September 20, 2013

Important Fact and news of RBI 2013

1.RBI has launched a website explaining ways to detect counterfeit notes with a tagline 'Pehchano Paise Ki Boli, Kyunki Paisa Bolta Hai'.

2.R.B.I. directed Banks to follow Clean Note Policy.

3.RBI started Plastic Money Project on Trial Basis in 5 cities of India with the denomination of 10 rupees and will continue with other small denominations depending upon the success of these notes.

4.The Union Government and RBI on 12 March 2013 decided to introduce one billion pieces of 10 Rupees bank notes made of plastic on a field trial basis in five cities of Kochi, Mysore, Jaipur, Bhubhaneswar and Shimla.

5.RBI guide lines for the clearance of all the cheques is 2 days.

6.RBI hiked the investment limit in government securities by FIIs and long-term investors $25 billion from $20 billion and in corporate bonds $50 billion from $45 billion.

7.Under the 'Basic Savings Bank Deposit Account (BSBDA) scheme, any individual, including poor or those from weaker section of the society, can open zero balance account in any bank (including foreign banks).

8.RBI permitted the premature encashment of 8% savings (Taxable) Bonds for individual investors who are 60 years and above in age.

9.RBI issued norms for currency swap window for fresh foreign currency non-resident bank- FCNR(B) deposits mobilized for a minimum tenor of 3 years.

10.RBI allowed the Non-Resident Investors including NRIs to buy Shares under FDI Scheme. Till now, the FIIs (Foreign Institutional Investor), QFIs (Qualified Foreign Investors) and NRIs were eligible to invest and acquire the shares on the recognized stock exchanges of India in compliance with the FEMA (Foreign Exchange Management Act) regulations. But the NRIs were not allowed to acquire shares on exchange (bourses) under the FDI Scheme.

11.The RBI said, min paid-up equity of 25 % should be held directly by the lender. Also, repayment of the principal will commence only after completion of minimum average maturity of 7 years and no prepayment will be allowed before maturity.

12.RBI opens special dollar window for 3 oil marketing firms: the central bank has activated the forex swap window, whereby it will undertake sell/buy of dollar-rupee forex swaps for a fixed period with Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum through a designated bank.

13.The RBI imposed restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs and mutual funds to curb demands for gold. Also banks were asked to ensure that the amount of loan to any customer against gold ornaments, gold Jewellery and gold coins (weighing up to 50 grams) should be within the board approved limit.
14.UAE Exchange, one of the largest foreign exchange firms in the United Arab Emirates, has applied to RBI for a banking license in India.

15.The RBI has increased banks' cost of borrowing short term money through the Marginal Standing Facility (MSF) rate and Bank Rate each by 200 basis points (2 per cent) to 10.25 per cent. The RBI has capped the amount banks can borrow from overnight markets to Rs. 75,000 crore.

16.The Reserve Bank opened a special borrowing window of Rs 25,000 crore to help the crisis-ridden mutual funds tide over liquidity problems.

17.Aditya Birla Group chairman Kumar Mangalam Birla has resigned from RBI board to avoid any conflict of interest as one of his group firm is in the race for a new banking licence.

18.In view of a series of chit fund frauds, RBI has decided to set up a separate forum for coordination and sharing information to rein in such investment schemes.

19.Reserve Bank will examine financials of 34,754 non-banking finance companies (NBFCs) to ascertain their eligibility. "The main objective is to determine whether among these companies there are NBFCs that ought to have registered with the RBI for carrying on their NBFI (non-banking financial institution) activities,".

20.The RBI announced its decision to buy long-term government bonds worth Rs 80 billion (nearly $1.3bn) to pump more liquidity into the country's banking system.

21.Rajan announced an external committee, under the chairmanship of former Governor Bimal Jalan, to screen applicants for new bank licences, from January next year.

22.Karur Vysya Bank wins best banker award.

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