The threshold limit for Small Business Customers increased to align with the Basel III framework: RBI

In order to protect depositors from the risk of a bank becoming insolvent, the banking regulator has prescribed banks and other authorised financial institutions to fund themselves with a minimum amount of capital (CAR) in terms of Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure…

Additional Tier1 capital: Eligible limit for Foreign Currency/Rupee denominated Bonds overseas

RBI on Monday clarified on criteria for the Inclusion of Perpetual Debt Instruments (PDI) in Additional Tier 1 Capital under Basel –III capital regulations. The issue was examined by the regulator as ‘several banks have approached us to clarify the maximum amount of capital funds that can be raised overseas’ the circular said. The Central…

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…

DFS advises banks to invoke personal guarantees and initiate IBC proceedings against the guarantors whenever possible

According to the sources with direct knowledge of the matter, the Department of Financial Services (DFS) has written a letter to Chairmen and heads of the banks on August 26, asking them to consider setting up of an IT system to collate such data, The IBC code amendment 2019 allows creditor to permits file insolvency…

Review/renewal of credit facilities should be brought under the scope of concurrent/internal audit/internal control mechanism: RBI

On Risk Management System in Banks, Scheduled Commercial Banks (SCBs) and Urban Co-operative Banks (UCBs) are required to put in place a board-approved credit policy, which, among other things, should prescribe the periodicity and methodology of review/renewal of credit facilities. As per RBI guidelines, regular and ad-hoc credit limits need to be reviewed/regularised not later…