Blog Archives

Reserve Bank of India (Digital Payment Security Controls) directions, 2021

Reserve Bank of India vide its statutory powers vested has issued the above directions which are applicable to all scheduled commercial banks (excluding Regional Rural Banks), Small finance banks, Payments banks and Credit card issuing NBFCs. They are reproduced from their website as under for those who intend referring to these complex technical directions. https://taxguru.in/rbi/master-direction-digital-payment-security-controls.html […]

Customer service in Banks – Redressal of complaints: Recent RBI guidelines

I am not amused by the recent directions issued by the Reserve Bank of India vide its communication dated RBI/2020-21/87 CEPD.CO.PRD. Cir. No.01/13.01.013/2020-21 dated January 27, 2021, titled ‘RBI releases framework for strengthening the grievance redress mechanism in banks’ with the following objective. “It has been decided to put in place a comprehensive framework comprising […]

RBI: Report on trend & progress of banking in India 2019-2020

The Reserve Bank of India vide its publication dated 29th December 2020 placed in its website the Report on trend and progress of banking in India 2019-2020 in pursuance of provisions of the Banking Regulations Act, 1949 as per details given below: https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/0RTP2020_F3D078985540A4179B62B7734C7B445C9.PDF Its 230 pages report is a treasure house of rare information on […]

RBI study: Price discrimination on over-the-counter currency derivatives

On December 15, 2020, the Reserve Bank of India placed on its website a Working Paper titled ‘Price Discrimination in Over-the-Counter Currency Derivatives’ under the Reserve Bank of India Working Paper Series. The paper is authored by Abhishek Kumar and Vidya Kamate, both, its brilliant staff members. As the name indicates the study deals with […]

Draft Certificate of Deposit (Reserve Bank) Directions, 2020- Analysis

Reserve Bank of India vides its communication FINANCIAL MARKETS REGULATION DEPARTMENT Notification No. FMRD.DIRD. XX /XX.XX.XXX/2020-21 dated December 4, 2020, placed on its web site the following for your comments which can be sent to [email protected] by January 31, 2021. https://taxguru.in/rbi/draft-certificate-deposit-reserve-bank-directions-2020.html The above directions were issued to all entities/agencies eligible to deal in Certificate of […]

RBI: Money Markets (Reserve Bank) Directions 2020- (Call, Notice and Term in nature)

Reserve Bank of India vides its communication dated FINANCIAL MARKETS REGULATION DEPARTMENT Notification No. FMRD.DIRD. XX /XX.XX.XXX/2020-21 dated December 4, 2020, placed on its web site the following for your comments which can be sent to [email protected] by January 31, 2021. https://taxguru.in/rbi/rbi-releases-draft-directions-money-market-instruments.html Let us understand these directions which are addressed to all entities/agencies eligible to […]

RBI: Governor’s recent speech – from foreign exchange/government bonds angle

Shri Shaktikanta Das, Governor, Reserve Bank of India, gave a lecture on ‘Accelerating Financial Market Reform in India’ at the 4th Annual Day of Foreign Exchange Dealers’ Association of India (FEDAI) on November 26, 2020, at Mumbai. Though the title involves an overhaul of total financial reforms in recent times in India, I studied its […]

Latest Ownership Guidelines & Corporate Structure for Indian Private Sector Banks- RBI

The Report of the Internal Working Group set up to Review extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks by Reserve Bank of India dated October 26, 2020, by four members team was submitted. As the name indicates this epoch-making event unlocks the mysteries of floating a private sector bank and the […]

RBI: NBFC Regulation- Looking ahead

Based on the brilliant lecture on the above subject by Shri M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India – November 6, 2020 – at the ‘National E-Summit on Non-Banking Finance Companies’ organized by ASSOCHAM, the following article traces its origin. It has been drawn from the RBI web site as under: https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1101 Though […]

RBI: Governor’s Statement – October 9, 2020 with green offshoots

The newly appointed Monetary Policy Committee (MPC) of Reserve Bank of India with Dr. Ashima Goyal, Professor Jayanth R. Varma, and Dr. Shashanka Bhide, as external members met on 7th, 8th, and 9th October 2020 in its first meeting and the 25th under the monetary policy framework that was instituted in June 2016. “The MPC […]

RBI: ‘Technology Vision for Cyber Security’ for Urban Co-op Banks- 2020-2023

Reserve Bank of India in tune with its policy to prepare Urban Co-operative Banks (UCB) for meeting the challenges of modern technological ways of extension of banking through Urban Co-operative banks issued a detailed communication dated 24th September 2020 titled ‘Technology vision for cybersecurity for urban co-operative banks’. It introduces the UCBs to get prepared […]

RBI: Inflation forecast combinations – The Indian experience

On 24th September 2020,  the Reserve Bank of India placed on its website a Working Paper titled ‘Inflation Forecast Combinations – The Indian Experience’ under the Reserve Bank of India Working Paper Series. The Paper has been authored by Joice John, Sanjay Singh, and Muneesh Kapur, from RBI though the views expressed were their personal […]

RBI: Measuring Financial Stress in India – A study

Reserve Bank of India in its RBI Working Paper Series No. 09 dated September 22, 2020, published a paper on its website which measures the financial stress in India focusing on the construction of financial stress indices for the Indian financial system using market-based indicators and three different aggregation methods. The paper finds that these […]

RBI: Role of COO –Discussion on compliance function in banks

RBI: Role of Chief Compliance Officer (COO)–Discussion on compliance function in banks Reserve Bank of India vides its communication dated September 11, 2020, informed that in order to have an effective compliance culture, independent corporate compliance function, and a strong compliance risk management program at the bank and group level, an independent compliance function is […]

RBI ask banks to automate Income recognition & NPA provision

RBI: Automation of Income recognition, asset classification and provisioning – latest guidelines RBI vide its communication September 14, 2020, informed the banks that in spite of its earlier instructions issued on August 04, 2011, to use IT system in place for identification of Non-Performing Assets (NPA) and generation of related data/returns, both for regulatory reporting […]

RBI: Kamath Committee – Resolution frame work for stressed accounts

From RBI web site, The Reserve Bank had, on August 7, 2020, announced the constitution of an Expert Committee under the chairmanship of Shri K.V. Kamath to make recommendations on the required financial parameters to be factored in the resolution plans under the ‘Resolution Framework for Covid19-related Stress’ along with sector-specific benchmark ranges for such […]

Reserve Bank of India: Priority Sector Lending Directions, 2020

Reserve Bank of India vides its Reserve Bank of India (Priority Sector Lending – Targets and Classification) Directions, 2020 dated 4th September 2020 issued a detailed circular, a mammoth exercise of consolidating 49 circulars/directions issued from 2007 till date. I am proud to write this article on this topic which keeps the course of RBI […]

RBI’s latest measures to Foster Orderly Market Conditions

RBI in its communication dated 31st August 2020 informed that it had announced special open market operations on August 25, 2020 and that it would continue to monitor evolving liquidity and market conditions and take measured steps for the orderly functioning of financial markets. We are aware that market sentiments were impacted by concerns relating […]

RBI Governor: Time for banks to look deeply within & reorient banking

Keynote Address by Shri Shaktikanta Das, Governor, Reserve Bank of India – Delivered at the Unlock BFSI 2.0 with Business Standard on Thursday, August 27, 2020, has been reported in RBI web site which is reproduced below: https://www.rbi.org.in/Scripts/BS_SpeechesView.aspx?Id=1099 His speech will be analyzed in the following manner: How COVID 19 forced RBI to take timely […]