Complete Reading

Shri. M. Nagaraju, Secretary, Department of Financial Services (DFS) chaired a meeting today at Manthan, DFS to discuss the revamp of the Central KYC Records Registry (CKYCR) and key issues related to Know Your Customer (KYC) compliance with the objective of making life of citizen comfortable while availing Financial Services. The meeting included senior officials from concerned Ministries/Departments, financial sector regulators, financial institutions, and other stakeholder

Senior officials from the Department of Financial Services (DFS), Ministry of Finance, CERT-In, RBI, IRDAI and NPCI attended the meeting that focused on reviewing the banking sector's operational and cybersecurity preparedness, including digital applications such as internet banking and UPI.

The Data Quality Index (DQI) is a comprehensive metric that evaluates the accuracy, completeness, consistency, and timeliness of data within an organization. For financial institutions, including NBFCs, banks, and other financial entities, maintaining high data quality is crucial for regulatory compliance, risk assessment, and operational efficiency.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is a critical legislation that empowers financial institutions to recover defaulted loans efficiently without court intervention.

Shri T. Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI), inaugurated the new office of the Reserve Bank in Vijayawada, Andhra Pradesh.

RBI has sanctioned the Scheme of Amalgamation of The Dhinoj Nagrik Sahakari Bank Ltd., Dhinoj, Gujarat with Akhand Anand Co-operative Bank Ltd., Surat, Gujarat.

However, on the basis of Reserve Bank’s supervisory assessment, it is observed that in a large number of deposit accounts, nomination is not available. To avoid inconvenience and undue hardship to survivors/ family members of deceased depositors, we reiterate the need to obtain nomination

Undertake transactional / service calls only using ‘1600xx’ numbering series, when operationalized; undertake promotional voice calls only through phone numbers using ‘140xx’ numbering series;

credit balance in any deposit account maintained with banks, which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, as mentioned in paragraph 3(iii) of the “Depositor Education and Awareness” (DEA) Fund Scheme, 2014, are required to be transferred by banks to DEA Fund maintained by the Reserve Bank of India. There is a need to enable Business Correspondents to facilitate updation of KYC.

Reserve Bank had issued Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016 (hereinafter referred to as Master Direction) in compliance of the provisions of the PML Act, 2002 and the Rules made thereunder. There is a need to further amend the same in order to enhance consumer protection and service.

In terms of Indian Accounting Standard (Ind AS) 116 - Leases, most leases will be reflected on a lessee's balance sheet as an obligation to make lease payments (a liability) and a related ROU asset (an asset). We have received references from various NBFCs (in their capacity as lessees) on the treatment of ROU assets for calculation of regulatory capital/ Owned Fund.

It has now been decided to operationalise the ‘. bank.in’ domain for banks through the Institute for Development and Research in Banking Technology (IDRBT), which has been authorised by National Internet Exchange of India (NIXI), under the aegis of the Ministry of Electronics and Information Technology (MeitY),

Reserve Bank is statutorily mandated to operate the credit system of the country to its advantage. In this endeavour, Reserve Bank encourages innovation in the financial systems, products and credit delivery methods while ensuring orderly growth, financial stability and protection of depositors’ and borrowers’ interest.

RE shall obtain the necessary information relating to economic profile of the borrower with a view to assessing the borrower’s creditworthiness before extending any loan, including, at a minimum, age, occupation and income details. The same shall be kept on record for audit purposes.

The borrower shall be provided with an option to give or deny consent for use of specific data, restrict disclosure to third parties, data retention, revoke consent already granted to collect personal data and if required, make the RE/LSP delete/ forget the data.

Extension of structured digital lending products by RE and/or LSPs engaged by RE over a merchant platform involving short term, unsecured/ secured credits or deferred payments, need to be reported to CICs by the RE. RE shall ensure that LSPs, if any, associated with such deferred payment credit products shall abide by the extant outsourcing guidelines issued by the Reserve Bank and be guided by these Directions.

RE may enter into DLG arrangements only with a LSP/ other RE engaged as a LSP. Further, the LSP providing DLG shall be incorporated as a company under the Companies Act, 2013.

EMI programmes on Credit Card are governed specifically by Para 6(b)(iii)12 of the Master Direction on Credit Card and Debit Card – Issuance and Conduct, 2022 dated April 21, 2022. Such transactions shall not be covered under these Directions. However other loan products offered on Credit Cards which are not covered/ envisaged under the aforesaid para of the Master Direction shall be governed by the stipulations laid down under these Directions. Further, these Directions sha

In terms of para 2.1 of circular DOR (PCB).BPD.Cir No.10/13.05.000/2019-20 dated March 13, 2020 on ‘Limits on exposure to single and group borrowers/parties and large exposures and Revision in the target for priority sector lending – UCBs’, the prudential exposure limits for UCBs for a single borrower/party and a group of connected borrowers/parties are specified as 15 per cent and 25 per cent, respectively, of their tier-I capital.

Please refer to paragraph 8.1 of the Master Direction - Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022 dated March 14, 2022 which prescribes Qualifying Assets Criteria for Non-Banking Financial Companies - Microfinance Institutions.