RBI’s discussion paper proposes a 4-tier regulatory framework for NBFCs

The Reserve Bank of India has released today (January 22, 2021), the Discussion Paper on Revised Regulatory Framework for NBFCs- A Scale-Based Approach. The paper proposes the regulatory and supervisory framework of NBFCs shall be based on a four-layered structure– Base Layer, Middle Layer, Upper Layer and a possible Top Layer. NBFCs in lower layer…

RBI releases 2020 list of Domestic Systemically Important Banks (D-SIBs)

The Reserve Bank of India on Tuesday released list of Domestic Systemcically Important Banks (D-SIBS) in India. State-owned SBI, along with private sector lenders ICICI Bank and HDFC Bank  are declared as Domestic Systemically Important Banks (D-SIBs) or institutions which are ‘too big to fail’ as on March 31, 2020. The Reserve Bank had announced…

RBI sets-up working group to evaluate digital lending

The Reserve Bank of India (RBI) on Wednesday announced the formation of a working group (WG) on digital lending, including through online platforms and mobile apps.  The recent surge and attractiveness of online lending platforms/ mobile lending apps (‘digital lending’) have raised certain serious concerns to Central Bank which have wider systemic implications. The newly…

FSDC reviews major impact on global/ domestic economy and financial markets

A meeting of the Sub-Committee of the Financial Stability and Development Council (FSDC) was held today (January 13, 2021) in Mumbai through video conference. RBI Governor Shri Shaktikanta Das, chaired the meeting. In the meeting, topics of the major impact on global and domestic economy as well as financial financial stability were discussed. The following…

“Worst is behind us, though the recovery path remains uncertain,” says Financial Stability Report

On Monday (11.01.2021), the Financial Stability and Development Council in its report bi-annual report said that Indian banks may see bad loans double despite signs of an improvement in the economic impact of the COVID-19 pandemic. The council is an umbrella group of regulators and releases the FSR report twice yearly to give a detailed…

RBI tells banks to put in place a risk-based internal audit (RBIA) system

RBI on Friday (08.01.2021) said that all commercial banks (including small finance banks, payments bank, Local area banks) are required to put in place a risk-based internal audit (RBIA) system as part of their internal control framework that relies on a well-defined policy for internal audit, functional independence with sufficient standing and authority within the…

From April 1, entities to quote LEI for all payment transactions of above 50 crores

The Legal Entity Identifier (LEI) is a 20-digit number used worldwide that will uniquely identify every legal entity or structure to a financial transaction. Pursuant to the Global Financial Crisis, the Legal Entity Identifier (LEI) code is conceived at the initiative of ‘Group of 20, financial stability Board’ for the purpose of better risk management.…