RBI
RBI comes up with scheme for retail investment into govt securities
The scheme, to help retail investors or individuals open and maintain the 'Retail Direct Gilt Account' (RDG Account) with the central bank, will be commenced in a later date, said an RBI statement. RDG Account can be opened through an online portal provided for the purpose of the scheme. The portal will also give the registered users facilities to access to primary issuance of Government securities and access to NDS-OM.
Give 10 days/yr leave to staff in sensitive areas, RBI to banks
"As a prudent operational risk management measure, the banks shall put in place a 'mandatory leave' policy wherein the employees posted in sensitive positions or areas of operation shall be compulsorily sent on leave for a few days (not less than 10 working days) in a single spell every year, without giving any prior intimation to these employees, thereby maintaining an element of surprise," the RBI said in a circular.
RBI asks banks to prepare for transition from LIBOR
"Banks and financial institutions are encouraged to cease, and also encourage their customers to cease, entering into new financial contracts that reference LIBOR as a benchmark and instead use any widely accepted ARR (Alternative Reference Rates), as soon as practicable and in any case by December 31, 2021," an RBI circular said on Thursday.
MSME registration now allowed for wholesalers, retailers: RBI to banks
The Ministry of Micro, Small and Medium Enterprises through an office memorandum had said that retail and wholesale trade would be classified as MSMEs for the limited purpose of priority sector lending and they would be allowed to be registered on Udyam Registration Portal. The beneficiary segments of the change in norm would be wholesale and retail trade and repair of motor vehicles and motorcycles,
Banks' exposure to better-rated large borrowers declining
Within the domestic financial system, credit flow from banks and capital expenditure of corporates remains muted, said a report by the central bank. "While banks' exposures to better rated large borrowers are declining, there are incipient signs of stress in the micro, small and medium enterprises (MSMEs) and retail segments," said the recently released Financial Stability Report for July 2021.
RBI red flags concerns around big tech in financial services
RBI's Financial Stability Report for July also noted that big tech offers a wide range of digital financial services and has a substantial footprint in the payment systems, crowdfunding, asset management, banking and insurance of several advanced and emerging market economies. It added that while this holds the promise of supporting financial inclusion and generating lasting efficiency gains, some important policy issues arise.
RBI Guv calls for sustained policy support, stronger capital buffer by banks
In his foreword to the Financial Stability Report for July 2021, Das said that while recovery is underway, new risks have emerged, including the still nascent and mending state of the upturn which is vulnerable to shocks and future waves of the pandemic. "Accordingly, sustained policy support accompanied by further fortification of capital and liquidity buffers by financial entities remain vital," Das said.
RBI raises average base rate for NBFC-MFI to 7.98%
The rate has been increased from 7.81 per cent that was applicable in the April-June quarter. "The Reserve Bank of India has today communicated that the applicable average base rate to be charged by Non-Banking Financial Company - Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning July 1, 2021 will be 7.98 per cent," said an RBI statement.
RBI bars MPs, MLAs from holding MD post in urban cooperative banks
These directions are applicable to all Primary (Urban) Co-operative Banks (UCBs). The RBI had exempted UCBs with a deposit size of less than Rs 100 crore from the requirement of seeking prior approval of the Reserve Bank for appointment / re-appointment / termination of appointment of MDs or WTDs.
RBI restricts continuous tenure of UCB MDs to 15 years
In the latest directions given by the RBI on appointment, re-appointment and termination process of MD and WTD of UCBs, the apex bank has said that an individual will be eligible for re-appointment as MD/WTD in the same bank even after finishing continuous 15 year tenure but only after a minimum gap of three years, subject to meeting other conditions.
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