Gist of Important RBI Circulars
|
|
- Emory Garrett
- 8 years ago
- Views:
Transcription
1 Gist of Important RBI Circulars RPCD Circulars Section 17(2) of the Banking Regulation Act, 1949 Appropriation from the Reserve Fund In terms of Section 17(2) read with Section 51 of the Banking Regulation Act, 1949, and in order to ensure that recourse to drawing down the reserve fund is done prudently and is not in violation of any of the regulatory prescriptions, RRBs are advised to take prior approval from the Reserve Bank before any appropriation is made from the statutory reserve or any other reserves. RRBs are further advised that (i) all expenses including provisions and write-offs recognized in a period, whether mandatory or prudential, should be reflected in the profit and loss account for the period as an 'above the line' item (i.e. before arriving at the net profit), (ii) wherever draw down from reserves takes place with the prior approval of Reserve Bank, it should be effected only 'below the line' (i.e. after arriving at the profit/loss for the year); and (iii) it should also be ensured that suitable disclosures are made of such draw down of reserves in the 'Notes on Accounts' to the Balance Sheet. (RPCD.CO.RRB.No.BC. 45 / / dated January 8, 2008) Section 24 of the Banking Regulation Act, Maintenance of Statutory Liquidity Ratio (SLR) - RRBs The Banking Regulation (Amendment) Act, 2007 replacing the Banking Regulation (Amendment) Ordinance, 2007 came into effect from January 23, Consequent upon amendment to Section 24 of the Banking Regulation Act, 1949 all Regional Rural Banks shall continue to maintain a uniform statutory liquidity ratio (SLR) of 25 per cent on their total net demand and time liabilities in the assets as specified in the enclosed notification dated February 14, (RPCD.CO.RRB.No.BC.47/ (B)/ dated February 14, 2008 ) Guidelines for Relief Measures by Banks to Poultry Industry Keeping in view the loss of income that has occurred due to culling of birds as well as steep fall in the demand for poultry products and their prices, banks may consider extending the following facilities to poultry units financed by them (i) Principal and interest due on working capital loans as also installments and interest on term loans which have fallen due for payment on/after the onset of bird flu, i.e. December 31, 2007 and remaining unpaid may be converted into term loans. The converted loans may be recovered in installments based on projected future inflows over a period up to three years with an initial moratorium of up to one year (the first year of repayment may be fixed after the expiry of moratorium period), (ii) The remaining portion of term loans may be rescheduled similarly with a moratorium period up to one year depending upon the cash flow generating capacity of the unit, (iii) The reschedulement/conversion may be completed on or before April 30, 2008, (iv)the rescheduled/converted loans may be treated as current dues, (v) After conversion as above, the borrower will be eligible for fresh need based finance, and (vi) The relief measures as above may be extended to all accounts of poultry industry, which were classified as Standard accounts as on December 31, (RPCD. PLFS. BC. No. 48 / / dated February 19, 2008); (UBD.PCB.Cir.No. 34 / /07-08 dated March 3, 2008 in respect of UCBs) 71
2 Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT) Banks are advised to review their extant internal instructions on the subject. It is clarified that permanent correct address, as referred to in Annex-II to RBI's circular dated February 18, 2005, means the address at which a person usually resides and can be taken as the address as mentioned in a utility bill or any other document accepted by the bank for verification of the address of the customer. It has been observed that some close relatives, e.g. wife, son, daughter or parents, who live with their husband, father/mother and son, as the case may be, are finding it difficult to open an account with some banks as the utility bills required for address verification are not in their name. It is clarified, that in such cases, banks can obtain an identity document and a utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her. Banks can use any supplementary evidence such as a letter received through post for further verification of the address. While issuing operational instructions to the branches on the subject, banks should keep in mind the spirit of instructions issued by the Reserve Bank and avoid undue hardships to individuals who are, otherwise, classified as low risk customers. The instructions contained in the circular dated February 18, 2005 also require banks to put in place a system of periodical review of risk categorisation of accounts and the need for applying enhanced due diligence measures in case of higher risk perception on a customer. Banks are further advised that such a review of risk categorisation of customers should be carried out at a periodicity of not less than once in six months. Banks should also introduce a system of updating the customer identification data (including photograph/s) at a periodicity of not less than once in five years after the account is opened in case of low risk category customers, and not less than once in two years in case of high and medium risk categories. In terms of PMLA Rules, suspicious transactions should include transactions which give rise to a reasonable ground of suspicion that these may involve financing of the activities relating to terrorism. Banks are, therefore, advised to develop suitable mechanism through appropriate policy framework for enhanced monitoring of accounts suspected of having terrorist links and swift identification of the transactions and making suitable reports to the Financial Intelligence Unit India (FIU-IND) on priority. As and when lists of individuals and entities, approved by Security Council Committee established pursuant to various United Nations' Security Council Resolutions (UNSCRs), are received from Government of India, the Reserve Bank circulates these to all banks. Banks should ensure to update the consolidated list of individuals and entities as circulated by the Reserve Bank. Further, the updated list of such individuals/entities can be accessed in the United Nations website at consolist.shtml. Banks are advised that before opening any new account it should be ensured that the name/s of the proposed customer does not appear in the list. Further, banks should scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list. Full details of accounts bearing resemblance with any of the individuals/entities in the list should immediately be intimated to the Reserve Bank and FIU-IND. It may be appreciated that KYC norms/aml standards/cft measures have been prescribed to ensure that criminals are not allowed to misuse the banking channels. It would, therefore, be necessary that adequate screening mechanism is put in place by banks as an integral part of their recruitment/hiring process of personnel. (RPCD.CO.RRB.No. BC. 50 / (E)/ dated February 27, 2008 for RRBs); (RPCD.CO.RF.AML.BC. No.51/ / dated February 28, 2008 for StCBs and DCCBs); (UBD. CO. BPD. (PCB). No.32 / / dated February 25, 2008 in respect of UCBs); (DBOD.AML.BC. No.63/ / dated February 18, 2008 in respect of commercial banks) UCB Circulars Prudential Norms for Capital Adequacy Risk Weight for Educational Loans-UCBs It has been decided that 'educational loans' will not be classified as consumer credit for the purpose of capital adequacy norms. Accordingly, the risk weight applicable to educational loans would be 100 per cent, as against 125 per cent at present. (UBD. PCB.Cir.No. 31 / /07-08 dated January 29, 2008) 72
3 Advances to Builders / Contractors As per extant instructions, UCBs should normally refrain from sanctioning loans and advances to builders / contractors. However, where contractors undertake comparatively small construction work on their own (i.e. when no advance payment are received by them for the purpose), UCBs may consider extending financial assistance to them against hypothecation of construction materials, provided such loans and advances are in accordance with the bye-laws of the banks and instructions / directives issued by the Reserve Bank from time to time. It has been observed that while financing builders / contractors as above, certain banks were found to be valuing the land for the purpose of security, on the basis of the discounted value of the property after it is developed, less the cost of development. This is not in conformity with established norms. It is clarified that UCBs should not extend fund based / non-fund based facilities to builders / contractors for acquisition of land even as a part of a housing project. Further, wherever land is accepted as collateral, valuation of such land should be at the current market price only. (UBD. CO. BPD. (PCB). No. 33/ / dated February 29, 2008) Classification of UCBs for Regulatory Purposes - Revised Norms It has been decided to amend the definition of Tier I banks and accordingly banks may be classified in Tier I category for regulatory purposes as under: (a) (b) Tier I banks : (i) Unit banks i.e. banks having a single branch / Head Office and banks with deposits below Rs.100 crore, whose branches are located in a single district, (ii) Banks with deposits below Rs.100 crore having branches in more than one district, provided the branches are in contiguous districts and deposits and advances of branches in one district separately constitute at least 95% of the total deposits and advances respectively of the bank and (iii) Banks with deposits below Rs.100 crore, whose branches were originally in a single district but subsequently, became multidistrict due to reorganization of the district. Tier II Banks: All other banks. (UBD (PCB).Cir.No.35 / /07-08 dated March 7, 2008) Customer charges for use of ATMs for cash withdrawal and balance enquiry RBI had placed on its website an Approach Paper on the subject matter and sought public comments. The comments received have been analysed. Based on the feedback, a framework of service charges for use of ATMs would be implemented by all banks as under: Service For use of own ATMs for any purpose For the use of other bank ATMs for balance enquiries Charges Free (With immediate effect) Free (With immediate effect) For use of other bank ATMs for cash with drawals No bank shall increase the charges prevailing as on December 23, 2007 (i.e. the date of release of Approach Paper on RBI website) Banks which are charging more than Rs. 20 per transaction shall reduce the charges to a maximum of Rs. 20 per transaction by March 31, 2008 Free with effect from April 1,
4 For the services at (1) and (2) above, the customer will not be levied any charge under any other head and the service will be totally free. For the service number (3) the charge of Rs.20/- indicated will be all inclusive and no other charges will be levied to the customers under any other head irrespective of the amount of withdrawal. The service charges for the following types of cash withdrawal transactions may be determined by the banks themselves: a) cash withdrawal with the use of credit cards (b) cash withdrawal in an ATM located abroad (UBD. CO. BPD. (PCB) No.36 / / dated March 12, 2008); (DPSS No.1405 / / dated March 10, 2008) Prudential Norms for Capital Adequacy Risk Weight for Educational Loans It has now been decided that the 'educational loans' be classified as non-consumer credit for the purpose of capital adequacy norms. Accordingly, the risk weight applicable to educational loans would be as follows: a) Under Basel I framework, the risk weight would be 100 per cent, as against 125 per cent at present and b) Under Basel II framework, the educational loans, now no longer being a part of consumer credit, would be treated as a component of the regulatory retail portfolio under paragraph 5.9 of our circular dated April 27, 2007 and attract a risk weight of 75 per cent, as against 125% at present. (DBOD.BP.BC. No.59/ / dated January 17, 2008) Bank Finance to Factoring Companies DBOD / DBS Circulars It has now been decided that, henceforth, banks can extend financial assistance to support the factoring business of Factoring Companies which comply with the following criteria: a) The companies carry out all the components of a standard factoring activity, viz., financing of receivables, sale-ledger management and collection of receivable,. b) They derive at least 80 per cent of their income from factoring activity, c) The receivables purchased/financed, irrespective of whether on 'with recourse' or 'without recourse' basis, form at least 80 per cent of the assets of the Factoring Company, d) The assets/income referred to above would not include the assets/income relating to any bill discounting facility extended by the Factoring Company, and e) The financial assistance extended by the Factoring Companies is secured by hypothecation or assignment of receivables in their favour. (DBOD.BP. BC. No. 60 / / dated February 12, 2008) Section 24 of the Banking Regulation Act, 1949 Maintenance of Statutory Liquidity Ratio The Banking Regulation (Amendment) Act, 2007 replacing the Banking Regulation (Amendment) Ordinance, 2007 came into effect from January 23, Consequent upon amendment to Section 24 of the Banking Regulation Act, 1949 all scheduled commercial banks shall continue to maintain a uniform statutory liquidity ratio (SLR) of 25 per cent on their total net demand and time liabilities in the assets as specified in the notification dated February 13, 2008 (DBOD No. Ret.BC. 62/ / dated February 13, 2008) Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks The time limit given to the customer for preferring their complaints/grievances as specified in the above para has now been revised. If a complainant does not get satisfactory response from the bank within 30 days from the date of his lodging the complaint, he will have the option to approach the Office of the concerned Banking Ombudsman for redressal of his grievance/s. (DBOD.NO.BP. 64 / / dated March 03, 2008 ) Prudential Norms for Issuance of Letters of Comfort by Banks regarding their Subsidiaries The matter of issuance of LoCs by the banks was examined by the RBI recently in view of the possible liabilities / obligations that may have to be met by the issuing banks in future and it has been decided to lay down the following prudential norms in 74
5 this regard: (i) Every issuance of an LoC should be subject to the prior approval by the Board of Directors of the bank. The bank should lay down a well defined policy for issuance of LoCs, including the indicative cumulative ceilings up to which LoCs could be issued by the banks for various purposes. The policy must, inter alia, provide that the banks will obtain and keep on record a legal opinion in regard to the legally binding nature of the LoC issued. An appropriate system for keeping record of all the LoCs issued should also be put in place, (ii) The bank should make an assessment, at least one a year, of the likely financial impact that might arise from the LoCs issued by it and outstanding, in case it is called upon to support its subsidiary in India or abroad, as per the obligations assumed under the LoCs issued. Such an assessment should be made qualitatively on judgmental basis and the amount so assessed should be reported to the Board, at least once a year. As a first time exercise, such an assessment should be undertaken in respect of all the outstanding LoCs issued and outstanding as on March 31, 2008 and the results placed before the Board in the ensuing meeting. Such an assessment should form a part of the bank's liquidity planning exercise as well, iii) Any LoC that is assessed to be a contingent liability of the bank by a rating agency / internal or external auditors/ internal inspectors or the RBI inspection team, shall be treated, for all prudential regulatory purposes, on the same footing as a financial guarantee issued by the bank, and iv) The banks should disclose full particulars of all the LoCs issued by them during the year, including their assessed financial impact, as also their assessed cumulative financial obligations under the LoCs issued by them in the past and outstanding, in its published financial statements, as part of the 'Notes to Accounts. (DBOD No. BP. BC.65 / / dated March 4, 2008) Annual Reporting System in respect of Non-SSI Sick/Weak Industrial Units The revised definitions of Non-SSI sick/weak units are as follows, which may be followed henceforth for reporting of the captioned return/data: (i) A Non-SSI sick unit is a Non-SSI industrial undertaking (regardless of type of incorporation) whose accumulated losses, as at the end of the latest financial year, equal or exceed its entire net worth (viz., paid up capital and free reserves), and (ii) A Non-SSI weak unit is a Non-SSI industrial undertaking (regardless of type of incorporation) if (a) any of its borrowal accounts (principal or interest has remained overdue for a period exceeding one year; (b) there is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous financial year. The data reporting format is given in ANNEX-I. Also, to facilitate proper industry classification, detailed descriptions of industrial activities have been provided in ANNEX-II. Banks are advised to submit the annual return on Non-SSI sick/weak units as on March 31, within one month from the reference date. (DBS.CO.BC.OSMOS No.12/ / dated March 19, 2008) Supervisory Review Process under the New Capital Adequacy Framework Guidelines for Pillar 2 The New Capital Adequacy Framework (NCAF), based on the Basel II Framework evolved by the Basel Committee on Banking Supervision, has been adapted for India vide RBI's Circular DBOD.No.BP.BC 90/ / dated April 27, These guidelines are being issued by way of further guidance to the banks. The Basel II Framework has three components or three Pillars. The Pillar 1 is the Minimum Capital Ratio while the Pillar 2 and Pillar 3 are the Supervisory Review Process (SRP) and Market Discipline, respectively. While the guidelines on the Pillar 1 and Pillar 3 have already been issued by the RBI vide the aforesaid circular, the guidelines in regard to the SRP and the Internal Capital Adequacy Assessment Process (ICAAP) are furnished at Annex - I. An illustrative outline of the format of the ICAAP document is furnished at Annex II. The objective of the SRP is to ensure that the banks have adequate capital to support all the risks in their business as also to encourage them to develop and use better risk management techniques for monitoring and managing their risks. This in turn would require a well-defined internal assessment process within the banks through which they assure the RBI that adequate capital is indeed held towards the various risks to which they are exposed. The process of assurance could also involve an active dialogue between the bank and the RBI so that, when warranted, appropriate intervention could be made to either reduce the risk exposure of the bank or augment / restore its capital. Thus, ICAAP is an important component of the SRP. It is recognised that there is no one single approach for conducting the ICAAP and the market consensus in regard to the best practice for undertaking ICAAP is yet to emerge. The methodologies and techniques are still evolving particularly in regard to measurement of non-quantifiable risks, such as reputational and strategic risks. These guidelines, therefore, seek to provide only broad principles to be followed by the banks in developing their ICAAP. The banks are advised to develop and put in place, with the approval of their Boards, an ICAAP commensurate with their size, level of complexity, risk profile and scope of operations. The ICAAP would be in addition to a bank's calculation of regulatory capital requirements under Pillar 1 and must 75
6 be operationalised with effect from March 31, 2008 by the foreign banks and the Indian banks with operational presence outside India, and from March 31, 2009 by all other commercial banks, excluding the Local Area Banks and Regional Rural banks. The banks are advised to transmit to the RBI, a copy of their Board-approved ICAAP document. The document should, inter alia, include the capital adequacy assessment and projections of capital requirement for the ensuing year, along with the plans and strategies for meeting the capital requirement. An illustrative outline of a format of the ICAAP document is furnished at Annex II, for guidance of the banks though the ICAAP documents of the banks could vary in length and format, in tune with their size, level of complexity, risk profile and scope of operations. The first ICAAP document should reach the RBI not later than June 30, 2008 or March 31, 2009, as applicable, and thereafter, before the end of March every year, covering the capital assessment and projections for the following financial year. (For details on guidelines on Pillar 2 and format of ICAAP, please refer to the original circular) (DBOD.No.BP.BC 66 / / dated March 26, 2008) Prudential Guidelines on Capital Adequacy and Market Discipline Implementation of New Capital Adequacy Framework (NCAF) Amendments In the light of clarifications sought by banks during the course of implementation of the parallel run of the NCAF, the guidelines have been reviewed, and it has been decided to effect certain amendments as detailed in the Annex. All other provisions of the April 27, 2007 circular, except to the extent modified as per the Annex, remain unchanged. The amendments will come into force with immediate effect. (For details of the amendments, please refer to the original circular) (DBOD.No.BP.BC.67 / / dated March 31, 2008 ) DPSS Circulars Use of electronic mode of payment for large value transactions It is now decided to make large value payments of Rs.1 crore and above mandatory to be routed through electronic payment mechanism with time frame as under: Type of transactions Time frame (i) All payment transactions of Rs. 1 crore and above 1st April 2008 Between the RBI regulated entities such as banks, Primary dealers and NBFCs (ii) All payments of Rs. 1 crore and above in RBI regulated 1st April 2008 markets such as money market, Government securities market and foreign exchange market (DPSS No / / dated March 10, 2008) RPCD: Rural Planning and Credit Department UBD: Urban Banks Department DBOD: Department of Banking Operations and Development DBS: Department of Banking Supvervision DPSS: Department of Payment and Settlement Systems Complied by : S. Thyagarajan, Member of Faculty College of Agricultural Banking, Reserve Bank of India, Pune. 76
BASIC SAVING BANK DEPOSIT ACCOUNT (PNB ZERO BAL ANCE ACCOUNT)
Scheme Details BASIC SAVING BANK DEPOSIT ACCOUNT (PNB ZERO BAL ANCE ACCOUNT) 1. Eligibility: The Saving Fund account may be opened by an INDIVIDUAL singly or jointly, minors of the age of 10 years and
More informationANNEXURE POLICY ON BANK DEPOSITS
ANNEXURE POLICY ON BANK DEPOSITS 1. TYPES OF DEPOSIT ACCOUNTS: While various deposit products offered by the Bank are assigned different names, the deposit products can be categorized broadly into the
More informationINFORMATION BROCHURE. Refinance Scheme for Scheduled Banks for their lending for Housing, 2003
INFORMATION BROCHURE Refinance Scheme for Scheduled Banks for their lending for Housing, 2003 1. Introduction The objective of the scheme is to provide refinance assistance to Scheduled Banks (SBs) in
More informationRBI/2007-2008/165 DBOD. No. BP. BC. 38 / 21.04.098/ 2007-08 October 24, 2007. Guidelines on Asset-Liability Management (ALM) System amendments
RBI/2007-2008/165 DBOD. No. BP. BC. 38 / 21.04.098/ 2007-08 October 24, 2007 Chairmen / Chief Executive Officers All Commercial Banks (excluding RRBs) Guidelines on Asset-Liability Management (ALM) System
More informationPOV on Draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs
POV on Draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs April 2015 For private circulation only Draft Guidelines on Managing Risks and Code of Conduct
More informationSCHEDULE-17 SIGNIFICANT ACCOUNTING POLICIES 1. GENERAL BASIS OF PREPARATION
SCHEDULE-17 SIGNIFICANT ACCOUNTING POLICIES 1. GENERAL BASIS OF PREPARATION The financial statements have been prepared and presented under historical cost convention on accrual basis of accounting unless
More informationRBI/2014-2015/409 DBR.No.FSD.BC.62/24.01.018/2014-15 January 15, 2015
RBI/2014-2015/409 DBR.No.FSD.BC.62/24.01.018/2014-15 January 15, 2015 All Scheduled Commercial Banks (excluding RRBs) Dear Sir/ Madam, Entry of Banks into Insurance Business Please refer to our Circular
More informationIREDA-NCEF REFINANCE SCHEME REFINANCE SCHEME FOR PROMOTION OF RENEWABLE ENERGY SUPPORTED BY THE NATIONAL CLEAN ENERGY FUND
IREDA-NCEF REFINANCE SCHEME REFINANCE SCHEME FOR PROMOTION OF RENEWABLE ENERGY SUPPORTED BY THE NATIONAL CLEAN ENERGY FUND IREDA NCEF REFINANCE SCHEME REFINANCE SCHEME FOR PROMOTION OF RENEWABLE ENERGY
More informationPolicy on Dormant Accounts & Unclaimed Deposits
Policy on Dormant Accounts & Unclaimed Deposits CORPRATE PLANNING DEPARTMENT Table of contents SL No. Contents 1 Preamble 2 Objective 3 Classification of accounts as Dormant Accounts 4 Operational Procedure
More informationSCHEDULE-17 SIGNIFICANT ACCOUNTING POLICIES 1. GENERAL BASIS OF PREPARATION
SCHEDULE-17 SIGNIFICANT ACCOUNTING POLICIES 1. GENERAL BASIS OF PREPARATION The financial statements have been prepared and presented under historical cost convention on accrual basis of accounting unless
More informationPOLICY INOPERATIVE AND UNCLAIMED ACCOUNTS
POLICY ON INOPERATIVE AND UNCLAIMED ACCOUNTS Strategy & Business Development Division Table of contents. 1. Introduction 2. Purpose of Classification 3. Definition of Inoperative Accounts 4. Definition
More informationPOLICY ON BANK DEPOSITS
POLICY ON BANK DEPOSITS 1. Preamble One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking
More informationApplication for Status as a Registered Bank:
Application for Status as a Registered Bank: Material to be provided to the Reserve Bank Prudential Supervision Department Document Issued: Introduction 2 1. This release identifies the information which
More informationAuthorised Persons Regulations
Authorised Persons Regulations Contents Part 1: General Provisions Article 1: Preliminary... Article 2: Definitions... Article 3: Compliance with the Regulations and Rules... Article 4: Waivers... Part
More informationMake your account KYC compliant
Know Your Customer (KYC) Dear Customers, Provide Information we seek & Help us in preventing Money Laundering and Combating Financing of Terrorism Make your account KYC compliant 1. What is Know Your Customer
More informationMaster Circular - Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
Master Circular - Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) A. Purpose This Master Circular prescribes the broad details of the Reserve Requirements. B. Classification - A statutory
More informationSumitomo Mitsui Banking Corporation Deposit Policy. Version: 04
Sumitomo Mitsui Banking Corporation Deposit Policy Version: 04 Table of Contents Table of Contents 1. Introduction... 1 2. Types of Deposit Accounts... 2 3. Deposits... 3 4. Account opening and operation
More informationDisclosures Under BASEL III Capital Regulations For the quarter ended 31 st December, 2013
Capital Adequacy Disclosures Under BASEL III Capital Regulations For the quarter ended 31 st December, 2013 In accordance with the guidelines of RBI, the Group has adopted standardised approach for credit
More informationGuidelines for setting up of and operating the Trade Receivables Discounting System (TReDS)
Guidelines for setting up of and operating the Trade Receivables Discounting System (TReDS) Micro, Small and Medium Enterprises (MSMEs), despite the important role played by them in the economic fabric
More informationGUIDELINES ON THE CLASSIFICATION AND IMPAIRMENT PROVISIONS FOR LOANS / FINANCING FOR LABUAN BANKS
GUIDELINES ON THE CLASSIFICATION AND IMPAIRMENT PROVISIONS FOR LOANS / FINANCING FOR LABUAN BANKS 1.0 Introduction 1.1 The Guidelines set out the minimum requirements on the classification of impaired
More informationDeposit Policy. The deposit products can be categorised broadly into the following types. Definitions of major deposits schemes are as under: -
1 Deposit Policy Preamble One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking System.
More informationTHE SALIENT FEATURES OF RBI MASTER CIRCULAR ON CREDIT CARD OPERATIONS OF BANKS
THE SALIENT FEATURES OF RBI MASTER CIRCULAR ON CREDIT CARD OPERATIONS OF BANKS 01. Basic features of credit cards The term credit card usually/generally refers to a plastic card assigned to a cardholder,
More informationIREDA-NCEF REFINANCE SCHEME
IREDA-NCEF REFINANCE SCHEME REVIVAL OF THE OPERATIONS OF EXISTING BIOMASS POWER & SMALL HYDRO POWER PROJECTS AFFECTED DUE TO UNFORSEEN CIRCUMSTANCES SUPPORTED BY THE NATIONAL CLEAN ENERGY FUND IREDA NCEF
More informationReport on Internal Control
Annex to letter from the General Secretary of the Autorité de contrôle prudentiel to the Director General of the French Association of Credit Institutions and Investment Firms Report on Internal Control
More information18,343 18,308 3 Accumulated other comprehensive income (and other reserves)
The information in this report is prepared quarterly based on the ADI financial records. The financial records are not audited for the Quarters ended 30 September, 31 December and 31 March. The report
More informationCREDIT CARD OPERATIONS OF BANKS
CREDIT CARD OPERATIONS OF BANKS A. Issue of Credit Cards by Banks The term credit card usually/generally refers to a plastic card assigned to a cardholder, usually with a credit limit, that can be used
More informationStatement of Principles
Statement of Principles Bank Registration and Supervision Prudential Supervision Department Document Issued: 2 TABLE OF CONTENTS Subject Page A. INTRODUCTION... 3 B. PURPOSES OF BANK REGISTRATION AND SUPERVISION...
More informationMizuho Bank, Ltd. India. Deposit Policy. Revised on May 27, 2015
Mizuho Bank, Ltd. India Deposit Policy Revised on May 27, 2015 DISCLAIMER This Policy has been prepared on the basis of existing regulatory/statutory guidelines, existing risk management policies in the
More information20 April 2006. To Manager All Commercial Banks*
Unofficial Translation by the courtesy of The Foreign Banks' Association This translation is for the convenience of those unfamiliar with the Thai language. Please refer to the Thai text for the official
More informationIssuers and merchant acquirers).
CREDIT CARD OPERATIONS OF BANKS Basic Features The term credit card usually/generally refers to a plastic card assigned to a cardholder, usually with a credit limit, that can be used to purchase goods
More informationi) Demand deposits means a deposit received by the BANK which is withdrawable on demand;
Policy on Bank Deposits 1. Preamble One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of the Banking
More informationZAG BANK BASEL II & III PILLAR 3 DISCLOSURES. December 31, 2014
ZAG BANK BASEL II & III PILLAR 3 DISCLOSURES December 31, 2014 Zag Bank (the Bank ) is required to make certain disclosures to meet the requirements of the Office of the Superintendent of Financial Institutions
More informationJupiter Asset Management Ltd Pillar 3 Disclosures as at 31 December 2014
Jupiter Asset Management Ltd Pillar 3 Disclosures CONTENTS Overview 2 Risk management framework 3 Own funds 7 Capital requirements 8 Credit risk 9 Interest rate risk in non-trading book 11 Non-trading
More informationCHAPTER 13 COMPLIANCE
CHAPTER 13 COMPLIANCE By a Trading Member / Clearing Member 13.1 Annual Accounts and Audit 13.1.1 Every trading member / clearing member shall prepare annual accounts for each financial year ending on
More informationExposure Draft. Guidance Note on Accounting for Derivative Contracts
Exposure Draft Guidance Note on Accounting for Derivative Contracts (Last date of comments: January 21, 2015) Issued by Research Committee The Institute of Chartered Accountants of India (Set up by an
More informationODA. Direct investment in joint venture (JV)/wholly owned subsidiary (WOS) abroad under automatic route To
ODA Direct investment in joint venture (JV)/wholly owned subsidiary (WOS) abroad under automatic route To (Name and address of the For use by RBI only authorised dealer) Date of receipt : Inward No. Identification
More informationSumitomo Mitsui Banking Corporation Citizen charter. Version: 02
Sumitomo Mitsui Banking Corporation Citizen charter Version: 02 Table of Contents Table of Contents 1. Introduction...1 2. Common practice followed by us...2 3. Fair banking practices...3 4. Common areas
More informationPART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2
PART I - PRELIMINARY...1 Objective...1 Applicability...2 Legal and Regulatory Provision...2 PART II POLICY REQUIREMENTS...3 Investment and Risk Management Policy...3 Monitoring and Control...5 Roles of
More informationPOLICY ON COLLECTION OF CHEQUES/INSTRUMENTS AND DISHONOUR OF INSTRUMENTS
1. Introduction POLICY ON COLLECTION OF CHEQUES/INSTRUMENTS AND DISHONOUR OF INSTRUMENTS Keeping in view the technological progress in payment and settlement systems and the qualitative changes in operational
More informationFinansinspektionen's Regulations
Finansinspektionen's Regulations Publisher: Gent Jansson, Finansinspektionen, Box 6750, 113 85 Stockholm. Ordering address: Thomson Fakta AB, Box 6430, 113 82 Stockholm. Tel +46 8-587 671 00, Fax +46 8-587
More informationGROUP POLICY TO COMBAT MONEY LAUNDERING AND TERRORIST FINANCING. Anti-Money Laundering Policy
PAG. 1 DI 37 GROUP POLICY TO COMBAT MONEY LAUNDERING AND TERRORIST FINANCING Anti-Money Laundering Policy MACROPROCESS PROCESS TITLE DATE OF UPDATE PROTOCOL NO. 6 INTERNAL AND DEVELOPMENT PROCESSES 6.02
More informationBERMUDA MONETARY AUTHORITY
BERMUDA MONETARY AUTHORITY BANKS AND DEPOSIT COMPANIES ACT 1999 THE BERMUDA MONETARY AUTHORITY S RELATIONSHIP WITH AUDITORS AND REPORTING ACCOUNTANTS OF BANKS AND DEPOSIT COMPANIES DECEMBER 2012 Table
More informationEXTERNAL COMMERCIAL BORROWINGS & TRADE CREDITS. FEMA guidelines provide Indian companies to access funds from abroad by following methods:-
EXTERNAL COMMERCIAL BORROWINGS & TRADE CREDITS FEMA guidelines provide Indian companies to access funds from abroad by following methods:- a) External Commercial Borrowings (ECB):- It refers to commercial
More informationApplication for a Banking Authority Foreign Bank Branches Prudential Statement J2
Application for a Banking Authority Foreign Bank Branches Prudential Statement J2 PS J2 Introduction 1. A foreign bank wishing to operate as a branch in Australia must obtain a banking authority issued
More informationNews Release April 29, 2016. Performance Review: Quarter ended March 31, 2016
News Release April 29, Performance Review: Quarter ended March 31, 16% year-on-year growth in domestic advances; retail portfolio crossed ` 2,00,000 crore (US$ 30.2 billion) during the quarter ended March
More informationCORPORATE GOVERNANCE POLICY Srei Equipment Finance Limited
CORPORATE GOVERNANCE POLICY Srei Equipment Finance Limited 1. PREAMBLE The Company believes that a good corporate governance system is necessary to ensure its long term success. The Company ensures good
More informationASSET LIABILITY MANAGEMENT (ALM) & ASSET CLASSIFICATION
AKME STAR HOUSING FINANCE LIMITED ASSET LIABILITY MANAGEMENT (ALM) & ASSET CLASSIFICATION Page1 CONTENTS I Revision History... II Introduction... III IV V VI VII VIII Company s Philosophy... Objectives
More informationYEARENDED31DECEMBER2013 RISKMANAGEMENTDISCLOSURES
RISKMANAGEMENTDISCLOSURES 2015 YEARENDED31DECEMBER2013 ACCORDINGTOCHAPTER7(PAR.34-38)OFPARTCANDANNEXXIOFTHECYPRUSSECURITIES ANDEXCHANGECOMMISSIONDIRECTIVEDI144-2007-05FORTHECAPITALREQUIREMENTSOF INVESTMENTFIRMS
More informationUnofficial translation of AML/ CFT Regulations for Banks
Unofficial translation of AML/ CFT Regulations for Banks Introduction The Central Bank of Egypt (CBE) issued on 19 November 2003 AML Regulations for Banks, according to the Anti money Laundering Law No.
More informationIMPORTANT GUIDELINES ON MANAGEMENT OF ADVANCES UCBs*
IMPORTANT GUIDELINES ON MANAGEMENT OF ADVANCES UCBs* 1. WORKING CAPITAL ASSESSMENT Primary (Urban) Cooperative Banks (UCBs) are expected to put in place with the approval of their Boards, transparent policies
More informationOUTSOURCING POLICY. Version Number 1.0 Dated 15 th July 2009
OUTSOURCING POLICY OF Version Number 1.0 Dated 15 th July 2009 1 Table of contents Page No. Introduction 3 Activities that are proposed to be outsourced by the Bank 4 Activities that are already outsourced
More information(iv) Bank may extend finance to a person who proposes to buy an old house where he is presently residing as a tenant.
Master Circular Housing Finance A. Purpose To consolidate framework of rules/regulations and clarification on Housing Finance issued by Reserve Bank of India from time to time. B. Classification A statutory
More informationLONDON STOCK EXCHANGE HIGH GROWTH SEGMENT RULEBOOK 27 March 2013
LONDON STOCK EXCHANGE HIGH GROWTH SEGMENT RULEBOOK 27 March 2013 Contents INTRODUCTION... 2 SECTION A ADMISSION... 3 A1: Eligibility for admission... 3 A2: Procedure for admission... 4 SECTION B CONTINUING
More informationDraft Guidelines for setting up of and operating TReDS
Draft Guidelines for setting up of and operating TReDS Micro, Small and Medium Enterprises (MSMEs), despite the important role played by them in the economic fabric of the country, continue to face constraints
More informationCredit Risk. Loss on default = D x E x (1-R) Where D is default percentage, E is exposure value and R is recovery rate.
Credit Risk Bank operations involve sanctioning of loans and advances to customers for variety of purposes. These loans may be business loans for short or long term commitments and consumer finance for
More informationD- To keep all the papers and documents justifying all transactions and operations for 10 years.
PROCEDURES MANUAL North Africa International Bank TITLE: Transfers, Cash Remittances and Withdrawals PROCEDURE NOTE Anti-Money Laundering (AML) and Anti-Terrorism Financing (ATF) Combating Procedures.
More informationSaxo Capital Markets CY Limited
Saxo Capital Markets CY Limited DISCLOSURES IN ACCORDANCE WITH THE REGULATION FOR THE CAPITAL REQUIREMENTS OF INVESTMENT FIRMS FOR THE YEAR ENDED 31 DECEMBER 2014 MAY 2015 CONTENTS 1. GENERAL INFORMATION
More informationGuidelines. ADI Authorisation Guidelines. www.apra.gov.au Australian Prudential Regulation Authority. April 2008
Guidelines ADI Authorisation Guidelines April 2008 www.apra.gov.au Australian Prudential Regulation Authority Disclaimer and copyright These guidelines are not legal advice and users are encouraged to
More informationNews Release January 28, 2016. Performance Review: Quarter ended December 31, 2015
News Release January 28, 2016 Performance Review: Quarter ended December 31, 20% year-on-year growth in total domestic advances; 24% year-on-year growth in retail advances 18% year-on-year growth in current
More informationSCHEDULE-17 SIGNIFICANT ACCOUNTING POLICIES. 1. General
SCHEDULE-17 SIGNIFICANT ACCOUNTING POLICIES 1. General The financial statements are prepared on historical cost basis by following going concern concept and conform to the statutory provisions and practices
More information1. What are the approximate rates for obtaining NHB refinance, NCD, RMBS, Bank loans, Deposits, CPs, ECB, any other instruments?
1. What are the approximate rates for obtaining NHB refinance, NCD, RMBS, Bank loans, Deposits, CPs, ECB, any other instruments? NHB Refinance Under Rural Housing Fund 1 : Interest rate on refinance =
More informationAxis Bank Ltd. Policy for lending to Micro and Small Enterprises (MSEs)
Axis Bank Ltd. Policy for lending to Micro and Small Enterprises (MSEs) Introduction: The Micro and Small Enterprise (MSE) sector contributes significantly to manufacturing output, employment and exports
More informationCode of Conduct for Mobile Money Providers
Code of Conduct for Mobile Money Providers SOUNDNESS OF SERVICES FAIR TREATMENT OF CUSTOMERS SECURITY OF THE MOBILE NETWORK AND CHANNEL VERSION 2 - OCTOBER 2015 Introduction This Code of Conduct identifies
More informationInternal Control Systems and Maintenance of Accounting and Other Records for Interactive Gaming & Interactive Wagering Corporations (IGIWC)
Internal Control Systems and Maintenance of Accounting and Other Records for Interactive Gaming & Interactive Wagering Corporations (IGIWC) 1 Introduction 1.1 Section 316 (4) of the International Business
More informationHow To Write A Financial Services Licence
GS 003 (October 2007) Guidance Statement GS 003 Audit and Review Requirements for Australian Financial Services Licensees under the Corporations Act 2001 Issued by the Auditing and Assurance Standards
More information-------------------------------------------------
Unofficial Translation With courtesy of the Foreign Banks' Association This translation is for the convenience of those unfamiliar with the Thai language Please refer to the Thai text for the official
More informationPOLICY ON BANK DEPOSITS (2014)
1 POLICY ON BANK DEPOSITS (2014) PREAMBLE One of the important functions of the Bank is to accept deposits from the public for the purpose of lending. In fact, depositors are the major stakeholders of
More informationUnofficial Translation with the courtesy of The Foreign Banks' Association ------------------------------------------------------------------------
Unofficial Translation with the courtesy of The Foreign Banks' Association This translation is for the convenience of those unfamiliar with the Thai language. Please refer to the Thai text for the official
More informationMAINTENANCE OF DEPOSIT ACCOUNTS BY UCBs
Opening of Accounts Introduction MAINTENANCE OF DEPOSIT ACCOUNTS BY UCBs The practice of obtaining proper introduction should not be treated as a mere formality, but as a measure of safe-guard against
More informationSUPERVISORY AND REGULATORY GUIDELINES: PU48-0809 GUIDELINES ON MINIMUM STANDARDS FOR THE OUTSOURCING OF MATERIAL FUNCTIONS
SUPERVISORY AND REGULATORY GUIDELINES: PU48-0809 ISSUED: 4 th May 2004 REVISED: 27 th August 2009 GUIDELINES ON MINIMUM STANDARDS FOR THE OUTSOURCING OF MATERIAL FUNCTIONS I. INTRODUCTION The Central Bank
More informationEuropean Bank for Reconstruction and Development
European Bank for Reconstruction and Development The Municipal Finance Facility Special Fund Annual Financial Report 31 December 2009 European Bank for Reconstruction and Development The Municipal Finance
More informationREGULATION FOR LIFE INSURANCE AND FAMILY TAKAFUL INSURANCE BUSINESSES ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM
REGULATION FOR LIFE INSURANCE AND FAMILY TAKAFUL INSURANCE BUSINESSES ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM (unofficial English translation) REGULATION FOR LIFE INSURANCE AND FAMILY
More informationCapital Market Services UK Limited Pillar 3 Disclosure
February 2013 Capital Market Services UK Limited Pillar 3 Disclosure Contents 1.0 Overview 2.0 Frequency and location of disclosure 3.0 Verification 4.0 Scope of application 5.1 Risk Management objectives
More informationClassification and Impairment Provisions for Loans/Financing
Provisions for SECTION A... 1 1. Introduction... 1 2. Applicability... 1 3. Legal Provision... 2 4. Effective Date... 2 5. Documents Superseded... 2 SECTION B... 3 6. Compliance with the Malaysian Financial
More informationOperational Risk Publication Date: May 2015. 1. Operational Risk... 3
OPERATIONAL RISK Contents 1. Operational Risk... 3 1.1 Legislation... 3 1.2 Guidance... 3 1.3 Risk management process... 4 1.4 Risk register... 7 1.5 EBA Guidelines on the Security of Internet Payments...
More informationInternational Accounting Standard 28 Investments in Associates
International Accounting Standard 28 Investments in Associates Scope 1 This Standard shall be applied in accounting for investments in associates. However, it does not apply to investments in associates
More informationMAJOR AND CONTINUING CONNECTED TRANSACTIONS RENEWAL OF THE EXISTING FINANCIAL SERVICES FRAMEWORK AGREEMENT
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness
More informationInvestments in Associates
Indian Accounting Standard (Ind AS) 28 Investments in Associates Investments in Associates Contents Paragraphs SCOPE 1 DEFINITIONS 2-12 Significant Influence 6-10 Equity Method 11-12 APPLICATION OF THE
More informationPolicy on Joint Lending Arrangement Background
Policy on Joint Lending Arrangement Background 1. With a view to introducing flexibility in credit delivery system and to facilitate smooth flow of credit, various regulatory prescriptions regarding conduct
More informationRBI /2013-14 /50 DNBS (PD) CC No.348 / 03.02.001/ 2013-14 July 1, 2013
RBI /2013-14 /50 DNBS (PD) CC No.348 / 03.02.001/ 2013-14 July 1, 2013 All NBFCs Dear Sirs, Master Circular The Non-Banking Financial Company -Factors (Reserve Bank) Directions, 2012 As you are aware,
More information(unofficial English translation)
REGULATION ON PREVENTION OF MONEY LAUNDERING AND FINANCING OF TERRORISM FOR MONEY TRANSFER BUSINESSES AND MONEY CHANGING BUSINESSES (unofficial English translation) REGULATION ON PREVENTION OF MONEY LAUNDERING
More informationREPUBLIC OF ARMENIA LAW ON CREDIT ORGANIZATIONS CHAPTER 1 GENERAL PROVISIONS
REPUBLIC OF ARMENIA LAW ON CREDIT ORGANIZATIONS CHAPTER 1 GENERAL PROVISIONS ARTICLE 1. Subject Matter of the Law This Law shall govern the licensing procedure, regulation and supervision of activities
More informationBANK BRANCH STATUTORY AUDIT CERTAIN ASPECTS. Verify transactions during the year relating to:
BANK BRANCH STATUTORY AUDIT CERTAIN ASPECTS S. Item Important Audit Checks 1. Deposit i. Term ii. Saving iii. Current iv. FCNR/ NRE/ NRNR Verify transactions during the year relating to: o New Accounts
More informationBasel Committee on Banking Supervision. Sharing of financial records between jurisdictions in connection with the fight against terrorist financing
Basel Committee on Banking Supervision Sharing of financial records between jurisdictions in connection with the fight against terrorist financing April 2002 Sharing of financial records between jurisdictions
More informationRBI/2010-11/9 Master Circular No. 09/2010-11 July 01, 2010. All Authorised Persons, who are Indian Agents under Money Transfer Service Scheme
RBI/2010-11/9 Master Circular No. 09/2010-11 July 01, 2010 To Madam / Sir, All Authorised Persons, who are Indian Agents under Money Transfer Service Scheme Master Circular on Money Transfer Service Scheme
More informationChecklist for Credit Risk Management
Checklist for Credit Risk Management I. Development and Establishment of Credit Risk Management System by Management Checkpoints - Credit risk is the risk that a financial institution will incur losses
More informationNEPAL ACCOUNTING STANDARDS ON INVESTMENT IN ASSOCIATES
NAS 25 NEPAL ACCOUNTING STANDARDS ON INVESTMENT IN ASSOCIATES CONTENTS Paragraphs SCOPE 1-2 DEFINITIONS 3-13 Significant influence 7-11 Equity method 12-13 APPLICATION OF THE EQUITY METHOD 14-33 Impairment
More informationConsolidated Financial Statements
332 Accounting Standard (AS) 21 Consolidated Financial Statements Contents OBJECTIVE SCOPE Paragraphs 1-4 DEFINITIONS 5-6 PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS 7-8 SCOPE OF CONSOLIDATED FINANCIAL
More informationHow To Deal With A Bank In A Country That Is A Customer Friendly
FAIR PRACTICES CODE This has reference to RBI Circular No. 2012-13/416/DNBS. CC. PD No. 320 /03.10.01/2012-13 dated 18 th February, 2013, wherein the Reserve Bank of India (RBI) has revised the guidelines
More informationCENTRAL BANK OF INDIA CHEQUE COLLECTION POLICY (REVIEWED AND UPDATED AS ON 31.01.2012)
CENTRAL BANK OF INDIA CHEQUE COLLECTION POLICY (REVIEWED AND UPDATED AS ON 31.01.2012) Introduction: The Cheque Collection Policy of the Bank is a reflection of our on- going efforts to provide better
More informationGUIDANCE NOTE ON OUTSOURCING
GN 14 GUIDANCE NOTE ON OUTSOURCING Office of the Commissioner of Insurance Contents Page I. Introduction.. 1 II. Application...... 1 III. Interpretation.... 2 IV. Legal and Regulatory Obligations... 3
More informationHow To Write An Audit On Jet Airways Training Academy
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JET AIRWAYS TRAINING ACADEMY PRIVATE LIMITED Report on the Standalone Financial Statements We have audited the accompanying financial statements of JET AIRWAYS
More informationMASTER CIRCULAR ON INTEREST RATES ON ADVANCES
MASTER CIRCULAR ON INTEREST RATES ON ADVANCES A. Purpose To consolidate the directives on interest rates on advances issued by Reserve Bank of India from time to time. B. Classification A statutory directive
More informationExposure Norms & Guidelines on Loans & Advances
Exposure Norms & Guidelines on Loans & Advances Uma Sankar Reserve Bank of India College of Agricultural Banking Version: 1 Outline of presentation Introduction Exposure ceilings definitions Other restrictions
More informationOrdinance on Collective Investment Schemes
English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force. Ordinance on Collective Investment Schemes (Collective
More informationEASTERN CARIBBEAN CENTRAL BANK
EASTERN CARIBBEAN CENTRAL BANK GUIDELINES ON CREDIT RISK MANAGEMENT FOR INSTITUTIONS LICENSED TO CONDUCT BANKING BUSINESS UNDER THE BANKING ACT Prepared by the BANK SUPERVISION DEPARTMENT May 2009 TABLE
More informationSSAP 32 STATEMENT OF STANDARD ACCOUNTING PRACTICE 32 CONSOLIDATED FINANCIAL STATEMENTS AND ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES
SSAP 32 STATEMENT OF STANDARD ACCOUNTING PRACTICE 32 CONSOLIDATED FINANCIAL STATEMENTS AND ACCOUNTING FOR INVESTMENTS IN SUBSIDIARIES (Issued January 2001) The standards, which have been set in bold italic
More informationSTATEMENT 3.340 AUDITING GUIDELINE PROSPECTUSES AND THE REPORTING ACCOUNTANT
The guidance on reports on working capital requirements (paragraphs 67 to 71) and reports on borrowings (paragraphs 72 to 75) in this AG 3.340 is applicable for engagements where the investment circular
More informationGuidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004
Guidelines for Financial Institutions Outsourcing of Business Activities, Functions, and Processes Date: July 2004 1. INTRODUCTION Financial institutions outsource business activities, functions and processes
More information