RBI/2013-14/634DBOD.AML.BC. No. 119/14.01.001/2013-14 June 9, 2014 The Chairperson/CEOs of all Scheduled Commercial Banks (Excluding RRBs)/Local Area Banks / All India Financial Institutions Dear Sir/ Madam, Know Your Customer (KYC) Norms/Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT) /Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 – Clarification on Proof of Address Please refer toparagraph 2.4(h), (i), (j) (l), (m) andAnne...

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RBI/2013-14/630IDMD.PDRD.No. 3404/03.64.000/2013-14 June 5, 2014 All Market participants Dear Sir/Madam, Annual Turnover Target on behalf of Mid-segment and Retail investors for Primary Dealers (PDs) Attention of PDs is invited to ourcircular IDMD.PCD.9/14.03.05/2011-12 dated August 30, 2011andpara 1.3.7of Master Circular on Operational Guidelines to PDs dated July 01, 2013 on the captioned subject. 2. It has been decided to enhance the minimum annual target for mid-segment and retail inve...

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RBI/2013-14/627FMD.MOAG. No. 103/01.01.009/2013-14 June 4, 2014 All Scheduled Commercial Banks (excluding RRBs) Madam / Sir, Special Term Repo Auction As announced yesterday in theSecond Bi-Monthly Monetary Policy Statement for 2014-15, it has been decided to introduce special term repo auctions of 28-day tenor for a notified amount up to 0.25 per cent of net demand and time liabilities (NDTL) of the banking system. The 28-day special term repo auction will usually be conducted on non-repor...

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RBI/2013-14/622DBOD.Ret.BC.117/12.02.001/2013-14 June 03, 2014 All Scheduled Commercial Banksand Local Area Banks(Excluding Regional Rural Banks) Dear Sir, Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR) Please refer to ourcirculars DBOD.Ret.BC.33/12.02.001/2012-13 dated July 31, 2012andDBOD.Ret.BC.48/12.02.001/2012-13 dated September 28, 2012on the captioned subject. 2. As announced in theSecond Bi-Monthly Monetary Policy Statement 2014-15by...

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RBI/2013-14/620DBOD.No.BP.BC.116/21.06.200/2013-14 June 3, 2014 The Chairman and Managing Director/Chief Executive OfficerAll Scheduled Commercial Banks(Excluding RRBs and LABs) Dear Sir, Capital and Provisioning Requirements for Exposures to entities with Unhedged Foreign Currency Exposure-Clarifications Please refer to ourcircular DBOD.No. BP.BC. 85/21.06.200/2013-14 dated January 15, 2014detailing guidelines on capital and provisioning requirements for exposures to entities with Unhedged...

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RBI/2013-14/619UBD. CO. BPD. PCB. Cir. No. 67/09.50.001/2013-14 May 30, 2014 The Chief Executive Officers ofAll Primary (Urban) Co-operative Banks Madam/ Dear Sir, Deferred Tax Liability on Special Reserve created underSection 36(1) (viii) of the Income Tax Act, 1961-UCBs It has been observed that some banks are not creating deferred tax liability (DTL) on Special Reserve as per Accounting Standard 22:'Accounting for taxes on Income' (AS 22) on the ground that they do not intend t...

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RBI/2013-14/617RPCD.CO.LBS.No.13027/02.01.001/2013-14 May 28, 2014 The Chairman & Managing DirectorAll SLBC Convenor banks Dear Sir/Madam, Formation of new State of Telangana – Assignment of SLBC Convenorship As per The Gazette of India Notification No. 6 of 2014 dated March 1, 2014, the 29thState of the country viz. Telangana has been formed and the appointed day has been fixed as June 2, 2014. 2. It has been decided to assign the SLBC convenorship of Telangana State to State Ba...

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RBI/2013-14/615UBD.CO.BPD.(PCB) Cir No. 66/13.05.000/2013-14 May 28, 2014 The Chief Executive OfficersAll Primary (Urban) Co-operative Banks Madam / Dear Sir, Lending to Public Sector Undertakings It has been observed that a few Urban Cooperative Banks (UCBs) have been sanctioning high value loans to Public Sector Undertakings (PSUs) by admitting them as nominal members or otherwise. 2. As you are aware, UCBs are meant primarily to meet the credit needs of the society by providing loans an...

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RBI/2013-14/609DNBS.CC.PD.No.377/03.10.01/2013-14 May 27, 2014 To All Non-Banking Financial Companies Dear Sir, Rounding off transactions to the Nearest Rupee by NBFCs It has come to the notice of the Reserve Bank that some non-banking financial companies (NBFCs) are carrying out transactions, including payment of interest on deposits/ charging interest of advances etc., without rounding off to the nearest rupee. In order to obviate unnecessary discomfort to the public and also to align wi...

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RBI/2013-14/606DNBS (PD) CC.No.376/03.10.001/2013-14 May 26, 2014 All NBFCs (excluding Primary Dealers) Dear Sirs, Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of NBFCs Under Section 45 IA (4)(c) of the RBI Act, 1934, a certificate of Registration can only be given to a company if the Bank is satisfied, inter alia, that the general character of the management or the proposed management of the non-banking financial company shall not be prejudic...

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RBI/2013-14/598DBOD.No.Leg.BC.113/09.07.005/2013-14 May 21, 2014 All Scheduled Commercial Banks(excluding RRBs) Dear Sir/Madam, Need for Bank Branches / ATMs to be madeaccessible to persons with disabilities Please refer to ourcircular DBOD.No.Leg.BC.123 /09.07.005/2008-09 dated April 13, 2009on the captioned subject, wherein banks were advised to provide, inter alia, ramps in all existing and future ATMs, and make at least one third of new ATMs installed as talking ATMs with Braille keypad...

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RBI/2013-14/593UBD.CO.BPD.(PCB) Cir No. 63/13.05.000/2013-14 May 16, 2014 The Chief Executive OfficersAll Primary (Urban) Co-operative Banks Madam / Dear Sir, Undertaking of activity by the Urban Cooperative Banks (UCBs) as PAN Service Agent (PSA) for providing PAN issuance services to its customers by entering into tie-up with authorized Agencies Please refer tocircular UBD.CO.BPD.(PCB).Cir.No.38/13.05.000/2013-14 dated November 14, 2013wherein Financially Sound and Well Managed UCBs as de...

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RBI/2013-14/592UBD.BPD.Cir.No.62/13.03.000/2013-14 May 15, 2014 The Chief Executive OfficerAll Primary (Urban) Co-operative Banks Dear Sir / Madam Levy of Penal Charges on Non-Maintenance ofMinimum Balances in Inoperative Accounts Please refer toPart B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014, proposing certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in the inoperative accounts....

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RBI/2013-14/591RPCD.CO.Plan. BC 101/04.09.01/ 2013-14 May 15, 2014 The Chairman/ Managing Director/Chief Executive Officer[All scheduled commercial banks(excluding Regional Rural Banks)] Madam/Dear Sir, Treatment of RIDF and certain other funds under priority sector It has been decided to include the outstanding deposits placed by scheduled commercial banks under Rural Infrastructure Development Fund (RIDF) and certain other funds established with NABARD, on account of their shortfall in le...

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RBI/2013-14/590DPSS.CO.PD.No. 2366/02.14.006/2013-14 May 13, 2014 All Prepaid Payment Instrument Issuers, System Providers, System Participantsand all other Prospective Prepaid Payment Instrument Issuers Madam / Dear Sir Issuance and Operation of Pre-paid Payment Instruments in India – ConsolidatedRevised Policy Guidelines A reference is invited to our guidelinesDPSS.CO.PD.No. 2074/02.14.006/2013-14 dated March 28, 2014on the captioned subject. 2. On a review, it has been decided tha...

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RBI/2013-14/589RPCD.CO.RRB.BC.No. 100/03.05.33/2013-14 May 12, 2014 The ChairmenAll Regional Rural Banks Dear Sir, Customer Service in Regional Rural Banks Customer service has great significance in the banking industry. The banking system in India today has perhaps the largest outreach for delivery of financial services and is also serving as an important conduit for delivery of financial services. While the coverage has been expanding day by day, the quality and content of dispensation of...

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RBI/2013-14/588DBOD.No.BP.BC.111/21.04.157/2013-14 May 12, 2014 All Scheduled Commercial Banks(Excluding RRBs and LABs) &All India Term-Lending & Refinancing Institutions Madam / Sir, Operations of foreign branches and subsidiaries of the Indian banks –Compliance with statutory/regulatory/administrative prohibitions/restrictions Please refer to theCircular DBOD.No.BP.BC.89 /21.04.141/2008-09 dated December 1, 2008on the captioned subject. In terms of paragraph 5 of the circula...

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RBI/2013-14/587UBD.CO.BPD.PCB.Cir.No.60/13.05.001/2013-14 May 9, 2014 The Chief Executive Officers ofAll Primary (Urban) Co-operative Banks Dear Sir / Madam, Advance against Pledge of Gold/ Silver Ornaments Please refer tocircular UBD.PCB.Cir.No.24/13.05.001/ 08-09 dated November 10, 2008, wherein Urban Cooperative Banks (UCBs) were advised to observe safeguards in order to mitigate the inherent risks attached to sanction of loans and advances against Gold / Silver ornaments. 2. As a prude...

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RBI/2013-14/582DBOD. Dir.BC.No.110/13.03.00/2013-14 May 7, 2014 All Scheduled Commercial Banks(Excluding RRBs) Dear Sir/Madam Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans Please refer to ourcircular DBOD. No. Dir.BC.107/13.03.00/2011-12 dated June 5, 2012on ‘Home Loans- Levy of Fore-closure Charges/ Pre-payment Penalty’. 2. A reference is invited toPart B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014proposing...

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RBI/2013-14/581DBOD.No.Leg.BC.108/09.07.005/2013-14 May 6, 2014 All Scheduled Commercial Banks(excluding RRBs) Dear Sir/Madam, Opening of Bank Accounts in the Names of Minors Please refer to our circular DBOD.No.Leg.BC.158/C.90(H)-76 dated December 29, 1976 wherein banks were advised to allow minors’ accounts (fixed and savings deposit accounts) with mothers as guardians to be opened subject to safeguards in allowing operations in such accounts by ensuring that the minors’ accou...

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RBI/2013-14/580DBOD. Dir.BC.No. 109 /13.03.00/2013-14 May 6, 2014 All Scheduled Commercial Banks(Excluding RRBs) Dear Sir/Madam Levy of penal charges on non-maintenance of minimum balances in inoperative Accounts Please refer toPart B of the First Bi-monthly Monetary Policy Statement 2014-15 announced on April 1, 2014, proposing certain measures towards consumer protection such as non-levy of penal charges for non-maintenance of minimum balance in any inoperative accounts. 2. In this conne...

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RBI/2013-14/579UBD.BPD (PCB) Cir No.56/13.04.00/2013-14 May 5, 2014 The Chief Executive Officers ofAll Primary (Urban) Co-operative Banks Dear Sir, Interest Tax Act 1974 – Collection from borrowers Please refer to ourcircular UBD.BPD (PCB) Cir No.18/13.04.00/2008-09 dated September 22, 2008on the captioned subject. 2. It is observed from the Supreme Court Order dated February 21, 2014 in Writ Petition (Civil) No.301 of 2005 that credit institutions which were in existence between Oct...

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RBI / 2013 – 14/575DPSS (CO) RTGS No.2232/04.04.002/2013 - 2014 April 28, 2014 The Chairman / Managing Director / ChiefExecutive Officer of participants of RTGS Madam / Dear Sir, Usage of Transaction Type Code (TTC) in RTGS We invite a reference to the RTGS System Regulations 2013, detailing the guidelines for RTGS transactions. 2. In terms of para 6.4 of RTGS System Regulations 2013, different Transaction Type Code (TTC) Values are prescribed for different types of RTGS tran...

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RBI/2013-14/571DNBS (PD) CC. No. 38/SCRC/26.03.001/2013-14 April 23, 2014 The Chairman/Managing Director/Chief Executive OfficerAll registered Securitisation Companies/Reconstruction Companies Dear Sir, Uniform Accounting Standards at ARCs Please refer to ';The Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003'; dated April 23, 2003 (herein after called Guidelines). 2. Pursuant to the recommendations of the Key Advisory Group (KAG) constit...

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RBI/2013-14/570RPCD.FID.BC.No. 96/12.01.011/ 20013-14 April 22, 2014 The Chairman/ Managing Director/Chief Executive OfficerAll Scheduled Commercial Banks Dear Sir/Madam, Scaling up of the Business Correspondent (BC) Model –Issues in Cash Management Please refer toPara 26 (Part B)of Governor's bi-monthly policy statement dated April 1, 2014 on the above subject. 2. In this connection, we advise that, after opening of large number of banking outlets in the last three years in hitherto...

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RBI/2013-14/569DNBS(PD).CC. No.375 /03.10.42 /2013-14 April 22 , 2014 All Non Banking Financial Companies Dear Sir, Reporting of information / data relating to Cash and Suspicious Transactions to the Director, Financial Intelligence Unit-India (FIU-IND) Please refer to the circular DNBS.(PD).CC.No.339/03.10.42/2013-14 dated July 1, 2013 [para III (17)] on the above subject. 2. In terms of the extant instructions, NBFCs are required to report information / data relating to Cash and Suspicio...

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RBI/2013-14/568DBOD.No.BP.BC.107/21.04.048/2013-14 April 22, 2014 The Chairman and Managing Director/Chief Executive OfficerAll Scheduled Commercial Banks(Excluding Local Area Banks and Regional Rural Banks) Dear Sir, Fund/Non-Fund based Credit Facilities toOverseas Joint Ventures / Wholly Owned Subsidiaries /Wholly owned Step-down Subsidiaries of Indian Companies Please refer to our circularDBOD.IBD.BC.No.96/23.37.001/2006-07 dated May 10, 2007, in terms of which banks were permitted to ex...

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RBI/2013-2014/565FMD.MSRG.No.102/02.18.002/2013-14 April 16, 2014 All Scheduled Commercial Banks and Primary Dealers Dear Sir/ Madam, Financial Benchmarks- Governance Framework for Benchmark Submitters As you are aware, theCommittee on Financial Benchmarks(Chairman: Shri P. Vijaya Bhaskar, Executive Director) had submitted its Report on February 7, 2014 recommending several measures/principles to be adopted in respect of major Indian Rupee interest rate and Foreign exchange benchmar...

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RBI/2013-14/564DBOD.Dir.BC.No.106/13.03.00/2013-14 April 15, 2014 All Scheduled Commercial Banks(excluding RRBs) Dear Sir / Madam Differential Rate of Interest for Micro and Small Enterprises (MSEs) A reference is invited topart ‘B’ of the First Bi-monthly Monetary Policy Statement, 2014-15 announced on April 1, 2014wherein certain measures have been proposed to be adopted by banks in order to give a fillip to the flow of credit to micro and small enterprises (MSEs) borrow...

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RBI/2013-14/554DNBS (PD) CC.No.373/03.10.001/2013-14 April 7, 2014 All NBFCs Dear Sirs, Investment through Alternative Investment Funds – Clarification on Calculation of NOF of an NBFC In terms of section 45 IA of the RBI Act, 1934, net owned funds (NOF) of an NBFC means- (a) the aggregate of the paid-up equity capital and free reserves as disclosed in the latest balance-sheet of the company after deducting there from– (i) accumulated balance of loss;(ii) deferred revenue expe...

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