IA of the Reserve Bank of India Act, 1934 in case these companies are fulfilling the ‘Principal Business Criteria’ as specified in our Press Release 1998-99/1269 dated April 08, 1999.

Ans. Cash withdrawal or funds transfer from these two types of Small PPIs is not permitted.

ಹೌದು. ನಿಗದಿಸಲ್ಪಟ್ಟ ಕನಿಷ್ಠ ಸೇವೆಗಳಲ್ಲದೆ ಹೆಚ್ಚಿನ ಸೇವೆಗಳನ್ನು ನೀಡುವುದನ್ನು ಬ್ಯಾಂಕುಗಳ ವಿವೇಚನೆಗೆ ಬಿಡಲಾಗಿದೆ ಅವರು ಹೆಚ್ಚಿನ ಸೇವೆಗಳನ್ನು ಉಚಿತವಾಗಿ ನೀಡಬಹುದು ಅಥವಾ ಹೆಚ್ಚಿನ ಮೌಲ್ಯವರ್ಧಿತ ಸೇವೆಗಳಿಗೆ ವಿಧಿಸುವ ಶುಲ್ಕದ ಬಗ್ಗೆ ಅವಶ್ಯಕತೆಗಳನ್ನು ನಿರ್ಮಿಸಿ, ಸಮಂಜಸವಾದ, ಪಾರದರ್ಶಕವಾದ ಮತ್ತು ತಾರತಮ್ಯವಲ್ಲದ ರೀತಿಯಲ್ಲಿ, ಗ್ರಾಹಕರಿಗೆ ಮುನ್ಸೂಚನೆ ಕೊಟ್ಟು, ನೀಡಬಹುದು. ಮೌಲ್ಯವರ್ಧಿತ ಸೇವೆಗಳಿಗೆ ವಿಧಿಸುವ ಶುಲ್ಕದ ವಿಷಯವಾಗಿ ಸಮಂಜಸವಾದ ಶುಲ್ಕಪಟ್ಟಿಯನ್ನು ಅಥವಾ ಕನಿಷ್ಠ ಬ್ಯಾಲೆನ್ಸ್ ಅವಶ್ಯಕತೆಯನ್ನು ರಚಿಸಿ, ಅದನ್ನು ಸರಿಯಾಗಿ ಕಾಣುವಂತೆ ಪ್ರದರ್ಶಿಸಬೇಕು ಮತ್ತು ಖಾತೆ ತೆರೆಯುವಾಗ ಗ್ರಾಹಕರಿಗೆ ತಿಳಿಸಬೇಕು. ನೀಡುವ ಅಂತಹ ಕೊಡುಗೆಗಳು 'ಬೇಸಿಕ್ ಸೇವಿಂಗ್ಸ್ ಬ್ಯಾಂಕ್ ಡಿಪೋಸಿಟ್ ಅಕೌಂಟ್' ಗ್ರಾಹಕರಿಗೆ ತಾರತಮ್ಯರಹಿತ ಹಾಗೂ ವಿವೇಚನಾಯುಕ್ತವಾಗಿದ್ದು, ಪಾರದರ್ಶಕತೆಯಿಂದ ಕೂಡಿರಬೇಕು. ಆದಾಗ್ಯೂ ಅಂತಹ ಹೆಚ್ಚಿನ ಸೌಲಭ್ಯಗಳನ್ನು ಹೊಂದಿರುವ ಖಾತೆಗಳನ್ನು ಬಿಎಸ್ಬಿಡಿಎಗಳೆಂದು ಪರಿಗಣಿಸಲಾಗದು.

Ans : User institutions enjoy many advantages as well. For instance,

• Savings on administrative machinery and costs of printing, dispatch and reconciliation of paper instruments that would have been used had beneficiaries not opted for ECS Credit.

• Avoid chances of loss / theft of instruments in transit, likelihood of fraudulent encashment of paper instruments, etc. and subsequent correspondence / litigation.

• Efficient payment mode ensuring that the beneficiaries get credit on a designated date.

• Cost effective.

Residents are permitted to hold foreign currency up to US$2,000 or its equivalent provided the foreign exchange was -

1. acquired by him while on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India;

or

2. acquired by him, from any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in settlement of any lawful obligation,

or

3. acquired by him by way of honorarium or gift while on a visit to any place outside India;

or

4. acquired by him from an authorised person for travel abroad and represents the unspent amount thereof.

Once the GAH is granted access to the NDS-OM Web Module, the Primary Member can create Users under the GAH, who can log into the system. The users once created by the Primary Member have to be approved by the NDS-OM Web Admin at CCIL.

Ans. Financial Market Infrastructure (FMI) is defined as a multilateral system among participating institutions, including the operator of the system, used for the purposes of clearing, settling, or recording payments, securities, derivatives, or other financial transactions. (Please see “Oversight Framework for Financial Market Infrastructures and Retail Payment Systems”, available under the link: /en/web/rbi/-/oversight-framework-for-financial-market-infrastructures-fmis-and-retail-payment-systems-rpss-3864). The term FMI generally refers to systemically important payment systems, Central Securities Depositories (CSDs), Securities Settlement Systems (SSSs), Central Counter Parties (CCPs), and Trade Repositories (TRs) that facilitate the clearing, settlement, and recording of financial transactions. CSDs, SSSs, CCPs are designated as “payment systems” under the PSS Act. TR has been defined and covered under the PSS Act.

The FMIs are subjected, on an on-going basis, to the rules and regulations that are consistent with the Principles for Financial Market Infrastructures (PFMIs) issued by the Committee on Payment and Settlement Systems (CPSS is rechristened as Committee on Payment and Market Infrastructures- CPMI) and International Organisation of Securities Commissions (IOSCO). The Reserve Bank, on June 13, 2020, issued a press release on “Reserve Bank of India publishes the Oversight Framework for Financial Market Infrastructures and Retail Payment Systems”, available under the link: /en/web/rbi/-/press-releases/reserve-bank-of-india-publishes-the-oversight-framework-for-financial-market-infrastructures-and-retail-payment-systems-49947

Yes. The Roadmap to be prepared as per the recommendations of the Approach Paper would enable the banks to set milestones for achieving ADF which in turn would also help in monitoring from time to time the progress made in implementation.

Ans: The funds availed under TLTRO 2.0 are to be deployed in investment grade bonds, commercial paper (CPs) and non-convertible debentures (NCDs) of Non-Banking Financial Companies (NBFCs) and MFIs in the manner outlined in the press release dated April 17, 2020.

FAQs pertaining to On Tap TLTRO/ reversal of TLTRO/ TLTRO 2.0 transactions

User institutions enjoy many advantages as well. For instance, Savings on administrative machinery and costs of printing, dispatch and reconciliation of paper instruments that would have been used had beneficiaries not opted for ECS Credit. Avoid chances of loss / theft of instruments in transit, likelihood of fraudulent encashment of paper instruments, etc. and subsequent correspondence / litigation. Efficient payment mode ensuring that the beneficiaries get credit on a designated date. Cost effective.

Foreign exchange for travel abroad can be purchased from banks against rupee payment in cash up to Rs.50,000/-. However, if the rupee equivalent exceeds Rs.50,000/-, the entire payment should be made by way of a crossed cheque/banker’s cheque/pay order/demand draft only.

Ans: No. NEFT is a credit-push system i.e., transactions can be originated by the payer / remitter / sender only to pay / transfer / remit funds to beneficiary.

An AD Category – I Bank / AD Category - II/ FFMC should apply to the respective Regional Office of the Reserve Bank, in Form RMC-F (as given in Part I: Annex-II of the FED Master Direction No.18/2015-16 on Reporting under FEMA 1999) for appointment of franchisees under this Scheme. The application should be accompanied by a declaration that while selecting the franchisees, adequate due diligence has been carried out and that such entities have undertaken to comply with all the provisions of the franchising agreement and prevailing Reserve Bank regulations regarding money changing. Approval would be granted by the Reserve Bank for the first franchisee arrangement. Thereafter, as and when new franchisee agreements are entered into, these would have to be reported to the Reserve Bank in Form RMC-F on a post-facto basis along with similar declaration as indicated above.

RBI will issue securities only in SGL form. It will credit the securities to the CSGL account of the aggregator or facilitator. They will in turn credit the securities to the gilt account or dematerialized account of the investors.

Name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents, if any, the nature and extent of the loss caused to the complainant, the relief sought from the Banking Ombudsman and a declaration about the compliance with conditions which are required to be complied with by the complainant under Clause 9(3) of the Banking Ombudsman Scheme.