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 :
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
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.
Jan 1, 2015
Jan 1, 2016
Jan 1, 2017
Jan 1, 2018
Jan 1, 2019
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
policy repo rate, CRR unchanged
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;
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
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
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
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
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Resident Individuals can remit upto USD 125,000
On 3rd June, 2013, RBI advised all authorized dealer (AD) category – I banks to allow remittances up to USD 125,000 per financial year under the Liberalized Remittance Scheme (LRC), for any permitted current or capital account transaction or a combination of both.
Export of Goods – Long Term Export Advances
In May 2014, RBI permitted authorized dealer category – I banks to allow exporters having a minimum of three years’ satisfactory track record to receive long term export advance up to a maximum tenor of 10 years to be utilized for execution of long term supply contracts for export of goods subject to certain conditions. Further, the authorized dealer banks are advised to follow certain guidelines, in case they are required to issue bank guarantee (BG)/stand by letter of credit (SBLC) for export performance.
New features in RTGS System
On 20th June, 2014, RBI decided to enable (a) the ‘Hybrid’ and (b) ‘Future value dated transaction’ features in the Real Time Gross Settlement System (RTGS). The hybrid feature are configured to do off-setting every five minutes.
The Future Value dated Transaction would enable the customers/ participants to initiate RTGS transactions three working days in advance for setting in RTGS on value date.
RBI authorizes three non-bank entities for WLAs
RBI has issued certificates of authorization to three non-bank entities for setting up and operating white label ATMs (WLAs) in India and they are- (i) BTI Payments Private Limited, Bangalore, (ii) Srei Infrastructure Finance Limited, Kolkata, (iii) Riddi Siddhi Bullions Limited, Mumbai.
Earlier, four entities were authorized to operate as WLAs, namely, (a) Tata Communications Payment Solutions Limited, Mumbai; (b) Prizm Payment Services Pvt. Ltd. Mumbai, Muthoot (c) Finance Limited, Kochi and (d) Vakrangee Limited Mumbai.
Thus, now total 7 entities are entitled for setting up White Lable ATMs,
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