iA K GUPTA: BANKERS TRAINING INSTITUTE (77, Block BG-1, Paschim Vihar, New Delhi ) Tel: 8700526959, 9953587375, 8595004205 KNOW YOUR FACULTY - Sh. A.K. GUPTA) 1. Shri A.K. Gupta is LL.B from prestigious Punjab University, Chandigarh, CAIIB, M.Comm (post graduate in commerce), PG Dip in Personnel Management and IR, PG Dip in Marketing and Management, PG Diploma in Training and Development, Certificate in industrial Finance; 2. Besides attending several programmes at NIBM and BTC(RBI), he was a student of University of Manchester for 3 months for an advanced programme in Development Banking. 3. Ex- Chief Manager, Punjab National Bank with an experience of more than 28 years as a banker 4. Experience of more than 12 years in training in the bank's training college (Principal for 5 years) 5. Has helped thousands of bankers up to scale VI in their banking career for l t 20 years. 6. Has been examiner with Indian Institute of Banking & Finance (IIBF, Mumbai) for about 5 years, Has been teaching Financial Management and Management Accounting and Commercial Law in the classes conducted by the Indian Institute of Banking & Finance. 7. After having left bank as chief manager, at the age of 48 years, remained associated with number of leading management institutions at MBA level including Masters of Finance, University of Delhi, International Management Institute etc teaching subjects like Management of Banks, Financial Services, Financial Management, Merchant Banking, Banking Law & Practice. 8. Conducted programmes in the area of Asset Liability Management and Credit risk management for top management executives in the rank of Chief General Manager/General Manager/DGM/ AGMs of SIDBI, Central Bank of India, Dena Bank, Punjab & Sind Bank 9. Has been visiting faculty to training colleges of several banks like PNB, NIBSCOM (joint college of Oriental Bank of Commerce, PSB and J&K Bank), Canara Bank, UCO Bank, Bank of India etc 10. He was incharge of Economic Intelligence Cell in PNB for 5 years and the job involved analysis of monetary & credit policies of RBI, analysis of Govt. policies and Budget; tracking Banking and Economy related developments; He was Senior Manager incharge of Asset Liability Management Cell for 2 years. 11. Number of articles and case studies authored by him have appeared in Economic Times, Financial Express, PNB Monthly Review, Vikalpa (Journal of IIM Ahmedabad), The Banker, Indian Banking Today and Tomorrow, indian Management (Journal of AIMA). He presented papers at Bank Economists Conferences. 12. He can be contacted at 093 50 476949, email: aka.bti@amail.com COPYRIGHT MATERIAL WARNING ANY Scanning, photography or Photocopy or distribution (Whatsapp/Telegram/Facebook) of this material is. a legal offence under Indian Copyrights Act and IT Act and is liable for Legal Action with Bank and rn Cnn een keelan eat CL aneFela a tm aT eTMU ONT ea eee Can ee ae ieee a legal offence under Indian Copyrights Act and IT Act and is liable for Legal Action with Bank Be eK aaU Aone eat AseLaca cider abe Cho Aa laalaticd BANKERS TRAINING INSTITUTE (77, Block BG-1, Paschim Vihar, New Delhi ) Tel: 8700526959, 9953587375, 8595004205 1. Anshul Gupta is a Merit holder Chartered Accountant and B. Comm (Hons) from Hindu College, University of Delhi 2. He has worked with Banks across Globe to manage Treasury operations, Derivatives and streamline Banking operations for organisations. 3. He is an expert on Indian Commercial Law, Income Tax, GST, Accounting, Auditing, IFRS, US GAAP and Information Technology for Finance. 4. He has attended multiple trainings on Treasury and Bank Management, financial management, Cost and performance management and is an expert on Theory of Constraints in financial services. 5. He worked as CFO for Fortune 500 US Company for 8 years and prior to that has worked in financial services industry for another 14 years. 6. He has an extensive audit experience for Banks, Financial Services firms, NBFCs and other Govt enterprises 7. He left corporate sector to foray in education sector to help students across disciplines. He is a visiting faculty at multiple institutes for MBA, BBA courses and also teaches financial management and Law for Chartered Accountancy examinations 8. He is an expert trainer on Human Resources management, Interview skills and managing group dynamics. 9. He can be contacted at : anshquptaa@qmail.com icra huateteo Gat ANY Scanning, photography or Photocopy or distribution (Whatsapp/Telegram/Facebook) of this material is Seniors ace eee eee ae Ee Le Bey Un eeuLU Acie anus ele acl Kclaucuueee een MaanAK G INSTITUTE OF DISTANCE LEARNING a gurnt 8595004205; 9953587375; kka.bti@amail.com; www.bankerstraininginstitute,.com; 7 ‘COPYRIGHT MATERIAL - ANY Scanning, photography or Photocopy or cistribuion (Whatsapp/Telagram/Facsbook) ofthis materials ‘Under Indian Copyrights Act and IT Act and sable for Legal Acton with Bank end authorities. “Incremental CRR of 10% for limited period. MOST IMPORTANT QUESTIONS BASED ON RBI GUIDELINES IMPORTANT POLICY /BANKING RATES Rate 07.09.2023, ‘Repo Rate 6.5% (08.02.2025) ‘Standing deposit faiity (SDF) rate | 6.25% (08.02.2023) Fined Reverse Repo Rate 3.35% (22.05.2020) Marginal Standing Facilty Rate Bank Rate, ‘CRR (26age of NDTLS) ‘SLR (%age of NDTLs) 2 1 pre-sanctioned credit line issued by a Scheduled Commercial ith prior consent of the individual customer, are enabled for transactions using the UP! Systes rms and conditions of use of such credit lines. The terms may include, among other items, cred , rate of interest, ete Enhancing transaction limits for Small Value Digital Paym (August 24, 2023): An offline payment means a transaction which does not require internet or tel a y to take effect. RBI, vide circular dated 3 Jan 2022, allowed Authorised Payment System Operators (P fuirers and Issuers (banks and non- banks) -to provide / enable payment solutions that facilitate small value Sigil payments in offine mode subject to compliance with following requirements: a. Offi pétryment like cards, wallets, mobile devices, etc. 2023, has increased the upper limi’ of ransaction to Rs 500. The total limit for offine allowed only in online mode wit Offline payments shall be mag a 4. Offline payment transactions(fnay be offe nal Factor of Authentication (AFA). fe. Payment instruments shall He erjabled for 3 ctions based on explicit consent of the customer. Such transactions using cards shall be plowed wou ‘2 requirement to switch on the contactless transaction channel The issuer shall ser {ef as soon as transaction details are received. There is no compulsion to send glert " f, details of each transaction shall be adequately conveyed. technical or transaction security issues at merchant's end. Reset of Floay ted Monthly Instalments (EMI) based Personal Loans (August 18, 2023): In ter | on Fair Practices Code for lenders regulated entities (REs) including banks have te¥ories of advances either on fixed or on floating interest rates basis. At the time of sanction of ale personal joans, RES are required to take into account the repayment capacity of boro dequate headroom! margin is available for elongation of tenor and/ or increase in EMI, in the sce sible increase in the external benchmark rate during the tenor of the loan. Some banks increased EMI or tehpr wa extended without any communication to the borrower. RBI has now advised REs to put in a. At the time of sandtjon,REs shall clearly communicate to the borrowers about the possible impact of change in ‘benchmark interest *qié on the loan leading to changes in EMI andlor tenor or both. Subsequently, any increase in the EMV tenor or both on account of the above shall be communicated to the borrower immediately through appropriate channels b. Atthe time of reset of interest rates, REs shall provide the option to the borrowers to switch over to a fixed rate as peer their Board approved policy. The policy, inter alia, may also specify the number of times a borrower will be allowed to switch during the tenor of the loan, AKG INSTITUTE OF DISTANCE LEARNING 1 I: 8700526959; 9953587375; kus ttioamalLeony wwe bankerstraninainstituteccom: ‘COPYRIGHT MATERIAL ANY Scanning, photography or Photocopy or distribution (Whatspp/ Telegram Facebook) ofthis mataril lea legal offence ‘under Indian Copyrights Act and TT Act and sable for Legal Acton with Bank and authors.AK G INSTITUTE OF DISTANCE LEARNING 4 guras es asps004205; 9950587275; kistiPamal con wow bankesalnlaslnetut. cons Soren prereset & The borrowers shall also be given the choice to opt for () enhancement in EMI or elongation of tenor or for a combination of both options; and, (i) to prepay, either in part or in full, at any point during the tenor of the loan. Levy of foreclosure charges! pre-payment penalty shall be subject to extant instructions. d. All applicable charges for switching of loans from floating to fixed rate and any other service charges! ‘administrative costs incidental to the exercise of the above options shall be transparently disclosed in the sanction letter and also at the time of revision of such charges! costs by the REs from time ty . REs shall ensure that the elongation of tenor in case of floating rate loan does not gative amortisation, REs shall share / make accessible to the borrowers, through appropriate chant at the end of each quarter which shall at the minimum, enumerate the principal and interest recg E jount, number REs shall ensure that the stalemeents are simple and easily understood 9g. These instructions would also apply, to all equated instalment based loans linked to an external benchmark under the External Benchi should put in place adequate information systems to monitor transmissfon of cha 1@ benchmark rate to the lending rate. h. These instructions are to be extended to the existing as well a suitably by Deb 4. Fair Lending Practice - Penal Charges in Loan Account institutions have the operational autonomy to formulate of penal rates of interest Normally, many REs use penal rates of interest, over and trates, in case of defaults / non-compliance by the borrower with the terms on which credit fancfoned. The intent of levying penal interesticharges is essentially to inculcate a sense of credit discipline & chdiges are not meant to be used as a revenue enhancement tool over and above the contracted rate of intereSt RBV/ias now issued following instructions in this regard a. Penalty, if charged, for non-compliance of materiaytermpg and conditions of loan contract by the borrower shall be x of ‘penal interest’ that is added to the rate of interest i.e,, no further interest computed on the extant guidelines, lending harges on loans, by whatever name called. d. The quantum of penal chargps fmensurate with the non-compliance of material terms af within a particular loan / product category. dividual borrowers, for purposes other than business’, shall not be higher than the penal 4 plicable to non-individual borrowers for similar non-compliance of material {The quantum and s f be disclosed by REs to the customers in the loan agreement and most important tera Iso displayed on REs website under Interest rates and Service Charges. Whenever ice of material terms and conditions of loan are sent to borrowers, applicable lunicated. Further, any instance of levy of penal charges and the reason therefor These instucti effect from January 1, 2024. REs may ensure implementation of the instructions by {teh loans availed/ renewed from the effective date. In the case of existing loans, the switchovehto net pedal charges regime shall be next review or renewal date or six months from the effective hever is earlier. however, not apply to Credit Cards, External Commercial Borrowings, Trade Credits and ich are covered under product specific directions. 5. Requirement for maintafning additional CRR (August 10, 2023): Under Section 42(1) of RBI Act, all Scheduled Banks are required to maintain with RBI a Cash Reserve Ratio (CRR) of 4.50% of Net Demand and Time Liabilities (NDTL). On @ review of the current liquidity conditions, RBI has advised banks to maintain with RBI an incremental GRR (i-CRR) of 10% on the increase in NDTL between May 19, 2023 and July 28, 2023. This will be effective from the fortnight beginning August 12, 2023. The I-CRR will be reviewed on September 8, 2023 or earlier. AKG INSTITUTE OF DISTANCE LEARNING = 2 M: 8700526859; 9953587375; ku. btiQumal cons ww. bankerszaninalastiute. coms covvasoir waren" Scns, posse or Phaecopy ofason (atspp/Tlegm/Faccoak of satel aga ence ar tndun Cops et nT Ace lle or ep! An wth an ad suesAKG INSTITUTE OF DISTANCE LEARNING A arta 18595004205; 9953587375; kko.bti@amall.comy wwrw.bankerstraininainsttute.com; ‘COPYRIGHT MATERIAL — ANY Scanning, photography or Photocopy or distribution (Whatsapp/Telegram/Facebook) of this material i Linder inion Copyrights Act and IY Ak ands able or Lepal Acton with Bark and authors. 6. RBI launches TRH - UDGAM - Centralised Web Portal for searching Unclaimed Deposits (Aug 17, 2023): RBI has launched a Centralised Web Portal 74 UDGAM (Unclaimed Deposits — Gateway to Access information). This portal has been developed by RBI for use by members of public to facilitate and make it easier for them to search their unclaimed deposits across multiple banks at one place. The launch of the web portal will aid users to identify their unclaimed deposits) accounts and enable them to either claim the depost arpaunt or make their deposit accounts operative at their respective banks. Reserve Bank Information Technology P\ ReBIT), Indian Financial Technology & Allied Services (IFTAS) and participating banks have collaborated op the portal. To begin with, users would be able to access the details of their unclaimed deposits in mbanks present avaliable on the portal. The search facility for remaining banks on the portal in a phased manner by October 15, 2023 7. Credit & Monetary Policy ~ August 2023 (Aug 10, 2023) a. The Monetary Policy Committee (MPC) decided to keep the policy at 6.50%. The standing deposit facility (SDF) rate remains at 6.25% and the marginal standing facility ( nd the Bank Rate at 6.75%. MPC decided to remain focused on withdrawal of aligns with the target, while supporting growth, b. India has become the fifth largest economy in the ‘at market exchange rate) and contributing around 15% to global growth. Our banks refi B than a decade with historically high levels of capital, declining levels of non-performing/ asst lity. Corporate balance sheets are robust, with lower leverage, improving debt servicindvca bility. Lower current account deficit and ample capital flows have imparted strength to by exteg ihe resultant accretion to forex reserves has provided a buffer against external shocks. Ove) stighg macroeconomic fundamentals have laid the foundations for sustainable growth, . AAs per RBI, real GDP grows for 2023-24 is projected ay6.5% with Q1 at 8.0%; Q2 at 6.5%; Q3 024-25 is projected af 6.6%. The risks are evenly balanced. thio 5.4%, with Q2 at 6.2%, Q3 at 5.7% and Q4 at 5.2% Domestic Growth at 6.0%; and Q4 at 5.7%. Real GDP gro 4. Inflation: CPI inflation projections for 20 ‘The risks are evenly balanced, Liquid Position, RBI has decided that maintain an incremental cash, (NDTL) between May 19, 2078 abd July 3a f. Extemal Sector: India's currbnt Account del fs contained at 2.0% of GDP in 2022-23 as compared beginning August 12, 2023, scheduled banks shall the increase in their net demand and time liabilities wih 12% in 2021-22. CAD] is bxpected to remain eminenty manageable during the current financial year also. India’s external dp to GDP Felia improved to 18.9% at end-March 2023 from 20% at end- March 2022 Indian rupee has remaine Gating reign exchange reserves have crossed US$ 600 billion mark 3 Eran ors: RBI has decided to revise the extant n Be The extant regulatory The key changes in the revised framework ere: ()) withdrawal of the IDFs; (i) allowing IDFs to finance toll-operate-transfer (ToT) projects as raise funds through ECBs; and (iv) making tr-partte agreements optional for Quidelines on subi ‘Of supervisory relums by superised entities. Now, REI has decided fo consolidate and harmonise such guitigMhes into a single Master Direction to reduce compliance burden and to promote greater ease of doing business for supervised entities k Conversational Payments and Off-line Capability on UPI; Enhancement i ion Limit of Small Value Off. ine Diaital Payments: With the objective of hamessing new technologies for enhancing the digital payments experience for users, RBI has proposed to (i) enable “Conversational Payments” on UPI, which will enable users to engage in conversation with Al-powered systems to make payments; (i) introduce offine payments on UPI using Near Field Communication (NFC) technology through ‘UPI-Lite’ on-device wallet, and (i) enhance the transaction limit for small value digital payments in mode from 200 to 2500 AK G INSTITUTE OF DISTANCE LEARNING ‘M: 8700526959; 9953587375; kka.bti@amail.com; yaw, bankerstraininainstitute.com; ‘COPYRIGHT MATERIAL ~ ANY Scanning, photography or Photocopy or distribution (Whatsapo/ Telegram /Facabook) of hs materia ls legal offence ‘under Indian Copyrights Act and IT Ac ands able fr Legal Acton with Bank and authors.AKG INSTITUTE OF DISTANCE LEARNING Pi j | m: 8505004205; 9953587375; is itidomal,con nn bankarstraninansts con | | COPYRIGHT MATERIAL - ANY Scanning. photography or Photocopy or distribution (Whatsapp/ Telegram /Facebook) ofthis materials Linder Tndian Copyrights Act and TT Act ands hab for Legal Action with Bank and authors. £2000 per payment instrument. These iniatves wil futher deepen the reach and use of digtal payments in the country |. Public Tech Platform for Frictionless Credit: RBI, in association with the Reserve Bank Innovation Hub (RBI), started a pilot project in September 2022 for frictionless credit delivery through end-to-end digital processes, starting with Kisan Credit Card (KCC) loans. The pilot for KCC loans is currently opgrational in select districts of Madhya Pradesh, Tamil Nadu, Kamataka, UP and Maharashtra. Recently, daiy Ign Wave been included in the pilot project in select districts of Gujarat. A Public Tech Platform for Fricionless Créd ry is being developed by the RBIH. This intiative will accelerate the penetration of credit to hitherig"oqde deepen financial inclusion 8, Inclusion of “NongHyup Bank" in Second Schedule of RBI Act (July, included in the Second Schedule to the RBI Act on June 20, 2023. Accordingly, the MIFOR administered by FBIL shall cease 46 updated lis of ‘significant benchmarks’ administered by FBI (Overnight Mumbai interbank Outright Rate (MIBOR’ (i) USDIINR Reference Rate (i) Treasury Bill Rates (iv) Valuation of Government Securities (v) Valuation of State Development Log (uv) Modified Mumba Interbank Foryafd Outright Rate (MMIFOR) 10, Remittances to International Financial Ss) under the Liberalised Remittance Scheme (LRS) (June 22, 2023): Presently, remitthnogs to IF& RS can be made only for making investments in securities. Now, Authorised Persons may facillate remi by/resident individuals under purpose ‘studies abroad’ for payment of fees to foreign unjdprsitie& or in IFSCs for pursuing courses mentioned in the gazette notification issued by Go) 11, Agency Commission for collebtioh of indirect ‘through ICEGATE payment gateway (June 14, 2023): Certain transactions related to ed of indirect taxes through ICEGATE (CEP) payment gateway are now being reported by agency bank (MRO), RBI with effect from April 01, 2023. Therefore, RBI has advised as under: “Age government transactions al ‘commission claims pertaining regime, and trap Regionat Office of RBI for State government transactions. However, agency eipt transactions, transactions related to direct tax collection under TIN 2.0 lection of indirect taxes through ICEGATE payment gateway reported to 12. Guidelines on B rantée (DLG) in Digital Lending (June 08, 2028) fe guidelines are applicable to DLG arrangements entered in ‘Digital Lending’operations ial Banks (including Small Finance Banks), Primary (Urban) Co-operative Banks, State entral Co-operative Banks; and Non-Banking Financial Companies (including Housing Wed as Regulated Entities (RE). DLG): A contractual arrangement, between the Regulated Entity (RE) and DLG Provider, under whic the latter guarantees to compensate the RE, loss due to default up to a certain percentage of the loan portfolio of the RE, specified upfront. Any other implicit guarantee of similar nature linked to the performance of the loan portfolio of the RE and specified upfront, shall also be covered under the definition of DLG. DLG shall not involve any actual transfer of the underlying loan exposure from the books of the RE to the books of the DLG Provider. Co-operative Ba} AK G INSTITUTE OF DISTANCE LEARNING ‘ 'M: €700526959; 9953507375; kk. bicbamallcomy ywm.bankerstraninanstittecom; conmnzor narera. “tity Soar Bhsogrgny 2 Poctapy secon (Whang eprom facebook) fh mate aa fence Salar inclonCopyrtts Aun is tod ue er Lage Acton wth Bok wd tert_ AKG INSTITUTE OF DISTANCE LEARNING a Germs 'M: 8595004205; 9953587375; kka,btiOamail,com; www.bankerstraininainstituts.com; COPYRIGHT MATERIAL — ANY Scanning, photography oF Photocopy or cstriution (Whatsapp Telegram Facebook) ofthis materia sg Sedo nda Copyrights Acland TT At andi ine for Lee! Aton wit ark nd thoi © Eligibility 2s DLG Provider: RE may enter into DLG arrangements only with a Lending Service Provider (LSP)/ ‘other RE with which it has entered into an outsourcing (LSP) arrangement. Further, the LSP providing DLG must bbe incorporated as a company under the Companies Act, 2013, 4. Structure of DLG Arrangements: DLG contract must contain the following details: () Extent of DLG cover; (i) Form in which DLG cover is to be maintained with the RE; (ii) Timeline for DL invocation: (iv) Disclosure requirements . Forms of DLG: RE shall accept DLG only in one or more of the following forms: (i) Fixed Deposits maintained with a Scheduled Commercial Bank with a Bank Guarantee in favour of the RE f. Cap on DLG: RE shall ensure that total amount of DLG cover on any Upfront shall not exceed 5% of the amount of that loan portfolio. In ca: DLG Provider shall not bear performance risk of more than the equi portfolio, 9. Recognition of NPA: Recognition of individual loan assets in the port ‘shall be the responsibilty of the RE irrespective of any DLG coys DLG invoked shall not be set off against the underlying indi loans on which DLG has been invoked and realised, cay contractual arrangement. h. Treatment of OLG for requletory capital: Capital comp Credit Risk Mitigation benefits on individual loan assets |. Invocation of DUG: The RE shall invoke DLG within a mab by the borrower before that }, Tenor of DLG: The period for which the DLG agreement will 2 tenor of the loan in the underlying loan portfolio. k. Disclosure Requirements: LSPs with whom ‘number of portfolios and the respective. |. Due Diligence and other requirement; deposited with the RE: a DLG arrangemerf shall publish on their website the total Rortfolio on which DLG has been offered. fo Bi, () OLG arrangement shall not act as a underwriting standards need to be put in place ation to satisfy itself that the entity extending DLG. which the transferor transfers all or part of its economic interest in a loan actual transfer of the loan contract, and the transferee(s) fund the transferor 13, Framework for Comprofise Settlements and Technical Write-offs (June 08, 2023): To provide impetus to in the system as well as to rationalise and harmonise the instructions across all REs, sive regulatory framework governing compromise settlements and technical write-offs covering all the REs, which is given below: a, Board-approved policy: Regulated Entities (REs) shall have Board-approved policies for undertaking compromise seitlements with the borrowers as well as for technical write-offs. b. Compromise settlement shall refer to any negotiated arrangement with the borrower to fully settle the claims of the RE against the borrower in cash; it may entail some sacrifice of the amount due from the borrower on the part of the RES with corresponding waiver of claims of the RE against the borrower to that extent. Any arrangement AK G INSTITUTE OF DISTANCE LEARNING 5 87003260959; 9953587375; kk. btiamall.com; wuna.bankerstraninanstitute.com; corynzctt MATERIAL “i Seonnin,poteraphy or Phocopy o Srino WhatappYlgrom/ Facebok) ets mateia ir legal fence ‘erin Cop et nfo or Lagat ion ih Sak erosAK G INSTITUTE OF DISTANCE LEARNING ‘M: 8595004205; 9953587375; kkc.bti@amal.com; worw,hankerstralninginstitute.com; ‘COPYRIGHT MATERIAL ~ ANY Scanning, photography or Photocopy or cstribution (Whatsapp/Telegram/Facebook) ofthis materials under Indian Copyrights Act aed TT Act and is table for Lepal Acton with Bank and authorities. involving part settlement with the borrower shall fall under the definition of restructuring and Prudential Framework will be applicable for such cases. c. Technical write-off shall refer to cases where the non-performing assets remain outstanding at borrowers’ loan ‘account level, but are written-off (fully or partially) by the RE only for accounting purposes, without involving any waiver of claims against the borrower, and without prejudice to the recovery of the same for various categories of exposures while arriving at the settlement amot q the current realisable value of securty/collateral, where available. The methodolog flue of the security shall also form part of the policy. The objective shall be distressed borrower at minimum expense, in the best interest of the {The compromise settlements and technical write-offs shall be contractual provisions between the RE and the borrower relating 4 the RE, subject to such claims not being recognised in any mi settlement or subsequently tll actual realization of such rec ‘a. delegation of power for such approvals rests credit / Investment exposure. Any official who was pal committee) shall not be part of the approving the prop ‘account, in any capacity. b. proposals for compromise settlem, including the amount repre: computed on the gross valu i. Reporting Mechanism: Com reported to next higher auth approved by the MD & CEO aMérly basis. Compromise settlements and technical write-offs Level Committee would be reported to the Board xgtable reporting format to ensure () trend in number of accounts ‘and/or technical write-off (g-0-q and y-o-y); (i) out of ()) above, separate breakup of adcgunts'clabsified as Traud, red-Flagged, wilful default and quick mortality accounts; (ii) ithorithwise, and business segment / asset-class wise grouping of such accounts: B compromise settlements, there shall be a cooling period as determined by the rebp ies before the REs can assume fresh exposures to such borrowers. But the cooling pert reagpect of Sposures other than farm credit exposures shal be subject to a minimum of 12 1 technical write-offs shall be as per the Board approved policies of the REs. 1ud and wilful defaulter: REs may undertake compromise settlements or st such debtors. jerever REs had commenced recovery proceedings under a judicial forum and the ‘same is pending belfre such judicial forum, any settlement arrived at with the borrower shall be subject to ‘obtaining @ consent decree from the concerned judicial authorities. 14, Reserve Bank of India (Call, Notice and Term Money Markets) Directions, 2021 (June 08, 2023): RBI has decided that henceforth, Commercial Banks (excluding small finance banks and payment banks) may set their own limits for borrowing in Call and Notice Money Markets as in the case of Term Money Market borrowing. The limits will bbe decided by the Board within the prudential limits for inter-bank liabilties prescribed by REI. AKG INSTITUTE OF DISTANCE LEARNING 6 3700526959; 9953587375; kka.bti@umail.com; wow.bankerstraininainstitute.com; ‘COPYRIGHT MATERIAL ANY Scanning, Bhotography or Photocopy or dutibution (Whatsapp/ Telegram /Facebook) ofthis materi Isa legal offence ‘under Indian Copyrights Act and IT Act and is lable for Legal Action with Sank and authorities.AKG INSTITUTE OF DISTANCE LEARNING (M: 8595004205; 9953587375; kis. btiamall.com; wwrw.bankerstraininainatitute.com; ‘COPYRIGHT MATERIAL ~ ANY Scanning, photography or Photocopy o ditibution (Whatsapp/elegram/ Facebook) ofthis materia i ge ‘under Indian Copyrights Act and TT Act and is lble fr Legal Acton with Bank and authorities. 15. Expanding the Scope of Trade Receivables Discounting System (June 7, 2023): To ease constraints faced by Micro, Small and Medium Enterprises (MSMEs) in converting their trade receivables to liquid funds, RBI issued the ‘Guidelines for the Trade Receivables Discounting System (TReDS). The guidelines allow financing / discounting of MSME receivables on “without recourse” basis by permitted financiers. Currently, thee entities operate TReDS platforms in the country; one more entity has also been given in-principle authorisation 36 Gperate such platform. Now, RBI has made following enhancements to the TReDS guidelines a. Facilitate ingurance for transactions: Financiers place their bids on the TRe participate as “fourth participant’ in TReDS; (i) In their business / oper ‘may specify the stage at which insurance facility can be availed: (ii) b. Expand the pool of financiers: TReDS transactions fall Factors and other financial institutions (as permitted by has now permitted all entities / institutions allowed to un ‘Act, 2011 (FRA) to participate as financiers in TReDS, ©. Enable secondary market for Factoring Units (FUs): TReDS guid to have a secondary market. TReDS piatform operators may, at th transfer of FUs within the same TReDS pl; Loan Exposures Directions, 2021 includ tion, enable a secondary market for Swever, be subject to RBI - Transfer of of transferor / transferee. 17% of FUs uploaded on TReDS platforms are not buyers to pay MSME sellers outside the system. To overcome the inconvenience caused t buyers as well as for better reconciliation, TReDS = using the NACH mechanism, TReDS guidelines and Micro, €. Display of bids: TReDS plat process more transparent, the bidder shall, howey 16. RBI launches its Cer 30, 2023): RBI organis celebrations in the memory oi the Indian statistical system and the 17th Statistics Day Conference (Jun 3 Day Conference as a part of the ‘National Statistics Day 1ss0r Prasanta Chandra Mahalanobis, who made invaluable contributions to planning. Shri Shaktixanta Das, Governor launched the Reserve Bank's {ralised Information Management System (CIMS). 17, (Jun 30, 2023): At end-March 2023, India's external debt was ‘end-March 2022, US dollar-denominated debt remained the largest component of share of 54.6% at end-March 2023, followed by debt denominated in the Indian rupee 7%), and the euro (3.2%). ited as RBI Deputy Governor (Jun 26, 2023): Shri Swaminathan was the Managing ‘and Subsidiaries) of SBI before being appointed as Deputy Governor. 19, Sovereign Gold Bond (SGB) Scheme 2023-24 (June 14, 2023): Government of india, has decided to issue Sovereign Gold Bonds (SGBs) in two tranches. SGBs will be sold through Commercial banks (except SFB, Payment Banks and RRB), Stock Holding Corporation of India Limited (SHCIL), Clearing Corporation of India Limited (CCIL), designated post offices, and National Stock Exchange and Bombay Stock Exchange. The features of the SGBs are as, under: a._ Issuance: To be issued by the Reserve Bank of India on behalf of the Government of india. India's external deb (29.8%), SOR (6.1%) 18, Shri Swaminathan J AK G INSTITUTE OF DISTANCE LEARNING — 7 M: 8700526959; 9953587375; kka,bti@amail.com; www,bankerstraininainstitute.com; ‘COPYRIGHT MATERIAL - ANY Seanning, photography or Photocopy or distribution (Whatsapp/Telegram/Facebook) ofthis material isa legal offence ‘Under Indian Copyrights Act and IT Ac nd ie Hable for Legal Acton with Bank and authors.AKG INSTITUTE OF DISTANCE LEARNING [M: 8595004205; 9953587375; kko.bti@amall,com; yoww.hankerstraininainstitute.com; ‘COPYRIGHT MATERIAL — ANY Scanning, photography or Photocopy or distribution (Whatsapp Telegram Facebook) of this materials Liner tndan Copyrights Act and TY Ac and sible or Legal Action wth Bank and authors, ity: S2Bs wl be sok ony to resided ndhidua, HUF Trusts, Universes & Chartable Institutions. ©. Denomination: SGBs will be denominated in mutiples of gram(s) of gold with a basic unit of One gram. Tatar The tenor of the SB wil befor eit years wi an opton of premature redemption after Sth year tobe exercised on the date on which interest is payable. @. Minimum size: Minimum permissible investment will be One gram of gold {Maximum limit’ Maximum limit of subscription shall be 4 Kg for individual, 4 Kg fo similar entities per fiscal year (Apri-March). A self-declaration to this effect will the time of making an application for subscription. The annual ceiling will includ tranches, and those purchased from the secondary market, during the fiscal and 20 Kg for trusts and d.from the investors at ed under different 9. Joint holder: In case of joint holding, the investment limit of 4 Kg will be app Issue price: Price of SGB willbe fixed in Indian Rupees on the basis of simple ig of gold of 999 purity, published by the India Bullion and Jewellers Association Lig jorking days of the week preceding the subscription period. The issue price of theSGB by Rs 50 per gram for the investors who subscribe online and pay through digital mode i. Bayment option: Payment for the SGBS will be through cash payso Graft or cheque or electronic banking |. Issuance form: SGBs will be issued as Government of Indi jovernment Securities Act, 2006 & eligible for conversion into demat form k. Redemption price: Redemption price will be in Indian Ry average of closing price of gold of 1399 punly, of previous tiree working days published by WRIA L |. Sales channel: SGBs willbe sold through Scheduled Comercial Stock Holding Corporation of India Limited (SHCIL), Clearing offices and National Stock Exchange and Bombay Stock Exchani mm. Interest rate: Fixed rate of 2.50% per annum payable semi-annually 8 Collateral SGBs can be used as collate ©. The loan-to-value. TV) ratio will be as applicable to any ordinary gold loan t SFB, RRB, Payment Banks), Limited (CCIL), designated post q Tradabllity: SGBs shall be eligipte for t © StRelbilty: SGBs acquigéd by the 5 Commission: one percent of the|total subscripttorrtéceived by the receiving offices and receiving offices shall share at least 50% of ion with the agents or sub agents for the business procured through them. Application: Subscrip de in the prescribed application form Form A. Every application feceiving Office shall issue an acknowledgment receipt in Form ‘The licensing frat in view the deve effectively meet the thorised Persons (APs) issued under FEMA was last reviewed in March 2008. Keeping / including progressive liberalisation under FEMA, over the last several years and to ging requirements of the rapidly growing Indian economy, RBI has decided decided to rationalise and simpli ensing framework for APs, This is expected to improve the efficiency in the delivery of foreign exchange facile various segments of user including common persons louis and businesses é. Expanding the Scope afi Reach of e-RUP| Vouchers: At present, purpose-specific e-RUPI digital vouchers are issued by banks. RBI has proposed to expand the scope and reach of e-RUPI vouchers by (i) permitting non-bank prepaid payment instruments (PPI) issuers to issue e-RUPI vouchers; (i) enabling issuance of e-RUPI vouchers on behalf of individuals; and (ii) simplifying the process of issuance, redemption, etc. These measures will make the benefits of e-RUPI digital voucher accessible to a wider set of users and further deepen the penetration of digital payments in the country, AK G INSTITUTE OF DISTANCE LEARNING 8 : 8700526959; 9953587375; kka.btibamallcom; www.bankerstraininainstitute.com; ‘COPYRIGHT MATERIAL "ANY Scanning, photography or Photocopy or eatribution(Whatsapp Telegram Facebook) of tis material sa legal oflence ‘under Indian Copyrights Act and TT Act andi lable for Legal Action with Bank and authorities.AKG INSTITUTE OF DISTANCE LEARNING A gurae’s M; 8595004205; 9953587375; kk, bti@amail.com; wvrw.bankerstraininginstitute.com; ‘COPYRIGHT MATERIAL ~ ANY Scanning, photography or Photocopy o distribution (Whtsap9/Telegram/Facebook) ofthis materia ie Linder indian CopyisAct and 1 Ac nd i ine Yor Lega Acton with Bank and thors ‘© Streamlining the Bharat Bil Payment System (BBPS) Processes and Membership Crteia: The Bharat Bill Payment System (BBPS) is operational since August 2017, The scope of BBPS was further expanded in December 2022. To further enhance the efficiency of the BBPS system and to encourage greater participation, RBI has proposed to streamline the process flow of transactions and membership criteria for operating units. f. Intemationalising issuance and Acceptance of RuPay Cards: RuPay Debit and Credit catds issued by banks in India are gaining increased acceptance abroad. RBI has now decided to permit issuance of RuPay Prepaid Forex cards by banks, This will expand the payment options for Indians travelling abroad. Further, cds will be enabled for issuance in foreign jurisdictions. These measures will expand the reach and acceptaf ards globally. ‘9. G20 International Conference on “Cyber Security Exercise for Banking Sector’AJu x at Mumbai on ‘June §, 2023, Governor, RBI launches ard will provid the required gers. This facility will also addressed. To measure the extent of financial inclusion, RBI had, 7 ‘and ‘Quality’ 21, Rs. 2000 Denomination Banknotes — Withdrawal from Circ) ded that, in pursuance of the “Clean Note Policy’ of RBI, Rs. 2000 denomination banknotes shall from circbjation, The Rs, 2000 banknotes will continue to be legal tender. RBI had undertaken a si 2. Handling of existing stock and receipts’ All banks shall distgntinuet 4F Rg’ 2000 denomination banknotes with immediate effect. ATMs/Gash Recyclers may also be Chests (Cs) shall ensure that no withdrawal of Rs. 2000 deno held in the CCs shall be classified as unfit and kept ready for dispatcho 6 this denomination received by the banks Dried immediately thrbugh Note Sorting Machines (NSMs) for ‘accuracy and genuineness and deposi Allowed from the CCs. All balances b. Facil it x indior exchange of Rs. 2000 banknotes shall be available for members of the public [1p t 2023. Deposit of Rs. 2000 banknotes into accounts ‘maintained with all banks can be mad ithout restrictions subject to compliance with Cash Transaction Reporting (CTR) porting (STR) requirements, where applicable. While crediting the value of Rs. In Yofia Accounts / Basic Savings Bank Deposit (BSBD) public, to ensure op sience and avoid disruption of the regular actives of bank branches, al 00 banknotes upto a limit of Rs. 4000/- per day for an account , at their discretion, enhance the cash holding limits of BCs. (v) For providing fesiding in remote! unbanked areas, banks may consider using mobile vans, ‘extent feasible make special arrangements to reduce inconvenience to je8 and women seeking to exchange/deposit Rs. 2000 notes. (vi) The shm requirement and —— af other denominations from the currency chest / RBI well in time. 22. LIBOR Transition (May\¥z/ 2023): As per “Roadmap for LIBOR Transition’ banks/F ls, inter-alia, were (|) encouraged to cease, and also encourage their customers fo cease, entering info new financial contracts that reference London Interbank Otfered Rate (LIOR) as a benchmark and instead use any widely accepted Alternative Reference Rate (ARR), latest by December 31, 2021 and (i) urged to incorporate robust fallback clauses in all financial contracts that Teference LIBOR and the maiunty of which was after the announced cessation date of the LIGOR settings. The transition away from LIBOR was also facilitated by the continuing publication of USS LIBOR settings in five tenors Which provided a longer transtion pend particularly for the insertion of the fallback clauses in legacy financial contracts that reference LIGOR_ New transactions are now predominantly undertaken u AK G INSTITUTE OF DISTANCE LEARNING - ® ‘M: 8700526959; 9953587375; kko.bti@amall;comy www.bankerstraininainstitute,com; ‘COPYRIGHT MATERIAL ~ ANY Scanning, Photography or Photocopy oF distribution (Whatsapp/ Telegram /Facabook) of ts materia ls alepal offence ‘under Indian Copyrights Act and IT Ac and sable for Legal Acton with Hank and authors.AKG INSTITUTE OF DISTANCE LEARNING * 1M: 8595004205; 9953587375; kk, bti@amal.com; wwrw,bankerstraininainstitute.com; ‘COPYRIGHT MATERIAL — ANY Scanning, photography or Photocopy or distribution (Whatsapp/Telegram/ Facebook) of this materia se ‘Snder Thin Copyright Act and IT At ad sable for Legal Action with Sonk and authorities. Secured Overnight Financing Rate (SOFR) and the Modified Mumbai Interbank Forward Outright Rate (MMIFOR), But there have been instances of a few USS LIBOR linked financial contracts undertakenlfacitated by banks/Fls after January 1, 2022. After June 30, 2023, the publication of the remaining five USS LIBOR settings will cease permanently. The MIFOR, @ domestic interest rate benchmark reliant on US$ LIBOR, will also cease to be published by Financial Benchmarks India Pvt. Ltd. (FBIL) after June 30, 2023. RBI has advised Banks/Fls to ensure that 96 fey transaction undertaken WEls to take necessary steps to ensure insertion of falbacks in all remaining legacy financial contracts th; LIBOR (including transactions that reference MIFOR) so that transition of any remaining US$ LIBR at completed well before the deadiine of end June 2023. 23, Use of International Debit Cards/Store Value Cards/Charge Cards/Sm; visit outside India & Levy of charges on forex prepaid cards/stor 2023): a. RBI has notified debit cards, ATM cards or any other instrument th ‘currency’ . International Debit Cards: Banks authorised to deal in forei Cards (IDCs) which can be used by a resident for drawing nt to @ merchant establishment overseas during his visit abroad. IDCs can be used onl count transactions and relevant limits as mentioned RBI notifications are equally applica thyough use of these cards. IDCs cannot be used on internet for purchase of prohibited item participation in sweepstakes, payment for call-back services foreign exchange is not permitted. AD banks may submit a statet saaregte forex lization by the (DC holders exceeds ISD 100,000 ndar year. gidS"AB, banks may issue Stofe Value Card/Charge Card/Smart Card hich are used for making payments at overseas merchant als. The use of such cards is limited to permissible 3nks) can issue International Debit Pecember 31, each year in case the i resons haveing on pivateust establishments and also for drawing current account transactions and subj d. The Authorised Persons shall rede yéTance futstanding in the cards immediately upon request 8$ 100, for meeting any pipeline transactions till the completion of the respective| set ction fees/service tax payable in India in Rupees. For the amounts that are authori ited by the acquirer, the issuer of such cards can hold such amounts until such ti processed settled by the acquirers within the prescribed settlement timeframe, 24. Formalisation af informal Micr®\Epteriges on Udyam Assist Platform (May 09, 2023): As pr extant guidelines, ich ate unable to get registered on the Udyam Registration Portal (URP) yents such as Permanent Account Number (PAN) or Goods and Services Tax Identification Nubb agg such enterprises are unable to avail the benefits of Government schemes or icro, Small and Medium Enterprises (‘MSME'), Government of India has launched the ) to facilitate formalisation of Informal Micro Enterprises (IMEs) through online generation Registration on the platform is done with the assistance of Designated Agencies which (including scheduled commercial banks, non-banking financial companies, etc.) Government of india, hag secified that Udyam Assist Certificate issued on the UAP to IMEs shall be treated at par with Udyam Registration Cerificate for the purpose of availing Priority Sector Lending (PSL) benefits. IMES with an Ugyam Assist Certficate shall be treated as Micro Enterprises under MSME for the purposes of PSL classification Further, the turnover of enterprises exempted from filing returns under the provisions of the Central Goods and Services Tax Act, 2017 shall be the sole criterion to be defined as IMEs for the purpose of UAP. Accordingly, IMEs are those enterprises that are not covered in the Goods and Services Tax regime. An interface has been created between the UAP and Udyam Registration Portal (URP) to enable the transition and migration of the IMEs from UAP to URP, once IMEs obtain the mandatorily required documents, Udyam Assist Platt of Udyam Assist Cet are RBI regulated AKG INSTITUTE OF DISTANCE LEARNING 10 M: 8700526959; 9953587375; kko.bti@amail.com; vwvow,bonkeratraininainstitute,com: ‘COPYRIGHT MATERIAL ANY Scanning, photography or Photocopy or distribution (Whatsapo/Telegram/ Facebook) of his material sa legal offence ‘under Indian Copyrights Act and IT Ac and is lable for Legal Acton with Bank and authors.AKG INSTITUTE OF DISTANCE LEARNING — A urans 'M: 8595004205; 9953587375; kko.bti@amallcom; www.bankerstraininginstitute.com; ‘COPYRIGHT MATERIAL - ANY Scanning, photography or Photocopy or distribution (Whatsapp/Telegram Facebook) ofthis materials ‘under Taian Copyrights Act and TT Act nd is Hable for Legal Acton with Bank and authorities. 25, Amendment to the Master Direction (MD) on KYC - Instructions on Wire Transfer (May 4, 2023) a. All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary information like a. name of the originator; b. the originator account number where such an account is used to process the transaction; c, the originator’s address, or national identity number. or customer identification ‘number, or date and place of birth; d. name of the beneficiary; and e. the benefic ‘an account is used to process the transaction, b. Domestic wire transfer, where the originator is an account holder of the or ‘originator and beneficiary information, as indicated for cross-border wire rupees fifty thousand and above, where the originator is not an account accompanied by originator and beneficiary information as indicated transfer instructions does not cover the following types of payments: 9 carried out using a credit card / debit card / Prepaid Payment Instul purchase of goods or services, so long as the credit or debit card accompanies all transfers flowing from the transaction. However, payment system to effect a person-to-person wire transfer, fransactions and the necessary information should be it financial institution transfers and settlements, where botp regulated financial institutions acting on their own behal © Responsibilities of ordering RE: (a) The ordering RE Wire transfers contain required and accurate originator Customer Identification shall be made if a customer, who accompanied by transfers of all also be The wire transaction g through a token, for the identity and if the same transaction shall not execute the wire transfer if it ment of a chain of wire transfers shall ensure that all {transfer is retained with the transfer. (b) Where 4. Intermediary RE: (a) RE processing originator and beneficiary informatiog transfer from remaining with a related or ¢ intermediary RE shall keep a record, for at least financial institution or another intermediary RE. (c) tify cross border wire transfers that lack required ‘Such measures should be consistent with straight- through processing. (4) Interinedlary RE shall fective risk-based policies and procedures for determining, (a) when to execute suspend a wire transfer lacking required originator or required beneficiary UB including seeking further information and if the transaction is found to be suspiciots et écordance with the PML Rules. Beneficiary RE: (a) Beheficia sasonable measures, including post-event monitoring or real-time ‘monitoring where feasible” ‘cross border wire transfers and qualifying domestic wire transfers that lack ed beneficiary information. (b) Beneficiary RE shall have effective risk- ary information; and (b) the appropriate follow-up action follow-up action athe tensa found to Be suapiious reporting to FIND. iG ete taet oy aioe onan kt te been ie ee fully responsible for information, reporting and other requirements and therefore shall (there is u 3d flow of complete wire transfer information, from and through the unregulated entities arrangement, if any, with such unregulated entities by REs clearly stipulates the obligations under wire transfer instructions; and REs' responsibilty to fulfil record management requirements: Complete originator and beneficiary information relating to wire transfers shall be preserved by the REs involved in the wire transfer, as per rules in force. 26. Reserve Bank launches ‘100 Days 100 Pays’ Campaign for Return of Unclaimed Deposits (May 12, 2023) Balances in savings / curent accounts which are not operated for 10 years, or term deposits not claimed within 10 — ‘AKG INSTITUTE OF DISTANCE LEARNING ” ‘M: 8700526959; 9953587375; kka.bti@amail.com; www, bankerstraininginstitute,com; ‘corynscrrMaresuat~ sn Scr tography or Patsy af dusrton (Whatape/ laser Faaboe of mater i ga fence ‘dr Inn Copyrights At an Act tale or Lap! Acton wth Br nd utero_AKG INSTITUTE OF DISTANCE LEARNING ‘dare ‘M: 8595004205; 9953587375; kka.bti@amall.com; www. bankerstraininginstitute.com; ‘COPYRIGHT MATERIAL ANY Scanning, photography or Photocopy or estibution (Whatsapp/Telapram/Facebook) ofthis materi Is ‘Sndortadian Copyrights Act ee FT Act nd sable for Legal Action with Bank and authors. 27. 28. 29, 30. years from date of maturity are classified as “Unclaimed Deposits”. These amounts are transferred by banks to “Depositor Education and Awareness" (DEA) Fund maintained by RBI. RBI, from time to time, through its public awareness initiatives, has been encouraging members of public to identify and approach the bank concemed for claiming such deposits. Recently, RBI has also announced the setting up of a Centralised Web portal for public to search unclaimed deposits across multiple banks. RBI has now announced a ‘100 Days 100 Pays’ campaign for banks to trace and settle the top 100 unclaimed deposits of every bank in every district sf the country within 100 days. ‘campaign from June 01, 2023, RBI in collaboration with the GFIN invites firms to participate in Gi will be among 13 international regulators taking part in the Global Fina Greenwashing TechSprint. GFIN is a group of over 80 international orggnisafion innovation in the interest of consumers and itis currently chaired by the Financial Cohuct will be to develop a too! or solution that can help regulators and the effectively tacks in financial services. Monetary & Credit Policy ~ April 2023 (Apr 06, 2023) a. Policy repo rate unchanged at 6.50%; Standing deposit marginal standing facility (MSF) rate and the Bank withdrawal of accommodation to ensure that inflation pro Developing an Onshore Non-deliverable Derivative Markel ith JFSC Banking Units (IBUs) were earlier permitted to transact in Indian Rupee (INR) non- exchange derivative contracts (NDDCs) with non-residents and with other eligible banks having as proposed to permit banks with IBUs to offer NODCs involving INR to resident users in the onsho! market in india and provide enhanced flexiblty f7Tesidents in meeting ther hedging requirements. nhancing Efficiency of Requlatory Proo 1, the processes for entities to make applications seeking license / authorisation or regulatory ap place in both online and off-line modes. To simplify and streamline such processes, RBI secured web based centralised portal named as ‘PRAVAAH (Platform for Regulatory Li Authorisation) for such processes. The portal will ht. This measure will bring greater efficiencies into d to supporting financial jority. The TechSprint ks of greenwashing unchanged at 6.25%; and the Wecided to remain focused on 4 Under the purview of Reserhe ank Integratee-Omibudsman Scheme (RB-10S). RBI has proposed following ‘measures: () a compgnsatidn mechanism for delayed updationiectfication of credit information reports; (i) 3 ever their credit information reports are accessed, (i) @ ad by Ofes trom Credit Insitutions; and (Ww) disclosures on customer ° reli Lines at Banks through the UPI: Unified Payments Interface (UPI) has RuPay credit cards were perritied to be linked to UPI. This isin addition to P?deposit accounts. REI has now proposed to expand the scope of UPI by permitindone: éredi lines at banks through the UPI. Reviow of ntof Cyclical Capital Butfer(Apr 20, 2023): The framework on countercyclcal capital butter (COyB) Was pdt in place by RBI in 2015. Accordingly, CCyB would be activated es and when the circumstances wartanted, And that the decision would normally be pre-announced. The framework envisages the Credit-to-GDP gap a theAmain indicator, which may be used in conjunction with other supplementary indicators. Based on the review nd ynpirical analysis of the CCyB indicators, RBI has decided that it is not necessary to activate CCy8 at this polgt time, ‘Amendment to the Master Direction (MD) on KYC (April 28, 2023) ‘2. Beneficial Owner (BO): (a) Where the customer is a company, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical persons, has ownership offentitiement to more than 10% of the shares or capital or profits of the company (earlier it was 25%); (b) Where the customer is @ partnership firm, the beneficial owner is the natural person(s), who, whether acting alone or together, or through ‘one or more juridical person, has/have ownership ofientitiement to more than 15% of capital or profits of the AKG INSTITUTE OF DISTANCE LEARNING = 2 M: 8700526959; 9953587375; kka.bti@amail.com; i ‘woew,bankerstraininginstitute.com; ‘COPYRIGHT MATERIAL ~ANY Scanning, photography or Photacopy or dstrbution (Whatsapp/‘elegram Facebook) of this materia is legal offence tinder Inan Copyrights Act and TY Act and le able for Legel Action with Bank and authorities._ AKG INSTITUTE OF DISTANCE LEARNING ¥M: 8595004205; 9953587375; kks.bti@amall.com; wow bankerstraininainstitute com: ‘COPYRIGHT MATERIAL - ANY Scanning, photography or Photocopy or sstribution (Whatsapp/Telegram/Facebook) ofthis materia i {ina tnn Coprghts Act and TY Act ands ible fr Lepl Action wth Bank and authorves. partnership; (c) Where the customer is an unincorporated association or body of individuals, the beneficial owner is the natural person(s), who, whether acting alone or together, or through one or more juridical person, has/have ownership offentitlement to more than 15 percent of the property or capital or profits of the unincorporated association or body of individuals; (4) Where the customer is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with 10% (earlier 15%) or more interest in the trust and any other natural person exerci cchain of control or ownership. ‘a5 mentioned in Income-tax Act, that is registered as a trust or a society 1860 or a company registered under Section 8 of the Companies Act, 201: 4 Cofrespondent Banking: Correspondent banking is the provision “correspondent bank”) fo another bank (the “respondent bank’), 2 range of services, including cash management (e.g., inter intemational wire transfers, cheque clearing, payable-throug ign exchange services. Shell Bank" means a bank that has no physical presenes itis incorporated and licensed land which is unaffliated with a regulated financial g effebtive consolidated supervision, Physical presence means meaningful mind and manag local agent or low-level staff does not constitute physical p £. ‘Mideo based Customer Identification Process (V-CIP)" 44 oeustomer identification with facial information furishéd by the customer through independent Verification and maintaining audit tail of ich processes complying with prescribed standards and procedures shall be treated on par wit Designated Director: (a) A “Designafed rson designated by the RE to ensure overall ‘compliance with the obligations im; of fhe PML Act and the Rules and shall be nominated by the Board. (b) The name, designation esignated Director shall be communicated to the FIU-IND; (c), The name, des) details of the Designated Director shall also be > shall be nominated as the ‘Designated Director. and sharing and reporting iffor Tnder the lawireguiations. (b) The name, designation and address of the Princ all be communicated to the FIU-IND. (c) Further, the name, designation, address and contac > ‘specified in the ‘is obtained with the explicit consent of the customer; (b) Where Goods and Services details are available, the GST number shall be verified from the authority; (c) Where RE forms a suspicion of money laundering or terrorist Zastomer registered with Aadnaar. REs shall have a board approved policy delineating a Yligence for dealing with requests for change of mobile number in such accounts. firms (a) For opening an account in the name of a sole proprietary firm, CDD Of the individual (prapyjétor) shall be carried out In addition to the above, any two of the following documents or the equivalent e-doctiMents there of as a proof of business! activity in the name of the proprietary firm shall also be obtained: (In addition to list of documents already prescribed one more document has been added Registration certificate including Udyam Registration Certificate (URC) issued by the Government) |. Non Profit organisations: REs shall ensure that in case of customers who are non-profit organisations, the details ‘of such customers are registered on the DARPAN Portal of NIT| Aayog. if the same are not registered, RE shall register the details on the DARPAN Portal. RES shall also maintain such registration records for a period of five AK G INSTITUTE OF DISTANCE LEARNING 2 ‘M: 8700526959; 9953587375; kka,btiamallcom; werw,bankerstraininsinstitute,com; (COPYRIGHT MATERIAL - ANY Scanning, photography er Photocopy or distribution (Whatsapp/Telegram/Focabook) of ths materia ls legal offence under Indian Copyrights Actand TT Act ands abe or Legal Action with Bank and authors.AKG INSTITUTE OF DISTANCE LEARNING _ 8595004205; 9953587375; kktibamal.om wor hankestraninainstite com ‘COPYRIGHT MATERIAL - ANY Scanning, photography or Photocopy or distribution (Whatsapp/Telegram/Facebook) ofthis materia ae under Indian Copyrights Act and TT Ac nd is hable fr Legal Acton with Bank and authorities. years after the business relationship between the customer and the RE has ended or the account has been Closed, whichever is later. 31, Remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Schemo {LRS) (April 26, 2023): To align the LRS for IFSCs set up under the Intemational Financial Services Centres Authority Act, 2018 vis-4-vis other foreign jurisdictions, RBI has decided as under: "Resident/Andijduals may also open a Foreign Currency Account (FCA) in IFSCs, for making the above permissible inves ‘condition of repatriating any funds lying idle in the account for a period up to 15 fa te of its receipt is withdrawn with immediate effect 32, General Credit Card (GCC) Facility(April 25, 2023) a The GCC Scheme shall henceforth be called "General Credit Card (Gi b.Individuals/entities sanctioned working capital facilties for non-farm ities which are eligible for Classification under the priority sector guidelines, may be issued Genera Credit C2 GCC shall be issued in the form of a credit card conforming to fb Direction on Credit Card 4. The terms and conditions of the credit facilities extended i 8 per Board approved policies of the banks, within the overall framework laid down by Resé @. These instructions supersede the GCC guidelines issue Debit cards, already issued under the circular of 2013, , ir epirylrepayment of the existing credit facilities, whichever is earier. 33, Authorised Dealers Category.tI - Online submission of Form “Compilation of R-Retums: Reporting under FETERS’, AD Category | balks, offéring internet banking faciities to their customers are permitted to allow online sub of Form A2. Now, RBVhas decided to permit AD Category-I| entities also to allow online submission of Fog most critical challenges faced by the globbl sdciety my Jn the 21st century. The financial sector can play @ pivotal role in mobilizing resources and their agcation b reen activities/projects. Deposits constitute a major source for mobilizing of funds by )/'Some REs are already offering green deposits for financing green activities and pra ecosystem in the country, RBI has decided to put in place the Framework for ac fe REs. The framework shall come into effect from June 4, 2023. a. Purpose/Rationale: To,encoukagelcequiated entities (REs) to offer green deposits to customers, protect interest of the depositors, aid gdstomerg to achieve stainabilty agenda, address greenwashing concems and help ‘augment the flow ofocecit fxg itlesiprojécts. b. Applicability: Applicabl Banks and Payments Bar with RBI including Housing Fi reen activties/projects” means inks including Small Finance Banks (excluding RRB, Local Area b) All Deposit taking Non-Banking Financial Companies (NBFCs) registered ties/projects meeting the requirements given in table below; ring deposit, received by the RE for a fixed period and the proceeds of ted towards green finance ‘and/or investing in the activities/projects meeting the requirements given in s to climate risk mitigation, climate adaptation and resilience, and other climate-related - including biodiversity management and nature-based solutions; “Greenwashing” the practice of marketing products/services as green, when in fact they do not meet requirements to b ‘as green activities/projects, ination, it ‘and tenor of deposits: REs shall issue green deposits as cumulative/non-cumulative deposits. On maturity, the green deposits would be renewed or withdrawn at the option of the depositor. The ‘green deposits shall be denominated in Indian Rupees only. The tenor, size, interest rate and other terms and ‘conditions as prescribed by RBI for other deposits shall also be applicable to green deposits. h. Policy: REs shall have a Board-approved policy on green deposits, i. Einancing Framework: REs shall have a Financing Framework (FF) for effective allocation of green deposits covering, (i) eligible green activities/projects that could be financed out of proceeds raised through the green deposits: (i) the process for project evaluation and selection by the RE (ie., climate-related or environmental table below AKG INSTITUTE OF DISTANCE LEARNING “ 1M: 8700526959; 9953587375; kis, bti@amallcom; wurw,bankerstraininainstitute,com; ‘COPYRIGHT MATERIAL ~ ANY Scanning. photography or Photocopy or dtibuton(Whatsapp/Telegram/Facebook) of ths materia is legal offence ‘under Indian Copyrights Act and IT Act and sable for Legal Acton with Bank and authorities.| ‘AKG INSTITUTE OF DISTANCE LEARNING 'M: 8595004205; 9953587375; kk, bti@amall;com; www.bankerstraininainsttute.com; ‘COPYRIGHT MATERIAL — ANY Scanning, photography or Photocopy or distribution (Whtsapp/ Telegram/ Facebook) ofthis material i ‘dor Inn Copyrights Act nd Act and ale for egal Aion with Banka nuhorcen. objectives) including identifying the projects fit for lendinginvesting within the eligible categories. monitoring and validating the sustainability information provided by the borrower, (ii) the allocation of proceeds of green deposits and its reporting, third-party verifcation/assurance of the allocation of proceeds and the impact assessment, and (iv) particulars of the temporary allocation (which would only be in liquid instruments up to a maximum original tenure of one year) of green deposit proceeds, pending their allocation to the eligibje actvities/projects. The RE shall arrange to carry out an extemal review of their FF and the opinion from the exténtal reviewer shall be placed Conits website before implementation of the FF. i. Use of proceeds: The allocation of proceeds raised from green deposits st deposits towards the following list of green activties/projects which er utilisation, reduce carbon emissions and greenhouse gases, promote value and improve natural ecosystems and biodiversity. List of green Management; Pollution Prevention and Control; Green Buildings: Resources and Land Use; Terrestrial and Aquatic Biodiversity C k. Third-Party Verification/Assurance and Impact Assessment: T} the end-use of funds. Third-Party Veriication/Assurapée inimum, cover the following above. The REs shall monitor the end-use of funds allocated against the deposits raised fs and AhteyAal Controls including, inter-alia, Project evaluation and selection, management of proceed) provided by the borrower to the REs and Reporting and Disclosure: ‘shall annually assess the Impact associated with the funds lent for @Ngveg(ed in green finance activiies/projects through an Impact Assessment Report. In ca are unable to quantf the impact oftheir lending/investment, tered, and the time-bound future plans to address the ‘same. For Financial year 2023-24 it wi ‘an impact assessment from the fina |. Reporting and Disclosures: A report the financial year which shall, inter-ali the previous financial year; (b), brief description of the proj 0 d the eligible green activities/projects; (d) a copy of the Third-Party. VerificatioAssiran ict Assessment Report REs shall make appropriate before its Board within three months of the end of ils: (a) amount raised under green deposits during deposit funds, 35. Deendayal Antyodaya a. Revolving Fund: DAY- !oRD, will provide Revolving Fund (RF) as corpus ranging between Rs 20,000 - Rs 30,000 per SHG. ’s_3 lakh, banks will extend credit at 7% per annum. For outstanding Jbvented at a uniform rate of 4.5% per annum during FY 2023-24. For lakh, banks will extend credit at their 1 year-MCLR or any other external per annum, whichever is lower. For outstanding credit balance above Rs 3 le only for the period during which an account remains in standard category. The fme shall be implemented for banks through a Nodal Bank. For the year 2023-24, Indian (i) Banks may extend loans up to Rs 10 lakh to individual members of select, ‘matured well performtg SHGs (SHGs which are more than 2 years old and have accessed at least one dose of bbank loan with timely repayment). The individual should be running a viable economic enterprise; (i) One woman in every SHG under DAY-NRLM may be provided a loan up to Rs 1 lakh under the MUDRA Scheme, if she is otherwise eligible; (i) Banks may provide minimum OD facility of Rs 5000 to every woman SHG member having PMJDY account. Banks may regularly share data on OD limit to women SHGs' members with DAY-NRLM. “AK G INSTITUTE OF DISTANCE LEARNING 6 \M: 8700526959; 9953587375; kko,hti@amallcom; wonw.bankerstraininainstitute.com: ‘COPYRIGHT MATERIAL ANY Scanning, photography or Photocopy or dsibution (Whatsapp/Telegram/Facebook) of Eis material Isa lgaloftence ‘under Lncan Copyrights Act and 1 Act and able for Legal Acton with dank and authorities.AK G INSTITUTE OF DISTANCE LEARNING — naan ‘M: 8595004205; 9953587375; ka. bti@amall.com; woww.bankerstraininainstitute.com; COPYRIGHT MATERIAL ~ ANY Scanning, photography or Photocopy or dstrbution (Whatsapp/Telegram Facebook) of this materia sg {Under Indian Copyrights Act aed TT Act nd is able for Legal Action with Bank and 36. APConnect - Online application for Full Fledged Money Changers and non-bank Authorised Dealers 2. 38, Category-lI (April 06, 2023): RBI has developed a software application called “APConnect’ for processing of application for licencing of FFMC, non-bank AD Cat-ll, authorisation as MTSS Agent, renewal of existing licence / authorisation, for seeking approval as per the extant instructions and for submission of various statementsiretums by FFMCs and non-bank AD Cat Il ‘Master Direction on Outsourcing of Information Technology Services (Apri 10, have been extensively leveraging Information Technology (IT) and IT enabled/® business models, products and services offered to their customers. RES also oup Peguiated Entities (REs) to support their partion of their IT s, RBI has Issued regulatory guidelines on Outsourcing of IT Services. The Direction; October 1, 2023 ‘a. Applicability: Commercial Banks, Primary Co-operative Banks, No “Top Layer’ ‘Upper Layer’ and ‘Middle Layer, Credit information Cor National Housing Bank (‘NHB’) and SIDBI’ ». "Material Outsourcing of IT Services” are those which: if dis significantly impact the RE’s business operations; or may, event of any unauthorised access, loss or theft of custom © "Outsourcing of IT Services” shall include outsourcing maintenance and support (hardware, software or fifty (hardware, software or firmware); Application Developy Testing; Application Service Providers (ASPs) including ATM Switch ASPs; Services a ated to Data Centres; Cloud Computing Services; Managed Security Services; and Manager Astructure and technology services associated with payment system ecosystem. Companies included in NABARD’, ‘NaBFID’, /e the potential to E's customers in the IT infrastructure management, urity solutions, maintenance 4. “Service Provider’ means the provider of [ ynabled services inching entities related to the RE or those which belong to the same group to whi © Regulatory and Supervisory requirem any activity shall not diminish RE’s obligations. RES shall not engage an IT service provid putation of RE being compromised or weakened Impany, shall not be owned or controlled by any durcing arrangement of the RE, or their relatives. wdant risks: REs shall evaluate the need for commensurate processes to 9. Concentration Risk: REs shal service provider and/gy the tration risk posed by outsourcing critical or material functions to a limited Plan: REs shall require their service providers to develop and ‘maintaining and testing Business Continuity Plan (BCP) and jgensurate with the nature and scope of the outsourced activity ement of a service provider based in a different jurisdiction exposes the RE RE shall closely monitor government policies of the jurisdiction in which ‘political, social, economic and legal conditions on a continuous basis, as Usage of Cloud Gompl¥ing Services: in engaging cloud services, RES shall ensure, that the Outsourcing of IT Serves policy addtesges the entre ifecycle of data |e, covering the entire span of time from generation of the data, its entry into the*coud, til the data is permanently erased deleted 1 Outsourcing of Security Operations Centre: Outsourcing of Security Operations Centre (SOC) operations has the Sak of data-being stored and processed at an external ocation and managed by a third party (Managed Securty Service Provider (MSSP)) to which RES have lesser visibility Governor, RBI lays the Foundation Stone of a ‘New Greenfield Data Centro’ and ‘Enterprise Computing & Cybersecurity Training Institute’ of RBI (Mar 22, 2023): Shri Shaktikanta Das, Governor, Reserve Bank of Ind AKG INSTITUTE OF DISTANCE LEARNING 16 ‘M: 8700526959; 9953587375; kka.bti@amail.cony vewow.bonkerstraininaingtituts.com; COPYRIGHT MATERIAL ANY Scanning, photography or Potacopy Or sstrtion (Watsapp/ Telegram /Facebook) ofthis material sa legal offence ‘Snder Indian Copyrights Act and IT Act and ie Hable fr Legal Action with Bank and authorities.