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A K GUPTA'S

BANKERS TRAINING INSTITUTE


(75, Block BG-1, Paschim Vihar, New Delhi -110063)

Tele: Oil 65476949, Oil 25274157

SUMMARY OF RBI GUIDELINES

DELHI: 01165476949, Oil 25274157, 09350476949


Website: www.bankerstrajninglnstltute.com
Erhail: akg.bti @gmail.com
CODE 71022160
A K GUPTA'S BANKERS TRAINING INSTTIVTE(75, Block BG -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,Oil 25274157,09350476949)

MOST IMPORTANT QUESTIONS BASED ON RBI GUIDELINES

IMPORTANT POLICY/BANKIN G RATES


Bank Rate 6.25% (02.08.17)
Repo Rate 6.00% (02.08.16)
Reverse Repo Rate 5.75% (02.08.17)
Marginal Standing Facility Rate 6.25% (02.08.17)
CRR (%aqe of NDTLs) 4.00% (09.02.13)
SLR (%aqe of NDTLs) 19.50% (14.10.17)

IMPORTANT RBI NOTIFICATIONS


Agency Commission for GST receipt transactions (November 16, 2017): Agency banks are required to submit their
claims for agency commission In the prescribed format to CAS Nagpur in respect of Central government transactions and
the respective Regional Office of RBI for State government transactions. However, agency commission claims with respect
to GST receipt transactions will be sectled at Mumbai Regional Office of RBI only and accordingly all agency banks,
authorized to collect GST, should submit their agency commission claims pertaining to GST receipt transactions at Mumbai
Regional Office only.
2. Xncluslon of Uticarsh Small Finance Bank Limited" In the Second Schedule to the Reserve Bank of India Act
1934: (November 16, 2017): vide Notification dated October 4, 2017 '
3. Banking Fadlity for Senior Citizens and Differently abled Persons (November 9, 2017): RBI has observed that
there are occasions when banks discourage or turn away senior citizens and differently abled persons from availing banking
facilities in branches. Notwithstanding the need to push digital transactions and use of ATMs, it is imperative to be sensitive
to the requirements of senior citizens and differently abled persons. In view of the above, banks should put in place
appropriate mechanism with the following specific provisions for meeting the needs of such customers so that they are able
to avail of the bank's services without difficulty, (a) Dedicated Counters/Preference to Senior riti7ens. Differentiv abled
persons: Banks should provide a clearly identifiable dedicated counter or a counter which provides priority to senior citizens
and people who are differently abled including visually impaired persons, (b) Ease of submittino I ifp Certificate: As per
extant guidelines, in addition to the facility of Digital Life Certificate under "Jeevan Praman" Scheme, pensioners can submit
physical Life Certificate form at any branch of the pension paying bank. However, often the same is not updated promptly
by the receiving branch in the Core Banking Solution (CBS) system of the bank, resulting in avoidable hardship to the
pensioners. RBI has, therefore, advised that banks shall ensure that when a Life Certificate is submitted In any branch
including a non-home branch, of the pension paying bank, the same is updated/ uploaded promptly in CBS by the receiving
branch itself, to avoid any delay In credit of pension, (c) Cheque Book Facility; (i) Banks shall issue cheque books to
customers, whenever a request is received, through a requisition slip which is part of the cheque book issued earlier, (ii)
Banks should provide minimuni 25 cheque leaves every year, if requested, in savings bank account, free of charge, (ill)
Banks shall not insist on physical presence of any customer including senior citizens and differently abled persons for
getting cheque books. (Iv) Banks may also issue cheque books, on requisition, by any other mode as per bank's laid down
policy. Providing such facility in BSBDA will not render the account to be classified as non-BSBDA.(d) Automatic conversion
of status of accounts: Presently, in some banks, even fully KYC - compliant accounts are not automatically converted into
Senior Citizen Accounts on the basis of date of birth maintained in the bank's records. RBI has advised that a fully KYC
compliant account should automatically be converted into a 'Senior Citizen Accounf based on the date of birth available in
banks records, (e) Additional Facilities to visually impaired customprg; The facilities provided to sick/old/incapacitated
persons regarding operations of accounts through identification of thumb/toe impression/mark by two independent
Witnesses and authorising a person who would withdraw the amount on behalf of such customers) shall also be extended
to the visually impaired customers, (f) Ease of filing Form ISG/H: Banks should provide senior citizens and differently abled
persons Form 15G/H once in a year (preferably in April) to enable them to submit the same, where applicable, within the
^ipulated tinie.(g) Dcyr Step Banking: In view of the difficulties faced by senior citizens of more than 70 years of age and
differently abled or innrm persons (having medically certified chronic illness or disability) including those who are visually
impaired, banks should make concerted effort to provide basic banking facilities, such as pick up of cash and instruments
against receipt, delivery of cash against withdrawal from account, delivery of demand drafts, submission of Know Your
Customer (KYC) documents and Life certificate at the premises/ residence of such customers. The aforesaid guidelines
should be implemented by December 31, 2017.
4. Inclusion of Au Small Finance Bank Limited" in the Second Schedule of the Reserve Bank of India Act, 1934
(November 09, 2017) vide Notification dated September 18, 2017.
5. RBI clarifies that linking Aadhaar to bank accounts is mandatory (Oct 21, 2017): RBI has clarified that in
applicable cases, linkage of Aadhaar number to bank account is mandatory under the Prevention of Money-laundering
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG - I, Paschlm Vlhar, New Delhi- 110063; PhOll 65476949, Oil 25274157,09350476949)

(Maintenance of Records) Second Amendment Rules, 2017 published in the Official Gazette on June 1, 2017. These Rules
have statutory force and, as such, banks have to Implement them without awaiting further instructions.
6. Gold Monetlsatlon Scheme (October 17, 2017): RBI has decided that reimbursement of payments made by banks,
relating to Medium and Long Term Government Deposit(MLTGD), will be made by Central Account Section (CAS), Nagpur,
RBI. Banks should Immediately pay the interest amount already due to the depositors and to take note that. In future,
payment of Interest to the depositors is to be made on the due dates. After making payments, the banks may raise claim to
Government through RBI (CAS, Nagpur).
7. Scheme of Penalties for bank branches based on performance in rendering customer service to the members
of public (October 12, 2017): 1. Penalties: Penalties to be imposed on banks for deficiencies in exchange of notes and
coins/remittances sent to RBI/operatlons of currency chests etc. are as follows:
Sr.No. Nature of Irregularity Penalty
I. Shortages In soiled note remittances and currency chest For notes in denomination upto Rs.50: Rs.50/- per piece
balances In addition to the loss
For notes in denomination of Rs.lOO & above: Equal
to the value of the denomination per piece In
addition to the loss.
Shortages of 100 pieces and above per remittance
shall be debited immediately. Penalty may be levied
on reaching a limit of 100 pieces In a cumulative
manner.
Counterfeit notes detected in soiled note remittances Penalty on account of detection of counterfeit notes by
and currency chest balances. RBI from soiled note remittance of banks and in
currency chest balances shall be levied as given
below: Penalty at 100% of the notional value of
counterfeit notes, in addition to the recovery of loss
to the extent of the notional value of such notes,
will be Imposed under the following circumstances:
a) When counterfeit notes are detected In the soiled
note remittance of the bank, b) If counterfeit notes
are detected In the currency chest balance of a
bank during Inspection / Audit by RBI
III. Mutilated notes detected In soiled note remittances and Rs 50/- per piece Irrespective of the denomination
currency chest balances Mutilated notes of ICQ pieces and above per
remittance shall be debited Immediately. Penalty
may be levied on reaching a limit of 100 pieces In a
cumulative manner.
Non-compliance with operational guidelines by currency Penalty of Rs 5000 for each irregularity. Penalty will be
chests detected by RBI officials enhanced to Rs.10,000 in case of repetition. Penalty
a) Norr-functioning of CCTV will be levied Immediately.
b) Branch cash/documents kept in strong room
c) Non-utillzatlon of NSMs for sorting of notes
(NSMs not used for sorting of high denomination
notes received over the counter or not used for
sorting notes remitted to chest/RBI)
V. Violation of any term of agreement with RBI (for Rs 10,000 for any violation of agreement or deficiency
opening and maintaining currency chests) or of service.
deficiency in service in providing exchange facilities,
as detected by RBI officials e.g.. Rs 5 lakh In case there are more than 5 instances of
a) Non-issue of coins over the counter to any violation of agreement/deficiency In service by the
member of public despite having stock. branch. The levy of such penalty will be placed In
b) Refusal by any bank branch to exchange soiled public domain.
notes / refusal by any currency chest branch to
adjudicate mutilated notes tendered by any Penalty will be levied immediately.
member of public
c) Non conduct of surprise verification of chest
balances, at least at bimonthly Intervals, by officials
unconnected with the custody thereof and by the
officials from the Controlling Office once in six
months.
d) Denial of facilities/services to linked branches of
A K GUPTA'S BANKERS TRAINING INSniUTE(75, Block BG -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,Oil 25274157,09350476949)

Other banks.
e) Non acceptance of lower denomination notes
(i.e. denomination of Rs 50 and below) tendered by
members of public and linked bank branches.
f) Detection of mutilated /counterfeit notes in re-
issuable packets prepared by the currency chest
branches.
Operational Guidelines on levy of penalties: The Competent Authority to decide the nature of Irregularity will be the Officer-
in-Charge of the Issue Department of the Regional OfHce under whose jurisdiction the defaulting currency chest/bank
branch is located. Appeal against the decision of the Competent Authority may be made by the Controlling Office of the
currency chest/branch to the Regional Director of the Regional Office concerned, within one month from the date of debit
who may decide whether the same can be accepted/ rejected. Appeals for waiver of penalty made on grounds such as
staff being new/untrained, lack of awareness of staff, corrective action having been taken/will be taken, etc. will not be
8. ^vereign Gold Bond Scheme (October 06, 2017): Government of India has vide notification dated October 06 2017
has announced the Sovereign Gold Bond Scheme. Under the scheme SGBs (The Bonds) will be issued in a series of weekly
issuances which will be open for subscription from Monday to Wednesday of every week starting from October no 2017
^e terms and conditions of the issuance of the Bonds shall be as follows: 1. Eliaibilitv for TnvP«^mpnf The Bonds under
this Scheme rnay be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf
of minor child, or jointly with any other individual. The bond may also be held by a Trust, Charitable Institution and
University. 2. Form of Security: The Bonds shall be issued in the form of Government of India Stock. The investors will be
issued a Holding Certificate. The Bonds shall be eligible for conversion into de-mat form. 3. Date of issiipr The bond shall
^e issued on the first business day of next week for the applications received during a given week. 4. Calendar nf T<:«;iianrp-
■me ^vereign Gold Ponds will be issued every week from October 2017 to December 2017. 5. Denomination- The Rnnd^
shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be one
gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUP) and 20 kg for
tru^ and simitar entities notified by the government from time to time per fiscal year (April - March), provided that annual
ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased
from the secondary market; and the ceiling on investment will not include the holdings as collateral by banks and other
Financial Institutions. SJssue Price: Price of the Bonds shall be fixed in Indian Rupees on the basis of simple average of
closing price of gold of 999 purity published by the India Bullion and Jewelers Association Limited for the last three business
days of the week preceding the subscription period. The issue price of the Gold Bonds will be Rs 50 per gram less than the
nomin^ value to those investors applying online and the payment against the application is made through digital mode. 7.
invSmpnt 11 be paidh in half-yearly
investment. Interest shall i/^ rests and the last interest shall be payable on maturity^mouot
along of
withinitial
the
Offices: Scheduled Commercial Banks (excluding RRBs), designated Post Offices (as may be
notified), Stixk Holding Corfwration of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of
India Umrted and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or
70 000/ nfn^rnL
20,000/- or Dernand n
Drafts or Cheque or Electronic banking. Where payment is made through chequeUp to a maximum
or demand draftofthe
Rs
sarne shall be drawn in favour of receiving office. 10. Redemption: i) The Bonds shall be repayable on the expiration of
eight years from t_ .e date of issue of Gold bonds. Pre-mature redemption of the Bond is permitted from fifth year of the
redemption price shall be fixed in Indian Rupees and the redemption
pi ice shall be based on sirnple average of closing price of gold of 999 purity of previous 3 business days from the date of
repayment, publish^ by the India Bullion and Jewelers Association Limited. 11. Repavment: RBI/depository shall inform
fSLRV Thrhnldin^ f rh ""f ^ maturity. 12. Eligibilitv for Statutory Liquidity Ratio
Loan aqain^ iSS.Bonds. Th p H may^ be
The Bonds ^ usedf ascollateral
collateralshallforbeloans.
counted
The towards
Loan toStatutory
Value ratioLiquidity
will beRatio holding. 13.to
as applicable
authorbPriT;,!^^^^^ mandated by the RBI from time to time. The lien on the Bonds shall be marked in the depository by the
1^1 Thfi. I* Interest on the Bonds shall be taxable as per the provisions of the Income tax Act,
hp nrnlwoH r 1 3" individual has been exempted. The indexation benefits will
rfnrin!! h I1 be made
cancellation sha T in Form D and Form 'E', respectively. 16. Transferabi'-h/: TheNomination:
Bonds shallNomination and by
be transferable its
of transfer as in Form T', 17. Tradability of bonds: The Bonds shall be eligible for trading from
QhSh h«
shall be npaidH at the rate off rupee
^ oneReserve Bank of of
per hundred India.
the 18.
totalCommission
subscriptionforreceived
distribution: Commission
by the receiving for distribution
offices on the
appli^tions received and receiving offices shall share at least 50% of the commission so received with the agents or sub-
agents for the business procured through them.
9. r^intenance of SLR and holdings of SLR in HTM categorv (October 4, 2017) RBI has decided to reduce the SIR
requirement of banks from 20.0 per cent of their Net Demand and Time Liabilities (NDTL) to 19.5 per cent from the
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vlhar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

fortnight commencing October 14, 2017. Currently, the banks are permitted to exceed the limit of 25 per cent of the total
investments under HTM category, provided the excess comprises of SLR securities and total SIR securities held under HTM
category are not more than 20.5 per cent of NDTL. In order to align this ceiling on the SLR holdings under HTM category
with the mandatory SLR, RBI has decided to reduce the ceiling from 20.5 per cent to 19.5 per cent in a phased manner, i.e.
20 per cent by December 31, 2017 and 19.5 per cent by March 31, 2018. Further, as per extant instructions, banks may
shift investments to/from HTM with the approval of the Board of Directors once a year, and such shifting will normally be
allowed at the beginning of the accounting year. In order to enable banks to shift their excess SLR securities from the HTM
category to AFS/HFT to comply with instructions stated above, RBI has decided to allow such shifting of the excess
securities and direct sale from HTM category. This would be in addition to the shifting permitted at the beginning of the
accounting year. I.e., in the month of April. Such transfer to AFS/HFT category as well as sale of securities from HTM
category, to the extent required to reduce the SLR securities In HTM category in accordance with the regulatory
instructions, would be excluded from the 5 per cent cap prescribed for value of sales and transfers of securities to/from
HTM category.
10. North East Small Finance Bank Limited commences operations (Oct 17, 2017): North East Small Finance Bank
Limited has commenced operations as a small finance bank with effect from October 17, 2017. RGVN (North East)
Microfinancc Limited, Guwahati was one of the ten applicants which were issued in-principle approval for setting up a small
finance bank.
11. Lending to non-corporate farmers - System wide average of last three years (September 21, 2017): RBI, vide
circular dated July 16, 2015 had advised banks to ensure that their overall direct lending to non-corporate farmers does not
fall below the system-wide average of the last three years achievement failing which they will attract the usual penalties for
shortfall. In this regard, the applicable system wide average figure for computing achievement under priority sector lending
for the FY 2017-18 is 11.78 percent.
12. Reimbursement of Merchant Discount Rate (MDR) Charges for Government transactions up to Rs.l lakh
through debit cards (September 7, 2017): As per extant guidelines, the Government of India (Gol) will absorb the
Merchant Discount Rate (MDR) charges in respect of debit card transactions while making payments to Gol. In order to
operationalise the above, RBI will reimburse banks the MDR on debit cards used for payment of tax and non-tax dues to
the Government of India with effect from January 1, 2017. Agency banks are required to forward their claim for
reimbursement of MDR to RBI on a quarterly basis. RBI has now, clarified that the full amount paid to the Government by
the customers / through debit / credit cards should be remitted to the concerned Government Ministry / Department. The
reimbursement of MDR charges on debit card use (up to Rs.one lakh) can be claimed from RBI separately. Deduction of
MDR charges from the receipts of government is not permissible at all. MDR charges on debit card transactions above
Rs.one lakh and on any credit card transaction are not being absorbed by Government of India and hence will not be
reimbursed by RBI.
13. Use of sophisticated machines for processing currency notes (Sep 10, 2017): RBI uses sophisticated Currency
Verification & Processing (CVPS) machines for checking the numerical accuracy and genuineness of the currency notes,
including SBNs. These machines are superior to the note counting machines.
14. Inclusion of ""Ujjivan Small Finance Bank Limited" in the Second Schedule to the Reserve Bank of India Act,
1934(September 07, 2017) vide Notification dated July 3, 2017.
15. Inclusion of ^^Surycday Small Finance Bank Limited" in the Second Schedule to the Reserve Bank of India
Act, 1934(September 21, 2017) vide Notification dated July 24, 2017.
16. Appointment of nominated counsel in the Hon'ble High Court of Delhi at New Delhi (August 14, 2017): In Writ
Petition (C) No. 1088 of 2017(M/s J.K Jewellers vs. Capri Global Capital Ltd), the Hon'ble High Court of Delhi at New Delhi
was pleased to pass the following order: "The underlying purpose of issuing directions to the RBI as mentioned in the order
dated 08.02.2017 is to ensure that when a party files a petition in this court for seeking interim orders/ directions against
any NBFC, the Court has adequate assistance from the other side. It was with the said intention that RBI was directed to
issue a Circular calling upon all the NBFCs to appoint nominated counsels in the High Court for them to receive advance
copies of petitions and be ready with necessary instructions. It is deemed appropriate to direct RBI to issue a Circular
within two weeks, asking all NBFCs empowered to invoke Section 14 of the SARFAESI Act to appoint nominated counsels in
the High Court and convey their names to the Registry within four weeks from the date of receipt of the Circular so that
henceforth, advance copies of petitions can be served directiy on the said counsels and they are ready with instructions at
the stage of admission itself." In pursuance of the above directions of the Hon'ble High Court, RBI has advised all NBFCs
notified as "Financial Institutions" under SARFAESI Act, 2002 to take necessary action.
17. Reserve Bank Commercial Paper Directions, 2017 (August 10, 2017): 1. Definitions: 'Commercial Paper'(CP) is an
unsecured money market instrument issued in the form of a promissory note. The original tenor of a CP shall be between
seven days to one year. 'Issuing and Paying Agent (IPA)' means a Scheduled Bank acting as an IPA. 2. Eligible Issuers:
Companies, including Non-Banking Finance Companies (NBFCs) and All India Financial Institutions (AIRs), are eligible to
issue CPs subject to the condition that any fund-based facility availed of from bank(b) and/or financial institutions is
classified as a standard asset by all financing banks/institutions at the time of issue. Other entities like co-operative
societies/unions, government entities, trusts, limited liability partnerships and any other body corporate having presence in
India with a net worth of Rs 100 crore or higher subject to the condition as specified above regarding fund based facility.
A K GUPTA'S BANKERS TRAINING INSTITUTE {75, Block BG -1, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

18. 3. End use: The exact end use shall be disclosed in the offer document at the time of Issue of a CP. 4. Eligible Investor';; All
residents, and non-residents permitted to invest in CPs under FEMA, are eligible to invest in CPs. However, no person can
invest in CPs issued by related parties either in the primary or secondary market. Investment by regulated'financial sector
entities will be subject to such conditions as the concerned regulator may impose. 5. Form of the instrument mode of
issuance, rating and documentation procednre*;! A CP shall be issued in the form of a promissory note and held in a
demateriallzed form through any of the depositories approved by and registered with SEBI. A CP shall be issued In
minimum denomination of Rs 5 lakh and multiples thereof. A CP shall be issued at a discount to face value. No issuer shall
have the issue of a CP undenvritten or co-accepted. Options (call/put) are not permitted on a CP. 6. Rating Reouirement-
Eligible issuers, whose total CP issuance during a calendar year is Rs 1000 crore or more, shall obtain credit rating for
issuance of CPs from at least two CRAs registered with SEBI and should adopt the lower of the two ratings. Where both
ratings are the same, the issuance shall be for the lower of the two amounts for which ratings are obtained. The minimum
credit rating for a CP shall be 'A3' as per rating symbol and definition prescribed by SEBI. 7. Documentation Procedures:
Issuers, investors and Issuing and Paying Agents (IPAs) shall follow the standard procedures and documentation prescribed
by Fixed Income Money Market and Derivatives Association of India (FIMMDA) as 'Operational Guidelines on CPs'. 8, Issue
of CP-Credit Enhancement, limits: A CP shall be issued as a 'stand-alone' product. Banks and FIs may, based on their
commercial judgement, choose to provide stand-by assistance/credit, back-stop facility etc. by way of credit enhancement
for a CP issue. Non-bank entities (including corporates) may provide unconditional and irrevocable guarantee for credit
enhancement for CP issue provided the offer document for CP properly discloses the net worth of the guarantor company
the names of the companies to which the guarantor has issued similar guarantees, the extent of the guarantees offered by
the guarantor company, and the conditions under which the guarantee will be invoked. 9. Secondary market trading 3nd
settlement of CP: All OTC trades in CP shall be reported within 15 minutes of the trade to the Financial Market Trade
Reporting and Confirmation Platform ("F-TRAC") of Clearcorp Dealing System (India) Ltd. The settlement cycle for OTC
trades in CP shall be T-i-0 or T-i-1. OTC trades in a CP shall be settled through the clearing corporation of any recognized
stock exchange or any other mechanism approved by RBI. 10. Buvback of CP: The buyback of a CP, in full or part shall be
at the prevailing market price. The buyback offer should be extended to all investors in the CP issue. The terrns of the
buyback should be identical for alt investors in the issue. The buyback offer may not be made before 30 days from the date
of issue. CPs bought back shall stand extinguished. 11. Duties and Oblioations: The duties and obligatioris of the Issuer
Issuing and Paying Agent(IPA) and Credit Rating Agency (CRA) are set out below:
Issuer - The issuer of CP shall: (1) Appoint an IPA for issuance of a CP. (ii) Comply with all relevant requirements under
these directions and furnish a declaration in this regard to the IPA. (iii) Ensure that the proceeds from CP issues are for
declared end uses, (iv) Furnish the board resolution authorizing the company to borrow through issuance of a CP to the
IPA. (V) Keep the bank(s) from whom it has outstanding fund or non-fund based credit facility(ies) informed of its market
borrowings, including through CPs, latest by the end of the month in which a CP was issued.(vi) Arrange for crediting the
CP to the demat account of the investor with the depository through the IPA within 7 days of issue (vii)Route all
subscriptions/ redemptions/ buybacks/ payments and default details through the IPA. (viii) Submit a certificate from the
CEO/CFO to the concerned IPAs on quarterly basis that CP proceeds are used for disclosed purposes, and certifying
adherence to other conditions of the offer document and the CP directions. The certificate may be provided within 15 days
from the close of the quarter, (ix) Inform the CRA and IPA on the same day about any default/delay in CP related
payments,(x) The issuer who has defaulted on a CP shall not be allowed to access the CP market for six months from the
date of repayment of the defaulted obligation.
II- Issuing and Paying Agent - The IPA for a CP issuance shall (i) Ensure that the borrower is appropriately authorised to
borrow through CPs. (ii) Verify all information disclosed in the offer document before issuance, (iii) Verify all documents
subrnitted by the issuer and ensure that they are in order and issue a certificate to this effect, (iv) Make available the IPA
certificate in electronic form on the website of the depositories for the CPs. IPAs are encouraged to shift to issue of digital
signature certificates, (v) Verify and hold certified copies of original documents and/or digitally signed documents in its
custody. Report the details of issuance of a CP, or its buyback and instances of default on the F-TRAC platform (after these
functionalities are made operational), by close of business hours, of the day of issuance, buyback or default as the case
^ ^^I*" full operationalisation of F-TRAC, the current reporting arrangements shall continue.
III- CredittheRating
monitor ratingAgency:
assigned(i)toAanCredit
issue Rating Agency (CRA)
and disseminate ratingmust act responsibly
revisions, in rating
if any, to public CP issuances
through and continuously
its publications and on its
website. (II) A CRA must publicly disseminate the ratings of the CP and any subsequent change in the ratings, on the date
of rating or change in rating, as the case may be.
Applicability of other directions/regulations: Issuers of CPs sh^ll abide by any direction/regulation/guideline issued by any
regulator or other authority in respect of issue/investment of CPs provided that such directions/regutations/guidelines do
not conflict with these directions. Nothing contained in the Non-Banking Financial Companies Acceptance of Public Deposits
(Reserve Bank) Directions, 1998 shall apply to the raising of funds by issuance of CP, by any NBFC when such funds are
raised in accordance with directions on issue of CP.
19. Government Banking - Issue of Letters of Credit and Bank Guarantee (August 3, 2017): RBI has decided that RBI
will not issue Letter of Credits on behalf of government and will not act as an issuing or advising bank for government as
far as transactions related to Bank Guarantees are concerned. The government department concerned would be directly
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block B6 • I, Paschlm Vihar, New Delhi - 110063; Ph Oil 6S476949, Oil 25274157,09350476949)

taking up the matter with any commercial bank Identified by them and ail matters concerned with the issuances of LC
should be dealt with by the government and the commercial banks, without involving RBI. As LC/BG business is not part of
agency banking, government can choose any commercial bank for this purpose. The role of RBI is strictly limited to
reimbursement of payments made by the banks for such LCs/BGs on behalf of the government, after satisfying itself with
the debit mandate given by the government. Further, RBI may not issue any letter advising / recommending opening of
LC/BG to the commercial banks on behalf of government department.
20. Natural Calamities Portal (August 03, 2017): RBI has developed a dedicated portal (https://dbie.rbi.org.in/DCP/) for
collection and compilation of data on natural calamities on a real time basis through a centralized system. The portal
provides facility of uploading data files related to relief measures extended by banks and notifications issued by State
Governments with regard to natural calamities. The portal has gone live on July 20, 2017. Banks should upload the actual
data on relief measures extended during April - June 2017 immediately and thereafter from July 2017 onwards every month
by the 10th of the following month. The SLBC Convener Banks should upload the notifications issued by State/District
Authorities for declaration of natural calamities for which relief measures were implemented by SLBC/banks from April 2017
onwards.
21. Issue of comprehensive Credit Information Reports (August 2, 2017): As per extant guidelines issued in June 2014,
in the case of multiple borrowings of the same customer, Credit Information Companies (CICs) should include information
on all accounts, both current and past, in her/his Credit Information Report(QR). The Information may be provided in the
order of live accounts, closed accounts and overall position of NPA /wilful default/suit filed status, with limits and liability for
each account. RBI has observed, however, that some CICs are following the practice of offering limited versions of CIRs to
Credit Institutions (CIs) based on credit information available in specific modules such as commercial data, consumer data
or MR data. Accordingly, CICs are charging differential rates for such specific reports. As the limited versions of QRs based
on the credit information on a borrower available in a specific module capture only the credit information of the borrower
available in the particular module, the lenders may remain unaware of the entire credit history of the borrower, if any,
available in other modules. This can adversely affect the quality of credit decisions of the CIs. Therefore, RBI has directed
QCs to ensure that the CIR in respect of a borrower, furnished to the CI, incorporates all the credit information available in
all modules, e.g. consumer, commercial and MFI, etc., in respect of the borrower.
22. Change in Bank Rate (August 02, 2017): The Bank Rate and Marginal Standing Facility (MSF) rate stands adjusted by 25
basis points from 6.50 per cent to 6.25 per cent with effect from August 02, 2017.
23. Liquidity Adjustment Facility - Repo and Reverse Repo Rates (August 2, 2017): The Monetary Policy Committee
(MPC) has decided to reduce the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per
cent to 6.0 per cent with effect from August 2, 2017. The Reverse Repo rate under the LAF stands adjusted to 5.75 per
cent.
24. SARFAESI extended to NBFCs (11 August 2016): The 2016 Amendment Bill brings several significant'changes to the
SARFAESI Act. Importantly, secured corporate debentures are brought under the purview of the Act. A new necessity and
invincibility is sought to be granted to registration of security interests with Central Registry of Securitisation Asset
Reconstruction and Security Interest (CERSAI), with a provision stating that unregistered security interests will not be
enforceable at all. At the same time. If there is a registered security interest, it will gain supremacy over all other conflicting
or overlapping claims, including those of the government. The SARFAESI Act has been extended to the notified NBFCs with
assets of RsSOO crore or more as per their last balance sheets. However, sections 13 to 19 of the Act can be used only in
respect of 'such security interest which is obtained for securing repayment of secured debt with principal amount of rupees
one crore and above'. A total of 196 systematically important NBFCs, with assets of RsSOO crore or more as per their last
balance sheets have been notified as 'secured lenders' under the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (SARFAESI Act). As such, these NBFCs may now enforce security interests on
assets charged to them, without having to resort to either judicial or arbitral authorities. Several of the infrastructure
finance companies had earlier been defined as 'public financial institutions' using section 4A of the Companies Act 1956. It
appears that the threshold limit of Rsl crore refers to the facility, that is, the original amount of lending, which is secured.
The notification will cover existing facilities as well.
25. Investment in plant and machinery for the purpose of classification as Micro, Small and Medium Enterprises
- documents to be relied upon (July 13, 2017): While calculating the investment in plant and machinery, the original
price thereof, shall be taken into account, irrespective of whether the plant and machinery are new or second hand.
Ministry of MSME, Gol, have clarified that for ascertaining the investment in plant and machinery for classification of an
enterprises as Micro, Small and Medium, the following documents could be relied upon: (i) A copy of the invoice of the
purchase of plant and machinery; or (ii) Gross b\ock for investment in plant and machinery as shown in the audited
accounts; or (iii) A certificate issued by a Chartered Accountant regarding purchase price of plant and machinery. For the
investment in plant and machinery for the purpose of classification of an enterprise as Micro, Small or Medium, the
purchase value of the plant and machinery is to be reckoned and not the book value (purchase value minus depreciation).
26. Customer Protection ~ Limiting Liability of Customers in Unauthorised Electronic Banking Transactions (July
6, 2017): Strenothenino of svstems and procedures: Broadly, the electronic banking transactions can be divided into two
categories: Remote/ online payment transactions (transactions that do not require physical payment instruments to be
presented at tJie point of transactions e.g. internet banking, mobile banking, card not present (CNP)transactions), Pre-paid
A K GUPTA S BANKERS TRAINING INSTT7UTE (75, Block BG -1, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

Payment In^ruments (PPI), and Face-to-face/ proximity payment transactions (transactions which require the physical
payment instrument such as a card or mobile phone to be present at the point of transaction e q ATM POS etc) The
systems and procedures in banks must be designed to make customers feel safe about carrying out electronic banking
transartions. To achieve this, banks must put in place: (i) appropriate systems and procedures to ensure safety and
security of electronic banking transactions carried out by customers; (ii) robust and dynamic fraud detection and prevention
mechanism; (Ml) mechanism to assess the risks (for example, gaps in the bank's existing systems) resulting from
unauthorised transactions and measure the liabilities arising out of such events; (iv) appropriate measures to mitigate the
risks and protect thernselves against the liabilities arising therefrom; and (v) a system of continually and repeatedly
advising customers on how to protect themselves from electronic banking and payments related fraud
authorized tran^rtions by customers to hanks: Banks must ask their customers to mandatorily register for
SMS alerts and wherever available register for e-mail alerts, for electronic banking transactions. The SMS alerts shall
rnandatorily be ^nt to the customers, while email alerts may be sent, wherever registered. The customers must be advised
to not^ their bank of any unauthorised electronic banking transaction at the earliest after the occurrence of such
transaction and i,.formed that the longer the time taken to notify the bank, the higher will be the risk of loss to the bank/
website, phone T customerstoll-free
banking, SMS, e-mail, IVR, a dedicated with 21x7 accessreporting
helpline, through multiple
to homechannels
branch,(at
etc.)a minimum via
for repoitinq
unauthorised transactions that have taken place and/ or loss or theft of payment instrument such as card, etc Banks shall
^^^ome^s should nofte
com^laiiits,I with
>K s(^ific
r optw^ to report unauthorised electronic transactions
Objection,shall
if any. Further, abydirect
be provided bankslinkonfor lodging
home pagethe
of
their websrte. The loss/ fraud reporting system shall also ensure that immediate response (including auto response) is sent
acknowledging the complaint along with the registered complaint number. Tne communication systems
us^ by banks to send aterts and receive their responses thereto must record Uie time and date of delivery of the message
r^K-iK^T
liability, l^e? 'f of electronic
bante may not offer facility to them.transactions,
Tbis shall beother
important
than ATMin determining the extenVof
cash withdrawals, a cuSSs
to customers who do
not provide mobile numbers to the bank. On receipt of report of an unauthorised transaction fron; the cu^omer
must take immediate steps to prevent further unauthorised transactions in the account '
Limited Liabilitv of a Customer
Zero LiabiliW of a Customer: A customer's entitlement to zero liability shall arise where the unauthorised transaction
occure in the foHowing events: (i) Contributory fraud/ negligence/ deficiency on the part of the bank (irrespective of
whether or not the transaction is reported by the customer); (ii) Third party breach v^here the deficiency lies neSr wiSi
the bank nor with the customer but lies elsewhere in the system, and the customer notifies the bank within three workina
days of receiving the communication from the bank regarding the unauthorised transaction
thl
the following cases, (i) InCustomer: 7. A customer
cases where the loss isshall
duebetoliable for thebylossa customer,
negligence occurring due
suchtoasunauthorised transactions
where he has shared thein
^yment credentials, the customer will bear the entire loss until he reports the unauthorised transaction to the bank Any
loss occurring after the reporting of the unauthorised transaction shall be borne by the bank, (ii) in cases where the
responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer but lies
ttHanS on t
tl%?rt"nrrh ---"9 the coZ^Slon from
a transaction, the per transaction liability of the
1 vo'uc ur uie diiiuuiii rnenuoneo in laoie l. whichever is inwe
Table 1
Maximum Liability of a Customer under peranrRnh 7 fii^
Maximum
Type of Account liability
(□)
• BSBD Accounts
5,000
All other SB accounts
• Pre-paid Payment Instruments and Gift Cards
• Current/ Cash Credit/ Overdraft Accounts of MSMEs
• Current Accounts/ Cash Credit/ Overdraft Accounts of Individuals 10,000
with annual average balance (during 365 days preceding the
incidence of. fraud)/ limit up to Rs.25 lakh
• Credit cards with limit up to Rs.S lakh
• All other Current/ Cash Credit/ Overdraft Accounts
• Credit cards with limit above Rs.S lakh 25,000

^rd approved i^icy. Overall liability of the customer in third party breaches, as detailed in paragraphs above, where the
n . . '■"c LUbLuniei iiduiiny snail oe oetermined a^ oer the bank'*:

deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, is summarised in the Table 2:
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG- I, Paschim Vihar, New Oellil- 110063; PhOll 65476949, Oil 25274157,09350476949)

Table 2
Summary of Customer's Liability
Time taken to report the fraudulent transaction
from the date of receiving the Customer's liability (□)
communication
Within 3 working days Zero liability
The transaction value or the amount mentioned
Within 4 to 7 working days
in Table 1 whichever is lower
Beyond 7 working days As per bank's Board approved policy
The number of working days mentioned In Table 2 shall be counted as per the working schedule of the home branch of the
customer excluding the date of receiving the communication.
Reversal Timeline for Zero Liability/ Limited Liabilitv of customer: On being notified by the customer, the bank shall credit
(shadow reversal) the amount involved in the unauthorised electronic transaction to the customer's account within 10
working days from the date of such notification by the customer (without waiting for seh:lement of insurance claim, if any).
Banks may also at their discretion decide to waive off any customer liability in case of unauthorised electronic banking
transactions even in cases of customer negligence. The credit shall be value dated to be as of the date of the unauthorised
transaction. Further, banks shall ensure that; (a) a complaint is resolved and liability of the customer, if any, established
within such time, as may be specified in the bank's Board approved policy, but not exceeding 90 days from the date of
receipt of the complaint, and the customer is compensated as per provisions of paragraphs 6 to 9 above; (b) where it is
unable to resolve the complaint or determine the customer liability, if any, within 90 days, the compensation as prescribed
in paragraphs 6 to 9 is paid to the customer; and (c) in case of debit card/ bank account, the customer does not suffer loss
of interest, and in case of credit card, the customer does not bear any additional burden of interest.
Burden of Proof: The burden of proving customer liability in case of unauthorised electronic banking transactions shall lie on
the bank.
27. WMA limit for Government of India for July 2017 to September 2017: RBI has decided, that the limit for Ways and
Means Advances (WMA) for the second quarter (Q2) of the financial year 2017-18 (July 2017 - September 2017) will be at
Rs 70,000 crore. The interest rate on WMA will be at Repo Rate and for overdraft it will be Two percent above the Repo
Rate.
28. Conduct of Government Business by Agency Banks - Payment of Agency Commission (June 29, 2017): The
following activities do not rome under the purview of agency bank business and are therefore not eligible for payment of
agency commission: (a) Furnishing of bank guarantees/security deposits, etc. through agency banks by government
contractors/suppliers, which constitute banking transactions undertaken by banks for their customers; (b) The banking
business of autonomous/statutory bodies/Municipalities/ Corporations/Local Bodies; (c) Payments of a capital nature such
as capital contributions/subsidies/grants made by governments to cover losses incurred by autonomous/statutory bodies/
Municipalities/ Corporations/Local Bodies; (d) Prefunded schemes which may be implemented by a Central Government
Ministry/Department (in consultation with CGA) and a State Government Department through any bank.
29. Limits on balances in customer accounts with payments banks - sweep out arrangements with other banks
(June 29, 2017): Payments banks (PBs) are permitted to make arrangements with a scheduled commercial bank / small
finance bank (SFB), for amounts in excess of the prescribed limits, to be swept into an arcount opened for the customer at
that bank. RBI has now advised that - (a) PBs are permitted to act as Business Correspondents (BCs) of other banks. Under
the BC arrangement and with prior specific or general consent of the customer, PB may effect the transfer of funds
deposited by her into her account with another eligible bank, so that the balance in her account with the PB does not
exceed Rsl00,000 or any such iower amount as specified by her. At any time, PB shall not have rights to operate or have
real-time access to the funds available in the account of the customer at any other bank, including the transferee bank.
However, as a BC of a bank, PBs may facilitate withdrawals and transfers by the customer from her account with the bank
of which it is the BC. PBs shall not initiate any debit transactions in the customer's account, held with another bank, under
a power of attorney or general consent of the customer. A PB shall neither arrange nor avail of intraday funding facilities
for its customers, based on the balances available in the customer's account with any other bank, or otherwise. PBs are
required to closely monitor the accounts of their customers, to identify and report suspicious transactions, when the deposit
/ transaction volumes are not commensurate with the customer's profile.
30. 'on tap' Licensing of Universal Banks in the Private Sector — RBI has received application from UAE Exchange and
Financial Services Limited for granting status of a Universal Bank.
31. FINO Payments Bank Limited commences operations: FINO Payments Bank Limited has commenced operations as a
payments bank with effect from June 30, 2017.
32. Applicable Average Base Rate to be charged by NBFC-MFIs for the Quarter Beginning July 01, 2017: RBI has
advised that the applicable average base rate to be charged by Non-Banking Financial Company - Micro Finance
Institutions (NBFC-MRs) to their borrowers for the quarter beginning July 01, 2017 will be 9.22 per cent.
33. Issue of Rs 10 coin to commemorate the occasion of "150th Birth Anniversary of Shrimad Rajchandra": The
Government of India has minted the above mentioned coin which the Reserve Bank of India will shortly put into circulation.
The coin has been released by the Hon'ble Prime Minister of India.
8
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34. Recording of E>etails of Transactions In Passbook/ Statement of Account (June 22, 2017): The Committee on
Procedures and Performance Audit on Public Services had recommended that banks should avoid inscrutable entries in
passbooks/ statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks/
statements of account with a view to avoiding inconvenience to depositors. Now, RBI has decided that banks shall at a

I. Debit entries
a. Payment to third parties (i) Name of the payee
(ii) Mode - Transfer, clearing, inter-branch, RTGS/ NEFT, cash, cheque
(number)
(iii) Name of the transferee bank, if the payment is made through
clearing/ inter-branch transaction/ RTGS/ NEFT
b. Payment to 'self (i) Indicate "Self" as payee
(ii) Name of the ATM/ branch if the payment is made by ATM/ another
branch
c. Issuance of drafts/ pay orders/ any (i) Name of the payee (in brief/ acronym)
other payment instrument (ii) Name of the drawee bank/ branch/ service branch
d. Bank charges (i) Nature of the charges - fee/ commission/ fine/ penalty etc.
(ii) Reasons for the charges, in brief - e.g. return of cheque (number),
commission/ fee on draft issued/ remittance (draft number), cheque
collection charge (number), issuance of cheque book, SMS alerts, ATM
fees, additional cash withdrawals, etc.
e. Reversal of wrong credits (}) Date of the original credit entry reversed
(ii) Reasons for reversal, in brief
f. Recovery of instalments of a loan/ (i) Loan account number
interest on loan Oi) Name of the Loan account holder
g- Creation of fixed deposit/ recurring (i) Fixed Deposit/ Recurring Deoosit AccounV Receipt number
deposit (ii) Name of the Fixed Deposit/ Recurring Deposit Account holder
h. Transactions at POS (i) Transaction date, time and identification number
(ii) Location of the POS
1. Any other (i) Provide adequate details on the same lines as mentioned above.

branc 1/ bank shall not be recorcjed. However, the fact of "multiple payees" will be indicated.
II. Credit Entries
Cash deposit (i) Indicate that it is a "cash deposit"
(ii) Name of the depositor - self/ third party
Receipt from third parties (i) Name of the remitter/ transferor
(ii) Mode - Transfer, inter-branch, RTGS/ NEFT, cash, etc.
(iii) Name of the transferor bank, if the payment is received through
inter-branch transaction, RTG5/ NEFT
c. Proceeds of clearing/ collection/ (i) Name of the draft issuing bank
draft etc. paid (ii) Date and number of the cheque/ draft
d. Reversal of wrong debits (including (i) Date of the original debit entry reversed
charges) (ii) Reasons for reversal, in brief
Interest on deposits (i) Mention if it is interest paid on the Savings Account/ Fixed Deposit
(ii) Mention the respective Fixed Deposit Account/ Receipt Number if it
is interest paid on Fixed Deposit(s)
Maturity proceeds of fixed deposit/ (i) Name of the Fixed Deposit/ Recurring Deposit holder
recurring deposit (ii) Fixed Deposit/ Recurring Deposit account/ receipt number
)Date of maturity
Loan proceeds (i) Loan account number
h. Any other (i) Provide adequate details
35. Amendments to the Banking Ombudsman Scheme, 2006(JUNE 16, 2017)
1. The Banking Ombudsman shall receive and consider complaints relating to the deficiencies in banking or other services
filed on the grounds mentioned in clause 8 irrespective of the pecuniary value of the deficiency in service complained and
facilitate their satisfaction or settlement by agreement or through conciliation and mediation between the bank concerned
and the aggrieved parties or by passing an Award as per the provisions of the Scheme.
2. The complaints can be made in respect of following also -(a) Non-adherence to the instrurtions of Reserve Bank on
ATM / Debit Card and Prepaid Card operations in India by the bank or its subsidiaries on any of the following; Account
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debited but cash not dispensed by ATMs; Account debited more than once for one withdrawal in ATMs or for POS
transaction; Less/Excess amount of cash dispensed by ATMs; Debit in account without use of the card or details of the
card; Use of stolen/cloned cards
Others,(b) Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on credit card operations on
any of the following: Unsolicited calls for Add-on Cards, insurance for cards etc; Charging of Annual Fees on Cards issued
free for life; Wrong Billing/Wrong Debits; Threatening calls/ inappropriate approach of recovery by recovery agents
including non-observance of Reserve Bank guidelines on engagement of recovery agents; Wrong reporting of credit
information to Credit Information Bureau; Delay or failure to review and correct the credit status on account of wrongly
reported credit information to Credit Information Bureau, (c) Non-adherence to the instructions of Reserve Bank with
regard to Mobile Banking / Electronic Banking service in India by the bank on any of the following: delay or failure to effect
online payment / Fund Transfer; unauthorized electronic payment / Fund Transfer, (d) Non-adherence to Reserve Bank
guidelines on para-banking activities like sale of insurance / mutual fund /other third party investment products by banks
with regard to following: Improper, unsuitable sale of third party financial products; non-transparency / lack of adequate
transparency in sale; non-disclosure of grievance redressal mechanism available; delay or refusal to facilitate after sales
service by banks.
3. For the purpose of promoting a settlement of the complaint, the Banking Ombudsman shall not be bound by any rules of
evidence and may follow such procedure as he may consider just and proper, which shall, however, at the least, require
the Banking Ombudsman to provide an opportunity to the complainant to furnish his/her submissions In writing along with
documentary evidence within a time limit on the written submissions made by the bank. Where the Banking Ombudsman is
of the opinion that the documentary evidence furnished and written submissions by both the parties are not conclusive
enough to arrive at a decision, he may call for a meeting of bank or the concerned subsidiary and the complainant together
to promote an amicable resolution. Where such meeting is held and it results in a mutually acceptable resolution of the
grievance, the proceedings of the meeting shall be documented and signed by the parties specifically stating that they are
agreeable to the resolution and thereafter the Banking Ombudsman shail pass an order recording the fact of settlement
annexing thereto the terms of the settlement.
4. The Banking Ombudsman may deem the complaint as resolved, in any of the following circumstances: (a) Where the
grievance raised by the complainant has been resolved by the Bank or the concerned subsidiary of a bank with the
intervention of the Banking Ombudsman; or (b) The complainant agrees, whether in writing or otherwise, to the manner
and extent of resolution of the grievance provided by the Banking Ombudsman based on the conciliation and mediation
efforts; or (c) In the opinion of the Banking Ombudsman, the bank has adhered to the banking norms and practices in
vogue and the complainant has been informed to this effect through appropriate means and complainant's objections if any
to the same are not received by Banking Ombudsman within the time frame provided.
5. The Banking Ombudsman shall not have the power to pass an Award directing payment of an amount towards
compensation which is more than the actual loss suffered by the complainant as a direct consequence of the act of
omission or commission of the bank, or two million rupees whichever is lower. The compensation that can be
awarded by the Banking Ombudsman shall be exclusive of the amount involved in the dispute. The Banking Ombudsman
may also award compensation in addition to the above but not exceeding Rs. 0.1 million to the complainant, taking into
account the loss of the complainant's time, expenses incurred by the complainant, harassment and mental agony suffered
by the complainant.
6. The Banking Ombudsman, shall, if it appears at any stage of the proceedings that the complaint pertains to the same
cause of action, for which any proceedings before any court, tribunal or arbitrator or any other forum is pending or a
decree or Award or order has been passed by any such court, tribunal, arbitrator or forum, pass an order rejecting the
complaint giving reasons thereof.
7. Party to the complaint aggrieved by an Award or rejection of a complaint may within 30 days of the date of receipt of
communication of Award or rejection of complaint, prefer an appeal before the Appellate Authority;
36. Payment of agency commission for government receipts (June 22, 2017): The agency commission on government
receipts is paid by Reserve Bank per transaction basis. In this connection, with reference to the implementation of Goods
and Service Tax (GST) regime, a single Common Portal Identification Number (CPIN), processed successfully leading to
generation of a Challan Identification Number (QN), under GST payment process, may be treated as a single transaction,
even if multiple major iiead/sub major head/minor head of accounts are credited. This means that CGST, SGST, IGST and
Cess etc. paid through a single challan would constitute a single transaction. Thus, ail such records dubbed under a single
challan i.e., CPIN have to be treated as a single transaction for the purpose of claiming agency commission. This will come
into effect from July 1, 2017. In case of transactions not covered under GST, a single challan (electronic or physical) should
be treated as single transaction only and not multiple transactions, even if the challan contains multiple major head/sub
major head/minor head of accounts that will get credited. Records clubbed under a single challan processed successfully
have to be treated as a single transaction for the purpose of claiming agency commission.
37. Eligible Credit Rating Agencies- INFOMERICS Valuation and Rating Pvt Ltd.(INFOMERICS)(June 13, 2017) At
present six domestic credit rating agencies viz. CARE, CRISIL, FTTCH India, ICRA, Brickwork Ratings and SMERA have been
accredited for the purpose of risk weighting the banks' claims for capital adequacy purposes. Now, RBI has decided that
banks may also use the ratings of the INFOMERICS Valuation and Rating Pvt Ltd.(INFOMERICS).

10
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block B6 -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,011 25274157,09350476949)

38. Roadmap for unbanked villages having population more than 5000 (June 8, 2017); SLBCs had been advised to
identify villages with population above 5000 without a bank branch of a scheduled commercial bank in their State and allot
these villages among scheduled commercial banks (including Regional Rural Banks)for opening brick and mortar branches.
Further, RBI has issued final guidelines on 'Banking Outlets' with a view to facilitate financial inclusion as also to provide
flexibility to banks on the choice of delivery channel. SLBC Convenor banks should review and identify the unbanked rural
centres (URCs) in villages with population above 5000, in light of the revised guidelines on rationalisation of branch
authorisation policy and ensure that such unbanked rural centres in villages with population above 5000, if any, are banked
forthwith by opening of CBS enabled banking outlet. A confirmation stating that alt unbanked rural centres in villages with
population above 5000 have been banked, may be furnished to the respective Regional Office of Financial Inclusion and
Development Department of Reserve Bank of India latest by December 31, 2017.
39. Recording of PPO Number In the passbook of Pensioners / Family Pensioners (June 8, 2017): Banks should
record the PPO number in all the pension passbooks of the pensioners/family pensioners Issued to them. This is to alleviate
the difficulties reported by pensioners/family pensioners to get duplicate Pension Payment Orders (PPO) in case of missing
of original PPO, transfer of pension account from one bank/branch to another bank/branch, commencement of family
pension to spouse or dependent children after the death of pensioner, etc. in the absence of ready availability of PPO
numbers.
40. Individual Housing Loans: Risk-Weights and Loan to Value (LTV) Ratios (June 7, 2017): As a countercyclical
measure, the LTV ratios, risk weights and standard asset provisioning rate for individual housing loans sanctioned on or

Outstanding loan LTV ratio (o/o) Risk Weight(%) Standard Asset


Provision
Up to Rs.30 lakh < 80 35
> 80 and < 90 50
Above Rs.30 lakh and up to Rs.75 lakh < 80 0.25
35
Above Rs.75 lakh < 75 50

-irtn -to (May


ZU1/-1S /KA or 2017):
25, or«.i-»x ^ t as
Gol, —..-..-w
an interim .w.has decided to implement
measure, ivaiiathe
unInterest
micnmSubvention
oasis ounng tnefor
Scheme year
the
year 2017-18 till further instructions are received, on the terms and conditions approved for the Scheme for 2016-17.
42. National Electronic Funds Transfer (NEFT) system - Settlement at half-hourly intervals (May 08 2017)-
National Electronic Funds Transfer (NEFT) system presently settles the fund transfer requests of the participating banks on
net basis at hourly intervals from 8:00 am to 7:00 pm on all working days. All participating banks have been advised to give
the credit to the beneficiary customer only after the inter-bank settlement has been completed and the Endsof-Batch (EOB)
message is received by them. RBI has decided to introduce additional settlements in the NEFT system at half-hour intervals
to enhance the efficiency of the system and add to customer convenience. The half hourly settlements would speed up the
funds transfer process and provide faster credit to the destination accounts. Accordingly, RBI has decided to introduce 11
additional settlement batches during the day (at 8.30 am, 9.30 am, 10.30 am 5.30 pm and 6.30 pm), taking the total
nurnber of half hourly settlement batches during the day to 23. The starting batch at 8.00 am and closing batch at 7 00 pm
shall remain the same. The return discipline shall also remain the same i.e., B-t-2 hours (Settlement batch time plus two
hours) as per extant practice. The participating banks should carry out the required changes in their CBS system to initiate
the NEFT transactions for half hourly settlement as above, and also to accept and credit the inward NEFT transactions on
ha^ hourly basis. The additional batches will be introduced from July 10, 2017(Monday). For efficient customer service, tfie
participant banks in NEFT system should seno a positive confirmation to the remittance originator (customer) confirming
the successful credit of funds to the beneficiary's account. Accordingly, beneficiary / destination banks shall ensure strict
adherence in sending the NIO messages to the originating banks, which in turn shall ensure sending the positive
confirrnation to the remitting customer advising status of credit to the beneficiary account.
43. Timelines for Stressed Assets Resolution (May 5, 2017): The Framework for Revitalising Distressed Assets in the
Econorny - Guidelines on Joint Lenders' Forum (JLF) and Corrective Action Plan (CAP) aims at early Identification of
stressed assets and timely implementation of a corrertive action plan (CAP) to preserve the economic value of stressed
assets. In order to ensure that the CAP is finalised and formulated in an expeditious manner, the Framework specifies
various timelines within which lenders have to decide and implement the CAP. The Framework also contains disincentives
in the form of asset classification and accelerated provisioning where lenders fail to adhere to the provisions of the
Framework. In this regard, RBI has clarified that the CAP can also include resolution by way of Flexible Structuring of
Project Loans, Change in Ownership under Strategic Debt Restrurturing, Scheme for Sustainable Structuring of Stressed
Assets (S4A), etc. Further, to facilitate timely decision making, RBI has decided that, henceforth, the decisions agreed upon
by a minimum of 60 percent of creditors by value and 50 percent of creditors by number in the JLF would be considered as
the basis for deciding the CAP, and will be binding on all lenders, subject to the exit(by substitution) option available in the
Framework. Lenders shall ensure that their representatives in the JLF are equipped with appropriate mandates, and that
decisions taken at the JLF are implemented by the lenders within the timelines. Banks have been advised that - (i) The
^and of the participating banks while voting on the final proposal before the JLF shall be unambiguous and unconditional*
(11) any bank which does not support the majority decision on the CAP may exit subject to substitution within the stipulated
11
A K GUPTA'S BANKERS TRAINING INSTITUTE {75, Block BG -1,Paschim Vlhar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

time line, failing which it shall abide the decision of the JLF; (iii) the bank shall Implement the JLF decision without any
additional conditionalities; and (iv) the Boards shall empower their executives to implement the JLF decision without
requiring further approval from the Board.
44. Requirement of Net Owned Fund (NOP)for Asset Reconstruction Companies (April 28, 2017): RBI has decided
to fix the minimum NOF requirement for ARCs at Rs 100 crore on an ongoing basis with effect from April 28, 2017. All the
ARCS which are already registered with Reserve Bank of India as on April 28, 2017 and not having the revised minimum
NOF as on date shall achieve a minimum NOF of □ 100 crore latest by March 31, 2019.
45. Compliance with Ghosh Committee Recommendations (April 20, 2017): RBI had advised banks that compliance to
the Jilani Committee recommendations need not be reported to the Audit Committee of the Board (ACB). Now, RBI has
decided that the compliance to the Ghosh Committee recommendations also need not be reported to the ACB.
46. Disclosure in the "Notes to Accounts" to the Financial Statements- Divergence in the asset dassification and
provisioning (April 18, 2017): In order to ensure greater transparency and promote better discipline with respect to
compliance with IRACP norms, RBI has decided that banks shall make suitable disclosures wherever either (a) the
additional provisioning requirements assessed by RBI exceed 15 percent of the published net profits after tax for the
reference period or (b) the additionai Gross NPAs identified by RBI exceed 15 percent of the published incremental Gross
NPAsl for the reference period, or tioth. The disclosures, as above, shall be made in the Notes to Accounts in the ensuing
Annual Financial Statements published immediately following communication of such divergence by RBI to the bank.
47. Guidelines on compliance with Accounting Standard (AS) 11 [The Effects of Changes in Foreign Exchange
Rates] by banks (April 18, 2017): Banks shall not recognise in the profit and loss account the proportionate exchange
gains or losses held in the foreign currency translation reserve on repatriation of profits from overseas operations.
48. Prudential Guidelines - Banks' Investment in units of REITs and InvUs (April 18, 2017); RBI has decided to allow
banks to participate in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) within the
overall ceiling of 20 per cent of their net worth permitted for direct investments in shares, convertible bonds/ debentures,
units of equity-oriented mutual funds and exposures to Venture Capital Funds (VCFs) [both registered and unregistered],
subject to the following conditions: Banks should put in place a Board approved policy on exposures to REITs/ InvITs which
lays down an internal limit on such investments within the overall exposure limits in respect of the real estate sector and
infrastructure sector. Banks shall not invest more than 10 per cent of the unit capital of an REIT/ InvIT.
49. Revised Prompt Corrective Action (PCA) Framework for Banks (April 13, 2017): The salient features are provided
below. The provisions of the revised PCA framework will be effective from April 1, 2017. A. Capital, asset quality and
profitability continue to be the key areas for monitoring in the revised framework. B. Indicators to be tracked for Capital,
asset quality and profitability would be CRAR/ Common Equity Tier I ratio, Net NPA ratio and Return on Assets respectively.
C. Leverage would be monitored additionally as part of the PCA framework. D. Breach of any risk threshold (as detailed
under) would result in invocation of PCA.
50. Financial Literacy Week (April 13, 2017): To emphasize the importance of financial literacy, RBI has decided to observe
the week June 5-9, 2017 as Financial Literacy Week across the country. The literacy week will focus on four broad themes,
viz. KYC, Exercising Credit Discipline, Grievance Redressal and Going Digital (UPI and *99#).
51. Setting up of IFSC Banking Units (IBUs) - Permissible activities (April 10, 2017): RBI has decided that - 1. "With
the prior approval of their board of directors, IBUs may undertake derivative transactions including structured products that
the banks operating in India have been allowed to undertake as per the extant RBI directions. However, IBUs shall obtain
RBI's prior approval for offering any other cerivative products. Before seeking RBI's approval, banks shall ensure that their
IBUs have necessary expertise to price, value and compute the capital charge and manage the risks associated with the
products / transactions intended to be offered and should also obtain their Board's approval for undertaking such
transactions." 2. "The fixed deposits accepted from non-banks by the IBUs cannot be repaid pre-maturely within the first
year. However, fixed deposits accepted as collateral from non-banks for availing credit facilities from IBUs or deposited as
margin in favour of an exchange, can be adjusted prematurely in the event of default in repayment of the loan or meeting
a margin call."
52. Purchase of foreign exchange from foreign citizens and others (March 30, 2017): As per extant RBI guidelines,
foreign citizens (i.e. foreign passport holders) were permitted to exchange foreign exchange for Indian currency notes up to
a limit of Rs. 5000/- per week till January 31, 2017. Now, RBI has decided to restore status quo ante regarding purchase of
foreign exchange from customers by authorised persons as mentioned in Circular dated Novembe'- 27, 2009, details of
which are given below: (a) Requests for payment in cash by foreign visitors / Non-Resident Indians may be acceded to the
extent of only US $ 3000 or its equivalent. All purchases within one month may be treated as single transaction for the
above purpose and also for reporting purposes. In all other cases, APs should make payment by way of 'Account Payee'
cheque / demand draft only.
53. Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions (March 30, 2017); RBI, vide its
circular dated December 16, 2016, had advised special measures for debit card transactions (including for payments made
to Government) for a temporary period starting January 1, 2017 through March 31, 2017. RBI has now decided to continue
these guidelines till the issuance of final instructions on MDR for debit card transactions. Accordingly, following rules will
continue to apply: (i) For transactions upto □ 1000/-, MDR shall be capped at 0.25% of the transaction value; (ii) For

12
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,Oil 25274157,09350476949)

transactions above □ 1000/- and opto □ 2000/-, MDR shall be capped at 0.5% of the transaction value The above
measures shall not apply to ATM transactions.
54. Branches of Bharatiya Mahlla Bank Limited to operate as branches of SBI from April 1, 2017 (Mar 22, 2017):
All branches of Bharatiya Mahila Bank Limited will function as branches of State Bank of India from April 1 201?!
Customers, including depositors of Bharatiya Mahila Bank Limited will be treated as customers of State Bank of India with
effect from April 1, 2017. The Government of India has issued the Acquisition of Bharatiya Mahila Bank Limited Order 2017.
55. Branches of SBB3, SBH, SBM, SBP and SBT to operate as branches of SBI from April 1, 2017 (Mar 20 2017) All
branches of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM) State
Bank of Patiala (SBP) and State Bank of Travancore (SBT) will function as branches of State Bank of India from /\pril 1
2017. Customers, including depositors of State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore,'
State Bank of Patiala and State Bank of Travancore will be treated as customers of State Bank of India with effect from
April 1, 2017. Tbe Government of India has issued the Acquisition orders for these banks.
56. Sovereign Gold Bond- Dematerialisation (Mar 14, 2017): RBI, in consultation with the Government of India has
issued SIX tranches of Sovereign Gold Bonds for a total value of Rs 4145 crore till date. Investors in these bonds have'been
provided with the option of holding them in physical or dematerialized form. The requests for demateriatization have largely
been processed successfully. A set of records, however, could not be processed for various reasons such as mismatches in
names and PAN numbers, inactive or closed demat accounts, besides other reasons. A list of such unsuccessful demat
requests is now placed on RBI website.
57. ESAF Small Finance Bank Limited commences operations (Mar 10, 2017): ESAF Small Finance Bank Limitpd has
commenced operations as a small finance bank with effect from March 10, 2017. ESAF Microfinance and Investments
Private Limited, Chennai was one of the ten applicants which were issued in-principle approval for <:etting up a small
finance bank, as announced in the press release on September 16, 2015.
58. Issue of □ 10 banknotes with improved security features (Mar 09, 2017): RBI has issued Rs 10 denomination
banknotes in the Mahatma Gandhi Series-2005 with inset letter 1' in both the number panels, bearing the signature of Dr
Urjit R. Patel, Governor, RBI, and the year of printing '2017' printed on the reverse of the banknote. The numerals in both
the number panels of these banknotes are in the ascending size from left to right while the first three alpha-numeric
characters (prefix) remain consiant in size.
59. Disbursal of loan amount in cash (March 09, 2017): As per extant guidelines, NBFCs should ensure that high value
loans against gold of Dl lakh and above must only be disbursed by cheque. Now, RBI has advised that in line with the
rules issued under Section 269SS and 269T of the Income Tax Act, 1961, the relevant threshold limit will be Rupees Twenty
thousand instead of Rs llakh. ^ '
60. Gold Monetisation Scheme (March 6, 2017): RBI has advised that in order to have uniformity in reporting, reconciliation
and accounting, agency banks may report the Gold Monetisation Scheme transactions i.e., receipt, payment penalty
interest, commission for mobilisation, handing charges, etc., directly through the government account maintain^ for the
Section, RBI, Nagpur, on a daily basis as in the case of the transactions of Public Provident
Fund (PPF) Scheme, 1968.

1934^'°" Small Finance Bank Limited" in the Second Schedule to the Reserve Bank of India Act,
1934^'°" Small Finance Bank Limited" in the Second Schedule to the Reserve Bank of India Act,
63. Repayment of Gold Loan (February 16, 2017): As per extant guidelines, Regional Rural Banks (RRBs) are permitted to
grant gold loans up to Ps.1.00 lakh with bullet repayment option. Now, RBI has decided to increase the quantum of loan
that could be granted under the scheme, from Rs.1.00 lakh to Rs.2.00 lakh subject to the following conditions: (i) The
period of the loan shall not exceed 12 months from the date of sanction, (ii) Interest will be charged to the account at
Payf^ent along with principal only at the end of 12 months from the date of sanction.
(mi) RRBs should maintain a Loan to Value (LTV) ratio of 75% on the outstanding amount of loan including the interest on
an ongoing twsis, failing which the loan will be treated as a Non Performing Asset (NPA). The crop loans sanctioned against
the collateral s^urity of gold/gold ornaments shall continue to be governed by the extant income recognition asset
classification and provisioning norms for such loans.
64. Changes in CGTMSE: 1. Maximum amount of eligible loan - Rs 2 crore (earlier it was Rs 1 crore); Max claim - Rs 1 crore
(earlier it was Rs 50 lakh); 3. Maximum interest rate for being eligible for cover: 14%
65. Changes in RDB Act ( DRT): For appeal from DRT to DRAT, the period reduced from 45 days tO 30 days- If borrower
wants to appeal he is required to deposit 50% of judgement amount with DRAT (earlier it was 75%) and it can be reduced
to 25% by DRAT (earlier it could be reduced to 0%)
Limited" in the Second Schedule to the Reserve Bank of India Act,
1934 (February 16, 2017): The "Equitas Small Finance Bank Limited" has been included in the Second Schedule to the
Reserve Bank of India Act, 1934
67. Reimbursement of Merchant Discount Rate (February 16, 2017): The Government of India (Gol) has decided to
RBI Will1.^reimburse
Merchant Discount
banks Rateon(MDR)
the MDR debit charges in respect
cards used of debit
for payment cardand
of tax transactions whiletomaking
non-tax dues payments oftoIndia
the Government Gol

13
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

with effect from January 1, 2017. The claims may be signed by the Officer-in-Charge of the Government Banking Division
of the bank. He should also certify that MDR charges for transaction amounts upto □ 1.00 lakh have not been collected
from the payer.
68. Ujjivan Small Finance Bank Limited commences operations: Ujjivan Small Finance Bank Limited has commenced
operations as a small finance bank with effect from February 1, 2017.
69. Deposit of Specified Bank Notes (SBNs) - Chest Balance Limit / Cash Holding Limit (February 13, 2017): RBI
has decided that till further instructions SBNs deposited in the currency chests, since November 10, 2016, will be
considered as part of the chest balance in the soiled note category but such deposits will not be reckoned for calculating
Chest Balance Limit / Cash Holding Limit.
70. Review of Guidelines on "Pr icing of Credit" (February 02, 2017): As per extant instructions on "Pricing of Credit"
issued to NBFC-MFIS it has been advised that "NBFC-MFIs shall ensure that the average interest rate on loans during a
financial year does not exceed the average borrowing cost during that financial year plus the margin, within the prescribed
cap." Since average base rate of banks is published by RBI on quarterly basis, RBI has decided to modify the above
mentioned instructions as under: "NBFC-riFIs shall ensure that the average interest rate on loans sanctioned during a
quarter does not exceed the average borrowing cost during the preceding quarter plus the margin, within the prescribed
cap."
71. India Post Payments Bank Limited commences operations: India Post Payments Bank Limited has commenced
operations as a payments bank with effect from January 30, 2017. The Reserve Bank has issued a licence to the bank
under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of payments bank in India.Department
of Posts was one . of the 11 applicants which were issued in-principle approval for setting up a payments bank, as
announced in the press release on August 19, 2015.
72. Utkarsh Small Finance Bank Limited commences operations: Utkarsh Small Finance Bank Limited has commenced
its operations as a small finance bank with effect from January 23, 2017. The Reserve Bank has issued a licence to the
bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank in India.
Utkarsh Micro Finance Private Limited, Varanasi was one of the 10 applicants which were issued in-principle approval for
setting up a small finance bank, as announced in the press release on September 16, 2015.
73. Suryoday Small Finance Bank Limited commences operations: Suryoday Small Finance Bank Limited has
commenced its operations as a small finance bank with effect from January 23, 2017. The Reserve Bank has issued a
licence to the bank under Section 22 (1) of the Banking Regulation Act, 1949 to carry on the business of small finance bank
in India. Suryoday Micro Finance Private Limited, Navi Mumbai was one of the 10 applicants which were issued in-principle
approval for setting up a small finance bank, as announced in the press release on September 16, 2015.
74. Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended: The Government of India, in
consultation with the Reserve Bank of India, had notified Pradhan Mantri Garib Kalyan Deposit Scheme (F^MGKDS), 2016.
The deposit under this Scheme shall be made by any person who declared undisclosed income under Pradhan Mantri Garib
Kalyan Yojana, 2016. The deposit sum, which shall not be less than twenty-five per cent of the declared undisclosed
income, can be deposited at the authorized banks (as notified by Government of India) from December 17, 2016
(Saturday) to March 31, 2017 (Friday).
75. Rationalisation of customer charges for Immediate Payment Service (IMPS), Unified Payment Interface
(UPI) & Unstructured Supplementary Service Data (USSD) (December 16, 2016): Following the withdrawal of legal
tender characteristics of existing Rs 500/- and Rs 1000/- Bank Notes (Specified Bank Notes - SBN), the Government has
been taking several measures to incentivise greater adoption of digital payments by large sections of the society. As a
temporary measure, RBI has decided that all participating banks and Prepaid Payment Instrument (PPI) issuers shall not
levy any charges on customers for transactions upto Rs 1000 settled on the Immediate Payment Service (IMPS), USSD-
based *99# and Unified Payment Interface (UPI) systems. The above measures shall come into effect from January 1,
2017 and shall be applicable till March 31, 2017.
76. Compliance to provisions of Master Direction on Know Your Customer (KYC) (December 15, 2016): As per Master
Direction on Know Your Customer (KYC), (i) concurrent/internal audit system of the Regulated Entities (REs) has to verify
the compliance with KYC/AML policies and procedures and submit quarterly audit notes and compliance to the Audit
Committee; (ii) banks should follow instructions on operation of'Small Accounts', and (iii) the Permanent account number
(PAN) of customers shall be obtained and verified while undertaking transactions as per the provisions of Income Tax (I.T.)
Rule 114B applicable to banks, as amended from time to time. Form 60 shall be obtained from persons who do not have
PAN. RBI has now reiterated that: (i) In respect of 'Small Accounts', the prescribed limits/conditions shall not be breached.
If any customer desires to have operations beyond the stipulated limits, the same shaii be allowed only after complying
with requirements for opening a normal account including completion of CDD/KYC procedures which include quoting of
PAN/Form 60 while opening an account with a bank, NBFC, etc. If any account is rendered ineligible for being classified as
a small account due to credits/balance in the account exceeding the permissible limits, withdrawals may be allowed within
the limit prescribed for small accounts where the limits thereof have not been breached; (iii) In respect of KYC compliant
accounts where the required CDD procedure has been complied with, REs shall ensure compliance regarding quoting of
PAN/obtaining of Form 60 for all transactions in terms of I.T.Rule 114 B whi<di includes opening of accounts with banks,
NBFCs, etc. No debit transaction, transfer or otherwise shall be allowed in accounts which do not comply with the above
14
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,01125274157,09350476949)

mentioned requirements. To begin with, this rule shall be strictly applied in accounts where both the thresholds listed below
are reached: (a) balance of rupees five lakh or more; and (b) the total deposits (including aedits by electronic or other
means) made after November 9, 2016, exceed rupees two lakh.
77. Preservation of CCTV recordings (December 13, 2016): As per extant guidelines, in order to facilitate identification of
people abetting circulation of counterfeit notes, banks should cover the banking hall/area and counters under CCIV
surveillance and recording and preserve the recording. Now, RBI has further advised banks to preserve CCTV recordings of
operations at bank branches and currency chests for the period from November 08 to December 30, 2016, until further
instructions, to facilitate coordinated and effective action by the enforcement agencies in dealing with matters relating to
illegal accumulation of new currency notes.
78. Aadhaar-based Authentication for Card Present Transaction (December 02, 2016): .^s per extant RBI guidelines, on
Security and Risk Mitigation Measures for Card Present Transactions, all new card present infrastructure has to be enabled
for both EMV Chip and PIN and Aadhaar (biometric validation) acceptance. RBI, vide circular dated September 29, 2016
advised that all new card acceptance infrastructure deployed with effect from January 1, 2017 are enabled for processing
payment trarisactions using Aadhaar-based biometric authentication also. Now, RBI has decided to extend the time for
deployment of Aadhaar-enabled devices till June 30, 2017.
79. Chest Balance Limit / Cash Holding Limit (November 29, 2016): As per extant guidelines, the balance in a currency
chest, exceeding the Chest Balance Limit / Cash Holding Limit will be deemed to be bank's own cash, not allowing for
inter-chest fungibility. In the wake of deposits of SBNs in massive quantity and accumulations thereof, RBI has advised that
SBNs deposited in the currency chests, since November 10, 2016 will be considered as part of the chest balance in the
soiled note category but such deposits will not be reckoned for calculating Chest Balance Limit / Cash Holding Limit. A
review of the above will be taken up in the second fortnight of February 2017.
80. Specia! knowledge or practical experience useful to banking companies(November 24, 2016): In the backdrop of
Innovations in banking and technology, it is felt that ttie domain knowledge and experience enumerated under various
statutory provisions for the directors on the boards of commercial banks (excluding RRBs) need to be augmented by
knowledge and experience in other specialized areas, to guide the banks in managing their diversified business portfolios
and risks. It has, therefore, been decided to broaden the fields of specialization to include (i) Information Technology (ii)
Payment & Settlement Systems (iii) Human Resources (iv) Risk Management and (v) Business Management, for persons
who could be considered for appointment of director in the banks.
81. Alrtel Payments Bank Limited commences operations(Nov 23, 2016): Airtel Payments Bank Limited has commenced
its operations as a payments bank with effect from November 23, 2016.
82. Compliance with Provisions of 114B of the Income Tax Rules, 1962(November 16, 2016): With a view to ensure
compliance with provisions of 114B of the Income Tax Rules, 1962, the banks are advised as under: (a) Anybody
depositing more than Rs 50,000/- In cash in their bank account has to submit a copy of the PAN card irr case the bank
account is not seeded with PAN;(b) In addition to the above provision, in the same IT Rules, PAN reporting requirements
are there for other transactions, which banks need to insist upon.
83. Dispensation of Rs.100 denomination banknotes through exclusive ATMs (November 02, 2016): RBI has
advised banks that in keeping with the objectives of Clean Note Policy and to ensure that genuine requirement of members
of public for Rs. 100 denomination banknotes are met, the banks should increase dispensation of Rs. 100 banknotes
through ATMs which are widely used for distribution of banknotes for retail use. With a view to encourage the banks in that
direction, RBI has decided to conduct a pilot project wherein 10% of the ATMs in the country will be calibrated to dispense
Rs.100 banknotes exclusively. Banks should, therefore, configure / calibrate 10% of ATMs to facilitate this arrangement.
84. Sovereign Gold Bond - Dematerialisation (Oct 18, 2016): RBI has issued six tranches of Sovereign Gold Bonds for a
total value of Rs 4145 crore till date. Investors in these bonds have been provided with the option of holding them in
physical or dematerialized form.
85. StatutorY Liquidity Ratio (SLR)(October 13, 2016): RBI has decided that the SLR securities acquired from RBI under
Liquidity Adjustment Facility (LAF) shall be considered as eligible assets for SLR maintenance from October 3, 2016. With
effect from the dates given below, banks shall maintain in India assets, the value of which shall not, at the close of
business on any day, be less than:(a) 20.75 per cent from October 1, 2016; and (b) 20.50 per cent from January 7, 2017
of their total net demand and time liabilities in India as on the last Friday of the second preceding fortnight.
86. Revised Kisan Credit Card (KCC)Scheme (October 13, 2016): RBI has decided to make certain changes in the revised
KCC Scheme. The revised guidelines are given below:'Besides the mandatory crop insurance, the KCC holder should have
the option to take benefit of any type of Assets Insurance, Accident Insurance (including PAIS), and Health Insurance
(wherever product is available) and have premium paid through his KCC account. Premium has to be borne by
farmers/bank according to the terms of the Scheme. Farmer beneficiaries should be made aware of the insurance cover
available and their consent (except in case of crop insurance, it being mandatory) is to be obtained, at the application stage
itself."
87. Import Data Processing and Monitoring System (IDPMS)(October 06, 2016); In order to enhance ease of doing
business and facilitate efficient data processing for payment of import transactions and effective monitoring thereof. Import
Data Processing and Monitoring System (IDPMS) has been developed in consultation with the Customs authorities and
other stakeholders. IDPMS will go live with effect from October 10, 2016 and banks are directed to use IDPMS for reporting
15
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Btock BG - I, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

and monitoring of the import transactions. Customs department has modified the Bill of Entry (BoE) format to display the
AD Code of bank with effect from April 1, 2016 and SEZ from June 1, 2016 respectively. Primary import transaction data
(from Customs/SEZ) with effect from the above mentioned dates will be made available to respective AD banks in the
IDPMS database for further processing. Starting October 10, 2016 all transactions will flow to IDPMS on daily basis for AD
banks, to log all subsequent activities and monitor the import transactions.
88. Publishing of photographs of Wilful defaulters (September 29, 2016): RBI has advised that: (i) A lending institution
can consider publication of the photographs of only those borrowers, including proprietors/ partners /directors / guarantors
of borrower firms/ companies, who have been declared as wilful defaulters following the mechanism set out in the RBI
instructions. This shall not apply to the non-whole time directors who are exempted from being considered as wilful
defaulters unless the special conditions, in accordance with these instructions, are satisfied, (ii) The lending institutions
shall formulate a policy with the approval of their Board of Directors which clearly sets out the criteria based on which the
decision to publish the photographs of a person covered in paragraph (i) above will be taken by them so that the approach
is neither discriminatory nor inconsistent. The lending institutions shall not publish photographs of any other defaulting
borrowers.
89. Transunion CIBIL Limited (September 29, 2016): RBI, vide circular dated March 05, 2012 advised grant of 'Certificate of
Registration' to Credit Information Bureau (India) Limited. The Company has since changed its name. Accordingly, RBI as
Issued a new 'Certificate of Registration' to it on September 29, 2016 to carry on the business of credit Information. The
new name and address of the Company is Transunion CIBIL Limited.
90. Branch Authorisation - Census data 2011 (September 1, 2016): RBI has advised that as the Census data for 2011 are
available in public domain, banks should follow Census 2011 w.e.f. September 1, 2016 for alt purposes of categorisations.
Details of tier-wise classification of centres based on populabon are given below: i) Classification of centres (tier-wiseJ
Population - Tier 1 - 1, 00,000 and above; Tier 2 - 50,000 to 99,999; Tier 3 - 20,000 to 49,999; Tier 4 - 10,000 to 19,999;
Tier 5 - 5,000 to 9,999; Tier 6 - Less than 5000; ii) Population-group wise classification of centres - Rural Centre -
Population up to 9,999; Semi-urban centre - from 10,000 to 99,999; Urban centre - from 1, 00,000 to 9, 99,999;
Metropolitan centre - 10, 00,000 and above
91. Free Annual Credit Report to Individuals (September 1, 2016): The Committee to Recommend Data Format for
Furnishing of Credit Information to Credit Information Companies (Chairman: Shri Aditya Puri) constituted by RBI had
recommended that each customer of a credit institution should be provided one base level consumer Credit Information
Report(QR)free of cost every year by each Credit Information Company (CIC). Given the importance of the credit report
in an individual's financial matters, he^he is entitled to have a copy of the report upon request. Further, the objective of
providing the free credit report would not be fully met unless this report includes details that figure in the full credit report
that is accessed by the credit institutions while considering the request for fresh credit facilities. The report should also
provide an opportunity to the borrower to have the errors, if any, in her/his credit history rectified. Taking into account
these objectives, RBI has directed Credit Information Companies to provide access in electronic format, upon request and
after due authentication of the requester, to one free full credit report (FFCR) including credit score, once In a year
(January- December), to individuals whose credit history is available with the CIC. This report must show the latest position
of the credit institutions' exposure to the individual as per records available with the QC. The contents of the FFCR shall be
the same as appearing in the most detailed version of the reports on the individual provided to credit institutions, including
the credit score. These guidelines will be effective from January 1, 2017. The acs shall notify on their website the
procedure for accessing the FFCR.
92. Priority Sector Lending - Lending to non-corporate farmers (September 1, 2016): RBI has advised banks to ensure
that their overall direct lending to non-corporate farmers does not fall below the syste.m-wide average of the last three
years achievement failing which they will attract the usual penalties for shortfall. They should also continue to maintain all
efforts to reach the level of 13.5 percent direct lending to the beneficiaries who earlier constituted the direct agriculture
sector. In this regard, RBI has advised that the applicable system wide average figure for computing achievement under
priority sector lending for the FY 2016-17 is 11.70%.
93. Equitas Small Finance Bank Limited commences operations: RBI has issued a licence to Equitas Small Finance Bank
Limited to carry on the business of small finance bank (SFB) in India. Equitas Small Finance Bank Limited commenced its
operations as a small finance bank (SFB) from September 5, 2016. Equitas Holding P Limited was one of the 10 applicants
that were issued in-principle approval for setting up SFRs.
94. Dr. Uijit R. Pate! takes over as RBI Governor: Dr. Urjit R. Patel assumed charge as the twenty-fourth Governor of the
RBI effective September 4, 2016 after sen/ing as Deputy Governor since January 2013.
95. Pradhan Mantri Fasal Bima Yojna (August 25, 2016): RBI hau advised banks to ensure coverage of 100% of defined
loanee farmers along with good number of non-loanee farmers to achieve the defined objectives and targets fixed under
the Scheme. Further, banks are also expected to capture all relevant data including land and crop details of all loanee
farmers and non-loanee farmers availing crop Insurance through the branches.
96. Priority Sector Lending status for Factoring Transactions (August 11, 2016): Factoring transactions on 'with
recourse' basis shall be eligible for priority sector classification by banks, which are carrying out the business of factoring
departmentally. Banks may classify their outstanding factoring portfolio on the reporting dates under MSME category,
wherever the 'assignor' in the factoring transaction is a Micro, Small or Medium Enterprise.

16
A K GUPTA'S BANKERS TRAINING INSnHTTE(75, Block BG - I, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,Oil 25274157,09350476949)

97. Capacity Building in Banks and AIFIs (August U, 2016): RBI advised banks to implement following recommendations
on capacity building: Banks should Identify specialised areas for certiHcation of the staff manning key responsibilities like
Treasury operations; Risk management; Accounting - Preparation of financial results, audit function; Credit management-
marketing third party retail products and wealth management products. The banks should ensure that by end-March 2017
the employees in relevant areas have commenced the process of obtaining necessary certifications
98. Implementation of Indian Accounting Standards (Ind AS)(August 04, 2016): Select All-India Term Lending and
Refinancing Institutions(AIFIs)(Exim Bank, NABARD, NHB and SIDBI), shall follow the Indian Accounting Standards in the
following manner: (i) AIFIs shall comply with the Indian Accounting Standards (Ind AS) for financial statements for
accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or
thereafter, (ii) AIFIs shall apply Ind AS only as per the above timelines and shall not be permitted to adopt Ind AS earlier
99. Dishonour of cheques - Modification in procedure (August 04, 2016): As per extant guidelines, banks have
introduced a condition for operation of accounts with cheque facility that in the event of dishonour of a cheque valuing
rupees one crore and above drawn on a particular account of tne drawer on four occasions during the financial year for
want of sufficient funds in the account, no fresh cheque book would be issued. Now, RBI has decided to ieave it to the
discretion of the banks to determine their response to dishonour of cheques of the account holders
100.Priority Sector Lending -Targets and Classification (July 28, 2016): As per extant guidelines. Bank credit to Micro
Finance Institutions (MFIs) extended for on-lending to individuals will be eligible for categorisation as priority sector
advance under respective categories provided not less than 85 percent of total assets of MFI (other than cash, balances
With banks and financial institutions, government securities and money market instruments) are in the nature of "qualiMnq
assets". For this purpose, a "qualifying asset" shall mean a loan disbursed by MFI, in which tenure of loan is not less than
24 months when loan amount exceeds Rs 30,000/- (earlier this amount was Rs 15000)
101.FaciJity for Exchange of Soiled/ Mutilated/ Imperfect Notes (July 14, 2016): (i) Exchange of nntPc- where
the number of notes presented by a person is up to 20 pieces with a maximum value of Rs.5000 per day banks should
counter, free of charge. Where the number of notes presented by a person exceeds 20 pieces or
F^.5000 in value f^r day, banks may accept them, against receipt, for value to be credited later. Banks may levy service
charges ensuring that the charges are reasonable and are not oui of line with the average cost of providing these services.
In ca^ tendered value is above Rs.50000, banks are expected to take the usual precautions. Exchange of mutilated and
imperfect nys by non chest branches: Where the number of notes presented by a person is up to 5 pieces per day non-
chest branches should normally adjudicate the notes as per the procedure laid down in Note Refund Rules, 2009 and oav
the exchange value over the counter. If the non-chest branches are not able to adjudicate the mutilated notes, the notes
may be receiv^ against a receipt and sent to the linked currency chest branch for adjudication. The probable date of
payrnent should be informed to the tenderers on the receipt itself and the same should not exceed 30 days. Bank account
u
fiulK: .. number of notes presented
Where the tenderers by
for acrediting
person isthemore
exchange
than 5value by electronic
pieces means.
not exceeding Notesoresentedin
Rs.5000 in value, the
tenderer should be advised to send such notes to nearby currency chest branch by insured post giving his / her bank
account details (a/c no, branch name, IFSC, etc) or get them exchanged thereat in person. All other persons tendering
mutilated notes whose value exceeds Rs.5000 should be advised to approach nearby currency chest branch. Currency chest
branches receiving mutilated notes through insured post should credit the exchange value to the account of sender bv
electronic means within 30 days of receipt of notes.
102.^sel III Framework on Liquiditv Standards - Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring
Assets (HQLAs)^for the purpose
Standards (Julythe
of computing 21,LCR
2016): Presently,
of banks, interthealia,
assets allowed
include as the Level
Government 1 Highin Quality
securities Liquid
excess of the
minimum SLR requirement and, within the mandatory SLR requirement. Government securities to the extent allowed bv
[presently 2 per cent? of the bank's NDU]and under Facility to Avail Liquiditv
for Liquidity Coverage Ratio (FALLCR)[presently 8 per cent of the bank's NDTL]. Now, RBI has decided that, in addition to
the above-mentioned assets, banks will be permitted to reckon government securities held by them up to another 1 oer
their ?rD u
LCR. Hence, the totalPALLCR within
carve-out fromtheSLRmandatory
available SLR requirement
to banks would beas11level
per1cent
HQLAof for
theirtheNDTL.
purpose
For of
thiscomputing
purpose
banks should continue to value such reckoned government securities within the mandatory SLR requirement at an amount
current market value (irrespective of the category of holding the security, i.e. HTM AFS or HFT)
103.Pradhan Mantri Jeevan Jyoti Bima Yojana (PM3JBY)- Amendments (June 30, 2016): With effect from June 1
2016 claims for deaths which occur during the first 45 days from the date of enrolment will not be paid effectively
meaning that the risk cover will commence only after the completion of 45 days from the date of enr Jment into the
scheme by the member. However, deaths due to accidents will be exempt from the Lien Clause.
104.Foreign Currency Accounts by a person resident In India (June 23, 2016): Indian startup, having an overseas
subsidiary, may open a foreign currency account with a bank outside India for the purpose of crediting to the account the
foreign exchange earnings out of exports/sales made by the said startup or its overseas subsidiary The balances held in
such accounts, to the extent they represent exports from India, shall be repatriated to India within the period prescribed
for realization of exports. In addition, payments received in foreign exchange by an Indian startup arising out of sales/
export made by the startup or its overseas subsidiaries will be a permissible credit to the Exchange Earners Foreign
17
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG •I, Paschim Vlhar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

Currency (EEFC) account maintained in India by the startup. Further, any insurance/ reinsurance company registered with
the Insurance Regulatory and Development Authority of India (IRDA) may open a foreign currency account with a bank
outside India to carry out insurance/ reinsurance business.
lOS.Implementation of Indian Accounting Standards(Ind AS)(June 23, 2016): Banks should remain in preparedness to
submit Proforma Ind AS Financial Statements to RBI, from the half-year ended September 30, 2016, onwards. Banks shall
submit Proforma Ind AS Financial Statements, for the half year ended September 30, 2016 latest by November 30, 2016.
The Proforma Ind AS Financial Statements shall include the following:- (a) Balance Sheet including Statement of Changes in
Equity; (b) Profit and Loss Account; (c) Notes. To begin with, banks which are not in a position to submit both standalone
and consolidated proforma Ind AS financial statements for the half year ended September 30, 2016 are permitted to submit
only standalone financial statements. However, banks shall submit both proforma Ind AS standalone and consolidated
financial statements in the subsequent periods.
106.Reporting Requirements under Basel III Capital Regulations (June 23, 2016): Banks are permitted to raise
perpetual non-cumulative preference shares(PNCPS)and perpetual debt instruments (PDI)for inclusion in Additional Tier 1
capital. Further, banks are also allowed to raise debt capital instruments, perpetual cumulative preference shares (PCPS)/
redeemable non-cumulative preference shares (RNCPS)/ redeemable cumulative preference shares (RCPS) for inclusion in
Tier 2 capital. Banks are required to submit a report to RBI, giving the details of the debt raised but need not submit a
copy of the offer document to RBI.
107.Scheme for Sustainable Structuring of Stressed Assets (June 13, 2016): The Strategic Debt Restructuring (SDR)
mechanism provides 18 months for banks to make prescribed provisions for the residual debt and mark-to-market(MTM)
provisions on their equity holding arising from conversion of debt. Banks had represented for allowing more time to write
down the debt and make the required provisions in cases of resolution of large accounts. Now, RBI has decided to facilitate
the resolution of large accounts, which satisfy the following conditions: (i) The project has commenced commercial
operations; (ti) The aggregate exposure (including accrued interest) of all institutional lenders in the account is more than
Rs.500 crore (including Rupee loans. Foreign Currency loans/External Commercial Borrowings,); (iii) The debt meets the
test of sustainability. A debt level will be deemed sustainable if the Joint Lenders Forum (JLF)/Consortium of lenders/bank
conclude through independent techno-economic viability (TEV) that debt of that principal value amongst the current
funded/non-funded liabilities owed to institutional lenders can be serviced over the same tenor as that of the existing
facilities even if the future cash flows remain at their current level. For this scheme to apply, sustainable debt should not be
less than 50 percent of current funded liabilities.
108. National Rural livelihoods Mission (NRLM)- Aajeevlka (June 09, 2016): As per extant guidelines on Interest
Subvention Scheme under NRLM, bank is required to submit a certificate that loans to women SHGs up-to Rs 3 lakhs were
charged Interest @ 7% per annum, all the accounts claimed are eligible for interest subvention and there is no duplication
in the claims and there is no human intervention while submitting the regular claim or additional interest subvention claim
from the branch level onwards. In partial modification of the Scheme, now, the clause "there is no human intervention" of
the Scheme replaced by the clause "with minimal human intervention" in the Interest Subvention claim certificates
109.Export Data Processing and Monitoring System (EDPMS)(May 26, 2016): To simplify the procedure for filing returns
on a single platform and for better monitoring, RBI has decided to integrate the returns related to (a) handling of shipping
bills for caution listed exporters; (b) delayed utilisation of advances received for exports; and (c) exports outstanding with
Export Data Processing and Monitoring System (EDPMS) which has been in operation since March 1, 2014. Criteria laid
down for cautioning / cle-cautioninQ of exporters In EDPMS are as under: The exporters would be caution listed if any
shipping bill against them remains open for more than two /ears in EDPMS provided no extension is granted by bank / RBI.
Date of shipment will be considered for reckoning the realisation period. Once related bills are realised and closed or
extension for realisation is granted, the exporter will automatically be de-caution listed. The exporters can also be caution
listed even before the expiiy of two years period based on the recommendation of AD banks. Banks will intimate the
exporters about their caution listing, giving the details of outstanding shipping bills. The bills from caution listed exporters
can be accepted for negotiation / purchase / discount / collection if the exporter produces evidence of having received
advance payment or an irrevocable letter of credit in his favour covering the full value of the proposed exports. Report!no
of Advance Remittance for Exports: Presently the export data in EDPMS is being captured only from the shipping bills
generated. Now, banks will have to report all the inward remittances including advance as well as old outstanding inward
remittances received for export of goods / software to EDPMS. Outstanding Statement(XOS): RBI has decided to migrate
the XOS data reported by the banks for half year ended December 2015 onwards to EDPMS and discontinue separate
reporting of XOS for the subsequent periods.
110.Currenq^ Distribution & Exchange Scheme (CDES) for bank branches (May 05, 2016): 1. Incentives: Banks are
eligible for the following financial incentives for providing facilities for exchange of notes and coins: (i) Opening of and
maintaining currency chests at centers having population of less than 1 lakh in under banked States: a. Capital
Cost: Reimbursement of 50% of capital expenditure subject to a ceiling of □ 50 lakh per currency chest. In the North
Eastern region upto 100% of capital expenditure is eligible for reimbursement subject to the ceiling of □ 50 lakh; b.
Revenue cost: Reimbursement of 50% of revenue expenditure for the first 3 years. In the North Eastern region 50% of
revenue expenditure will be reimbursed for the first 5 years, (ii) Exchange of soiled notes/ adjudication of mutilated
banknotes over the counter at bank branches: a. Exchange of soiled notes - \3 2 per packet for exchange of soiled notes
18
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949,Oil 25274157,09350476949)

up to denomination □ 50; b. Adjudication of mutilated notes - □ 2 per piece, (iii) Distribution of coins over counter: i. □
25 per bag for distribution of coins over the counter; ii. The incentives would be paid on the basis of withdrawal from
currency chest, without waiting for claims from banks; iii. Banks may put in place a system of checks and balances to
ensure that coins are distributed to retail customers in small lots and not to bulk customers; iv. The distribution of coins
shall be verified by RBI Regional Offices through inspection of currency chest / incognito visits to branches etc. (iv)
Installation of Machines which extend cash related retail services to the public like - Cash Recyclers; ATMs dispensing lower
denomination notes (i.e. up to denomination □ 100): The maximum amount of reimbursement for the machines will be as
follows- For Metro / Urban areas-1. Cash Recyclers - 50% of the actual cost of the machine or □ 2,00,000 whichever
is lower; 2. ATMs dispensing lower denomination notes (up to denomination □ 100) - 50% of the actual cost of the
machine or □ 2,00,000 whichever is lower; For Semi-urban / Rural areas - 1. Cash Recyclers - 60% of the actual cost
of the machine or □ 2,50,000 whichever is lower; 2. ATMs dispensing lower denomination notes (up to denomination □
100) - 60% of the actual cost of the machine or □ 2,50,000 whichever is lower.
111.Issuances of UDAY Bonds by States during 2015-16: In order to improve the operational and financial efficiency of
State power distribution companies (DISCOMs), Ministry of Power, Government of India had framed UDAY (Ujwal DISCOM
Assurance Yojana) scheme on November 20, 2015. As part of the scheme. Reserve Bank of India had issued the special
bonds (non-SLR special securities) on behalf of eight State Governments during 2015-16. Total amont of bonds is Rs
98,960 crore.
112.Change in Dally minimum cash reserve maintenance requirement: RBI has decided to reduce the minimum daily
maintenance of the C^sh Reserve Ratio from 95% of the requirement to 90% from the fortnight beginning April 16, 2016.
113.Provisioning pertaining to Fraud accounts; Banks should normally provide for the entire amount due to the bank or
for which the bank is liable (Including in case of deposit accounts), immediately upon a fraud being detected. While
cornputing the provisioning requirement, banks may adju«t financial collateral eligible under Basel III Capital Regulations -
Capital Charge for Credit Risk (Standardised Approach), if any, available with them with regard to the accounts declared as
fraud account. However, to smoothen the effect of such provisioning on quarterly profit and loss, banks have the option to
make the provisions over a period, not exceeding four quarters, commencing from the quarter in which the fraud has been
detected. Banks shall make suitable disclosures with regard to number of frauds reported, amount involved in such frauds,
quantum of provision made during the year and quantum of unamortised provision debited from 'other reserves' as at the
end of the year.
IH.Deendayal Antyodaya Yojana (DAY)-National Urban Livelihoods Mission (April 07, 2016): Ministry of Housing and
Urban Poverty Alleviation (UPA Division), Government of India has decided to enhance the scope of National Urban
Livelihoods Mission. The Mission with enhanced scope will be renamed as "Deendayal Antyodaya Yojana (DAY)-National
Urban Livelihoods Mission". Mission will be implemented in all District Headquarter Towns and all other cities with a
population of 1,00,000 or more as per 2011 Census. The States/UTs are also allowed to implement alf or any of the
components of the Mission in any other Statutory Town, based on the local capacity and requirement.
115.Import of Rough, Cut and Polished Diamonds (March 31, 2016): Banks are permitted to approve Clean Credit i.e.
credit given by a foreign supplier to its Indian customer / buyer, without any Letter of Credit (Suppliers' Credit) / Letter of
Undertaking (Buyers' Credit) / Fixed Deposits from any Indian financial institution for import of Rough, Cut and Polished
Diamonds, for a period not exceeding 180 days from the date of shipment. Now, RBI has delegated this power for a period
exceeding 180 days from the date of shipment to the AD banks. AD banks may allow such extension of time up to a
maximum period of 180 days beyond the prescribed period/due date.
116.Monetlsatlon Scheme, 2015 - Amendments (March 31, 2016); In the case of MLTGD, the redemption of principal at
maturity shall, at the option of the depositor, be either in Indian Rupee equivalent of the value of deposited gold at the
time of redemption, or in gold. Where the redemption of the deposit is in gold, an administrative charge at a rate of 0.2%
0i the notional redemption amount in terms of INR shall be collected from the depositor. However, the interest accrued on
MLTGD shall be calculated with reference to the value of gold in terms of Indian Rupees at the time of deposit and will be
paid only in cash.
117.Review of FDI policy -Insurance sector (March 31, 2016): The limit of foreign investment in insurance sector
(Insurance Company; Insurance Brokers; Third Party Administrators; Surveyors and Loss Assessors; Other Insurance
Intermediaries has been enhanced from 26 to 49 percent under the automatic route.
llS.Liquidlty Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure Standards (March 23
201b): In addition to the assets prescribed under Level 2B, with effect from February 1, 2016, Corporate debt securities
(including commercial paper) can also be reckoned as Level 2B HQLAs, subject to a 50% haircut.
llO.Recovery of excess payments made to pensioners (March 17, 2016): As soor^ as the excess/wrong payment made to
a pensioner comes to the notice of the paying branch, the branch should adjust the same against the amount standing to
the credit of the pensioner's account to the extent possible including lumpsum arrears payment. In case the pensioner
expresses his inability to pay the amount, the same may be adjusted from the future pension payments to be made to the
pensioners. For recovering the over-payment made to pensioner from his future pension payment in instalments l/3rd of
net (pension + relief) payable each month may be recovered unless the pensioner concerned gives consent in writing to
pay a higher installment amount.

19
A K GUPTA'S BANKERS TRAINING INSniUTE(75, Block BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

120.NEFr - Customer Service and Charges (March 17, 2016): Banks were required to submit data pertaining to NEFT
transactions by walk-in customers on a quarterly basis starting from quarter ended March 31, 2014. RBI has now
discontinued the submission of this report.
121.Grant of EOF Waiver for Export of Goods Free of Cost(March 03, 2016): GR waiver to exporters for export of goods
free of cost is available. The facility had been extended to the Status Holders as per Foreign Trade Policy 2004-2009, in
terms of which Status Holders shall be entitled to export freely exportable items on free of cost basis for export promotion
subject to an annual limit of Rs 10 lakh or 2% of average annual export realization during preceding three licensing years,
whichever is higher. Later on, Government notified vide notification dated June 4, 2015 that the Status Holders shall be
entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh
or 2% of average annual export realization during preceding three licensing years whichever is lower.
122.Basel TTI Capital Regulations - Revision (March 1, 2016); Revaluation reserves arising from change in the carrying
amount of a bank's property consequent upon its revaluation would be considered as common equity tier 1 capital (C^l)
instead of Tier 2 capital as hitherto. These would continue to be reckoned at a discourit of 55 per cent; Foreign currency
translation reserves arising due to translation of financial statements of a bank's foreign operations to the reporting
currency may be considered as CETl capital. These will be reckoned at a discount of 25 per cent; Deferred tax assets
arising due to timing differences may be recognised as CETl capital up to 10% of a bank's CETl capital; These
amendments are applicable with effect from Mar 01, 2016.
123.RBI clarifications on MCLR System: 1. Fixed Rate Loans: Fixed rate loans upto three years shall be priced with
reference to MCLR. Fixed rate loans of tenor above three years will continue to be exempted from MCLR system; 2.
Comoutina Marginal Cost of Funds: For computing Marginal Cost of Funds, banks will have the option to reckon the
outstanding balances of deposits and other borrowings as on any day, not more than seven calendar days, prior to the date
from which the MCLR becomes effective. The chosen time lag shall be maintained consistently for a period not less one
year; MCLR of Various Maturities: Banks are required to publish MCLR for various tenors. RBI has clarified that the tenor of
the MCLR calculated shall correspond to the following: (a) the tenor of the funds in the single largest maturity bucket,
provided it is more than 30 per-cent of the entire funds reckoned for determining the MCLR; (b) the weighted average
tenor of two or more maturity buckets that together account for more than 30 per-cent, if no single maturity bucket
accounts for more than 30 per-cent of the funds. The maturity bucket shall be arrived at by calculating the cumulative
weightage based on the descending order of the maturity time buckets. 4. Effective Date for aoplvinQ MCLR on Floatma
Rate Loan: MCLR prevailing on the date of first disbursement, whether partial or full, shall be applicable on the floating rate
loan and future reset dates determined accordingly.
124.Designated Trade Repository: The Clearing Corporation of India Limited (CCIL) shall be the designated trade repository
for the OTC interest rate and foreign exchange contracts as mandated by the RBI from time to time. The trade repository
being a Financial Market Infrastructure (FMI) shall be regulated and supervised as per the policy framework'for "Regulation
and Supervision of Financial Market Infrastructures regulated by RBI".
125.Basel III Framework on Liquidity Standards - Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring
Tools and LCR Disclosure Standards (February 11, 2016): The assets allowed as the Level 1 High Quality Liquid Assets
(HQLAs)for the purpose of computing the LCR of banks, inter alia, include Government securities in excess of the minimum
SLR requirement, and within the mandatory SLR requirement. Government securities to the extent allowed by RBI, under
Marginal Standing Facility (MSF)[presently 2 per cent of the bank's NDTL] and under Facility to Avail Liquidity for Liquidity
Coverage Ratio (FALLCR) [presently 5 per cent of the bank's NDTL]. In addition to the above-mentioned assets, banks will
be permitted to reckon government securities held by them up to another 3 per cent of their NDTL under FALLCR within
the mandatory SLR requirement as level 1 HQLA for the purpose of computing their LCR. Hence the total carve-out from
SLR available to banks would be 10 pei cent of their NDTL.
126.Implementation of Indian Accounting Standards(Ind AS)(February 11, 2016): Commercial banks (excluding RRBs)
shall follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015,
in the following manner -(a) Banks shall comply with the Indian Accounting Standards (Ind AS) for financial statements for
accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or
thereafter. Ind AS shall be applicable to both standalone financial statements and consolidated financial statements. Banks
shall apply Ind AS only as per the above timelines and shall not be permitted to adopt Ind AS earlier.
127.Post Office (Postal Orders/Money Orders), 2015 (February 04, 2016): General permission has been given to any
person to buy foreign exchange from any post office in India in the form of postal order or money order.
128.Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations (February 04,
2016): Following are the limits for possession or retention of foreign currency or foreign coins, namely:- possession without
limit of foreign currency and coins by an authorised person within the scope of his authority; possession without limit of
foreign coins by any person; retention by a person resident in India of foreign currency notes, bank notes and foreign
currency travellers' cheques not exceeding US$ 2000 or its equivalent in aggregate;
129.Settlement of Export/ Import transactions in currencies not having a direct exchange rate (February 4, 2016):
Settlement of export and import transactions where the invoicing is in a freely convertible currency and the settlement
takes place in the currency of the beneficiary, which though convertible, does not have a direct exchange rate, can be
done.

20
A K GUPTA'S BANKERS TRAINING INSHTUTE(75, Bkick BG -1, Paschim Vihar, New Delht- 110063; Ph Oil 65475949,Oil 25274157,D9350476949)

130.RTGS service charges for members and customers (February 4, 2016): Processinq charae oer transartinn- Fvprv
outward transaction will attract flat processing charge at the earlier cap of RsO.50 (exclusive of service tax) and a time
Time of Settlement at RBT Time varying charge per outward
Srno.
From To transaction
(exclusive of service tax)
1 08:00 hours 11:00 hours Nil
2 After 11:00 hours 13:00 hours Rs 2.00
3 After 13:00 hours 16:30 hours Rs 5.00
4 After 16:30 hours Rs 10.00
_ — uy d meiiiuer (ir re so aesires) from Its customers
will remain uii^anged as under. Customers should not be charged for inward transaction, as hitherto. The revised service
charges for RTGS members will come into effect from April 1, 2016.
RTGS Transaction Maximum Customer Charges (exclusive of service tax)
Inward transactions Free
Outward transactions
Rs 2 lakh to Rs 5 lakh Rs 25 + applicable time varying charge, subiect to a maximum of Rs 30/-.
^
Above Rs 5 lakh
^
Rs 50 + applicable
f i
time varying
^
charge, subject to au 11maximum of Rs 55/-.
»UAII I lUi II \JI no ODl",
28, 2016): Providing safe deposit locker fac^ility is a fee
based ^n/'ce and shall not be reckoned as part of the financial business carried out by NBFCs. NBFCs offering safe deoosit
i r,-. 5^ facility or intending to offer it, shall disclose to their customers that the activity is not regulated by the Bank
tm M r.?
2016). A cheque written in Hindi and bearing a date inNational
Hindi is aCalendar (Saka Banks
valid instrument. Samvat)
shouldforaccept
payment (January
cheques bearing21,a
date as per National Calendar (Saka Samvat) for payment, if otherwise found in order. Banks should ascertain the
Gr^orian calendar date corresponding to the National Saka calendar in order to avoid payment of stale cheques.
134.Sale of India Gold Com (IGC) (January 21, 2016): MMTC has been authorized by the Central Government to
manufacture mdia Gold Coins (IGC) with Ashok Chakra and supply these coins to the domestic market. The gold used for
l^Mcf n" !T? t ^Of^estically under the existing Gold Deposit Scheme (GDS) and Gold Monetization
imported gold com hT
by the K
banks will continue. restriction on selling of
for improving service to non-chest branches under Linkage Scheme (January 21, 2G16): The currency
chest holding banks allowed to enhance the service charges to be levied on cash deposited by non-chest-bank branches
Sbl^uar^ r^Te ^ '"structions come into effect from
Oe.Payment of Agency Commission on pension accounts (January 21, 2016): Commission is paid at Rs. 65 per
transaction for handling pension computation, payment and related services on behalf of Central and State Governments A
transactions in a calendar year attributable to pension and related
fn fvpfT M commisionable transactions for payment of agency commission on account of pension
Ippr ff one monthly credit for payment of net pension and a maximum of two per
nr '''"'I' 1" 1 ^PP'-^ble. In case any Central Government Department or
df? under non-pension payments,
may indud^ ^9ures on
on which
their own and commission
agency pass them onis to bankson
payable forapayment,
turnoversuch
basistransactions
as per the
existing norms(currently at 5.5 paise per Rs. 100/-).
and Monitoring (January 21, 2016): 1. Revision of limite in reporting nf Fraiirt Frauds of Rs 0 1
R^sn mnio fo r but below Rs 50 miliion (Rs 5 crore) will be monitored by the Regional Office of RBI. Frauds of
fcroreT and ahovV "^e present limit of Rs 10 million (Rs
subi?,S.d fo fhe Iff M not send the hard copies of the FMR-1 returns. Instead a monthly certificate should be
his blTn sint to emiif ^
138.Direct Benefit Transfer (DBT) Scheme - Seeding of Aadhaar in Bank Accounts: (January 14, 2016): RBI has
advi^d that jn view of the Hon'ble Supreme Court of India's interim orders dated August 11, 2015 and October 15 2015
on usages of Aadhaar, use of Aadhaar Card and seeding of bank accounts with Aadhaar numbers is purely voluntary'and it
IS not m3nci3tory.

^ P^^ the lead bank office or a rural branch


pf ^ room/space with a seating capacity of minimum 10 members to address walk in customers
for of ^ to be conducted
140.Non-Fund Ba^ Fadlity to Non-constituent Borrowers of Bank (January 07, 2016); Scheduled Commercial Banks
f anyfacilities
und based facility from bank inincluding Partial to
India, subject Credit
the Enhancement (PCE) toVerification
following conditions: those customers, who do
of Customer not avail The
credentiak- any
21
A K GUPTA'S BANKERS TRAINING INSHTUTE(75, Block BG -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

banks shall ensure that the borrower has not availed any fund based facility from any bank operating in India. However, at
the time of granting non-fund based facilities, banks shall obtain declaration from the customer about the non- fund based
credit facilities already enjoyed by them from other banks. Submission of Credit Information to CICs: Credit information
relating to grant of such facility shall mandatorily be furnished to the Credit Information Companies (specifically authorized
by RBI). However, banks are prohibited from negotiating unrestricted LCs of non-constituents. In cases where negotiation
of bills drawn under LC is restricted to a particular bank and the beneficiary of the LC is not a constituent of that bank, the
bank shall have the option to negotiate such LCs, subject to the condition that the proceeds are remitted to the regular
banker of the beneficiary.
141.Discontinuation of the requirement for Paper to Follow (P2F)for Central Government cheques under Cheque
Truncation System (December 31, 2015): RBI in consultation with the Office of the Controller General of Accounts(CGA),
Ministry of Finance, has decided to dispense with the current requirement of forwarding the paid Central Government
cheques in physical form (commonly known as P2F) to the Government departments. The government cheques would
henceforth be paid in CIS clearing solely based on their electronic images. The paid cheques in physical form would be
retained by the presenting bank. The presenting banks are required to preserve the physical instruments in their custody
securely for a period of 10 years. Drawee banks shall preserve the images of all government cheques tor a period of 10
years with themselves or through the National Archival System of National Payments Corporation of India (NPQ).
142.Roadmap for opening brick and mortar branches in villages with population more than 5000 without a bank
branch of a scheduled commercial bank (December 31, 2015): SLBC Convenor banks should identify villages with
population above 5000 without a bank branch of a scheduled commercial bank in their State. The Identified villages may be
allotted among scheduled commercial banks (including Regional Rural Banks) for opening of branches. The opening of bank
branches under this Roadmap should be completed by March 31, 2017.
143.Mobile Banking Transactions in India - Customer Registration for Mobile Banking (December 17, 2015): The
National Payment Corporation of India (NPCI) has develops the mobile banking registration service / option on the
National Financial Switch (NFS). The service is ready to be deployed on ATMs of all the NFS member banks. All the banks
participating in NFS should carry out necessary changes in their respective ATM switches and enable the capability of
customer registration for mobile banking at all their ATMs latest by 31st March 2016.
144.Engagement of Services of Expatriate Officers in Indian Offices of Foreign Banks (November 26, 2015): A
foreign bank can deploy a maximum of four expatriates for each branch opened in India and not more than six expatriates
for their Head Office functions.
145. Micro Finance Institutions (NBFC-MFIs)(November 26, 20i5): As per revised guidelines. Micro finance Institutions
can grant loans up to Rs 30000 for loans with tenure not less than 24 months.
146.Import of Goods into India - Evidence of Import (November 26, 2015): An importer has to submit as evidence of
import,(a) the exchange control copy of the Bill of Entry for home consumption;(b) the exchange controrcopy of the Bill
of Entry for warehousing, in the case of 100% Export Oriented Units (EOUs); or (c) Customs Assessnient Certificate or
Postal Appraisal Form as declared by the importer to the Customs Authorities. With the establishment of Free Trade
Warehousing Zones / SEZ Unit warehouses, imported goods can be stored therein, for re-export / re-selling purposes for
which Customs Authorities issue Ex-Bond Bill of Entry. Therefore, RBI has advised banks to consider the Bill of Entry issued
by Customs Authorities named as Ex-Bond Bill of Entry or by any other similar nomenclature, as evidence for physical
import of goods. Further, in cases where goods have been imported through couriers, the Courier Bill of Entry, as declared
by the courier companies to the Customs Authorities, may also be considered as evidence of import of goods.
147.Bank Finance to Factoring Companies (November 26, 2015): As per revised guidelines, banks can extend financial
assistance to support the factoring business of Factoring Companies provided they derive at least 50% of their income from
factoring activity and the receivables purchased / financed, irrespective of whether on 'with recourse' or 'without recourse'
basis, form at least 50% of the assets of the Factoring Company.
148.Provislon of Factoring Services by Banks (November 19, 2015): Banks offering factoring services may decide
percentage of the invoice to be paid upfront based on their own assessment of the credit worthiness of the assignor/ buyer.
Earlier the pre-payment amount offered by banks for the receivables acquired under factoring could not exceed 80% of the
invoice value.
149.Software Export - Filing of bulk SOFTEX (November 05, 2015): As per extant guidelines, a software exporter, whose
annual turnover is at least Rs.lOOO crore or who files at least 600 SOFTEX forms annually on an all India basis, is eligible to
declare all the off-site software exports in bulk in the form of a statement in excel format, to the competent authority for
certification on monthly basis. Now, RBI has decided to extend this facility to all software exporters. Accordingly, ail
software exporters can now file single as well as bulk SOFTEX form in excel format to the competent authority for
certification. Since the SOFTEX data from STPI/SEZ is being transmitted in electronic format to RBI, the exporters are
required to submit the SOFTEX form in duplicate as per the revised procedure. STPI/SEZ will retain one copy and handover
the duplicate copy to the exporters after due certification.
150.Switching from Barter Trade to Normal Trade at the Indo-Myanmar Border (November 05, 2015): RBI has
decided to do away with the barter system of trade at the Indo-Myanmar border and switch over completely to normal
trade with effect from December 1, 2015. Accordingly, all trade transactions with Myanmar, including those at the Indo-

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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block EKi -1, Paschim Vihar, New Delhi - 110063; PhOll 65476949, Oil 25274157,09350476949)

Myanmar border with effect from December 1, 2015 would be settled In any permitted currency In addition to the Asian
Clearing Union mechanism.
151.RBI grants 'in-principle' approval to NPCI to function as the central unit for Bharat Bill Payment Systems
(BBPS): Tlie Bharat Bill Payment System (BBPS), an Integrated bill payment system, will function as a tiered structure for
operating the bill payment system in the country with a single brand Image providing convenience of 'anytime anywhere'
blil payment to customers.
152.RBI grants "in-principle" approval to three applicants for setting up Trade Receivables Discounting System
(TReDS): In the Union Budget for 2015-16 the Union Finance Minister had highlighted the need for and use of TReDS for
Improving flow of funds to MSME sector by reducing the receivables realisation cycles. TReDS will allow SMEs to post their
receivables on the system and get them financed. This will not only give them greater access to finance but will also put
greater discipline on corporates to pay their dues on time. In line with this, RBI has decided to grant "in-princlple" approval
to the following three applicants to set up and operate Trade Receivables Discounting System (TReDS) - NSE Strategic
Investment Corporation Limited (NSICL) and Small Industries Development Bank of India (SIDBI), Mumbar Axis Bank
Limited, Mumbai; Mynd Solutions Pvt. Ltd., Gurgaon, Haryana
153.Internet Banking Facility for Customers of Regional Rural Banks & Cooperative banks (November 19, 2015):
RBI has decided to allow RRBs/ and all cooperative banks to extend the facility of internet banking to their customers.
154.Subscription to National Pension System by Non-Resident Indians (NRIs) (October 29, 2015): With a view to
enabling NRIs' access to old age income security, RBI, in consultation with the Government of India has decided to enable
National Pension System (NPS) as an investment option for NRIs under FEMA, 1999.
155.No fresh permission/ renewal of permission to LOs of foreign law firms (October 29, 2015): The Hon'ble Supreme
Court vide its interim orders dated July 4, 2012 and September 14, 2015, passed in the case of the Bar Council of India vs
A.K. Balaji fk Ors., has directed RBI not to grant any permission to any foreign law firm, on or after the date of the said
interim order, for opening of Liaison Office (LO) in India.
156.KYC - 'Officially Valid Documents' - Change In name on account of marriage (October 29, 2015): A document
shall be deemed to an "officially valid document" even if there is a change in the name subsequent to its issuance, provided
It IS supported by a marriage certificate issued by the State Government or a Gazette notification, indicating such'a change
of name. Banks may accept a copy of marriage certificate issued by the State Government or Gazette notification indicating
change in name together with a certified copy of the 'officially valid document' in the existing name of the person while
establishing an account based relationship or while undergoing periodic updatiori exercise.
157.Channellng transactions through Asian Clearing Union (ACU)(October 08, 2015): In view of the understanding
reached among the members of the ACU, RBI has decided to permit the use of the Ncstro accounts of the commercial
banks of the ACU member countries. I.e., the ACU Dollar and ACU Euro accounts, for settling the payments of both exports
and imports of goods and services among the ACU countries.

Category of loan LTV ratio(%)Risk Weight


(%)
Upto □ 30 lakh < 80 35
> 80 and < 90 50
Above □ 30 lakh and upto □ 75 < 75 35
lakh > 75 and < 80 50
Above □ 75 lakh < 75 75

to avail• oftubondjf-financing, RBI has—-y


decided to allow banks to provide PCE to bonds wan
issuedd view
by corporates /specialcorporates
CO encouraging purpose
vehicles (SPVs) for funding all types of projects. To begin with, banks wilt be allowed to offer PCE only in the form of a non-
funded irrevocable contingent line of credit.
160.Banknotes with new numbering pattern and special features for the visually impaired (September 24, 2015):
RBI will shortly put into circulation banknotes in the denominations of Rs 100, Rs 500 and Rs 1000 incorporating three
new/revised features - (i) ascending size of numerals in the number panels, (ii) bleed lines, and (iii) enlarged identification
mark. The current banknotes wiil be without inset letter in the number panels. Numerals in both the numbering panels of
banknotes will be in ascending size from left to right, while the first three alphanumeric characters (prefix) remain constant
in size. Printing the numerals in ascending size is a visible security feature in the banknotes so that the general public can
easily distinguish a counterfeit note from a genuine one. The banknotes of Rs 100 denomination will have four bleed lines,
Rs 500 denomination will have five angular bleed lines in three sets of 2-1-2 lines on the obverse in both, the upper left and
the right hand edge of the banknote. Similarly, Rs 1000 banknotes will have six angular bleed lines in four sets of 1-2-2-1
lines on the obverse in both, the upper left and right hand edge of the banknotes. These will facilitate identification of these
notes by visually impaired persons. The existing identification mark (circular-shape in Rs 500 and diamond in Rs 1000) near
the left edge of the banknote has been enlarged by 50%.
161.Constitution of the Audit Committee of the Board (September 24, 2015): RBI had issued guidelines on composition
of the Audit Committee of the Board (ACB) of Public Sector Banks vide circular dated September 26, 1995. Now, RBI has
advised that should a bank have more than one ED, the ED in-charge of internal inspection and audit should be the
23
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG •I, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157, 09350476949)

member of the ACB whereas other EDs can be invitees to the meeting if the agenda includes any item for discussion from
their domain.
162.Equity Investment by Banks (September 16, 2C15): As per extant guidelines, banks cannot participate in the equity of
financial services ventures including stock exchanges, depositories, etc., without obtaining the prior specific approval of
RBI. Now, RBI has advised that banks which have CRAR of 10 per cent or more and have also made net profit as of March
31 of the previous year need not approach RBI for prior approval for equity investments in cases where after such
investment, the holding of the bank remains less than 10 per cent of the investee company's paid up capital, and the
holding of the bank, along with its subsidiaries or joint ventures or entities continues to remain less than 20 per cent of the
investee company's paid up capital. The investment will continue to be subject to extant prudential limits.
163.Changes in RIGS time window (September 1, 2015): RBI has advised that RTGS will not be operated on second and
fourth Saturdays but would operate for full day on working Saturdays. Processing of future value dated transactions with
value date falling on second and fourth Saturdays will not be undertaken under RTGS. The RTGS time window with effect
from September 1, 2015 will be as under:
S. N. Time Event Time
1. Open for Business 08:00 hours
2. Initial Cut-off(Customer transactions) 16:30 hours
3. Final Cut-off(Inter-bank transactions) 19:45 hours
4. IDL Reversal 19:45 hours - 20:00 hours
5. End of Day 20:00 hours
164.Cash Withdrawal at Polnt-of-Sale(POS)-(August 27, 2015): RBI had allowed bank customers, to withdraw cash at
POS terminals upto Rs 1000 per day against all debit cards Issued In India and open system prepaid payment instruments
(PPIs) issued by banks in India. Now, RBI has enhanced the limit for cash withdrawal at POS (for debit cards and open
system prepaid cards issued by banks in India) from Rs.lOOO/- to Rs.2000/- per day In Tier III to VI centres. The per-day
limit in Tier I and 11 centres remains unchanged. Customer charges, if any, levied on cash withdrawals shall not exceed 1%
of the transaction amount at all centres irrespective of the limit of Rs 1000 / Rs 2000.
165.RELIEF MEASURES BY BANKS - NATURAL CALAMITIES (August 21, 2015): RBI has allowed SLBC/DLCC/ banks to
take a view on rescheduling of loans if the crop loss is 33% or more. Further, banks may allow a maximum period of
repayment of up to 2 years (including the moratorium period of 1 year) if the loss is between 33% and 50%. If the crop
loss is 50% or more, the restructured period for repayment may be extended to a maximum of 5 years (including the
moratorium period of one year).
166.RBI grants ''in-principle" approval to 11 Applicants for Payments Banks: Aditya Biria Nuvo Limited; Airtel M
Commerce Services Limited; Cholamandalam Distribution Services Limited; Department of Posts; Pino PayTech Limited;
National Securities Depository Limited; Reliance Industries Limited; Shri Dilip Shantilal Shanghvi; Shri Vijay Shekhar
Sharma; Tech Mahindra Limited; Vodafone m-pesa Limited
167.CGSMSE - Change In Annual Guarantee Fee: The Credit Guarantee Fund Trust presently charges uniform guarantee
fees from all banks without reference to the level of NPAs reported by the banks. Now, the Trust has decided to charge
differential rates of AGF, depending upon the NPA levels reported by the banks as per rates given below. The proposed

S.No Annual Service Fee (ASF)/Annual Guarantee Fee (AGF)


NPA level of the MU(%) ASF/AGF(%)
1 Above 20% SR 4- 100 bps
2 15% - 20% SR + 50 bps
3 12% - 15% SR + 25 bps
4 12% and below SR
5 Below 6% SR - 25 bps @
1. SR = Standard Rate (Existing ASF/AGF prescribed rate).
2. Changed rates are not applicable for credit facility up to Rs 5 lakh.
3. NPA level of the MLI shall be computed as a % of guarantees issued on and up to March 31 every year.
4. Provided MU has been obtaining guarantee cover from the Trust for at lea^t 5 complete years.

the objective of working out a medium-term (five year) measurable action plan for financial inclusion. The Committee will
be headed by Shri Deepak Mohanty, Executive Director, Reserve Bank of India
119.RBI releases Final Guidelines on PPI for Mass Transit System (PPI-MTS): The PPI-MTS can be used within the
mass transit systems and will have a minimum validity of six months from date of issue. Such PPIs will be reloadable
instruments subject to an outstanding limit of Rs 2,000/- at any point of time. Apart from the mass transit system, such
PPI-MTS can be used at other merchants whose activities are alli^ to or are carried on within the premises of the transit
system.
120.Financial Benchmarks India Pvt. Ltd.(FBIL)- Benchmark Administrator (July 02, 2015): As per the
recommendations of the Committee on Financial Benchmarks headed by Shri P. Vijaya Bhaskar, Executive Director, an
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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

independent company named Tinancial Benchmarks India Pvt. Ltd.{FBIL), has been jointly formed by FIMMDA, the Foreign
Exchange Dealers' Association of India (FEDAI) and the Indian Banks' Association (ISA)for administration of benchmarks in
financial markets. FBIL has taken over the administration of the benchmark for the overnight inter-bank rate.
121.Deposits placed with NABARD/SIDBI/NHB for meeting shortfall in Priority Sector Lending by Banks (July 16,
2015): As per extant guidelines, banks are permitted to hold among others, RIDF/SIDBI/RHDF deposits under Held to
Maturity (HTM) category and deposits placed with SIDBI/NABARD in lieu of shortfall in lending to priority sector should be
shown under Schedule 8 Investments of the balance sheet. RBI has now decided that for accounting periods commencing
on or after April 1, 2015, deposits placed with NABARD/SIDBI/NHB on account of shortfall in priority sector targets should
be included under Schedule 11- 'Other Assets' under the subhead 'Others' of the Balance Sheet.
122.NPA Norms j^rtaining to Advances - Credit Card Accounts (July 16, 2015): RBI has decided that, with effect from
July 16, 2015,'past due' status of a credit card account for the purpose of asset classification would be reckoned from the
payment due date mentioned in the monthly credit card statement. However, banks shall report a credit card account as
'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges, etc., if any, only when a
credit card account remains'past due'for more than three days.
123.Kisan Vikas Patra, 2014 and Sukanya Samriddhi Account (July 2, 2015): RBI has decided to pay agency commission
to authorised banks for handling the work relating to the above two schemes as per the extant rates for Govt business
which are given below: Receipts - Physical mode: Rs 50 per transaction; Receipts - e-mode: Rs 12 per transaction; Pension
payments: Rs 65 per transaction; Other Payments: 5.5 paise per Rs 100
i24.0pening of Current Accounts by Banks - Need for Discipline (July 02, 2015): At the time of opening of current
accounts, banks should insist on a declaration from the account-holder to the effect that he is not enjoying any credit
facility with any other bank or obtain a declaration giving particulars of credit facilities enjoyed by the intending customer
with any other bank(s). Branches should not open current accounts of entities which enjoy credit facilities (fund based or
non-fund based) from the banking system without specifically obtaining a No-Objection Certificate (NOG)from the lending
bank($). Banks may open current accounts of prospective customers In case no response is received from the existing
bankers after a minimum waiting period of a fortnight. If a response is received within a fortnight, banks should assess the
situation with reference to information provided on the prospective customer by the bank concerned and are not required
to solicit a formal no objection. Further, RBI has set up a Central Repository of Information on Large Credits (CRILC) and
banks are required to report information to CRILC in respect of all borrowers' credit exposures having aggregate fund-
based and non-fund based exposure of Rs.50 million and above and outstanding current account balance of their
customers (debit or credit) of Rs 10 million and above. RBI has now advised that banks should make use of the information
available in CRILC and not limit their due diligence to seeking NOC from the bank with whom the customer is supposed to
be enjoying the credit facilities as per his declaration. Banks should verify from the data available in CRILC database
whether the customer is availing of credit facility from another bank. Further banks may also seek 'No Objection Certificate'
from the drawee bank where the initial deposit to current account is made by way of a cheque.
125.The Depositor Education and Awareness Fund Scheme, 2014 (June 18, 2015): As per extant guidelines, banks are
required to submit returns to RBI on Form I and Form II. RBI has now decided to club Form I and Form II together in a
new form,"Form I & H".
126.Prlority Sector Lending - Revised Reporting System (June 11, 2015): RBI has advised banks to furnish data on
priority sector advances, as per revised formats. The revised quarterly and yearly statements should be furnished to RBI
within fifteen days and one month, respectively, from the reference date starting from June 2015 for quarterly statement
and March 31, 2016 for the yearly one. Further, RBI has decided to discontinue Monthly Statement on Priority Sector
Advances and Sectoral Deployment of Credit.
127.Submission of Long Form Audit Report (LFAR) by Concurrent Auditors (June 4, 2015); RBI has decided that
Concurrent Auditors, who are chartered accountants, of branches below the cut-off point will submit LFAR only to the
Chairman of the bank. The banks in turn will consolidate/compile all such LFARs submitted by the Concurrent Auditors and
submit to Statutory Central Auditor as an internal document of the bank.
128.Export of Goods and Services-Declaration of Exports of Goods/Software(May 14, 2015); RBI has dispensed with
the requirement of declaring the export of Goods /Software in the SDF in case of exports takino place through the EDI
ports, as the mandatory statutory requirements contained in the SDF have been subsumed in the Shipping Bill format
129.Foreign Currency (Non-Resident) Account (Banks)(FCNR (B) Scheme (May 14, 2015): At the time of closure of
FCNR (B) deposits and subsequent remittance of funds banks should not insist on Submission of A2 form, physical presence
of the account holder. A2 form is to be filed at the time of purchase of foreign exchange using rupee funds and hence is
not applicable while remitting FCNR (B) funds. Banks, with the help of technology, will have to devise better alternatives/
methods for ensuring bonafides of the transaction rather than insisting on physical presence of the account holder.
130.Banks to appoint Internal Ombudsman (11 May 2015): All public sector banks and ICICI Bank Ltd., HDFC Bank Ltd.,
Axis Bank Ltd., Kotak Mahindra Bank Ltd., Indusind Bank Ltd., Standard Chartered Bank, Citi Bank N.A. and HSBC Ltd.
should appoint an internal ombudsman. The internal ombudsman would be designated Chief Customer Service Officer
(CCSO). The CCSO should not have worked in the bank in which he/she is appointed as CCSO. These banks have been
selected on the basis of their asset size, business mix, etc.

25
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

131.Mandatory issue of acknowledgement to pensioners on submission of life certificates (May 07, 2015): Banks
handling government pension payments should issue a duly signed acknowledgement to pensioners on receipt of the life
certificate submitted in physical form. Banks may also consider entering the same in their CBS immediately on receipt and
issuing a system generated receipt to the pensioners.
132.Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJ3BY); The scheme will be implemented from June 1st, 2015. Pradhan
Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme offers life insurance worth Rs 2 lakhs at Rs 330 per annum. The scheme
is available to all bank account holders whose age is between 18 to 50 years.
133.Pradhan Mantri Suraksha Bima Yojana (PMSBY): The scheme will be implemented from June 1st, 2015. Pradhan
Mantri Suraksha Bima Yojana (PMSBY) offers accident insurance worth Rs 2 lakhs at Rs 12 per annum. The scheme is
available to all bank account holders whose age is between 18 to 70 years.
134.Framework for dealing with loan frauds (May 7, 2015): The issues relating to prevention, early detection and
reporting of frauds has been looked into by an Internal Working Group (IWG) of the RBI and based on its
recommendations, RSI has prepared a framework for fraud risk management in banks.
135.Merchanting Trade to Nepal and Bhutan (April 30, 2015): Goods consigned to the importers of Nepal and Bhutan from
third countries under merchanting trade from India would qualify as traffic-in-transit, if the goods are otherwise compliant
with the provisions of the India-Nepal Treaty of Transit and Indo-Bhutan Treaty of Transit respectively.
136.Rlghts of transgender persons - Changes In bank forms/applications (April 23, 2015): As per the judgement
dated April 15, 2014 of the Supreme Court in the case of National Legal Services Authority v. Union of India and others, the
Supreme Court, upheld transgender persons' right to decide their self-identified gender and directed the Centre and State
Government to grant legal recognition of their gender identity such as mate, female or dS third gender. Therefore, banks
should include Third gender' in all forms/applications etc. prescribed by RBI or the banks themselves, wherein any gender
classification is envisaged.
137.Simpllfled procedure for opening of Currency Chests (April 23, 2015): A. Locations that are at/ close to the
International Border/ Insuroencv affected areas: In case the place of the proposed location of a currency chest is within 80
kms from the international border and it is not a State Capital or a cantonment area, banks may approach Regional Offices
(ROs) of the RBI for obtaining security clearance. B. All other locations: Banks may construct new CCs at any place after
informing the RO concerned of the RBI, under whose jurisdiction it is to be established. The banks should also obtain all
necessary approvals from other agencies before beginning construction.
138.Coilection and Dissemination of Information on Wilful Defaulters (April 23, 2015): (a) The evidence of wilful
default on the part of the borrowing company and its promoter/whole-time director at the relevant time should be
examined by a Committee headed by an Executive Director and consisting of two other senior officers of the rank of
GM/DGM;(b) The Order of the Committee should be reviewed by another Committee headed by the Chairman / CEO and
MD and consisting, in addition, of two independent directors of the Bank and the Order shall become final only after it is
confirmed by the said Review Committee,(d) Except in very rare cases, a non-whole time director should not be considered
as a wilful defaulter unless it is conclusively established that (I) he was aware of the fact of wilful default by the borrower
by virtue of any proceedings recorded in the Minutes of the Board or a Committee of the Board and has not recorded his
objection to the same in the Minutes, or, (II) the wilful default had taken place with his consent or connivance. However,
the above exception will not apply to a promoter director even if not a whole time director.
139.Collection and Dissemination of Information on Defaulters (April 23, 2015): A non-whole time director should not
be considered as a defaulter unless it is conclusively established that he was aware of the fact of default by the borrower
by virtue of any proceedings recorded in the Minutes of the Board or a Committee of the Board and has not recorded his
objection to the same in the Minutes, or, the default had taken place with his consent or connivance. However, the above
exception will not apply to a promoter director, even if not a whole time director. Therefore, while disseminating
information to Credit Information Companies on borrowers with outstanding amount aggregating Rs. 1 crore and above
classified as doubtful or loss assets (non-suit filed as well as suit filed accounts), banks/FIs should exclude the names of
non-whole time directors (Nominee and Independent Directors) other than the promoter directors from the list, except in
the rarest circumstances specified above.
140.Interest Rates on Deposits (April 16, 2015): Currently, banks are allowed to offer differential rates of interest on term
deposits on the basis of tenor for deposits less than Rs 1 crore and on the basis of quantum and tenor on term deposits of
Rs 1 crore and above. RBI has introduced the feature of early withdrawal facility in a term deposit as a distinguishing
feature for offering differential rates of interest. Banks will have the discretion to offer differential interest rates based on
whether the term deposits are with or without-premature-withdrawal-facility. However, all term deposits of individuals (held
singly or jointly) of Rs 15 lakh and below should, necessarily, have premature withdrawal facility. For other term deposits,
banks can offer deposits without the option of premature withdrawal as well.
141. NPA norms - Projects Under Implementation (April 6, 2015): RBI has decided that in cases where, in the assessment
of the banks, the implementation of the project has been stalled primarily due to inadequacies of the existing promoters
and a subsequent change in the ownership of the borrowing entity has been effected, banks may permit date of extension
of commencement of commercial operations (DCCO) up to a further period of two years, in addition to the extension of
DCCO permitted under existing regulations.

26
A K GUITA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

142.Provisioning pertaining to Fraud Accounts; In accounts where there are potential threats for recovery on account of
frauds committed by borrowers, the entire amount due to the bank (irrespective of the quantum of security held against
such assets), or for which the bank is liable (including in case of deposit accounts), is to be provided for over a period not
exceeding four quarters commencing with the quarter in which the fraud has been detected;
143.Prudential Guidelines on Capital Adequacy and Liquidity Standards (March 31, 2015): The prudential guidelines
issued by RBI on capital adequacy framework and liquidity standards for banks operating in India are based on the reform
package, as agreed to by the Basel Committee on Banking Supervision (BCBS). To ensure that these minimum prudential
standards are consistent with that followed in other member countries, RBI has made certain modifications to the
guidelines which will be applicable with effect from April 1, 2015.
144. Utilisation of Floating Provisions/Counter Cyclical Provisioning Buffer (March 30, 2015): RBI has allowed banks to
utilise upto 50 per cent of countercyclical provisioning buffer/floating provisions held by them as at the end of December
31, 2014, for making specific provisions for non-performing assets. Utilisation of countercyclical provisioning buffer/floating
provisions under this measure would be over and above the utilisation of countercyclical provisioning buffer/floating
provisions as permitted vide circular dated February 25, 2014 on 'Framework for Revitalising Distressed Assets in the
Economy - Refinancing of Project Loans, Sale of NPA and Other Regulatory Measures'.
145.Non-Resldent Deposits - Stat 5 and Stat 8 Returns(March 18, 2015): As per extant guidelines, banks are required to
submit statement of Non Resident deposit accounts on Stat 5 and Stat 8. Further banks were required to subm.t data NRD-
CSR data in XBRL platform. As banks' submission of NRD-CSR data in XBRL platform has stabilised, RBI has decided to
discontinue the submission of Stat 5 and Stat 8 Returns from March 2015.
146.Housing Loans: Review of Instructions (5.3.2015): As per current instructions, banks should not include stamp duty,
registration and other documentation charges in the cost of housing property so that the effectiveness of LTV ratio is not
diluted. Now, RBI has decided that where the cost of the house/dwelling unit does not exceed Rs.lO lakh, banks may add
stamp duty, registrabon and other documentation charges to the cost of the house/dwelling unit for the purpose of
calculating LTV ratio.
147.Housing Loans - Construction linked disbursal of housing loan (5.3.2015): As per extant guidelines, disbursal of
housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project/houses
and upfront disbursal should not be made in cases of incomplete/under-construction/green field housing projects. Now, RBI
has decided that in cases of projects sponsored by Government/Statutory Authorities, they may disburse the loans as per
the payment stages prescribed by such authorities, even where payments sought from house buyers are not linked to the
stages of construction, provided such authorities have no past history of non-completion of projects.
148.Import of Goods Into India - Form A 1 (February 12, 2015): RBI has decided to dispense with the requirement of
submitting request in Form A-1 to the AD Category -I Banks for making payments towards imports into India. Banks should
obtain all the requisite details from the importers and satisfy itself about the bonafides of the transactions.
149.Delay In Utilisation of Advance Received for Exports (February 09, 2015): As per extant guidelines, an exporter
receiving an advance payment for exports (with or without interest) from a buyer outside India shail be under an obligation
to ensure that the shipment of goods is made within the stipulated period (generally one year but may be more than one
year in certain situations) from the date of receipt of advance payment. Doubtful cases as also instances of chronic
defaulters may be referred to Directorate of Enforcement (DoE) for further investigation. A quarterly statement indicating
details of such cases may be sent to the concerned Regional Offices of RBI within 21 days from the end of each quarter.
150.Kisan Vikas Patra, 2014 (February 09, 2015): The new Kisan Vikas Patra, 2014 Scheme, is required to be implemented
through the designated branches of the Agency banks, which have been authorized for Public Provident Fund, 1968 (PPF,
1968) Scheme, together with Post Offices, doing Savings Bank Work.
151.Export Credit Refinance facility discontinued (3.2.2015): RBI has decided to replace export credit refinance (ECR)
facility with the provision of system level liquidity with effect from February 7, 2015.
152.Updatlon of list of Inoperative accounts on Bank's website (February 2, 2015): Banks were required to display the
list of unclaimed deposits/ inoperative accounts which are inactive/ inoperative for ten years or more on their respective
websites by June 30, 2012 and March 31, 2015, respectively. The list displayed on the websites must contain only the
names of the account holder(s) and his/her address in respect of unclaimed deposits/inoperative accounts. In case such
accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be
indicated. However, the account number, its type and the name of the branch shall not be disclosed on the bank's website.
RBI has now advised banks to update their websites at least on a monthly basis by: i) adding the names and address of the
account holders whose deposits have been transferred to the Fund during the month/period; ii) deleting the names and
address of account holders whose claim were admitted by the banks during the month/period. In doing this the banks need
not wait for refund from the Fund.
153.Dispensing with 'No Due Certificate' for lending by banks (January 28, 2015): RBI has advised banks to dispense
with obtaining 'No Due Certificate' from the individual borrowers (including SHGs & JLGs) in rural and semi-urban areas for
all types of loans including loans under Government Sponsored Schemes, irrespective of the amount involved unless the
Government Sponsored Scheme itself provides for obtention of 'No Dues Certificate'. While Service Area Approach
continues to be applicable for Government Sponsored Schemes, the borrower is free to approach any bank branch in his
service area for obtaining credit under Government Sponsored Schemes. Banks should use an alternative framework of due

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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block B6• I, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157,09350476949)

diligence as part of credit appraisal exercise other than the 'No Due Certificate' which could, among others, consist of one
or more of the following: (a) Credit history check through credit information companies;(b) Self declaration or an affidavit
from the borrower; (c) CERSAI registration; (d) Peer monitoring; (e) Information sharing among lenders;(0 Information
search (writing to other lenders with an auto deadline)
154.Export and Import of Indian Currency (January 22, 2015): A person may take or send out of India to Nepal or Bhutan
and bring into India from Nepal or Bhutan, currency notes of Government of India and Reserve Bank of India for any
amount in denominations up to Rs.lOO/-. RBI has decided that, an individual may carry to Nepal or Bhutan, currency notes
of Reserve Bank of India denominations above Rs.lOO/-, i.e. currency notes of Rs.500/- and^r Rs.lOOO/- denominations,
subject to a limit of Rs.25000/-.
155.Recovery of Interest on delayed payments and permissible period for remittance of Government Receipts
into Government Account (February 18, 2015): With a view to bring uniformity in the procedure for reporting both
Central and State Government Transactions to Reserve Bank, RBI has decided that the petty claims of delayed period penal
interest involving amount of Rs 500/- or below will be ignored and excluded from the purview of penal interest. Further, the
permissible period of remittance in respect of all State Governmenl transactions made through e-mode will also be J+1
working day (including put through date).
156.Membership of Credit Information Companies (CICs) (January 15, 2015): (i) All Credit Institutions (CIs) shall
become members of all CICs and submit data (including historical data) to them. Further, CICs and CIs shall keep the credit
information collected/maintained by them, updated regularly on a monthly basis or at such shorter intervals as may be
mutually agreed upon between the U and the CIC; (ii) One-time membership fee charged by the CICs, for CIs to become
their members, shall not exceed Rs.10,000 each. The annual fees charged by the aCs to Qs shall not exceed Rs.500D
each. These guidelines should be complied within three months from the date of RBI directive dated 15 Jan 2015.
157.1nsurance Business by banks by setting up a subsidiary/JV for undertaking insurance business with risk
participation (January 15, 2015): Banks are not allowed to undertake insurance business with risk participation
departmentally and may do so only through a subsidiary/JV set up for the purpose. Banks which satisfy the eligibility
criteria (as on March 31 of the previous year) given below may approach Reserve Bank of India to set up a subsidiary/joint
venture company for undertaking insurance business with risk participation: a) The net worth of the bank should not be
less than Rs.lOOO crore (earlier Rs 500 crore); b) The CRAR of the bank should not be less than 10 per cent; c)Tne level of
net non-performing assets should be not more than 3 percent (earlier reasonable); d) The bank should have made a net
profit for the last three continuous years; e) The track record of the performance of the subsidiaries, if any, of the
concerned bank should be satisfactory.
158.Non-Cooperatlve Borrowers (Dec 22, 2014): A non-cooperative borrower is one who does not engage constructively
with his lender by defaulting in timely repayment of dues while having ability to pay, thwarting lenders' efforts for recovery
of their dues by not providing necessary information sought, denying access to assets financed / collateral securities,
obstructing sale of securities, etc. The cut off limit for classifying tx)rrowers as non-cooperative would be those borrowers
having aggregate fund-based and non-fund based facilities of Rs.50 million (Rs 5 crore) from the concerned bank/FI. A
non-cooperative borrower in case of a company will include, besides the company, its promoters and directors (excluding
independent directors and directors nominated by the Government and the lending institutions). The decision to classify the
borrower as non-cooperative borrower should be entrusted to a Committee of higher functionaries headed by an Executive
Director and consisting of two other senior officers of the rank of General Managers/ Deputy General Managers. The order
of the Committee should be reviewed by anuther Committee headed by the Chairman / CEO and MD and consisting, in
addition, of two independent directors of the Bank/FI and the order shall become final only after it is confirmed by the said
Review Committee. Banks/FIs should report information on their non-cooperative borrowers to CRILC under CRILC-MaIn
(Quarterly Submission) return within 21 days from the close of the relevant quarter. Any fresh exposure to Non -
cooperative borrower will require higher provisioning.

Deposit Rates from 10.12.2014

S No overall P.S. Revised Rates


'1 lending target
1 jless than 5% Bank Rate minus 2%

2 |5% to less than 10% |Bank Rate minus 3%


3 |lO% and above Bank Rate minus 4%

of government pension, pensioners are required to furnish a life certificate in November every year to the bank concerned
for continued receipt of pension without interruption. Now, the Government of India has since launched "Jeevan Pramaan",
a digital life certificate based on Aadhaar Biometric Authentication. The Central Pension Accounting Office, Ministry of
Finance, Government of India (CPAO) has amended the Scheme of Payment of Pensions to Central Government Civil
Pensioners stating that a Life Certificate issued online by a Government Agency as a result of Aadhar Biometric
Authentication will also be accepted as a valid certificate. This document may be accessed through a Website by the
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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949,Oil 25274157,09350476949)

Pension Disbursing Agency without insisting either on personal appearance of the pensioner or Life Certificate by the
Competent Authority.
161.Mobile Banking Transactions in India (December 04, 2014): RBI has advised banks to provide options for easy
registration for mobile banking services to tfieir customers, through multiple channels, thus minimizing the need for the
customer to visit the branch for such services. The time taken between registration of customers for mobile banking
services and activation of the service should also t>e minimal.
162.Credit facilities to Minority Communities - Inclusion of Jain Community (December 03, 2014); Ministry of Minority
Affairs, Government of India, have notified the Jain Community as a minority community, vide notification dated January
27, 2014. This is in addition to five communities already notified as minority communities, viz. Sikhs, Muslims, Christians,
Zoroastrians and Buddhists.
163.Small Banks: Qbiectives: To further financial inclusion; (b) Eligible promoters: Resident individuals/professionals with 10
years of experience in banking and finance; and companies and societies owned and controlled by residents; (c). Scope of
activities: Basic banking activities of acceptance of deposits and lending to unserved and underserved sections; (d) Capital
requirement: The minimum paid-up equity capital - Rs. 100 crore; Minimum capital adequacy ratio -15%; Tier I capital
should be at least 7.5 per cent of RWAs;(e) Promoter's contribution: at least 40%.(e) Prudential norms: PS target - 75%
of ANBC. Exposure to a single and group obligor - Maximum 10% and 15% of its capital funds; at least 50 per cent of its
loan portfolio should constitute loans and advances of upto Rs.25 lakh.
164.Payment Banks: (a) Qbiectives: financial inclusion by providing (i) small savings accounts and (ii) payments/remittance
services to migrant labour workforce, low income households, small businesses, other unorganised sector entities; (b)
Eligible promoters: (a) Existing non-bank Pre-paid Payment Instrument (PPI) issuers; and other entities such as individuals
/ professionals; NBFCs; corporate Business Correspondents (BCs), mobile telephone companies, super-market chains,
companies; Promoter/promoter groups should have professional experience or running their businesses for at least a period
of five years; (c) Scope of activities: Acceptance of demand deposits, i.e., current deposits, and savings bank deposits; No
NRI deposits should be accepted. Maximum balance of Rs. 100,000 per individual customer. Issuance of ATM/debit cards
except credit cards. Payments and remittance services through various channels including branches. Automated Teller
Machines (ATMs), Business Correspondents (BCs) and mob'le banking. Issuance of PPIs. BC of another bank; (d)
Deployment of funds: cannot undertake lending activities; invest minimum 75% of its "demand deposit balances" in SLR
eligible Government securities/treasury bills with maturity up to one year and hold maximum 25% in current and time/fixed
deposits with other scheduled commercial banks; (e) Capital reouirement: Minimum paid-up equity capital - PnS. 100 crore.
Capital adequacy ratio - minimum 15% of RWA. Tier I capital should be at least 7.5% of RWAs. Leverage ratio of not less
than 3 per cent, i.e., its outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves); (f)
Promoters' contribution: at least 40% of paid up capital for the first five years;(g) Prudential norms: Not applicable.
165.Release of Foreign Exchange for Haj/ Umrah pilgrimage (November 21, 2014): Authorised Dealers and Full Fledged
Money Changers may release the full amount of BTQ entitlement in cash or up to the cash limit specified by the Haj
Committee of India, to the Haj/ Umrah pilgrims also.
166.Levy of penal charges on non-maintenance of minimum balances in savings bank accounts (November 20,
2014): While levying charges for non-maintenance of minimum balance in savings bank account, banks shall follow
guidelines given below from April 1, 2015: (i) In the event of a default in maintenance of minimum balance/average
minimum balance, the bank should notify tfie customer clearly by SMS/ email/ letter etc. that in the event of the minimum
balance not being restored in the account within a month from the date of notice, penal charges will be applicable, (ii) In
case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date
of notice of shortfall, penal charges may be recovered under intimation to the account holder, (iii) The policy on penal
charges to be so levied may be decided with the approval of Board of the bank, (iv) The penal charges should be directly
proportionate to the extent of shortfall observed. In other words, the charges should be a fixed percentage levied on the
amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of
opening of account. A suitable slab structure for recovery of charges may be finalized, (v) Penal charges should be
reasonable and not out of line with the average cost of providing the services, (vi) The balance in the savings account
should not turn into negative balance solely on account of levy of charges for non-maintenance of minimum balance.
167.Export of Goods / Software / Services - Period of Realisation (November 20, 2014): The period of realization and
repatriation of export proceeds shall be nine months from the date of export for all exporters including Units in SEZs, Status
Holder Exporters, EOUs, Units in EHTPs, STPs & BTPs until further notice. The period of realization and repatriation to India
of the full exports made to warehouses established outside India shall continue to be 15 months.
168.KYC guidelines - Freezing of accounts (October 21, 2014); (i) Banks need not seek fresh proofs of identity and
address at the time of periodic updation, from those customers who are categorised as 'low risk', in case of no change in
status with respect to their identities and addresses. A self-certification by the customer to that effect should suffice in such
cases. In case of change of address of such 'low risk' customers, they could merely forward a certified copy of the
document (proof of address) by mail/post, etc. Banks may not insist on physical presence of such low risk customer at the
time of periodic updation; (ii) If an existing KYC compliant customer of a bank desires to open another account in the same
bank, there should be no need for submission of fresh proof of identity and/or proof of address for the purpose; (iii) If a
customer does not comply with KYC requirements despite repeated reminders by banks, banks should impose 'partial
29
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block 8G -1,Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

freezing' on such KYC non-compliant in a phased manner. Meanwhile, the account holders can revive accounts by
submitting the KYC documents as per instructions in force. While imposing 'partial freezing', banks are advised to ensure
that the option of 'partial freezing' is exercised after giving due notice of three months initially to the customers to comply
with KYC requirement and followed by a reminder for further period of three months. Thereafter, banks may impose 'partial
freezing' by allowing all credits and disallowing all debits with the freedom to close the accounts. If the accounts are still
KYC non-compliant after six months of imposing initial 'partial freezing' banks may disallow all debits and credits from/to
the accounts, rendering them inoperative. It would always be open to the bank to close the account of such customers.
169.KYC - clarification on proof of address (October 13, 2014); For opening account, the prospective account holder is
required to given only one proof of address whether permanent or current. Banks should not insist on submission of a proof
of address for the current address when a customer produces a proof of permanent address.
170.Usage of ATMs - Rationalisation of number of free transactions at other bank's ATM (October 10, 2014, August
14, 2014): Earlier, banks were mandated not to charge any fees to their savings bank account customers for five ATM
transactions (inclusive of both financial and non-financial) in a month carried out at other bank ATMs irrespective of the
location of the ATMs. RBI has revised the Directions effective from November 01, 2014: (1) Free transactions at ATMs
located in the six metro centres: fhe number of mandatory free ATM transactions for savings bank account customers at
other banks' ATMs is reduced from the present five to three transactions per month (inclusive of both financial and non-
financlal transactions) for transactions done at the ATMs located in the six metro centres, viz. Mumbai, New Delhi, Chennai,
Kolkata, Bengaluru and Hyderabad. This reduction wiil, however, not apply to small / no frills / Basic Savings Bank Deposit
account holders who will continue to enjoy five free transactiotis, as hitherto; 2. Free transactions at Other Locations: At
other locations i.e. other than the six nietro centres mentioned above, the present facility of five free transactions for
savings bank account customers shall remain unchanged. 3. While the overall cap of 5 free transactions in a month remains
unchanged, THREE transactions (inclusive of both financial and non-financial) would be free of charge if carried out at
other bank ATMs located in six metro centres,viz., Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.
Accordingly, if transactions are carried out at both the six metro centres and other locations, the total number of
transactions (inclusive of both financial and non-financial) free of charge at other bank ATMs would continue to remain at
FIVE. Banks are, however, free to offer more number of free transactions per month at other bank ATMs in any
geographical location. Banks are also free to decide on the combination (for metro & non-metro locations) of free
transactions while adhering to the minimum requirements.
171.Usage of ATMs - Rationalisation of number of free transactions at own bank ATM (August 14, 2014): At least
five free transactions (inclusive of financial and non financial transactions) per month should be permitted to the savings
bank account customers for use of own bank ATMs at all locations. Beyond this, banks may put in place appropriate Board
approved policy relating to charges for customers for use of own bank ATMs. However, a bank may offer more than five
free transactions at own bank ATMs to its account holders if it so desires.
172.Charges for ATM transactions: Beyond free transactions, there will be a ceiling / cap on customer charges of Rs.20/-
per transaction (plus service tax, if any) as at present. 5. Alerting the customer: Banks should put in place suitable
mechanism for cautioning / advising / alerting the customers about the number of free transactions(OFF-US as well as ON
US) already utilised during the month by the customer and the possibility that charges may be levied as per the banks'
policy on charges.
173.Joint Lenders' Forum (3LF) and Corrective Action Plan (CAP): (October 21, 2014): RBI has reviewed the
'Framework for Revitalising Distressed Assets in the Econom/ and certain changes have been made.
174.Guidelines on Wilful Defaulters (September 9, 2014): 1. Wilful Default: As per extant guidelines, a "wilful default"
would be deemed to have occurred if the unit has defaulted in meeting its payment / repayment obligations to the lender
even when it has the capacity to honour the said obligations. Now, RBI has clarified that (a) The term 'lender' covers all
banks/FIs to which any amount is due, provided it is arising on account of any banking transaction, including off balance
sheet transactions such as derivatives, guarantee and Letter of Credit; (b) The term 'unit' would include individuals, juristic
persons and all other forms of business enterprises, whether incorporated or not. In case of business enterprises (other
than companies), banks/FIs may also report (in the Director column) the names of those persons who are in charge and
responsible for the management of the affairs of the business enterprise. 2. Guarantees furnished bv group companies:
While dealing with wilful default of a single borrowing company in a Group, the banks /FIs should consider the track record
of the individual company, with reference to its repayment performance to its lenders. However, in cases where guarantees
furnished by the companies within the Group on behalf of the wilfully defaulting units are not honoured when invoked by
the banks /FIs, such Group companies should also be reckoned as wilful defaulters. 3. Guarantors as willful defaulters:
Where a banker has made a claim on the guarantor on account of the default made by the principal debtor, and guarantor
refuses to comply with the demand made by the creditor/banker, despite having sufficient means to make payment of the
dues, such guarantor would also be treated as a wilful defaulter. This rule will also be applicable to guarantors who are
either individuals (not being directors of the company) or non-group corporate.
175.Upper age limit for Whole Time Directors on the Boards of Banks (September 9, 2014): RBI has decided that the
upper age limit for MD & CEO and other Whole Time Directors of banks in the private sector should be 70 years, i.e.
beyond which nobody should continue in the post. Within the overall limit of 70 years, individual bank's Boards are free to
prescribe a lower retirement age for the WTDs, including the MD & CEO, as an internal policy.
30
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block B6 -1, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

176.Timellnes for Credit Decisions(September 1, 2014): RBI has advised that banks should clearly delineate the procedure
for disposal of loan proposals, with appropriate timelines, and institute a suitable monitoring mechanism for reviewing
applications pending beyond the specified period. Banks may also make suitable disclosures on the timelines for conveying
credit decisions through their websites, notice-boards, product literature, etc.
177.Inoperative Accounts (September 1, 2014): As per extant guidelines, a savings as well as current account should be
treated as inoperative/dormant if there are no transactions in the account for over a period of two years. For the purpose
of classifying an account as inoperative, both the types of transactions i.e. debit as well as credit transactions induced at
the instance of customers as well as third party should be considered. RBI has now clarified that where the customer has
given a mandate for crediting dividend on shares to Savings Bank account, the credit of dividend to the account should be
treated as a customer induced transaction. The Savings Bank account can be treated as inoperative account only after two
years from the date of the last credit entry of the dividend, provided there is no other customer induced transaction.
178.Treatment of accounts opened for credit of Scholarship Amounts under Government Schemes (September 1,
2014): RBI, vide circular dated September 17, 2013 had advised banks to allot a different "product code" in their CBS to
accounts opened by banks for beneficiaries under the various Central / State Government Schemes including scholarship
schemes for students so that the stipulation of inoperative /dormant account due to non-operation does not apply. Now,
based on a direction from Bombay High Court, RBI has advised banks to ensure that accounts of all student beneficiaries
under the various Central/State Government Scholarship Schemes are free from restrictions of'minimum balance' and total
credit limit'. Thus, there would be no limit on total credits in such accounts.
179.Amendment to Public Provident Fund Scheme (August 22, 2014): The Government of India, vide notification dated
August 13, 2014 has enhanced the Individual subscription limit under the Public Provident Fund (PPF) Scheme, 1968, from
existing Rs 1,00,000 to Rs 1,50,000 in a financial year.
180.Pradhan Mantri Jan Dhan Yojna: Launched by Prime Minister on August 28, 2014 to provide 'universal access to
banking facilities'. It will cover 7.5 crore households by January 26, 2015. Coverage of all households with at least one
basic banking account. Under the scheme, account holders will be provided zero-balance bank account with RuPay debit
card, In addition to inbuilt accidental Insurance cover of Rs 1 lakh. Additional Rs.30,000 life assurance cover for those
opening bank accounts before Jan 26, 2015. Holders can avail overdraft of Rs 5,000 from the bank subject to satisfactory
operations of the account for at least six months.
181.Regulatory framework for SCs/RCs(August 05 & 07, 2014): 1. Investment of SCs / RCs in Security Receipts fSRsV At
present, SCs/RCs have to mandatorily invest and hold minimum 5% of the SRs issued by them against the assets acquired
on an ongoing basis. Henceforth, SCs/RCs shall, by transferring funds, invest a minimum of 15% of the SRs of each class
issued by them under each scheme on an ongoing basts till the redemption of all the SRs issued under such scheme.
182.Reportlng of Defaulters (Jun 27, 2014): Presently, banks/FIs submit the following data to RBI: (i) Defaulting borrowers
(non-suit filed accounts) of Rs. 1 crore and above on a half-yearly basis, and(ii) Wilful Defaulters (non-suit filed accounts)
of Rs. 25 lakhs and above on a quarterly basis. Further, banks submit to Credit Information Companies(CICs)the following
information: (i) Quarterly list of suit filed accounts of Rs.l crore and above, classified as doubtful or loss, and (ii) List of suit
filed accounts of wilful defaulters of Rs.25 lakhs and above, as at end-March, June, September and December, every year.
Now, RBI has decided that even in respect of non suit filed accounts, banks/FIs should furnish the data in respect of wilful
defaulters(non-suit filed accounts) of Rs. 25 lakhs and above for the quarter ending December 31, 2014 and the data on
defaulters(non-suit filed accounts) of Rs. 1 crore and above for the half year ending December 31, 2014 to CICs and not to
RBI. Thereafter, banks/FIs may continue to furnish data in respect of defaulters/wilful defaulters to CICs on a monthly or a
more frequent basis. This would enable such information to be available to the banks/FIs on a near real time basis.
183.Unlque Customer Identification Code (UCIC) for banks' customers (June 26, 2014): RBI had advised banks to
initiate steps for allotting UCIC to all their customers while entering into any new relationships for individual customers to
begin with, and to existing individual customers by end-May 2013. The period for completion of allotment of UCIC was later
on extended upto March 31, 2014. Since some banks are yet to complete the allotment of UCIC, RBI has decided to extend
the time for completing the process of allotting UCIC to existing customers up to December 31, 2014.
184.Use of Business Correspondents(June 24, 2014): i) Eligible individuals/entities: As per extant instructions. Non-banking
Finance Companies (NBFCs) are not allowed to be appointed as Business Correspondents (BCs) by banks. RBI has now
decided that banks will be permitted to engage non-deposit taking NBFCs (NBFCs-ND) as BCs, subject to the following
conditions: a) It should be ensured that there is no comingling of bank funds and those of the NBFC-ND appointed as BC.
b) There should be a specific contractual arrangemeni between the bank and the NBFC-ND to ensure that all possible
conflicts of interest are adequately taken care of. c) Banks should ensure that the NBFC-ND does not adopt any .estrictive
practice such as offering savings or remittance functions only to its own customers and forced bundling of services offered
by the NBFC-ND and the bank does not take place. RBI has now decided to remove the stipulation regarding distance
criteria.
185.KYC - One Documentary Proof of Address (June 9, 2014): Customers may submit only one documentary proof of
address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the
address mentioned as per 'proof of address' undergoes a change, fresh proof of address may be submitted to the branch
within a period of six months. In the event of change in this address due to relocation or any other reason, customers may
intimate the new address for correspondence to the bank within two weeks of such a change.

31
A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block EG •I, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,Oil 25274157,09350476949)

186.Basel III Framework on Liquidity Standards(June 9, 2014): The Basel Committee on Banking Supervision (BCBS) has
published 'Basel III: The Liquidity Coverage Ratio and iiquidity risk monitoring tools' in January 2013. Further, the liquidity
Coverage Ratio Disclosure Standards' have been published by the BCBS in January 2014. Accordingly, RBI has issued the
final guidelines on the Liquidity Coverage Ratio, Liquidity Risk Monitoring Tools and Liquidity Coverage Ratio Disclosure
Standards. The LCR will be introduced in a phased manner starting with a minimum requirement of 60% from January 1,
2015 and reaching minimum 100% on January 1, 2019.
187.Reporting to Central Repository of Information on Large Credits (CRILC)(May 22, 2014): RBI has set up the
CRILC to collect, store and disseminate data on all borrowers' credit exposures including Special Mention Accounts(SMA 0,
1 & 2) having aggregate fund-based and non-fund based exposure of Rs.SO million and above.
188.Report of the Committee to Review Governance of Boards of Banks in India: RBI had constituted an Expert
Committee to Review Governance of Boards of Banks in India (Chairman: Dr. P.J.Nayak).
189.CCTV Coverage of all cash handling operations in Currency Chests(May 23, 2014): Coverage of CCTVs surveillance
should also cover all cash operations in the vaults / strong rooms and other cash handling areas to identify any mischief /
irregularity. Further, Potdar from the Chest Remitting bank should accompany soiled note remittance. The work of packing
of soiled note remittance by a currency chest should not be undertaken outside the strong room/vault.
190.Bank Branches / ATMs to be made accessible to persons with disabilities(May 21, 2014): Banks should make all
new ATMs installed from July 1, 2014 as talking ATMs with Braille keypads. In addition to the above, magnifying glasses
should also be provided in all bank branches for the use of persons with low vision, wherever they require for carrying out
banking transactions with ease.
191.Levy of penal charges on non-maintenance of minimum balances in inoperative Accounts(May 6, 2014): Banks
are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account.
192.Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans (May 7, 2014); RBI had advised
banks in June 2012 not to charge Foreclosure charges/ Pre-payment penalty on Home Loans at floating rates. Now, RBI
has advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term
loans sanctioned to individual borrowers.
193.0pening of Bank Accounts in the Names of Minors(May 6, 2014): RBI has advised banks as under: A savings /fixed /
recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian.
Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so
desire. On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is
operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor
should be obtained and kept on record for all operational purposes. Banks are free to offer additional banking facilities like
internet banking, ATM/ debit card, cheque book facility etc., subject to the safeguards that minor accounts are not allowed
to be overdrawn and that these always remain in credit.
194.RBI has decided that the Capital Conservation Buffer (CCB) would t)e implemented from in phases and would be fully
implemented as on : March 31, 2016; March 31, 2019.
195.From 31.3.2014, banks are required to maintain minimum Common Equity Tier I capital at of Risk weighted assets and
minimum Tier I capital should be: 5®/o; S.S'VoDividend/Coupon Discretion on Capital Instruments:
196.TTte dividend on common shares and perpetual non-cumulative preference shares (PNCPS) will be paid out of: current
year's profit only.
197.kBI has prepared the Depositor Education and Awareness Fund Scheme, 2014 under which Act?: Section 26A of
Banking Regulation Act, 1949.
198.Max claim under Credit Guarantee Scheme for MSE restricted to: Rs 100 lac
199.AS per KYC, record of documents taken at the time cf opening the account to be maintained for: 5 years from date of
closure of account.
200.As per KYC, record of transactions reported to FIU to be maintained for: 5 years from date of transaction.
201.Purchase/Sale of Non-Performing Financial Assets to Other Banks: Banks will be permitted to sell their NPAs to
other banks/FIs/NBFCs (excluding SCs/RCs) without any initial holding period. However, the non-performing financial asset
should be held by the purchasing bank in its books at least for a period of 12 months before it is sold to other
banks/financial institutions/NBFCs (excluding SCs/RCs).
202.Launch of new RTGS System (October 11, 2013): The new RTGS system operationalized on October 19, 2013 and the
"RTGS System Regulations 2013" would come into effect from this date. The new RTGS System will conform to ISO 20022
messaging standard. ISO 20022 messaging standard should be adopted by participants for seamless processing of RTGS
messages without conversion from/to "R" series formats by: June 30, 2014.
203.CROSS BORDER WIRE TRANSFER REPORT: Banks should maintain the record of all cross border wire transfers of
more than Rs. 5 lakh or its equivalent in foreign currency, where either the origin or destination of the fund is in India. The
information of all such transactions may be furnished to Director, FIU-IND by 15th of the succeeding month.
204.Recognising E-Aadhaar as an 'Officially Valid Document under PML Rules: Banks may accept e-Aadhaar
downloaded from UIDAI website as an officially valid document subject to the following: a) If the prospective customer
knows only his/her Aadhaar number, the bank may print the prospective customer's e-Aadhaar letter in the bank directly
from the UIDAI portal; or adopt e-KYC procedure; b) If the prospective customer carries a copy of the e-Aadhaar
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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block B6- I, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949, Oil 25274157,09350476949)

downloaded elsewhere, the bank may print the prospective customer's e-Aadhaar letter In the bank directly from the UIDAI
portal; or adopt e-KYC procedure; or confirm identity and address of the resident through simple authentication ser^^lce of
UIDAI.
205.Periodicity of payment of interest on SB: quarterly
206.KYC data to be updated - High Risk - once in 2 years; Medium risk - once in 8 years; Low risk - once in 10 years.
207.Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits (January 31, 2014): With
effect from March 1, 2014, the Interest rate offered by banks on NRE deposits cannot be higher than those offered by them
on comparable domestic rupee deposits.
208.1nterest Rates on FCNR (B) Deposits (January 31, 2014): The interest rate celling on FCNR (B) deposits with effect
from March 1, 2014 will be as under:(a) 1 year to less than 3 years: LIBOR/Swap plus 200 basis points; (b) 3 - 5 years:
UBOR/Swap plus 300 basis points
209.ColIection of Account Payee Cheques (January 22, 2014): RBI has again advised banks that they are prohibited from
crediting 'account payee" cheques to the account of any person other than the payee named therein and banks should
strictly collect 'account payee' cheques only for their payee constituents, Banks may, however, consider collecting account
payee cheques drawn for an amount not exceeding Rs.50,000/- to the account of their customers who are co-operative
credit societies. If the payees of such cheques are the constituents of such co-operative credit societies.
210.Lending against Gold Jewellery (Januaiy 20, 2014): RBI has prescribed a Loan to Value (LTV) Ratio of not exceeding
75 per cent for banks' lending against Gold jewellery (including bullet repayment loans against pledge of gold jewellery).
Gold jewellery accepted as security/collateral will have to be valued at the average of the closing price of 22 carat gold for
the preceding 30 days as quoted by the India Bullion and Jewellers Association Ltd.
211.Distribution of Banknotes & Coins - Review of Incentives & Penalties (January 13, 2014): RBI, has extended the
scheme of Incentives for reimbursement of Installation of Note Sorting Machines(NSMs)to RRBs & UCBs up to 50% of cost
of installation in urban / metropolitan areas and 75% in semi-urban and rural areas.
212.Revised General Credit Card (GCC) Scheme (December 2, 2013): 1. Objectives: The objective is to increase flow of
credit to individuals for entrepreneurial activity in the non-farm sector provided through the General Credit Card; 2.
EHgMy: All non-farm entrepreneurial credit extended to individuals, which is eligible for classification under the priority
sector guidelines; 3. Coverage: The scheme shall cover the entire country; 4. Nature of financial accommodatinn: Any
credit facility extended under the Scheme would include both working capital and term loan requirements of entrepreneurs.
5- Quantum of credit limit: There will be no ceiling on the loan amount as long as the loan is for the purpose of non-farm
entrepreneurial activity and is otherwise eligible for classification as priority sector.
213.Maxlmum claim under Credit Guarantee Scheme for MSE - For RRB Rs 40 lac in North East & Women and Rs 37.5
lakh in other places. Max claim for commercial banks - Rs 100 lakh at all places
214.Periodicity of Payment of Interest on Rupee Savings/Term Deposits (November 29, 2013): RBI has now allowed
banks the option to pay interest on Rupee savings and term deposits at intervals shorter than quarterly intervals. These
instructions are applicable to domestic Rupee deposits including Ordinary Non-Resident(NRG) and Non-Resident (External)
(NRE)savings and term deposits. However, in case of FCNR(B) deposits, interest can be paid at the interval of 180 days.
215.Capital Adequacy Norms for RRBs (November 26, 2013): Consequent to the consolidation of RRBs by amalgamation
and recapitalization of weak RRBs, RBI has advised all RRBs to achieve and maintain a minimum CRAR of 9% on an
ongoing basis with effect from March 31, 2014.
216.Charges Levied by Banks for Sending SMS Alerts (November 26, 2013): Banks are required to put in place a system
of online alerts for all types of transactions irrespective of the amounts involving usage of cards at various channels. With a
view to ensuring reasonableness and equity in the charges levied by banks for sending SMS alerts to customers, RBI has
advised banks to leverage the technology available with them and the telecom service providers to ensure that such
charges are levied on all customers on actual usage basis.
217.Change of Name of SME Rating Agency of India Limited to 5MERA Ratings Limited (SMERA)(October 17,
2013): SME Rating Agency of India Limited has been accredited for the purpose of risk weighting the banks' claims for
capital adequacy purposes. The agency has now changed its name to SMERA Ratings Limited.
218.Distribution of Banknotes and Coins - Alternative Avenues(September 2 and 10, 2013, October 10, 2013): RBI has
allowed banks to include distribution of banknotes and coins also in the scope of activities which may be undertaken by
BCs. Banks should explore the possibility of enlisting the ser/ices of BCs and Cash in Transit (GIT) entities for carrying out
the various currency management functions like distribution of banknotes and coins.
219.Undaimed Deposits/Inoperative Accounts in banks (September 17, 2013): A savings or current account should be
treated as inoperative/dormant if there are no transactions in the account for over a period of two years and precautions
should be taken while allowing operations in such accounts. State and Central Governments have expressed difficulties in
crediting cheques/Direct Benefit Transfer/Electronic Benefit Transfer/Scholarships for students. Zero Balance Accounts, etc.
into accounts opened for the beneficiaries under various Central/State Government schemes but had been classified as
dormant/inoperative due to non-operation of the account for over two years. RBI has advised that banks may allot a
different "product code" in their CBS to all such accounts opened by banks so that the stipulation of inoperative/dormant
account due to non-operation does not apply while crediting proceeds as mentioned above.

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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG - I, Paschim Vihar, New Delhi- 110063; Ph Oil 65476949,Oil 25274157,09350476949)

220.Revision of Declaration Form for Exports of Goods/Softwares (September 13, 2013): A common form called
"Export Declaration Form" (EOF) has been devised to declare all types of export of goods from Non-EDI ports and a
common "SOFTEX Form" to declare single as well as bulk software exports. TTie EOF will replace the existing GR/PP form
used for declaration of export of Goods. For exports of goods through EDI ports, the declaration will be made on SDF form.
Now, the exporters will have to declare all the export transactions, including those less than US$25000.
221.Settlement of Claims of Deceased Depositor (September 03, 2013): Banks should provide claim forms for settlement
of claims of the deceased accounts, to any person/s who is/are approaching the bank / branches for forms. Claim forms
may also be put on the bank's website prominently so that claimants of the deceased depositor can access and download
the forms without having to visit the concerned bank/branch for obtaining such forms for filing claim with the bank.
222.In respect of advance against FD also, the provision should be made as per status of the account.
223.Housing Sector: Provisioning, risk-weight and L7V ratios (June 21, 2013): RBI has decided to carve out a separate
sub-sector called Commercial Real Estate - Residential Housing (CRE-RH) from the CRE Sector. CRE-RH would consist of
loans to builders/developers for residential housing projects (except for captive consumption) under CRE segment. The
above-mentioned CRE-RH segment will attract a lower risk weight of 75% (as against 100% for CRE) and lower standard
asset provisioning of 0.75% as against 1.00%, for the CRE segment.
224.NBFCS not to be Partners in Partnership Firms(June 11, 2013); As per extant guidelines, NBFCs are prohibited from
contributing capital to any partnership firm or to be partners In partnership firms. Partnership firms mentioned above will
also Include Limited Liability Partnerships (LLPs). Further, the aforesaid prohibition will also be applicable with respect to
Association of persons.
225.Legal Audit of title document in respect of large value loan accounts (June 07, 2013): Banks should subject the
title deeds and other documents in respect of all credit exposures of Rs 5 crore and above to periodic legal audit and re-
verification of title aeeds with relevant authorities as part of regular audit exercise till the loan stands fully repaid.
226.Acknowledgement by banks at the time of submission of Form 15-6 / 15-H (May 31, 2013): Banks are not
required to deduct IDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962. With a
view to protect interest of the depositors and for rendering better customer service, RBI has advised banks to give an
acknowledgment at the time of receipt of Form 15-G/15-H.
227.Lending against Gold (May 27, 2013): Banks are permitted to grant advances against gold ornaments and jewellery but
not against gold bullion. However, banks can grant loans against specially minted gold coins sold by them but banks should
ensure that the weight of the coin(s) does not exceed 50 grams per customer.
228.Delay in re-presentation of technical return cheques and levy of charges for such returns (May 7, 2013): (a)
Cheque return charges shall be levied only in cases where the customer is at fauit and is responsible for such returns, (b)
Cheques that need to be re-presented without any recourse to the payee, shall be made in the immediate next
presentation clearing not later than 24 hours (excluding holidays) with due notification to the customers of such re
presentation through SMS alert, email etc.
229.KYC norms - Simplifying norms for Self Help Groups: KYC verification of all the members of SHG need not be done
while opening the savings bank account of the SHG and KYC verification of all the office bearers would suffice. At the time
of credit linking of SHGs, no separate KYC verification of the members or office bearers is necessary since KYC would have
already been verified while opening the savings bank account.
230.Guidelines on Implementation of Basel III Capital Regulations in India:(a) RBI has already rescheduled the start
date of implementation of Basel III capital regulations to April 1, 2013 from January 1, 2013. The other transitional
arrangements would remain unchanged and Basel III will be fully implemented as on March 31, 2019.
231.Facility for Exchange of Notes and Coins: The facility of exchange of cut/mutilated banknotes, in addition to soiled
notes and issue of good quality clean banknotes/coins, should be made available at all bank branches (including those of
co-operative banks and RRBs), In case a branch, for any reason, is not able to immediately adjudicate the cut/mutilated
notes across the counter, it may accept and send such notes to the currency chest to which it is linked, for adjudication and
in any case ensure that the tenderer receives the exchange value as per the RBI Note (Refund) Rules, 2009, within a
reasonable time, say a fortnight. This above facility should be provided to all members of public on all working days.
232.Security and Risk Mitigation Measures for Electronic Payment Transactions: All new debit and credit cards to be
issued only for domestic usage unless international use is specifically sought by the customer. Such cards enabling
international usage will have to be essentially EMV Chip and Pin enabled.
233.Securing Electronic Payment Transactions: (1) Customer induced options may be provided for fixing a cap on the
value / mode of transactions/beneficiaries. In the event of customer wanting to exceed the cap, an additional authorization
may be insisted upon;
234.Know Your Customer(KYC) Norms (January 29, 2013): 1. Shifting of bank accounts to another centre - Proof
of address: KYC once done by one branch of the bank should be valid for transfer of the account within the bank. Banks
may transfer existing accounts at the transferor branch to the transferee branch without insisting on fresh proof of address
and on the basis of a self-declaration from the account holder about his/her current address.
235.Wholesale and bulk deposits: RBI has decided that henceforth only the expression "bulk deposit" would be used for
single Rupee term deposits of Rs 1 crore and above.

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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, Block BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 25274157, 09350476949)

236.Minimum amount of FD for differential interest rates: Banks are allowed to offer, at their discretion, differential
rates of interest on single term deposits of same maturity of Rs 1 crore and above. For deposits below Rs 1 crore, the same
rate will apply for deposits of the same maturity. Interest paid by banks should be as per the schedule and not be subject
to negotiation between the depositor and the bank. The revised guidelines will be applicable with effect from April 1, 2013.
237.Premature payment: Currently, a bank, on request from the depositor, shall allow premature withdrawal of a term
deposit. However, the bank, at its discretion, may disallow premature withdrawal of large deposits held by entities other
than individuals and Hindu Undivided Families (HUFs). Now RBI has decided that banks will have the discretion to disallow
premature withdrawal of a term deposit in respect of bulk deposits of Rs 1 crore and above of all depositors, including
deposits of individuals and HUFs. Bank will have the freedom to determine its own penal interest rates for premature
withdrawal of term deposits..
238.Debit cards should be issued to customers having Saving Bank/Current Accounts but not to cash credit/ loan account
holders; The cardholder shall bear the loss sustained up to the time of notification to the bank of any loss, theft or copying
of the card but only up to a certain limit.
239.KYC: If the address on the document submitted for identity proof by the prospective customer Is same as that declared by
him/her in the account opening form, the document may be accepted as a valid proof of both identity and address.
240.Introduction for opening accounts: Banks should not insist on introduction for opening bank accounts of customers.
241.Bank finance for purchase of gold: No advances should be granted by banks for purchase of gold in any form.
242.Service Area Approach - Educational Loan Scheme: Service area norms are to be followed only in the case of
Government sponsored schemes and are not applicable to sanction of educational loans.
243.Loans against NRE accounts and FCNR(B) Accounts: Banks can grant Rupee loans or Foreign Currency Loans against
NR(E)RA and FCNR(B) deposits either to the depositors or the third parties without any ceiling subject to usual margin
requirements.
244.1nterest Rate on DepositsrThe Board/ALCO should ensure that the variation in interest rates on single term deposits of
Rs 1 crore and above and other term deposits is minimal for corresponding maturities.
245.1nterest Rates on Deposits In FCNR (B) Accounts: Banks should not allow the benefit of additional interest rate on
any type of deposits of non-residents.
246.NEFT Charges: RBI has revised the maximum customer charges levied by the banks for NEFT transactions as under from
1®' August 2012. Service tax will be extra. Amount up to Rs 10,000: Rs 2.50; Amounts from Rs 10,001/- to Rs 1 lakh: Rs
5.00; Amounts above Rs 1 lakh up to Rs 2 lakh: Rs 15.00; Amounts above Rs 2 lakh; Rs 25.00
247.Home Loans-Levy of fore-closure charges/pre-payment penalty: Banks will not be permitted to charge foreclosure
charges/pre-payment penalties on home loans on floating interest rate basis, with effect from June 5, 2012.
248.Commission on Government Transactions: The commission on Govt business from 1.7.2012 will be as under: Receipts
- Physical mode Rs 50 per transaction; Receipts - e-mode: Rs 12 per transaction; Pension Payments Per'transaction: Rs
65; Payments other than Pension - Per Rs 100 turnover: 5.5 paise
249.Detection and Reporting Mechanism of Counterfeit Notes: Banks should ensure that cash receipts in the
denominations of Rs 100 and above should not be put into re-circulation without the notes being machine processed for
authenticity. The above instructions are applicable to all bank branches, irrespective of the volume of daily cash receipt.
250.Transfer of Funds from NRO account to NRE Account: NRI shall be eligible to transfer funds from NRO account to
NRE account within the overall ceiling of USD one million per financial year subject to payment of tax, as applicable (i.e. as
applicable if funds were remitted abroad). Such credit of funds to NRE account shall be treated as eligible credit.
251.Central Registry(CER5AI) under SARFAESI ACT: Central Registry of Securitisation Asset Reconstruction and Security
Interest of India (CERSAI). Transactions relating to securitization and reconstruction of financial assets and those relating
to mortgage by deposit of title deeds to secure any loan or advances granted by banks, are to be registered in the Central
Registry within 30 days from the date of creation.
252.MICR code and IFSC code should be available on the cheque leaf as well as on the passbook / statement of account of the
account holders.
253.Acceptance of NEFT inw/ard for credit to Loan Accounts: All banks should allow the customers to choose NEFT also
as one of the electronic modes of making payment towards loan EMIs / repayments.
254.Nomlnatlon Rules: only Thumb-impressions(s) shall be attested by two witnesses. Signatures of the account holders
need not be attested by witnesses. Further, nomination facility is available for joint deposit accounts also.

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A K GUPTA'S BANKERS TRAINING INSTITUTE(75, B»ock BG -1, Paschim Vihar, New Delhi - 110063; Ph Oil 65476949, Oil 2S274157,09350476949)

INFLATION & RELATED TERMS


1. Inflation: A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in
which the value of money is falling i.e. prices are rising.
2. Cost-push Inflation: It arises due to an increase in production cost. Such type of inflation is caused by three factors: (i)
an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.
3. Demand- push Inflation: It arises as a result of strong consumer demand. When many individuals are trying to purchase
the same good, the price will inevitably increase. When this happens across the entire economy for all goods, it is known
as demand-pull inflation
4. Deflation: Deflation is the reverse case of inflation. Deflation is that state of falling prices which occurs at that time when
the output of goods and services increases more rapidly than the volume of money in the economy. In the deflation the
general price level falls and the value of money rises.
5. Disinflation: A fall in the rate of inflation. This means a slower increase in prices but not a fall in prices
GROWTH
6. National Income ; It refers to the money value of all goods and services produced within the domestic territory of a
country plus net factor Income from abroad in a year.
7. Per capita income : It refers to the average income of a resident of a country and is calculated by dividing the national
income by the population of the country.
8. Gross Domestic Product(GDP): It is the money value of all final goods and services produced in the domestic territory
of country in a year.
9. Net Domestic Product: obtained by reducing consumption of fixed capital (depreciation) from the GDP.
10. Gross National Product(GNP): It is calculated by adding net factor income from abroad (NFIA) to GDP.
11. Recession: A period of slow or negative economic growth, usually accompanied by rising unemployment.
12. Stagnation: A prolonged recession, but not as severe as a depression.
13. Depression: A prolonged recession in economic activity. The textbook definition of a recession is two consecutive quarters
of (jeclining outpur. A depression is an even deeper and more prolonged slump.
Terms used in Budget
14. Ad- Valorem Duties: duties that are established as a certain percentage of the price of the product.
15. Custom Duties: levies that are incurred from the goods exported from or imported to the countr,'.
16. Excise Duties: Duty levied on goods manufactured within the country.
17. Direct Taxes: taxes that are implied directly on the individuals. Corporate tax and Income tax are direct taxes.
18. Indirect Taxes: Tax levied on manufacture, consumption, etc which are collected by the provider of service or
manufacturer of gocxJs. Examples are Excise Duty, Custom Duty, VAT, Service Tax.
19. Progressive Tax: a tax where the wealthy have to give more income tax as compared to the poor.
20. Fiscal Measures: Measures to correct excess /deficient demand through budget proposals of government are called fiscal
measures. These include tax changes, increase /reduction in government expenditure etc.
21. Real exchange rate: An exchange rate that has been adjusted to take account of any difference in the rate of inflation in
the two countries whose currency is being exchanged.
22. Fiscal deficit: is the gap between the government's total spending and the sum of its revenue receipts and non-debt
capital receipts. It represents the total amount of borrowed funds required by the government to meet its expenditure.
23. Primary Deficit: Fiscal Deficit minus Interest on Borrowings;
24. Budget Deficit: difference between the estimated public expenditure and public revenue. The government meets this
deficit by way of printing net currency or by borrowing.
25. Revenue Deficit: difference between Revenue Expenditure and Revenue Receipts.
26. Current Account Deficit: when a country's total imports of goods, services and transfers is greater than the country's
total export of goods, services and transfers.
27. Consumer surplus: The difference between what a consumer would be witling to pay for a good or service and what that
consumer actually has to pay.
28. HDI: HDI(Human Development Index) is a composite index measuring average achievement in three basic dimensions of
human life-a long and healthy life, knowledge and a decent standard of living.
29. Real interest rate: The interest rate less the rate of inflation.
30. PPP: Purchase Power Parity is the exchange rate that equates the price of a basket of identical traded goods and services
in two countries.
MONETARY & LIQUIDITY AGGREGATES
1. M 0: Currency in circulation; bankers' deposits with RBI; other deposits with RBI (including primary dealers' balance)
2. M 1: (called Narrow money): currency with public; current deposits with banking system; 15% of demand liabilities
portion of saving deposits with banking system; other deposits with RBI.
3. M 2: Ml 4- time liabilities portion (i.e. remaining 85%) of saving deposits with banking system-i- CDs issued by banks +
term deposits (excluding FCNR-B) with a contractual maturity up to and Including 1 yr with banking system
4. M 3:(Called Broad money): M 2 h- term deposits (excluding FCNR-B) with a contractual maturity of over one year
with the banking system + call borrowings from non-depository financial corporations by the banking system.

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