DRAFT CIRCULAR FOR COMMENTS RBI/2024-25/ DOR.STR.REC. /21.04.048/2024-25  August 05, 2024 All Commercial Banks (including Regional Rural Banks and Local Area Banks) All Primary (Urban) Co-operative Banks All State Cooperative Banks & Central Cooperative Banks All Non-Banking Financial Companies (including Housing Finance Companies) All All-India Financial Institutions Madam/Dear Sir, Regulatory Principles for Management of Model Risks in Credit

Please refer to circular DBOD.BP.BC.No.120/21.04.098/2013-14 dated June 09, 2014 on ‘Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards’ and associated guidelines.

Notification No. FEMA XX/2024-RB July XX, 2024 Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2024 In exercise of the powers conferred by Section 7, Section 8, Section 10(6) and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in supersession of the Foreign Exchange Management (Export of Goods & Services) Regulations 2015 (Notification No. FEMA 23(R)/2015-RB dated January 12, 2016), except as respects things done or omitted to be done before such supersession, Reserve Bank of India makes the following Regulations 

RBI/2024-25/XX A.P. (DIR Series) Circular No. XX July XX, 2024 All Authorised Dealers - Category I banks Madam / Sir, Export and Import of Goods and Services Reserve Bank of India, in exercise of the powers conferred under Foreign Exchange Management Act 1999 (42 of 1999) and in supersession of Master Direction – Export of Goods and Services and Master Direction – Import of Goods and Services, hereby issues the directions on export and import of goods and services.

DRAFT FOR COMMENTS RBI/DOR/2024-25/ DOR.STR.REC. /21.04.048/2024-25 May 03, 2024 All Commercial Banks (including Small Finance Banks but excluding Payments Banks, Local Area Banks and Regional Rural Banks) All Primary (Urban) Co-operative Banks All All-India Financial Institutions All Non-Banking Financial Companies

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 and of all the powers enabling it in this behalf and in supersession of the Electronic Trading Platform (Reserve Bank) Directions, 2018 dated October 05, 2018, the Reserve Bank of India (hereinafter called the Reserve Bank), hereby issues the following Directions to all entities operating Electronic Trading Platforms.

CO.DPSS.POLC.No. S-*** / 02-14-008 / 2024-25 Date of Issue All Payment System Providers and Payment System Participants Madam / Dear Sir, Regulation of Payment Aggregators (PAs) - DRAFT Reference is invited to the Reserve Bank of India (RBI) circulars DPSS.CO.PD.No.1810 / 02.14.008 / 2019-20 dated March 17, 2020, CO.DPSS.POLC.No.S33 / 02-14-008 / 2020-2021 dated March 31, 2021 on “Guidelines on Regulation of Payment Aggregators and Payment Gateways”, and circular CO.DPSS.POLC.No.S-761 / 02-14-008 / 2022-23 dated July 28, 2022 on “Regulation of Payment Aggregators – Timeline for submission of applications for authorisation – Review”. Keeping in view the importance of Payment Aggregators (PAs) in the payment ecosystem, these circulars provided for, inter-alia, direct regulation and authorisation of PAs facilitating payments at online Point of Sale by the RBI. 
 

CO.DPSS.POLC.No. S-*** / 02-14-008 / 2023-24 Date of Issue All Payment System Providers and Payment System Participants Madam / Dear Sir, Regulation of Payment Aggregators – physical Point of Sale - DRAFT

RBI/2023-24/ DOR.SFG.REC. /30.01.021/2023-24 February 28, 2024 All Scheduled Commercial Banks (excluding Local Area Banks, Payments Banks and Regional Rural Banks) All Tier-IV Primary (Urban) Co-operative Banks (UCBs) All All-India Financial Institutions (viz. EXIM Bank, NABARD, NaBFID, NHB and SIDBI)All Top and Upper Layer Non-Banking Financial Companies (NBFCs)

Please refer to paragraph 91.7 of Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023 dated October 19, 2023 as per which Government owned NBFCs set up to serve specific sectors are permitted to approach the Reserve Bank for exemptions, if any, from credit/investment concentration norms. 

Technological innovations are reshaping the financial services landscape, with FinTechs emerging as disruptors and facilitators. FinTechs encompass diverse entities in terms of constitution, size, activities, domains, etc., all subject to constant flux and evolution. FinTechs play a pivotal role in redefining financial services by saving time, enhancing access, and lowering costs. At the same time, the sector raises concerns relating to customer protection, data privacy, cyber security, grievance handling, internal governance, financial system integrity, and the like. While the innovation and dynamism of FinTechs needs to be harnessed, the emerging risks require to be appropriately managed. In such a context, approach to regulation should be imaginative, adaptive, flexible, and proportionate to the perceived risks. In particular, an effective regulatory approach should maintain the balance between maximising the creative potential of FinTechs, while minimising the idiosyncratic risks they pose to the financial system. 

Please refer to our circular DOR.NBFC (HFC).CC.No.118/03.10.136/2020-21 dated October 22, 2020, issued after examination of inputs received on the draft regulatory framework for HFCs, which was placed in public domain on June 17, 2020.  Reference is invited to para 4 of the above circular advising that further harmonisation between the regulations of HFCs and NBFCs will be taken up in a phased manner in the next two years so as to ensure that the transition is achieved with least disruption.   

Draft Circular for comments DOR.ACC.REC.No.##/21.02.067/2023-24 January 2, 2024 Madam/ Dear Sir, Declaration of dividend by banks and remittance of profits to Head Office by foreign bank branches in India The Reserve Bank has granted general permission to all scheduled commercial banks [excluding regional rural banks (RRBs)] to declare dividends vide circular reference DBOD.NO.BP.BC.88/21.02.067/2004-05 dated May 4, 2005 on ‘Declaration of dividends by banks’. Similarly, foreign banks operating in India in the branch mode are permitted to remit profits to their head office without prior approval from the Reserve Bank pursuant to circular reference DBOD.No.IBS.BC.46/16.13.100/2003-04 dated November 6, 2003.

Framework for Dealing with Domestic Systemically Important Banks (D-SIBs) (Revised upto December 28, 2023[1]) Introduction Some banks, due to their size, cross-jurisdictional activities, complexity, lack of substitutability and interconnectedness, become systemically important. The disorderly failure of these banks has the potential to cause significant disruption to the essential services they provide to the banking system, and in turn, to the overall economic activity. Therefore, the continued functioning of Systemically Important Banks (SIBs) is critical for the uninterrupted availability of essential banking services to the real economy.

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