RBI announces Timelines for Regulatory Approvals and Citizens’ Charter for Delivery of Services

The Reserve Bank of India (RBI) today released on its website the ‘Timelines for Regulatory Approvals’ and ‘Citizens’ Charter’ for delivery of services as part of implementation of the non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC).

These timelines are indicative. If departments are likely to exceed the timeline, they will revert to the applicant.

In case an applicant does not get a response within the indicated timeline, they can approach the head of the concerned department. The department head will respond with the status of the application, the reason for delay, request for additional information, if any, as well as the likely time for disposal of the application.

Background

As per one recommendation of the FSLRC, all regulators are required to move to a time-defined approval process, subject to applicable laws, for all permissions including licence to do business, as well as launch of products and services.

Accordingly, the Reserve Bank has prepared timelines for regulatory approvals by its various departments and a Citizens’ Charter for delivery of services by its departments which have public interface.

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Citizens’ Charter

I. Public Accounts Department
Sr. No.	Description of Service	Time taken for providing Service
1.	Delivery of receipted challans tendered with cash	Within 20 minutes (depending upon volume and cash tendered)
2.	Delivery of receipted challans tendered with cheques issued by Government departments maintaining accounts with Reserve Bank of India	Within 30 minutes
3.	Delivery of receipted challans tendered with local cheques drawn on other banks	After 3 clear working days
4.	Delivery of receipted challans tendered with outstation cheques	7 days (for the four Metros) 15 days for other centers
5.	Submission of scrolls to Government departments	On next working day
6.	Submission of monthly statements to Government departments	On second working day of the following month
7.	Cash withdrawal by Government through cheques	20 minutes (Depending upon volume of withdrawal)
8.	Receipt of debit/credit scrolls from agency banks and reimbursement of claims/settlement	Day to day basis

II. Public Debt Office
Sr. No.	Description of Service	Time taken for providing Service
1.	Issue of Duplicate Securities (a) Government Promissory (G.P.)Notes	3 months from the date of publication in the Government Gazette
	(b) Duplicate Receipt	Within two days of admission of claim
2.	Payment of Interest Warrant
	(a) Stock Certificate	On due date
	(b) Subsidiary General Ledger (SGL)	On due date
	(c) Savings Bonds	On due date
3.	(a)Transfer	4 days
	(b)Change of enfacement	2 days from the date of receipt of special cancellation advice from the parent PDO
	(c) Conversion	4 days
4.	Credit to SGL account	3 days
5.	Issue of scrip by debit to SGL	2 days
6.	Receipt of Securities for repayment	5 days
7.	SGL Transfer	1 day
8.	Registration of Power of Attorney and Certification	1 day
9.	Other Services
	(a) Examination	1 day
	(b) Certificate of Registry of sale power	1 day
	(c) Renewal	6 days
	(d) Withdrawal from safe custody	1 day
10.	Revalidation of Interest Warrant	1 day
11.	Registration of Nomination	1 day

III. Deposit Accounts Department
Sr. No.	Description of Service	Time taken for providing Service
1.	Transfer (of funds from one bank’s current account to another bank’s current account in RBI)	Immediately once the instrument is received.
2.	Clearing	3 days
3.	Receipt of Cash	15 minutes (depending on the volume of tender)
4.	Withdrawal of Cash	20 minutes (depending on the volume of tender)
5.	Issue of Demand Draft	1 hour
6.	Issue of cheque books	20 minutes
7.	Furnishing of daily statement of accounts	The statements are available instantly for the account holders at their end online either in CBS-E-kuber portal or through Telebanking
8.	Refinance facility and disbursement of loans	Same day
The time frame indicates clear working days.

IV. Foreign Exchange Department
Sr. No.	Description of Service	Time taken for providing Service
1.	External Commercial Borrowing (ECB) / Foreign Currency Convertible Bonds (FCCB)
	Trade Credit under approval route	7 days
	Post servicing of automatic cases	15 days
	ECB/FCCB under approval route	30 days
2.	Foreign Investment
	Transfer of Shares (requiring prior RBI approval)	40 days
	Pledge of Shares	40 days
	Issue of licence for Branch/ Liaison Office	40 days
	Refund of advance remittance	7 days
	Foreign Collaboration – General Permission Route (FC-GPR) to be taken on record	40 days
3.	Indian Investment Abroad
	Investment in Overseas Joint Ventures and Wholly Owned Subsidiaries (not covered by automatic route)	40 days
	Disinvestment of shares in Overseas Joint Ventures/ Subsidiaries	40 days
	Other Overseas Investment under approval route	40 days
	Allotment of Unique Identification Number (UIN)	Instantly auto generated by the online reporting system
4.	Exports
	Permission for waiving GR Form formalities for exports	7 days
	Set Off / Write Off	7 days
	Export receivables / payables outside ACU mechanism	7 days
	Refund / retention of advance	7 days
	Imports
	Direct imports	7 days
	Third country / Merchanting trade / Warehousing	7 days
	Import receivables / payables outside ACU mechanism	7 days
	Items under Schedule III of Current Account Transaction (CAT) Rules – release of exchange beyond the stipulated limits
	(i) Travel related purposes	7 days
	(ii) Non-travel related purposes	7 days
5.	Others
	Issue / Renewal of Money Changer’s licence	40 days
	Compounding of contraventions of FEMA	180 days

V. Issue Department

The availability and modes of services relating to banknotes and coins will undergo changes on account of implementation of the policy for shifting of retail functions pertaining to currency management services from RBI to the commercial banks. The Citizens’ Charter is being appropriately modified to incorporate the above.

Notes:
These timelines are indicative and exclude the date of submission of the application and are subject to the application being complete in all respects.

If departments are likely to exceed the timeline, they will revert to the applicant.

In case an applicant does not get a response within the indicated timeline, they can approach the head of the concerned department. The department head will respond with the status of the application, the reason for delay, request for additional information, if any, as well as the likely time for disposal of the application.

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Timelines for Regulatory Approvals

I. Department of Banking Operations and Development

Sr. No.	Description of Regulatory Approval	Time required
1.	Private Bank Licence- In principle approval	90 days@
2.	Approval to banks for acquisition/transfer of shares of five per cent or more of paid up equity share capital of the bank	90 days
3.	Approval to banks for holding non-banking assets beyond 7 and up to 12 years, in terms of Section 9 of Banking Regulation Act, 1949	15 days
4.	‘In principle’ approval to banks for IPO, preferential issues of capital and qualified institutional placements	30 days
5.	Approval to banks for redemption of subordinated debt	15 days
6.	Approval to banks for establishing a subsidiary/joint venture/associate/making strategic investments in financial services companies	45 days
7.	Approval to banks for offering activities such as investment advisory services, portfolio management services or venturing into stock broking, mutual funds, venture capital funds, insurance or pension management departmentally	45 days
8.	Permission to banks for expanding the scope of para-banking activities of the bank/it’s subsidiary	45 days
9.	Permission to banks to retain investments in non-financial services companies beyond the prescribed prudential limits	45 days
10.	Approval to foreign banks having their business in India for substitution of Government / approved Securities held under Section 11(2)(b) of the Banking Regulation Act, 1949	5 days
11.	Approval to foreign banks having their business in India for deposit/withdrawal of Government / approved Securities held under Section 11(2)(b) of the Banking Regulation Act, 1949	5 days
12.	Appointment / re-appointment of whole time directors (MD & CEO / EDs/ Jt. MDs ) and Part-time Chairmen (non-whole time directors) in Private Sector Banks, including LABs	90 days
13.	Appointment / re-appointment of CEOs of Foreign Banks operating in India	90 days
14.	Remuneration Bonus and Employee Stock Option(ESOP) of whole time directors (MD & CEO / EDs/ Jt. MDs ) and Part-time Chairmen (non-whole time directors) of Private Sector Banks, including LABs	60 days
15.	Remuneration, Bonus and Employee Stock Option of CEOs of Foreign Banks operating in India	60 days
16.	Opening of branches under Annual Branch Expansion Plan (ABEP) in respect of banks for which the general permission granted to open the branches in Tier 1 centres in terms of Circular DBOD.BAPD. Nos. 54 & 60/ 22.01.001/ 2013- 14 dated September 19, and October 21, 2013 has been withdrawn	30 days
17.	Shifting of sole rural branches of banks outside the centre / village	15 days
18.	Shifting of rural branches of banks outside the block	15 days
19.	Part- shifting of a branch of bank	15 days
20.	Conversion of a rural branch of bank into satellite office	15 days
21.	Merger of Sole Rural / Semi Urban Branch of bank	15 days
22.	Closure of Rural Branches of banks	15 days
23.	Opening of branches under Annual Branch Expansion Plan (ABEP) of Local Area Banks	30 days
24.	Advances to banks’ Directors	90 days
25.	Staff Incentive Schemes by banks for deposit mobilization	90 days
26.	Authorisation for import of gold/silver by banks	60 days
@ The timeline for issue of in-principle approval for private sector bank licences commences from receipt of report from the Independent External Advisory Committee.

II. Department of Banking Supervision

Sr. No.	Description of Regulatory Approval	Time required
1.	Approval given to banks and Financial Institutions for Statutory Central Auditors and Statutory Branch Auditors
	i) Public Sector Banks:
	a) Statutory Central Auditors	15 days
	b) Statutory Branch Auditors	30 days
	ii) Private Sector Banks/Foreign Banks:
	a) Statutory Central Auditors	30 days
	b) Statutory Branch Auditors	30 days
	iii) Overseas branches of Indian Banks: Statutory Auditors	30 days
	iv) Select Financial Institutions: Statutory Auditors	21 days

III. Department of Currency Management/ Issue Department

Sr. No.	Description of Regulatory Approval	Time required
1.	Opening of currency chests (CCs) by banks In-principle Approval for CCs Approval for Construction of CCs Final Approval for CCs	Approval in Three Stages Stage I – 15 days Stage II – 15 days Stage III – Final Approval 10 days

IV. Department of Non-Banking Supervision

Sr. No	Description of Regulatory Approval	Time required
SRO
1.	Recognition to Self-Regulatory Organisation (SRO)	45 days
Non-Banking Finance Companies(NBFCs)
2.	Issue of Certificate of Registration (other than Securitization and Reconstruction Companies)	45 days
3.	NOC to sponsor Infrastructure Debt Fund by NBFC	30 days
4.	Change of control/ownership/management of an NBFC	30 days
5.	Change of name	30 days
6.	Shifting of company’s Registered Office and request for issue of fresh Certificate of Registration	30 days
7.	Issue of NOC for setting up of subsidiary/ Wholly Owned Subsidiary overseas	30 days
8.	Approval for exemption from the exposure norms in cases where public funds are not accepted	30 days
9.	Permission to invest in insurance companies	30 days
10.	Permission to convert NBFC from Category A (Accepting Deposits) to Category B (Non-Deposit Accepting)	30 days
11.	Conversion of existing NBFCs to other categories such as Core Investment Companies-Non Deposit taking-Systemically Important (CIC-ND-SI) , NBFC-Micro Finance Institutions (NBFC-MFIs), NBFC-Infrastructure Finance Companies (IFCs) and NBFC-Factors	30 days
12.	Opening of branches (> 1000 in number) by NBFCs primarily into lending against gold jewellery	30 days
13.	Opening of branches by NBFCs-Deposit taking	30 days
14.	Issue of co-branded credit cards and pre-paid payment instruments	30 days
15.	Distribution of mutual fund products	30 days

V. Department of Payment and Settlement Systems

Sr. No.	Description of Regulatory Approval	Time required
Financial Market Infrastructure
1.	Authorisation for Financial Market Infrastructure e.g. Central Counter Party, Trade Repository, etc.	120 days @
Retail Payment System
2.	Authorisation for Retail Payment System (including Card Payment Networks, Cross Border Money Transfer, ATM Network, Prepaid Payment Instrument Operators, White Label ATM Operators, etc.)	120 days #
@ –The proposals are put up for approval to Board for Payment and Settlement Systems (BPSS) which meets once in a quarter. # – Payment and Settlement Systems Act, 2007 [Sec 7(4)] states that RBI shall endeavour to dispose of applications for Authorisation within six months from the date of filing. The proposals get approved in the BPSS meeting that meets once in a quarter.

VI. Foreign Exchange Department

Sr. No.	Description of Regulatory Approval	Time required
1.	a) Trade Credit under approval route	7 days
	b) Post servicing of External Commercial Borrowing (ECB)/ Foreign Currency Convertible Bond (FCCB) under Automatic and Approval route	15 days
	c) ECB/FCCB proposals under Approval route	30 days
2.	NOC/approval for Employee Stock Ownership Plan(ESOP) not covered under general permission Rights Issue not covered under general permission Permission for investment by erstwhile Overseas Corporate Body(OCB) NOC for repatriation of share application money beyond 180 days Extension for retention of share application money beyond 180 days Conversion of shares from non-repatriation basis to repatriation basis Approval for holding share application money in foreign currency in India/ abroad Approval for registration of Foreign Venture Capital Investor(FVCI) Increase in holdings in a company beyond the limit to 24 % up to sectoral cap/ statutory ceiling	30 days
	Approval for Pledge of shares	40 days
3.	Receipt of Capital Contribution	30 days
4.	a)Transfer of shares from Non Resident Indian (NRI) to Non Resident(NR)	40 days
	b) Gift of shares from Resident to NRI c) Delay in reporting d) Permission for opening of escrow account by Authorised Dealer(AD) Category – I bank beyond the period of 6 months for effecting transfer of shares	60 days
5.	a) Permission for establishment of new Liaison Office(LO)/ Branch Office(BO) in India under Approval Route	40 days
	b) Approval for establishing additional LO/BO in India. c) Permission for shifting LO/BO to another city.	10 days on receipt of Government approval
	d) Permission for opening LO/BO/ Project Office(PO) by entities from China, Hong Kong, Macau, Pakistan, Bangladesh, Afghanistan, Sri Lanka and Iran	10 days on receipt of Government approval
	e) Permission for establishing PO in India which require GOI approval	10 days on receipt of Government approval
6.	Permission to open foreign currency account in India	60 days
7.	To open foreign currency account outside India	60 days
8.	To open Non Resident Ordinary(NRO) account in consultation with the MoF, GoI	30 days on receipt of Government approval
9.	To receive salary outside India in foreign currency account	90 days
10.	For transfer/acquisition of immovable property not covered under general permission in terms of Foreign Exchange Management Act(FEMA) 21	30 days on receipt of Government approval
11.	Approvals given for proposals regarding miscellaneous external payments of permissible Current and Capital Account transactions	30 days
12.	a) Investment in Overseas Joint Ventures and Wholly Owned Subsidiary(WOS) (not covered by automatic route) b) Other overseas Investment under approval route	40 days
	c) Disinvestment of shares in Overseas Joint Ventures / Subsidiaries	40 days
	d) Allotment of Unique Identification Number (UIN)	Instant online allotment
13.	Issue and Renewal of fresh AD Category(Cat)-I licence	30 days
14.	Issue of fresh AD Cat-II licence	90 days
15.	Issue and Renewal of fresh AD Cat-III licence	30 days
16.	Issue of fresh licence to conduct Money Transfer Service Scheme(MTSS) business	45 days
17.	Issue of first permission to undertake Rupee Drawing Arrangement (RDA) scheme	30 days
18.	Approvals to take Insurance policies from insurance companies in foreign countries.	7 days
19.	Compounding of contraventions of FEMA	180 days
20.	Issue/ Renewal of Money Changer’s licence	40 days

VII. Financial Markets Department

Sr. No.	Description of Regulatory Approval	Time required
1.	NDS-CALL membership	7 days*
2.	Intra-day Limit (IDL) setting for RTGS members	7 days*
* The timeline indicates clear working days, excluding date of receipt of application

VIII. Internal Debt Management Department

Sr. No.	Description of Regulatory Approval	Time required
Bank Primary Dealers (carrying PD business departmentally)
1.	1. Licence for Primary Dealer Business	90 days
	2. Termination of PD licence	90 days
Standalone Primary Dealers
2.	3. Licence for Primary Dealer Business	90 days
	4. Termination of PD licence	90 days
	5. Change in shareholding pattern	45 days
	6. For undertaking Portfolio Management Services	60 days
	7. To act as market makers for the Credit Default Swaps (CDS)	45 days
	8. Diversification of activities by PD	45 days
	9. Declaration of Dividend – (In case there are special reasons or difficulties for any PD in strictly adhering to the guidelines relating to Dividend, it may approach RBI in advance for an appropriate ad hoc dispensation in this regard)	45 days

IX. Rural Planning and Credit Department

Regulatory approvals granted without involving other departments/agencies

Sr. No.	Description of Regulatory Approval	Time required
State and Central Co-op. Banks
1.	Grant of loan/advance against the security of NRE deposits to a resident individual/ firm/ company in India	30 days
2.	Disposal of non-banking assets	30 days
3.	Investment in shares of other Co-operative Societies situated outside the area of the co-operative bank	30 days
4.	Permission to make investments in non-SLR securities	30 days
5.	Retirement of investments made in the deposits of PSUs / Companies / Corporations / UCBs / NBFCs, etc. and investments in mutual funds, non- PSU bonds – Approval of time-bound programme by Regional Office	30 days

Regulatory approvals involving inter-office/inter-agency coordination

Sr. No.	Description of Regulatory Approval	Time required
State and Central Co-op. Banks
1.	Grant of banking licence	30 days
2.	Permission to make investments in non-PSU bonds where prescribed criteria are not met	30 days
3.	Permission to issue Long Term (Subordinated) Deposits and Innovative Perpetual Debt Instruments	30 days
4.	Permission to take up insurance business and renewal thereof	30 days
5.	Permission for commencing co-branded credit card business and renewal of permission	30 days
State Co-op. Banks
6.	Grant of branch licence to State Co-op. banks	30 days
7.	Grant of permission to open Extension Counters	30 days
8.	Permission for opening specialized branches for conducting forex business, etc., and for up-gradation of existing extension counters into full-fledged branches	30 days
9.	Permission for shifting of a bank branch to a different locality/municipal ward other than the one mentioned in the licence	30 days
10.	Inclusion in the 2nd Schedule to RBI Act 1934	30 days
Regional Rural Banks
11.	Inclusion in Second Schedule of RBI Act	45 days
12.	Exclusion from Second Schedule of RBI Act	45 days
13.	Grant of branch licence	45 days
14.	Grant of licence for opening of service branch, Regional Offices	45 days
15.	Permission for shifting of branches outside the locality/municipal ward at semi-urban / urban / metropolitan centres	45 days
16.	Permission of conversion of satellite offices into full-fledged branches	45 days
17.	Permission for opening of extension counters	45 days
18.	Permission for upgradation of extension counters into full-fledged branches	45 days
19.	Permission for setting up of ultra-small branches	45 days
20.	Grant of branch licence	45 days
21.	Grant of licence for opening of service branch, Regional Offices.	45 days
22.	Permission for shifting of branches outside the locality/municipal ward at semi-urban / urban / metropolitan centres	45 days
23.	Appropriation from the Reserve Fund under Section 17(2) of the BR Act, 1949	45 days

X. Urban Banks Department

Sr. No.	Description of Regulatory Approval	Time required
1. Approvals/Permissions given by Central Office
1.	Extension of Area of Operation i) beyond adjoining districts and to the entire State of registration ii) beyond the State of registration iii) for multi-state UCBs	90 days
2.	Shifting of branches – Request from UCBs not conforming to the FSWM (Financially Sound and Well Managed) criteria for shifting of their offices/branches outside the centre/State	90 days
3.	Shifting of branches of UCBs outside the State of registration	90 days
4.	Permission to undertake intra-day short selling of G-Secs	90 days
5.	Permission to extend unsecured advances up to 25% of total assets subject to conditions prescribed in our circular dated April 3, 2010	90 days
6.	Remission of Debt of Director related loans	90 days
7.	Grant of permission for raising Long Term (Subordinated) Deposits (LTD)/ Perpetual Non-Cumulative Preference Shares (PNCPS)/ Conversion of deposits to equity	90 days
2. Approvals/Permissions given by Regional Offices
8.	Shifting of offices to different wards/municipal areas	45 days
9.	Extension of time for submission of Form – V (Furnishing of details of Branches opened)	90 days
10.	Change of address to same municipal ward, post issue of authorization but before opening of branch	90 days
11.	Authorisation for opening of branches under Annual Business Plan and new off-site ATMs	90 days
12.	Approval for opening of specialized branches by UCBs	90 days
13.	Permission to extend internet banking facility to customers	90 days
14.	Permission for payment of dividend	90 days
15.	Change in name of bank	90 days
16.	Authorization to maintain/renew NRE accounts	90 days
3. Other applications received by the Department for recommendations but approvals/permissions granted by other Departments /Organisations
17.	Approvals related to Centralised Payment System	90 days
18.	MTSS	90 days
19.	AD-I and AD-II category licences	90 days
20.	Opening of current account/SGL account	45 days
21.	Clearing House memberships	45 days
22.	NDS-OM Membership	90 days
23.	Permission to extend mobile banking to customers	90 days
24.	Banker to Issue	90 days
25.	Merchant Banking	90 days

Footnotes:

1. All the above estimated timelines for regulatory approvals of various departments (I to X) are anticipated to be met by in most cases, but a few may exceed these timelines.

2. If departments are likely to exceed the timeline, they will revert to the applicant.

3. In case an applicant does not get a response within the indicated timeline, they can approach the head of the concerned department. The department head will respond with the status of the application, the reason for delay, request for additional information, if any, as well as the likely time for disposal of the application.

4. In some situations, a change in procedure or in the environment will change the estimated time for action. In such cases, the timeline for approval will be modified appropriately.

5. The timelines given in column 3 for all above Departments (I to X) are subject to receipt of complete information/documents from the banks/Institutions concerned as well as receipt of regulatory/supervisory inputs/due diligence reports/approvals from other regulators and the concerned Government Agencies/Departments.