Statutory Boost

The Reserve Bank of India vide its  Notification dated 4th August 2021 has issued guidelines for implementation of its earlier circular on opening of current accounts by banks. As per the new guidelines, RBI has given banks time until 31st October 2021 to implement the new rules on current accounts issued in 2020 . The regulator had previously set a deadline of 31 July. Banks shall put in place a monitoring mechanism, both at head office and regional/zonal office levels to monitor non-disruptive implementation of the circular and to ensure that customers are not put to undue inconvenience during the implementation process. The RBI has reiterated that, in case of borrowers who have not availed of CC/OD facility from any bank , there is no restriction on opening of current accounts by any bank if exposure of the banking system to such borrowers is less than ₹ 5 crore and In case of borrowers who have not availed of CC/OD facility from any bank and the exposure of the banking system ...

Reserve Bank of India vide Circular No. RBI/2021-22/72 dated 23rd July,2021 , has amended the Master Circular on Loans and Advances – Statutory and Other Restrictions dated 1st July, 2015 . It has increased the threshold limit f or personal loans granted to any director of other bank from ₹ 25 Lakhs to ₹ 5 crores . I t has also increased the threshold limit to ₹ 5 crores for personal loans given to: any relative other than spouse and minor / dependent children of their own Chairman/Managing Directors or other Directors; any relative other than spouse and minor / dependent children of the Chairman/Managing Director or other directors of other banks; any firm in which any of the relatives other than spouse and minor / dependent children as mentioned in (1) & (2) above is interested as a partner or guarantor; and any company in which any of the relatives other than spouse and minor / dependent children is interested as a major shareholder or as a director or as a guarantor or is in co...

  RBI vide its  notification dt. 08.04.2021  has enhanced the limit of maximum balance per customer at the the end of the day to ₹ 2 Lakhs with immediate effect i.e. from 8th April, 2021. Earlier, this limit was ₹ 1 Lakh as per  Guidelines for Licensing of Payments Banks’ (Licensing Guidelines) dated November 27, 2014,   As per the said notification, the above limit has been enhanced after taking into c onsideration the progress made by PBs in furthering financial inclusion and with the objective of giving more flexibility to the PBs. Feel free to contact in case of any query or consultation.          +91-7417634371

  The LFAR which applies to statutory central auditors (SCA) and branch auditors of banks has been updated keeping in view the large scale changes in the size, complexities, business model, and risks in the banking operations, the RBI said.   “The mandate and scope of the audit will broadly be as per given format and if the SCA feels the need of any material additions, etc., this may be done by giving specific justification by the SCA and with the prior intimation of the bank’s Audit Committee of Board (ACB)”. SCA may resort to need-based limited transaction testing as hitherto.     In deciding whether a qualification in the main report is necessary, the auditors should use their judgment based on the available pieces of evidence/facts and circumstances of each case, it said. The revised long format audit report (LFAR) norms had been announced with the scope of the mandate of an audit covering areas of ‘Credit risk’, ‘market risk’, assurance functions and oper...

Reduction in repo rate by 40 bps – from 4.4% to 4%. Term Loan Moratorium extended by another 3 months till 31 st August, 2020 . A facility of Rs. 15,000 crores of credit for 90 days for US dollar swap facility will be provided to EXIM Bank . This will have a rollover facility to up to one year.  Another 90 days extension for the 90-day term loan facilities to SIDBI . This will provide additional liquidity support to the MSME sector. Maximum permissible period of pre and post shipment of credits increased from 1 year to 15 months. Lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021. Group exposure limit of banks will be increased from 25% to 30%. In order to manage importer's operative cycle, outward remittances against normal imports into India, reduced to 6 months from 12 months. Voluntary retention route for FPIs Voluntary retention route for FPIs announced Extension of 3 months 75% utilisation of inve...