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RBI Guidelines – Circulars October 2013

RBI Circulars

[These guidelines are being given only as a gist so that bankers get an overall view of recent changes and can prepare for internal promotion exams.   However, in case, you are dealing with the subject for taking decisions in Bank policies, you must refer to original and full version of the circulars]

 

Date

Head

RBI Guidelines

01-October-2013 Export Outstanding Statement (XOS)
Online Bank wide Submission
Present Guidelines :  At present banks are required to furnish to the Regional Office concerned of the Reserve Bank, a consolidated statement in Form XOS giving details of all export bills outstanding beyond six months from the date of export on a half yearly basis as at the end of June and December every year.

 

Revised Guidelines :  It has been decided that with effect from the half year ending December 2013, XOS submission should be made online and Bank-wide instead of the present system of branch-wise submission through the respective Regional Offices of Reserve Bank of India.

07-October-2013 Marginal Standing Facility  It has been decided to reduce the Marginal Standing Facility (MSF) rate by 50 basis points from 9.50 per cent to 9.00 per cent with immediate effect
07-October-2013 Bank Rate Bank Rate stands adjusted by 50 basis points from 9.5 per cent to 9.0 per cent with effect from October 07, 2013.
08-October-2013 Term Repo under Liquidity Adjustment Facility It has been decided to conduct auctions for term repos of 7-day and 14-day tenor for a notified amount equivalent to 0.25 per cent of net demand and time liabilities (NDTL) of the banking system through variable rate auction mechanism.
10-October-2013 Distribution of Banknotes and Coins – Alternative Avenues In September 2013, with a view to effectively meeting the growing demand for banknotes and coins in the country, RBI had advised Banks to explore the possibility of enlisting the services of BCs for carrying out the various currency management functions.

 

Now Banks are advised to explore the possibility of engaging the services of Cash in Transit (CIT) entities also for the purpose of distribution of banknotes and coins

10-October-2013 Overseas Foreign Currency Borrowings by Authorised Dealer Banks Present Guidelines : At present banks are allowed to borrow funds from their Head Office, overseas branches and correspondents and avail overdraft in the nostro accounts up to a limit of hundred per cent of their unimpaired Tier I capital as at the close of the previous quarter or USD 10 million (or its equivalent), whichever is higher (excluding borrowings for financing of export credit in foreign currency and capital instruments).

 

Revised Guidelines : Now authorised dealers are allowed to borrow from their Head Office or overseas branches or correspondents outside India or any other entity as permitted by Reserve Bank up to hundred per cent of its unimpaired Tier I capital or USD 10 million, whichever is higher,

 

Accordingly, permission is hereby granted to AD Category I banks to borrow from international / multilateral financial institutions for a limited period up to November 30, 2013.  Such borrowings should be for the purpose of general banking business and not for capital augmentation

Further, such borrowings shall be eligible for the concessional swap facility of RBI

11-October-2013 Launch of new RTGS System The new RTGS system will be operationalized  from 19th  October 2013 and the “RTGS System Regulations 2013” would come into effect from this date. Hence, the extant RTGS System will no longer be operational. Accordingly, the RTGS (Membership) Business Operating Guidelines, 2004 and RTGS (Membership) Regulations, 2004 would cease to exist.   The new RTGS system conforms to ISO 20022 messaging standard.

 

14-October-2013 Closing of Old Outstanding Bills:
Export-Follow-up –XOS Statements
On a review, it has been decided that an old export bill may be closed by AD banks as a one time measure, provided that the case is not subject matter of any pending civil suit /criminal suit ; the exporter has not come to the adverse notice of the Directorate of Enforcement (DoE) / Central Bureau of Investigation (CBI)/Directorate of Revenue Intelligence (DRI) /any such other law enforcement agency; has no externalisation problems with the export receipient countries and the export bill falls under following categories:

  1.       i.        With ceiling of USD 1, 00,000 and outstanding beyond 15 years as on December 31,2012
  2.      ii.        With ceiling of USD 50,000 and outstanding for more than 5 years as on December 31, 2012, where customers not traceable subject to proof of non traceability from competent authority and under bank’s internal boards approved policy.

 

17-October-2013 Change of Name of SME Rating Agency of India Limited to 
SMERA Ratings Limited (SMERA)
 M/s. SME Rating Agency of India Limited has been accredited for the purpose of risk weighting the banks’ claims for capital adequacy purposes along with other credit rating agencies (CRAs). The agency has now changed its name to SMERA Ratings Limite
21-October-2013 Section 23 of the Banking Regulation Act, 1949 – 
Relaxations in Branch Authorisation Policy
Link for Full circular
21-October-2013 Settlement of Claims in respect of Missing Persons in Uttarakhand Disaster banks are advised to settle the claims in respect of missing persons, covered by MHA Circular, without insisting on production of any documentation other than (i) the ‘Death Certificate’ issued by the Designated Officer under MHA Circular and (ii) letter of indemnity.
25-October-2013 Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of PSOs under Prevention of Money Laundering Act (PMLA), 2002 – e-KYC Service of UIDAI – Recognizing on-line Aadhaar authentication (electronic verification process) to be accepted as an ‘Officially Valid Document’ under PML Rules In order to reduce the risk of identity fraud, document forgery and have paperless KYC verification, UIDAI has launched its e-KYC services. Accordingly, it has been decided to accept e-KYC service as a valid process for KYC verification under Prevention of Money Laundering (Maintenance of Records) Rules, 2005. Further, the information containing demographic details and photographs made available from UIDAI as a result of e-KYC process (“which is in an electronic form and accessible so as to be usable for a subsequent reference”) may be treated as an ‘Officially Valid Document’ under PML Rules. In this connection, it is advised that while using e-KYC service of UIDAI, the individual user has to authorize the UIDAI, by explicit consent, to release her or his identity/address through biometric authentication to the Payment System Operators (PSOs). The UIDAI then transfers the data of the individual comprising name, age, gender and photograph of the individual, electronically to the PSOs, which may be accepted as valid process for KYC verification.
29-October-2013 Liquidity Adjustment Facility – Repo and Reverse Repo Rates it has been decided to increase the Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 7.50 per cent to 7.75 per cent with immediate effect.

2. Consequent to the change in the Repo rate, the Reverse Repo rate under the LAF will stand automatically adjusted to 6.75 per cent with immediate effect.

 

29-October-2013 Marginal Standing Facility Rates it has been decided to reduce the Marginal Standing Facility (MSF) rate by 25 basis points from 9.00 percent to 8.75 per cent with immediate effect.
29-October-2013 Term Repo under Liquidity Adjustment Facility it has been decided to increase the quantum of liquidity to be provided through term repos of 7-day and 14-day tenor from the existing 0.25 per cent to 0.50 per cent of net demand and time liabilities (NDTL) of the banking system with immediate effect.
29-October-2013 Bank Rate the Bank Rate stands adjusted by 25 basis points from 9.0 per cent to 8.75 per cent with effect from October 29, 2013.
31-October-2013 Marginal Standing Facility-Revision in timings It has been decided to revise the timings of Marginal Standing Facility (MSF). The MSF will now be available between 7.00 pm and 7.30 pm instead of the existing timings of 4.45 pm to 5.15 pm. The change in timings will take effect from November 5, 2013.