Retail Banking

[Link]. RBI Notifications

1 Periodic Updation of KYC – Restrictions on Account Operations for Non-compliance
2 Restriction on storage of actual card data [i.e. Card-on-File (CoF)]
3 Government Agency Business Arrangement – Appointment of Scheduled Private Sector Banks as
Agency Banks of Reserve Bank of India (RBI)
4 Introduction of Legal Entity Identifier for Cross-border Transactions
5 General permission for infusion of capital in overseas branches and subsidiaries and retention/
repatriation/ transfer of profits in these centres by banks incorporated in India
6 Appointment of Internal Ombudsman by Non-Banking Financial Companies
7 Integrated Ombudsman Scheme, 2021
8 Foreign Currency (Non-resident) Accounts (Banks) Scheme [FCNR(B)] - Master Direction on Interest
Rate on Deposits
9 Master Circular- Guarantees, Co-Acceptances & Letters of Credit - UCBs
10 Opening of Current Accounts by Banks - Need for Discipline
11 Gold Monetization Scheme (GMS), 2015
12 Master Direction – Prudential Norms on Capital Adequacy for Local Area Banks (Directions), 2021
13 Sovereign Gold Bond Scheme of the Government of India (GoI) - Procedural Guidelines -
Consolidated
14 Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021
15 Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services
16 Master Directions on Prepaid Payment Instruments (PPIs)
17 Enhancements to Indo-Nepal Remittance Facility Scheme
18 Review of incentive and other measures to enhance distribution of coins
19 Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial
Banks (Directions), 2021
20 Tokenisation – Card Transactions : Extending the Scope of Permitted Devices
21 Safe Deposit Locker/Safe Custody Article Facility provided by the banks - Revised Instructions
22 Monitoring of Availability of Cash in ATMs
23 Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) –
Marginal Standing Facility (MSF) - Extension of Relaxation
24 Guidelines for Implementation of the circular on Opening of Current Accounts by Banks
25 Framework for Outsourcing of Payment and Settlement-related Activities by Payment System
Operators
26 Rating of Deposits of HFCs – Approved Credit Rating Agencies and Minimum Investment Grade
Credit Rating
27 Access for Non-banks to Centralised Payment Systems
28 Loans and Advances – Regulatory Restrictions
29 Cassette - Swaps in ATMs
30 New Definition of Micro, Small and Medium Enterprises - Addition of Retail and Wholesale Trade
31 Review of Instructions on Interest on overdue domestic deposits

Periodic Updation of KYC – Restrictions on Account Operations for Non-compliance

RBI/2021-22/144
[Link].74/14.01.001/2021-22

December 30, 2021

The Chairpersons/ CEOs of all the Regulated Entities

Madam/Dear Sir,

Periodic Updation of KYC – Restrictions on Account Operations for Non-compliance

Please refer to our circular [Link] 13/14.01.001/2021-22 dated May 5, 2021, on the
captioned subject.

2. In view of the prevalent uncertainty due to new variant of Covid-19, the relaxation provided in the
aforementioned circular is hereby extended till March 31, 2022.

Yours faithfully,

(Prakash Baliarsingh)
Chief General Manager

Reference Link: [Link]

Restriction on storage of actual card data [i.e. Card-on-File (CoF)]

RBI/2021-2022/142
[Link].S-1211/02-14-003/2021-22

December 23, 2021

All Payment System Providers and Payment System Participants

Madam / Dear Sir,

Restriction on storage of actual card data [i.e. Card-on-File (CoF)]

In terms of our circular [Link].1810/02.14.008/2019-20 dated March 17, 2020 on

“Guidelines on Regulation of Payment Aggregators and Payment Gateways”, the authorised non-
bank payment aggregators and merchants on-boarded by them were prohibited from storing card
data (CoF) from June 30, 2021. At the request of industry stakeholders, this timeline was extended
to December 31, 2021 vide circular [Link].S33/02-14-008/2020-2021 dated March 31,
2021. Further, regulations on CoF Tokenisation (CoFT) were issued vide circular [Link].S-
516/02-14-003/2021-22 dated September 07, 2021 on “Tokenisation – Card Transactions: Permitting
Card-on-File Tokenisation (CoFT) Services”.

2. In light of various representations received in this regard, we advise as under:

the timeline for storing of CoF data is extended by six months, i.e., till June 30, 2022; post this, such
data shall be purged; and

in addition to tokenisation, industry stakeholders may devise alternate mechanism(s) to handle any
use case (including recurring e-mandates, EMI option, etc.) or post-transaction activity (including
chargeback handling, dispute resolution, reward / loyalty programme, etc.) that currently involves /
requires storage of CoF data by entities other than card issuers and card networks.

3. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement
Systems Act, 2007 (Act 51 of 2007).

Yours faithfully,

(Sudhanshu Prasad)
General Manager (Officer in Charge)

Reference link: [Link]

Government Agency Business Arrangement – Appointment of Scheduled Private Sector Banks
as Agency Banks of Reserve Bank of India (RBI)

RBI/2021-22/140
[Link].S1112/42-01-033/2021-2022

December 15, 2021

All Scheduled Payments Banks and Scheduled Small Finance Banks in India

Dear Sir / Madam

Government Agency Business Arrangement – Appointment of Scheduled Private Sector Banks as

Agency Banks of Reserve Bank of India (RBI)

Please refer to RBI Circular RBI/2021-22/36; [Link].S77/42.01.033/2021-22 dated May

10, 2021 on the captioned subject.

2. It has now been decided in consultation with the Department of Financial Services, Ministry of
Finance, Government of India, to make scheduled payments banks and scheduled small finance
banks eligible to conduct Government agency business. Any payment bank or small finance bank
that intends to undertake Government agency business may be appointed as an agent of RBI upon
execution of an agreement with RBI, provided that the overarching regulatory framework prescribed
for these banks is complied with.

3. All the instructions/conditions prescribed in our aforesaid Circular dated May 10, 2021 will
henceforth be applicable to the scheduled payments banks and scheduled small finance banks also.

Yours faithfully

(R. Kamalakannan)
Chief General Manager

Reference Link: [Link]

Introduction of Legal Entity Identifier for Cross-border Transactions

RBI/2021-22/137
A.P. (DIR Series) Circular No. 20

December 10, 2021

To

All Category-I Authorised Dealer Banks

Madam / Sir,

Introduction of Legal Entity Identifier for Cross-border Transactions

The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial
transactions worldwide to improve the quality and accuracy of financial data systems. LEI has been
introduced by the Reserve Bank in a phased manner for participants in the over the counter (OTC)
derivative, non-derivative markets, large corporate borrowers and large value transactions in
centralised payment systems.

2. In order to further harness the benefits of LEI, it has been decided that AD Category I banks, with
effect from October 1, 2022, shall obtain the LEI number from the resident entities (non-individuals)
undertaking capital or current account transactions of ₹50 crore and above (per transaction) under
FEMA, 1999. As regards non-resident counterparts/ overseas entities, in case of non-availability of
LEI information, AD Category I banks may process the transactions to avoid disruptions. Further, AD
Category I banks may encourage concerned entities to voluntarily furnish LEI while undertaking
transactions even before October 1, 2022. Once an entity has obtained an LEI number, it must be
reported in all transactions of that entity, irrespective of transaction size.

3. AD Category-I banks shall have the required systems in place to capture the LEI information and
ensure that any LEI captured is validated against the global LEI database available on the website of
the Global Legal Entity Identifier Foundation (GLEIF).

4. AD banks may bring the contents of this circular to the notice of their constituents concerned and
advise entities who undertake large value transactions (₹50 crore and above) under FEMA, 1999 to
obtain LEI in time, if they do not already have one issued.

5. Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the GLEIF, the
body tasked to support the implementation and use of LEI. In India, LEI can be obtained from Legal
Entity Identifier India Ltd. (LEIL) ([Link] which is also recognised as an
issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007. The rules,
procedures and documentation requirements may be ascertained from LEIL.

6. The directions contained in this circular are being issued under sections 10(4) and 11(1) of the
Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to
permissions/approvals, if any, required under any other law.

Yours faithfully

Ajay Kumar Misra

Chief General Manager-in-Charge

Reference link: [Link]

General permission for infusion of capital in overseas branches and subsidiaries and
retention/ repatriation/ transfer of profits in these centres by banks incorporated in India

RBI/2021-22/136
[Link].72/21.06.201/2021-22

December 08, 2021

Dear Sir/ Madam,

General permission for infusion of capital in overseas branches and subsidiaries and retention/
repatriation/ transfer of profits in these centres by banks incorporated in India

Please refer to para 1 of the ‘Statement on Developmental and Regulatory Policies’ dated December
8, 2021 on the above subject.

2. As per extant practice, banks incorporated in India seek prior RBI approval for

a. infusion of capital in their overseas branches and subsidiaries.

b. retention of profits in, and transfer or repatriation of profits from these overseas centres.

3. In order to provide greater operational flexibility, it has been decided that prior RBI approval for
above capital infusion/ transfers (including retention/ repatriation of profits), shall not be required
by banks which meet the regulatory capital requirements (including capital buffers 1). Instead, the
banks shall seek approval of their boards for the same.

4. While considering such proposals, banks shall analyse all relevant aspects including inter alia the
business plans, home and host country regulatory requirements and performance parameters of
their overseas centres. Banks shall also ensure compliance with all applicable home and host country
laws and regulations.

5. Banks which do not meet the minimum regulatory capital requirements as laid down in para 3
above, shall be required to seek prior approval of RBI as hitherto.

Reporting

6. Banks shall report all such instances of infusion of capital and/ or retention2/transfer/ repatriation
of profits in overseas branches and subsidiaries within 30 days of such action, to the Chief General
Manager-in-Charge, Department of Regulation, Central Office, Mumbai with a copy to Chief General
Manager-in-Charge, Department of Supervision, Central Office, Mumbai.

Applicability

7. This circular is applicable to all Scheduled Commercial Banks other than foreign banks, Small
Finance Banks, Payment Banks and Regional Rural Banks.

These instructions come into effect from the date of the circular.

Yours faithfully,

(Usha Janakiraman)
Chief General Manager

Reference link: [Link]

Appointment of Internal Ombudsman by Non-Banking Financial Companies

RBI/2021-2022/126
[Link].S874/13-01-008/2021-2022

November 15, 2021

The Chairman/Managing Director & CEO

a) NBFCs-D with 10 or more branches, and
b) NBFCs-ND with asset size of Rs 5,000 crore and above (excluding NBFCs given in para 3 of this
direction)

Madam/Dear Sir,

Appointment of Internal Ombudsman by Non-Banking Financial Companies

In exercise of the powers conferred by Section 45 (L) read with 45 (M) of the Reserve Bank of India
Act, 1934, Reserve Bank of India (RBI) being satisfied that it is in public interest and in the interest of
conduct of business relating to Non-Banking Financial Companies (NBFCs), directs NBFCs registered
with RBI under Section 45-IA of the RBI Act, 1934, fulfilling the criteria given below, to appoint an
Internal Ombudsman (IO).

2. NBFCs fulfilling the following criteria as on date would be required to appoint the IO:

a) Deposit-taking NBFCs (NBFCs-D) with 10 or more branches.

b) Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above and having
public customer interface.

3. The following types of NBFCs will be excluded from the applicability of this direction:

a. Stand-alone Primary Dealer;

b. Non-Banking Financial Company - Infrastructure Finance Company (NBFC-IFC);

c. Core Investment Company (CIC);

d. Infrastructure Debt Fund - Non-Banking Financial Company (IDF-NBFC);

e. Non-Banking Financial Company – Account Aggregator (NBFC-AA);

f. NBFC under Corporate Insolvency Resolution Process;

g. NBFC in liquidation;

h. NBFC having only captive customers.

The circular also covers aspects on Appointment of the IO; Tenure of the IO; Secretariat and Cost of
the IO; Roles and Responsibilities of IO; Board Oversight; Supervisory Oversight; Reporting to RBI etc.

These can be referred to in the link below:

Reference link: [Link]

Reserve Bank - Integrated Ombudsman Scheme, 2021

DEPUTY GOVERNOR

Reserve Bank of India

Mumbai

Reserve Bank - Integrated Ombudsman Scheme, 2021

NOTIFICATION

Ref. CEPD. PRD. No.S873/13.01.001/2021-22

November 12, 2021

In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (10 of 1949),
Section 45L of the Reserve Bank of India Act, 1934 (2 of 1934) and Section 18 of the Payment and
Settlement Systems Act, 2007 (51 of 2007), and in supersession of its Notifications Ref. (i) CEPD. PRS.
No. 6317/13.01.01/2016-17 dated June 16, 2017; (ii) CEPD. PRS. No. 3590/13.01.004/2017-18 dated
February 23, 2018; and (iii) CEPD. PRS. No. 3370/13.01.010/2018-19 dated January 31, 2019, the
Reserve Bank of India, being satisfied that it is in public interest to do so, and to make the alternate
dispute redress mechanism simpler and more responsive to the customers of entities regulated by it,
hereby integrates the three Ombudsman schemes – (i) the Banking Ombudsman Scheme, 2006, as
amended up to July 01, 2017; (ii) the Ombudsman Scheme for Non-Banking Financial Companies,
2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019 into the Reserve Bank -
Integrated Ombudsman Scheme, 2021 (the Scheme).

2. The Scheme covers the following regulated entities:

i. all Commercial Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks
and Non-Scheduled Primary (Urban) Co-operative Banks with deposits size of Rupees 50
crore and above as on the date of the audited balance sheet of the previous financial year;

ii. all Non-Banking Financial Companies (excluding Housing Finance Companies) which (a) are
authorised to accept deposits; or (b) have customer interface, with an assets size of Rupees
100 crore and above as on the date of the audited balance sheet of the previous financial
year;

iii. all System Participants as defined under the Scheme.

3. The regulated entities shall comply with the Scheme from the date of its implementation.

4. The format for filing a complaint under the Scheme is annexed.

5. The Scheme shall come into force from November 12, 2021.

(M. K. Jain)

Reference link: [Link]

Foreign Currency (Non-resident) Accounts (Banks) Scheme [FCNR(B)] - Master Direction on
Interest Rate on Deposits

RBI/2021-2022/123
[Link] (SPE).[Link] 67/13.03.00/2021-22

November 11, 2021

All Scheduled Commercial Banks (including Regional Rural Banks)

All Small Finance Banks
All Local Area Banks
All Payment Banks
All Primary (Urban) Co-operative Banks/ DCCBs /State Cooperative Banks

Dear Sir / Madam,

Foreign Currency (Non-resident) Accounts (Banks) Scheme [FCNR(B)] - Master Direction on Interest
Rate on Deposits

Please refer to the instructions on the Foreign Currency (Non-resident) Accounts (Banks) Scheme
contained in Section 19 of the Master Direction - Reserve Bank of India (Interest Rate on Deposits)
Directions, 2016 dated March 03, 2016 and Section 18 of the Master Direction – Reserve Bank of
India (Co-operative Banks – Interest Rate on Deposits) Directions, 2016 dated May 12, 2016.

2. In view of the impending discontinuance of LIBOR as a benchmark rate, it has been decided to
permit banks to offer interest rates on FCNR (B) deposits using widely accepted ‘Overnight
Alternative Reference Rate (ARR) for the respective currency’ with upward revision in the interest
rates ceiling by 50 bps.

3. As a measure to handle the information asymmetry during the transition, FEDAI may publish the
ARR till such time the widely accepted benchmark is established. The relevant sections of the Master
Directions as amended are indicated in the Annex.

4. All other instructions in this regard shall remain unchanged.

Yours faithfully,

(Neeraj Nigam)
Chief General Manager-in-Charge
Encl: As above

Reference link: [Link]

Master Circular- Guarantees, Co-Acceptances & Letters of Credit – UCBs

RBI/2021-22/119
[Link].65/09.27.000/2021-22

November 02, 2021

The Managing Director/ Chief Executive Officers

All Primary (Urban) Co-operative Banks

Dear Sir/ Madam,

Master Circular- Guarantees, Co-Acceptances & Letters of Credit - UCBs

Please refer to our Master Circular DCBR. BPD (PCB) MC. No.8/09.27.000/2015-16 dated July 1,
2015 on the captioned subject (available at RBI website [Link] The enclosed Master
Circular consolidates and updates all the instructions / guidelines on the subject issued up to
November 1, 2021 as listed in the Annex.

Yours faithfully

(Manoranjan Mishra)
Chief General Manager

Reference link: [Link]

Opening of Current Accounts by Banks - Need for Discipline

RBI/2021-22/116
[Link].63/21.04.048/2021-22

October 29, 2021

All Scheduled Commercial Banks

All Payments Banks

Madam/Sir,

Opening of Current Accounts by Banks - Need for Discipline

Please refer to our circular [Link]/7/21.04.048/2020-21 dated August 6, 2020 on the

captioned subject and associated circulars thereon1.

2. On a review and taking into account feedback received from Indian Banks’ Association (IBA) and
other stakeholders, it has been decided that banks may open current accounts for borrowers who
have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system
as per the provisions below:

(i) For borrowers, where the exposure of the banking system is less than ₹5 crore, there is no
restriction on opening of current accounts or on provision of CC/OD facility by banks, subject to
obtaining an undertaking from such borrowers that they shall inform the bank(s), as and when the
credit facilities availed by them from the banking system reaches ₹5 crore or more.

(ii) In respect of borrowers where exposure of the banking system is ₹5 crore or more, such
borrower can maintain current accounts with any one of the banks with which it has CC/OD facility,
provided that the bank has at least 10 per cent of the exposure of the banking system to that
borrower.

Further details of the circular can be accessed in the below link

Reference link: [Link]

Gold Monetization Scheme (GMS), 2015

RBI/2021-22/115
[Link].62/23.67.001/2021-22

October 28, 2021

All Scheduled Commercial Banks

(excluding Regional Rural Banks)

Dear Sir/Madam

Gold Monetization Scheme (GMS), 2015

In exercise of the powers conferred on the Reserve Bank of India under Section 35A of the Banking
Regulation Act, 1949, the RBI makes the following amendments in the Reserve Bank of India (Gold
Monetization Scheme, 2015) Master Direction [Link].45/23.67.003/2015-16 dated October
22, 2015, with immediate effect.

2. A new sub-paragraph 2.2.2 (f) has been inserted to read as follows:

2.2.2 (f) Interest on premature closure of the deposit in case of death of depositor before and after
lock-in period

The amount payable to the depositor shall be calculated as a sum of (A) and (B), as indicated below:

(A) Actual market value of the gold deposit on the day of withdrawal.

(B) Interest payable on the value of the gold for the period of deposit at the applicable rate.

3. A new sub-paragraph 2.2.2 (g) has been inserted to read as follows:

2.2.2 (g) Interest on premature closure of the deposit due to default of loan taken against MLTGD
before and after lock-in period

The amount payable to the depositor shall be calculated as a sum of (A) and (B), as indicated below:

(A) Actual market value of the gold deposit on the day of withdrawal.

(B) Interest payable on the value of the gold for the period of deposit at the applicable rate.

4. The Reserve Bank of India Master Direction [Link].45/23.67.003/2015-16 dated October 22,
2015 on Gold Monetization Scheme, 2015 has been updated incorporating the above changes.

Yours faithfully

(Prakash Baliarsingh)
Chief General Manager

The interest rate applicable will be based on before the lock-in period or after the lock-in period and
the type of deposit. These have been detailed out in a tabulated manner in the circular which can be
referred to for more details in the link below.

Reference link: [Link]

Master Direction – Prudential Norms on Capital Adequacy for Local Area Banks (Directions),
2021

RBI/DOR/2021-22/87
[Link].61/21.01.002/2021-22

October 26, 2021

All Local Area Banks

Dear Sir / Madam,

Master Direction – Prudential Norms on Capital Adequacy for Local Area Banks (Directions), 2021

The Reserve Bank of India has, from time to time, issued several guidelines / instructions / directives
to Local Area Banks on Prudential Norms on Capital Adequacy.

2. To enable Local Area Banks to have current instructions at one place, a Master Direction,
incorporating all the existing guidelines / instructions / directives on the subject, has been prepared
for reference of the banks.

3. This Direction has been issued by RBI in exercise of its powers conferred under Section 35A of the
Banking Regulation Act 1949 and in exercise of all the powers enabling it in this behalf.

Yours faithfully,

(Usha Janakiraman)
Chief General Manager

Reference link: [Link]

Sovereign Gold Bond Scheme of the Government of India (GoI) - Procedural Guidelines –
Consolidated

RBI/2021-2022/114
[Link].1100/14.04.050/2021-22

October 22, 2021

All Scheduled Commercial Banks (Excluding RRBs)

Designated Post Offices
Stock Holding Corporation of India Ltd. (SHCIL)
BSE & NSE
Depositories
Clearing Corporation of India Limited

Dear Sir/Madam,

Sovereign Gold Bond Scheme of the Government of India (GoI) - Procedural Guidelines -
Consolidated

The Sovereign Gold Bond (SGB) Scheme was first launched by Government of India (GOI) on October
30, 2015. As the “Receiving Offices” (RO), are entrusted with the responsibility of performing certain
functions relating to receipt of applications and servicing of the bonds, RBI has also issued
operational guidelines from time to time and Procedural Guidelines vide circular
[Link].1569/14.04.050/2016-17 dated December 23, 2016 for guidance to the Receiving
Offices.

2. With a view to facilitate availability of all the current operative instructions on the above subject
at one place, it has been decided to issue consolidated procedural guidelines. The rules and
regulations applicable for servicing of these bonds have been updated with instructions issued till
date and are given in Annex I. The same will be updated suitably and simultaneously whenever there
is a change in the rules/regulations governing the operation of the Scheme.

3. This circular supersedes all operational/procedural guidelines issued till date. With the issuance of
these instructions, no separate procedural/operational instructions will be issued henceforth. All the
Receiving Offices shall be guided by these instructions while dealing with servicing of these bonds.

4. These Guidelines are issued in exercise of the powers conferred under Section 29(2) of the GS Act
2006, to the Receiving Offices, BSE/NSE and depositories.

Yours faithfully,

(Rajendra Kumar)
Chief General Manager

Encl: as above

Reference link: [Link]

Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021

RBI/DOR/2021-22/86
[Link].51/21.04.048/2021-22

September 24, 2021

All Commercial Banks (including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks/ District Central Co-operative
Banks
All All-India Financial Institutions
All Non-Banking Financial Companies (including Housing Finance Companies)

Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021

Please refer to the Draft Comprehensive Framework for Sale of Loan Exposures that was released
on June 8, 2020 for comments from various stakeholders.

2. Based on the examination of the comments received, the Reserve Bank has issued the Master
Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021, which are enclosed.
These directions have been issued in exercise of the powers conferred by the Sections 21 and 35A of
the Banking Regulation Act, 1949 read with Section 56 of the Banking Regulation Act, 1949; Chapter
IIIB of the Reserve Bank of India Act, 1934; and Sections 30A, 32 and 33 of the National Housing Bank
Act, 1987.

3. These directions come into immediate effect replacing the existing instructions on the matter of
sale / transfer of loan exposures. All lending institutions are advised to take necessary steps to
ensure compliance with these directions.

Yours faithfully,

(Manoranjan Mishra)
Chief General Manager

Reference link: [Link]

Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services

RBI/2021-22/96
[Link].S-516/02-14-003/2021-22

September 07, 2021

All Payment System Providers and Payment System Participants

Madam / Dear Sir,

Tokenisation – Card Transactions: Permitting Card-on-File Tokenisation (CoFT) Services

We invite reference to our circular [Link] No.1463/02.14.003/2018-19 dated January 8,

2019 on “Tokenisation – Card transactions”, permitting authorised card networks to offer card
tokenisation services subject to the conditions listed therein. Initially limited to mobile phones and
tablets, this facility was subsequently extended to laptops, desktops, wearables (wrist watches,
bands, etc.), Internet of Things (IoT) devices, etc., vide our circular [Link].S-469/02-14-
003/2021-22 dated August 25, 2021 on “Tokenisation – Card Transactions : Extending the Scope of
Permitted Devices”.

2. Reference is also invited to our circulars [Link].1810/02.14.008/2019-20 dated March

17, 2020 (as updated from time to time) and [Link].S33/02-14-008/2020-2021 dated
March 31, 2021 on “Guidelines on Regulation of Payment Aggregators and Payment Gateways”,
advising that neither the authorised Payment Aggregators (PAs) nor the merchants on-boarded by
them shall store customer card credentials [also known as Card-on-File (CoF)].

More enhancements to the CoF and clarity on interest has been listed in the circular. This can be
referred to in the below link.

Reference link: [Link]

Master Directions on Prepaid Payment Instruments (PPIs) (Updated as on November 12, 2021)

RBI/DPSS/2021-22/82
[Link].S-479/02.14.006/2021-22

August 27, 2021

(Updated as on November 12, 2021)

All Prepaid Payment Instrument Issuers (Banks and Non-banks) and System Participants

Madam / Dear Sir,

Master Directions on Prepaid Payment Instruments (PPIs)

This has reference to the Master Direction dated October 11, 2017 on Issuance and Operation of
Prepaid Payment Instruments (PPI-MD) and subsequent amendments made thereto. Keeping in view
the recent updates to PPI guidelines, it has been decided to issue the Master Directions afresh.

2. These Directions are issued under Section 18 read with Section 10(2) of the Payment and
Settlement Systems Act, 2007.

Yours faithfully,
(P. Vasudevan)
Chief General Manager

Reference link: [Link]

Enhancements to Indo-Nepal Remittance Facility Scheme

RBI/2021-22/94
[Link].S475/04.09.003/2021-22

August 27, 2021

The Chairman / Managing Director / Chief Executive Officer

of all banks participating in NEFT

Madam / Dear Sir,

Enhancements to Indo-Nepal Remittance Facility Scheme

The Indo-Nepal Remittance Facility Scheme (Scheme) was launched by the Reserve Bank of India in
May 2008 as an option for cross-border remittances from India to Nepal, with special focus on
requirements of migrant workers of Nepali origin working in India. The Scheme leverages the
National Electronic Funds Transfer (NEFT) ecosystem available in the country for origination of such
remittances and entails a ceiling of ₹50,000 per remittance with a maximum of 12 remittances in a
year. The beneficiary receives funds in Nepalese Rupees through credit to her / his bank account
maintained with the subsidiary of State Bank of India (SBI) in Nepal, i.e., Nepal SBI Bank Limited
(NSBL) or th q`1 rough an agency arrangement.

2. A review of the Scheme has since been made and to boost trade payments between the two
countries, as also to facilitate person-to-person remittances electronically to Nepal, the following
enhancements are announced –

i. Increase in the ceiling per transaction from ₹50,000 to ₹2 lakh.

ii. Removal of the cap of 12 remittances in a year per remitter.

iii. As hitherto, banks shall accept remittances by way of cash from walk-in customers or non-
customers. The ceiling of ₹50,000 per remittance with a maximum of 12 remittances in a
year shall, however, continue to apply for such remittances.

iv. The charges for transactions up to ₹50,000 shall continue as provided in circular DPSS (CO)
No.1381/04.09.003/2008-09 dated February 09, 2009. For transactions beyond ₹50,000, the
charges prescribed by SBI shall apply.

v. The banks shall put in place suitable velocity checks and other risk mitigation procedures.

3. The enhancements are also expected to facilitate payments relating to retirement, pension, etc.,
to our ex-servicemen who have settled / relocated in Nepal.

4. These directions are issued under Section 10 (2) read with Section 18 of Payment and Settlement
Systems Act, 2007 (Act 51 of 2007) and shall come into effect from October 01, 2021.

Yours faithfully,

(P Vasudevan)
Chief General Manager

Reference link: [Link]

Review of incentive and other measures to enhance distribution of coins

RBI/2021-22/93
DCM (CC) No.97527/03.41.01/2021-22

August 27, 2021

The Chairman / Managing Director &

Chief Executive Officer
(All Scheduled Commercial banks including RRBs)

Madam / Dear Sir,

Review of incentive and other measures to enhance distribution of coins

Please refer to our Master Direction DCM (CC) No.G-2/03.41.01/2021-22 dated April 01, 2021 on
“Currency Distribution & Exchange Scheme (CDES)” for bank branches including currency chests
which inter alia, provides for financial incentives of ₹25 per bag to banks for distribution of coins
over the counter.

2. Keeping in view the overall objectives of Clean Note policy and to ensure that all bank branches
provide better customer service to members of public with regard to exchange of notes and
distribution of coins, the afore-said Scheme has since been reviewed and it has now been decided to
revise the incentive being paid to the banks for distribution of coins with a major thrust on alternate
avenues so as to extend the outreach. Accordingly, paragraph 2 (Incentives) [Link]. (iii) stands revised
as follows:

a) Revised scheme of incentive for distribution of coins

b) Banks to provide coins to bulk customers

c) Engaging Business Correspondents (BCs) for distribution of coins

d) Engaging Cash in Transit (CIT) entities for distribution of coins

More details on the above points can be referred to in the below link

Reference link: [Link]

Master Direction - Classification, Valuation and Operation of Investment Portfolio of
Commercial Banks (Directions), 2021

RBI/DOR/2021-22/81
[Link].42/21.04.141/2021-22

August 25, 2021

All Commercial Banks (excluding RRBs)

Dear Sir / Madam,

Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial

Banks (Directions), 2021

The Reserve Bank of India has, from time to time, issued several guidelines / instructions / directives
to the banks on Prudential Norms for Classification, Valuation and Operation of Investment Portfolio
by Banks.

2. To enable banks to have current instructions at one place, a Master Direction incorporating all the
existing guidelines / instructions / directives on the subject has been prepared for reference of the
banks.

3. This Direction has been issued by RBI in exercise of its powers conferred under Section 35A of the
Banking Regulation Act 1949 and of all the powers enabling it in this behalf.

Yours faithfully,

(Usha Janakiraman)
Chief General Manager

Reference link: [Link]

Tokenisation – Card Transactions : Extending the Scope of Permitted Devices

RBI/2021-22/92
[Link].S-469/02-14-003/2021-22

August 25, 2021

The Chief Executive Officer / President

All authorised card networks

Madam / Dear Sir,

Tokenisation – Card Transactions : Extending the Scope of Permitted Devices

We invite reference to our circular [Link] No.1463/02.14.003/2018-19 dated January 08,

2019 on “Tokenisation – Card transactions”, permitting authorised card networks to offer card
tokenisation services to any token requestor, subject to the conditions listed therein. The facility was
available only for mobile phones and tablets of interested card holders. There has been an uptake in
the volume of tokenised card transactions during the recent months.

2. On a review of the framework and keeping in view stakeholder feedback, it has been decided to
extend the scope of tokenisation to include consumer devices – laptops, desktops, wearables (wrist
watches, bands, etc.), Internet of Things (IoT) devices, etc. All other provisions of the circular
referred to above shall continue to be applicable. This initiative is expected to make card
transactions more safe, secure and convenient for the users.

3. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement
Systems Act, 2007 (Act 51 of 2007).

Yours faithfully,

(P. Vasudevan)
Chief General Manager

Reference link: [Link]

Safe Deposit Locker/Safe Custody Article Facility provided by the banks - Revised Instructions

RBI/2021-2022/86
[Link]/40/09.07.005/2021-22

August 18, 2021

All Scheduled Commercial Banks (including RRBs)

All Co-operative Banks
All Small Finance Banks
All Payments Banks
All Local Area Banks

Madam/Sir,

Safe Deposit Locker/Safe Custody Article Facility provided by the banks- Revised Instructions

Please refer to the extant instructions issued to Regulated Entities (REs) by the Reserve Bank on the
above subject. Taking into consideration the various developments in the area of banking and
technology, nature of consumer grievances and also the feedback received from banks and Indian
Banks’ Association (IBA), Reserve Bank of India (‘the Reserve Bank’) has reviewed the
guidelines/instructions issued on the above subject. The review also takes into account, the
principles enumerated by the Hon’ble Supreme Court in ‘Amitabha Dasgupta vs United Bank of
India’, (Judgment dated February 19, 2021 in CA No. 3966 of 2010).

2. Accordingly, in exercise of the powers conferred by Section 35A and Sections 45ZC to 45ZF of the
Banking Regulation Act, 1949, read with Section 56 of the Act ibid and all other provisions of this Act
or any other law enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is
necessary and expedient in public interest to do so, hereby issues the detailed revised instructions
on the above subject. The revised instructions, attached as Annex to this circular, are issued in
supersession of the earlier instructions issued by the Reserve Bank on the subject as listed in
the Appendix. The banks are advised to frame their own Board approved policy/ operational
guidelines in this regard taking into account the revised instructions.

3. The revised instructions shall come into force with effect from January 1, 2022 (except where
otherwise specified) and be applicable to both new and existing safe deposit lockers and the safe
custody of articles facility with the banks.

Yours faithfully,

(Thomas Mathew)
Chief General Manager

Reference link: [Link]

Monitoring of Availability of Cash in ATMs

RBI/2021-22/84
DCM (RMMT) No.S153/11.01.01/2021-22

August 10, 2021

The Chairman /
Managing Director & CEO
All Banks

Dear Sir / Madam,

Monitoring of Availability of Cash in ATMs

As you are aware, the Reserve Bank of India has a mandate to issue banknotes and the banks are
fulfilling this mandate by dispensing banknotes to the public through their wide network of branches
and ATMs. In this connection, a review of downtime of ATMs due to cash-outs was undertaken and it
was observed that ATM operations affected by cash-outs lead to non-availability of cash and cause
avoidable inconvenience to the members of the public.

2. It has, therefore, been decided that the banks/ White Label ATM Operators (WLAOs) shall
strengthen their systems/ mechanisms to monitor availability of cash in ATMs and ensure timely
replenishment to avoid cash-outs. Any non-compliance in this regard shall be viewed seriously and
shall attract monetary penalty as stipulated in the “Scheme of Penalty for non-replenishment of
ATMs” in the Annex. The Scheme shall be effective from October 01, 2021.

Yours faithfully,

(Subrata Das)
Chief General Manager-in-Charge

Encl: As above

Reference link: [Link]

Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio
(SLR) – Marginal Standing Facility (MSF) - Extension of Relaxation

RBI/2021-22/82
[Link].36/12.01.001/2021-22

August 09, 2021

All Scheduled Banks

Madam/Sir

Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity

Ratio (SLR) – Marginal Standing Facility (MSF) - Extension of Relaxation

Please refer to circular [Link].36/12.01.001/2020-21 dated February 05, 2021, on Marginal

Standing Facility (MSF), wherein the banks were allowed to avail of funds under the MSF by dipping
into the Statutory Liquidity Ratio (SLR) up to an additional one per cent of their net demand and time
liabilities (NDTL), i.e., cumulatively up to three per cent of NDTL. This facility, which was initially
available up to June 30, 2020, was later extended in phases up to September 30, 2021, providing
comfort to banks on their liquidity requirements and also to enable them to meet their Liquidity
Coverage Ratio (LCR) requirements.

2. As announced in the Statement on Developmental and Regulatory Policies of August 06, 2021,
with a view to providing comfort to banks on their liquidity requirements, banks are allowed to
continue with the MSF relaxation for a further period of three months, i.e., up to December 31,
2021.

Yours faithfully

(Thomas Mathew)
Chief General Manager

Reference link: [Link]

Guidelines for Implementation of the circular on Opening of Current Accounts by Banks

RBI/2021-22/77
[Link].35/21.04.048/2021-22

August 04, 2021

To,

All Scheduled Commercial Banks

All Payments Banks

Madam / Dear Sir,

Guidelines for Implementation of the circular on

Opening of Current Accounts by Banks

Please refer to circulars [Link]/7/21.04.048/2020-21 dated August 6,

2020, [Link].27/21.04.048/2020-21 dated November 2,
2020 and [Link].30/21.04.048/2020-21 dated December 14, 2020 on Opening of Current
Accounts by Banks - Need for Discipline.

2. The instructions were issued vide the above circulars in order to enforce credit discipline amongst
the borrowers as well as to facilitate better monitoring by the lenders; and for this purpose, a graded
approach had been prescribed on opening and operating of current accounts and CC/OD facilities.
Banks were required to implement these instructions in a non-disruptive manner while keeping the
bonafide business requirements of the borrowers in mind.

The timeline for implementing the notifications as mentioned in circular and resolving the
operational issues is till October 31, 2021. For more details, click on the link below

Reference link: [Link]

Framework for Outsourcing of Payment and Settlement-related Activities by Payment System
Operators

RBI/2021-22/76
[Link].S-384/02.32.001/2021-2022

August 3, 2021

The Chairman / Managing Director / Chief Executive Officer

All Non-Bank Payment System Operators

Madam / Dear Sir,

Framework for Outsourcing of Payment and Settlement-related Activities by Payment System

Operators

The Payment System Operators (PSOs), by virtue of services they provide and the construct of
models on which they operate, largely outsource their payment and settlement-related activities to
various other entities.

2. In order to enable effective management of attendant risks in outsourcing of such activities, it was
announced in the Statement on Developmental and Regulatory Policies released with the bi-monthly
Monetary Policy Statement 2020-21 on February 05, 2021, that a framework for outsourcing of
payment and settlement-related activities by PSOs, will be issued by the Reserve Bank of India.
Accordingly, a framework for the same is provided in the Annex. The PSOs shall ensure that all their
outsourcing arrangements, including the existing ones, are in compliance with this framework by
March 31, 2022.

3. This framework is issued under Section 10 (2) read with Section 18 of Payment and Settlement
Systems Act, 2007 (Act 51 of 2007).

Yours faithfully,

(P Vasudevan)
Chief General Manager

Reference link: [Link]

Rating of Deposits of HFCs – Approved Credit Rating Agencies and Minimum Investment Grade
Credit Rating

RBI/2021-22/74
[Link].34/03.10.136/2021-22

July 29, 2021

All deposit taking Housing Finance Companies (HFCs)

Madam/ Dear Sir,

Rating of Deposits of HFCs – Approved Credit Rating Agencies and Minimum Investment Grade
Credit Rating

A reference is invited to Para 25.2 of Master Direction – Non-Banking Financial Company – Housing
Finance Company (Reserve Bank) Directions, 2021, wherein the names of five approved credit rating
agencies and their minimum investment grade credit rating for the purpose of accepting public
deposits have been listed.

2. On a review, it has been decided to align the aforesaid provisions for HFCs with provisions on the
subject prescribed for NBFCs which are contained in Para 9 of Master Direction - Non-Banking
Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 2016. Accordingly, the
names of credit rating agencies and their minimum investment grade ratings for the purpose of
accepting public deposits by HFCs are listed in the Annex.

3. The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve
Bank) Directions, 2021 is being modified accordingly.

Yours faithfully,

(J.P. Sharma)
Chief General Manager

Reference link: [Link]

Access for Non-banks to Centralised Payment Systems

RBI/2021-22/73
[Link] No.S290/04.04.009/2021-22

July 28, 2021

The Chairman / Managing Director / Chief Executive Officer

Authorised Non-bank Payment System Providers

Madam / Dear Sir,

Access for Non-banks to Centralised Payment Systems

A reference is invited to Paragraph 9 of the Statement on Developmental and Regulatory Policies

dated April 07, 2021 wherein it was announced that the Reserve Bank shall encourage participation
of non-banks in Reserve Bank of India-operated Centralised Payment Systems (CPS) viz. Real Time
Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems, in a phased manner.
A reference is also invited to the Master Directions on Access Criteria for Payment Systems dated
January 17, 2017 wherein Reserve Bank had prescribed criteria for access to CPS.

2. Direct access for non-banks to CPS lowers the overall risk in the payments ecosystem. It also
brings advantages to non-banks like reduction in cost of payments, minimising dependence on
banks, reducing the time taken for completing payments, eliminating the uncertainty in finality of
the payments as the settlement is carried out in central bank money, etc. The risk of failure or delay
in execution of fund transfers can also be avoided when the transactions are directly initiated and
processed by the non-bank entities.

3. On a review of extant arrangements and after detailed discussions with Payment System Providers
(PSPs), it is advised that, in the first phase, authorised non-bank PSPs, viz. PPI Issuers, Card Networks
and White Label ATM Operators shall be eligible to participate in CPS as direct members as per the
approach presented in the Annexure hereto.

4. The Master Directions on Access Criteria for Payment Systems dated January 17, 2017 are also
being modified accordingly. For operational and user convenience, Reserve Bank has placed a set
of FAQs on the subject on its website.

5. These instructions are issued under Section 10 (2) read with Section 18 of Payment and
Settlement Systems Act, 2007 (Act 51 of 2007) and come into effect from the date of this circular.

Yours faithfully,

(P Vasudevan)
Chief General Manager

Reference link: [Link]

Loans and Advances – Regulatory Restrictions

RBI/2021-22/72
[Link].33/13.03.00/2021-22

July 23, 2021

All Scheduled Commercial Banks (excluding RRBs)

All Small Finance Banks
All Local Area Banks

Madam / Dear Sir,

Loans and Advances – Regulatory Restrictions

Please refer to paragraphs [Link], [Link] and paragraph [Link] of Master Circular on Loans and
Advances - Statutory and Other Restrictions dated July 01, 2015.

2. On a review, it has been decided that

i) For personal loans granted to any director of other banks, the threshold of Rupees twenty-five
lakh, as mentioned in para [Link], stands revised to Rupees five crore.

ii) Paragraph [Link] has been revised as under –

Unless sanctioned by the Board of Directors/Management Committee, banks should not grant loans
and advances aggregating Rupees five crore and above to -

(a) any relative other than spouse (spouse as specified in para [Link] above) and minor / dependent
children of their own Chairmen/Managing Directors or other Directors;

(b) any relative other than spouse (spouse as specified in para [Link] above) and minor / dependent
children of the Chairman/Managing Director or other directors of other banks*;

(c) any firm in which any of the relatives other than spouse (spouse as specified in para [Link]
above) and minor / dependent children as mentioned in (a) & (b) above is interested as a partner or
guarantor; and

(d) any company in which any of the relatives other than spouse (spouse as specified in para [Link]
above) and minor / dependent children as mentioned in (a) & (b) above is interested as a major
shareholder or as a director or as a guarantor or is in control.

Provided that a relative of a director shall also be deemed to be interested in a company, being the
subsidiary or holding company, if he/she is a major shareholder or is in control of the respective
holding or subsidiary company.

*including directors of Scheduled Co-operative Banks, directors of subsidiaries/trustees of mutual

funds/venture capital funds.

iii) Paragraph [Link] has been revised as under -

The proposals for credit facilities of an amount less than Rupees twenty-five lakh or Rupees five
crores (as the case may be) to these borrowers may be sanctioned by the appropriate authority in
the financing bank under powers vested in such authority, but the matter should be reported to the
Board.
Reference link: [Link]
Cassette - Swaps in ATMs

RBI/2021-22/71
DCM (Plg.) No.S39/10.25.007/2021-22

July 12, 2021

The Chairman / Managing Director & Chief Executive Officer

All Scheduled Commercial Banks including RRBs
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks.

Madam / Dear Sir,

Cassette - Swaps in ATMs

Please refer to our circular RBI/2017-18/162/DCM (Plg.) No.3641/10.25.007/2017-18 dated April 12,
2018 on the captioned subject wherein banks were advised to consider using lockable cassettes in
their ATMs which shall be swapped at the time of cash replenishment. The same was advised to be
implemented in a phased manner covering at least one third ATMs operated by the banks every
year, such that all ATMs achieve cassette swap by March 31, 2021.

2. In this regard, representations have been received from Indian Banks’ Association on behalf of
various banks expressing difficulties in meeting this timeline. Accordingly, it has been decided to
extend the timeline for implementation of cassette swap in all ATMs till March 31, 2022.

3. Banks shall monitor progress and make the required course correction at the end of every
quarter, at the level of Board / ACB and report status within seven days of the end of the quarter,
starting from the quarter ended September 2021, to the Chief General Manager-in-Charge,
Department of Currency Management, Reserve Bank of India, Central Office, Amar Building, Fourth
Floor, Sir P. M. Road, Fort, Mumbai 400 001. The said report should be sent by e-mail. No hard copy
need be sent.

Yours faithfully,

(Subrata Das)
Chief General Manager-in-Charge

Reference link: [Link]

New Definition of Micro, Small and Medium Enterprises - Addition of Retail and Wholesale
Trade

RBI/2021-2022/67
[Link] & [Link].13/06.02.31/2021-22

July 7, 2021

The Chairman/ Managing Director/Chief Executive Officer

All Commercial Banks
(including Small Finance Banks, Local Area Banks and Regional Rural Banks)
All Primary (Urban) Co-operative Banks/State Co-operative Banks
/ District Central Co-operative Banks
All-India Financial Institutions
All Non-Banking Financial Companies

Dear Sir/Madam,

New Definition of Micro, Small and Medium Enterprises - Addition of Retail and Wholesale Trade

Please refer to the circulars [Link] & [Link].3/06.02.31/2020-21 dated July 2, 2020 on
‘Credit flow to Micro, Small and Medium Enterprises Sector’ and [Link] &
[Link].4/06.02.31/2020-21 dated August 21, 2020, on ‘New Definition of Micro, Small and
Medium Enterprises- clarifications’.

2. In this connection, Ministry of Micro, Small and Medium Enterprises vide Office Memorandum
(OM) No. 5/2(2)/2021-E/P & G/Policy dated July 2, 2021, has decided to include Retail and
Wholesale trade as MSMEs for the limited purpose of Priority Sector Lending and they would be
allowed to be registered on Udyam Registration Portal for the following NIC Codes and activities
mentioned against them:

Wholesale and retail trade and repair of motor vehicles and

45
motorcycles

46 Wholesale trade except of motor vehicles and motorcycles

47 Retail trade except of motor vehicles and motorcycles

3. The Enterprises having Udyog Aadhaar Memorandum (UAM) under above three NIC Codes are
now allowed to migrate to Udyam Registration Portal or file Udyam Registration afresh.

Yours faithfully

(Kaya Tripathi)
Chief General Manager

Reference link: [Link]

Review of Instructions on Interest on overdue domestic deposits

RBI/2021-22/66
[Link].29/13.03.00/2021-2022

July 02, 2021

All Scheduled Commercial Banks (including RRBs)

All Small Finance Banks
All Local Area Banks
All Primary (Urban) Co-operative Banks/ District Central Co-operative Banks/ State Co-operative
Banks

Dear Sir / Madam,

Review of Instructions on Interest on overdue domestic deposits

Please refer to Section 9 (b) of Master Direction - Reserve Bank of India (Interest Rate on Deposits)
Directions, 2016 dated March 3, 2016, and the Master Direction - Reserve Bank of India (Co-
operative Banks - Interest Rate on Deposits) Directions, 2016 dated May 12, 2016 in terms of which
if a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall
attract rate of interest as applicable to savings deposits.

2. On a review of these instructions, it has been decided that if a Term Deposit (TD) matures and
proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as
applicable to savings account or the contracted rate of interest on the matured TD, whichever is
lower.

3. The relevant section of Master Directions are amended accordingly as indicated in the Annex.

Yours faithfully,

(Thomas Mathew)
Chief General Manager

Reference link: [Link]