Category: RBI Notification & Circular

i.     The CTS centers in New Delhi, Chennai and Mumbai will adopt RTGS holidays asuniform holidays for the respective grid.

ii.    Additionally, CTS operations will be closed on such days when all the participatingstates in the grid are observing holidays, even though RTGS is working on such days. iii. The President of the respective CTS location will notify the list of such uniform  holidays well in advance to enable the participating banks to put in place inward         clearing processing infrastructure at the grid location.

5. Under CTS, inward clearing is generally processed in a centralised manner by banks at the CTS location. However, in exceptional cases, where the reference to base branch is required and the base branch is closed on account of local holiday, the drawee bank at the grid location may return the instrument to the presenting bank under return reason code 88 as enumerated in annexure D of Uniform Regulations and Rules for Bankers’ Clearing Houses with the description “need reference to the drawee branch which is closed on account of local holidays/issues”.

6. It may also be noted, on occasions when banks are unable to process the inward clearing pertaining to specific locations due to exceptional circumstances, they can approach the President of the Clearing House at CTS location for extension of return / blocking the presentation drawn on such locations.

7. The above instructions are issued under section 18 of the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

8. Please acknowledge receipt. Yours faithfully,

(Vijay Chugh)

Chief General Manager

Download RBI Circular No.  2013-14/185 Dated  August 14 , 2013 for Interest Rates on FCNR(B) Deposits

RBI/ 2013-14/185

DBOD.Dir.BC. 38 /13.03.00/2013-14                                                          August 14 , 2013

All Scheduled Commercial Banks (excluding RRBs)

Dear Sir/Madam

Interest Rates on FCNR(B) Deposits

Please refer to our circular No.DBOD.Dir.BC.102/13.03.00/2011-12 dated May 4, 2012 on
Interest Rates on Deposits held in FCNR(B) Accounts. In view of the prevailing market conditions, it has been decided that until further notice and with effect from the close of business in India as on August 14, 2013, the interest rate ceiling on FCNR(B) Deposits will be as under:

Maturity Period                             Existing                                          Revised

1 year to less than 3     LIBOR/Swap  plus   200  basis           No change

years                             points

3 – 5 years                    LIBOR/Swap  plus   300  basis       LIBOR/  SWAP  plus    400  basis

points                                             points

On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity plus 200 bps/ 400 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.

2. All other instructions in this regard, as amended from time to time, will remain unchanged.

3. These instructions will be valid up to November 30, 2013, subject to review.

4. An amending directive DBOD.No.Dir.BC. 37/13.03.00/2013-14 dated August 14, 2013 is enclosed.

Yours faithfully,

(Prakash Chandra Sahoo)
Chief General Manager

DBOD.Dir.BC.  37 /13.03.00/2013-14                                                 August 14, 2013

Interest Rates on FCNR(B) Deposits

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the directive DBOD.No.Dir.BC.101/13.03.00/2011-12 dated May 4, 2012 on Interest Rates on FCNR(B) Deposits, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that with effect from the close of business in India as on August 14, 2013 the interest rate ceiling on FCNR(B) deposits shall be as under:

Maturity Period                          Existing                                         Revised

1 year to less than     LIBOR/Swap plus 200 basis    No change

3 years                         points

3 – 5 years                   LIBOR/Swap plus 300 basis    LIBOR/  SWAP  plus    400  basis

points                                           points

On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity plus 200 bps/ 400 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.

These instructions will be valid up to November 30, 2013, subject to review.

(B. Mahapatra)

Executive Director
Chief General Manager

On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity plus 200 bps/ 400 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.

2. All other instructions in this regard, as amended from time to time, will remain unchanged.

3. These instructions will be valid up to November 30, 2013, subject to review.

4. An amending directive RPCD.CO.RRB.Dir.No.21/03.05.33(C)/2013-14 dated August 19, 2013 is enclosed.

5. Please acknowledge receipt to our Regional Office concerned. Yours faithfully,

(Madhavi Sharma)

Chief General Manager

RPCD.CO.RRB.Dir.No. 21 /03.05.33/2013-14                                              August 19, 2013

 

 

Interest Rates on FCNR(B) Deposits

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949,
and in modification of the directive RPCD.CO.RRB.Dir.No.75/03.05.33(C)/2011-12 dated
May 8, 2012 on Interest Rates on FCNR(B) Deposits, the Reserve Bank of India being
satisfied that it is necessary and expedient in the public interest so to do, hereby directs that with effect from the close of business in India as on August 14, 2013 the interest rate ceiling on FCNR(B) deposits shall be as under:

 

Maturity Period                        Existing                                           Revised

1 year to less than 3    LIBOR/Swap    plus       200    No change

years                            basis points

3 – 5 years                    LIBOR/Swap    plus       300    LIBOR/ SWAP plus 400 basis points

basis points

On floating rate deposits, interest shall be paid within the ceiling of swap rates for the respective currency/maturity plus 200 bps/400 bps as the case may be. For floating rate deposits, the interest reset period shall be six months.

These instructions will be valid up to November 30, 2013, subject to review.

Yours faithfully,

 

Dr.(Smt.) Deepali Pant Joshi Executive Director

5.  An  amending  directive  DBOD.Dir.BC. enclosed.

Yours faithfully,

(Prakash Chandra Sahoo) Chief General Manager

DBOD.Dir.BC. 39 /13.03.00/2013-14                                         August 14, 2013

Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the directive DBOD. Dir. BC. 63/ 13.03.00/ 2011-12 dated December 16, 2011 on Deregulation of Interest Rates on Non-Resident (External) (NRE) Deposits and Ordinary Non-Resident (NRO) Accounts, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that banks are free to offer interest rates without any ceiling on NRE deposits with maturity of 3 years and above. The extant ceiling on NRO Accounts shall continue. These instructions will be valid up to November 30, 2013, subject to review.

 

 

(B. Mahapatra)

Executive Director

Download RBI Circular No. 2013-14/170 Dated  August 1, 2013 For Implementation of Section 51-A of UAPA, 1967 – Updates of the UNSCR 1988 (2011) Sanctions List – Primary (Urban) Co-operative Banks

RBI/2013-14/170

UBD BPD (PCB) Cir. No.3/14.01.062/2013-14                                             August 1, 2013

The Chief Executive Officer

All Primary (Urban) Co-operative Banks

Madam / Dear Sir,

Implementation of Section 51-A of UAPA, 1967 – Updates of the UNSCR 1988 (2011) Sanctions List – Primary (Urban) Co-operative Banks

Please refer to our circular UBD.BPD.(PCB).Cir.No.23/14.01.062/2012-13 dated November 2, 2012 on the captioned subject.  We have since received from the Ministry of External Affairs, UNP Division, Government of India a copy of note dated June 27, 2013 (copy enclosed) forwarded by the Chairman of UN Security Council’s 1988 Committee regarding changes made in the “1988 Sanctions List”, i.e. list of Individuals and entities linked to Taliban.

2.       Primary (Urban)  Co-operative  Banks   (UCBs)  are  required  to  update  the  list  ofindividuals/entities as circulated by Reserve Bank of India.  Before opening any new account, it should be ensured that the name/s of the proposed customer does not appear in the list.  Further, banks should scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list.

3. UCBs are advised to strictly follow the procedure laid down in the UAPA Order dated August 27, 2009 enclosed to our circular UBD.CO.BPD. PCB. Cir. No. 21/12.05.001/2009-10 dated November 16, 2009 and ensure meticulous compliance to the Order issued by the Government.

4. In so far as freezing of funds, financial assets or economic resources or related services held in the form of bank accounts of the designated individuals/entities are concerned,action should be taken as detailed in paragraph 7 of the circular dated November 16, 2009 mentioned above.

5.     Complete   details   of   the   said   list   are   available   on   the   UN   website:http://www.un.org/sc/committees/1988/list.shtml

6. Compliance Officer/Principal Officer should acknowledge receipt of this circular to the Regional Office concerned.

Yours faithfully,

(P.K. Arora)

General Manager

Encls.: As above.

Download RBI Circular No. 2013-14/201 Dated August 26, 2013 for Reporting of OTC transactions in Securitized Debt Instruments

RBI/2013-14/201

IDMD.PCD. 06 /14.03.06/ 2013-14

August 26, 2013

To

All RBI regulated entities

Dear Sir/Madam

Reporting of OTC transactions in Securitized Debt Instruments

As a measure to develop the securitized debt market and improve transparency, the reporting of Over The Counter (OTC) transactions in Securitized Debt Instruments has been enabled in Fixed Income Money Market and Derivatives Association of India (FIMMDA) reporting platform.

2.      All entities regulated by the Reserve Bank should report their secondary market OTC trades in securitized debt instruments within 15 minutes of the trade on FIMMDA’s reporting platform with effect from September 02, 2013.

Yours faithfully,

 

(K.K. Vohra)

Principal Chief General Manager

Download RBI Circular No. 2013-14/202 Dated August 27, 2013 For Compliance with Credit Information Companies (Regulation) Act, 2005

RBI/2013-14/202

UBD CO BPD PCB Cir.No.4/16.74.000/2013-14                       August 27, 2013

The Chief Executive Officer

All Primary Urban Co-operative Banks

Dear Sir / Madam,

Compliance with Credit Information Companies (Regulation) Act, 2005

Please refer to circular UBD BPD (PCB) Cir.No.25/09.11.200/2009-10 dated December 3, 2009 in terms of which it was advised that as UCBs fall under the category of credit institutions as defined in sub section (f) of Section 2 of the Credit Information Companies (Regulation) Act, 2005, they are required to take membership of at least one Credit Information Company (CIC), provide credit data to the credit information company as per format prescribed by it and build up database for effective exchange of credit information.

2.         It has, however, come to our notice that a large number of UCBs are yet to become members of any CIC as required under the Credit Information Companies (Regulation) Act, 2005.  In view of this, UCBs are once again advised to ensure that they become member of a CIC, as required in terms of Section 15(1) of the Credit Information Companies (Regulation) Act, 2005. 3. Please acknowledge receipt of this circular to the Regional Office
concerned.

Yours faithfully,

(P.K. Arora)

General Manager

Download RBI Circular 2013-14/193 Dated August 19, 2013 For Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

RBI/2013-14/193

RPCD.CO.RRB. BC. No.24 /03.05.33/2013-14                                             August 19, 2013

The Chairmen

All Regional Rural Banks (RRBs)

Dear Sir/Madam,

Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

Please refer to our circular RPCD.CO.RRB.BC.No.45/03.05.33(C)/2011-12 dated December 19, 2011 on Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits and Ordinary Non- Resident (NRO) Accounts.

2. In terms of para 2 ibid, interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits. However, in order to pass on the benefit of exemption provided on incremental NRE deposits with maturity of 3 years and above from CRR/ SLR requirements, it has been decided to give banks the freedom to offer interest rates on such deposits without any ceiling. The extant ceiling on NRO Accounts shall continue.

3. All other instructions in this regard, as amended from time to time, will remain unchanged.

4. These instructions will be valid up to November 30, 2013, subject to review.

5. An amending directive RPCD.CO.RRB.Dir.No.23/03.05.33/2013-14 dated August 19, 2013 is enclosed.

6. Please acknowledge receipt to our Regional Office concerned. Yours faithfully,

(Madhavi Sharma)

Chief General Manager

RPCD.CO.RRB. Dir.No.23 /03.05.33/2013-14                                                August 19, 2013

Deregulation of Interest Rates on Non-Resident (External) Rupee (NRE) Deposits

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and in modification of the directive RPCD.CO.RRB.Dir.No.44/03.05.33(C)/2011-12 dated December 19, 2011 on Deregulation of Interest Rates on Non-Resident (External) (NRE) Deposits and Ordinary Non-Resident (NRO) Accounts, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that banks are free to offer interest rates without any ceiling on NRE deposits with maturity of 3 years and above. The extant ceiling on NRO Accounts shall continue. These instructions will be valid up to November 30, 2013, subject to review.

Yours faithfully,

Dr.(Smt.) Deepali Pant Joshi Executive Director

Download RBI Circular No. 2013-14/198 Dated August 23, 2013 For Investment portfolio of banks – Classification, Valuation and Provisioning

RBI/2013-14/198

DBOD.BP.BC.No. 41 / 21.04.141 /2013-14                                                   August 23, 2013

All Scheduled Commercial Banks (excluding RRBs)

Dear Sir,

Investment portfolio of banks – Classification, Valuation and Provisioning

Please refer to our Circular DBOD.No.BP.BC.92/21.04.141/2012-13 dated May 15, 2013 on ‘SLR Holdings under Held to Maturity Category’ in terms of which banks are permitted to exceed the limit of 25 per cent of total investments under the Held to Maturity (HTM) category provided:

(a) the excess comprises only SLR securities, and

(b) the total SLR securities held in the HTM category is not more than 24.50 per cent by end June 2013, 24.00 per cent by end September 2013, 23.50 per cent by end December 2013, and 23.00 per cent by end March 2014 of their Demand and Time Liabilities (DTL) as on the last Friday of the second preceding fortnight.

2. It has been observed that the recent hardening of long term yields has resulted in banks incurring large mark-to-market (MTM) losses in their investment portfolio. Since these MTM losses are partly resulting from abnormal market conditions and could be recouped going forward, it has been decided to provide the following prudential adjustments for a limited period:

i.      In terms of extant instructions, banks are required to bring down their SLRsecurities in HTM category from 25.00 per cent to 23.00 per cent of their DTL in a progressive manner as prescribed in paragraph 1 above, the requirement being 24.50 per cent as of end June 2013. It has now been decided to relax this requirement by allowing banks to retain SLR holdings in HTM category at 24.50 per cent of their NDTL. Banks are, therefore, permitted to exceed the limit of 25.00 per cent of total investments under the HTM category provided the excess comprises only SLR securities and the total SLR securities held in the HTM category is not more than 24.50 per cent of their NDTL as on last Friday of the second preceding fortnight, till further instructions.

ii.      As per extant instructions, banks may shift investments to 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. As a one-time measure, it has now been decided to permit banks to transfer SLR securities from AFS/HFT to HTM category up to the limit of 24.50 per cent of NDTL as prescribed at para 2 (i) above. Such transfer of securities from AFS/HFT category to HTM category should be made at the lower of book value or market value. Banks have the option of valuing these securities for the purpose of such transfer as at the close of business of July 15, 2013 and depreciation, if any, should be provided for in accordance with para 2.3 (v) of the Master Circular – Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks (DBOD.No.BP.BC.8/21.04.141/2013-14 dated July 1, 2013). If banks choose to transfer securities as above, the transfers must be done at the earliest but not later than September 30, 2013. This transfer must be out of the outstanding position of AFS/HFT securities as at the close of business of August 23, 2013 up to the limit of 24.50 per cent of NDTL (i.e. NDTL as on July 26, 2013 applicable for maintenance of SLR for August 23, 2013). Such one-time transfer from AFS/HFT would be excluded from 5 per cent cap prescribed for value of sales and transfers of securities to/ from HTM category under para 2.3 (ii) of the above Master Circular.

iii.      Banks are required to periodically value their AFS and HFT portfolio and provide for net depreciation in accordance with paras 3.2 and 3.3 of the Master Circular dated July 1, 2013 referred to above.  Banks will now have the option of distributing the net depreciation on the entire AFS and HFT portfolios on each of the valuation dates in the current financial year in equal instalments during the financial year 2013-14.

Yours faithfully,

(Rajesh Verma)

Chief General Manager

3. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(Madhavi Sharma)
Chief General Manager

(NRO)  accounts  to  NRE