Headline

Details of RBI Guidelines

Customers now need to submit only one dDocumentary Proof for Address.

On 9th June, 2014, RBI issued guidelines simplying the requirement of submission of ‘proof of address’ with regard to the know your customer (KYC) norms while opening a bank account.  The new guidelines are :

 a)(a) Customers may submit only one documentary proof of address (either current or permanent) while opening a bank account.  He may also submit only one documentary proof  while undergoing periodic updation.  In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.

  (   (b)In case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required to be submitted for such address for correspondence/local address. This address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephone conversation; (iii) visits; etc in the event of change in this address due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within two weeks of such a change.

Basel III Framework on Liquidity Standards

On 9th June, 2014, RBI announced the Guidelines of Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring. Tools and LCR Disclosure Standards.

 The LCR would be binding on banks from January 1, 2015.    With a view to provide a smooth transition,  the LCR requirement would be minimum 60 per cent for the calendar year 2015 beginning January 1, 2015 and rise in equal steps to reach 100 per cent on January 1, 2019, as per the time-line given below.

Banks Are Told  to share Information with SIT

We know that the government of India had  constituted the SIT to implement the decision of the Hon’ble Supreme Court on large amounts of money stashed abroad by evading taxes or generated through unlawful activities.

 RBI has advised all the banks and financial institutions to ensure that information/documents required by the Special Investigating Team (SIT) are made available to SIT  as and when required.

Second Bi-Monthly Monetary Policy Statement, 2014-15

Second B-Monthly Monetary Policy statement 2014-15 was issued on June 2, 2014, and it was decided  to:

·         Keep the policy repo rate, CRR unchanged

·         Reduce the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points i.e. from 23 per cent to 22.5 per cent of their NDTL with effect from the fortnight beginning June 14, 2014;

·         Reduce a special term repo facility of 0.25 per cent of NDTL to compensate fully for the reduction in access to liquidity under the ECR with immediate effect; and

·         Continue to provide liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system.

Special Drawing Facility to State Governments

The Reserve Bank, has announced that there will be change in the nomenclature of Special Ways and Means Advances granted t the State Governments as Special Drawing Facility.

 The change has come into effect from June 23, 2014.The Reserve Bank extends Special Drawing Facilities to State Governments under Section 17(5) of the Reserve Bank of India Act 1934.
 

SBH to be SLBC Convenor In Telangana

After creation of the 29th State of  India, RBI has  assigned  the convenorship of State Level Banker’s Committee (SLBC) of Telangana to State Bank of Hyderabad SBH).

The SLBC responsibility for the State of Andhra Pradesh (after carving out Telangana) has been retained with Andhra Bank

Enhanced Remittance Facilities to

On 19th June, RBI advised all Authorized Dealers (Ads)  of foreign exchange, to allow all residents and non-residents (except citizens of Pakistan and Bangladesh and also other travelers coming from and going to Pakistan and Bangladesh) to take out India currency notes up to Rs. 25,000 while leaving the country.

Now, any person resident in India

       i.            May take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000 (Rupees twenty five thousand only); and

    ii.            Who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000 (Rupees twenty five thousand only).