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Date : Sep 10, 2018
RTI Disclosures of Common Interest

The Reserve Bank of India receives requests for information under the Right to Information Act, 2005. Some information furnished by the Chief Public Information Officer in response requests, would be of interest to the members of the public. Such information is furnished in this Disclosure Log.

Information pertaining to
Department of Banking Supervision
Department of Banking Regulation
Department of Communication
Department of Currency Management
Department of Economic and Policy Research
Deposit Insurance and Credit Guarantee Corporation of India (DICGC)
Financial Market Department
Foreign Exchange Department
Human Resources and Personnel Management
Monetary Policy Department
Non-Banking Financial Institutions
Payment and Settlement Systems
Rural Credit, Priority Sector Advances, Financial Inclusion
Statistics and Information Management
Urban Co-operative Banks

Information pertaining to Department of Banking Supervision

RIA No Information Sought Reply given/ Information provided Date of Reply
4698/ 2013-14

1. What is purpose of categorization of CA firms for Branch Statutory Audits of banks

The purpose of categorization of CA firms for Branch Statutory Audits of banks is to enable the banks to allot the branches to the extent possible, to the audit firms taking into consideration their category and audit experience in such a way that larger branches are audited by bigger/experienced audit firms.

March 11, 2014

2. What are the Ranges of Advances to particular category of CA firms for allotment of Branch Statutory Audits

No range of advances to particular category of CA firms for allotment of Branch Statutory Audits has been prescribed by RBI.

3. What is Unique Code Number

Unique Code Number is allotted by the Institute of Chartered Accountants of India to audit firms. Since The Institute of Chartered Accountants is a public authority as defined in section 2(h) of the Right to information Act 2005, you may consider approaching them for the required information.

4. What is the system to allot Unique Code Number

4753/ 2013-14

1. Why was the “no frills” account converted to the ‘Basic saving Bank Deposit Account’?

What is the system to allot Unique Code Number

The rationale for the conversion is spelt out in para 88 of Monetary Policy Statement of RBI for 2012-13 announced on 17.04.2012 which is as under:

“Financial inclusion has been high on the agenda of the Reserve Bank. With a view to providing fillip to this concept, banks were advised, in November 2005, to make available a basic banking ‘no-frills’ account with either ‘nil’ or very low minimum balance as well as charges that would make such accounts accessible to vast sections of the population. The nomenclature of the account in this manner has tended to signify that these accounts are opened more with a view to indicating achievement of numerical targets under the financial inclusion plans. On a review, it has been decided to modify the guidelines on opening of basic banking ‘no-frills’ accounts with a view to doing away with the stigma associated with the nomenclature and making the basic banking facilities available in a more uniform manner across the banking system. Accordingly, it is proposed that:

  • banks should offer a ‘basic savings bank deposit account’ with certain minimum common facilities and without the requirement of minimum balance to all their customers.”

March 11, 2014

Information pertaining to Department of Banking Regulation

Sr. No. Query Reply
1 What is the meaning of KYC? When this concept was introduced in Banking Sector?

In terms of paragraph 1.1 of Master Circular DBOD.AML.BC.No.22/14.01.001/2014-15 dated July 1, 2014 on Know Your Customer (KYC) norms/ Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT)/ Obligation of banks under PMLA, 2002, the objective of KYC/ AML/ CFT guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. KYC procedures also enable banks to know/ understand their customers and their financial dealings better which in turn help them manage their risks prudently.

The concept of KYC was introduced in the year 2002.

2 What are the documents required to open a savings bank account for an individual who is eligible to obtain the Aadhaar?

In terms of Section 15 (a) of our Master Direction on Know Your Customer (KYC), dated February 25, 2016, as amended on April 20, 2018, for undertaking Customer Due Diligence (identifying and verifying customers), Regulated Entities (REs), including banks, shall obtain the following information from an individual while establishing an account based relationship or while dealing with the individual who is a beneficial owner, authorised signatory or the power of attorney holder related to any legal entity:

a) From an individual who is eligible for enrolment of Aadhaar, the Aadhaar number; the Permanent Account Number (PAN) or Form No. 60 as defined in Income-tax Rules, 1962, as amended from time to time;

Provided, where an Aadhaar number has not been assigned to an individual, proof of application of enrolment for Aadhaar shall be obtained wherein the enrolment is not older than 6 months and in case PAN is not submitted, certified copy of an OVD containing details of identity and address and one recent photograph shall be obtained.

Further, in terms of Section 3 (a) (xiv) of the aforementioned Master Direction, “Officially Valid Document” (OVD) means the passport, the driving licence, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government, letter issued by the National Population Register containing details of name and address.

It may be added that in terms of Section 15 (d) of the aforementioned Master Direction, RE, at the time of receipt of the Aadhaar number, shall carry out, with the explicit consent of the customer, e-KYC authentication (biometric or OTP based) or Yes/No authentication.

The revised Master Direction is in accordance with the changes carried out in the PML Rules vide Gazette Notification GSR 538 (E) dated June 1, 2017 and thereafter and is subject to the final judgment of the Hon’ble Supreme Court in the case of Justice K.S. Puttaswamy (Retd.) & Anr. V. Union of India, W.P. (Civil) 494/2012 etc. (Aadhaar cases).

The aforementioned amended Master Direction is available on our website www.rbi.org.in under the link ‘Notifications’.

3 The address on my Aadhaar card is not my current address. What are the instructions regarding current address for bank accounts?

In terms of Section 15 (c) of our Master Direction on Know Your Customer (KYC), dated February 25, 2016, as amended on April 20, 2018, in case the identity information relating to the Aadhaar number or Permanent Account Number submitted by the customer does not have current address, an OVD as defined in section 3 (a) (xiv) shall be obtained from the customer for this purpose.

Provided that in case the OVD furnished by the customer does not contain updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:-

  1. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);

  2. property or Municipal tax receipt;

  3. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;

  4. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;

Provided further that the customer shall submit Aadhaar or OVD updated with current address within a period of three months of submitting the above documents.

The revised Master Direction is in accordance with the changes carried out in the PML Rules vide Gazette Notification GSR 538 (E) dated June 1, 2017 and thereafter and is subject to the final judgment of the Hon’ble Supreme Court in the case of Justice K.S. Puttaswamy (Retd.) & Anr. V. Union of India, W.P. (Civil) 494/2012 etc. (Aadhaar cases).

The aforementioned amended Master Direction is available on our website www.rbi.org.in under the link ‘Notifications’.

4 The List of RBI Nominee Directors on the boards of nationalized banks and State Bank of India and their tenure.

In terms of Section 9(3)(c) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/80, and Section 19(f) of the State Bank of India Act, 1955, one director, possessing necessary expertise and experience in matters relating to regulation or supervision of commercial banks, to be nominated by the Central Government on the recommendation of the Reserve Bank on the boards of nationalized banks and State Bank of India, respectively. Government of India notifications effecting such nominations are available at http://financialservices.gov.in/notification

Further, the name of the Nominee Director on a particular public sector bank is also available on respective bank’s website.

5 Please inform whether RBI has appointed the Chairmen / Managing Directors of private sector as well as public sector banks in India. The names of Chairmen / Managing Directors of the banks may be furnished.

(i) In terms of extant statutory provisions and guidelines, the part-time Chairman, and Managing Director & CEOs of public sector banks are appointed by the Central Government after consultation with the Reserve Bank. Thereafter, Government of India notifies these appointments on the Official Gazette of India.

(ii) As regards the private sector banks, the banks are appointing their part-time Chairman, and Managing Director with the previous approval of the Reserve Bank. Thereafter, banks notify their appointments.

Further, these appointments do not require any notification to be issued by the Reserve Bank.

6 Information on
(1) opening of bank branches, (2) branch opened by bank (3) procedures of identifying a centre and opening of branch there (4) copy of permission/ licence given by RBI

In terms of the liberalized guidelines regarding opening of new branches issued vide circular DBR.No.BAPD.BC.69/ 22.01.001/2016-17 dated May 18, 2017, Domestic Scheduled Commercial Banks (other than Regional Rural Banks) are permitted to open, unless otherwise specifically restricted, Banking Outlets in Tier 1 to Tier 6 centres without having the need to take permission from Reserve Bank of India in each case.

Regarding Small Finance Banks (SFBs) and Payments Banks (PBs), kindly refer to Para No.6 of our above mentioned circular dated May 18, 2017 to be read with Para 4 of Licensing Guidelines for SFBs dated November 27, 2014 and Para 6 of Operating Guidelines for SFBs dated October 06, 2016 and Para 6 of Operating Guidelines for PBs dated October 06, 2016.

The above circular, Licensing Guidelines and Operating Guidelines are available on our web site www.rbi.org.in under “Notification” menu.

7 Information on
(1) leasing of premises for bank branches/ATMs (2) rental rates/ specifications approved by RBI (3) payment or non-payment of rentals and other disputes thereon (4) copy of lease rental agreement (5) identifying and acquiring/leasing of premises for opening a bank branch

In terms of Paras 10(i) and (ii) of Master Circular DBOD.No.BAPD.BC.7/22.01.001/2014-15 dated July 1, 2014 read with circular DBR.No.BAPD.BC.92/22.01.003/2014-15 dated April 30, 2015, all powers relating to hiring of premises, rentals, deposits/advances to premises owners, for acquisition of accommodation on lease/rental basis for their own use (i.e. for Office and Residence of Staff) have been delegated to banks. While acquiring premises for opening of a branch, banks should ensure that the location of the branch complies with the local norms/laws of Municipal Corporation /Nagar Palika /Town area authority / Village Panchayat or any other competent authority. Further, banks must ensure that their branches are not functioning from premises unauthorized in law.

The above mentioned circulars are available on our website www.rbi.org.in under “Notifications” link.

8 Information on
(1) engaging of Business Correspondents (BCs)/Bank Mitras by banks (2) terms of appointment/ retrenchment / renewal of appointment/ remuneration/commission rates, eligibility criteria, activities, etc. for BCs

In terms of Para 8 of Master Circular on Branch Authorization, DBOD.No.BAPD.BC.7/22.01.001/2014-15 dated July 01, 2014, with the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, scheduled commercial banks including Regional Rural Banks (RRBs) and Local Area Banks (LABs) have been permitted to use the services of intermediaries in providing financial and banking services through the use of Business Facilitator/ Business Correspondent (BC) Model. Banks may formulate a policy for engaging BC with the approval of their Board of Directors.

This Master circular is available on our web-site www.rbi.org.in by “Notification” link.

9 What is the provision for installing/opening of ATM? In terms of Para 8 of our circular DBR.No.BAPD.BC.69/22.01.001/2016-17 dated May 18, 2017 (read with para 4 of our Master Circular DBOD.No.BAPD.BC.7/22.01.001/2014-15 dated July 1, 2014 and also our circular DBR.NO.BAPD.BC.72/22.01.001/2015-16 dated January 14, 2016) banks are allowed to set up onsite/offsite Automated Teller Machines (ATMs) at centres/places identified by them, The above circulars are available on our official web site www.rbi.org.in under “Notification” menu.
10 Information related to security guards in ATMs It is informed that in terms of Para 8 of our circular DBR.No.BAPD.BC.69/22.01.001/2016-17 dated May 18, 2017, banks are permitted to post suitable staff member(s) to provide guidance to the customers using the services of these outlets. The above circular is available on our official web site www.rbi.org.in under “Notification” menu.
11 I have taken Credit Information Report (CIR) from Credit Information Companies (CICs) viz: TUCIBIL/Experian/Equifax/ CRIF HIGH Mark as the case may be. It is observed that there are many errors appearing in my Credit Information Report (CIR). Please rectify the same/How can I rectify the same?

Complaint Redressal does not come under the purview of RTI Act. We therefore, advise you to contact TUCIBIL/Experian/Equifax/ CRIF HIGH Mark as the case may be. The addresses are as under :

TransUnion CIBIL Limited
One Indiabulls, Tower 2A-2B,
Unit No 1901, 19th Floor,
Jupiter Mill Compound,
Senapati Bapat Marg,
Lower Parel,
Mumbai – 400 013
Tel: +91 - 22 - 6638 4600

Alternatively, you may raise your complaint by using the following link: https://www.cibil.com/complaints-escalation-procedure/

Experian Credit Information Company of India Private Limited
5th Floor,
East Wing,
Tower 3, Equinox Business Park,
LBS Marg, Kurla (West),
Mumbai -400070, India
T: +91 (0) 22 3017 6700

Alternatively, you may raise your complaint by using the following link:
http://www.experian.in/addressing-your-queries-disputes

Equifax Credit Information Services Private Limited,
Unit No. 931, 3rd floor, Building no. 9,
Solitaire Corporate Park,
Andheri Ghatkopar Link Road,
Andheri East,
Mumbai – 400093,
India.
T: 1-800-209-3247
Alternatively, you may raise your complaint by using the following link:
https://eport.equifax.co.in/eport/dispute.jsp

CRIF High Mark
3B-01,02 & 03, 3rd Floor,
Phoenix Paragon Plaza
CTS No. 124/B, 15, L.B.S Marg,
Kurla (West), Mumbai-400070
Maharashtra, India

Tel No - +91-22-71712900
Alternatively, you may raise your complaint by using the following link:
https://www.crifhighmark.com/support-desk/
Nodal Officer
Email Id: nodalofficer@crifhighmark.com

Tel. No.: +91-020-6715 7878 (Business Hours Mon- Fri 10:30 – 07:00)

12 What is the statute under which Credit Information Companies (CICs) including CIBIL (Credit Information Bureau Limited) are set up? RBI has, in exercise of powers conferred by section 5 of the Credit Information Companies (Regulations) Act 2005 (CICRA) and the Rules and Regulations framed there under the Act, granted Certificate of Registration to four Credit Information Companies (CICs).
13 What is the purpose of setting up credit bureaus in India? Please provide the names of credit bureaus that are currently approved by RBI and operating in India. Please give the date of issue of Certificate of Registration. Which are statutes under which CICs operate/function ?

Credit Bureaus have been set up mainly to address the information asymmetries between creditors and borrowers or potential borrowers in order to facilitate an effective and informed credit risk assessment. The credit reporting also helps in arresting accretion of fresh NPAs in the banking system through an efficient system of collection and dissemination of credit information on borrowers. RBI has granted Certificate of Registration to 4 Credit Information Companies (CICs) viz; 1)TransUnion CIBIL Limited 2) Equifax Credit Information Services Pvt. Ltd, 3) Experian Credit Information Co. of India Pvt. Ltd and 4) CRIF Highmark Credit Information Services Pvt. Ltd. The date of issue of COR is as follows:

TransUnion CIBIL Limited, date of CoR-March 5, 2012.
Equifax Credit Information Services Pvt. Ltd, date of CoR- March 26, 2010.
Experian Credit Information Co. of India Pvt. Ltd, date of CoR- February 17, 2010.
CRIF Highmark Credit Information Services Pvt. Ltd, date of CoR-November 25, 2010.
These operate under the framework of Credit Information Companies Regulation Act 2005 (CICRA), Credit Information Companies (CIC) Rules and Regulations, 2006.

14 What are the duties and responsibilities of the Credit Information companies (CICs) as set forth by the RBI? The duties and responsibilities CICs are mentioned at Section 17, 19, 20 and 22 of Credit Information Companies (Regulations) Act 2005 (CICRA), Credit Information Companies Rules 24, 25, 26, 28 and 29 and Regulation 7, 10.
15 Has RBI issued instructions to banks/FIs/NBFCs to access credit information reports for loan disbursals?

Reserve Bank of India, vide its circular DBOD.No.CID.BC.127/20.16.056/2013-14 dated June 27, 2014 advised banks and financial institutions that Banks/FIs should include in their credit appraisal processes/loan policies, suitable provisions for obtaining Credit Information Reports (CIR) from one or more Credit Information Companies (CICs) so that the credit decisions are based on information available in the system.

The information contained in the CIR (which contains credit score) would be one of the factors that banks would consider before granting any credit facility to a prospective borrower. However, it will be the commercial judgement of the concerned credit institution to grant loan or otherwise to such borrowers based on their Board approved policies.

16 What are the steps taken against wilful defaulters by RBI?

In terms of Master circular dated July 1, 2015, following instructions have been issued with regard to Wilful Defaulters.

I) Measures to be initiated by the banks and FIs against the wilful defaulters identified:

i). No additional facilities should be granted by any bank / FI to the listed wilful defaulters. In addition, such companies (including their entrepreneurs / promoters) where banks / FIs have identified siphoning / diversion of funds, misrepresentation, falsification of accounts and fraudulent transactions should be debarred from institutional finance from the scheduled commercial banks, Financial Institutions, NBFCs, for floating new ventures for a period of 5 years from the date of removal of their name from the list of wilful defaulters as published/disseminated by RBI/CICs.

ii) A covenant in the loan agreements, with the companies to which the banks / FIs have given funded / non-funded credit facility, should be incorporated by the banks / FIs to the effect that the borrowing company should not induct on its board a person whose name appears in the list of Wilful Defaulters and that in case, such a person is found to be on its board, it would take expeditious and effective steps for removal of the person from its board.

II) Criminal Action against Wilful Defaulters

It is essential that offences of breach of trust or cheating construed to have been committed in the case of loans should be clearly defined under the existing statutes governing the banks, providing for criminal action in all cases where the borrowers divert the funds with malafide intentions.

III) Monitoring of End Use

Banks / FIs should closely monitor the end-use of funds and obtain certificates from borrowers certifying that the funds are utilised for the purpose for which they were obtained. In case of wrong certification by the borrowers, banks / FIs may consider appropriate legal proceedings, including criminal action wherever necessary, against the borrowers.

IV) Criminal Action by Banks / FIs

It is essential to recognise that there is scope even under the existing legislations to initiate criminal action against wilful defaulters depending upon the facts and circumstances of the case under the provisions of Sections 403 and 415 of the Indian Penal Code (IPC) 1860. Banks / FIs are, therefore, advised to seriously and promptly consider initiating criminal action against wilful defaulters or wrong certification by borrowers, wherever considered necessary, based on the facts and circumstances of each case under the above provisions of the IPC to comply with our instructions and the recommendations of JPC.

17 Provide details of total NPA of wilful defaulters of Banks as on 31.03.2016

Requested Information is confidential in nature and is exempt from disclosure under section 45E of the Reserve Bank of India Act, 1934. Moreover, in a pending case, [(W.P. (C) No. 573 of 2003 (Centre for Public Interest Litigation v. Housing & Urban Development Corp. Ltd &Ors)] Reserve Bank has submitted to the Hon’ble Supreme Court a list of defaulters above Rs. 500/- crores in a sealed cover claiming that the said information is confidential and requesting that it may not be revealed to the public. The matter is still under the consideration of the Supreme Court. We are therefore unable to provide the requested information.

Further, the banks /Financial Institutions have been advised to submit the data regarding defaulting borrowers to Credit Information Companies (CICs) and not to RBI from December 2014 onwards.

18 Information about Deposit Education and Awareness Fund Scheme, 2014. In terms of the Depositor Education and Awareness Fund Scheme, 2014 (Scheme), the Reserve Bank has established a Fund, called the Depositor Education and Awareness Fund (Fund). As per the Scheme, the amount to the credit of any account in India with any bank which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years shall be credited to the Fund. The Fund shall be utilized for promotion of depositors’ interest and for such other purposes which may be necessary for the promotion of depositors’ interests as specified by RBI from time to time. The depositor would, however, be entitled to claim from the bank his deposit or any other unclaimed amount or operate his account after the expiry of ten years, even after such amount has been transferred to the Fund. The bank would be liable to pay the amount to the depositor/claimant and claim refund of such amount from the Fund.
19 What are the interest rates as set by the Reserve Bank of India for various categories of loans? RBI has not issued any specific instructions prescribing the interest rates on advances including home loans since with effect from October 18, 1994, Reserve Bank of India had deregulated the interest rate on advances sanctioned by Scheduled Commercial Banks (excluding Regional Rural Banks) and these interest rates are determined by banks with the approval of their respective Board of Directors subject to regulatory guidelines on interest rate on advances contained in our Master Direction - Reserve Bank of India (Interest Rate on Advances) Directions, 2016 issued vide DBR.Dir.No.85/13.03.00/2015-16 dated March 3, 2016, which is available on our website www.rbi.org.in under the head ‘Notifications’.
20 What are the interest rate on term deposits of various maturities as per the RBI Guidelines? RBI has deregulated the interest rates on deposits and Scheduled Commercial Banks have been given the freedom to fix their own interest rates on domestic term deposits of various maturities duly approved by the Board of Directors subject to the instructions contained in our Master Direction on ‘Interest Rate on Deposits’ issued vide DBR.Dir. No.84/13.03.00/2015-16 dated March 3, 2016, which is available on our website www.rbi.org.in under the head ‘Notifications’.
21 Whether there is any provision in the bank for giving more interest on the money deposited by senior citizen?

In terms of Section 8 (b) of Master Direction on ‘Interest Rate on Deposits’ issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016, Scheduled Commercial Banks shall, at their discretion, formulate term deposit schemes specifically for resident Indian senior citizens, offering higher and fixed rates of interest as compared to normal deposits of any size.

The above Master Direction is available on our website www.rbi.org.in under the head ‘Notifications’.

22 What is the eligibility criteria and documents required to get a loan from a public or private bank? What are the RBI guidelines for availing loan from a bank?

RBI has not issued any instructions in this regard since the management of loan sanctioning/ recovery activity in a bank is essentially an internal management function and each bank’s Board is authorized to frame suitable policies. Banks have been advised to prepare a well-defined loan policy approved by their Board of Directors subject to the instructions contained in our Master Circular on “Loans and Advances – Statutory and Other Restrictions” issued vide DBR.No.Dir.BC.10/13.03.00/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.

Further, banks have been advised to consider exposure limits to individual/ group borrowers, documentation standards, margin, security, sectoral exposure limits, delegation of powers, maturity and pricing policies, factors taken into consideration for deciding interest rates etc., while sanctioning advances.

23 Has RBI prescribed the charges for the various services provided by banks? Scheduled Commercial Banks (excluding Regional Rural Banks) have been given the freedom to fix service charges on various types of service rendered by them, as per their Board approved policy subject to the general instructions on levy of charges contained in paragraph 6 of Master Circular on ‘Customer Service in Banks’ issued vide DBR.No.Leg.BC.21/ 09.07.006/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.
24 Does the bank have the right to levy foreclosure charges/ pre-payment penalty on the individual borrowers?

Scheduled Commercial Banks (excluding Regional Rural Banks) have the freedom to fix charges, as per their Board approved policy subject to general instructions regarding levy of charges by banks contained in paragraph 6 of our Master Circular on ‘Customer Service in Banks’ issued vide DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.

However, banks are not permitted to charge foreclosure charges / pre-payment penalties on all floating rate term loans sanctioned to individual borrowers. These instructions are consolidated in paragraph 6.4 of Master Circular referred to above.

25 What is the definition of ‘individual’ as applicable to RBI instructions? The term ‘Individual’ has been defined as a natural person, in Section 3 (a) (ix) of our Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016, which is available on our website www.rbi.org.in under the head ‘Notifications’.
26 Most of the banks ask their customers to maintain some amount as Minimum balance/ Average Minimum Balance. Please provide the instructions issued by RBI in this regard.

RBI has not issued any specific instructions prescribing the amount of minimum balance to be maintained in savings bank account since banks have the freedom to determine the quantum of minimum balance to be maintained by their depositors in savings bank account subject to conditions that:

i) At the time of opening savings bank accounts, banks should inform their customers in a transparent manner the requirement of maintaining minimum balance.

ii) Banks should inform, at least one month in advance, the existing account holders of any change in the prescribed minimum balance.

The above instructions are contained in paragraph 5.4 of Master Circular on ‘Customer Service in Banks’ issued vide DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.

27 As per the RBI rules, whether banks are supposed to deduct the charges for Non maintenance of minimum balance from Account holder. If yes, please provide a copy of the rules.

Levy of penalty by banks on non-maintenance of minimum balance in savings account is subject to following:

i) In the event of a default in maintenance of minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS / email / letter etc. that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable.

ii) In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of notice of shortfall, penal charges may be recovered under intimation to the account holder.

The above instructions are contained in paragraph 5.4 of Master Circular on ‘Customer Service in Banks’ issued vide DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.

28 What are charges for SMS alert facility?

With effect from November 26, 2013, banks have been advised to leverage the technology available with them and the telecom service providers to ensure that such charges are levied on all customers on actual usage basis.

The above instructions are contained in paragraph 6.7 of Master Circular on ‘Customer Service in Banks’ issued vide DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.

29 Can I withdraw my fixed deposit prematurely?

In terms of our extant instructions contained in Section 7 (a) of our Master Direction on ‘Interest Rate on Deposits’ issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016, banks shall have the freedom to offer term deposits without premature withdrawal option provided that all term deposits accepted from individuals (held singly or jointly) for amount of Rupees fifteen lakh and below shall have premature-withdrawal-facility.

The above Master Direction is available on our website www.rbi.org.in under the head ‘Notifications’.

30 What all entities are eligible to open a Savings Bank Account?

We have not issued any specific instructions for opening saving bank accounts. However, in terms of instructions contained in our Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016 Scheduled Commercial Banks shall not open a savings deposit account in the name of entities other than individuals, Karta of HUF and organisations/agencies listed below:

(1) Primary Co-operative Credit Society which is being financed by the bank.
(2) Khadi and Village Industries Boards.
(3) Agriculture Produce Market Committees.
(4) Societies registered under the Societies Registration Act, 1860 or any other corresponding law in force in a State or a Union Territory except societies registered under the State Co-operative Societies Acts and specific state enactment creating Land Mortgage Banks.
(5) Companies licensed by the Central Government under Section 8 of Companies Act, 2013 or Section 25 of Companies Act, 1956 or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the words ‘Limited’ or the words ‘Private Limited’.
(6) Institutions other than those mentioned in section 26(h) and whose entire income is exempt from payment of Income-tax under the Income-Tax Act, 1961.
(7) Government departments / bodies / agencies in respect of grants/ subsidies released for implementation of various programmes / Schemes sponsored by Central Government / State Governments subject to production of an authorization from the respective Central / State Government departments to open savings bank account.
(8) Development of Women and Children in Rural Areas (DWCRA).
(9) Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among their members.
(10) Farmers’ Clubs – Vikas Volunteer Vahini – VVV.

The above circular is available on our website www.rbi.org.in under the head ‘Notifications’.

31 What is the rate of interest to which a depositor is entitled for such intervening periods after date of maturity till the date of renewal? If a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as applicable to savings deposits as per the instructions contained in para 9 (b) of our Master Direction on ‘Interest Rate on Deposits’ issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016, which is available on our website www.rbi.org.in under the head ‘Notifications’.
32 Whether there is any provision which allows bank to give more interest on the money deposited by its own employees? Scheduled Commercial Banks shall, at their discretion, allow additional interest of one per cent per annum, over and above the rate of interest mentioned in the schedule of interest rates on savings or term deposits of bank’s employees and former employees subject to the regulatory guidelines issued by RBI contained in Section 8 of our Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016 which is available on our website www.rbi.org.in under the head ‘Notifications’.
33 What is the penal rate of interest prescribed by RBI? Banks shall formulate a Board approved policy for charging penal interest on advances which shall be fair and transparent. The rate of penal interest shall be decided after taking into account incentive to service the debt and due regard to genuine difficulties of customers. The above instructions are contained in Section 5 of our Master Direction - Reserve Bank of India (Interest Rate on Advances) Directions, 2016 issued vide DBR.Dir.No.85/13.03.00/2015-16 dated March 3, 2016, which is available on our website www.rbi.org.in under the head ‘Notifications’.
34 How is the Savings Bank account interest calculated? Interest on domestic rupee savings deposits shall be calculated on a daily product basis as per the instructions contained in Section 6 (a) of our Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016 issued vide DBR.Dir.No.84/13.03.00/2015-16 dated March 3, 2016 which is available on our website www.rbi.org.in under the head ‘Notifications’.
35 What is the procedure of the disbursal of a housing loan?

Banks have been advised that disbursal of housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project / houses and upfront disbursal should not be made in cases of incomplete / under-construction / green field housing projects. However, in cases of projects sponsored by Government/Statutory Authorities, banks may disburse the loans as per the payment stages prescribed by such authorities, even where payments sought from house buyers are not linked to the stages of constructions, provided such authorities have no past history of non-completion of projects. These instructions are contained in paragraph 3 (f) and 3 (g) of our Master Circular on “Housing Finance” issued vide DBR.No.Dir.BC.13/08.12.001/2015-16 dated July 1, 2015, which is available on our website www.rbi.org.in under the head ‘Notifications’.

The instructions regarding Housing Finance by banks are consolidated in the above-mentioned circular. In addition, the LTV ratios and risk weights for individual housing loans have been revised in terms of circular DBR.BP.BC.No. 44/08.12.015/2015-16 dated October 8, 2015 on ‘Individual Housing Loans: Rationalisation of Risk-Weights and LTV Ratios’ which is available on our website www.rbi.org.in under the head ‘Notifications’

36 What are the current guidelines for the issue of a Bank Guarantee? The regulatory guidelines issued by RBI are contained in our Master Circular – ‘Guarantees and Co-acceptances’ issued vide DBR.No.Dir.BC.11/13.03.00/2015-16 dated July 1, 2015 which is available on our website www.rbi.org.in under the head ‘Notifications’.
37 Whether guidelines are issued by RBI to Housing Finance Companies (HFCs)? No. NHB regulates and issues guidelines to HFCs.
38 Whether the Banking Regulation Act, 1949 is applicable to AIFIs? No. AlFIs are regulated by RBI in terms of powers conferred by Section 45L of RBI Act, 1934. The activities of AIFIs are mainly governed by their respective statutes.
39 Name of the Regulatory body regulating Financial Institutions. RBI, DBR, FID regulates four All India Financial Institutions (AIFIs), viz. Small Industries Development Bank of India (SIDBI), National Housing Bank (NHB), Export-Import Bank of India (EXIM Bank) and National Bank for Agriculture and Rural Development (NABARD).
40 Name of the Regulatory body regulating State Finance Corporations? SIDBI is the regulator of State Finance Corporations (SFCs).
41 Total number of All India Financial Institutions (AIFIs).
In India and Sector wise

At present, RBI, Department of Banking Regulation (DBR) regulates four All India Financial Institutions, viz. National Bank for Agriculture and Rural Development (NABARD), Export Import Bank of India (EXIM Bank), Small Industries Development Bank of India (SIDBI), National Housing Bank (NHB). Further, Industrial Investment Bank of India (IIBI) Ltd., which was also being regulated by RBI, DBR has been under the process of Voluntary Winding up since September 2012.

Small Industries Development Bank of India (SIDBI) is the principal financial institution which caters to the MSME Sector.

National Bank for Agriculture and Rural Development (NABARD) is a financial institution for agriculture and rural credit.

National Housing Bank (NHB) deals with housing finance sector.

Export Import Bank of India (EXIM Bank) caters to credit needs of export/import sectors.

42 Name and Date of Establishment of the All India Financial Institutions (AIFIs).
Name of AIFI Date of Establishment
National Bank for Agriculture and Rural Development (NABARD)- July 12, 1982
Export Import Bank of India (EXIM Bank) January 1, 1982
Small Industries Development Bank of India (SIDBI) March 7, 1990
National Housing Bank (NHB) July 9, 1988
43 Is it mandatory to take insurance while availing any loan product from a bank?

In terms of Section 18(d)(v) of our Master Direction on Financial Services provided by Banks dated May 26, 2016(Updated as on September 25, 2017), the following is prescribed:-

“(v) The bank shall not follow any restrictive practices of forcing a customer to either opt for products of a specific insurance company or link sale of such products to any banking product. It shall be prominently stated in all publicity material distributed by the bank that the purchase by a bank’s customer of any insurance products is purely voluntary, and is not linked to availment of any other facility from the bank.

The above mentioned master direction is available on our official website https://www.rbi.org.in under the ‘Notifications’ tab.

44 If bank staff force customer to purchase insurance products and/or threaten to deny the loan then what should be course of action/grievance redressal mechanism. In case of grievance against particular bank, a complaint may be lodged with the branch of concerned bank or its controlling office. If the complaint is not redressed within 30 days, then a fresh complaint can be made to Banking Ombudsman, under the Banking Ombudsman Scheme, 2006. The details of the Banking Ombudsman Scheme are available on RBI’s website www.rbi.org.in.
45 Whether the ATM card gives an insurance cover to the account holder in case of accidental death? Department of Banking Regulation has not issued any specific instructions in this regard and hence, do not have the requisite information.
46 What are the measures taken by RBI to control credit card frauds?

The relevant guidelines on “Fraud control – security and other measures” are issued under para I(14) of Master Circular dated July 1, 2015 on “Credit Card, Debit Card and Rupee Denominated Co-branded Pre-paid Card Operations of Banks and Credit Card issuing NBFCs”.

The circular is available on our official website https://www.rbi.org.in under the ‘Notifications’ tab.

47 What are the guidelines on interest rate and other charges pertain to credit card?

The relevant guidelines on “Interest rates and other charges” issued under para I (5) of Master Circular dated July 1, 2015 on “Credit Card, Debit Card and Rupee Denominated Co-branded Pre-paid Card Operations of Banks and Credit Card issuing NBFCs”.

The above cited circular is available on website www.rbi.org.in under “Notifications” tab.

48 Is bank staff are allowed to sell insurance products in branches? What are the guidelines issued in this regard?

In terms of para 18 of Master Direction on “Financial Services provided by Banks” dated May 26, 2016 (Updated as on September 25, 2017), banks can undertake departmentally agency of business of insurance products subject to conditions inter-alia includes:

• Banks which are acting as corporate agents for insurance companies should have a Board approved policy mentioning issues of customer appropriateness, suitability and grievance redressal.

• Banks should treat its customers fairly, honestly and transparently, with regard to suitability and appropriateness of the insurance products sold.

• Banks are also restricted from forcing customers to opt for products of a specific insurance company or link sale of such products to any banking product.

• Banks should have a robust internal grievance redressal mechanism to resolve issues related to services offered.

• Banks should ensure that performance assessment and incentive structure for staff is not violative of Section 10(1) (ii) of the BR Act, 1949 or the guidelines issued by IRDA in payment of commissions/brokerage/incentives. Also it has to be ensured that no incentive (cash or non-cash) is paid to the staff engaged in insurance broking/corporate agency services by the insurance company.

The above cited Master Direction is available on our website www.rbi.org.in under the tab “Notifications”.

49 Name and Number of nominated banks permitted by RBI to import gold for this financial year The list of nominated banks permitted by RBI to import gold is available at :
https://rbi.org.in/commonman/english/Scripts/Content.aspx?id=336
50 List of Foreign Banks which are permitted by RBI to do banking services in India with their addresses.

The list of foreign banks operating in India (as branches and Representative offices), is available at:
https://www.rbi.org.in/commonman/Upload/English/Content/PDFs/71207.pdf

The correspondence addresses of foreign banks carrying on banking business in India are available at:
https://rbi.org.in/commonman/english/scripts/banksinindia.aspx

51 What is RBI`s policy regarding safety of lockers in banks? The applicant may refer to para 18.2 on 'Security aspects relating to Safe Deposit Lockers’ of our Master Circular DBR.No.Leg.BC.21/09.07.006/ 2015-16 dated July 1, 2015 on ‘Customer Service in Banks’ which is available on our website www.rbi.org.in under the link ‘Notifications’.
52 Please provide RBI guidelines on fair practice code.

RBI, Department of Banking Regulation has issued following circulars to banks:-
DBOD.Leg.No.BC.104/09.07.007/2002-03 dated May 5, 2003 on ‘Guidelines on Fair Practices Code for Lenders’.
DBOD.No.Leg.BC.65/09.07.005/2006-07 dated March 6, 2007 on ‘Guidelines on Fair Practices Code for Lenders’.
DBOD.No.Leg.BC.28/09.07.005/2007-08 dated August 22, 2007 on ‘Guidelines on Fair Practices Code for Lenders- Furnishing Copy of Loan Agreement’.

(iv) DBOD.No.Leg.BC.86/09.07.005/2008-09 dated November 25, 2008 on ‘Guidelines on Fair Practices Code for Lenders- Disclosing all information relating to Processing Fees / Charges’.

(v) DBOD.Leg.No.BC.61/09.07.005/2010-11 dated November 12, 2010 on ‘Guidelines on Fair Practices Code for Lenders- Disclosing all information relating to processing fees / charges’.

(the aforementioned circulars are available on our website www.rbi.org.in under the link ‘Notifications’)

In this regard, you may also refer to our instructions to banks issued vide circular DBR.Leg.No.BC.64/09.07.005/2014-15 dated January 22, 2015 on ‘Display of Information by Banks’.

53 Please provide RBI guidelines to banks on collecting information from customers for cross-selling purposes The applicant may refer to para 25.1 on ‘Collecting Information from customers for cross-selling purposes’ of our Master Circular DBR No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015 on ‘Customer Service in Banks’ which is available on our website www.rbi.org.in under the link ‘Notifications’.
54 What are RBI guidelines regarding banking hours, extended business hours and extended business hours for non-cash banking transactions? The applicant may refer to paragraphs 7.2, 7.3 and 7.4 on ‘Changes in banking hours’, ‘Commencement/Extension of working hours’ and ‘Extended business hours for non-cash banking transactions’ respectively of our Master Circular DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015. on ‘Customer Service in Banks’ which is available on our website www.rbi.org.in under the link ‘Notifications’.
55 What are RBI guidelines on liability of customers and banks in an unauthorized electronic banking transaction? The applicant may refer to our circular DBR.No.Leg.BC.78/09.07.005/2017-18 dated July 6, 2017 on ‘Customer Protection - Limiting Liability of Customers in Unauthorized Electronic Banking Transactions’ which is available on our website www.rbi.org.in under the link ‘Notifications’.
56 Please provide Policy Guidelines in respect of Senior citizen and differently abled person with key instructions to banks to facilitate such account holders in their legitimate banking transaction to ensure inclusive growth of the society RBI, Department of Banking Regulation has issued necessary instructions to banks vide its circular DBR.No.Leg.BC.96/09.07.005/2017-18 dated November 9, 2017 on ‘Statement on Developmental and Regulatory Policies - October 4, 2017- Banking Facility for Senior Citizens and Differently abled Persons’. In this regard, the applicant may also refer to paragraphs 1.1, 9, 10 and 11 of our Master Circular DBR.No.Leg.BC.21/09.07.006/2015-16 dated July 1, 2015 on “Customer Service in Banks” which is available on our website www.rbi.org.in under the link ‘Notifications’.
57 What are the latest guidelines of RBI on entries in Passbook and Statement of Accounts? The applicant may refer to our instructions issued vide circular DBR.No.Leg.BC.76/09.07.005/16-17 dated June 22, 2017 on “Recording of Details of Transactions in Passbook/ Statement of Account” and para 5.6.5 on ‘Providing monthly statement of accounts’ of our Master Circular DBR.No.Leg.BC.21/09.07.006/2015-16 on ‘Customer Service in Banks’ dated July 1, 2015. The circulars are available on our website www.rbi.org.in under the link ‘Notifications’.
58 If a customer has any grievance/complaint against a bank/branch then what shall be the course of action? In case of grievance against a specific bank, you may lodge a complaint with the concerned bank branch. If you are not satisfied with their reply, you may lodge a complaint with Nodal Officers / Principal Nodal Officers at Controlling Office / Head Office of the bank branch, appointed under the Banking Ombudsman Scheme, 2006, for redressal of complaints. If your complaint is not redressed within one month, a complaint can be made to Banking Ombudsman, under the Banking Ombudsman Scheme, 2006. The details of the Banking Ombudsman Scheme are available on RBI’s website www.rbi.org.in. The name and contact details of the Nodal Officers of the banks are available in their respective official website. You may also refer to RBI Press Release, 2014-2015/2374 - RBI advises Banks to appoint Internal Ombudsman (issued to Public Sector Banks, and some Private Sector and Foreign Banks) dated May 11, 2015 (available on our website www.rbi.org.in under the link ‘Press Releases’), wherein we have advised all public sector banks and some private sector and foreign banks to appoint an internal ombudsman. The bank's internal ombudsman will be a forum available to bank customers for grievance redressal before they can even approach the Banking Ombudsman.
59 Information about Regional Rural Banks (RRBs)

There are 56 Regional Rural Banks (RRBs) in the country. All the RRBs are included in the second schedule to RBI Act, 1934.

The list of all RRBs can be accessed by RBI website using the following path:
www.rbi.org.in>> Home>>Consumer Education & Protection>>For common person>>useful information >>Financial agents>>Banks in India

60 Whether any bank can obtain revival letter/acknowledgement of debt after the loan account become NPA? Any circular/notification of RBI regarding the above matter may be also furnished.

Reserve Bank of India has not issued any specific instructions in this regard. However, RBI’s guidelines on asset classification and income recognition contained in the Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015, are prudential in nature and pertain to various aspects of asset classification and recognition of interest income on NPAs in banks’ profit and loss account and these guidelines do not obviate the liability of the borrower in any manner.

The above-mentioned circular is available on website www.rbi.org.in under the link ‘Notifications’.

61 Define the meaning of NPA with rule provision to ascertain its nature.

DBR instructions on classification of an account as non-performing asset (NPA) are contained in paras 2 and 4.2 of the Master Circular - Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances dated July 1, 2015.

This circular is available at website www.rbi.org.in under the link ‘Notifications’.

62

Provide the steps would follow to recover the amount from NPA account.

Provide the steps for process for recovery of NPA loan account

As per circular DBOD.NO.BP.BC.81/21.01.040/95 dated July 21, 1995, each bank is required to have a loan recovery policy which sets down the manner of recovery of dues, targeted level of reduction (period-wise), norms for permitted sacrifice/waiver, factors to be taken into account before considering waivers, decision levels, reporting to higher authorities and monitoring of write-off/waiver cases.
63 I want to know that in the matter of working capital assessment, is there any guidelines/rules requiring banks to re-assess/appraise the working capital of the borrower each year.

In terms of para 4.2.4 (ii) of the Master Circular on ‘Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances’, regular and ad hoc credit limits need to be reviewed/ regularised not later than three months from the due date/date of ad hoc sanction. In case of constraints such as non-­availability of financial statements and other data from the borrowers, the branch should furnish evidence to show that renewal/ review of credit limits is already on and would be completed soon. In any case, delay beyond six months is not considered desirable as a general discipline.

The aforesaid Master Circular is available on website www.rbi.org.in under the link ‘Notifications’.

64 List of All Nationalized Banks in India. The list of Public Sector Banks functioning in India is available in public domain on website
https://rbi.org.in/commonman/english/scripts/banksinindia.aspx
65 List of Private Sector Banks which are permitted by RBI to do banking services in India with their correspondence address available at RBI records. The list of Private Sector Banks issued licence under Section 22(1) of Banking Regulation Act. 1949 to do Banking Business in India, is available at :
https://rbi.org.in/commonman/english/scripts/banksinindia.aspx
66

(i) Whether a private sector bank / banks and branches are under the control of RBI?

(ii) What are the conditions on which these banks have to function?

Private Sector Banks are issued license by RBI under Section 22(1) of BR Act, 1949. Private Sector Banks in India are governed by the provisions of Banking Regulation Act, 1949, Reserve Bank of India Act, 1934, other relevant statutes and directions, instructions and guidelines issued by RBI from time to time.
67 What are the guidelines and documents that are required for opening of a Universal Bank in the Private Sector? Applications for new banks can be submitted to RBI under the Guidelines for ‘on tap’ Licensing of Universal Banks in the Private Sector, dated August 1, 2016, as issued by RBI vide press release 2016-2017/281. The same can be accessed through the web link
https://rbidocs.rbi.org.in/rdocs/Content/PDFs/GOTL01082016BB321081EF5A45A489080187CA4CA690.PDF

Information pertaining to Department of Communication

RIA No Information Sought Reply given/ Information provided Date of Reply
3462/11-12 DOC

Detailed policy of the Reserve Bank of India for release of advertisements in Media

The Department of Communication [DoC] prepares a panel of approved advertising agencies for use by all the Regional Offices and Central Office Departments of the Reserve Bank of India. The Advertising Agencies have to meet a detailed eligibility criteria prescribed by the RBI for being considered for empanelment. Whenever an advertisement has to be inserted in the print / electronic media, the work is assigned to an empanelled advertisement agency on rotation basis. The agencies are required to execute the work assigned to them as per the time schedules prescribed by the RBI.

The work of releasing advertisements through the media is decentralized. Except for advertisements involving large budgets and creativity, which are coordinated by the DoC, the Central Office Departments of the RBI and the Regional Offices issue advertisements locally through one of the advertisement agencies on the approved panel.

The Indian Newspaper Society (INS) publishes rules for advertising in its Handbook of Press Publicity. The DoC circulates these rules to all the Central Office Departments and Regional Offices of the RBI for their information and use.
February 17, 2012

Information pertaining to Department of Currency Management

RIA No Information Sought Reply given/ Information provided Date of Reply
RIA 5831/2013-14/DCM

Please mention physical features of following denomination of notes/coins, approved by Reserve Bank of India /mint. Dimension of following denomination of notes/coins-
Rs. 1000, Rs. 500, Rs. 100, Rs. 50, Rs. 20, Rs. 10, Rs. 5, Rs. 2, Re. 1Coins Rs. 10, Rs.5, Rs. 2, Re. 1, Re. 1/50

Dimension means diameter/thickness or length and breadth, thickness, /height /depts. in cms.

Available information in the form it exists, about the size of contemporary banknotes in the denomination of Rs. 5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 in Mahatma Gandhi Series, may be accessed on the Bank's website www.rbi.org.in on the following link-

For common person>Extra Curricular>Currency Museum>Contemporary Bank Notes>Bank Notes

Information about Re 1 and Rs. 2 notes is not available with us.

Available information, in the form it exists, on dimension of some of the coins may be accessed on the Bank's website www.rbi.org.in on the following link-

For common person>Extra Curricular>Currency Museum>Coinage
 

3297/11-12 DCM

Arrangements for minting of coins and printing of notes and names and addresses of agencies [Mints / Note Presses] in India

(i) Arrangements for minting of coins is done through the following Mints of Government of India:

(a) India Government Mint Shahid Bhagat Singh Marg Fort, Mumbai 400023
(b) India Government Mint Alipore, Kolkata 600053
(c) India Government Mint D-2, Sector -1, P.O.Box No.78 Noida 201301
(d) India Government Mint IDA Phase, Cherapally (R.R.District) Hyderabad 500051

Arrangements for printing of notes is done through the following Currency Presses:

(a) Currency Note Press Nashik Road - 422101
(b) Bank Note Press Dewas 455001
(c) Bharatiya Reserve Bank Note Mudran Pvt. Ltd. Note Mudran Nagar Mysore 570003
(d) Bharatiya Reserve Bank Note Mudran Pvt. Ltd. Salboni - 721132

February 7, 2012

2886/11-12 DCM

Procedure & Terms of supply of new currency in various chests of banks

(i) As regards the procedure, allocation of notes and coins to Reserve Bank of India offices is made on the basis of indent placed to presses and mints. Offices of Reserve Bank of India arrange remittances to currency chests under their jurisdiction as per the periodical indents placed by the currency chests and stocks available with them as well as with the currency chest. Currency chest branches in turn supply notes and coins received from Reserve Bank of India offices to other branches linked to them. There are no terms and conditions.

January 13, 2012

RIA 2439/2007-08

What are the different forms and value of Rupee accepted as per Indian law?

When does an in-use rupee form become invalid or not acceptable? is there any Govt order that describes an invalid form of rupee?

Is a torn/damaged rupee note valid?

What damage will make rupee note invalid (eg complete torn apart note ,half torn note etc. ?

What are various options available for one to follow to make an invalid rupee note valid.

Bank note/ coins are legal tender in payment or on account as indicated below:

(i) Banknote of any denomination and coin of any denomination not lower than a rupee for any sum.

(ii) In case of a half rupee coin for any sum not exceeding 10 rupees.

(iii) In the case of any other coin for any sum not exceeding one rupee.

The Central Government may, by notification in the gazette, declare that with effect from such date as may be specified, any series of bank notes of any denomination shall cease to be legal tender. Further, no person shall of right be entitled to recover from the Government or the Reserve Bank of India, the value of any lost, stolen, mutilated or imperfect currency note of Government of India or banknote. The value of imperfect / mutilated note may be refunded as a matter of grace subject to conditions and limitations.

Soiled bank notes (i.e. notes which have become dirty and due to excessive use or double numbered banknote cut into two pieces but on which both the numbers are intact) can be exchanged for full value at Reserve Bank of India or any commercial bank branch.

The public can get value of mutilated notes (i.e. notes which are torn,disfigured, burnt, washed, eaten by white ants etc.) as a matter of grace, as laid down in the RBI Note Refund Rules 1975 (as amended up to 1980) after adjudication. Currently, provisions exist for payment of full, half or no value as far as bank notes of Rs.10 and above are concerned. As regards Re.1/-, Rs.2/-, and Rs.5/- notes, the tenderer can get either full or no value depending upon the condition of the note. Mutilated notes can be tendered at Reserve Bank of India Offices/designated bank branches.

The following types of banknotes are not eligible for payment under RBI Note Refund Rules, 1975 (as amended up to 1980)

A banknote which is

  • less than half the area of the full note.

  • devoid of the major portion of the number on an undivided area i.e. the prefix and three digits or four digits of the number in banknotes up to and inclusive of Rs.5/- in respect of banknotes of Rs.10/- and above where this inadequacy is present at both the numbering panels.

  • Cancelled by any office of Reserve Bank of India or against which the value has already been paid.

  • found to be forged / counterfeit.

  • Deliberately cut or tampered, carrying extrinsic words or visible representation intended to convey or capable of conveying any message of a political character

    Notes can be exchanged / tendered for adjudication over the counters of Reserve Bank of India Offices/designated bank branches. Mutilated notes can be sent by post for adjudication to the nearest Issue Office of Reserve Bank of India.

July 25, 2008

2
RIA 135/
2007-08 DCM

Instructions given by RBI to banks regarding exchange of mutilated notes.

Information on instructions given to banks on exchange of mutilated notes is in our Master Circular- "Facility for exchange of Notes and Coins" available at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3671&Mode=0 on our website.

Aug 27, 2007

1
RIA 133/2007-08 DCM

Are 25 paise and 50 paise coins withdrawn from circulation?

The 25 paise and 50 paise coins are legal tender and are not withdrawn from circulation. They may be validly used/ accepted for all transactions. RBI has issued press release to that effect and has also issued instructions to banks to display at all branches, boards/notices for information of customers/ general public to the effect that all 25 and 50 paise coins continue to be valid/legal tender and may be used for transactions in the normal course.

Aug 22, 2007.

Information pertaining to Department of Economic and Policy Research

RIA No Information Sought Reply given/ Information provided Date of Reply
2203/ 2013-14 DEPR What happen if excess currency were printed?

As detailed in the “Frequently Asked Questions” link on the Reserve Bank of India website (http://www.rbi.org.in/scripts/ FAQView.aspx?Id=39), the Reserve Bank decides the volume and value of banknotes to be printed each year. The quantum of banknotes that needs to be printed, broadly depends on the requirement for meeting the demand for banknotes due to GDP growth, replacement of soiled banknotes, inflation and reserve stock requirements. This estimation is done with the help of statistical models/techniques.

The Government of India decides the quantity of coins to be minted on the basis of indents received from the Reserve Bank. Although coins of all denominations are issued by the government, they are put into circulation through the Reserve Bank. The Reserve Bank is the sole authority for issuing banknotes in India under Section 22 of the Reserve Bank of India Act, 1934. It also derives the role of currency management from the above act.

The currency operations are carried out through its 18 issue offices, one sub-office at Lucknow, a currency chest at Kochi and a wide net work of currency chests. These offices receive fresh banknotes from the banknote printing presses. The issue offices of the Reserve Bank send fresh banknote remittances to the designated branches of commercial banks. Once the bank notes are released into the banking system, they form a part of the currency in circulation, which is the liability of the Issue Department of the Reserve Bank.

Section 34 (l) of the RBI Act requires that all bank notes issued by the Reserve Bank since April 1, 1935 and the currency notes issued by the Government of India before the commencement of operations of the Reserve Bank, be part of the liabilities of the Issue Department which stood at `12,016.24 billion as on June 30, 2013, including notes in circulation of `12,016.16 billion (Table 1).

Table 1: Reserve Bank of Indi: Issue Department Balance Sheet as at 30th June 2013
(` thousands)
2011-12 LIABILITIES 2012-13 2011-12 ASSETS 2012-13
89,169 Notes held in the Banking Department 80,169 760,096,797 Gold Coin and Bullion:  
(a) Held in India 674,316,432
11,034,645,327 Notes in Circulation 12,016,157,427 (b) Held outside India
      10,261,966,851 Foreign Securities 11,329,100,584
11,034,734,496 Total Notes Issued 12,016,237,596 11,022,063,648 Total 12,003,417,016
      2,206,548 Rupee Coin 2,356,280
      10,464,300 Government of India Rupee Securities 10,464,300
      Internal Bills of Exchange and other Commercial Paper
11,034,734,496 Total Liabilities 12,016,237,596 11,034,734,496 Total Assets 12,016,237,596
Source: Reserve Bank of India, Annual Report 2012-13

The eligible assets of the Issue Department for backing its currency liabilities consist of gold (coin and bullion), foreign securities, rupee coin, Government of India securities, internal bills of exchange and other commercial papers.

Though printing of money per-se is not inflationary, the injection of the same in to the banking system could lead to rise in prices. It may be mentioned in this context, presently the Reserve Bank does not directly monetise fiscal deficit by participating in government securities auctions (primary bond market).

The Reserve Bank however, could influence money supply by changing short-term interest rates (which impact currency demand) or by open market operations (by impacting funds available to the banking sector).

 

3117/11-12 DEPR

From where can I procure the History of Reserve Bank of India publication and what is its cost? Please mention full address and phone number of the person whom I can contact to procure the above said publication?

The Reserve Bank of India History 1935 – 1981 (3 volumes) is available at leading book stores in India. It can also be purchased by sending cheques / draft drawn in favour of Reserve Bank of India payable at Mumbai and sent to

Director
Division of Reports and Knowledge Disemination
Department of Economic and Policy Research
Reserve Bank of India, Amar Building
Sixth floor, P.M.Road, Fort, Mumbai 400 001.
Phone: 022-22603000 Extn: 4609
Click here to send email

The price of the three volume set is Rs. 3700/- (including postal charge).

January 3, 2012

4575/11-12 DEPR Please send the list of publications published by the Bank and also inform how to subscribe to the publications.

The list of major publications published by Department of Economic Policy Research is given below:

1. RBI Bulletin

2. Weekly Statistical Supplement (WSS)

3. Annual Report

4. Report on Trend and Progress of Banking In India

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March 26, 2012

RIA No  4650/ 2013-14

1. When we say that the current account deficit of India is for say x Billion, what exactly is the period that we are referring to. India’s current account deficit is compiled on quarterly basis capturing all the current account transactions of balance of payments which take place between resident and non-resident entities during a particular quarter. Period coverage is clearly indicated in the Press Release and Statements on the balance of payments (i.e., Annual, half yearly or quarterly).

March  04, 2014

2. Is it updated on daily basis or on monthly basis.

As mentioned under 1, CAD is compiled on a quarterly basis

RIA 78/2014-15

Which factors influencing price of gold in India

How it affected Indian Economy & Dollar price

Since India imports gold from international market, its domestic prices (in India) are largely influenced by international gold prices. In addition to international price of gold, importer has also to pay customs duty of 10 per cent on value of imported gold which gets added to final local price of gold in India. Apart from these two major factors, there could be some impact of domestic demand and supply factors, which might be impacting local price of gold in India.

The international price of gold has increased significantly since 2005-06 which were broadly reflected in trend in domestic gold prices as well. High gold prices, both in international and domestic market, in turn impacted India’s import of gold in these years. This eventually led to stress in India’s balance of payments as current account deficit (CAD) widened in recent years. India’s CAD widened from US$ 48.1 billion in 2010-11 to US$ 78.2 billion in 2011-12 and US$ 88.2 billion in 2012-13. High CAD had also put downward pressure on rupee exchange rate against dollar in 2012-13 and Q1 of 2013-14. However, a sharp decline in international gold prices in 2013-14, along with various measures undertaken by the Government and the Reserve Bank helped in reducing gold imports during 2013-14. With lower imports, India’s CAD also narrowed sharply to US$ 32.4 billion in 2013-14. In recent months, rupee exchange rate against dollar has also stabilised.

Table 1: Gold Prices

Year Price Percentage Change over Previous Year
Rs. Per 10 gram (Mumbai) US$ per troy ounce (London) Rs. Per 10 gram (Mumbai) US$ per troy ounce (London)
2004-05 6145.38 413.95 7.5 9.6
2005-06 6900.56 476.58 12.3 15.1
2006-07 9240.32 628.41 33.9 31.9
2007-08 9995.62 765.78 8.2 21.9
2008-09 12889.74 867.19 29.0 13.2
2009-10 15756.09 1023.03 22.2 18.0
2010-11 19227.08 1293.53 22.0 26.4
2011-12 25722.42 1644.87 33.8 27.2
2012-13 30163.93 1653.51 17.3 0.5
2013-14 29190.39 1326.68 -3.2 -19.8
 

Information pertaining to Deposit Insurance and Credit Guarantee Corporation of India (DICGC)

RIA No Sr No Query Our Reply
RIA 4560/14-15

1.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a savings bank account holder of the bank?

If any Indian Bank fails in terms of Section 16(1) of the DICGC Act, 1961 “ the liability of the Corporation in respect of an insured bank will be limited to the deposits as on the date of the cancellation of the registration”.

Each depositor in a bank is insured up to a maximum of ` 1,00,000/-(Rupees One Lakh) for deposits either in savings account, current account or fixed deposits held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

 If more than one deposit accounts (Savings, Current, and Recurring or Fixed deposit) are jointly held by individuals in one or more than one branch of a bank and if their names appear in the same order, then these joint accounts are considered as held in same capacity and same right. Accordingly, the balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of Rupees one lakh only and is paid after setting off any amount legally entitled to be recovered from the depositor by the bank.

However, in terms of revised guidelines issued on April 26, 2007, if individuals open more than one joint accounts in which their names are not in the same order or group of persons are different ,then the deposits held in these joint accounts are considered as held in different capacity and different right. Accordingly insurance cover will be available separately up to Rupees one lakh only to every such account where the names are appearing in different order or names are different. This has been explained in detail in the illustration. (Annex)

Insurance is extended only to the cash deposits held by the depositors of insured banks.

2.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a Current holder of that bank?

3.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a fixed deposit account holder of that bank?

4.

In case of dacoits or fire incident in the bank , what will be the amount of compensation to be paid to a locker holder in lieu of his belongings (gold silver jewellery) kept in the locker of that bank?


Annex

Deposits held in joint accounts (revised w.e.f. April 26, 2007)

If more than one deposit accounts (Savings, Current, Recurring or Fixed deposit) are jointly held by individuals in one or more branch of a bank say three individuals A, B & C hold more than one joint deposit accounts in which their names appear in the same order then all these accounts are considered as held in the same capacity and in the same right. Accordingly, balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of `1 lakh.

However, if individuals open more than one joint accounts in which their names are not in the same order for example, A, B and C; C, B and A; C, A and B; A, C and B; or group of persons are different say A, B and C and A, B and D etc. then, the deposits held in these joint accounts are considered as held in the different capacity and different right. Accordingly, insurance cover will be available separately upto rupees one lakh to every such joint account where the names appearing in different order or names are different.

Illustrations

Account (i)
(Savings or Current A/C)
First a/c holder- "A"
Second a/c holder - "B"
Maximum insured amount upto `1 lakh
Account (ii) First a/c holder - "A"
Second a/c holder - "C"
Maximum insured amount upto `1 lakh
Account (iii) First a/c holder - "B"
Second a/c holder - "A"
Maximum insured amount upto `1 lakh
Account (iv) at Branch ‘X’ of the bank First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "C"
Maximum insured amount upto `1 lakh
Account (v) First a/c holder - "B"
Second a/c holder - "C"
Third a/c holder - "A"
Maximum insured amount upto `1 lakh
Account
(vi)( (Recurring or Fixed Deposit)
First a/c holder - "A"
Second a/c holder - "B"
The account will be clubbed with the a/c at (i)
Account (vii)
At Branch ‘Y’ of the bank
First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "C"
The account will be clubbed with the a/c at (iv)
Account (viii) First a/c holder - "A"
Second a/c holder - "B"
Third a/c holder - "D"
Maximum insured amount upto `1 lakh

Information pertaining to Financial Market Department

RIA No Information Sought Reply given/ Information provided Date of Reply
1
RIA 1124, /2007-08
FMD

Details of Memorandum of Understanding entered between the Reserve Bank of India and the Ministry of Finance, Govt of India, detailing the rationale and operational modalities of the Market Stabilisation Scheme.

The details are available on our website www.rbi.org.in at http://www.rbi.org.in/scripts/ BS_PressReleaseDisplay.aspx?prid=9886

January 31, 2008
1654/13-14 FMD

On which date was Indian currency Rupee devalued in terms of American Dollar for the first time and what were the reasons for the devaluation?

 

Under RTI Act, furnish the reasons for devaluation of Rupee in terms of Dollar as stated by the Government, in Hindi and English.

Consequent to the devaluation of Pound Sterling, Rupee was automatically devalued to the same extent (as the Pound Sterling) on 18 September 1949. Rupee was again devalued on June 06, 1966 to correct the external payments which had reached a state of critical disequilibrium. The measure was also resorted to with a view to maintain the existing exports by bringing about a better alignment between internal and external prices and thus giving exports greater competitive strength. Corresponding new rate of exchange was Rs.7.50 to 1 US dollar as against the previous rate of Rs.4.76 to 1 US dollar.

As regards the two way movement of exchange rate of Indian Rupee, it is advised that the Reserve Bank does not control the foreign exchange rate of Rupee. The exchange rate of the Rupee is largely determined by demand and supply conditions in the foreign exchange market. The Reserve Bank’s role is to maintain stability in the foreign exchange market by ensuring orderly conditions without targeting a pre-specified level or band for Rupee’s exchange rate.

October 15, 2013
2627/13-14 FMD

What measure has been taken to stable or strong Indian Rupees (INR) as compared to US Dollar or other currency. Please provide all the document like minutes or meeting, circular or other related document.

In recent times, in order to stabilize the value of rupee, RBI has taken various measures like clamping restrictions on import of gold, tightening the position limits on currency futures, prohibiting arbitrage trades between futures and OTC markets, rationalizing forex outflows by residents and encouraging capital inflows.

Information on various measures taken is available in detail in the relevant Press Release on the following link-
http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx

November 25, 2013

Information pertaining to Foreign Exchange Department

RIA No Information Sought Reply given/ Information provided Date of Reply
1
RIA 422/05-06
FED

RBI permission for carrying samples while proceeding on business promotion tours abroad.

No permission or approval of the Reserve Bank of India is required for carrying samples as baggage, while traveling abroad. However, applicant may check with Customs Authorities regarding applicability of Customs Baggage Rules

April 9, 2006
2
229/06-07
FED

1. Eligibility of borrower under Automatic Route of ECB for the purpose of importing capital goods (Fishing Vessels).

2. Whether terms with the lender (Foreign supplier of Equipment) related to debt servicing are in conformity with RBI guidelines.

3. Can any department or Ministry of Government of India other than RBI or Ministry of Finance set additional conditions in this matter? Has RBI delegated any authority to any other Ministry to interfere in this procedure or only RBI is the sole authority in this matter?

Eligibility of borrower is laid down in A.P. (DIR Series) Circular No.5 dated August 1, 2005 which is available on our website www.rbi.org.in at the link http://rbidocs.rbi.org.in/rdocs/notification/PDFs/65065.pdf

Terms of debt have to be in conformity with A.P. (DIR Series) Circular No.5 dated August 1, 2005.

External Commercial Borrowing (ECB) Policy is framed by Government of India in consultation with Reserve Bank of India. Government of India, Ministry of Finance has delegated authority to administer ECB Policy to Reserve Bank of India. ECB can be raised for end-uses specified in the policy. However, transactions like import are governed by the respective policies e.g. Foreign Trade Policy of the Directorate General of Foreign Trade. In other words, if further approval or permission is required from any other regulatory authority or Govt under the relevant laws/regulations, the applicant should take the necessary approval of the concerned agency before effecting the transaction.

Sept 20, 2006.
3
378/07-08
FED

Whether any permission / approval / registration is required from RBI in case of royalty to a Foreign company by an Indian company in consideration of a Trade mark / Franchise Agreement ? If yes, what are the terms and conditions for the same?

Whether there is any notification / regulation governing the payment of royalty to a Foreign Company by an Indian Company to acquire the trademark rights of the foreign company?

Whether there is any restriction on the payment of royalty to the parent foreign companies and payment of royalty for use of TRADE MARK and brand name / Franchise rights without technology transfer under the automatic route of Reserve Bank of India?

Permission from Reserve Bank of India is not required.

The instructions/clarification on purchase of Trademarks for use in India/ payment of Royalty is given in terms of the AP Circular No 14 dated November 28, 2006 and item number 8 of Sch. II to FEM (CAT) Rules, 2000. AP (DIR Series) Circular No. 76 dated February 24, 2004 is placed on our website at the link http://rbidocs.rbi.org.in/rdocs/notification/PDFs/74403.pdf and http://rbidocs.rbi.org.in/rdocs/notification/PDFs/51521.pdf respectively.

 

Sept 21, 2007
4
495/07-08
FED

RBI guidelines to Indian Residents for purchase of residential property abroad

RBI guidelines on whether Banks operating in India are allowed to give Housing loan for such transactions

The revised guidelines are , the Indian Residents can purchase an immovable property outside India up to a ceiling limit of USD 2,00,000 per financial year under Liberalised Remittance Scheme (LRS).

In terms of paragraph 4 of A.P.(Dir.Series) circular no.51 dated May 8, 2007,
(available on our website at http://rbidocs.rbi.org.in/rdocs/notification/PDFs/77185.pdf)
Authorised Dealers (Banks in India) are not allowed to extend any kind of credit facilities to Resident Individuals to facilitate remittances under the LRS.

Oct 5, 2007
5
RIA 200/07-08
FED

After returning to India after three years, whether an NRI can maintain, hold and operate the foreign currency accounts, which were opened abroad during his stay abroad

Whether such an NRI, during his stay abroad for three years, can open a foreign account abroad jointly along with a close relative such as his mother, who is a resident of India.

Whether such an NRI person after return to India can transfer and make remittance abroad, from his foreign currency accounts held abroad.

As per Sub-section (4) of Section 6 of Foreign Exchange Management Act, 1999, a person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.

As regards holding such foreign account jointly with resident of India, it is not permissible as the pre-condition for opening such foreign account is that the account is opened when the person was resident outside India.

Same as (a) above.
May 16, 2008
6
RIA 1450/07-08
FED

(a) "Is it essential for a Foreign citizen availing "Home Loan" from any Bank / Commercial Bank within India to obtain a permission / No-Objection Certificate from the Reserve Bank of India?"

(b) "What are the other rules / regulations imposed by the Reserve Bank of India for them to avail of Home loans from any Bank /commercial Bank within India?

(If the citizen under consideration is an Indian Resident)."

Foreign nationals of non-Indian origin and resident outside India require specific prior approval of the Reserve Bank of India for acquisition of immovable property. Further, it may be mentioned that under the general permission available, the following categories can freely purchase immovable property in India:

i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India

ii) A foreign national of Indian Origin or Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who

a. at any time, held Indian passport, or

b. who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India.

(b) If the applicant is a 'person resident in India' in terms of Section 2 (v) of Foreign Exchange Management Act, 1999, he/she does not require the Reserve Bank of India approval from Foreign Exchange Management Act angle for purchase of immovable property in India. 

Instructions/guidelines/documentation regarding availing Home loan are decided by the commercial bank granting loan. 

 
APPEAL 453/ RIA 1873/07-08
FED

" Can a NRI open a foreign account during his stay abroad, initially in his single name and then add his family member's name"

In terms of Regulation 3 of FEMA Notification No.10/2000-RB dated May 3, 2000, no person resident in India shall open or hold or maintain a foreign currency account, provided further that the Reserve Bank of India(RBI) may on an application made to it, permit a person resident in Ida to open or hold or maintain a foreign currency account subject to such terms and conditions as may be considered necessary. Accordingly, the resident in India will have to approach RBI for our specific approval for our opening/holding/maintaining a foreign currency account with a NRI outside India. As such a resident in India requires RBI approval to open a foreign currency account outside India along-with an NRI.

June 26, 2008
RIA 2388-07-08
FED

Do banks signing contracts for derivatives trade in foreign currency with foreign banks, require RBI permission?

Are banks authorised to trade in derivative product in foreign currency without having written a derivative contract for Corporate or SMEs?

Are Banks to Banks derivatives contracts permitted by RBI without permission?

Is it mandatory for banks to inform RBI for the amount hedged in foreign currency in derivative trade written within stipulated period. Is it mandatory to inform about the nature of Derivative product written?

Any guidelines issued by RBI for foreign currency derivatives contract or agreements.

Can a Corporate/ SMEs be allowed to enter into agreement for sell of foreign currencies without permission from RBI? Are banks permitted to buy foreign currency from corporate/SMEs?

If without any underlying a derivative is written by Indian Banks with Foreign banks, can it be termed Speculative Trade in foreign currencies or not?

If any records submitted to RBI by the following banks, relating to Foreign exchange transaction written by them under Derivatives…

No. Inter bank foreign exchange dealings are permitted freely subject to Board approved policy and limits for treasury functions of which open position and aggregate gap limits are required to be approved by RBI.
Yes.

Yes. Inter bank transactions are permitted without Reserve Bank of India permission.

No. It is not mandatory to report back to back trades in foreign currency.

The guidelines for foreign currency derivative contracts are outlined in the Master Circular 'Risk Management and Inter Bank Dealings" dated July 1, 2008, available on our website: www.rbi.org.in under 'Notification'. However, if you desire to obtain a hard copy of the circular, you may arrange to pay Rs.102/-(Rs.2/- X 52 pages) towards photocopying charges by DD/Bankers' Cheque/PO drawn in favour of Reserve Bank of India(RBI)or deposit cash, at any of the RBI offices.

Yes. A corporate /SME may sell/buy foreign currency in respect of a transaction permitted under the Foreign Exchange Management Act, 1999.

No. Because Authorised Dealer banks are free to undertake forex transactions with banks overseas for adjustment of own position or for initiating trading positions in the overseas markets.

Trade by trade transactions are not reported to Reserve Bank of India by the banks. However, the Foreign Turnover Data reported by banks, contains forwards and swaps and is reported on a weekly basis in the Weekly Statistical Supplement which is published on our website: www.rbi.org.in under Publications< Weekly.

July 9, 2008.
RIA 3307/08-09 FED Guidelines/ Rules framed by Reserve Bank of India regarding sale of property by the Non-Resident of India at India in lieu of sale consideration and information is required whether N.R.I. Sells his property in India in consideration of money then he require permission of the R.B.I. and also has to pay tax and procedure for taking the sale consideration amount out of India and when sale consideration is above Rs. 10 Lacs.

Non – Resident Indians have been granted general permission under Regulation 3 of Notification No FEMA 21/2000 – RB dated May 3, 2000, for acquisition / transfer of immovable property other than agriculture land, farmhouse, plantation – property in India provided the same is in terms of the aforesaid Regulations. For repatriation / remittance of sale proceeds you may please refer to Regulation 6 of Notification ibid read with Notification No FEMA 13/ 2000 – RB dated May 3, 2000. This information is available on our website www.rbi.org.in (Homepage > Notification > FEMA > Notification).

July 20, 2009
2251/13-14 FED

NRI/ PIO have following two options for their current income:

1. Remit outside India
2. Transfer/ credit to NRE A/c

Whereas in case of balance held in NRO A/c- only remittance outside India is permitted and transfer / credit to NRO A/c is not permitted.

May I know the reasons recorded for the same?
In terms of para 4 of Schedule 3 to Notification No. FEMA 5/ 2000-RB dated May 3, 2000, balances in NRO accounts are not eligible for remittance outside India without the approval of Reserve Bank. Funds received by way of remittances from outside India in foreign exchange which have not lost their identity as remittable funds will only be considered by Reserve Bank for remittance outside India. Where an account (current / savings) is opened by a foreign tourist visiting India, with funds remitted from outside India in a specified manner or by sale of foreign exchange brought by him to India, authorized dealers may convert the balance in the account at the time of departure of the tourist from India into foreign currency for payment to the account holder provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon. However, in terms of A.P.(DIR Series) Circular No. 67 dated January 13, 2003, AD banks may allow remittances up to USD one million from the NRO account of NRIs / PIO subject to conditions. In view of the above, transfer of funds from NRO account to NRO account is not permissible. November 26, 2013
4537/
13-14
FED

Please inform, is an exporter allowed to sell goods on:

(A) 360 days credit from the date of Bill of Lading.

And

(B) If not then, up to 180 days credit from the date of bill of lading of such exports.

In terms of Section 8 of FEMA 1999 any amount of foreign exchange due or accrued is required to be realized and repatriated to India within such period and in such manner as may be specified by the Reserve Bank. Further, in terms of Notification No. FEMA 176 / 2008-RB dated July 23, 2008 (Export of Goods and Services) the period of realization / repatriation is 12 months from the date of export (copy enclosed).

The present instructions are as under;

(i) Units located in Special Economic Zones (SEZs) – period of realization / repatriation is 12 months from the date of export in terms of A. P. (DIR. Series) Circular No.108 dated June 11, 2013 (copy enclosed).

(ii) Goods exported to a warehouse established outside India – period of realization / repatriation is 15 months in terms of Regulation 9 of Notification No. FEMA 23 / 2000–RB dated May 03, 2000 (Export of Goods and Services) (copy enclosed).

(iii)  Status Holder Exporters – period of realization / repatriation is 12 months in terms of A. P. (DIR. Series) Circular No.35 dated April 01, 2002 (copy enclosed).

(iv) 100% Export Oriented Units and units set up under EHTPs / STPs / BTPs – period of realization / repatriation is 12 months in terms of A. P. (DIR. Series) Circular No.25 dated November 01, 2004 (copy enclosed).

(v) In cases where exporters not falling within the above categories have to realize and repatriate the export proceeds within a period of 9 months from the date of export in terms of A. P. (DIR. Series) Circular No. 105 dated May 20, 2013 read with A. P. (DIR. Series) Circular No.14 dated July 22, 2013 (copies enclosed).

March 07, 2014

RIA No4601/ 2013-14

(i) I am an Indian and I perform my business abroad.

(ii) While returning from abroad I have foreign currency.

(iii) Can I deposit my foreign currency in form of cash in my EEFC (Exchange Earners Foreign Currency) Account at any authorised Bank in India?

Our comments on issues raised are :

(1) In terms of Regulation 4 (i) of Notification No. FEMA 14 / 2000-RB dated May 03, 2000; payment for export may also be received in foreign currency notes from a buyer during his visit to India, provided the foreign currency so received is surrendered within the specified period to the AD Bank. (copy enclosed)

(2) Further, deposits in the EEFC Account can only be in the form of permissible credits to such an account as per Regulation 4 of Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000 notified vide Notification No.FEMA.10/2000-RB dated 3rd May, 2000. (copy enclosed)

March 12, 2014

RIA 5731 Whether acquisition of land outside India by an Indian Entity for purposes of Residential / Commercial Development projects and Agricultural Commercial Farming projects is covered under Automatic Approval.

A reference may be invited to the provisions under Regulation 6A of the Notification No. FEMA.120/RB-2004 dated July 07, 2004, as amended from time to time.

Available at Link: http://rbi.org.in/Scripts/BS_Fema Notifications.aspx?Id=2126

 

Information pertaining to Human Resources and Personnel Management

RIA No Information Sought Reply given/ Information provided Date of Reply

90/2008-09

Total no of Officers with break-up of Grades (A to F)
Total no of Class III employees.
Total no of Class IV employees.

Actual Staff Strength as on June 30, 2008.
Sr.No Class I Actual Strength
1 Senior Officer in Gr.'F' 99
2 Senior Officer in Gr.'E' 231
3 Senior Officer in Gr.'D' 353
4 Officer in Gr.'C' 860
5 Officer in Gr.'B' 1427
6 Officer in Gr.'A' 5602
7 Treasurer in Gr.'C' 18
8 Dy.Treasurer in Gr.'B' 58
9 Asstt.Treasurer in Gr.'A' 245
  Total 8893
  Class III  
10 Total in Class III 4987
  Class IV  
11 Total in Class IV 7346

August 20, 2008

Information pertaining to Monetary Policy Department

RIA No Information Sought Reply given/ Information provided Date of Reply
2751/11-12 MPD

Presently, what is the yearly rate of interest / return on savings accounts in banks?

The Reserve Bank has deregulated the savings bank deposit interest rate with effect from October 25, 2011. Banks are now free to determine their savings bank deposit interest rate, subject to the following conditions:

(i) First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit

(ii) Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.

December 28, 2011
2168/12-13 MPD

Factors leading to increasing and decreasing of interest rate?

The Reserve Bank deregulated the interest rates on advances above Rs.2 lakh effective October 18, 1994. Effective July 1, 2010, banks are free to determine interest rates on all rupee advances (irrespective of the amount) with the approval of their respective Boards, subject to condition that all rupee advances should be only at or above their Base Rates. Further, interest rates on term deposits were deregulated by the Reserve Bank effective October 22, 1997 and savings deposits effective October 25, 2011. In a deregulated environment, banks are, therefore, free to determine their interest rates both on deposits and advances based on their commercial judgment.

Banks determine their interest rates on loans by taking into consideration various factors such as cost of funds, operational expenses, minimum margin to cover regulatory requirements of provisioning and capital charge, profit margin, customer / product specific charges, risk premia, term premia, etc. The movement in the Reserve Bank’s repo rate (key policy rate for signaling the monetary policy stance) also guides banks in deciding their interest rates.

November 6, 2012

6046

I request you to please furnish me the following Reserve Bank of India’s monetary policy key rates, from 01.04.2011 to 31.03.2014 with dates from which these rates have become applicable for the banks in India.
1. Bank Rate
2. MSF Rate
3. Repo Rate
4. Reverse Repo Rate
5. CRR
6. SLR

The historical data, including the period from 01.04.2011 to 30.03.2014, in respect of Bank Rate, MSF Rate, Repo Rate, Reverse Repo Rate, CRR and SLR are available on the website of the Reserve Bank at http://dbie.rbi.org.in under tab ‘Key Rates’. As such the information sought by you is already available in the public domain.

 

Information pertaining to Non-Banking Financial Institutions

RIA No Information Sought Reply given/ Information provided Date of Reply
3

The Non-Banking Financial Companies are lending cash against gold deposits and collecting interest against the loan amount. How much percentage of the cost of the gold deposited can be given as loan and what shall be the interest to be collected against the loan according to the Reserve Bank of India’s specifications.

In terms of extant instructions, Non-Banking Financial Companies (NBFCs) are required to maintain a Loan-to-Value (LTV) ratio not exceeding 75 percent for loans granted against the collateral of gold jewellery.

The interest rates charged by NBFCs are governed by the terms and conditions of the loan agreement entered into by the borrower and the NBFC. The Reserve Bank has not specified any interest rate that can be charged by any NBFC. However, in order to ensure transparency in such matters, the NBFCs have been advised by the Reserve Bank to adopt a Fair Practice Code with the approval of their Boards. They are also advised to lay out appropriate internal principles and procedures in determining interest rates and other charges. The latest circular issued to NBFCs on Fair Practices Code is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code. http://rbi.org.in/scripts/BS_ViewMasterCirculardetails.aspx

April 10, 2014
RIA No4357/ 2013-14 1. Kindly inform me about the maximum rate of interest that can be charged by a Non-Banking Financial Company in regard to loans lent to loanees/borrowers against the security of Gold Ornaments.

The Reserve Bank has not prescribed any ceiling on interest rate that can be charged by an NBFC. The interest rate chargeable, on all loans including loans against Gold Ornaments, is governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC. However, in order to ensure transparency in such matters, the NBFCs have been advised by the Reserve Bank to adopt a Fair Practices Code (FPC) with the approval of their Boards. The latest circular issued to NBFCs on FPC is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code

Available at the link: http://rbi.org.in/scripts/ BS_ViewMasterCirculardetails.aspx

February 25, 2014
2. Kindly furnish me the prevailing rules, regulations, norms, notifications, orders etc. pertaining to the charge of interest on loans lent by Non-Banking Financial Companies as against security of Gold Ornaments.

Instructions in regard to rate of interest chargeable on all types of loans including loans against security of Gold Ornaments are consolidated in our Master Circular on the Fair Practices Code referred to above.

3. Kindly inform me as to the applicability of the AP Pawn Brokers Act, 2002 to the (Act No. 6 of 2002, passed by the Andhra Pradesh Legislature & came into force with effect from 15.10.2003) in regard to the loans and advances lent by Non-Banking Financial Companies to the public at large against the security of Gold/gold ornaments.

All loans, including loans against the security of Gold/gold ornaments, granted by NBFCs, registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934, are governed by the provisions of the said Act and the guidelines issued in this regard by the Reserve Bank.

4. Kindly inform me the prevailing rules, regulations, norms, guidelines, notifications etc. in regard to auctioning of securities by Non-Banking Financial Companies in the event of failure of the loanees to repay the borrowed amount.

Our guidelines with regard to auction of jewellery, in the event of non-repayment of loans, are available in Para C of our above referred circular, read with para V of our circular DNBS.CC.PD.No.356 / 03.10.01/ 2013-14 September 16, 2013 on Lending Against Security of Single Product – Gold Jewellery, which is available on our website www.rbi.org.in > Sitemap > NBFC List > NBFC Notifications.

Available at the link: (http://rbidocs.rbi.org.in/rdocs/ Notification/PDFs/CCN356160913L.pdf)

5. Kindly inform me the prevailing rules and regulations in regard to maximum and minimum duration for which loans can be granted by Non-Banking Financial companies against the security of Gold ornaments and the periodicity of compounding of interest.

The Reserve Bank has not prescribed maximum and minimum duration of loans and the periodicity for compounding of interest on loans granted by NBFC against any kind of security including Gold ornaments. The Non-banking Financial Companies have discretion to determine the duration and the periodicity of compounding of interest on the loans granted. However, the rate of interest disclosed should be annualised rate so that the borrower is aware of the exact rate that would be charged to the account.

4080/
13-14
DNBS

Which of the Foreign or Indian, Private banks, NBFC, Financial Institute and the Banks/ NBFC and here quotd Bank or NBFC can charge compound interest (cumulative interest)? If they can charge cumulative interest then RBI or which of it's Department or Department of Non-Banking Supervision (DNBS) or which Authority has been permitted to charge this? Particularily which Bank / NBFC can charge cumulative interest and express in detail the permission given to them?

(1) Citi Financial Consumer Finance India Ltd. called as “Citi Financial”, (2) HDFC Bank Ltd., (3) Kotak Mahindra Bank Ltd., (4) Kotak Mahindra Prime Ltd., (5) Reliance Capital Ltd., (6) Barclays Bank Ltd., (7) ICICI Bank Ltd., (8) India Bulls.

Non-Banking Financial Companies (NBFC) are registered with the Reserve Bank under Section 45 IA of the RBI Act, 1934. The Reserve Bank has not prescribed any specific interest rate that should be charged by NBFCs or “cumulative interest”. The interest rates charged by NBFCs are governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC. Further, our Master Circular on this subject (Fair Practices Code) states that “The NBFCs should convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise, amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.”

In order to ensure transparency in such matters, NBFCs have been advised by the Reserve Bank to adopt a Fair Practices Code with the approval of their Boards. The latest circular issued to NBFCs on Fair Practices Code is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code at the link http://rbi.org.in/scripts/BS_ViewMaster Circulardetails.aspx?did=333

The Department of Non-Banking Supervision regulates and supervises the Non-Banking Financial Companies and has issued the above guidelines to them.

February 24, 2014

1
RIA 433/05-06
DNBS

Is it permissible for a non-banking financial company (NBFC) to carry on business without registering with the Reserve Bank of India? If not, and if a NBFC carries on such business, what action would be taken against such a company?

As per Section 45 IA of the Reserve Bank of India Act, 1934, no NBFC shall commence or carry on the business of non-banking financial institution (NBFI) without obtaining certificate of registration (CoR) from the Reserve Bank of India. Business activities to be carried on by such NBFCs are provided under Section 45 I(c) of the RBI Act, 1934. The Reserve Bank of India may take appropriate action against any person (NBFC) contravening the provisions of RBI Act, 1934 and the Directions issued there under.

March 28, 2006

2
RIA 461/05-06
DNBS

What are the businesses that a company which is registered as a Residuary Non-Banking Company (RNBC) with RBI can undertake?

A company registered as a RNBC is defined as a non-banking institution, in terms of the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987. RNBCs are companies which receive any deposit under any scheme or arrangement, by whatever name called, in one lumpsum of in installment by way of contributions or subscriptions or by sale of units or certificates or other instruments, or in any other manner and which, according to the definitions contained in the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, or as the case may be, the Miscellaneous Non-Banking Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1977, is not

  1. an equipment leasing company
  2. a hire purchase finance company
  3. a housing finance company
  4. an insurance company
  5. an investment company
  6. a loan company
  7. a mutual benefit company
  8. miscellaneous non-banking company, and
  9. a mutual benefit company.

April 25, 2006

3
RIA 472, 473/2005-06
DNBS

Does law permit a NBFC governed by RBI rules to disburse loan amt by cash/ through bearer cheque

The mode of disbursal of loan amounts by NBFCs is not governed by RBI regulations. As regards the business practices of NBFCs, these are matters of contract between the NBFC and the borrower and therefore the loan transaction between the borrower and NBFC is regulated by the terms and conditions of the contract. Any grievances in this regard can be raised before the appropriate courts (both civil and criminal) including the local Consumer Forums, as you may deem fit. We may also add that no guidelines have been issued by Reserve Bank relating to vehicle financing by NBFCs.

April 25, 2006

4
RIA 182, /2007-08
DNBS

Rules and Regulations to form a Banking and Non Banking Financial Organizations

As far as Non – Banking Financial companies (NBFC) are concerned, as per Section 45 – IA (1) of Reserve Bank of India Act, 1934, no NBFC shall commence or carry on business of a non – banking financial institution without –

(a) Obtaining a certificate of registration; and

(b) Having the net owned fund (NOF) of rupees twenty - five lakh or such other amount, not exceeding rupees two hundred lakh.

Currently, an NBFC requires NOF of Rs 200 lakh to be eligible for registration as a non banking financial institution and you may refer to RBI's website, www.rbi.org.in ( go to Sitemap>NBFC list>Forms/returns) for other details and specimen application form for certificate of registration to commence / carry on the business of a non- banking financial institution by a company and the requirements to be complied with and documents to be submitted to RBI by NBFCs for obtaining Certificate of Registration from RBI.

3. As regards query about licensing of new bank, at present RBI is not considering any request for opening of new banks in the private sector. As and when RBI considers it necessary to invite applications for opening of new banks in the private sector, a public announcement indicating the detailed norms for setting up a bank will be made. The same will also be made available on the RBI website www.rbi.org.in

4. Banks are regulated by Reserve Bank of India under provisions of the Banking Regulation Act, 1949 and Reserve Bank of India act, 1934.

August 21, 2007.

5
RIA 1648, /2007-08
DNBS

"Does the money lending business under hire purchase require registration / permission from RBI; if yes under what provision of law?"

Granting of License/ permission for money lending activity is under the jurisdiction of concerned State Governments. In case any non-banking financial activity (e.g. hire purchase and leasing) is to be undertaken, such activity cannot be commenced or carried on without a Certificate of Registration from RBI as per Section 45 IA of RBI Act, 1934.

April 9, 2008

2673/13-14 DNBS

Are Non-Banking Finance Companies (NBFC) in India allowed to give loans to NPA accounts of nationalized and private banks?

NBFCs lend based on their own credit appraisal mechanism.

Dec 11, 2013

Whether they are regulated to a point of Rate of Interest charged by them? Or they can charge whatsoever they would like to under the guidelines of honorable RBI?

Rate of Interest on loans is a contractual obligation between NBFC and borrower. RBI has not issued any guidelines in this regard. However, the Board of each NBFC has to adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium, etc and determine the rate of interest to be charged for loans and advances. NBFC cannot charge interest that are seen to be excessive. The rate of interest should be annualized rates so that the borrower is aware of the exact rates that would be charged to the account. Further, the rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers has to be disclosed by the NBFC to the borrower or customer in the application form and communicated explicitly in the sanction letter.

In addition, the Board of the NBFC has to adopt Fair Practice Code issued by the Bank vide Master Circular DNBS(PD) CC No. 340 / 03.10.042/ 2013-14 dated July 1, 2013 which deals, inter alia, with transparency in interest rates charged to the borrower.

 

If a NBFC is charging any amount of ROI to any client then can a complaint can be made, if yes to whom?

Grievances can be addressed to the Grievances Redressal Officer of the company. In case the NBFC does not respond, the matter can be taken up with the concerned Regional Office of the Department in whose jurisdiction the company is registered.

 

Information pertaining to Payment and Settlement Systems

RIA No Information Sought Reply given/ Information provided Date of Reply
1
674/2008-09 DPSS

Time frame prescribed by the Reserve Bank of India to different banks for clearance of local and outstation cheques.

Prescription of penalty by the Reserve Bank of India for non-clearance of cheques in the prescribed time frame

Definition and explanation of terms 'local' and 'outstation' in the context of cheque clearance by the Reserve Bank of India.

The Reserve Bank of India(RBI) has advised banks to frame their own Cheque Collection Policies (CCPs) in respect of local and outstation cheques which should include explicit mention of time frame for collection of both local and outstation cheques.

Banks have been further advised vie our circular DPSS.CO.(CHD)No.873/03.09.01/2008-09 dated November 24, 2008 to modify their CCPs in accordance with orders of the National Consumer Disputes Redressal Commission in the case No.82 of 2006 on Delays in Cheque Clearing.

Accordingly, for local cheques debit and credit shall be given on the same day or at the most the next day of their presentation in clearing. Timeframe for collection of outstation cheques drawn on state capitals/major cities/ other locations should be 7/10/14 days respectively. This timeframe is the outer limit and credit shall be afforded if the process gets completed earlier.

If there is any delay in collection beyond the prescribed period, interest at the rate specified in the cheque collection policy of the bank, shall be paid. In case the rate is not spcesified in the CCP, the applicable rate shall be the interest rate on fixed deposits for the corresponding maturity. The link to the CCP of banks has been hosted on our website www.rbi.orb.in.

Local cheques are those cheques that are drawn on branches within the jurisdiction of the Local Clearing House. All other cheques would be outstation cheques. However, there are cheques called multicity cheques and at par cheques which are payable in all cities where the drawee bank has a branch irrespective of the city on which it is drawn.

October 17, 2008

6045/11-12 DPSS

Provide the details of information, guidelines, circulars, notifications and regulations made by Reserve Bank of India in chronological order for scheduled and private banks operating in India, using OTP via phone IVR and mobile phone technology for any kind of financial as well as monetary transactions to make it more convenient and secured as a system.

RBI has issued the following guidelines to make card transactions more secured:

(i) Requirement of additional factor of authentication for online transactions except Interactive Voice Response (IVR) transactions was enabled, vide, circular RBI / DPSS NO. 1501 / 02.14.003 / 2008 - 2009 dated February 18, 2009. This circular has been placed on RBI website at the link
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4844&Mode=0

(ii) Requirement of additional factor of authentication/validation extended to IVR transaction with effect from February 1, 2011 vide, circular DPSS .CO. NO. 1503 / 02.14.003 / 2010 - 2011 dated December 31, 2010. This circular has been placed on the RBI website at the link
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6185&Mode=0

(iii) Requirement of online alerts to customers for all types of card transaction at all channels irrespective of the amount was made applicable, vide, circular DPSS. CO. PD. 2224 / 02.14.003 / 2010 - 2011 dated March 29, 2011. This circular has been placed on the RBI website at the link
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6309&Mode=0

June 27, 2012
6307/11-12 RPCD

ATM transaction is failed due to technical/network problem. Amount is not dispensed but account is debited in such circumstances. What are the rules for refund/credit of such amount? Such refund should be made within how many days?

Banks have been advised by the Reserve Bank of India, vide, circular DPSS. PD. No. 2632 / 02.10.002 / 2010 - 2011 dated May 27, 2011 that:

1. Effective from July 1, 2011, banks have to reimburse the customers, the amount wrongfully debited on account of failed ATM transactions within a maximum period of 7 working days from the receipt of the customer complaint.

2. Banks have to pay customers Rs. 100/- per day for delays beyond 7 working days from the date of receipt of the complaint.

If the complaint is not lodged within 30 days of transaction, the customer is not entitled for any compensation for delay in resolving his / her complaint.

June 27, 2012
RIA No 4541/ 2013-14

1. The date of implement of new cheques with printed name and account of cheque owner in the recognized Banks.

Reserve Bank of India vide its circular DPSS.CO.CHD.No./ 1112 / 04.07.05 / 2011-12 dated December 27, 2011 advised all banks providing cheque facility to their customers  to issue only 'CTS-2010' standard cheques across the country by September 30, 2012. Account number in such cheques should be pre-printed for current account holders and corporate customers and as far as possible to other category of customers.

However, printing the name of the account holder was not mandated by Reserve Bank of India. RBI circular issued in this regard (DPSS.CO.CHD.No. 1832 / 04.07.05 / 2009-10 dated February 22, 2010) may be referred for the purpose.

Copies of the circulars referred to above are available on the website of Reserve Bank of India under the following links :
http://www.rbi.org.in/scripts/ NotificationUser.aspx?Id=6901&Mode=0

http://www.rbi.org.in/scripts/ NotificationUser.aspx?Id=5509&Mode=0
February 17, 2014

2. The old cheques got issued prior to the date of implement of new cheques (i.e. during the year 2006) from the recognized Banks are applicable or not after the date of implement of new cheques.

Reserve Bank of India vide its circular  DPSS.CO.CHD.No.133/04.07.05/2013-14 dated July 16, 2013 notified that cheques which are not complying with CTS-2010 standards would continue to be valid but will be cleared at less frequent intervals from January 1, 2014 as detailed in paragraph 2(a) of the above referred circular.

Copy of the circular  referred to above is available on the website of Reserve Bank of India under the following link:

http://www.rbi.org.in/scripts/ NotificationUser.aspx?Id=8245&Mode=0

3. If not applicable, kindly arrange to intimate the date of disapplicable / disimplement of old cheques along with instruction, if any.

Refer to reply 2 above

Information pertaining to Rural Credit, Priority Sector Advances, Financial Inclusion etc.

RIA No Information Sought Reply given/ Information provided Date of Reply

1
RIA 408/05-06
RPCD

The Reserve Bank of India's guidelines on One Time Settlement (OTS) to small and medium enterprises

Circular RPCD.PLNFS.No.39/06.02.31/2005-06 dated September 3, 2005, which is available on our website at http://rbi.org.in/scripts/NotificationUser.aspx contains the Reserve Bank of India's guidelines on OTS to SMEs

April 4, 2006

2
RIA 513/05-06
RPCD

a) What is the maximum rate of interest on agricultural loans that can be charged by the financial institutions under RBI?

c) As per the special relief measures announced in the 2004 budget speech of the Hon. Central Finance Minister in respect of peasants affected by natural calamity, it is observed from the website that the loans of the farmers in the drought affected districts can be closed by repaying the balance outstanding in the principal as on 31.3.2001 and amount paid after 31.3.2001 should be deducted from the loan balance. Similarly, those who are not capable of repaying the loan should be given moratorium for two years and the repaying period should be extended by next three years. Are the banks liable for extending the above relief measures to the deserving farmers? If so, it is requested that a copy of the circular issued by RBI in this regard may kindly be forwarded.

d) What is meant by the word moratorium as seen in the circular? Do the financial institutions have permission to force the loanees for repayment of the principal or interest during this moratorium period?

e) Is there any One time Settlement Scheme in vogue in respect of defaulters of agricultural loans? If so, details of the same.

a) As per the interest rate policy of RBI, interest rates on loans given by commercial banks have been deregulated, except that the interest rate on loans up to Rs 2 lakh should not exceed the Benchmark Prime Lending Rate (BPLR) of the banks concerned. Commercial banks are, therefore, free to decide their lending rates on loans above Rs.2 lakhs, subject to the announcement of BPLR. Banks are also free to lend at sub-BPLR rates to creditworthy borrowers based on an objective and transparent policy, subject to the approval of their Boards. Banks decide their BPLR by taking into account, inter alia, their cost of funds, transaction cost and risk cost. As regards RRBs and Co-operative Banks, the interest rates on loans have been completely deregulated.

c) RBI vide circular dated RPCD.No.Plan.BC.92/ 04.09.01/ 2004-05 dated June 24, 2004.(Copy available on our website www.rbi.org.in under the title 'Notification') had advised all scheduled commercial banks to extend the relief measures.

d) Since moratorium implies postponement of payment of interest and/or repayment of principal/installments, Financial Institutions would not force the loanees for repayment.

e) RBI vide circular RPCD.No.Plan.BC.92/ 04.09.01/ 2004-05 dated June 24,2004 had advised all scheduled commercial banks to implement an OTS Scheme for Small and Marginal Farmers. Moreover, RBI vide its circular RPCD.PLNFS.BC.No. 56/ 06.02.31/ 2005-06 dated December 27, 2005 had advised the scheduled commercial banks (including RRBs and Local Area Banks) to provide a simplified mechanism for one time settlement of loans where the principal amount is equal to or less than Rs.25,000/- and which have become doubtful and loss assets as on September 30, 2005. Copies of the above circulars are available on our website www.rbi.org.in under the title 'Notifications' at http://rbi.org.in/scripts/NotificationUser.aspx?Id=1724&Mode=0 and http://rbi.org.in/scripts/NotificationUser.aspx?Id=2667&Mode=0 respectively.

May 3, 2006

3
RIA 718/05-06
RPCD

What are RBI guidelines on Education Loan Scheme?

A "New Education Loan Scheme" was formulated by IBA in consultation with the Govt of India and circulated by RBI to all scheduled commercial banks vide circular RPCD.PLNFS.BC.83/06.12.05/2000-01 dated April 28, 2001 for implementation. The circular is available on our website www.rbi.org.in. The Scheme provides broad guidelines to the banks and implementing bank will have the discretion to make changes suiting to the convenience of students/parents etc.

June 21, 2006

4
RIA 718/05-06
RPCD

What are RBI guidelines on Education Loan Scheme?

A "New Education Loan Scheme" was formulated by IBA in consultation with the Govt of India and circulated by RBI to all scheduled commercial banks vide circular RPCD.PLNFS.BC.83/06.12.05/2000-01 dated April 28, 2001 for implementation. The circular is available on our website www.rbi.org.in. The Scheme provides broad guidelines to the banks and implementing bank will have the discretion to make changes suiting to the convenience of students/parents etc.

June 21, 2006

5
1800/08-09 RPCD

Whether the operation of all unlicensed DCCBs is within the meaning of the Banking Regulation Act, 1949 (AACS)

In terms of Section 22 of the Banking Regulation Act, 1949 (AACS) a co-operative society, which was carrying on business as cooperative bank at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 and applied for license to the Reserve Bank before the expiry of three months from such commencement, can carry on banking business until it is granted a license or is, by a notice in writing, notified by the Reserve Bank that the license cannot be granted to it. All unlicensed DCCBs come under the above category and they are working within the meaning of the Banking Regulation Act, 1949 (AACS).

February 27, 2009.
6 5924/11-12 RPCD

What is the definition of Financial Inclusion?

What are its objectives?

What is the relation of Financial Inclusion and Financial Inclusion Plan?

Financial Inclusion can be defined as the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated mainstream institutional players.

Our broad objective is to take banking to all excluded sections of the society, rural and urban. Our attention was specifically attracted to provide banking services to all the 6 lakh villages and meet their financial needs through basic financial products like savings, credit and remittance for obvious reasons. Though, the focus initially was to cover villages with population above 2000 by March 2012, banks have since drawn up their Board approved Financial Inclusion plans to put in place a roadmap for extending banking services in all villages in an integrated manner over a period of next 3 to 5 years.

With a view to increasing banking penetration and ensuring financial inclusion, domestic commercial banks, both in the public and private sectors, were advised to draw up Board-approved Financial Inclusion Plans (FIP) with a view to rolling them our over the next three years. The same were submitted to the Reserve Bank. Banks were advised to devise FIPs congruent with their business strategy and comparative advantage to make it an integral part of their corporate plans. These plans broadly include self-set targets in respect of rural brick and mortar branches opened; business correspondents (BC) employed; coverage of unbanked villages with population above 2000 as also other unbanked villages with population below 2000 through branches / BCs / other modes; no-frill accounts opened including through BC-ICT; Kisan Credit Cards (KCC) and General Credit Cards (GCC) issued; and other specific products designed by them to cater to the financially excluded segments. The implementation of these plans is being closely monitored by the Reserve Bank.

June 8, 2012
RIA 4913 RPCD

1. Request to send copies of rules and regulations given to banks of Gujarat State for the P.N.E.G.P. Scheme

The PMEGP Scheme was formulated by Government of India and circulated by Reserve Bank of India. vide its circular RPCD.PLNFS.BC.41/09.04.01/2008-2009 dated October 10, 2008, which is available on our website www.rbi.org.in.

April 11, 2014

2. Under P.M.E.G.P. what sorts of professionals are being given loan and advances? Kindly do needful to provide full information. Kindly provide complete information in detail about, if any order or condition has been issued by Indian Government to you in this regard.

The information is available in our circular RPCD.PLNFS.BC.41/09.04.01/2008-2009 dated October 10, 2008

Department of Statistics and Information Management

RIA No Information Sought Reply given/ Information provided Date of Reply

5902/ 2012-13 DSIM

“Year - wise foreign exchange earned from medical tourists in India ( since 2002)”

Separate data on foreign exchange purchases by Authorised Dealer (AD) banks for the purpose of “Travel for medical treatment including TCs purchased by hospital” are collected by the Reserve Bank under Foreign Exchange Transaction Electronic Reporting System (FETERS) since April 1, 2012. The total receipt on account of the above purpose during April –Dec 2012 is as follows:

Table 1: Foreign exchange receipts on account of tourists travel to India for Medical Purpose
Period Total Receipts (Rs. Million)
April – Dec 2012 1666

Source: Foreign Exchange Transactions Electronic Reporting System (FETERS), RBI

Note: Banks report the information on sale/purchase of foreign exchange by their Authorised Dealer (AD) branches to the Reserve Bank under the Foreign Exchange Transaction Electronic Reporting System (FETERS). The information collected relates to transaction date, purpose, amount, currency and country. The information is primarily used as input for compilation of balance of payment wherein the emphasis is given for the purpose and amount. For purposes like transportation, travel, insurance, software exports, private remittances, capital account transactions, the FETERS provides partial data and these are supplemented with data from various other sources. The detailed methodology for compilation of BoP statistics in India is provided in the Report of the Working Group on Balances of Payments Manual for India (Chairman: Shri Deepak Mohanty) – September 2010, which is available in public domain (RBI website: www.rbi.org.in -> Homepage -> Publications -> Reports)

June 18, 2013

2365/2012-13 DSIM

Number of all functioning banks in Urban areas of Raipur. Provide information / list of name and address of each bank branch.

The following information is attached:

i) Bank group-wise and bank-wise number of branches of scheduled commercial banks (SCBs) under different population groups in Raipur District, Chhattisgarh as on 31st October 2012; and

ii) Population group-wise list of branches of SCBs functioning in Raipur District, Chhattisgarh, with address and other details as on 31st October 2012.

Also, the updated information on bank-group and bank-wise list of branches of scheduled commercial banks (SCBs) functioning in India with all details viz., state, district name, etc. and their address, are available on the RBI website (www.dbie.rbi.org.in with the hyperlink ‘Branch Locator’).

November 16, 2012

2017/
53824
May I please be provided quarterly data on state and district wise, bank-wise deposits (by type of deposits) and advances for the period quarter 1-2005 to quarter 4-2016?

Bank group and state/district wise quarterly data on aggregate deposits (by type of deposits) and outstanding credit of scheduled commercial Banks form June 2005 to March 2016 are available on the Reserve Bank website at the following path:

https://dbie.rbi.org.in > Time-Series Publications > Quarterly Statistics on deposits and credit of Scheduled Commercial Banks > Statements Based on Old Bank-Group Classifications (up to Quarter ended March 2017) > Statements No. (3A, 3B, 4A and 4B).

The data can be obtained from this report by making appropriate choices under ‘Input controls’. For making choices, please refer the link available on the home page of this website (https://dbie.rbi.org.in/) at path Useful Links > Downloading Data into Excel.

Bank-wise quarterly data cannot be disclosed under Section 8(1)(d) of RTI Act 2005. However, bank wise total deposits (with breakup) and total advances (based on published annual accounts of individual bank) as on end 31st March are available in the following paths:

For Advances: https://dbie.rbi.org.in > Time-Series Publications > Statistical Tables Relating to Banks in India > Table 2: Liabilities and Assets of Scheduled Commercial Banks > Click ‘Assets’ Tab (7. Advances).

For Deposits: https://dbie.rbi.org.in > Time-Series Publications > Statistical Tables Relating to Banks in India > Table 2: Liabilities and Assets of Scheduled Commercial Banks > Click ‘Liabilities’ Tab (3. Deposits, 3A.1Demand Deposits, 3A.2 Saving Deposits, 3A.3 Term Deposits).
December 28, 2017
2017/
04109
Number of Scheduled Commercial Bank Branches in India From 2010 to 2016.

Number of branches of Scheduled Commercial Banks on Quarterly frequency are available on Reserve Bank of India website https://dbie.rbi.org.in/ at the Home > Statistics > Financial Sector > Banking-Branch Statistics > Quarterly > (g): Bank-wise Number of Functioning Offices of Commercial Banks.

The data can be obtained from this report by making appropriate choices under ‘Input controls’. For making choices, please refer the link available on the home page of this website (https://dbie.rbi.org.in/) at path Useful Links > Downloading Data into Excel.
October 04, 2017
2017/ 80108/2

1. भारत वर्ष में उद्योगों को सभी बैंकों द्वारा 31-12-2016 तक कितना ऋण दिया गया?

3. भारत में विभिन्न कंपनियों को 31-12-2016 तक बैंको द्वारा कुल कितना ऋण दिया गया?

5. भारत वर्ष में व्यापारीयों को 31-12-2016 तक कितना ऋण दिया गया?

9. भारत में कितने उद्योगों को, व्यापारीयों को व कंपनियों को बैंको द्वारा ऋण दिया गया है उनकी अलग – 2 कुल संख्या भी उपलब्ध करवाई जावे।

For query 1, 3, 5 & 9 :
देश के सभी अनुसूचित वाणिज्यिक बैंकों द्वारा दिये गए कुल कृषि ऋण, कुल औद्योगिक ऋण, व्यापार, कुल गैर कृषि - गैर औद्योगिक एवं संस्थावार ऋण राशि व खातो की संख्या से सम्बंधी (31 मार्च 2015) सूचना निम्नलिखित लिंक पर उपलब्ध है।

भारतीय रिजर्व बैंक की वेबसाइट: ‘https://dbie.rbi.org.in > Time Series Publications > Basic Statistical Returns of SCBs in India > Tables 1.9 & 1.15’

ओर

देश के सभी अनुसूचित वाणिज्यिक बैंकों (आरआरबी को छोड़कर) द्वारा दिये गए कुल कृषि ऋण, कुल औद्योगिक ऋण, व्यापार, कुल गैर कृषि - गैर औद्योगिक एवं संस्थावार ऋण राशि व खातो की संख्या से सम्बंधी (30 सितंबर 2016) सूचना निम्नलिखित लिंक पर उपलब्ध है।

भारतीय रिजर्व बैंक की वेबसाइट: ‘https://dbie.rbi.org.in > Time Series Publications > Quarterly BSR-1: Outstanding credit of Scheduled Commercial Banks > Tables 1.4 & 1.6’

31 दिसम्बर 2016 तक के आंकड़े हमारे पास उपलब्ध नहीं है ।

March 14, 2017

Information pertaining to Urban Co-operative Banks/State and Central Co-op Banks

RIA No Information Sought Reply given/ Information provided Date of Reply

1
RIA 453/05-06
UBD

Norms for classifying borrowal accounts of Urban Co-operative Banks as NPAs?

Norms for classification of borrowal accounts as NPAs is provided in our Master Circular UBD(PCB)Cir.No.1/09. 140.00/05-06 dated July 4, 2005 on Income Recognition, Asset Classification and Provisioning, which is available on our website under the title ‘Notifications’

April 21, 2006

2
RIA 430/05-06
UBD

RBI guidelines on merger/ amalgamation of urban co-operative banks (UCBs)?

RBI guidelines on merger/amalgamation of UCBs are available in our circulars No.UBD(PCB)Cir.36/ 09.169.00/2004-05 dated February 2, 2005, and Circular No. UBD(PCB)Cir.18/09.169. 00/2005-06 dated November 22, 2005. These circulars are available on our website at http://rbi.org.in/scripts/Notification User.aspx

April 12, 2006

3
RIA 455/05-06
UBD/
DNBS

Whether a co-operative bank is registered under SARFAESI Act with Reserve Bank of India as a “Securitisation Company” and/or “Securitisation Creditor”? Whether such a bank can automatically become Securitisation Company/Creditor merely on it being registered as a banking company under Banking Regulation Act, 1949 with Reserve Bank of India? Whether such a bank is required to renew its Certificate every year as contemplated under SARFAESI Act? Whether the bank is required to approve a person to be appointed as “Authorised Officer”? Whether such a person is required to be registered as contemplated under SARFAESI Act?

Co-operative Banks fall within the definition of “secured creditor” under SARFESI Act by virtue of the definition contained in section 2(1)(c )(v) of the Act in view of the notification No. S O.105(E) dated 28th January, 2003 of the Central Government declaring “Co-operative Bank” as defined in clause (cci) of section 5 of Banking Regulation Act, 1949 to be a bank for the purposes of SARFAESI. Section 13 of SARFAESI Act, 2002, authorizes the secured creditors to enforce any security interest created in favour of it by the borrower without the intervention of the Court or Tribunal in accordance with provisions of the Act. As a co-operative bank is not a Securitisation Company, the questions regarding renewal of certificate, appointment of “Authorised Officer”, application for registration, etc., would not be relevant.

The query as to whether enforcement of security interest by a secured creditor is required to be registered with “Central Registry” is an issue relating to the interpretation of the provisions of the Act and it is not “information” covered under the Right to Information Act. Reserve Bank does not hold information regarding the exercise of powers by the said bank under section 13(4) of the Act. A reference is also drawn to Section 20 of the Act. Such Central Registry contemplated under the Act would not be a part of the Reserve Bank. It is also clarified that the Central Government has so far not issued any notification to set-up the Central Registry.

April 21, 2006

4
RIA 456/05-06
UBD

(i) The validity period of Co-operative Banks’ pay order?

(ii) Whether co-op banks have the right to withdraw or deposit the amount in customer's saving account without his permission?

(i) Bank’s pay order is basically a bankers’ cheque and hence valid for six months.

(ii) Every bank frames saving bank rules. Deposits/withdrawals into the account (SB Account) are subject to these rules. Banks generally debit SB account with cheque book charges, account maintenance charges, etc.

April 21, 2006

5
RIA 479/05-06
UBD

List of names of scheduled urban co-op banks operating in Maharashtra state

The information is available on the website at www.rbi.org.in/scripts/sitemaps.aspx

April 27, 2006

6
RIA 22/07-08
UBD

RBI guidelines to Co-operative Banks on premature withdrawal of deposits

Paragraph 8 of the Master Circular no 1 dated July 2,
2007 (on our website at http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode
=0&Id=3691
) and a Circular UBD(PCB) 78/DC.V.(B) 92-93 dated May 26, 1993 may be referred.

April 26, 2006

3667/14-15
DCBR

Information on Loan waiver details under Agricultural Debt Waiver and Debt Relief (ADWDR) Scheme, 2008

Copy of rules for monitoring proper implementation of said scheme.

List of documents bank/ Farmer need to submit to government after receiving loan waiver amount.

Copy of rules used to take action against bank if bank failed to provide certificate of debt waiver of debt relief and also failed to take acknowledgement from farmer

Para 4 of our circular RBI/2007-2008/348 UBD.PCB.Cir.No. 50/13.05.000/07-08 dated June 2, 2008 which is available in the website of Reserve Bank of India under the tab ‘Notifications’.

RBI has not prescribed any documents required to be submitted to government by the farmer after receiving the loan waiver amount. The responsibility of the banks under the scheme are given in the circular(s):
(1) UBD.PCB.Cir.No.43/13.05.000/2007-08 dated May 23, 2008
(2) UBD.PCB.Cir.No.50/13.05.000/2007-08 dated June 2, 2008.
The circulars are available in the website of Reserve Bank of India under the tab ‘Notifications’.

Please refer to our circular RBI/ 2012-13/ 381 UBD.BPD.PCB.Cir.No.31/13.05.000/2012-13 dated January 15, 2013 which is available in the website of Reserve Bank of India under the tab ‘Notifications’.

Feb 06, 2015
4104/2014-15
DCBR

Which delegated authority from Reserve Bank of India has power to cancel the license of the Bank? Please provide us the Name and Address of such authority.

Guidelines as to under which circumstances, a Bank’s banking license can be cancelled.

The Executive Director in charge of Department of Co-operative Bank Regulation (DCBR) of Reserve Bank of India has power to cancel the license of the Co-operative Bank. The Address is as under:

The Executive Director, Department of Co-operative Bank Regulation, Reserve Bank of India, 17th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai-400001.

As per Section 22 (4) of the B. R. Act, 1949 (As Applicable to Co-operative Societies (AACS)), The Reserve Bank may cancel a licence granted to a co-operative bank:

(i) if the co-operative bank ceases to carry on banking business in India; or

(ii) if the co-operative bank at any time fails to comply with any of the conditions imposed upon it under sub-section (1) of the Section 22 of the B.R. Act, 1949 (AACS); or

iii) if at any time, any of the conditions referred to in sub-section (3) of the Section 22 of the B.R. Act, 1949 (AACS) is not fulfilled.

Provided that before cancelling a license under clause (ii) or clause (iii) of sub-section 4 of Section 22(4) of the B.R. Act, 1949 (AACS) on the ground that the co-operative bank has failed to comply with or has failed to fulfill any of the conditions referred to therein, the Reserve Bank, unless it is of opinion that the delay will be prejudicial to the interests of the co-operative bank's depositors or the public, shall grant to the co-operative bank on such terms as it may specify, an opportunity of taking the necessary steps for complying with or fulfilling such condition.

March 3, 2015
4129/2014-15
DCBR
On which amount KYC is compulsory?

KYC Procedures are carried out on all customers of a bank. The guidelines/instructions issued to Urban Cooperative Banks and DCCBs/ StCBs on Know Your Customer (KYC) Norms/ Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT) / Obligation of Banks under Prevention of Money Laundering Act (PMLA), 2002 upto July 1, 2014 have been consolidated in the Master Circular dated UBD.BPD.(PCB).MC.No.16/12.05.001/2013-14 dated July 1,2014 & RPCD.RRB.RCB.AML.BC.No.02/07.51.018/014-15 dated July 1, 2014. Instructions issued subsequently are available in Circulars UBD.BPD. (PCB).Cir.No.2/14.01.062/2014-15 dated July 2, 2014, RPCD.RRB.RCB.AML.BC.No.12/07.51.018 /2014-15 dated July 3, 2014, RPCD.RRB.RCB.AML.BC.No.14/07.51.018/2014-15 dated July 21, 2014, UBD.BPD.(PCB).Cir.No.5/14.01.062/2014-15 dated August 5 2014, RPCD.RRB.RCB.AML.BC.No.31/07.51.018/2014-15 dated September 9, 2014, RPCD.RRB.RCB.AML.No.2797/07.51.018/2014-15 dated September 9, 2014, UBD.BPD (PCB).Cir.No.15/14.01.062/2014-15 dated September 16, 2014, UBD.BPD.(PCB).Cir.No.16/14.01.062/2014-15 dated September 16, 2014, UBD.BPD.(PCB).Cir.No.22/14.01.062/2014-15 dated October 22, 2014 UBD.BPD.(PCB).Cir.No.23/14.01.062/2014-15 dated October 22, 2014, RPCD.RRB.RCB.AML.BC.No.39/07.51.018 /2014-15 October 31, 2014 and RPCD.RRB.RCB.AML.No.4424/07.51.018/2014-15 dated October 31, 2014.

All circulars are available on our website www.rbi.org.in under the link 'notifications'.

March 11, 2015
60495/2015
DCBR
I had account with Co-operative Schedule Bank saving account and current account. They are charging Rs 300/- for cheque return charges, which is too high as compared to Nationalised bank. I had inquired few nationalized bank they are charging lesser than Rs 300.Whether Coo-operative banks are authorized to charge any amount as cheque return charges. Whether policy related to charges is different for nationalized bank and cooperative banks. Please refer to Para 22.1 of Master Circular UBD.BPD. (PCB).MC.No.10/12.05.001/2014 -15 dated July 1, 2014 on Customer Service for Primary Urban Cooperative Banks in this regard. All UCBs have the freedom to prescribe service charges with the approval of their Boards. However, while fixing service charges, for various types of services like charges for cheque collection, etc., UCBs are advised that they should ensure that they are reasonable and are not out of line with the average cost of providing these services. UCBs should ensure that customers with low volume of activities are not penalized. April 29, 2015
00830/2015
DCBR
How will calculate Current A/c interest during 35A Sec B.R act 1949 (AACS) imposes to any Urban Co-operative bank should and also to Saving A/c, Fixed deposit, Loans, Gold Loan, Vehicle etc.

The information sought is available in our Master Circular UBD.BPD.(PCB).MC.No.11/13.01.000/2014-15 dated July 1, 2014 on Interest Rates on Rupee Deposits – Primary (Urban) Co-operative Banks and Master Circular UBD.BPD.(PCB).MC.No.5/13.05.000/2014-15 dated July 1, 2014 on Management of Advances – UCBs which are available on our website www.rbi.org.in under the link 'notifications'.

These instructions are also applicable to banks placed under Directions in terms of section 35 A of Banking Regulation Act, 1949 subject to the terms and conditions mentioned in the Direction imposed.

May 07, 2015
01657/2015
DCBR
Can Co-operative Bank charge Interest on Interest?

Please see the Master Circular on Management of Advances UBD.BPD.(PCB) MC No.5/13.05.000/2014-15 dated July 01, 2014

Circulars on interest rates on loans and advances issued to State/Central Co-operative Banks are as follows:

i) RPCD.CO.RF.BC.No.93/07.38.01/2006-07 dated May 16, 2007
ii) RPCD.CO.RF.BC.No.78/07.38.01/2008-09 dated December 19, 2008
iii) RPCD.CO.RF.BC.No.29/07.38.01/2010-11 dated November 19, 2010

The above Circulars are also available on our website https://rbi.org.in under ‘Notifications’.

June 30, 2015
02297/1
2015
DCBR
Information about NPA and defaulter Rules and Regulations adopted by RBI for Cooperative Banks under state governments. Please refer to the Master Circular on Income Recognition, Asset Classification, Provisioning and other related matters - UCBs dated July 01, 2015 consolidating the instructions issued to Urban Cooperative Banks regarding Non Performing Assets and other related matters. The Master Circular is available on the website under link https://rbi.org.in/Scripts/BS_ViewMasterCirculardetails.aspx August 6, 2015
62275/2015
DCBR
Please provide detailed information about all the prerequisites and compliances to be fulfilled by an Urban Co-operative Bank for setting up an Off-site ATM. The criteria for setting up Off-site ATM by an Urban Co-operative Bank has been prescribed vide RBI circular – UBD.CO.LS.(PCB).Cir.No.1/07.01.000/2014-15 dated July 2, 2014. The above Circular is available on our website https://rbi.org.in under ‘Notifications’. October 29, 2015
03717/1
2015
DCBR
आपके दिशा निर्देशन में कौन कौन से बैंक कार्य करते हैं उनके नाम बताइये ? सहकारी बैंक विनियमन विभाग सहकारी बैंकों के बैंक संबंधित कार्य को विनियमित करता है। सहकारी बैंकों की सूची हमारे वेबसाइट पर उपलब्ध है, जो कि निम्नलिखित लिंक से प्राप्त की जा सकती है :
www.rbi.org.in → Consumer Education & Protection → For Common Person
Useful Information → Financial Agents → Banks in India
November 20, 2015
50427/1
2016
DCBR
We understand from the newspaper few Scheduled Coop. Banks are making losses. We have several Fixed Deposits & Bank accounts in these banks. With the growing concern around the economy of the country, we would like to know as per RBI Guidelines & rule, if the investors of FDR in the above banks, is fully secured and protected. (Money will be returned on time). Is this refund of the money guaranteed from Government, if the bank goes bankrupt Whether actual amount will be paid as per maturity value on due dates. Please let us know the detailed status for a Fixed Deposit Investor. Each depositor in a bank is insured under DICGC Act 1961 upto a maximum of ₹1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same right and same capacity and at the time of liquidation/cancellation of any Bank , DICGC settles the claim up to maximum Rs.1,00,000/-( Rupees One lakh only). March 01, 2016
02794/1
DCBS

Total NPA of all banks under your control from time balance on your record, till 30th June 2015.

Give separate details of all PSU, Private Sector and Cooperative Banks details separately and year wise pending of NPA on your record till 30th June, 2015.

Any action taken against any directors or top officials of bank in recovery negligence of NPA and how much amount recovered.

Any action taken against bank’s Directors or top officials adopted false procedure to give loans to big corporate which ends to NPA.

The information on total NPAs of all Urban Co-operative Banks is available on RBI website https://www.rbi.org.in/ under Publications → Annual → Trend and Progress of Banking in India.

The information sought in respect of Urban Co-operative Banks is exempted under Section 8(1) (a) of the Right to Information Act, 2005.

Action taken against the management of the bank including the Board of Directors (BoD) for any act of omission or commission comes within the purview of RCS/CRCS in case of Uni-state and Multi state UCBs, respectively.

Action taken against the management of the bank including the Board of Directors (BoD) for any act of omission or commission comes within the purview of RCS/CRCS in case of Uni-state and Multi state UCBs, respectively.

September 24, 2015
03219
DCBS
Postal address of Central Office / Head Office / Registered Office of all Public Sector Bank and Private Banks including Co-operative Banks which are controlled by Reserve Bank of India.

Regional Office-wise lists of all Scheduled and Non-Scheduled Urban Co-operative Banks which are currently in operation, with their Head Office addresses, are available on RBI website www.rbi.org.in at:

Scheduled Urban Co-op. Banks

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/schedulecoop.pdf

Non-Scheduled Urban Co-op. Banks

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/nonschedulecoop.pdf

(Path: Home Page → Consumer Education and Protection → For Common Person → Useful Information → Financial Agents → Banks in India → Co-operative Banks-Scheduled Urban Co-operative Banks and Non-Scheduled Urban Co-operative Banks)

October 12,
2015
62999
DCBS
Kindly provide information with file notings on the procedure for appointment inspectors for inspection to be carried on banking entities. Kindly provide list of the inspectors available with RBI.

Inspecting officers are not appointed. Officers posted in DCBS (Regional Offices and Central Office) are deputed for carrying out the inspection. As such it is not an appointment but assignment of a task.

There is no separate list of inspecting officers as any officer from Assistant Manager to General Manager may be assigned with the said task.

January 15,
2016
01856
DCBS
At present what is the total outstanding amount of NPAs, Nationalised, Private and Co-operative Banks?

Information pertaining to Urban Cooperative Bank is available on the RBI website. Applicant can access the said information at:

http://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications

followed by path:
Primary (Urban) Co-operative Banks' Outlook > 2014-15 > Data Tables > Table 7 - Non-Performing Assets of UCBs

May 23,
2016
03161/1
DCBR

What are pre closure charges on all loan taken in bank, NBFC and Co-operative banks?

Need specific information all types of loan accounts were pre closure charges are levied.

Need specific guidelines of pre closure charges on mortgage loans.

Reserve Bank of India has not prescribed any pre-closure charges on loans, including mortgage loans for co-operative banks. However, we have issued guidelines vide circulars UBD.BPD.(PCB)CIR No.41/12.05.001/2011-12 dated June 26, 2012 and UBD.CO.BPD.PCB.Cir.No.64/12.05.001/2013-14 dated May 26, 2014 prohibiting urban co-operative banks from levying foreclosure charges/ pre-payment penalties on all floating rate home loans and floating rate term loans sanctioned to individual borrowers respectively.

In this regard, please refer to following circulars issued by Reserve Bank of India to State/Central Cooperative Banks

  1. RPCD.CO.RF.BC.No.78/07.38.01/2008-09 dated December 19, 2008.
  2. RPCD.CO.RF.BC.No.29/07.38.01/2010-11 dated November 19, 2010.
  3. RPCD.CO.RCBD.BC.No.84/03.03.01/2011-12 dated June 15, 2012.
  4. RPCD.CO.RCBD.BC.No.102/07.51.013/2013-14 dated May 27, 2014.
The above mentioned circulars are available on our website www.rbi.org.in under ‘Notifications’.
August 12, 2016
03184/
DCBR
खाता Fixed Deposit पर Auto renewal का नियम कब से लागु हुआ है । भारतीय रिज़र्व बैंक ने प्राथमिक (शहरी) सहकारी बैंकों को ‘सावधि जमा के स्वतः नवीनीकरण’ पर कोई निर्देश जारी नहीं किए हैं । तथापि, आप हमारे दिनांक 01 जुलाई 2015 के जमा खाता रखना – प्राथमिक (शहरी) सहकारी बैंक पर मास्टर परिपत्र डीसीबीआर. बीपीडी (पीसीबी) एमसी. सं.6/13.01.000/2015-16 और दिनांक 12 मई 2016 के सहकारी बैंक - जमाराशियों पर ब्याज दरें पर मास्टर निदेश DCBR. Dir. No. 1/13.01.000/2015-16, जो कि हमारे वेबसाइट www.rbi.org.in (”अधिसूचनाएं” तहत) पर उपलब्ध हैं, का संदर्भ ले सकते हैं । August 16, 2016
52190/
DCBR
RBI Norms for final payment of without nominee

Regarding Reserve Bank of India instructions to cooperative banks on settlement of claims in respect of accounts without the survivor/nominee clause, please refer to Para 6.3 of our Master Circular DCBR.CO.BPD. (PCB).MC. No. 6/13.01.001/2015-16 dated July 1, 2015 on Maintenance of Deposit Accounts.

The above mentioned Master Circular can be downloaded from our website www.rbi.org.in under the link ‘Notifications’→ Master Circulars→ Co-operative Banking.

August 29, 2016
51761/1 DCBS Annual credit and deposit growth of banks in India from FY 1947/48 till FY 2015/16

Information on credit and deposit of cooperative banks can be accessed from “Report on trend and progress of banking in India” on RBI website. Link for the same is given below.

https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Trend and Progress of Banking in India

July 21, 2016
03550/
DCBS
Though Co-operative Bank’s are governed by RBI, but why it is not covered under RTI Act. We had approached RBI regarding this matter, but it had shown its inability to set RTI Act should prevail on this Bank. After all why so? The Cooperative banks are established under Co-operative Act of the respective states or Multi-state Cooperative Societies Act and not under any Parliamentary Statute. Therefore, they are not 'public authority' as defined under section 2 (h) of the Right to Information Act, 2005. September 07, 2016
52502/
DCBS
In case of Negligence, Fraud from bank who should be held responsible, the employee of the bank or the employers. Please provide the circular for the same. In terms of Reserve Bank of India’s circular DBS.CO.CFMC.BC.No.1/23.04.001/2016-17 dated July 01, 2016, the bank is required to conduct enquiry to fix staff accountability and take action as per the enquiry report. The circular is available on Reserve Bank of India’s website www.rbi.org.in. Under “Notifications” – Master Directions on frauds. September 28, 2016

04749/1
DCBR

Whether RBI has issued any Circulars /orders/ guidelines regarding the banks/financial institutions charging foreclosure charges (here, the term “foreclosure charges” means the charges that a bank or financial institutions charges/ collects if a borrower repays the loan before the expiry of its term) ?

With regard to foreclosure charges for Urban Cooperative Banks, you may please refer to our Circulars UBD.BPD. (PCB)CIR. NO. 41/12.05.001 /2011-12 dated June 26, 2012 and UBD.CO.BPD. PCB.No.64/12.05.001/2013-14 dated May 26, 2014.

With regard to foreclosure charges for State and Central Cooperative Banks, you may please refer to Circulars RPCD. CO.RCBD.RRB.BC. No.102/07.51.013/2013-14 dated May 27, 2014 and RPCD. CO. RCBD. BC. No. 84/03.03.01/ 2011-12 dated June 15, 2012

The above circulars are available on our website under the link https://www.rbi.org.in/Scripts/NotificationUser.aspx

December 16, 2016

03759
DCBR

What are the terms and instructions issued by RBI for (pay order) clearing in cooperative bank and customers? Give details

You may refer to the following circulars issued to Cooperative Banks:

  1. RPCD.Co.RCBD.BC.No.34/07.38.03/2011-12 dated November 24, 2011.
  2. RPCD.Co.RCB.BC.No.36/07.51.010/2014-15 dated October 22, 2014 of Para No. 10.1.3 and 10.2 on Customer Service
  3. DCBR.CO.BPD. (PCB) MC. No.15 /12.05.001/2015-16 dated July 01, 2015 & Para 25 (Annex IV)

The above Circulars are available on Reserve Bank of India’s website www.rbi.org.in under ‘’Notifications”.

October
03, 2016

05333/
DCBR

What are the guidelines and rules issued to cooperative banks regarding recording of inheritor (nomination) in case of Fixed Deposit by a senior citizen.

What are the guidelines and rules issued to cooperative banks regarding payment of Fixed Deposits to the inheritor (nominee) of the deceased depositor?

Our guidelines on Nomination Facility issued to Urban Cooperative Banks are available in para 4 of Master Circular DCBR. BPD. (PCB). MC.No:6/13.01.000/2015-16 dated July 1, 2015 on Maintenance of Deposit Accounts- Primary (Urban) Co-operative Banks. You may please refer to our following circulars issued to State/Central Co-operative Banks (StCB/DCCB) in this regard
  1. RPCD.CO.RF.BC.No.12/07.38.01/2005-06 dated July 12, 2005
  2. RPCD.CO.RF.BC.No.70/07.38.01/2006-07 dated April 12, 2007
  3. RPCD.CO.RF.BC.No.96/07.38.01/2008-09 dated April 13, 2009
  4. RPCD.CO.RCB.BC.No.53/07.51.010/2012-13 dated December 24, 2012.

The above mentioned circulars are available on our website www.rbi.org.in under the link ‘Notifications’.

January 12, 2017
05177
DCBR

KYC के पूरा न होने पर बैंक खाता धारक के विरुद्ध किस प्रकार कार्यवाही करते हुए खाता बंद/फ्रीज़ कर सकता है की जानकारी ।

क्या बैंक बिना सूचना के खाता बंद या फ्रीज़ कर सकता है की जानकारी।

इस विषय में कृपया हमारी वैबसाइट पर जारी केवाईसी के मास्टर निदेश सं. DBR.AML.BC. No.81/14.01.001/2015-16 दिनांक फरवरी 25, 2016 का संदर्भ लें, जिसमे बिन्दु संख्या 39 पर बैंको द्वारा खाते को फ्रीज़/बंद करने के बारे मे निदेश दिये गए हैं। उपर्युक्त परिपत्र भारतीय रिजर्व बैंक के बेवसाइट www.rbi.org.in पर के "अधिसूचना" लिंक के तहत उपलब्ध है। January 09, 2017
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DCBS
Can a Multi-State Co-operative Society operate as Co-operative, Schedule Bank under the acts of Multi-State Co-operative Society? A Multi-State Co-operative Society can operate as a Co-operative Scheduled Bank only when licensed by Reserve Bank of India and included in Second Schedule of Reserve Bank of India Act, 1934. March 23, 2017

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