Reserve Bank of India - Function Wise Monetary

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

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

FINANCIAL INCLUSION AND DEVELOPMENT

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