Regulatory and Other Measures
February 2012
RBI/20011-12/384 Ref.DBOD.No.Ret.BC77/12.06.132/
2011-12 dated February 3, 2012
Inclusion in the Second Schedule to the Reserve Bank of India Act, 1934 Industrial and Commercial Bank of China Limited
All Scheduled Commercial Banks
We advise that the name of ‘Industrial and
Commercial Bank of China Limited’ has been included
in the Second Schedule to the Reserve Bank of India
Act, 1934 by notification DBOD.IBD.No./8136/
23.03.026/2011-12 dated December 01, 2011 published
in the Gazette of India (Part III- Section 4) dated
December 31, 2011.
RBI/2011-12/389 DBOD.No.Leg.BC. 81/09.07.005/
2011-12 dated February 7, 2012
Unclaimed Deposits/ Inoperative Accounts
in Banks – Display list of Inoperative
Accounts
All Scheduled Commercial Banks
(excluding RRBs)
Please refer to our Circular DBOD.No.Leg.
BC.34/09.07.005/2008-09 dated August 22, 2008,
wherein detailed instructions have been given to banks
on dealing with unclaimed deposits / inoperative
accounts. They have been advised to find the
whereabouts of the customers and their legal heirs.
These instructions, inter alia, include i) annual review
of accounts in which there are no operations, ii)
operations in such accounts to be allowed after due
diligence and iii) no charge to be levied for activation
of inoperative account, etc.
2. Keeping in view public interest, it has been
decided that banks should, in addition to the
instructions contained in the above mentioned circular,
play a more pro-active role in finding the whereabouts of the accountholders of unclaimed deposits/ inoperative
accounts. Banks are, therefore, advised that they should
display the list of unclaimed deposits/inoperative
accounts which are inactive / inoperative for ten years
or more on their respective websites. The list so
displayed on the websites must contain only the names
of the account holder(s) and his/her address in respect
of unclaimed deposits/inoperative accounts. In case
such accounts are not in the name of individuals, the
names of individuals authorised to operate the accounts
should also be indicated. However, the account number,
its type and the name of the branch shall not be
disclosed on the bank’s website. The list so published
by the banks should also provide a ‘Find’ option to
enable the public to search the list of accounts by name
of the account holder.
3. Banks should also give on the same website, the
information on the process of claiming the unclaimed
deposit/activating the inoperative account and the
necessary forms and documents for claiming the same.
Banks are required to have adequate operational
safeguards to ensure that the claimants are genuine.
4. Banks should complete action as above by June
30, 2012 and keep their websites updated at regular
intervals.
RBI/2011-12/391 UBD.BPD.(PCB) CIR No. 18
/13.01.000/2011-12 dated February 7 , 2012
Deregulation of Savings Bank Deposit
Interest Rate – Clarification
The Chief Executive Officers
All Primary (Urban) Co-operative Banks
Please refer to our circular UBD.BPD.(PCB).CIR
No.13/13.01.000/2011-12 dated November 25, 2011.
2. We clarify that the revised guidelines issued vide
our circular referred to above would be applicable to domestic savings bank deposits held by residents in
India. Further, the interest rates applicable on the
domestic savings deposit will be determined on the
basis of end-of-day balance in the account. Accordingly,
while calculating interest on domestic savings bank
deposits, banks are required to apply the uniform rate
set by them on end-of-day balance up to ` 1 lakh and
for any end-of-day balance exceeding `1 lakh, banks
may apply the differential rate(s) as fixed by them.
3. Banks may ensure that interest rate is applied, as
stated above, on the end-of-day balances of all domestic
savings deposits accounts and no discrimination is
made at any of its offices. Prior approval of the Board/
Asset Liability Management Committee (if powers are
delegated by the Board) may be obtained by a bank
while fixing interest rates on such deposits.
4. All other instructions in this regard, as amended
from time to time, will remain unchanged.
RBI/2011-2012/396 Ref.No.MPD. BC.352/05.03.004/
2011-12 dated February 13, 2012 Magha 24, 1933 (Saka)
All Scheduled Commercial Banks
Bank Rate
Section 49 of the Reserve Bank of India Act, 1934
requires the Reserve Bank to make public (from time
to time) the standard rate at which it is prepared to buy
or re-discount bills of exchange or other commercial
paper eligible for purchase under that Act.
2. Being the discount rate, the Bank Rate should
technically be higher than the policy repo rate. The
Bank Rate has, however, been kept unchanged at 6 per
cent since April 2003. This was mainly for the reason
that monetary policy signalling was done through
modulations in the reverse repo rate and the repo rate
under the Liquidity Adjustment Facility (LAF) (till May
3, 2011) and the policy repo rate under the revised
operating procedure of monetary policy (from May 3,
2011 onwards). Moreover, under the revised operating
procedure, marginal standing facility (MSF), instituted
at 100 basis points above the policy repo rate, has been in operation, which in many ways serves the purpose
of the Bank Rate.
3. While the policy repo rate and the MSF rate have
become operational, the Bank Rate continues to remain
at 6 per cent. Currently, the Bank Rate acts as the penal
rate charged on banks for shortfalls in meeting their
reserve requirements (cash reserve ratio and statutory
liquidity ratio). The Bank Rate is also used by several
other organisations as a reference rate for indexation
purposes.
4. The Reserve Bank has consulted various
organisations/stakeholders relying on the Bank Rate as
a reference rate. Based on the feedback received, it is
determined that the Bank Rate should normally stay
aligned to the MSF rate. Accordingly, it has been decided
that with effect from the close of business today
(February 13, 2012), the Bank Rate will stand increased
by 350 basis points, i.e., from 6.00 per cent per annum
to 9.50 per cent per annum. This should be viewed and
understood as one-time technical adjustment to align
the Bank Rate with the MSF rate rather than a change
in the monetary policy stance.
5. All penal interest rates on shortfall in reserve
requirements, which are specifically linked to the Bank
Rate, will also stand revised as indicated in the Annex.
Annex |
Penal Interest Rates which are linked to the Bank Rate |
Item |
Existing Rate |
New Rate (Effective close of business on February 13, 2012) |
Penal interest rates on short falls in reserve requirements (depending on duration of shortfalls). |
Bank Rate plus 3.0 percentage points (9.00 per cent) or Bank Rate plus 5.0 percentage points (11.00 per cent). |
Bank Rate plus 3.0 percentage points (12.50 per cent) or Bank Rate plus 5.0 percentage points (14.50 per cent). |
6. Kindly acknowledge receipt of this letter to the
Adviser-in-Charge, Monetary Policy Department,
Reserve Bank of India, Central Office, Shahid Bhagat
Singh Road, Mumbai 400 001.
RBI/2011-12/407 RPCD.CO.LBS. BC.No. 8377
/02.08.01/2011-12 dated February 22, 2012
Formation of new district – Panchsheel
Nagar in the State of Uttar Pradesh
Assignment of Lead Bank responsibility
The Chairmen/CMD
All Lead Banks
The Government of Uttar Pradesh vide their
Gazette Notifications No. 2877/1-5-2011-153/2-11-R-5 &
2878/1-5-2011-153/2011-R-5 dated September 28, 2011
has advised about the constitution of a new district viz.
Panchsheel Nagar with effect from September 28, 2011.
The new district with its headquarter at Hapur has been
carved out from the existing Ghaziabad and comprises
of three Tehsils viz. Hapur, Garh Mukteshwar &
Dhaulana.
2. It has been decided to assign the lead bank
responsibility of the new district Panchsheel Nagar to
Syndicate Bank. There is no change in the lead bank
responsibilities of other districts in the State.
3. The newly formed district Panchsheel Nagar has
been allotted District working code ‘313’ for the
purpose of reporting. |