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Master Direction update

i. Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022

-RBI/2022-23/92, DoR.AUT.REC.No.27/24.01.041/2022-23 dated 21.04.2022

-Master Direction – Credit Card & Debit Card – Issuance & Conduct Directions, 2022

-These Directions shall be effective from July 01, 2022.

Notifications update

ii. Bharat Bill Payment System – Amendment to guidelines

 iii. Housing Finance – Loans for repairs/additions/alterations – Enhancement of limits

  • Housing Finance – Loans for repairs/additions/alterations – Enhancement of limits
  • The ceiling on loans to individuals for carrying out repairs/additions/alterations to their dwelling units was revised upwards to ₹2 lakh in rural and semi-urban areas and ₹5 lakh in urban areas.
  • The ceiling on such loans is now revised to ₹10 lakh in metropolitan centres (those centres with population of 10 lakh and above) and ₹6 lakh in other centres.

iv. Guidelines on import of gold by Qualified Jewellers as notified by – The International Financial Services Centers Authority (IFSCA)

v. Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021 – Reporting of reverse repos with Reserve Bank on the bank’s balance sheet : Applicable to all commercial Bank.

  • RBI/2022-23/55, DOR.ACC.REC.No.37/21.04.018/2022-23 dated 19.05.2022
  • Please refer to the ‘Notes and Instructions for Compilation’ given in Part A of Annexure II to the Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021, regarding the reporting of reverse repo transactions by the banks on their balance sheet.
  • In order to bring more clarity on the presentation of reverse repo on the balance sheet, it has now been decided that All type of reverse repos with the Reserve Bank including those under Liquidity Adjustment Facility shall be presented under sub-item (ii) ‘In Other Accounts’ of item (II) ‘Balances with Reserve Bank of India’ under Schedule 6 ‘Cash and balances with Reserve Bank of India’.
  • Reverse repos with banks and other institutions having original tenors up to and inclusive of 14 days shall be classified under item (ii) ‘Money at call and short notice’ under Schedule 7 ‘Balances with banks and money at call and short notice’.
  • Reverse repos with banks and other institutions having original tenors more than 14 days shall be classified under Schedule 9 – ‘Advances’ under the following heads, ‘Cash credits, overdrafts and loans repayable on demand, Secured by tangible assets and Banks (iv) ‘Others’ (as the case may be).

vi. Regulations Review Authority (RRA 2.0) – Recommendations for Withdrawal of Circulars

  • RBI/2022-23/48, DoR.RRA.36/01.01.101/2022-23 dated 13.05.2022
  • https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=12315&fn=2&Mode=0

Summary of RBI notifications, Circulars for the month of May 2022

vii. Maintenance of Cash Reserve Ratio (CRR)

viii. Change in Bank Rate

ix. Legal Entity Identifier (LEI) for Borrowers

  • RBI/2022-23/34,DOR.CRE.REC.28/21.04.048/2022-23 dated 21.04.2022.
  • It has been decided that the guidelines on LEI stand extended to Primary (Urban) Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs). It is further advised that non-individual borrowers enjoying aggregate exposure of ₹5 crore and above from banks1and financial institutions (FIs)2 shall be required to obtain LEI codes as per the timeline given in the Annex.
  • Timeline for obtaining LEI by borrowers
Total Exposure LEI to be obtained on or before
Above ₹25 crore April 30, 2023
Above ₹10 crore, up to ₹25 crore April 30, 2024
₹5 crore and above, up to ₹10 crore April 30, 2025

x. Consolidated Circular on Opening of Current Accounts and CC/OD Accounts by Banks

xi. Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR)

PRESS RELEASES

  • For the Press Releases refer link https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx.

SPEECHES & INTERVIEWS

xii. Resolution of Stressed Assets and IBC

(Address delivered by Shri M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India – April 30, 2022 – in the International Research Conference on Insolvency and Bankruptcy held at IIM Ahmedabad)

  • He addressed on resolution of stressed assets and IBC. India has come a long way in improving the credit discipline in the country. However, as with any public policy, it is always a work in progress with scope for improvement at any time.

xiii. Governor’s (Shaktikanta Das) Interview with media on May 23, 2022

Key notes :-

  • He discussed on various topics on steps taken by RBI to cut down Inflation, OMO (Open Market operations), cryptos and Rupee Fluctuations.
  • For the inflation, the target for the advanced economies, for example, is 2 per cent; the USA is at 8.3 per cent; the United Kingdom is at 9 per cent; the euro area is more than 7 per cent;. except for Japan and one more country, all of them are in excess of 7 per cent. In India, our target is 4 per cent and we have a tolerance band which goes up to 6 per cent; we are 7.8 per cent.
  • On Cryptos, our position remains very clear. It will seriously undermine the monetary, financial and macroeconomic stability of India. And we stick to that position.  

The Author is a young practicing FCA based out at Ahmedabad, Gujarat, India, specialising in NBFC matters. She is also DISA, FAFP and FXTM. Her area of interest includes, amongst others, GST and Writing. She can be reached on +918879051225 or caswatipanchal@gmail.com.

Author Bio

She was enrolled as Member of the ICAI in 2012, she has cleared CA at First attempt and become CA at the age of 21 years only. She has secured rank in Gujarat University in M.Com Examination. She has passed Diploma Information System Audit (DISA) examination, a course conducted by ICAI. She has done View Full Profile

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