RBI proposed the following in the RBI''s annual monetary policy review 2009-10: To constitute a Working Group to review the present BPLR system and suggest changes to make credit pricing more transparent. The Working Group would consult all the stakeholders and submit its report by end-August 2009.
Payment of interest on savings bank accounts by scheduled commercial banks (SCBs) would be calculated on a daily product basis with effect from April 1, 2010.
To extend this special refinance facility up to March 31, 2010.
To extend the time for availability of this special term repo facility to banks up to March 31, 2010.
To conduct these 14-day term repo auctions on a weekly basis.
To review the ECR limit in March 2010.
To identify and address the macro-prudential concerns arising from the current framework in consultation with SEBI
Any new issuance of floating rate bonds would be in terms of the revised issuance structure.
Auction Process of Government of India Securities
Any new issuance of floating rate bonds would be in terms of the revised issuance structure.
To issue revised guidelines on repo accounting, taking into account comments on the draft guidelines earlier placed on the Reserve Bank''s website, by end-June 2009 for implementation from April 1, 2010
To extend the relaxation in all-in-cost ceilings until December 31, 2009
Indian companies may, henceforth, be permitted, under the approval route, to buy back FCCBs out of internal accruals with a minimum discount of 25 per cent of book value for redemption amount of up to US $ 50 million, 35 per cent of book value for redemption amount more than US $ 50 million and up to 75 million; and 50 per cent of book value for redemption amount more than US $ 75 million and up to US $ 100 million.
To enhance the cap of Rs.20 lakh to Rs.1 crore with immediate effect.
To constitute a Task Force to look into all the issues that have arisen with regard to the G-20 Working Groups and the report of the CFSA and suggest follow-up actions relevant for the Reserve Bank in the domestic context on an on-going basis, for every quarter;
In consultation with all regulators and the Government to consider the setting up of a Working Group to implement the recommendations of the CFSA;
To set up a Financial Stability Unit in the Reserve Bank drawing upon inter-disciplinary expertise from supervisory, regulatory, statistics, economics and financial markets departments for carrying out periodic stress testing and for preparing financial stability reports.
Credit Delivery Mechanism and Other Banking Services
To issue guidelines to banks based on the recommendations of the Group, by April 30, 2009.
To ask the Standing Advisory Committee on MSEs to review the Credit Guarantee Scheme so as to make it more effective.
To work out a roadmap for achieving this objective in a non-disruptive manner in consultation with NABARD.
To introduce CRAR for RRBs in a phased manner, taking into account the status of recapitalisation and amalgamation.
To work out, in consultation with NABARD, the manner of providing assistance to RRBs adopting ICT solutions for financial inclusion in districts identified as having high level of exclusion by the Committee on Financial Inclusion.
To allow scheduled commercial banks (SCBs) to set up offsite ATMs without prior approval subject to reporting.
To constitute a Group to review the extant framework of branch authorisation policy with a view to providing greater flexibility, enhanced penetration and competitive efficiency consistent with financial stability.
To issue further detailed guidelines on mitigating procyclicality later this year after FSB, BCBS and Committee on Global Financial System (CGFS) finalise their recommendations in this regard.
The Reserve Bank will liaise with SEBI on the issue of rating agencies'' adherence to Code of Conduct Fundamentals of the International Organisation Securities Commissions (IOSCO).
To prepare a draft circular detailing the modalities for adopting the integrated liquidity risk management system as also the guidance note on ''Liquidity Risk Management'' based on Basel Committee''s ''Principles for Sound Liquidity Risk Management and Supervision'' brought out in September 2008 as well as other international best practices which would be placed on the Reserve Bank''s website by June 15, 2009.
To constitute a Working Group to examine the experience to date of the business correspondent (BC) model and suggest measures, to enlarge the category of persons that can act as BCs, keeping in view the regulatory and supervisory framework and consumer protection issues.
To increase the maximum distance criterion for the operation of the BC for rural, semi-urban and urban areas from the existing 15 kms. to 30 kms.
The margin amounts/collaterals maintained with the CCPs will attract risk weights appropriate to the nature of the CCP. For CCIL, the risk weight will be 20 per cent and for other CCPs.
To issue a paper on prudential issues in banks'' floating and managing private pools of capital for eliciting public comments which will form the basis for finalising regulatory guidelines by September 30, 2009.
To prescribe a minimum lock-in-period and minimum retention criteria for securitising the loans originated and purchased by banks.
To permit SCBs which comply with the eligibility criteria to issue all categories of prepaid payment instruments;
Eligible non-bank entities, including NBFCs, will be permitted to issue semi-closed instruments, which can be used to purchase all types of goods and services at an identified network of establishments.
Banks should undertake a comprehensive review of all such outsourced arrangements including on-site inspections of critical service providers and ensure that adequate fallback arrangements are put in place.
Banks are advised to migrate to the MPLS system on a time bound basis.
To permit extension of area of operation of Tier II UCBs in Grade I to the entire State of registration with the prior approval of RBI.
To review the existing instructions and issue appropriate guidelines to UCBs on internal controls, risk management systems, ALM and disclosure norms;
To apply capital charge for market risks in respect of large-sized and systemically important UCBs with effect from April 1, 2010.
To defer the implementation of CRAR of 12 per cent to March 31, 2010 and of 15 per cent to March 31, 2011.
To give an extension of two more years for realisation of the assets in respect of the security receipts (SRs) issued by SCs/RCs which have completed five years.
Payment of interest on savings bank accounts by scheduled commercial banks (SCBs) would be calculated on a daily product basis with effect from April 1, 2010.
To extend this special refinance facility up to March 31, 2010.
To extend the time for availability of this special term repo facility to banks up to March 31, 2010.
To conduct these 14-day term repo auctions on a weekly basis.
To review the ECR limit in March 2010.
To identify and address the macro-prudential concerns arising from the current framework in consultation with SEBI
Any new issuance of floating rate bonds would be in terms of the revised issuance structure.
Auction Process of Government of India Securities
Any new issuance of floating rate bonds would be in terms of the revised issuance structure.
To issue revised guidelines on repo accounting, taking into account comments on the draft guidelines earlier placed on the Reserve Bank''s website, by end-June 2009 for implementation from April 1, 2010
To extend the relaxation in all-in-cost ceilings until December 31, 2009
Indian companies may, henceforth, be permitted, under the approval route, to buy back FCCBs out of internal accruals with a minimum discount of 25 per cent of book value for redemption amount of up to US $ 50 million, 35 per cent of book value for redemption amount more than US $ 50 million and up to 75 million; and 50 per cent of book value for redemption amount more than US $ 75 million and up to US $ 100 million.
To enhance the cap of Rs.20 lakh to Rs.1 crore with immediate effect.
To constitute a Task Force to look into all the issues that have arisen with regard to the G-20 Working Groups and the report of the CFSA and suggest follow-up actions relevant for the Reserve Bank in the domestic context on an on-going basis, for every quarter;
In consultation with all regulators and the Government to consider the setting up of a Working Group to implement the recommendations of the CFSA;
To set up a Financial Stability Unit in the Reserve Bank drawing upon inter-disciplinary expertise from supervisory, regulatory, statistics, economics and financial markets departments for carrying out periodic stress testing and for preparing financial stability reports.
Credit Delivery Mechanism and Other Banking Services
To issue guidelines to banks based on the recommendations of the Group, by April 30, 2009.
To ask the Standing Advisory Committee on MSEs to review the Credit Guarantee Scheme so as to make it more effective.
To work out a roadmap for achieving this objective in a non-disruptive manner in consultation with NABARD.
To introduce CRAR for RRBs in a phased manner, taking into account the status of recapitalisation and amalgamation.
To work out, in consultation with NABARD, the manner of providing assistance to RRBs adopting ICT solutions for financial inclusion in districts identified as having high level of exclusion by the Committee on Financial Inclusion.
To allow scheduled commercial banks (SCBs) to set up offsite ATMs without prior approval subject to reporting.
To constitute a Group to review the extant framework of branch authorisation policy with a view to providing greater flexibility, enhanced penetration and competitive efficiency consistent with financial stability.
To issue further detailed guidelines on mitigating procyclicality later this year after FSB, BCBS and Committee on Global Financial System (CGFS) finalise their recommendations in this regard.
The Reserve Bank will liaise with SEBI on the issue of rating agencies'' adherence to Code of Conduct Fundamentals of the International Organisation Securities Commissions (IOSCO).
To prepare a draft circular detailing the modalities for adopting the integrated liquidity risk management system as also the guidance note on ''Liquidity Risk Management'' based on Basel Committee''s ''Principles for Sound Liquidity Risk Management and Supervision'' brought out in September 2008 as well as other international best practices which would be placed on the Reserve Bank''s website by June 15, 2009.
To constitute a Working Group to examine the experience to date of the business correspondent (BC) model and suggest measures, to enlarge the category of persons that can act as BCs, keeping in view the regulatory and supervisory framework and consumer protection issues.
To increase the maximum distance criterion for the operation of the BC for rural, semi-urban and urban areas from the existing 15 kms. to 30 kms.
The margin amounts/collaterals maintained with the CCPs will attract risk weights appropriate to the nature of the CCP. For CCIL, the risk weight will be 20 per cent and for other CCPs.
To issue a paper on prudential issues in banks'' floating and managing private pools of capital for eliciting public comments which will form the basis for finalising regulatory guidelines by September 30, 2009.
To prescribe a minimum lock-in-period and minimum retention criteria for securitising the loans originated and purchased by banks.
To permit SCBs which comply with the eligibility criteria to issue all categories of prepaid payment instruments;
Eligible non-bank entities, including NBFCs, will be permitted to issue semi-closed instruments, which can be used to purchase all types of goods and services at an identified network of establishments.
Banks should undertake a comprehensive review of all such outsourced arrangements including on-site inspections of critical service providers and ensure that adequate fallback arrangements are put in place.
Banks are advised to migrate to the MPLS system on a time bound basis.
To permit extension of area of operation of Tier II UCBs in Grade I to the entire State of registration with the prior approval of RBI.
To review the existing instructions and issue appropriate guidelines to UCBs on internal controls, risk management systems, ALM and disclosure norms;
To apply capital charge for market risks in respect of large-sized and systemically important UCBs with effect from April 1, 2010.
To defer the implementation of CRAR of 12 per cent to March 31, 2010 and of 15 per cent to March 31, 2011.
To give an extension of two more years for realisation of the assets in respect of the security receipts (SRs) issued by SCs/RCs which have completed five years.
No comments:
Post a Comment