RBI releases ‘Framework for facilitating small value digital payments in offline mode’

To push digital transactions in rural and semi-urban areas, the Reserve Bank of India (RBI) on Monday issued a framework allowing offline payments up to Rs.200 per transaction, subject to an overall limit of Rs 2,000 until the balance in the account is replenished. Balance replenishment can only occur in an online mode. The new…

RBI permits Banks for capital infusion/ transfers to the overseas centers without its prior approval

All Scheduled Commercial Banks other than foreign banks, Small Finance Banks, Payment Banks, and Regional Rural Banks incorporated in India who have met regulatory capital requirement (including regulatory buffer) are permitted to infuse capital in overseas branches and subsidiaries and retention/ repatriation/ transfer of profits in these centres by banks incorporated in India. Banks that…

Transaction Limit in UPI enhanced to Rs 5 lakh for specified categories.

In the Statement on Developmental and Regulatory Policies on December 8, 2021, the Reserve Bank of India announced an increase in UPI Transaction Limit for Specified Categories.The statement said that ‘Reserve Bank has been making efforts to facilitate greater participation of retail customers in financial markets, e.g. investment in the G-secs segment through the recent…

RBI cautions against Co-operative societies using the word “Bank” in their name

The Reserve Bank of India has noted that some cooperative societies are using the word ‘bank’ in their names, in contravention of the Banking Regulation Act. Some cooperative societies are even accepting deposits from non-members/nominal members/associate members without any licensing or approval from the central bank, which is tantamount to conducting banking business in violation…

Salient features of Integrated Ombudsman Scheme, 2021

The integrated Ombudsman Scheme 2021 of RBI was launched today in virtual mode by Hon’ble Prime Minister Shri.Narendra Modi. The integrated Ombudsman Scheme, 2021 emphasizes strengthening the grievance redress mechanism for consumers of various services provided by the RBI regulated entities. The existing ombudsman schemes like the Banking Ombudsman Scheme, 2006; the Ombudsman Scheme for…

FCNR (B) Accounts interest rates on deposits during LIBOR transition: RBI advises banks to use ARR

With the expectation that the publication of the London Interbank Offered Rate (LIBOR) as a benchmark rate will cease by the end of 2021, RBI permitted banks to offer interest rates on FCNR (B) deposits using widely accepted ‘Overnight Alternative Reference Rate (ARR)* for the respective currency’ with upward revision in the interest rates ceiling…