Sr No

Date

Circular No

Description

1

25-04-2024

RBI/2024-25/26
DOR.RET.REC.18/12.07.160/2024-25

Alteration in the name of "AB Bank Limited" to "AB Bank PLC" in the Second Schedule to the Reserve Bank of India Act, 1934
The name of "AB Bank Limited" has been changed to "AB Bank PLC" in the Second Schedule to the Reserve Bank of India Act, 1934, as per Notification DOR.LIC.No. S6222/23.13.048/2023-24.

2

25-04-2024

No. FEMA. 395(2)/2024-RB

Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) (Amendment) Regulations, 2024
The Reserve Bank of India has made several amendments to the Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019 (the Principal Regulations). These changes come into effect from the date of their publication in the Official Gazette. The changes include a short title and commencement, an amendment to Regulation 3.1 of the Principal Regulations, and an amendment to Regulation 4 of the Principal Regulations. The changes include a new provision requiring Authorised Dealer Category I banks to report the purchase or transfer of equity instruments by Foreign Portfolio Investments (FPIs) on stock exchanges in India, and the Investee Indian company through an Authorised Dealer Category I bank to report the purchase or subscription of equity shares by permissible holders on an International Exchange.

3

25-04-2024

No. FEMA. 10(R)(3)/2024-RB

Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) (Amendment) Regulations, 2024
The Reserve Bank of India has made amendments to the Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015, which will come into force from their publication in the Official Gazette. The amendment also substitutes the existing provision in Regulation 5 of the Principal Regulations, allowing funds raised through external commercial borrowings, American Depository Receipts, Global Depository Receipts, or direct listing of equity shares on international exchanges to be held in foreign currency accounts outside India.

4

26-04-2024

RBI/2024-25/29
DOR.AML.REC.19/14.06.001/2024-25

Implementation of Section 51A of UAPA,1967: Updates to UNSC’s 1267/ 1989 ISIL (Da'esh) & Al-Qaida Sanctions List: Amendments in 01 Entry
The United Nations Security Council (UNSC) has issued a press release stating that Regulated Entities (REs) must ensure they do not have any account in the name of individuals or entities appearing in lists of individuals and entities suspected of having terrorist links. The UNSC has enacted amendments to the ISIL (Da'esh) and Al-Qaida Sanctions List of individuals and entities subject to the assets freeze, travel ban, and arms embargo set out in paragraph 1 of Security Council resolution 2610 (2021). The UNSC has made accessible narrative summaries of reasons for listing the entries on its website. REs are advised to take appropriate action in accordance with Section 51 of the MD on KYC and follow the procedure laid down in the UAPA Order dated February 02, 2021. Updated lists of individuals and entities linked to ISIL (Da'esh), Al-Qaida, and Taliban are available at the UNSC. Requests for de-listing should be forwarded electronically to the Joint Secretary (CTCR), MHA for consideration.

5

26-04-2024

RBI/2024-25/28
DOR.LIC.REC.20/16.13.218/2024-25

Voluntary transition of Small Finance Banks to Universal Banks
The Reserve Bank of India has issued guidelines for Small Finance Banks (SFBs) to convert into Universal Banks. The transition requires SFBs to meet minimum paid-up capital/net worth requirements, a satisfactory track record of performance for five years, and RBI's due diligence exercise. The guidelines are effective from December 5, 2019, and apply to all Small Finance Banks. Eligibility criteria include a scheduled status with a satisfactory performance track record, listed shares on a recognised stock exchange, a minimum net worth of ₹1,000 crore, meeting CRAR requirements, net profit in the last two financial years, and GNPA and NNPA of less than or equal to 3% and 1% respectively in the last two financial years. Existing promoters of eligible SFBs are preferred. The application for transition is assessed in accordance with the Guidelines for 'on tap' Licensing of Universal Banks in the Private Sector and Reserve Bank of India (Acquisition and Holding of Shares or Voting Rights in Banking Companies) Directions, 2023.

6

26-04-2024

"RBI/2024-25/27
A.P. (DIR Series) Circular No. 03"

Limits for investment in debt and sale of Credit Default Swaps by Foreign Portfolio Investors (FPIs)
Authorised Dealer Category-I (AD Category-I) banks are advised to refer to Schedule 1 of the Foreign Exchange Management (Debt Instruments) Regulations, 2019 and the relevant directions issued by the Reserve Bank. The investment limits for FPI investment in government securities (g-secs), state government securities (SGSs), and corporate bonds remain unchanged at 6%, 2%, and 15% respectively for 2024-25. The allocation of incremental changes in the g-sec limit over the two sub-categories – ‘General’ and ‘Long-term’ – shall be retained at 50:50 for 2024-25. The entire increase in limits for SGSs has been added to the ‘General’ sub-category of SGSs. The aggregate limit of the notional amount of Credit Default Swaps sold by FPIs shall be 5% of the outstanding stock of corporate bonds, setting an additional limit of ₹2,54,500 crore for 2024-25.

7

29-04-2024

RBI/2024-25/30
DoS.CO.PPG.SEC.1/11.01.005/2024-25

Fair Practices Code for Lenders – Charging of Interest
The Reserve Bank has found instances of unfair practices in interest charging by Regulated Entities (REs) during an onsite examination of REs for the period ending March 31, 2023. These practices include charging interest from the date of sanction or execution of the loan agreement, charging interest from the date of the cheque, charging interest for the entire month, and collecting instalments in advance. These non-standard practices are in conflict with the spirit of fairness and transparency, and the Reserve Bank has advised REs to refund excess interest and other charges to customers. REs are directed to review their practices and take corrective action, including system level changes, to address these issues.

8

30-04-2024

RBI/2024-25/31
DOR.ORG.REC.21/14.10.001/2024-25

Guidance Note on Operational Risk Management and Operational Resilience
Operational risk is a crucial aspect of Regulated Entities' (REs) risk management framework. It can be caused by man-made, IT threats, geopolitical conflicts, business disruptions, frauds, execution errors, third-party dependencies, or natural causes. REs must consider all risks, assess them, monitor exposures, and devise risk mitigation strategies. The Reserve Bank has updated its Guidance Note on Operational Risk Management and Operational Resilience to promote effectiveness and enhance resilience in the complex financial system. The note applies to all commercial banks, primary co-operative banks, and all All-India financial institutions.

9

03-05-2024

RBI/2024-25/33
DOR.CRE.REC.22/21.03.054/2024-25

Banks' Exposure to Capital Market - Issue of Irrevocable Payment Commitments (IPCs)
The circular DBOD.Dir.BC.68/13.03.00/2011-12 dated December 27, 2011 on ""Banks' Exposure to Capital Market - Issue of Irrevocable Payment Commitments (IPCs)"" and mailbox clarification dated September 11, 2012, outlines the risk mitigation measures for IPCs issued by custodian banks under the T+1 rolling settlement cycle. The maximum intraday risk to custodian banks is reckoned as Capital Market Exposure (CME) at 30% of the settlement amount, based on the assumption of 20% downward price movement of equities on T+1. The exposure is normally for intraday, but if any exposure remains outstanding at the end of T+1 Indian Standard Time, capital will be maintained on the outstanding capital market exposure. The underlying exposures of banks to their counterparties are subject to limits prescribed under the Large Exposure Framework.

10

03-05-2024

RBI/2024-25/32
A. P. (DIR Series) Circular No. 04

Master Direction – Risk Management and Inter-Bank Dealings: Amendments
The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 and Master Direction - Risk Management and Inter-Bank Dealings have been amended to include Standalone Primary Dealers (SPDs) under Section 10(1) of the FEMA, 1999. Amendments are being made to the Master Direction to reflect SPDs' applicability. The Master Direction also updates directions on reporting of OTC foreign exchange derivative contracts and foreign currency interest rate derivative contracts to the Trade Repository of Clearing Corporation of India Ltd. These directions will come into effect immediately and supersede the circulars listed in Appendix III.

11

08-05-2024

RBI/2024-25/34
A. P. (DIR Series) Circular No.05

Margin for Derivative Contracts
Authorised Dealers are urged to review the Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020, the amendment to the regulations, and the A.P. (DIR Series) Circular No. 10 on margin for derivative contracts. The Reserve Bank of India (Margin for Derivative Contracts) Directions, 2024, will come into force immediately and supersede the previous circular. Authorised Dealers refer to Authorised Dealer Category-I banks and Authorised Dealer Category-III Standalone Primary Dealers.

12

08-05-2024

RBI/FMRD/2024-25/117
FMRD.DIRD.01/14.01.023/2024-25

Master Direction – Reserve Bank of India (Margining for Non-Centrally Cleared OTC Derivatives) Directions, 2024.
The Reserve Bank of India issued the Master Direction – Reserve Bank of India (Variation Margin) Directions, 2022 and the draft Directions prescribing guidelines for exchange of initial margin for NCCDs, 2024. These directions were issued under Section 45W of the Reserve Bank of India Act, 1934 and Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999.

13

06-05-2024

Notification No. FEMA 5(R)/(4)/2024-RB

Foreign Exchange Management (Deposit) (Fourth Amendment) Regulations, 2024
The Reserve Bank of India has made an amendment to the Foreign Exchange Management (Deposit) Regulations, 2016 (Notification No. FEMA 5 (R)/2016-RB) dated April 01, 2016, allowing a person resident outside India to open, hold, and maintain an interest-bearing account in Indian Rupees or foreign currency for posting and collecting margin in India for a permitted derivative contract, subject to directions issued by the Reserve Bank.

14

15-05-2024

RBI/2024-25/35
FIDD.CO.LBS.BC.No.06/02.08.001/2024-25

Formation of new district in the State of Assam – Assignment of Lead Bank Responsibility
The Government of Assam has announced the formation of a new district, Biswanath, and has designated the Lead Bank of the new district as Indian Bank (407), with no changes to the Lead Banks of other Assam districts.

15

21-05-2024

RBI/2024-25/36
A.P. (DIR Series) Circular No. 7

Issuance of partly paid units to persons resident outside India by investment vehicles under Foreign Exchange Management (Non-debt Instruments) Rules, 2019
Authorised Dealer (AD) Category-I banks are notified of the amended Foreign Exchange Management (Non-debt Instruments) Rules, 2019, which allow partly paid units to be issued to persons outside India by investment vehicles. This is done through compounding under the Foreign Exchange Management Act, 1999. Before approaching the Reserve Bank for compounding, banks must complete administrative actions, including reporting to the Reserve Bank through the Foreign Investment Reporting and Management System (FIRMS) Portal.

16

21-05-2024

RBI/2024-25/37
DoS.CO.PPG.SEC.2/11.01.005/2024-25

Internal Review – Interim Recommendations – Withdrawal of Circulars
An internal review of regulations was conducted to remove obsolete or superfluous instructions and simplify existing ones. The circulars listed in the Annex are withdrawn from today's close of business.

17

24-05-2024

RBI/2024-25/38
DOR.RET.REC.23/12.07.160/2024-25

Exclusion of "Fincare Small Finance Bank Limited" from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as a banking company
"Fincare Small Finance Bank Limited" has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934, effective April 01, 2024, due to its cessation of banking operations.

18

27-05-2024

RBI/2024-25/39
A.P. (DIR Series) Circular No. 08

Instructions on Money Changing Activities
FED Master Direction No.3/2015-16, dated January 01, 2016 on Money Changing Activities, has been updated to include new guidelines for Full Fledged Money Changers (FFMCs)/non-bank Authorised Dealers (ADs) Category-II. Starting July 1, 2024, the value of foreign currency notes sold by FFMCs/ADs must not be less than 75% of the value of notes purchased from other FFMCs/ADs. The data of these sales and purchases should be maintained and available for audit. FFMCs/ADs must submit their annual audited balance sheet by October 31.