RBI/2011-12/615 IDMD.PCD.21/14.03.07/2011-12 June 21, 2012 All market participants Dear Sir/Madam Secondary market transactions in Government Securities - Short Selling This has reference to circular IDMD.PCD.14/14.03.07/2011-12 dated December 28, 2011 on the captioned subject. 2. As per extant guidelines, banks are permitted to undertake 'notional' short sale whereby they can sell a security short from HFT portfolio even if the security is held under their AFS/HTM portfolio (cir...

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RBI/2011-12/616 FMD.MSRG.No.69/02.05.002/2011-12 June 22, 2012 All Category – I Authorised Dealer Banks and Primary Dealers Madam/Sir, Reporting Platform for OTC Foreign Exchange and Interest Rate Derivatives Reserve Bank, vide it’s circular No.FMD.MSRG.No.67/02.05.002/2011-12 dated March 9, 2012, had advised that all inter-bank OTC foreign exchange derivatives transactions should be reported on a platform to be developed by the CCIL. The CCIL has since completed develop...

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RBI/2011-12/610 RPCD.CO.RRB.BC.No. 88/03.05.33/2011-12 June 19, 2012 The Chairmen All Regional Rural Banks(RRBs) Madam / Dear Sir, Financial Inclusion-Opening of Aadhaar Enabled Bank Accounts (AEBA). Please refer to our Circular RPCD.CO.BC.FID No.16/12.01.019/2011-12 dated August 12, 2011 forwarding the Operational Guidelines on implementation of Electronic Benefit transfer (EBT) and its convergence with Financial Inclusion Plan (FIP). 2. In view of the timelines attached to th...

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RBI/2011-12/611 RPCD.CO.RRB.BC.No.87/03.05.33/2011-12 June 19, 2012 The Chairmen All Regional Rural Banks (RRBs) Madam / Dear Sir, Monetary Policy Statement 2012-13 - IT and IS Governance structures Please refer to the paragraphs 121-123 of the Monetary Policy Statement 2012-13, wherein we have emphasized the importance of implementing IT and IS Governance structure in banks. It is expected that all banks adopt appropriate frameworks for both IT and IS Governance and put in place th...

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RBI-2011-12/605 DBOD. AML.No.18786/14.06.001/2011-12 June 18, 2012 The Chairmen / CEOs of all Scheduled Commercial Banks (Excluding RRBs)/ Local Area Banks / All India Financial Institutions Dear Sir, Implementation of Section 51-A of UAPA, 1967 Updates of the UNSCR 1988(2011) Sanctions List Please refer to our circular DBOD. AML. No. 17478/14.06.001/2011-12 dated May 23, 2012. We have since received from Government of India, Ministry of External Affairs, UNP Division copies of notes dat...

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RBI/2011-12/603 Ref. MPD. No. 355/07.01.279/2011-12 Jyestha 28,1934 (Saka) June 18, 2012 To All Scheduled Banks [excluding Regional Rural Banks (RRBs)] Dear Sir/Madam, Export Credit Refinance Facility (ECR): Relaxation At present, the Export Credit Refinance (ECR) limit is fixed at 15 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight. With a view to enhancing the credit flow to the export sector, it has been decid...

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Monetary and Liquidity Measures On the basis of an assessment of the current macroeconomic situation, it has been decided to: keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.75 per cent of their net demand and time liabilities; and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facilit...

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RBI/2011-12/602 RPCD CO. RCBD. BC. No. 84 /03.03.01/2011-12 June 15, 2012 The Chairmen/Chief Executives of All State and Central Co-operative Banks Dear Sir Home Loans-Levy of fore-closure charges/ pre-payment penalty Please refer to our circular RPCD.CO.RCBD.BC.No. 48 /03.03.01/2010-11 dated January 20, 2011 on housing finance. 2. In this context, attention is invited to paragraphs 81 to 83 of the Monetary Policy Statement 2012-13 announced on April 17, 2012 with regard to home...

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DPSS.CO.PD. No. 2256 /02.14.006/ 2011-12 June 14, 2012 To All System Providers, System Participants and all other prospective prepaid payment instrument issuers Dear Sir, Policy Guidelines for issuance and operation of Prepaid Payment Instruments in India- Amendments A reference is invited to our circulars RBI / 2008-09 / 458 DPSS. CO. PD. No. 1873/02.14.06/2008-09 dated April 27, 2009, RBI / 2010-11 / 261 DPSS. CO. No. 1041 / 02.14.006 / 2010-2011 dated November 04, 2010 and RBI / 2...

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RBI/2011-12/600 DIT Cir. No.2833/09.63.025/2011-12 June 13, 2012 The Chairmen/Chief Executive Officers, All Scheduled Commercial Banks (excluding RRBs) Madam / Dear Sir, Monetary Policy Statement 2012-13 - IT and IS Governance structures Please refer to the paragraphs 121-123 of the Monetary Policy Statement 2012-13, wherein we have emphasized the importance of implementing IT and IS Governance structure in banks. It is expected that all banks adopt appropriate frameworks for bot...

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RBI/2011-12/599 RPCD.No. RRB.RCB.BC. 83/03.07.033/2011-12 June 12, 2012 All State and Central Co-operative Banks / Regional Rural Banks Dear Sir Strengthening the Regulatory Framework for Unclaimed Deposits Please refer to paragraphs 102 and 103 of the Monetary Policy Statement for the year 2012-13, announced on April 17, 2012 proposing certain measures for strengthening the Regulatory Framework for Unclaimed Deposits. 2. In terms of our circulars RPCD. CO. RF. BC. No. 89/07.38.01/20...

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RBI/2011-12/593 DPSS. CO. AD. No. 2218/02.27.005/2011-12 June 7, 2012 CEOs of all the Payment System Operators Authorised under the PSS Act, 2007 Dear Sir Implementation of Section 51-A of UAPA, 1967 - Updates of the UNSCR 1267 (1999) and 1989 (2011) Committee's Al Qaida Sanctions List Please refer to our circular DPSS.CO.AD.No 2058 /02.27.005/2011-12 dated May 9, 2012. We have since received from Government of India, Ministry of External Affairs, UNP Division copies of notes dated A...

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RBI/2011-12/596 A. P. (DIR Series) Circular No. 132 June 8, 2012 To, All Authorised Persons, who are Indian Agents under Money Transfer Service Scheme. Madam/ Sir, Money Transfer Service Scheme Attention of all Authorised Persons (APs), who are Indian Agents under the Money Transfer Service Scheme (MTSS) is invited to paragraph 5 (c) of the the Notification dated June 4, 2003 on MTSS and the specific permission accorded to them under FEMA, 1999 by the Reserve Bank to undertake inw...

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RBI/2011-12/581 DNBS.PD.CC.No.276/03.02.089/2011-12 May 30, 2012 All Infrastructure Finance Companies Uniformity in Risk weight for assets covering PPP and post COD projects The Reserve Bank, vide its notification No.DNBS.233/CGM(US)-2011 dated November 21, 2011 viz; Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank) Directions, 2011 issued detailed guidelines with regard to regulation of IDF-NBFCs.In terms of the Guidelines,for the purpose of computing capital a...

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RBI/2011-12/580 RPCD.CO.RRB.RCB.AML.No.12165/07.02.12/2011-12 May 30, 2012 The Chairmen / CEOs of all Regional Rural Banks/ State and Central Co-operative Banks Dear Sir, Implementation of Section 51-A of UAPA, 1967- Updates of the UNSCR 1267 (1999)/1989 (2011) Committee's Al-Qaida Sanctions List Please refer to our circular RPCD.CO.RRB.RCB.AML.No.12008/07.02.12/ 2011-12 dated May 25, 2012 . We have since received from Government of India, Ministry of External Affairs, UNP Divisi...

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RBI/2011-12/577 RPCD.CO.RCB.BC.No. 78/07.38.01/2011-12 May 28, 2012 All State and Central Co-operative Banks Dear Sir, Conversion of Term Deposits, Daily Deposits or Recurring Deposits for Reinvestment in Term Deposits by State and Central Co-operative Banks Please refer to paragraph 104 of the Annual Policy Statement for the year 2010-11 of Reserve Bank of India (extract enclosed). 2. As per the instructions contained in paragraph 11 of circular RPCD.No.RF.DIR.BC.53/D.1-87/88 da...

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RBI/2011-12/579 DNBS(PD).CC. No 275/03.10.42/2011-12 May 29, 2012 All Non Banking Financial Companies / Residuary Non Banking Companies Dear Sir, Know Your Customer (KYC) guidelines - accounts of proprietary concerns A reference is invited to para 1 and Annex vi of theMaster Circular DNBS (PD) CC No.231/03.10.42/2011-12 dated July 1, 2011on Master Circular – 'Know Your Customer' (KYC) Guidelines – Anti Money Laundering Standards (AML) - 'Prevention of Money Launderi...

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All Scheduled Commercial Banks All State Co-operative Banks/All Scheduled Primary (Urban) Co-operative Banks /All Financial Institutions/ All Primary Dealers. Dear Sirs, Auction of Government of India Dated Securities Government of India have offered to sell (re-issue) (a) “8.24 percent Government Stock 2018 for a notified amount of Rs.4,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(5)-W&M/2012 dated May 21, 2012; (b) &...

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All Scheduled Commercial Banks(Excluding RRBs) Dear Sir/Madam, Deregulation of Savings Bank Deposit Interest Rate - Guidelines Please refer to our circular DBOD.Dir.BC. 42 /13.03.00/2011-12 dated October 25, 2011. 2. Based on the references received from banks, we clarify that the revised guidelines issued vide our circular referred to above would be applicable to domestic savings bank deposits held by residents in India. Further, the interest rates applicable on the domestic savin...

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भारतीय िरज़वर् बैंक RESERVE BANK OF INDIA___________________ www.rbi.org.in RBI/2011-12/369 UBD.BPD. (PCB). CIR.No. 2 /12.03.000/2011-12 January 25, 2012 The Chief Executive Officers of All Scheduled Primary (Urban) Co-operative Banks Dear Sir, Section 42(1) of Reserve Bank of India Act, 1934 – Maintenance of Cash Reserve Ratio (CRR) Pl...

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RBI/2011-12/349DBOD No.BC.72/29.67.001/2011-12 January 13, 2012 All Private Sector and Foreign Banks operating in India Dear Sir / Madam, Guidelines on Compensation of Whole Time Directors / Chief ExecutiveOfficers / Risk takers and Control function staff, etc. The compensation practices, especially of large financial institutions, were one of the important factors which contributed to the recent global financial crisis.Employees were too often rewarded for increasing the short-term profi...

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RBI/2011-12/353A. P. (DIR Series) Circular No.68 January 17, 2012 To All Category-I Authorised Dealer Banks Madam / Sir, Risk Management and Inter-Bank Dealings - Commodity Hedging Attention of Authorised Dealers Category – I (AD Category – I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 [Notification No. FEMA 25/RB-2000 dated May 3, 2000], as amended from time to time andA.P. (DIR Series) Circ...

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RBI/2011-12/354RPCD.CO RRB.AML.No. 7156/03.05.28(A)/2011-12 January 18, 2012 The ChairmenAll Regional Rural Banks (RRBs) Dear Sir, Implementation of Section 51-A of UAPA, 1967-Updates of the UNSCR 1988 (2011) Sanctions List Please refer to our circularRPCD.CO RRB.AML.BC.No.51/03.05.33(E)/2011-12 dated January 2, 2012. We have since received from Government of India, Ministry of External Affairs, UNP Division copies of notes forwarded by the Chairman of UN Security Council's 1988 Committe...

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RBI/2011 -12/257A. P. (DIR Series) Circular No. 44 November 15, 2011 To, All Category - I Authorised Dealer Banks Madam / Sir, Trade Credits for Imports into India – Review of all-in-cost ceiling Attention of Authorised Dealer Category-I (AD Category-I) banks is invited toA. P. (DIR Series) Circular No. 27 dated October 27, 2008relating to the all-in-cost ceiling of Trade Credits for imports into India. 2. On a review of developments in the global financial markets and the ...

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RBI/2011-12/258DBOD.DIR.No. 52 /04.02.001/2011-12 November 15, 2011 All Scheduled Commercial Banks Dear Sir/Madam, Interest Rates on Export Credit in Foreign Currency Please refer to ourcircular DBOD.DIR.(Exp).No.76/04.02.001/2009-10 dated February 19, 2010as also paragraph 7 of Master Circular on Rupee/Foreign Currency Export Credit and Customer Service to Exporters dated July 01, 2011 relating to export credit in foreign currency. 2. Keeping in view the tight liquidity conditions...

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The Chairmen/Chief Executive Officers All Scheduled Commercial Banks (excluding RRBs)/Local Area Banks Dear Sir, Payment of Cheques/Drafts/Pay Orders/Banker’s Cheques In India, it has been the usual practice among bankers to make payment of only such cheques and drafts as are presented for payment within a period of six months from the date of the instrument. 2. It has been brought to the notice of Reserve Bank by Government of India that some persons are taking undue...

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On a review of the current ECB policy, it has been decided, in consultation with the Government of India, to further rationalise and liberalize the ECB Policy as under : (i) The limit for eligible borrowers to avail of ECB under the automatic route per financial year has been enhanced as follows: corporates in real sector-industrial sector-infrastructure sector – USD 750 million or equivalent as against the present limit of USD 500 million or equivalent. corporates in specified ...

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As you may be aware section 25 of the paymentand Settlement Systems Act, 2007 accords the same rights and remedies to the payee (beneficiary) against dishonour ofelectronic fund transferinstructions for insufficiency of funds in the account of the payer (remitter), as are available to the payee under section 138 of the Negotiable Instruments Act, 1881. 2. The sub-section (5) of the section 25 of thePaymentand Settlement Systems Act, 2007 provides for punishment of two years and twice the amou...

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To All Banks Authorised to Deal in Foreign Exchange Madam / Sir, Gift in Rupees by Resident Individuals to NRI close relatives Attention of the Authorised Dealer (AD) banks is invited toA.P. (DIR Series) Circular No. 24 dated December 20, 2006andA.P. (DIR Series) Circular No. 9 dated September 26, 2007in terms of which the remittances towards gift and donation by a resident individual was included in the Liberalised Remittance Scheme. 2.The Committee to review the facilities for i...

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To All Scheduled Banks [excluding Regional Rural Banks(RRBs) ] and Primary Dealers Dear Sir/Madam, Standing Liquidity Facilities for Banks and Primary Dealers Please refer to theMid-Quarter Monetary Policy Review of September 16, 2011, in terms of which the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points from 8.00 per cent to 8.25 per cent with immediate effect. 2. Accordingly, the Standing Liquidity Facilities provided to banks (export...

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