In case of the funded facility created on account of invocation of BG/ devolvement of LC, the bank may charge an appropriate rate of interest on the devolved amount taking into account the associated credit risk premium as per the bank’s credit underwriting policy. However, penalty, if any, on that funded facility on account of non-repayment by the borrower within the due date may only be levied in the form of penal charges and not penal interest.

Ans. Yes.  In terms of paragraphs 15, 18 and 27 of Master Direction- Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, banks can levy penalty for premature withdrawal as per the comprehensive policy approved by their Board of Directors. The components of penalty should be clearly brought to the notice of the depositors at the time of acceptance of deposits.

Ans: DLG arrangements are not permitted on the loans which are covered by the credit guarantee schemes administered by trust funds as specified under para 2 of Review of Prudential Norms – Risk Weights for Exposures guaranteed by Credit Guarantee Schemes (CGS) dated September 07, 2022, as amended from time to time.

Ans.: Total invoice value must be in Indian Rupees (INR) in actuals (which should also include billing to subsidiary(s)/associate(s) abroad) during the reference period.

The complaints pertaining to the REs not covered under the RB-IOS, 2021 are forwarded to CEPCs of RBI (currently located at 30 RBI Offices) for resolution. Such complaints can also be filed on the portal or address as per details given in Question 16. The complainant would be notified of the same through SMS and e-mail on the mobile number and email id provided at the time of filing the complaint.

ಉತ್ತರ. ಎಟಿಎಮ್‌ಗಳಲ್ಲಿ ಕನಿಷ್ಠ ಸಂಖ್ಯೆಯ ಉಚಿತ ವಹಿವಾಟುಗಳನ್ನು ಆರ್‌ಬಿಐ ಕಡ್ಡಾಯಗೊಳಿಸಿದೆ. ಬ್ಯಾಂಕುಗಳು ತಮ್ಮ ಗ್ರಾಹಕರಿಗೆ ಹೆಚ್ಚಿನ ಸಂಖ್ಯೆಯ ವಹಿವಾಟುಗಳನ್ನು ಉಚಿತವಾಗಿ ನೀಡಬಹುದು.

Answer: The exchange rate for most currencies are determined in the Forex markets, typically against global currencies like the USD, EUR, JPY etc. In the transition phase, when there is no market with direct exchange rates between two currencies (say INR and Sri Lankan Rupee), the exchange rate between the currencies of two trading partner countries, each of which has markets against global currencies, would be derived as a cross currency rate.

Ans. Yes, documents as mentioned in reply to Q 5 above shall be submitted by all account holders of a joint account to the RE.

Response: Yes, unless the potential depositor is already a bank’s KYC compliant customer.

The credit rating by external rating agencies is not compulsory from regulatory capital perspective, if the maximum aggregate exposure to one counterparty does not exceed the threshold limit of ₹7.5 crore, subject to meeting certain other conditions. (Refer Circular on Regulatory Retail Portfolio – Revised Limit for Risk Weight dated October 12, 2020)

Based on the dominant features of the product, the eligibility criteria and networth criteria as applicable for the RS of the PR concerned shall be applicable to the applicant entity for participation in the IoRS.

Ans. Both types of Small PPIs are reloadable and shall be used only for purchase of goods and services. Their salient features are as follows:

PPIs upto ₹10,000/- (with cash loading facility):

1. The amount loaded during any month shall not exceed ₹10,000/-;

2. The total amount loaded during the financial year shall not exceed ₹1,20,000/-;

3. The amount outstanding at any point of time shall not exceed ₹10,000/-;

4. The total amount debited during any given month shall not exceed ₹10,000/-;

5. These PPIs shall be converted into full-KYC PPIs within 24 months; and

6. Loading / Reloading can be by cash or electronic means.

PPIs upto ₹10,000/- (with no cash loading facility):

1. The amount loaded during any month shall not exceed ₹10,000/-;

2. The total amount loaded during the financial year shall not exceed ₹1,20,000/-;

3. The amount outstanding at any point of time shall not exceed ₹10,000/-;

4. Loading / Reloading shall be from a bank account / credit card / full-KYC PPI; and

5. The Small PPIs (with cash loading facility) existing as on December 24, 2019 can be converted to this PPI, if desired by the PPI holder.

'ಬೇಸಿಕ್ ಸೇವಿಂಗ್ಸ್ ಬ್ಯಾಂಕ್ ಡಿಪೋಸಿಟ್ ಅಕೌಂಟ್'ನಲ್ಲಿ ಉಚಿತವಾಗಿ ದೊರೆಯುವ ಸೇವೆಗಳೆಂದರೆ, ನಗದು ಡಿಪೋಸಿಟ್ ಮತ್ತು ವಿಥ್ಡ್ರಾವಲ್, ಎಲೆಕ್ಟ್ರಾನಿಕ್ ಪೇಮೆಂಟ್ಸ್ ಚನೆಲ್ಸ್ ಅಥವಾ ಡಿಪೋಸಿಟ್ ಮೂಲಕ ಹಣ ಸ್ವೀಕರಿಸುವುದು/ಕ್ರೆಡಿಟ್ ಪಡೆಯುವುದು, ಬ್ಯಾಂಕು ಶಾಖೆಗಳಲ್ಲಿ ಅಥವಾ ಎಟಿಮ್ಗಳಲ್ಲಿ ಚೆಕ್ ಸಂಗ್ರಹಿಸಿಸುವುದು.

Ans : ECS Credit offers many advantages to the beneficiary –

• The beneficiary need not visit his / her bank for depositing the paper instruments which he would have otherwise received had he not opted for ECS Credit.

• The beneficiary need not be apprehensive of loss / theft of physical instruments or the likelihood of fraudulent encashment thereof.

• Cost effective.

• The beneficiary receives the funds right on the due date.

Ans. Under normal circumstances, the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank must credit the beneficiary's account within 30 minutes of receiving the funds transfer message.

On return from a foreign trip travellers are required to surrender unspent foreign exchange held in the form of currency notes within 90days and travellers’ cheques within 180 days of return. However, they are free to retain foreign exchange upto US$2,000, in form of foreign currency notes or TCs for future use.

GAHs Management  involves PM’s actions like -  create ‘transactional’ users (employees of GAH who can place bids)  and ‘view only’ users (employees of GAH who can only view the bid related queries), modify users, suspend/unlock users, log-off users, obtain and set/reset the login passwords of users, set risk limits, take action on bids submitted by GAHs etc.

A list of returns generally applicable to the banks has been made available in the Approach Paper. However, every bank is required to work on all the RBI returns applicable to it.

Ans: Yes, NEFT can be used to transfer funds from / to NRE and NRO accounts in the country. This, however, is subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.

If a bank goes into liquidation, DICGC is liable to pay to the liquidator the claim amount of each depositor upto Rupees five lakhs within two months from the date of receipt of claim list from the liquidator. The liquidator has to disburse the claim amount to each insured depositor corresponding to their claim amount."

If a bank is reconstructed or amalgamated / merged with another bank: The DICGC pays the bank concerned, the difference between the full amount of deposit or the limit of insurance cover in force at the time, whichever is less and the amount received by him under the reconstruction / amalgamation scheme within two months from the date of receipt of claim list from the transferee bank / Chief Executive Officer of the insured bank/transferee bank as the case may be."

The foreign exchange acquired for any purpose has to be used within 60 days of purchase. In case it is not possible to use the foreign exchange within the period of 60 days it should be surrendered to an authorised dealer.

Under the Scheme, the Reserve Bank permits ADs Category - I , ADs Category - II and FFMCs to enter into agency or franchisee agreements at their option for the purpose of carrying restricted money changing business i.e. conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees.

A franchisee can be any entity which has a place of business and a minimum Net Owned Funds of Rs.10 lakh. Franchisees can undertake only restricted money changing business.

An AD Category-I Bank / AD Category-II / FFMC, as the franchiser, is free to decide on the tenor of the arrangement as also the commission or fee through mutual agreement with the franchisee. The Agency / Franchisee agreement to be entered into should include the following salient features:

1. The franchisees should display the names of their franchisers, exchange rates and that they are authorised only to purchase foreign currency, prominently in their offices. Exchange Rate for conversion of foreign currency into Rupees should be the same or close to the daily exchange rate charged by the AD Category – I Banks / ADs Category - II / FFMC at its branches.

2. The foreign currency purchased by the franchisee should be surrendered only to its franchiser within 7 working days from the date of purchase.

3. The maintenance of proper record of transactions by the franchisee.

4. The on-site inspection of the franchisee by the franchiser should be conducted at least once a year.

Ans. A person resident in India is free to make any payment in Indian Rupees towards meeting expenses, on account of boarding, lodging and services related thereto or travel to and from and within India, of a person resident outside India, who is on a visit to India.

The RBI will allot the bids under the non-competitive segment to the aggregator or facilitator which, in turn, will allocate to the bidders.

The Banking Ombudsman may award compensation not exceeding ₹ 1 lakh (₹ One Hundred Thousand) to the complainant for mental agony and harassment. The Banking Ombudsman will take into account the loss of the complainant's time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant while passing such award.

This will be notified at the time of announcement of the specific auction for which non competitive bids will be invited.

Savings bank account cannot be opened in the name of Government Department/ Government Scheme, excepting in respect of deposits of Government organizations/agencies listed below: Primary Co-operative Credit Society which is being financed by the bank. Khadi and Village Industries Boards. Agriculture Produce Market Committees. Societies registered under Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory. Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the word "Limited" or the words "Private Limited". Institutions other than those mentioned in clause (i) above and whose entire income is exempt from payment of income tax under Income-Tax Act, 1961. Government departments/bodies/agencies in respect of grants/ subsidies released for implementation of various programmes/ schemes sponsored by Central Government subject to production of an authorisation from the respective Government departments to open savings bank account. Development of Women and Children in Rural Areas (DWCRA). Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among their members. Farmers’ Clubs - Vikas Volunteer Vahini - VVV.

Under the automatic route, a company does not require any prior approval from the regulatory authority for setting up a JV/WOS abroad.

Ans : Domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs.

• Not as of now.

• The work on web-based platform for primary auction is, however, underway and as and when the same is completed, investors will be able use the same for participating in the primary auction of G-Secs including IIBs.

ECS Credit offers many advantages to the beneficiary – The beneficiary need not visit his / her bank for depositing the paper instruments which he would have otherwise received had he not opted for ECS Credit. The beneficiary need not be apprehensive of loss / theft of physical instruments or the likelihood of fraudulent encashment thereof. Cost effective. The beneficiary receives the funds right on the due date.

Ans. Yes. All entities, irrespective of domestic or foreign, need to obtain license/ approval / authorization from Reserve Bank before commencing payment system operations in the country. The PSS Act indicates that “No person can operate a payment system except under and in accordance with an authorisation issued by the Reserve Bank”. Criteria are also specified for particular payment systems which form part of the respective payment system guidelines / instructions

The form and manner of application for authorisation is available at /documents/87730/30842423/PSSR23022022d57d6e9afaf44d97b9ed577d9d1c7c2b.pdf

Ans. Yes

The complainant is required to give details such as, his/her name and address, the name and address of the branch or office of the NBFC 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 NBFC Ombudsman and a declaration that the complaint is maintainable under Clause 9A of the Scheme.

Ans. The detailed process of application is given in the Master Directions on Access Criteria for Payment Systems issued vide DPSS.CO.OD.No.1846/04.04.009/2016-17 dated January 17, 2017.

All applications for membership to CPS shall have to be submitted to the Chief General Manager, Department of Payment and Settlement Systems (DPSS), Reserve Bank of India (RBI), Central Office, 14th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai – 400 001.

The application will need to be in the format prescribed in Appendix - 1 “Covering letter for membership to Centralised Payment System”, of Master Directions on Access Criteria for Payment Systems, together with annexures.

Repayment of the deposit will be made after a period of 4 years from the effective date of deposit (ie., date of tender of cash or the date of realization of draft or cheque or transfer through electronic transfer)

Response

There is no requirement for any initial deposit for opening a BSBDA.

• The banks through which these securities have been purchased will provide other customer services.

• Investors can approach the banks for other services such as change of address, early redemption, nomination, lien marking, etc.

Ans. The regulatory framework for microfinance loans is applicable only to REs/ entities as defined under para 2.1⁴ and para 9.2⁵ of the directions. However, it may be prudent for other lenders operating in the microfinance sector to follow these customer-centric directions.

The complainant is required to give details such as,The name and the address of the complainantThe name and address of the branch or office of the System Participant against whom the complaint is made;The 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 for; andDeclaration that the complaint is maintainable under Clause 9(3) of the Scheme.

Banks are not required to enter into any ISDA agreement with RBI.

Only such resolution plans which receive a credit opinion of RP4 or better for the residual debt from a CRAs shall be considered for implementation under the Resolution Framework. In case credit opinion is obtained from more than one CRA, all such credit opinions must be RP4 or better.

Ans. List of all authorised Payment System Operators (PSOs), including TReDS, is available at the following path: www.rbi.org.in → “Payment and Settlement Systems” dropdown → “Information Useful to Customer” → “List of Authorised Entities – Payment System Operators”. Following is the web link for accessing the same: /en/web/rbi/-/publications/certificates-of-authorisation-issued-by-the-reserve-bank-of-india-under-the-payment-and-settlement-systems-act-2007-for-setting-up-and-operating-payment-system-in-india-12043

Response: The Reserve Bank has not prescribed any requirement for insurance cover on debit or credit cards. However, in case a card-issuer or a card payment network provides an insurance cover, complimentary or chargeable (with the consent of the cardholder), the card-issuer shall ensure that the relevant nomination details are recorded by the Insurance Company and the availability of insurance is included, along with other information, in every statement. The information shall also include the details regarding the insurance cover, name/address and telephone number of the Insurance Company which will handle the claims relating to the insurance cover. In case of group insurance policy, the contact details of the concerned officials of the card-issuer shall be provided in the statements.

Ans. The registration for a tokenisation request is done only with explicit customer consent through Additional Factor of Authentication (AFA), and not by way of a forced / default / automatic selection of check box, radio button, etc. Customer will also be given choice of selecting the use case and setting-up of limits.

No. They are not covered under the G S Act or the G S Regulations.

The requirement is that the companies in the Promoter Group in which the public hold not less than 51 per cent of the voting equity shares shall hold not less than 51 per cent of the total voting equity shares of the NOFHC.[ para 2 (C) (ii) (b) of the guidelines] A company in which public holds 51 per cent need not necessarily be listed. For the purpose of these guidelines, ‘public shareholding’ implies that no person along with his relatives (as defined in Section 6 of the Companies Act, 1956) and entities in which he and / or his relatives hold not less than 50 per cent of the voting equity shares, by virtue of his shareholding or otherwise, exercises ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) over the company.

The maximum limit will be applicable to the first applicant in case of a joint holding for that specific application.

Ans. The remittances can be made in any freely convertible foreign currency.