Lok Sabha passes 72 changes to the Companies Act to decriminalize certain offenses
The Lok Sabha on Saturday (September 19, 2020) passed the Companies (Amendment) Act, 2020 bill that seeks 72 changes to decriminalise certain offences under the Companies Act, 2013, in case of defaults but not involving frauds. “There are 48 sections we have amended to decriminalize them and 17 sections have been amended to improve the…
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RBI asks full automation of Income Recognition, Asset Classification and Provisioning processes in banks
Reserve Bank of India today asked all the banks that they should ensure that the asset classification status is updated as part of day end process. Banks should also be able to generate classification status report at any given point of time with actual date of classification of assets as NPAs/NPIs. In any exceptional circumstance…
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RBI marks rules for appointment of chief compliance officers (CCO) of banks and and their role functions
Today, RBI in its notification said that an independent compliance function is required to be headed by a designated Chief Compliance Officer (CCO) of banks, selected through a suitable process with an appropriate ‘fit and proper’ evaluation/selection criteria to manage compliance risk effectively.The Central Bank also directed all the banks to lay down a board-approved…
Read article The K.V.Kamath committee constituted by RBI names 26 sectors for restructuring: COVID 19 related stress
Based on the report of the Expert Committee (K.V.Kamath Committee) on Resolution Framework for Covid-19 related Stress the Reserve Bank of India (RBI) on Monday announced the financial parameters for the resolution plans under the scheme. The Committee has recommended financial parameters that, inter alia, include aspects related to leverage, liquidity, and debt serviceability. The…
Read article Revised LFAR format with audit scope on areas of credit risk, market risk, operational risk, capital adequacy among others
RBI on Saturday announced the revised long format audit report (LFAR) norms with the scope of the mandate of an audit covering areas of ‘Credit risk’, ‘market risk’, assurance functions and operational risk areas’, ‘capital adequacy’ and ‘going concern and liquidity risk assessment’, among others. This may also involve commenting on various risks to which…
SLR holdings limit in HTM category changed effective September 1:RBI
The Statutory Liquidity Ratio (SLR) is the liquid reserve to be maintained by the commercial banks at the rate fixed by RBI. At present, banks are permitted to exceed the limit of 25 per cent of the total investments under Held to Maturity (HTM) category, provided the excess comprises only of SLR securities and total…
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