Almost resigned from RBI on differences with Chidambaram: Ex-Governor YV Reddy

  As the key figure in the balance of power between the government and the Reserve Bank of India, former RBI Governor Y.V. Reddy once contemplated resignation, and had to even offer an unconditional apology to the minister, his autobiography reveals. In ‘Advice and Dissent: My Life in Public Service’, being released on Tuesday, Reddy, who was RBI Governor between September 2003 and September 2008, describes his differences of opinion with then Finance Minister P. Chidambaram. These led him to also think of putting in his papers. The issue concerned opening the banking system to foreign ownership, which came to a head with Chidambaram in 2008. Reddy narrated his meeting where the Finance Minister told him: “Governor, this is a national commitment made to global financial community. How do we

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RBI defies Supreme Court order, refuses to disclose list of loan defaulters

  The Reserve Bank of India (RBI) has refused to make public the list of loan defaulters with public sector banks despite an order of the Supreme Court in 2015 to make this information public. The case relates to an RTI application filed by activist Subhash Agrawal who had sought to know the list of people who had defaulted in the loan of Rs one crore and above. According to the government, gross non-performing assets (NPA) of the public sector banks stood at Rs 6.06 lakh crore as on December 31, 2016. RBI had denied information citing clauses of economic interests of the state, the commercial confidence and information held in fiduciary capacity. It had also cited the provisions of Section 45-E of the RBI Act, 1934 which prohibits disclosure

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Bad loans crisis: RBI to expand oversight committee, rating agencies role

  Staying on course to resolve the bad loan problem plaguing the banking sector, the Reserve Bank of India (RBI) outlined the further steps it plans to take, such as expanding the oversight committee (OC) and its mandate, modifying existing debt recast rules, and engaging rating agencies for timely action. The central bank will reconstitute the OC and expand the panel to include more members. The existing OC, which has two members, was constituted by the Indian Banks’ Association. The RBI will now reconstitute the OC under its aegis and the two current members will continue in the revamped panel. The larger OC could then set up benches to deal with the volume of cases referred. The RBI will also expand the scope of cases to be referred to the OC beyond those under S4A (Scheme for Sustainable

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RBI plan to implement Banking Regulation (Amendment) Ordinance, 2017

  Reserve Bank of India Outlines the action plan to implement the Banking Regulation (Amendment) Ordinance, 2017 Press Release: 2016-2017/3138 Date : May 22, 2017 In a Release today, the Reserve Bank of India outlined the steps taken and those on the anvil post the promulgation of the Banking Regulation (Amendment) Ordinance, 2017. 2. The amendments to the BR Act 1949, introduced through the Ordinance, and the notification issued thereafter by the Central Government empower RBI to issue directions to any banking company or banking companies to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). It also enables the Reserve Bank to issue directions with respect to stressed assets and specify one or more authorities or committees with

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Have new NPA norms for Wholesale Long Term Finance Bank: ASSOCHAM to RBI

  Friday, May 19, 2017 ASSOCHAM has approached the RBI with a plea that the provisioning criteria for the non-performing assets (NPAs) in the case of proposed Wholesale Long- Term Finance (WLTF) banks should be based on stress tests of each of the funded projects, unlike the present standard provisioning norms due to a different nature of the long term, big ticket industrial or infrastructure projects to be covered by WLTF lenders. “In the long gestation projects like infrastructure there may be various reasons for which the project may get delayed– governmental policy changes, court orders, land or environmental issues… Monitoring and assessment of such projects would require a structured working; Therefore, provisioning must be based on a stress test for the specific project”, the ASSOCHAM said, submitting its feedback

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RBI goes for security upgrade for note storage, transportation

  The Reserve Bank of India (RBI) has initiated an exercise of upgrading measures for secured storage and movement of currency at more than 4,000 chests across the country in view of the heightened threat perception. In recent times, several instances of looting cash vans and banks, as well as ATMs dispensing fake currency notes have been reported from different parts of the country. The RBI has constituted a high-level committee on currency storage and movement (HLCCSM) to review the existing security arrangements relating to storage, movement and processing of currency. The cental bank is now seeking global expertise to assist the Committee in matters relating to security aspects, movement and storage of currency, automation of currency processing and handling. Expression of interest from experts has been invited for “identifying international best practices in movement, modes of transport, storage systems

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RBI allows deposit of demonetised notes confiscated before 30.12.2016

  MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 12th May, 2017 G.S.R. 460(E).— In exercise of the powers conferred by sub-section (1) of section 11, read with clause (c) of the proviso to section 5, of the Specified Bank Notes (Cessation of Liabilities) Act, 2017 (2 of 2017), the Central Government hereby makes the following rules, namely:— 1. Short title and commencement.— (1) These rules may be called the Specified Bank Notes(Deposit of Confiscated Notes) Rules, 2017. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Deposit of confiscated Specified Bank Notes.— Where specified bank notes have been confiscated or seized by a law enforcement agencies or produced before a court on or before the 30th day of December 2016, such specified bank notes

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RBI Circular on Timelines for Stressed Assets Resolution

  Reserve Bank of India RBI/2016-17/299 DBR.BP.BC.No.67/21.04.048/2016-17 May 5, 2017 The Chairman and Managing Director/Chief Executive Officer All Scheduled Commercial Banks (Excluding Local Area Banks and Regional Rural Banks) Madam/Dear Sir, Timelines for Stressed Assets Resolution Please refer to the circular DBOD.BP.BC.No.97/21.04.132/2013-14 dated February 26, 2014 on “Framework for Revitalising Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP)” and subsequent circulars/amendments in this regard. 2. The Framework aims at early identification of stressed assets and timely implementation of a corrective action plan (CAP) to preserve the economic value of stressed assets. In order to ensure that the CAP is finalised and formulated in an expeditious manner, the Framework specifies various timelines within which lenders have to decide and implement the CAP.

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RBI can direct banks to initiate insolvency resolution process

  REGD. NO. D. L.-33004/99 THE GAZETTE OF INDIA EXTRAORDINARY PART II—Section 3—Sub-section (ii) PUBLISHED BY AUTHORITY NEW DELHI, FRIDAY, MAY 5, 2017/VAISAKHA 15, 1939 MINISTRY OF FINANCE (Department of Financial Services) ORDER New Delhi, the 5th May, 2017 S.O. 1435(E).-In exercise of the powers conferred by Section 35AA of the Banking Regulation Act, 1949 (10 of 1949), the Central Government hereby authorises the Reserve Bank of India to issue such directions to any banking company or banking companies which may be considered necessary to initiate insolvency resolution process in respect of a default, under the provisions of the Insolvency and Bankruptcy Code, 2016.New Delhi, the 5th May, 2017 [F. No. 7/32/2017 –BOA (pt.)] MOHAMMAD MUSTAFA, Jt. Secy.

Now RBI website at your fingertips

  Date : Mar 10, 2017- Now RBI website at your fingertips The Reserve Bank of India today formally launched a mobile application (app) version of the Reserve Bank of India’s website (www.rbi.org.in). The app is available on Android as well as iOS platforms and can be downloaded from the Play Store/App Store in one’s Android phone/iPhone, respectively, using the keyword “Reserve Bank of India”. To start with, the most accessed sections of the website : press releases, IFSC/ MICR codes, Bank Holidays and Current Rates including Policy rates and reference rate of four major currencies – have been made available on the app. There is a dynamic window on the top of the landing page of the app which alternatingly displays three public awareness messages – the new design currency notes

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