RBI revises its liquidity management framework: LTRO introduced in place of 14 days fixed term repo

As announced in the Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system to rationalise interest rates in line with the policy actions. Instruments of liquidity management will include “fixed and variable rate…

DICGC increase the insurance coverage for depositors in all insured banks to ₹ 5 lakh

Pursuant to an announcement made by the Finance Minister Mrs.Nirmala Sitharaman in the Lokasabha while placing budget for the year 2020-21, the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned subsidiary of the Reserve Bank of India, has raised the limit of insurance cover for depositors in insured banks from the present level of…

Permissible activities of IFSC Banking Units (IBUs)

The Reserve Bank of India on Tuesday (21/01/2020) issued directions relating to IFSC Banking Units (IBUs)  governed under  ‘Currency Futures in International Financial Services Centre (Reserve Bank) Directions, 2020’ which shall come into force with effect from the date of its publication. IFSC is an abbreviation for International Financial Services Centres and IFSC Banking Units…

When a bank guarantee favouring Government and others actually discharges the issuer from liabilities?

Inasmuch as, the legal provisions governing Contract of Guarantee, the guarantees furnished by the banks in favour of Government Departments in the name of the President of India, has validity period of 30 years as per limitation act 1963.In the light of above section of limitation act, many readers are asking the questions whether the…

RBI releases document for National Financial Inclusion Strategies (NFIS)

Reserve Bank of India under the aegis of Financial Inclusion Advisory Committee (FIAC) initiated the process of formulation of National Strategy for Financial Inclusion (NSFI) for the period 2019-2024 and formally released the document on January 10, 2020. The National Strategy for Financial Inclusion (NSFI) report on Friday sets forth the vision and key objectives…

RBI extends e-mandate facility on cards to UPI as well

On Friday (10.01.2020), RBI notified that the instructions on the processing of e-mandate on cards for recurring transactions to cover Unified Payments Interface (UPI) transactions as well. During August 2019, RBI permitted processing of e-mandate on Credit/debit cards / Prepaid Payment Instruments (PPIs)/wallets for recurring transactions (merchant payments), with Additional Factor of Authentication (AFA) during…