Monetary Policy Statement, 2021-22 Resolution of the Monetary Policy Committee (MPC) December 6-8, 2021

RELEVANT EXTRACT  On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 8, 2021) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent.

Reserve Bank of India retains the Advisory Committee of Reliance Capital Ltd

RELEVANT EXTRACT  It may be recalled that, in exercise of powers conferred under Section 45-IE (5) (a) of the RBI Act, 1934, the Reserve Bank had, on November 30, 2021, constituted a three-member Advisory Committee to assist Shri Nageswara Rao Y, Administrator of Reliance Capital Ltd

Application for initiation of Corporate Insolvency Resolution Process (CIRP) against Reliance Capital Ltd. filed under the Insolvency and Bankruptcy Code, 2016

RELEVANT EXTRACT  The Reserve Bank has today (December 02, 2021) filed an application for initiation of CIRP against Reliance Capital Ltd., under Section 227 read with clause (zk) of sub-section (2) of Section 239 of the Insolvency and Bankruptcy Code (IBC), 2016 read with Rules 5

Recommendations of the Internal Working Group to Review Extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks

RELEVANT EXTRACT  An Internal Working Group (IWG) was constituted by Reserve Bank on June 12, 2020 to review the extant guidelines on ownership and corporate structure for Indian private sector banks. The report submitted by the IWG was placed on the RBI website on November 20, 2020 inviting comments of stakeholders

RBI imposes Monetary Penalty on two Payment System Operators

RELEVANT EXTRACT  The Reserve Bank of India (RBI) has imposed monetary penalty on the following authorised Payment System Operators (PSOs) for committing offences of the nature referred to in Section 26(6) of the Payment and Settlement Systems Act, 2007 (PSS Act). Sr. No. Name of

Caution against various Co-operative societies using the word “Bank” in their names

RELEVANT EXTRACT  The Banking Regulation Act, 1949 (BR Act, 1949) was amended by the Banking Regulation (Amendment) Act, 2020 (Act 39 of 2020) which came into force on September 29, 2020. Accordingly, co-operative societies cannot use the words “bank", "banker" or "banking" as part of

RBI releases the Report of the Working Group on digital lending including lending through online platforms and mobile apps

RELEVANT EXTRACT  The Reserve Bank of India had constituted a Working Group (WG) on digital lending including lending through online platforms and mobile apps on January 13, 2021, with Shri Jayant Kumar Dash, Executive Director, RBI as the Chairman. The WG was set up in

Payments Infrastructure Development Fund (PIDF) – Status Update

RELEVANT EXTRACT  The PIDF Scheme, operationalised by the Reserve Bank from January 01, 2021, subsidises deployment of Points of Sale (PoS) infrastructure (physical and digital modes) in tier-3 to tier-6 centres and north eastern states of the country. From August 26, 2021, beneficiaries of PM Street Vendor’s

Conversion/Switch of Government of India (GoI)’s Securities

RELEVANT EXTRACT  The Government of India announces the conversion/switch of its securities through auction for an aggregate amount of ₹30,000 crore (face value). The security-wise details of the conversion/switch are given as under: Date of Auction Source Securities Amount (FV) of Source Securities Destination Securities

Foreign Currency (Non-resident) Accounts (Banks) Scheme [FCNR(B)] – Master Direction on Interest Rate on Deposits

RELEVANT EXTRACT  Please refer to the instructions on the Foreign Currency (Non-resident) Accounts (Banks) Scheme contained in Section 19 of the Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 dated March 03, 2016 and Section 18 of the Master Direction – Reserve Bank

RBI lifts the business restrictions imposed on Diners Club International Ltd

RELEVANT EXTRACT  In view of the satisfactory compliance demonstrated by Diners Club International Ltd. with the Reserve Bank of India (RBI) circular dated April 6, 2018 on Storage of Payment System Data, the restrictions imposed, vide order dated April 23, 2021, on on-boarding of fresh domestic customers

Investment by Foreign Portfolio Investors (FPIs) in Debt – Review

RELEVANT EXTRACT  Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 1 to the Foreign Exchange Management (Debt Instruments) Regulations, 2019 notified vide Notification No. FEMA.396/2019-RB dated October 17, 2019, as amended from time to time and the relevant Directions issued thereunder. 2.

Reserve Bank of India Commits to Support Greening India’s Financial System- NGFS

RELEVANT EXTRACT  The Reserve Bank of India (RBI) joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as a Member on April 23, 2021, to benefit from the membership of NGFS by learning from and contributing to global efforts on Green

Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks

RELEVANT EXTRACT  Please refer to the circular No. DBS.CO.PPD.BC.No.8/11.01.005/2016-17 dated April 13, 2017 on the Revised Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks (SCBs). 2. The existing PCA Framework for SCBs has since been reviewed and revised. The revised Framework is provided in the Annex. 3.

Shri Shaktikanta Das re-appointed as RBI Governor

RELEVANT EXTRACT  Central Government has re-appointed Shri Shaktikanta Das as Governor, Reserve Bank of India for a further period of three years beyond the 10th day of December 2021, or until further orders, whichever is earlier. Source - https://www.rbi.org.in/

Opening of Current Accounts by Banks – Need for Discipline

RELEVANT EXTRACT  Please refer to our circular DOR.No.BP.BC/7/21.04.048/2020-21 dated August 6, 2020 on the captioned subject and associated circulars thereon1. 2. On a review and taking into account feedback received from Indian Banks’ Association (IBA) and other stakeholders, it has been decided that banks may open current