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. 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

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),

DBOD.BP.BC. 14054/21.06.001/2009-10 February 11, 2010 The Chairman and Managing Directors/ Chief Executive Officers of All Commercial Banks Dear Sir Implementation of The Standardised Approach (TSA) 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 migrating to The Standardised Approach and Alternative Standardised

Draft Circular RBI/2009-10/ Ref.No.MPD.BC. /10.14.01/2009-10 February , 2010 Magha , 1931(S) To All Scheduled Commercial Banks Guidelines on the Base Rate Following the announcement in the Annual Policy Statement for the year 2009-10, the Reserve Bank constituted a Working Group on Benchmark Prime Lending Rate (Chairman: Shri Deepak Mohanty) to review the present benchmark prime lending rate (BPLR) system and suggest changes to make credit pricing more transparent. Th

Discussion paper on Regulation of Off-Balance Sheet Activities of Banks