The policy repo rate was reduced by 25 bps from 6.75 per cent to 6.5 per cent.

The minimum daily maintenance of CRR reduced from 95 per cent of the requirement to 90 per cent effective April 16, 2016.

The average ex ante liquidity deficit in the banking system will be progressively reduced from 1 per cent of NDTL to a position closer to neutrality.

The policy rate corridor was narrowed from +/-100 bps to +/- 50 bps by reducing the MSF rate by 75 bps to 7.0 per cent and increasing the reverse repo rate by 25 bps to 6.0 per cent for finer alignment of the weighted average call rate (WACR) with the policy repo rate.

The supply of durable liquidity will be smoothened over the year using asset purchases and sales as needed.

Guidelines on ‘Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises (MSMEs)’ were issued to all SCBs (excluding RRBs) advising them to put in place a board approved policy to operationalise the framework not later than June 30, 2016.

Banks were instructed to ensure strict compliance with the guidelines on the Pradhan Mantri Fasal Bima Yojana (PMFBY). As the scheme is compulsory for loanee farmers availing Seasonal Agricultural Operational (SAO) Loans/ Kisan Credit Card (KCC) holders, banks were advised to ensure 100 per cent coverage of loanee farmers in notified areas growing notified crops.

The scheme of Priority Sector Lending Certificates (PSLC) was introduced to enable the banks to achieve the priority sector lending target and sub-targets.

Scope of the National Urban Livelihood Mission (NULM) was enhanced by the Government with the mission renamed as ‘Deendayal Antyodaya Yojana (DAY)-National Urban Livelihoods Mission’.

Banks were advised to act with empathy and consider restructuring and granting fresh loans to farmers in areas affected by natural calamities without waiting for the receipt of the insurance claims, in cases where there is reasonable certainty of receipt of the claim.

Banks were advised to facilitate access to their records pertaining to crop insurance schemes to the audit teams deputed by the offices of the Principal Accountant General/Accountant General (Audit) in respective states.

SCBs were permitted to take short positions in “When Issued” market while other eligible entities, e.g., UCBs were permitted to take long position.

Recognised stock exchanges were permitted to offer cross-currency futures and exchange traded options in EUR-USD, GBP-USD and USD-JPY, and exchange traded options in EUR-INR, GBP-INR and JPY-INR in addition to the existing USD-INR options.

The ESOP regulations were reframed in sync with those of SEBI for listed companies and of Ministry of Corporate Affairs for unlisted companies.

AD banks were permitted to factor export receivables on a non-recourse basis.

The filing of return on trade related loans and advances by exporters to overseas importers from their Exchange Earners’ Foreign Currency (EEFC) accounts was dispensed with.

The submission of documents by full-fledged money changers (FFMC)/AD category II while opening additional branches was relaxed.

Resident importers were allowed to raise trade credit in Rupees (INR).

The instructions, e.g., eligible credits and debits on opening of foreign currency accounts in India by ship-manning/crew-management agencies were reiterated in a more simplified manner.

AD category-I banks were permitted to offer facility of payment for imports by entering into standing arrangements with the Online Payment Gateway Service Providers for goods and software.

The settlement mode at the Indo-Myanmar border was switched from barter to normal trade.

All software exporters can file single/bulk SOFTEX form in excel format for certification.

Banks were advised to settle export/import transactions in the currency of beneficiary where invoices were in freely convertible currencies and direct exchange rate might not be available.

Nine regulations under FEMA were revised, repealing the original nine notifications and subsequent 51 amendments. Circulars were issued for seven out of nine revised regulations.

AD banks were permitted to extend clean credit for import of rough, cut and polished diamonds up to a maximum 180 days beyond 180 days from the date of shipment.

FDI limit for insurance was increased from 26 per cent to 49 per cent under automatic route.

Keeping of deposits with an Indian Company by persons resident outside India under Section 160 of the Companies Act, 2013 was clarified to be a current account transaction which would not require any approval from RBI.

FPI limit in corporate debt is to be fixed in rupee terms. The issuance of rupee denominated bonds will be within such limit notified from time to time.

Online reporting requirements for Overseas Direct Investment (ODI) were rationalised.

The notification relating to Remittance of Assets (FEMA 13) and its subsequent amendments were repealed and revised notification FEMA 13(R) was gazetted on April 1, 2016.

The main features of the proposed Import Data Processing and Monitoring System (IDPMS) to be operationalised soon were outlined.

Under the speed remittance procedure, the mandated requirement of maintenance of collateral or cash deposits by the exchange houses with whom banks entered into Rupee drawing arrangement was done away with, AD banks may, however, determine the collateral requirement.

A startup having an overseas subsidiary was permitted to open a foreign currency account outside India for crediting forex earnings out of its exports/sales and/or the receivables arising out of exports/sales of its overseas subsidiary.

Indian companies registered under IRDA that are into insurance/reinsurance business are being permitted to open a foreign currency account with a bank outside India.

Banks were advised to make use of the CRILC information and not limit their due diligence to seeking NOC from the customer’s lending banks as per his/her declaration.

Banks were permitted to slot their excess SLR securities and MSF eligible securities under day-1 bucket.

The actual interest rate charged before restructuring could be used to discount the future cash flows for determining the diminution in fair value of loans on restructuring/flexible structuring of existing project loans. In case of differential interest rates for a borrower, the weighted average interest rate might be used as a discount rate.

‘Past due’ status of a credit card account will be reckoned from the payment due date mentioned in the monthly credit card statement.

Banks were advised to present details of deposits with NABARD/SIDBI/NHB for meeting shortfall in priority sector lending in schedule 11 of the balance sheet.

The prescription of additional interest of 1.28 per cent by PSBs on deposits of defence group insurance stands withdrawn.

Domestic SCBs were made free to shift, part shift, merge or close all branches without the prior approval of the Reserve Bank. However, banking needs of a centre where a sole rural/semi-urban branch has been closed need to be met through either satellite offices/mobile vans or BCs.

Prior approval of the Reserve Bank is no longer required for non-strategic investments by profit making banks with CRAR of 10 per cent and more.

Banks were given general permission to grant loans and advances to their CEOs/ Whole Time Directors for personal use, without seeking prior approval of the Reserve Bank, provided such loans form part of the bank’s compensation/ remuneration policy approved by the Board of Directors.

A JLF-empowered group consisting of ED-level representatives from SBI, ICICI Bank and three other banks having exposure to the concerned borrower and two more banks not having exposure would be tasked to approve the rectification/restructuring packages under the corrective action plans. JLF would decide on the restructuring of an account classified as ‘doubtful’ if the account is viable and the JLF-EG would approve the proposal. The dissenting lenders would have an option to exit their exposure fully. If restructuring fails, JLF would have the option to initiate strategic debt restructuring bringing about change in management.

Banks were allowed to extend partial credit enhancement to corporate bonds as an irrevocable contingent line of credit to be drawn to fund a shortfall in servicing of bonds, if any.

Banks were permitted to upgrade the credit facilities to ‘standard’ category extended to borrowing entities whose ownership was changed outside the SDR mechanism.

Claims on foreign central banks would attract risk weights as per the rating to those by international rating agencies.

LTV ratio and risk weight on individual housing loans were revised for ‘housing for all’.

Minimum deposit under the Gold Monetisation Scheme, 2015 was amended as 30 grams of raw gold instead of 30 grams of gold of 995 fineness.

Banks were advised that the rates of interest on medium-term and long-term government deposits as fixed by the government would be 2.25 per cent and 2.5 per cent, respectively.

Prior approval for acquisition of shares or voting rights in private banks was made necessary.

Consolidated (group) level capital adequacy would apply to non-operative financial holding company (NOFHC) for new private banks.

While offering factoring services, banks could decide the percentage of invoice to be paid upfront based on their own assessment of the creditworthiness of the assignor/buyer.

RRBs were allowed to extend internet banking facility to their customers.

Banks were advised to be in readiness to share the KYC data with the Central KYC Records Registry once it is notified by the Government.

A foreign bank can deploy a maximum of four expatriates for each branch opened in India and not more than six expatriates for their head office functions.

The criterion regarding assets and income of factoring companies eligible for bank finance was revised to 50 per cent from 75 per cent.

IBUs were permitted to open foreign currency current accounts of units operating in IFSCs and of non-resident institutional investors. No limit was prescribed for raising short-term liabilities from banks. However, the IBUs must maintain LCR as applicable to Indian banks and follow the liquidity risk management guidelines.

Banks were allowed to grant non-fund based facilities including partial credit enhancement to those customers, who did not avail any fund-based facility from any bank in India.

In relation to Basel III capital regulations, coupons on perpetual debt instruments must be paid out of current year’s profits. However, if current year’s profits are not sufficient, the balance amount of coupon needs to be paid out of revenue reserves and/or credit balance in profit and loss account, if any.

Banks were permitted to offer all their products and services through ATM channels.

SCBs including RRBs and CICs were advised to capture member-level data relating to SHGs in phases.

SCBs (excluding RRBs) were advised to follow the Ind AS as notified under the Companies (Indian Accounting Standards) Rules, 2015 from 2018-19.

Banks should seek appointment of a guardian only when the concerned person is mentally ill and is not able to enter into a valid and legally binding contract.

Banks have been permitted to reckon government securities held by them by an additional 3 per cent of their NDTL under FALLCR within the mandatory SLR requirement as Level 1 HQLA for the purpose of computing their LCR. Hence the total carved-out from SLR available to banks would be 10 per cent of their NDTL.

Bank Rate was reduced by 75 bps to 7.0 per cent, effective April 05, 2016.

The minimum daily maintenance of Cash Reserve Ratio has been reduced from 95 per cent to 90 per cent effective from fortnight beginning April 16, 2016.

Banks were advised to display suitable posters/notices in their branches cautioning public against placing deposits in dubious schemes.

Banks could undertake the business of investment advisory services only through a separate subsidiary or one of its existing subsidiaries, with the prior approval of the Reserve Bank.

General permission was extended to private banks to issue shares through available routes subject to compliance with the extant provisions and reporting to the Reserve Bank.

Private banks and registered NBFCs need to submit information/documents along with the application for amalgamation to the Reserve Bank for consideration.

Banks were allowed to spread out any shortfall over a period of two years for NPAs sold up to March 31, 2016 subject to necessary disclosures. The said dispensation was extended for assets sold up to March 31, 2017. For assets sold during 2016-17, banks were allowed to amortize the shortfall over a period of four quarters.

For reworking the financial structure of entities facing genuine difficulties, the Reserve Bank put in place a ‘Scheme for Sustainable Structuring of Stressed Assets’ (S4A).

Banks were advised to submit the Proforma Ind AS Financial Statements for the half year ended on September 30, latest by November 30, 2016.

Banks were advised to report information on CPs and unhedged foreign currency exposures on a monthly and quarterly basis respectively, to the CICs from July 1, 2016.

Directions on financial statements presentation, disclosure and reporting will be applicable to AIFIs effective the quarter ended December 2016.

NBFCs were prohibited from acting as Point of Presence (PoP) under the PFRDA’s National Pension System.

Clarifications/instructions were issued to NBFC-Factors to discourage regulatory arbitrage between NBFC-Factors and banks.

Threshold for fraud reporting by NBFCs to the Central Fraud Monitoring Cell was increased to ₹10 million from ₹2.5 million.

Banks having overseas branches/representative offices/subsidiaries and joint ventures were advised to report on overseas operations as per the prescribed format in their quarterly DO letters.

Banks were advised of the revised limits for reporting of fraud cases.

Banks were advised about the operationalisation of the Central Fund Registry effective January 20, 2016 and revision of limits in reporting of fraud cases.