1. Reserve Bank of India (RBI)
| Date |
Regulation |
Rationale |
| December 01, 2022 |
Revised Regulatory Framework - Categorisation of Urban Co-operative Banks (UCBs) for Regulatory Purposes: It has been decided to replace the existing two-tiered regulatory framework for categorisation of UCBs with the following four-tiered framework:
Tier 1 - All unit UCBs and salary earners’ UCBs (irrespective of deposit size), and all other UCBs having deposits up to ₹100 crore;
Tier 2 - UCBs with deposits more than ₹100 crore and up to ₹1000 crore;
Tier 3 - UCBs with deposits more than ₹1000 crore and up to ₹10,000 crore; and
Tier 4 - UCBs with deposits more than ₹10,000 crore.
If a UCB transits to a higher Tier on account of increase in deposits in any year, it may be provided a glide path of up to a maximum of three years, to comply with higher regulatory requirements. |
To balance the spirit of mutuality and co-operation more prevalent in banks of smaller sizes and those with limited area of operation vis-à-vis the growth ambitions of the large-sized UCBs to spread their area of operation and undertake more complex business activities. |
| December 01, 2022 |
Revised Regulatory Framework for UCBs – Net Worth and Capital Adequacy: (a) minimum net worth of ₹2 crore for Tier 1 UCBs operating in single district and ₹5 crore for all other UCBs (of all tiers). UCBs, which currently do not meet the minimum net worth requirement, shall achieve at least 50 per cent of the applicable minimum net worth on or before March 31, 2026 and the entire stipulated minimum net worth on or before March 31, 2028; (b) Tier 1 UCBs shall maintain, as hitherto, a minimum CRAR of 9 per cent of RWAs on an ongoing basis. Tier 2 to 4 UCBs shall maintain a minimum CRAR of 12 per cent of RWAs on an ongoing basis. UCBs, which do not currently meet the revised CRAR of 12 per cent of RWAs, shall achieve the CRAR of at least 10 per cent by March 31, 2024, 11 per cent by March 31, 2025, and 12 per cent by March 31, 2026; and (c) revaluation reserves may be reckoned as Tier 1 capital at a discount of 55 per cent subject to certain qualifying parameters. These guidelines were made applicable from March 31, 2023. |
To strengthen the financial resilience and capital structure of UCBs and enhance their ability to fund their growth. |
| December 01, 2022 |
Review of norms for classification of UCBs as Financially Sound and Well Managed (FSWM): It has been decided to revise the criteria for UCBs to be classified as FSWM. The revised criteria applicable with immediate effect include:
-
the CRAR shall be at least one percentage point above the minimum CRAR applicable to an UCB as on the reference date;
-
net NPA of not more than three per cent;
-
net profit for at least three out of the preceding four years subject to it not having incurred a net loss in the immediate preceding year;
-
no default in the maintenance of CRR / SLR during the preceding financial year;
-
sound internal control system with at least two professional directors on the Board;
-
fully implemented core banking solution (CBS); and
-
No monetary penalty should have been imposed on the bank for violation of RBI directives/guidelines during the latest two financial years.
The process of deciding the eligibility for being classified as a FSWM UCB may be carried out by UCBs themselves as per the revised criteria based on the assessed financials and findings of RBI inspection report or audited financial statements, whichever is latest. The Board approved resolution for the same should be passed on to the concerned Regional Office of Department of Supervision, Reserve Bank of India within 15 calendar days from the date of passing the resolution. |
To ensure a financially sound and stable co-operative sector, select UCBs are termed as FSWM subject to fulfilment of certain parameters. |
| December 01, 2022 |
Operations of subsidiaries and branches of Indian banks and All India Financial Institutions (AIFIs) in foreign jurisdictions and in International Financial Services Centers (IFSCs) - Compliance with statutory/regulatory norms: The foreign branches/foreign subsidiaries of Indian banks/ AIFIs and the branches/subsidiaries of Indian banks/AIFIs operating in IFSCs can deal in financial products, including structured financial products which are not available or are not permitted by the Reserve Bank in the domestic market without prior approval of Reserve Bank, subject to compliance with specified conditions of these directions and those prescribed by the host regulator. |
To allow foreign branches/ foreign subsidiaries of Indian banks and AIFIs to deal in financial derivative products which are not specifically permitted in the Indian domestic market subject to certain conditions and to specify the applicability of these instructions to IFSCs in India. |
| December 08, 2022 |
Review of SLR holdings in HTM category: At present, banks have been granted a special dispensation of enhanced held to maturity (HTM) limit of 23 per cent of net demand and time liabilities (NDTL), for statutory liquidity ratio (SLR) eligible securities acquired between September 01, 2020 and March 31, 2023, until March 31, 2023. On a review, it has been decided to further extend the special dispensation of enhanced HTM limit of 23 per cent of NDTL up to March 31, 2024 and allow banks to include securities acquired between September 01, 2020 and March 31, 2024 under the enhanced limit. The enhanced HTM limit of 23 per cent shall be restored to 19.5 percent in a phased manner, beginning from the quarter ending June 30, 2024 till March 31, 2025. |
To enable banks to better manage their investment portfolios. |
| December 12, 2022 |
Hedging of Gold Price Risk in Overseas Market: Resident entities in India have been permitted to hedge their gold price risk on recognised exchanges in the IFSC by the International Financial Services Centres Authority. |
To provide greater flexibility for resident entities to hedge the price risk of their gold exposures efficiently. |
| December 13, 2022 |
Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 - Disclosure of material items: Under the extant direction for commercial banks, in case any item under the sub-head ‘Miscellaneous Income’ under the head ‘Schedule 14 – Other Income’ exceeds one per cent of total income, particulars shall be given in the notes to accounts. Similar instructions exist in case of sub-head ‘Other expenditure’ under the head ‘Schedule 16 -Operating Expenses’. It has now been decided that banks shall also disclose the particulars of all such items in the notes to accounts wherever any item under the ‘Schedule 5(IV) - Other Liabilities and Provisions – Others (including provisions)’ or ‘Schedule 11(VI) – Other Assets – Others’ exceeds one per cent of the total assets. Payments Banks shall also be required to disclose particulars of all such items in the notes to accounts, wherever any item under the ‘Schedule 14(I) - Other Income – Commission, Exchange and Brokerage’ exceeds one per cent of the total income. |
To ensure greater transparency in the financial statements of banks. |
| December 26, 2022 |
Central Payments Fraud Information Registry - Migration of Reporting to DAKSH: The Reserve Bank had operationalised the Central Payments Fraud Information Registry (CPFIR) in March 2020 with reporting of payment frauds by SCBs and non-bank prepaid payment instrument (PPI) issuers. The fraud reporting module has been migrated to DAKSH – Reserve Bank’s Advanced Supervisory Monitoring System, effective January 01, 2023. |
To streamline reporting, enhance efficiency and automate the payments fraud management process. |
| December 30, 2022 |
Revised Regulatory Framework - Individual Housing Loans - Revised Limits for UCBs: The limits on housing loans sanctioned by UCBs to an individual borrower were reclassified as ₹60 lakh for Tier-1 UCBs and ₹140 lakh for UCBs categorised in Tier-2 to Tier-4. |
To align the individual housing loan limits with the four-tiered regulatory framework for UCBs. |
| January 16, 2023 |
Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023: These directions include limits on permissible shareholding by different categories of shareholders, introduction of reporting requirements for encumbrance of shares by promoters, and strengthening of arrangements for continuous monitoring of the ‘fit & proper’ status of major shareholding of a banking company. |
To ensure that the ultimate ownership and control of banking companies are well diversified and the major shareholders of banking companies are ‘fit and proper’ on a continuing basis. |
| January 23, 2023 |
‘Fully Accessible Route’ for Investment by Non-residents in Government Securities – Inclusion of Sovereign Green Bonds: Under the Fully Accessible Route (FAR), certain specified categories of Central Government securities are opened fully for non-resident investors without any restrictions, apart from being available to domestic investors as well. It has now been decided to also designate all Sovereign Green Bonds issued by the Government in the fiscal year 2022-23 as ‘specified securities’ under the FAR. |
To facilitate the mobilisation of resources for green infrastructure in India. |
| February 10, 2023 |
Issuance of Prepaid Payment Instruments (PPIs) to Foreign Nationals / Non-Resident Indians (NRIs) visiting India: It has been decided to allow access to Unified Payments Interface (UPI) to foreign nationals and NRIs visiting India. To start with, this facility was extended to travellers from the G-20 countries at select international airports for their merchant payments {Peer-to-merchant (P2M)} while they are in the country. Going forward, this will be enabled across all entry points in the country. |
To provide UPI access for merchant payments to inbound travellers to India. |
| February 17, 2023 |
Governance, Measurement and Management of Interest Rate Risk in Banking Book (IRRBB): These guidelines require banks to measure, monitor, and disclose their exposure to IRRBB in terms of potential change in Economic Value of Equity (ΔEVE) and Net Interest Income (ΔNII), computed based on a set of prescribed interest rate shock scenarios. |
To measure, monitor, and disclose banks’ exposure to IRRBB. |
| February 20, 2023 |
Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 - Applicability to State and Central Cooperative Banks: The Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021, ('Master Direction') was issued on August 30, 2021, and initially applied to all commercial banks and Urban Co-operative Banks (UCBs). In consultation with the National Bank for Agriculture and Rural Development, relevant portions of this Master Direction have now been made applicable to State Cooperative Banks and Central Cooperative Banks (together referred to as ‘Rural Co-operative Banks’ or ‘RCBs’) vide circular dated February 20, 2023. |
To ensure comparability in the accounting and disclosure practices followed across the banking sector. |
| February 20, 2023 |
Implementation of Indian Accounting Standards (Ind AS): Ind AS implementing Asset Reconstruction Companies (ARCs), shall reduce following amount from the net owned funds for calculation of capital adequacy ratio and amount available for dividend: (a) management fee recognised during the planning period that remains unrealised beyond 180 days from the date of expiry of the planning period, (b) management fee recognised after the expiry of the planning period that remains unrealised beyond 180 days of such recognition, and (c) any unrealised management fees, notwithstanding the period for which it has remained unrealised, where the net asset value of the security receipts has fallen below 50 per cent of the face value. ARCs shall also disclose information related to ageing of unrealised management fees in the prescribed format in their notes to accounts. |
To address the prudential concerns relating to continued recognition of unrealised management fees by ARCs. |
| March 06, 2023 |
Digital Payments Awareness Week 2023 – Launch of Mission “Har Payment Digital”: The Reserve Bank launched the Mission ‘Har Payment Digital’ with the campaign theme “Digital Payment Apnao, Auron ko bhi Sikhao” (Adopt digital payments and also teach others) during the Digital Payments Awareness Week (DPAW) from March 6 to 12, 2023. In observance of 75 years of Independence, the Reserve Bank also initiated the ‘75 Digital Villages’ programme, under which, payment system operators (PSOs) would adopt 75 villages across the country and convert them into digital payment enabled villages. |
To widen the reach and enhance adoption of digital payments. |
| April 10, 2023 |
Master Direction on Outsourcing of Information Technology (IT) Services: To ensure effective management of financial, operational and reputational risks originating from outsourcing of IT services by REs, directions are given regarding risk management framework for IT outsourcing, managing concentration risk, periodic risk assessment and outsourcing to foreign service providers. |
To ensure that outsourcing arrangements neither diminish REs ability to fulfil its obligations to customers nor impede effective supervision by the RBI. |
| April 11, 2023 |
Framework for acceptance of Green Deposits: The framework outlines the prerequisite for establishing a Board approved policy covering all aspects in detail for the issuance and allocation of green deposits. It provides a list of sectors in which REs shall be required to allocate the proceeds raised through green deposits. Furthermore, it mandates an annual third-party verification/assurance and impact assessment of the funds raised through green deposits by REs. Extant guidelines shall be followed by the REs while deciding the tenor, size, interest rates and other terms and conditions, as applicable to the REs, while issuing the green deposits. |
To encourage REs to offer green deposits to customers, protect interest of the depositors, aid customers to achieve their sustainability agenda, address greenwashing concerns and help augment the flow of credit to green activities/projects. |
| April 24, 2023 |
Provisioning for Standard Assets by primary (Urban) Co-operative banks- revised norms under four-tiered regulatory framework: The provisioning norms have been revised as follows-
| Sl. No. |
Category of Standard Asset |
Rate of Provisioning (per cent) |
| Tier II |
Tier I |
Revised (for all Tiers under four-tiered regulatory framework) |
| (a) |
Direct advances to Agriculture and SME sectors |
0.25 |
0.25 |
0.25 |
| (b) |
Commercial Real Estate (CRE) sector |
1.00 |
1.00 |
1.00 |
| (c) |
Commercial Real Estate-Residential Housing Sector (CRE-RH) |
0.75 |
0.75 |
0.75 |
| (d) |
All other loans and advances not included above |
0.40 |
0.25 |
0.40 |
The erstwhile Tier I UCBs, which are currently maintaining standard asset provision of 0.25 per cent on ‘all other loans and advances not included above’ as specified in table above, are permitted to achieve the provisioning requirement of 0.40 per cent on such advances in a staggered manner by March 31, 2025. |
To harmonise the provisioning norms for standard assets applicable to all categories of UCBs. |
| April 26, 2023 |
Remittances to IFSCs under the Liberalised Remittance Scheme (LRS): On a review, it has been decided that resident individuals may open foreign currency account (FCA) in IFSCs, for making the permissible investments under LRS. Further, the condition of repatriating any funds lying idle in the account for a period up to 15 days from the date of its receipt is also withdrawn with immediate effect. |
To align the LRS for IFSCs set up under the IFSC Act, 2019 vis-à-vis other foreign jurisdictions. |
| June 06, 2023 |
Risk Management and Inter-Bank Dealings - Non-deliverable derivative contracts (NDDCs): It has been decided to permit AD Cat-I banks operating IFSC Banking Units (IBUs) to offer INR NDDCs to resident non-retail users for the purpose of hedging. These banks will have the flexibility of settling their NDDC transactions with non-residents and with each other in foreign currency or in INR while transactions with residents will be mandatorily settled in INR. |
To develop the onshore INR NDDC market and provide residents with the flexibility to efficiently design their hedging programmes. |
| June 07, 2023 |
Expanding the Scope of Trade Receivables Discounting System (TReDS): Insurance companies are now permitted to participate as “fourth participant” in TReDS enabling financiers to hedge default risks, subject to the specified conditions. All entities / institutions eligible to undertake factoring business under the Factoring Regulation Act are now permitted to participate as financiers in TReDS adding to the availability of financiers on TReDS platforms. Also, secondary market operations are now enabled on TReDS platforms providing financiers the option to offload their existing portfolio to other financiers within the same TReDS platform, if required. TReDS platform operators shall now be permitted to undertake settlement of all Factoring Units – financed/ discounted or otherwise – using the NACH mechanism used for TReDS. |
To provide further impetus to TReDS platforms by expanding its scope of activities and help MSMEs in improving their cash flows. |
| June 08, 2023 |
Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021-Review: On a review, it has been decided that SCBs (excluding small finance banks and payment banks) may set their own limits for borrowing in Call and Notice Money Markets. As in the case of Term Money Market borrowing, SCBs shall put in place internal board approved limits for borrowing through Call and Notice Money Markets within the prudential limits for inter-bank liabilities prescribed by the Reserve Bank. |
To provide greater flexibility to SCBs to manage their money market borrowings. |
| June 08, 2023 |
Priority Sector Lending (PSL) targets / sub-targets and contribution against shortfall in achievement of PSL targets – Primary (Urban) Co-operative Banks (UCBs) - Extension of time: The phase-in-time for UCBs for achievement of the PSL target and sub-target for weaker sections has been extended by two years i.e. upto March 31, 2026. UCBs would be required to contribute to the funds with NABARD/NHB/SIDBI/Mudra towards PSL shortfalls with effect from March 31, 2023. Any contribution made in the meantime by a UCB for shortfalls pertaining to FY 2020-21 and/or 2021-22 can be utilised to offset shortfalls for FY 2022-23. Further, excess deposits will be refunded after offsetting the PSL shortfall for FY 2022-23. |
To ease the implementation challenges faced by the UCBs. |
| June 08, 2023 |
Rationalisation of Branch Authorisation Policy for Urban Co-operative Banks (UCBs): The general permission of branch expansion in the approved area of operation will be available to UCBs in all Tiers (except Salary Earners’ Banks) which comply with applicable Financially Sound and Well Managed (FSWM) criteria. The eligible UCBs are permitted to open new branches up to 10 per cent of the number of full-fledged branches (at the end of previous financial year) in a financial year, subject to a maximum of five branches without having the need to take permission from Reserve Bank of India. |
To rationalise the process of branch opening and to enable the UCBs to tap growth opportunities in the sector. |
| June 08, 2023 |
Framework for Compromise Settlements and Technical Write-offs: The framework for compromise settlements and technical write-offs lays down the process to be followed for all compromise settlements and technical write-offs. In respect of compromise settlements, the policy shall, inter alia, contain provisions relating to permissible sacrifice for various categories of exposures while arriving at the settlement amount, after prudently reckoning the current realisable value of security/ collateral, where available. REs may undertake compromise settlements or technical write-offs in respect of accounts categorised as wilful defaulters or fraud without prejudice to the criminal proceeding underway against such debtors. |
To provide further impetus to resolution of stressed assets in the system as well as to rationalise and harmonise the instructions across all REs. |
| June 08, 2023 |
Guidelines on Default Loss Guarantee (DLG) in Digital Lending: DLG arrangements between Regulated Entities (REs) and Lending Service Providers (LSPs) or between two REs are permitted subject to the stipulated guidelines. RE shall ensure that total amount of DLG cover on any outstanding portfolio shall not exceed five per cent of the amount of that loan portfolio and the same shall be in the form of cash, fixed deposit or bank guarantee. |
To support the development of digital lending ecosystem. |
2. Securities and Exchange Board of India (SEBI)
| Date |
Regulation |
Rationale |
| November 09, 2022 |
Discontinuation of policy framework for unlisted Infrastructure investment trusts. |
To enhance disclosure of information and activities to public and remove the arbitrage opportunity with the listed InvITs. |
| November 11, 2022 |
Handling of clients’ securities by Trading Members/Clearing Members. |
To further streamline the process of handling of unpaid securities by stock brokers and mitigate the possible misuse of unpaid securities. |
| November 25, 2022 |
Framework to address the ‘technical glitches’ in Stock Brokers’ Electronic Trading Systems. |
To deal with the technical glitches occurring in the trading systems of stock brokers. |
| November 29, 2022 |
Introduction of credit risk based single issuer limit for investment by mutual fund schemes in debt and money market instruments. |
To avoid inconsistency in investment by mutual funds in debt instruments of an issuer, irrespective of the scheme being actively or passively managed. |
| November 30, 2022 |
Net settlement of cash segment and Futures and Options (F&O) segment upon expiry of stock derivatives. |
To mitigate systemic risk arising if an ‘Out of the Money (OTM)’ option suddenly turns ‘In the Money (ITM)’ on the expiry day, which poses the obligation on such ITM option holder to bring in the cash or securities to honour the physical settlement. |
| December 09, 2022 |
Foreign Investment in Alternative Investment Funds (AIFs). |
To ensure that the money coming through the AIF structure is in compliance with applicable laws. |
| December 16, 2022 |
Performance Benchmarking and Reporting of Performance by Portfolio Managers. |
To help investors assess the performance of a Portfolio Manager. |
| December 16, 2022 |
Applicability of SEBI Circular on Principles of Financial Market Infrastructures (PFMIs) to AMC Repo Clearing Limited. |
To ensure compliance by AMC Repo Clearing Limited with the PFMIs published by the Committee on Payments and Settlement Systems (CPSS) and the IOSCO. |
| December 30, 2022 |
Introduction of Investor Risk Reduction Access (IRRA) Platform in case of Disruption of Trading Services Provided by the Trading Member. |
To enable investors with open positions who are at risk of non-availability of avenues to close their positions, particularly if markets are volatile, in the event of glitches in trading members’ systems. |
| January 10, 2023 |
Introduction of Futures Contracts on Corporate Bond Indices. |
To enhance liquidity in the corporate bond market and also to provide opportunity to the investors to hedge their positions. |
| February 06, 2023 |
Enhanced Obligations and Responsibilities of Qualified Stock Brokers |
To mitigate the risk of failure of large stock brokers, which can cause disruption in the services provided to their investors causing widespread impact in the securities market |
| March 23, 2023 |
E-wallet Investments in Mutual Funds. |
To boost the security in mutual fund industry, full Know Your Customer (KYC) compliant e-wallet (as per RBI norms) are permitted for investment in mutual funds within the umbrella limit of Rs. 50,000 (both e-wallet and/or cash). |
| March 29, 2023 |
Cyber Security and Cyber Resilience Framework for Portfolio Managers. |
To provide essential facilities and services and perform critical functions in the securities market. |
| April 13, 2023 |
Contribution by Eligible Issuers of Debt Securities to the Settlement Guarantee Fund of the Limited Purpose Clearing Corporation (LPCC) for Repo Transactions in Debt Securities. |
To strengthen the risk management system of the LPCC and to ensure that the corpus of the fund is adequate to meet the contingencies arising on account of failure of settlement commitments. |
| April 25, 2023 |
Bank Guarantees created out of Clients’ Funds |
To prevent the risk of the creation of bank guarantees out of clients’ funds by stock brokers and clearing members. |
3. Insurance Regulatory and Development Authority of India (IRDAI)
| Date |
Regulation |
Rationale |
| January 13, 2023 |
Circular on Sovereign Green Bonds (SGrBs)- Classification and Categorisation: Investment in Sovereign Green Bonds has been categorised as “Investment in Infrastructure” and shall be classified as “Central Government Securities”. |
To enable de-concentration and diversification of the infrastructure investment portfolio of the insurers and to encourage insurers to actively participate in sustainable development. |
| March 31, 2023 |
Guidance Note - Board policy of the insurer on the commission structure: Consequent to the notification of Payment of Commission regulations 2023, a “Guidance note - Board policy of the insurer on the commission structure” was issued. |
To provide key elements of the Board policy on commission structures for intermediaries. |
| March 31, 2023 |
Circular - Payment of Distribution Fees to Motor Insurance Service Provider (MISP): It stipulates that the distribution fees payable to MISP shall be as per Board approved policy towards payment of commission by the insurer. |
To withdraw extant instructions relating to maximum distribution fees payable to the MISP. |
| March 31, 2023 |
‘Use and File’ Procedure |
To enable dynamism as well as speed to market insurance products. |
| April 24, 2023 |
IRDAI Information and Cyber Security Guidelines, 2023 |
To enable the insurance industry to further strengthen their defences as well as the related governance mechanism to deal with emerging cyber threats. |
| April 24, 2023 |
Master Circular on Registration of Indian Insurance Company |
To specify various forms pertaining to Registration Regulations. |
| May 04, 2023 |
Instructions to stop the facility of repayment of loans through Credit Cards |
To stop the facility of re-payment of loans taken against life insurance policy through credit cards. |
| May 15, 2023 |
Modification of Surety Insurance Guidelines: The following modifications are made to the Surety Insurance Guidelines- (a) the mandate of maintaining 1.25 times of the control level of solvency is dispensed with and the Insurers shall maintain the solvency requirements as specified by the Authority from time to time and (b) the stipulation regarding the limit of guarantee that it shall not exceed 30 percent of the contract value has been removed. |
To help the insurance industry in releasing capital as maintenance of additional solvency reserve just because an insurer is underwriting surety contracts is considered not prudent. Also, the Surety Contracts are now made available to the extent of the requirements of varying markets. |
4. Pension Fund Regulatory and Development Authority (PFRDA)
| Date |
Regulation |
Rationale |
| November 14, 2022 |
Parallel Processing of Exit and Annuity Components for the Benefit of the National Pension System (NPS) Subscribers |
To simplify the process of issuing an Annuity by considering the NPS withdrawal form as the Annuity Proposal. |
| November 18, 2022 |
Change in Investment Guidelines - 2021 for NPS Schemes [Other than Govt. Sector {Central Government (CG) and State Government (SG)}, Corporate CG, NPS Lite and Atal Pension Yojana (APY)] and Change in Investment Guidelines – 2021 for NPS Schemes (Applicable to Scheme CG, Scheme SG, Corporate CG and NPS Lite schemes of NPS and APY) : For investment in debt instruments issued by InvIT/REIT, the limit has been increased from 10 per cent to 15 per cent of the total outstanding debt instruments issued by a single InvIT/REIT issuer (for all sectors) and the exposure norms shall not apply to any of the schemes under the private sector (scheme E/C/G) till the scheme AUM reaches ₹ 5 crore and to scheme A till the scheme AUM reaches ₹ 15 crore. |
To increase the limit for investment in debt instruments issued by InvIT/REIT and change the exposure norms for schemes under the private sector. |
| November 18, 2022 |
Change in Operational Guidelines for National Pension Scheme Tier II – Tax Saver Scheme, 2020 (NPS - TTS) |
To revise the investment limit for investment in money market instruments from 10 per cent to 20 per cent of the scheme corpus. |
| November 22, 2022 |
NPS Digital Onboarding through Central KYC (CKYC): The PFRDA has provided prospective subscribers another option for opening NPS Account through CKYC and the process is online and paperless. |
To empower NPS subscribers/ financial investors to complete their KYC only once for interacting with multiple service providers across the financial sector under the ambit of various Regulators Management Services CRA (CCRA). |
| November 30, 2022 |
e-NPS Government offers ease and convenience in account opening for the subscribers: PFRDA has enabled e-NPS for the benefit of government sector subscribers and the associated nodal offices. |
To provide the opportunity for the employees of the government sector and empower them to open NPS account with ease and a lot of convenience in a paperless mode. |
| December 09, 2022 |
NPS Prosperity Planner (NPP) for Adequacy in Retirement Income Planning: With NPP, the subscribers would be able to estimate the projected Retirement Income (Annuity) as per the Annuity options based on their existing contribution under NPS. NPP provides the tool for higher Retirement Income through an Accelerated Contribution plan in the residual period until retirement duly considering inflation and the projected cost of living expenses. |
To assist, empower and handhold the subscribers to plan for adequacy in retirement income. |
| January 04, 2023 |
Online Claim Processing by Intermediaries using Technology - Aadhaar and Video-based Customer Identification Process (VCIP): It has been decided to allow the intermediaries to use technological intervention by using VCIP as an added due diligence mechanism for verification of the nominee/claimant/legal heir while processing the withdrawal claims in case of death of NPS subscribers. |
To augment the existing due diligence efforts undertaken by the intermediaries and enabling faster processing of withdrawal claims. |
| January 10, 2023 |
Empowering APY Subscribers with ease of Aadhaar Seeding - Launch of Seeding Convenience through Central Record Keeping Agency (CRA) Portal and Mobile App |
To provide the facility of Aadhaar seeding for the benefit of Subscribers through the CRA portal and NPS Mobile app “APY and NPS Lite”. |
| January 12, 2023 |
Independent Bank Account Verification and Name/PAN Matching for enhanced due diligence using PRAN-PAN-VPA(UPI) using NPCI Framework: PFRDA has launched an advanced mode of bank account verification of the subscribers (PRAN- PAN- VPA(UPI)) with elegant features where the joint holder details, Permanent Account Number (PAN) and UPI IDs {Virtual Payment Address (VPI)} are verified through NPCI and matched with Permanent Retirement Account Number (PRAN). |
To eliminate errors in pay out process, facilitate matching of PAN seeded in PRAN and bank account and enable successful and timely processing of withdrawal request of subscriber who is the joint holder in bank account. |
| January 23, 2023 |
KYC / Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT) Guidelines |
In line with the requirements of the Prevention of Money Laundering Act, 2002 as per Regulation 15 of the PFRDA (Point of Presence) Regulations, 2018 guidelines for KYC/AML/CFT have been issued. |
| February 07, 2023 |
Minimum Timelines for Maximum Subscribers' benefits - Reduction in Turn Around Time to perform various activities from T+4 to T+2 |
To reduce the timelines of various transactions for providing better subscriber experience. |
| February 07, 2023 |
Reinvestment of Returned and Unsuccessful Transaction amount into the same PRAN and Ease of reclaiming the amount by Subscriber through My Withdrawal Module (MWM): In instances where the corpus of the subscribers could not be credited into their Savings Bank account because of incorrect bank account details, the subscribers can reclaim this ‘withdrawn but unclaimed’ amount in the prescribed format through the nodal officers, Points of Presence (POP), APY service providers, Central Record Keeping Agencies (CRAs) and NPS Trust (NPST). Further, to ease the process of reclaiming such amount, PFRDA through its CRAs will build a subscribers' digital MWM interface. Post-building the MWM, the amount which lies beyond one month without transferring to the beneficiary’s bank account shall be reinvested in the same PRAN. |
To benefit subscribers by enabling their ‘withdrawn but unclaimed’ amount which does not earn any investment returns to be reinvested in the same PRAN. |
| February 22, 2023 |
Mandatory upload of Withdrawal/ KYC documents to enable Parallel Processing of Exit and Annuity for the benefit of NPS Subscribers. |
To benefit subscribers by aiding timely payment of annuity income. |
| March 16, 2023 |
Financial Information (FI) types for balances under National Pension System (NPS): To ensure secured and seamless movement of data across financial institutions among financial sector regulators under different IT systems, a set of core technical specifications for the participants of the account aggregators (AA) ecosystem are framed by the Reserve Bank Information Technology Private Limited (ReBIT) for which PFRDA has issued FI types for Balances under NPS, published on ReBIT website under AA framework. |
To specify the FI types that will be the basis of information exchanges regarding balances under NPS that could be requested by a financial information user (FIU) through AA from CRAs. |
| March 20, 2023 |
Advisory on "Digital Safety Practices to be followed by Govt Nodal offices to access technological platform/system provided by Central Record keeping Agencies” under NPS architecture: To enable the Nodal offices to fulfil their function/role in the CRA system, the Nodal offices have been provided with separate maker-checker login IDs to access the CRA system so that any single user is not able to unilaterally execute the transaction. Further, all the nodal offices/officers in the Central Government Sector (including autonomous bodies) are advised to follow the digital safety practices under the NPS architecture as per the advisory while accessing the CRA system. |
To provide ease of transacting through post-pandemic digital/technological tools/ enhancement, together with security and safeguarding the interest of the NPS subscriber against digital threats and frauds. |
| March 23, 2023 |
Linking of PAN with Aadhaar: All existing subscribers are required to ensure linking of their PAN with Aadhaar number by March 31, 2023 for continual and smooth transactions and to avoid consequences of non-compliance, as such NPS accounts would be considered non-KYC compliant, and there could be restrictions on NPS transactions until the PAN and Aadhaar are linked. |
To comply with the Central Board of Direct Taxes (CBDT) circular No. 7 of 2022 dated March 30, 2022. |
6. Insolvency and Bankruptcy Board of India (IBBI)
| Date |
Regulation |
Rationale |
| November 2, 2022 |
Circular on ‘Annual Compliance Certificate for Insolvency Professional Agencies’: The circular was issued in consequence of amendments in the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. |
To issue a revised format of Annual Compliance Certificate for Insolvency Professional Agencies (IPAs) for submission to the Board. |
| November 9, 2022 |
Circular on ‘Review of Regulations’: The Board conducted an exercise to review existing regulations and circulars to determine circulars that already found place in existing regulations pertaining to service providers. |
The Board issued a fresh circular whereby it rescinded eleven of its earlier issued circulars. |
| November 22, 2022 |
Notification of Companies (Registered Valuers and Valuation) Amendment Rules, 2022 |
The amendments, inter alia, provide that no partnership entity or company shall be eligible to be a registered valuer (RV) if it is not a member of a registered valuer organisation (RVO). Further, the new rule stipulates that these entities should not be registered with more than one RVO at a given point of time. |
| November 24, 2022 |
Circular on ‘Payment of fees to the IBBI’ |
Circular was issued to all IPAs, Insolvency Professional Entities (IPEs) and Insolvency Professionals (IPs) conveying strict compliance on their part with respect to revision of existing fee structure, and introduction of a regulatory fee, payable by them to the Board. |
| December 10, 2022 |
Report on Enterprise Group Insolvency: The second part of the Report of the Cross Border Insolvency Rules/Regulations Committee, pertaining to enterprise group insolvency, based on the UNCITRAL Model Law on group insolvency, was made available in the public domain. |
The Committee has made recommendations in the context of the IBC to operationalise the group insolvency part. |
| December 21, 2022 |
Circular on ‘Proforma for reporting liquidator’s decision(s) different from the advice of Stakeholders’ Consultation Committee (SCC)’ |
To provide the proforma for reporting the liquidator’s decisions different from the advice given by the SCC for the purpose of filing of the same on the electronic platform of the Board, under regulation 31A (10) of IBBI (Liquidation Process) Regulations, 2016. |
| March 4, 2023 |
Circular regarding serving of copy of applications to the Board: The format for serving a copy of the application for initiation of CIRP to the Board was revised. |
To ensure filing of authentic information and further enable the Board to share this information with the Information Utilities (IU) efficiently. |
| June 16, 2023 |
Circular regarding application to initiate CIRP under sections 7 and 9 along with record of default issued by IU: In continuation of NCLT's order dated 3rd April, 2023, a circular was issued by the IBBI, advising applicants to append record of default issued by IU along with the application filed under section 7 or 9 of the Code. |
To facilitate effective hearing of cases and expedite admission of CIRP applications. |
7. International Financial Services Centres Authority (IFSCA)
| Date |
Regulation |
Rationale |
| November 16, 2022 |
Guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) for Market Infrastructure Institutions (MIIs) |
To provide essential facilities and perform systemically critical functions relating to trading, clearing and settlement in securities market during any unforeseen circumstance, as part of the operational risk management. |
| December 21, 2022 |
Circular on Distribution of Capital Market Products and Services: The framework includes measures relating to distribution of Capital Market Products to include a wide bouquet of securities as covered under the Securities Contracts (Regulation) Act, 1956 and Capital Market Services, which includes portfolio management services and investment advisory services. A comprehensive code of conduct has been prescribed to ensure distributors maintain high standards of integrity, disclosure, diligence, promptitude and fairness in their dealings with clients. |
To prescribe a regulatory framework for distribution of Capital Market Products and services under IFSCA (Capital Market Intermediaries) Regulations, 2021. |
| January 13, 2023 |
IFSCA (Insurance Products and Pricing) Regulations, 2022: The regulations provide a framework for designing and pricing of insurance products by IFSC Insurance Offices (IIOs). |
To ensure that IIOs have put in place effective internal systems and controls to identify and mitigate product related risks/ issues and protect the interest of the policyholders while designing and pricing such insurance products. |
| January 13, 2023 |
IFSCA (Investment by IIO) Regulations, 2022: The regulations, inter alia, provide for manners and processes of investment of assets of the IIOs, in various global jurisdictions, including India. The proposed regulations also provide for various matrices, guidance, and limitations on investments. |
To put in place the regulatory framework and processes related to investment of assets by an IIO. |
| January 13, 2023 |
IFSCA (Manner of Payment and Receipt of Premium) Regulations, 2022 |
To put in place the regulations regarding manner of payment of premium for insurance policy, assumption of risk, receipt or refund of premium and other terms and conditions, in accordance with Section 64 VB of the Insurance Act, 1938, for carrying on the insurance business in the IFSC. |
| January 13, 2023 |
IFSCA (Maintenance of Insurance Records and Submission of Requisite Information for Investigation and Inspection) Regulations, 2022 |
To specify minimum information required to be maintained by an IIO and an IFSCA Insurance Intermediary Office (IIIO) for the purposes of investigation and inspection. |
| January 13, 2023 |
IFSCA (Appointed Actuary) Regulations, 2022: The regulations, inter alia, provide for appointment of Appointed Actuary, his powers, duties and obligations. |
To lay down the regulatory framework for the persons who are authorised to perform the roles and discharge the functions of ‘Appointed Actuary’ for the IIOs. |
| January 18, 2023 |
Disclosures by Fund Management Entities for Environmental, Social or Governance (ESG) Schemes: The framework prescribed by IFSCA is principle-based and largely aligned with international best practices. The initial disclosures for ESG schemes in offer document/placement memorandum include name of scheme, its investment objectives and strategy and disclosure of risks and risk management practices etc. |
To lay down standards and practices (including guidance) for Fund Management Entities launching and managing ESG schemes. |
| March 01, 2023 |
Circular prescribing net worth for bullion exchange and bullion clearing corporation: This circular was issued to increase the net worth requirements of Bullion Exchange and Bullion Clearing Corporation in a gradual manner to ensure that their net worth is sufficient to accommodate the technological advancements in trading platforms and the nature and expected growth of their business including the leveraged products they may offer. |
To ensure that Bullion Exchange and Bullion Clearing Corporation’s net worth captures the risks they face. |
| March 03, 2023 |
Circular on Guidelines for execution of block deals on the Bullion Exchange: To facilitate execution of block deals, the Bullion Exchange is being permitted to provide a separate trading window for this purpose. A trade, with a minimum quantity of 100 kgs of gold, executed through a single transaction on separate trading window of the Bullion Exchange will constitute a “block deal” and only non-individual participants shall be permitted to execute block deals. |
To enable a mechanism for execution of large trades in gold in a single transaction without putting either the buyer or the seller in a disadvantageous position. |
| March 22, 2023 |
Amendment to the Circular- ‘Framework for Ship Lease’: This amendment has enabled Voyage Charters, Contract of Affreightments, employment in shipping pools and all other legal commercial transactions for employment of ships by ship leasing entities in IFSC. In addition to the above, ‘Asset Management Support Services’ has been extended to ‘group entities' of lessor in IFSC instead of limiting it only to the wholly owned subsidiary (ies) of the lessor and its branch set up in IFSCs in India. |
To enable voyage charter and other commercial transactions for employment of ships, as permissible activities under operating lease. |
| April 06, 2023 |
Addendum to Framework for enabling Ancillary services at IFSCs |
To enable Voice broking services to entities in IFSCs or from outside India in relation to their business of banking and Ship broking for permitted activities under “IFSCA Framework of Ship Leasing” |
| April 11, 2023 |
Notification of 'Aviation training simulation devices' as a financial product in IFSC |
To specify an operating lease (including a hybrid of operating and financial lease, in respect of ‘Aviation training simulation devices’) as a financial product. |
| April 13, 2023 |
IFSCA (Fund Management) (Amendment) Regulations, 2023 |
To specify where the funds of a client availing portfolio management services (other than those availing only advisory services) may be maintained. |
| April 13, 2023 |
IFSCA (Re-Insurance) Regulations 2023 |
To provide a framework for oversight and control of inward and outward arrangement of re-insurance business by the IIOs. |
| April 20, 2023 |
IFSCA (Assets, Liabilities, and Solvency Margin and Abstract of Actuarial Report for Life Insurance Business) Regulations, 2023 |
To specify the requirements related to capital, solvency and submission of abstract of actuarial report by an IIO for undertaking life insurance business. |
| April 20, 2023 |
IFSCA (Assets, Liabilities, and Solvency Margin of General, Health and Re-insurance business) Regulations, 2023 |
To specify the requirements related to capital and solvency for undertaking general, health, or re-insurance business by IIOs. |
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