TOP35NEWSRELATEDTORBITHISYEAR

1.RBIpermitsNBFCstoworkasBusinessCorrespondentsofbanks:Withaviewtoachievefinancial
inclusion,theReserveBankofIndiahasallowedNonBankingFinanceCompaniestooperateasBusiness
Correspondents(BCs)ofbanks,permittingthemtoofferlimitedservices.Bankswillbeallowedtowork
withnondeposittakingNBFCsasBCs.
Note:TheRBItookintoaccountrecommendationsofNachiketMorCommitteewhilereviewingtheexisting
guidelinesontheappointmentofBCs.
2.RBItoconsideroverPaymentbankasrecommendedbyNachiketMorPanel
i.TheReserveBankofIndiawillsooncomeupwithIndiasfirstpaymentsbank,whichwillofferdepositand
paymentservicesbutnotprovideloans.
ii.ThisideaisinlinewiththerecommendationsmadebytheNachiketMorcommittee.Thecentralbank
seeshugepotentialforfinancialinclusionwithfocusonremittancesbyinvolvingpaymentsystemproduct.
3.ProvideinformationtoSITonblackmoney:RBIdirectsbanksandFIs
i.TheRBIhasaskedallBanksandFinancialInstitutions(FIs)toprovideinformationanddocuments
soughtbytheSpecialInvestigationTeam(SIT)setuptouncoverblackmoney.
ii.ThenewGovernmentatCentrerecentlyconstitutedanSITunderthechairmanshipofformerJustice
M.B.ShahinpursuanceofaJuly2011SupremeCourtjudgment.
4.RBIsimplifiesKYCnormsforopeningbankaccount:Customersneedtosubmitonlyonedocumentary
proofofaddress
eithercurrentorpermanentwhileopeningabankaccountorwhileundergoingperiodicupdation,the
ReserveBankofIndia.Incasetheaddressmentionedasperproofofaddressundergoesachange,
freshproofofaddressmaybesubmittedtothebranchwithinsixmonths,theRBIsaidinanotificationto
banks.
Noproofisrequiredtobesubmittedforsuchaddressforcorrespondence/localaddress,theRBIadded.
However,thisaddressmaybeverifiedbythebankthroughpositiveconfirmationsuchasacknowledgment
ofreceiptofletter,chequebooks,ATMcardstelephonicconversationandvisits.
5.AustraliaandNewZealandBankingGroup(ANZ)hasreceivedinprincipleapprovalfromtheReserve
Banktoopentwonewbranches.ThenewbrancheswillcomeupGurgaon,NCR,andouterBangalore.
6.RBIdirectiveonforeigncurrencyaccounts:TheReserveBankofIndiahasdirectedbanksto:convert
creditbalancesinanyinoperativeforeigncurrency(FC)denominateddepositintoIndianrupeeifthe
formerremainsnotinuseforthreeyearsfromthedateofmaturityofdeposit.
7.RBIeasesgoldimportnormsnodforselecttradinghousestoprocurefromabroad:Underthis
scheme,animporterhastoensurethatatleast20percentofeverylotofimportedgoldisexclusively
madeavailableforexportpurpose.
8.RBInodforbankloantenureupto10yearstoboostexportindustry.Inamajorboostfortheexport
industry,theRBIhasallowedbankstoprovideloanswithtenuresofupto10years.Theseloanswillhelp
exportersinensuringcapitalflowstofulfilllongtermcontracts.Existingnormsallowbankstogiveloansfor
uptooneyearonly.
9.TheReserveBankofIndiasaidbanksshouldmakeallnewATMsinstalledfromJuly1,2014astalking
ATMswithBraillekeypads.
10.RaghuramRajan,theGovernoroftheReserveBankofIndia(RBI)announcedthatplasticcurrency

noteswillbelaunchedin
2015afterfieldtrials.
11.RBIpanelheadedbyexChairmanofAxisBank,P.J.Nayakrecommendfordilutinggovtstakein
publicsectorbankstobelow50%.Thegovernmentshouldcutitsholdinginpublicsectorbankstounder
50percent,aReserveBankofIndia
(RBI)panelreportonTuesdaysaid,criticisingthewayinwhichthelendersarenowbeinggoverned.
12.ReserveBankofIndiagrantedbankinglicencestoinfrastructurefinancingfirmIDFCandmicrofinance
institutionBandhanfromamong25applicantsthatincludedcorporateheavyweightsADAGGroup,Aditya
BirlaGroupandBajajGroup.
Note:Theinprincipleapprovalgranted(tothetwoentities)willbevalidforaperiodof18monthsduring
whichtheapplicantshavetocomplywiththerequirementsundertheguidelinesandfulfiltheother
conditionsasmaybestipulatedbytheRBI.
ChandraShekharGhosh:CMDofBandhanfinancialservices
Dr.RajivB.Lall:ChairmanofIDFCInfrastructureFinanceCompany.
13.ReserveBankofIndia(RBI)issuedtheguidelinestoallowtheminorsofageabove10yearsto
independentlyopenandoperatesavingsbankaccountsanduseotherfacilitieslikeATMandcheque
books.
14.RBIextendedthetimelineforfullimplementationofBaselIIInorms31March2019insteadof31March
2018.
15.RBIinconsultationwithUnionGovernmenton1April2014cappedtheWaysandMeansAdvances
(WMA)limitsforthefirsthalfofthenewfinancialyear201415(April2014Sep2014)at35000crore
rupees.
Note:TheinterestrateonWMA/overdraftwillbebasedon:a)WMA:RepoRate.b)Overdraft:Twopercent
abovetheRepoRate
16.RBIextendsdateofexchangingpre2005notestoJan1,2015
Note:TheReserveBankhasfurtherclarifiedthatthepubliccancontinuetofreelyusethesenotesforany
transaction.RBIhassaidthatpeoplecanunhesitatinglyreceivethesenotesinpayment,asallsuchnotes
continuetoremainlegaltender.
17.ReserveBankofIndia(RBI)hikedthetraderelatedremittancelimitfrom2lakhrupeesto5lakhrupees
pertransactionwithimmediateeffect.Italsoincreasedthenumberoftransactionhandledbyexchange
houses.
18.KCChakrabarty,DeputyGovernor,ReserveBankofIndia,hasquitthreemonthsaheadofcompletion
ofhisterm.
19.RBIpegged201415GDPgrowthatacentralestimateof5.5percent.
20.Economicgrowthfor201415expectedat5.5pc.
21.CADexpectedtocomedownto2pcofGDPin201415.
22.Retailinflationexpectedtobeunder6pcin2014.
23.RBIpanelheadedbyRBIDeputyGovernorAnandSinhahasrecommendedbringingabenchmark
floatinginterestrate,especiallyforhomeloans.PanelalsosuggestedIndianBanksBaseRate(IBBR).
24.ThedeadlineforswitchingtonewformatbankchequesundertheChequeTruncationSystem(CTS)
endedon30April2014.
25.RBIscraps26%caponinterestrateforMFIs:(RBI)removed26percentcapontheinterestratethat

canbechargedbyamicrofinancecompanytoitsborrowers.MFIisallowedtochargeinterestrateequalto
2.75timestheaverageofthebaseratesofthetopfivecommercialbanks.
26.RBIpermits4nonbankentitiestosetupwhitelabelATMs:TheReserveBankhasissuedcertificateof
authorisationtofournonbankentities:
(1)TataCommunicationsPaymentSolutions
(2)MuthootFinance,
(3)PrizmPaymentServicesand
(4)VakrangeeLtd.,tosetupWhiteLabelATMs(WLAs)inthecountry.
Note:MostoftheATMsbelongtobanks,butthecashdispensingmachineswhichareownedand
operatedbynonbankingcompaniesarecalledWhiteLabelATMs.
27.RBIpermitsSreitorolloutwhitelabelATMs:SreiInfrastructureFinanceisplanningtostartrolloutof
itswhilelabelATMs(WLAs)betweenJulyandSeptemberstartingwithapilotof200TierIIItownsinUttar
PradeshandBihar.
28.TheexpertcommitteeheadedbyUrjitR.Patel,DeputyGovernoroftheReserveBankofIndiaexamine
thecurrentmonetarypolicyframeworkoftheReserveBankofIndia(RBI)hassuggestedthattheapex
bankshouldadoptthenewCPI(consumerpriceindex)asthemeasureofthenominalanchorforpolicy
communication.Thenominalanchororthetargetforinflationshouldbesetat4percentwithabandof+/
2percentaroundit.
29.ExChairmanofAxisBank,P.J.Nayakistheheadoftheexpertpaneltoreviewbankboards
governance.ThepanelwillreviewtheRBI'sregulatoryguidelinesonownershipofbanksand
representationintheirboards,amongotherthings.
30.TheReserveBankofIndiahasraisedtheForeignInstitutionalInvestors,FIIsinvestmentlimitinthe
PowerGridCorporationto30percentofitspaidupcapital,underthePortfolioInvestmentScheme.
31.TheReserveBankofIndia(RBI)hasdoubledthesublimitforforeigninvestmentingovernment
securities,toUSD10billionbylongterminvestors.RBI'smoveisaimedtoattractmoreforeignfunds.
Investorslikesovereignwealthfunds(SWFs),multilateralagencies,insurancefunds,pensionfundsand
foreigncentralbanksareconsideredaslongterminvestors.
32.RBIrelaxesgoldloannorms:TheReserveBankofIndiahasallowedNonBankingFinancial
Companies,NBFCstolendupto75percentofthevalueofgold.Itwas60percentearlier.
33.RBIpanel(headedbybankerNachiketMor)hassuggestedsettingupofspecialisedbankstocaterto
lowincomehouseholdstoensurethatallcitizenshavebankaccountsby2016.
34.TheRBIappointedcommitteeonfinancialinclusionhasrecommendedthatthecentralbankshouldset
upspecialisedbankscalledPaymentsBanktoprovidepaymentservicesanddepositproductstosmall
businessesandlowincomehouseholds.Thecommittee,headedbyNachiketMor,saidthatsincethenew
bankwillbedealingwithpoorcustomers,suchabankmustbeallowedtoacceptamaximumdepositof
notmorethanRs50,000.
35.TheReserveBankofIndia(RBI)hadsetupapanelunderexecutivedirectorDeepakMohantyto
reviewthecurrentsystemofdatacollection,disseminationanddatamanagementprocessesinthecentral
bankandimprovetheexistingmechanism.