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.
—–
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.
——
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
|
Approval in Three Stages
Stage I – 15 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
|
30 days |
|
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:
-
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.
-
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.
-
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.
- 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.