Regulatory announcements by RBI in MPC meeting

  1. RBI has increased the household income limit for borrowers of NBFC-MFIs from Rs 1lakh and Rs 1.6lakh for rural areas and urban/semi urban areas respectively to Rs 1.25lakh and Rs 2lakh respectively. Furthermore, lending limit for eligible borrowers has been raised to Rs 1.25lakh from Rs 1lakh presently.
  2. RBI has accepted the following recommendations of the Task Force on Offshore Rupee Markets: 1) domestic banks can offer foreign exchange prices to non-residents at all times out of their Indian books, either through a domestic sales team or overseas branches, 2) rupee derivatives (with settlement in foreign currency) can be traded in International Financial Services Centres (IFSCs).
  3.  The scope of non-interest bearing Special Non-Resident Rupee (SNRR) account has been expanded to include persons resident outside India to open such accounts to facilitate rupee denominated ECB, trade credit and trade invoicing. Restriction on the tenure of SNRR account, currently at 7 years will also be removed.
  4. To further promote digital payments, the collateralised liquidity support for NEFT system will be provided on a 24*7 basis for public from Dec’19.
  5. RBI has also decided to institutionalise an internal ombudsman scheme at the large non-bank PPI issuers (entities who have more than 10mn pre-paid payment instruments outstanding).
  6.  In line with the recommendation of the Committee on Deepening of Digital Payments, RBI has proposed to release more detailed information on digital payment data covering the payment systems authorised by RBI.
  7. RBI has also proposed the creation of an Acceptance Development Fund (ADF) in Tier III and Tier IV centres for growth of acceptance infrastructure for cards in the country.
  8.  Each State/UT Level Bankers Committees (SLBCs/ UTLBCs) has been mandated to identify one district in their respective States/UTs on a pilot basis for 100% digitisation. The identified district may be allocated to a bank with significant footprint

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