RBI/DPSS/2016-17/ DPSS.CO.PD. No. /02.14.006/2016-17 March 20, 2017 All Prepaid Payment Instrument Issuers, System Providers, System Participants and all prospective Prepaid Payment Instrument Issuers (Draft Master Directions for Comments) Dear Sir/ Madam, Master Directions on Issuance and Operation of Prepaid Payment Instruments in India As you are aware, the Reserve Bank of India has, from time to time, issued a number of circulars containing policy guidelines on Is

DPSS.CO.PD.No. /02.14.003/2016-17 February 16, 2017 The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks / Payments Banks and Small Finance Banks / All Card Network Providers Dear Madam / Sir, Draft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions Recent developments, including the comm

DRAFT DIRECTIONS RESERVE BANK OF INDIA FINANCIAL MARKETS REGULATION DEPARTMENT 1st FLOOR, CENTRAL OFFICE FORT MUMBAI 400 001 FMRD.DIRD./CGM(TRS) - 2017 dated February 2, 2017 Reserve Bank Commercial Paper Directions, 2017 Whereas the Reserve Bank of India, in exercise of the powers conferred by Sections 45J, 45K, 45L of the Reserve Bank of India Act, 1934, and of all the powers enabling it in this behalf, notified the Non-Banking Companies (Acceptance of Deposits thro

RBI/2016-17/ DBR.No.BP.BC…/21.07.005/2016-17 February 2, 2017 The Managing Director/ Chief Executive Officer of All Scheduled Commercial Banks (Excluding Regional Rural Banks) Madam / Dear Sir, Draft Guidelines on governance, measurement and management of Interest Rate Risk in Banking Book Please refer to the paragraph 5 of the Statement on Developmental and Regulatory Policies, by RBI, dated October 4, 2016. It was indicated therein that RBI would issue draft guideli

1. Purpose To provide greater flexibility for hedging the currency risk arising out of current account transactions of Indian subsidiaries of Multi-National Companies (MNCs) by the parent or any non-resident group entity. 2. Users Non-resident parent or its centralised treasury or any other related entity hedging on behalf of the Indian subsidiary. 3. Products All FCY-INR derivatives, OTC as well exchange traded that the Indian subsidiary is eligible to undertake. 4.

1. Introduction 1.1 A bank’s exposures to its counterparties may result in concentration of its assets to a single counterparty or a group of connected counterparties. As a first step to address the concentration risk, the Reserve Bank, in March 1989, fixed limits on bank exposures to an individual business concern and to business concerns of a group.RBI’s prudential exposure norms have evolved since then and a bank’s exposure to a single borrower and a borrower group

Draft Circular (for public comments) RBI/2016-17/ DBR.No.Leg.BC. /09.07.005/2016-17 August 11, 2016 All Scheduled Commercial Banks (including RRBs) All Co-operative Banks Dear Sir/Madam, Customer Protection – Limiting Liability of Customers in Unauthorised Electronic Banking Transactions Please refer to our circular DBOD.Leg.BC.86/09.07.007/2001-02 dated April 8, 2002 regarding reversal of erroneous debits arising from fraudulent and other transactions. 2. With the in

Preamble The Reserve Bank of India (RBI) had issued guidelines for licensing of new banks in the private sector on February 22, 2013. Reserve Bank issued in-principle approval to two applicants and they have since established the banks as per the licences. Recognising the need for having an explicit policy on banking structure in India in line with the recommendations of the Narasimham Committee, Raghuram G. Rajan Committee, and other viewpoints, the Reserve Bank came

During the year 2015-16, all the 25 PSBs have exercised managerial autonomy in regard to selection and appointment of SBAs. The names of audit firms recommended by these 25 banks and approved by RBI are displayed on the web-site. While approving names of audit firms, banks were advised not to allot more than three branches per audit firm and that they should allot branches, to the extent possible, to the audit firms taking into consideration their category and audit e

RBI/2015-16/ DBR.No.BP.BC./21.06.201/2015-16 June 22, 2016 The Managing Director/ Chief Executive Officer of All Scheduled Commercial Banks (Excluding Regional Rural Banks) Madam / Dear Sir, Draft Guidelines for computing exposure for counterparty credit risk arising from derivative transactions Please refer to the paragraph 27 of the first bi-monthly monetary policy statement for 2016-17. It was indicated therein that RBI will issue draft guidelines on Standardised A

Draft Circular RBI/2015-16/…. A.P. (DIR Series) Circular No. … ..…, 2016 To, All Category – I Authorised Dealer banks Madam / Sir, Investment by Foreign Portfolio Investors (FPI) in Corporate Debt Securities Attention of Authorised Dealers Category – I (AD Category - I) banks is invited to paragraph 1 of Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA

In March 2015, RBI issued a Discussion Paper titled “Large Exposures Framework and Enhancing Credit Supply through Market Mechanism” for stakeholders’ comments. Apart from introducing the contours of ‘Large Exposures Standards’ for banks in India, the Discussion Paper also focused on the need to encourage sources of funding other than bank credit for the corporate sector to finance growth. Specifically, the paper proposed ways to encourage large corporates with borrow

Preamble The Reserve Bank of India (RBI) had issued guidelines for licensing of new banks in the private sector on February 22, 2013. Reserve Bank issued in-principle approval to two applicants and they have since established the banks as per the licences. Recognising the need for having an explicit policy on banking structure in India in line with the recommendations of the Narasimham Committee, Raghuram G. Rajan Committee and other viewpoints, the Reserve Bank came

Derivatives are an integral risk management tool for most of the business entities and financial institutions. Most of the bigger and mid-size companies in India use derivatives to manage foreign currency, interest rate and commodity price risks. Derivatives foster financial innovation and contribute to the completeness of financial markets. However, if not regulated and supervised appropriately, derivatives markets can also be a source of systemic risk. One of the le

INDEX 1. Introduction 2. P2P Lending Globally 3. P2P Lending India 4. Arguments for and against Regulating the Sector 5. The Way Forward 6. Feedback/Comments Introduction The financial sector is not immune from the advent of online industry and its potential impact. For this reason, it is attracting attention of analysts, investors, customers, businesses and regulators in a major way. Peer-to-Peer (P2P) lending is one such business model that has gathered momentum glo

Under the extant regulatory framework under FEMA, 1999 and Regulations1 thereunder, the various routes available to residents intending to hedge currency risk are as follows: Exposure based on underlying contracts Probable Exposures based on Past Performance Special Dispensation for SMEs and Individuals Under (i), the Contracted Exposure route, clients have to submit evidence of underlying foreign currency exposure to AD Cat-I banks at the time of booking the derivati

The Reserve Bank of India, (the Bank) issued a Notification No..........DNBS.(AA) / CGM (CDS)-2016 dated XXXX 2016 in terms of sub-clause (iii) of clause(f) of section 45I of the Reserve Bank of India Act, 1934 (hereinafter referred to “the Act”) and on being satisfied that it is necessary to do so, in exercise of the powers conferred under section 45JA of the Act, and of all the powers enabling it in this behalf, hereby issues these directions for compliance of the s

The basic objective of the extant External Commercial Borrowings (ECB) policy is to supplement domestic capital for creation of capital assets in the country, limited by considerations for capital account management. With the above objective in view, the ECB regime has been progressively liberalised over the years, allowing different entities to raise ECB. Within the overarching stance of calibrated approach to the capital account liberalisation, an attempt has now be

Background 1. Under Base Rate system which came into effect from July 1, 2010, all categories of domestic rupee loans should be priced only with reference to the Base Rate, subject to the conditions mentioned in our circulars DBOD.No.Dir.BC.88/13.03.00/2009-10 dated April 9, 2010 and DBR. Dir.BC.No.63/13.03.00/2014-15 dated January 19, 2015. For monetary transmission to occur, lending rates have to be sensitive to the policy rate. At present, banks follow different me

Under the existing regulatory framework, persons resident in India are permitted to buy plain vanilla European call or put options to hedge foreign currency exposures in accordance with Schedule I of Notification No. FEMA/25/RB‐2000 dated May 3, 2000 as amended from time to time from any AD Category‐I bank who has been accorded onetime approval by the Reserve Bank to run a FCY-INR options book. Writing of options by the users, on a standalone basis, is not permitted.