RBI September 2014

By November 12, 2014 December 20th, 2019 No Comments
Date Subject Amendment
DBOD.No.BP.BC. 35/21.04.048/2014-15
September 01, 2014 Timelines for Credit Decisions The Reserve Bank of India (RBI)
on Monday asked banks to put in a place a timeline for credit decisions for
all loans to eliminate “inordinate delays” by banks in convey their credit
decisions to borrowers. The system must be put in place within 30 days.

September 01, 2014 Inoperative Accounts There may be instances where the
customer has given a mandate for crediting dividend on shares to Savings Bank
account and there are no other operations in the Savings Bank account. Some
doubts have arisen whether such an account is to be treated as inoperative
account after two years. In this regard clarificatio has been issued by RBI.

UBD. CO. BPD. PCB. Cir. No. 12 /09.19.900/2014-15
September 03, 2014 Guidelines for transfer of
Assets and Liabilities of Urban Cooperative Banks to Commercial Banks-
With a view to ensuring that the
process of consolidation by way of non-disruptive exit of weak entities by a
scheme of transfer of assets and liabilities of UCBs to commercial banks is
undertaken in a transparent manner without affecting the financial health of
the acquiring entities and the banking system as a whole, it has been decided
to modify the existing guidelines for transfer of assets and liabilities of
UCBs to commercial banks by stipulating the certain conditions
DBOD. AML. No. 3356/14.01.001/2014-15
September 04, 2014 Simplification of KYC Norms –
Creating Public Awareness
The Reserve Bank of India, in
the recent times, has been taking several measures to simplify KYC
requirements to help the common man open bank accounts. It is, however,
observed that despite such measures the general public is still facing
problems in opening a bank account as these measures have not been given
adequate publicity and the common man still lacks awareness on the basics of
opening a bank account. In order to address these issues, create public
awareness and give wide publicity to these KYC simplification measures,
Reserve Bank has issued a Press Release together with a poster and a booklet
comprising a few common questions relating to Know Your Customer (KYC) norms
for opening bank accounts which are available in RBI’s website
A.P. (DIR Series) Circular No.28

September 08, 2014 Risk Management and Inter Bank
Dealings: Hedging Facilities for Foreign Portfolio Investors (FPIs)
In order to enhance the hedging
facilities for the FPIs holding securities under the Portfolio Investment
Scheme (PIS) it has been decided to permit FPIs to hedge the coupon receipts
arising out of their investments in debt securities in India falling due
during the following twelve months subject to the condition that the hedge
contracts shall not be eligible for rebooking on cancellation. The contracts
can however be rolled over on maturity provided the relative coupon amount is
yet to be received.

DBOD. APPT.BC.No. 40 /29.39.001/2014-15
September 09, 2014 Upper age limit for Whole Time
Directors on the Boards of Banks
the Companies Act, 2013 [Section
196(3)] which prescribe that ‘no company shall  appoint or continue the employment of any
person as Managing Director, Whole Time Director or Manager who is below the
age of 21 years or has attained the age of 70 years’.  In view of the above, it has been decided
that the upper age limit for MD & CEO and other WTDs of banks in the
private sector should be 70 years, i.e. beyond which nobody should continue
in the post. Within the overall limit of 70 years, individual bank’s Boards
are free to prescribe a lower retirement age for the WTDs, including the MD
& CEO, as an internal policy.
DBOD.No.CID. 41/20.16.003/2014-15
September 09, 2014 Guidelines on Wilful Defaulters

Clarification regarding Guarantor, Lender and Unit
Master Circular on Wilful
Defaulters DBOD.No.CID.BC.3/20.16.003/2014-15 dated July 1, 2014 has been
amended by RBI.
September 09, 2014 RRBs/StCBs/CCBs – KYC Norms /
AML Standards / CFT / Obligation of banks under PMLA, 2002 – Client Due
Diligence measures
It is advised that while the
requirements of client due diligence measures applied when establishing
anaccount-based relationship and on-going due diligence would continue as
indicated Master Circular, it has been decided to dispense with the
requirement of‘positive confirmation’.
September 09, 2014 Need for Bank Branches / ATMs to
be made accessible to persons with disabilities
It has been advised that State /
Central Co-operative Banks(StCBs / DCCBs) have to take necessary steps to
provide all existing ATMs/futureATMs with ramps so that wheel chair users /
persons with disabilities can easily accessthem. Care may also be taken to
make arrangements in such a way that the height of the ATMs do not create an
impediment in their use by wheelchair users. Certain more guidelines have
been stated in this regard.
RBI/2014-15/234              A.P. (DIR Series) Circular
September 17, 2014 Foreign Direct Investment (FDI)
in India – Issue of equity shares under the FDI Scheme against legitimate
The extant guidelines for issue
of shares/convertible debentures to non resident under the automatic route
have been reviewed in consultation with the Government of India and,
accordingly, it has been decided to permit issue of equity shares against any
other funds payable by the investee company, remittance of which does not
require prior permission of the Government of India or Reserve Bank of India
under FEMA, 1999 or any rules/ regulations framed or directions issued
thereunder provided two conditions as metioned in the circular is satisfied.

September 30, 2014 StCBs/CCBs – Instruments for
Augmentation of Capital Funds – Modification
RPCD.RCB.BC.73/07.51.012/2013-14 dated January 7, 2014 has been modifed by
the RBI.

September 30, 2014 Secondary market transactions in
Government Securities – Short Selling
IDMD.No.03/11.01.01(B)/2005-06 dated February 28, 2006 guidelines relating to
short selling has been reviewed .

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