RBI releases framework for the grievance redress mechanism in banks
The Reserve Bank of India (RBI) as announced in the ‘Statement on Developmental and Regulatory Policies’ issued as part of the Monetary Policy statement dated December 4, 2020, today put in place a comprehensive framework to improve the efficacy of the grievance redress mechanism of banks. The framework comprising of i) enhanced disclosures on complaints…
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New Capital Adequacy Framework (NCAF) on capital regulation – eligibility of CRISIL Ratings Limited
Today (January 27, 2021), RBI told the banks to use the ratings of the CRISIL Ratings Limited for the purpose of risk weighting their claims for New Capital Adequacy Framework (NCAF) on Basel III capital regulation purposes. The above decision taken by RBI is owing to rating business of CRISIL Limited has since been transferred…
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What is Unified Payments Interface (UPI)?
Unified Payments Interface (UPI) is a mobile based, 365x24x7 ‘fast payment’ system. Through UPI, users can send and receive money instantly by means of a Virtual Payment Address (VPA) set by the users themselves. The unique feature of VPA based transaction is the secure aspect of UPI architecture as it removes the need for sharing…
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What is e-Money?
In India, e-Money is actually the Prepaid instruments (PPIs) issued in the form of Wallets and Cards. Banks, financial institutions or specific entities can issue e-money after obtaining necessary approval / authorisation from RBI under the PSS Act. E-money is electronically stored electronically in a domestic currency backed by the regulator. The Payment and Settlement…
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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…
Recovery of excess payment of pension: RBI withdraws existing circulars
RBI on Thursday (January 21, 2021) declared that the existing circulars related to recovery of excess pension paid by agency banks stands withdrawn with effect from the date of its circular dated January 21, 2021. The above decision was taken by the Central Bank in view of the recovery of excess /wrong pension payments from…
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