Reserve Bank of India

Market Infrastructure

India Tightens Outward Remittance Norms To Check Fund Flows

By Garima Chitkara | 21/06/2018

The RBI requires the quoting of permanent account numbers for all transactions. It has also tightened the definition of “close relative” for funds sent for the “maintenance” of close relatives under its remittance regulation.

Securities / Derivatives

India Eases Rules For FPI Investment In Corporate Bonds

By Garima Chitkara | 18/06/2018

RBI has loosened some restrictions on residual maturity and concentration limits on corporate bond holdings by foreign investors in a bid to boost demand and support the rupee.

Capital / Liquidity

RBI Drafts Rules to Restrict Short Term Borrowings

By Manesh Samtani | 15/06/2018

New rules will require a minimum 40% fixed term loan component of working capital financing facilities by 1 October and 60% by 1 April 2019, to reduce cash credit borrowings which often entail loose repayment schedules, perpetual roll-overs.

Capital / Liquidity

HKMA Imposes Enhanced Supervisory Arrangements on Indian Bank Branches

By JP Reimann | 14/06/2018

Due to capital deficiencies, the Hong Kong branches of Allahabad Bank, Punjab National Bank and Indian Overseas Bank must hold HQLA equivalent to 100% of unpledged deposits and should not solicit customer deposits, among other measures.

Securities / Derivatives

NSE Launches Tri-party Repos on Corporate Bonds

By Garima Chitkara | 13/06/2018

Tri-party repo will facilitate greater secondary market liquidity in the India’s corporate bond market; platform will initially allow basket repos with maturities between one and seven days.

Capital / Liquidity

RBI Continues to Allow Banks to Spread Bond Losses Over Four Quarters

By Garima Chitkara | 11/06/2018

RBI has allowed banks to spread bond trading losses incurred in the April-June quarter over four quarters, but changes rules on valuation of state government debt.

Fintech / Regtech

Singapore, India Establish Joint Working Group on FinTech

By Karen Chiu | 06/06/2018

Joint working group to foster closer fintech cooperation, including through real-time cross border fund transfers and links between payment system operators.

Capital / Liquidity

India Bank Employees Challenge RBI Loan Provisioning Norms

By Garima Chitkara | 04/06/2018

Organisation representing bank employees filed a writ against RBI February circular on provisioning norms which has resulted in heavy losses at public sector banks

Market Infrastructure

Regulators to the Rescue: MAS and the Drive to Ease the Data Reporting Burden

By Swati Kothari | 30/05/2018

MAS has unveiled its roadmap for the transformation of the collection of data from financial institutions. And while there may be clear benefits, providing all data in machine readable format by MAS’ planned deadline will be challenging.