Introduction As a part of financial sector reforms, the Reserve Bank has deregulated interest rates on deposits, other than savings bank deposits. The interest rate on savings bank deposits has remained unchanged at 3.5 per cent per annum since March 1, 2003. Keeping in view progressive deregulation of interest rates, it was proposed in the Second Quarter Review of Monetary Policy 2010-11 announced on November 2, 2010 to prepare a Discussion Paper to delineate the pro

1. Objective The objective of introducing Credit Default Swaps (CDS) on corporate bonds is to provide market participants a tool to transfer and manage credit risk in an effective manner through redistribution of risk. CDS as a risk management product offers the participants the ability to hive off credit risk and also to assume credit risk which otherwise may not be possible. Since CDS have benefits like enhancing investment and borrowing opportunities and reducing t

1. Introduction 1.1 In 2005, the Reserve Bank released the “Road map for presence of foreign banks in India” laying out a two track and gradualist approach aimed at increasing the efficiency and stability of the banking sector in India. One track was the consolidation of the domestic banking system, both in private and public sectors, and the second track was the gradual enhancement of foreign banks in a synchronised manner. The Road map was divided into two phases, t

DBOD.No.BP.BC. /21.06.014/2010-11 January 6, 2011 The Chairmen and Managing Directors / Chief Executive Officers of All Commercial Banks (excluding Regional Rural Banks and Local Area Banks) Dear Sir, Implementation of the Advanced Measurement Approach (AMA) for Calculation of Capital Charge for Operational Risk - Draft Guidelines Please refer to our circular DBOD.BP.BC.23/21.06.001/2009-10 dated July 7, 2009, inter alia advising banks that they can apply for migratin

1. INTRODUCTION 1.1 The Union Finance Minister, in his budget speech for the year 2010-11 had announced that ‘The Indian banking system has emerged unscathed from the crisis. We need to ensure that the banking system grows in size and sophistication to meet the needs of a modern economy. Besides, there is a need to extend the geographic coverage of banks and improve access to banking services. In this context, I am happy to inform the Honourable Members that the RBI i

Introduction 1. The purpose of this paper is to seek the views / comments of banks, non-banking financial institutions, ‘for-profit’ companies, regulators, academicians, NGOs and the public at large on the discussion on whether there is a case for allowing banks to engage ‘for-profit’ companies as well as NBFCs as their Business Correspondents for expanding their banking outreach. Business Correspondent model 2. The Reserve Bank of India has taken several initiatives

DBOD No.BC. /29.67.001/2010-11 July 1, 2010 To All banks in Private Sector and Local Area Banks and all Foreign Banks operating in India Dear Sir/ Madam, Guidelines on Compensation of Whole Time Directors/Chief Executive Officers/Risk takers and Control function staff Flawed incentive compensation practices in the financial sector were one of the important factors contributing to the recent global financial crisis. Employees were too often rewarded for increasing the

Detailed Guidelines on Securitisation of Standard Assets were issued to NBFCs vide Circular DBOD.NO.BP.BC.60/21.04.048/2005-06 dated February 01, 2006. 2. In order to prevent unhealthy practices from developing and in order to align the interest of the originator with that of the investors, it has been considered necessary that originators should retain a portion of each securitization originated, as a mechanism to better align incentives and ensure more effective scr

DNBS (PD) CC.No. /03.10.001/2009-10 April 21, 2010 Proposed Regulatory Framework for Systemically Important Non Deposit Accepting Core Investment Companies(CICs-ND-SI) Core Investment Companies (CICs) were not considered as carrying on the business of acquisition of shares and securities in the following circumstances, namely, not less than 90% of their assets were in investments in shares for the purpose of holding stake in the investee companies; they were not tradi

RBI/2009-10/ DBOD.No.BP.BC. / /2009-10 April 19, 2010 The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks (Excluding RRBs and Local Area Banks) Dear Sir, Second Quarter Review of Monetary Policy for the Year 2009-10 – Securitisation Transactions- Draft Guidelines Please refer to paragraph 161 of the Second Quarter Review of the Monetary Policy for the year 2009-10 announced on October 27, 2009 (copy of the paragraph enclosed),