Right to Information Act

1. What is purpose of categorization of CA firms for Branch Statutory Audits of banks

The purpose of categorization of CA firms for Branch Statutory Audits of banks is to enable the banks to allot the branches to the extent possible, to the audit firms taking into consideration their category and audit experience in such a way that larger branches are audited by bigger/experienced audit firms.

2. What are the Ranges of Advances to particular category of CA firms for allotment of Branch Statutory Audits

No range of advances to particular category of CA firms for allotment of Branch Statutory Audits has been prescribed by RBI.

3. What is Unique Code Number

Unique Code Number is allotted by the Institute of Chartered Accountants of India to audit firms. Since The Institute of Chartered Accountants is a public authority as defined in section 2(h) of the Right to information Act 2005, you may consider approaching them for the required information.

4. What is the system to allot Unique Code Number

1. Why was the “no frills” account converted to the ‘Basic saving Bank Deposit Account’?

What is the system to allot Unique Code Number

The rationale for the conversion is spelt out in para 88 of Monetary Policy Statement of RBI for 2012-13 announced on 17.04.2012 which is as under:

“Financial inclusion has been high on the agenda of the Reserve Bank. With a view to providing fillip to this concept, banks were advised, in November 2005, to make available a basic banking ‘no-frills’ account with either ‘nil’ or very low minimum balance as well as charges that would make such accounts accessible to vast sections of the population. The nomenclature of the account in this manner has tended to signify that these accounts are opened more with a view to indicating achievement of numerical targets under the financial inclusion plans. On a review, it has been decided to modify the guidelines on opening of basic banking ‘no-frills’ accounts with a view to doing away with the stigma associated with the nomenclature and making the basic banking facilities available in a more uniform manner across the banking system. Accordingly, it is proposed that:

• banks should offer a ‘basic savings bank deposit account’ with certain minimum common facilities and without the requirement of minimum balance to all their customers.”

Detailed policy of the Reserve Bank of India for release of advertisements in Media

The Department of Communication [DoC] prepares a panel of approved advertising agencies for use by all the Regional Offices and Central Office Departments of the Reserve Bank of India. The Advertising Agencies have to meet a detailed eligibility criteria prescribed by the RBI for being considered for empanelment. Whenever an advertisement has to be inserted in the print / electronic media, the work is assigned to an empanelled advertisement agency on rotation basis. The agencies are required to execute the work assigned to them as per the time schedules prescribed by the RBI.

The work of releasing advertisements through the media is decentralized. Except for advertisements involving large budgets and creativity, which are coordinated by the DoC, the Central Office Departments of the RBI and the Regional Offices issue advertisements locally through one of the advertisement agencies on the approved panel.

Please mention physical features of following denomination of notes/coins, approved by Reserve Bank of India /mint. Dimension of following denomination of notes/coins-
Rs. 1000, Rs. 500, Rs. 100, Rs. 50, Rs. 20, Rs. 10, Rs. 5, Rs. 2, Re. 1Coins Rs. 10, Rs.5, Rs. 2, Re. 1, Re. 1/50

Available information in the form it exists, about the size of contemporary banknotes in the denomination of Rs. 5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 in Mahatma Gandhi Series, may be accessed on the Bank's website www.rbi.org.in on the following link-

For common person>Extra Curricular>Currency Museum>Contemporary Bank Notes>Bank Notes

Information about Re 1 and Rs. 2 notes is not available with us.

Available information, in the form it exists, on dimension of some of the coins may be accessed on the Bank's website www.rbi.org.in on the following link-

Arrangements for minting of coins and printing of notes and names and addresses of agencies [Mints / Note Presses] in India

(i) Arrangements for minting of coins is done through the following Mints of Government of India:

Arrangements for printing of notes is done through the following Currency Presses:

Procedure & Terms of supply of new currency in various chests of banks

(i) As regards the procedure, allocation of notes and coins to Reserve Bank of India offices is made on the basis of indent placed to presses and mints. Offices of Reserve Bank of India arrange remittances to currency chests under their jurisdiction as per the periodical indents placed by the currency chests and stocks available with them as well as with the currency chest. Currency chest branches in turn supply notes and coins received from Reserve Bank of India offices to other branches linked to them. There are no terms and conditions.

What are the different forms and value of Rupee accepted as per Indian law?

When does an in-use rupee form become invalid or not acceptable? is there any Govt order that describes an invalid form of rupee?

Is a torn/damaged rupee note valid?

What damage will make rupee note invalid (eg complete torn apart note ,half torn note etc.?

What are various options available for one to follow to make an invalid rupee note valid.

Bank note/ coins are legal tender in payment or on account as indicated below:

The Central Government may, by notification in the gazette, declare that with effect from such date as may be specified, any series of bank notes of any denomination shall cease to be legal tender. Further, no person shall of right be entitled to recover from the Government or the Reserve Bank of India, the value of any lost, stolen, mutilated or imperfect currency note of Government of India or banknote. The value of imperfect / mutilated note may be refunded as a matter of grace subject to conditions and limitations.

Soiled bank notes (i.e. notes which have become dirty and due to excessive use or double numbered banknote cut into two pieces but on which both the numbers are intact) can be exchanged for full value at Reserve Bank of India or any commercial bank branch.

The public can get value of mutilated notes (i.e. notes which are torn,disfigured, burnt, washed, eaten by white ants etc.) as a matter of grace, as laid down in the RBI Note Refund Rules 1975 (as amended up to 1980) after adjudication. Currently, provisions exist for payment of full, half or no value as far as bank notes of Rs.10 and above are concerned. As regards Re.1/-, Rs.2/-, and Rs.5/- notes, the tenderer can get either full or no value depending upon the condition of the note. Mutilated notes can be tendered at Reserve Bank of India Offices/designated bank branches.

The following types of banknotes are not eligible for payment under RBI Note Refund Rules, 1975 (as amended up to 1980)

A banknote which is

• less than half the area of the full note.

• devoid of the major portion of the number on an undivided area i.e. the prefix and three digits or four digits of the number in banknotes up to and inclusive of Rs.5/- in respect of banknotes of Rs.10/- and above where this inadequacy is present at both the numbering panels.

• Cancelled by any office of Reserve Bank of India or against which the value has already been paid.

• found to be forged / counterfeit.

• Deliberately cut or tampered, carrying extrinsic words or visible representation intended to convey or capable of conveying any message of a political character
  
  Notes can be exchanged / tendered for adjudication over the counters of Reserve Bank of India Offices/designated bank branches. Mutilated notes can be sent by post for adjudication to the nearest Issue Office of Reserve Bank of India.

Instructions given by RBI to banks regarding exchange of mutilated notes.

Information on instructions given to banks on exchange of mutilated notes is in our Master Circular- "Facility for exchange of Notes and Coins" available at http://www.rbi.org.in/web/rbi/-/master-circular-facility-for-exchange-of-notes-and-coins-3671 on our website.

Are 25 paise and 50 paise coins withdrawn from circulation?

The 25 paise and 50 paise coins are legal tender and are not withdrawn from circulation. They may be validly used/ accepted for all transactions. RBI has issued press release to that effect and has also issued instructions to banks to display at all branches, boards/notices for information of customers/ general public to the effect that all 25 and 50 paise coins continue to be valid/legal tender and may be used for transactions in the normal course.

As detailed in the “Frequently Asked Questions” link on the Reserve Bank of India website ( http://www.rbi.org.in/scripts/FAQView.aspx?Id=39), the Reserve Bank decides the volume and value of banknotes to be printed each year. The quantum of banknotes that needs to be printed, broadly depends on the requirement for meeting the demand for banknotes due to GDP growth, replacement of soiled banknotes, inflation and reserve stock requirements. This estimation is done with the help of statistical models/techniques.

The Government of India decides the quantity of coins to be minted on the basis of indents received from the Reserve Bank. Although coins of all denominations are issued by the government, they are put into circulation through the Reserve Bank. The Reserve Bank is the sole authority for issuing banknotes in India under Section 22 of the Reserve Bank of India Act, 1934. It also derives the role of currency management from the above act.

The currency operations are carried out through its 18 issue offices, one sub-office at Lucknow, a currency chest at Kochi and a wide net work of currency chests. These offices receive fresh banknotes from the banknote printing presses. The issue offices of the Reserve Bank send fresh banknote remittances to the designated branches of commercial banks. Once the bank notes are released into the banking system, they form a part of the currency in circulation, which is the liability of the Issue Department of the Reserve Bank.

Section 34 (l) of the RBI Act requires that all bank notes issued by the Reserve Bank since April 1, 1935 and the currency notes issued by the Government of India before the commencement of operations of the Reserve Bank, be part of the liabilities of the Issue Department which stood at ₹12,016.24 billion as on June 30, 2013, including notes in circulation of ₹12,016.16 billion (Table 1).

Table 1: Reserve Bank of India: Issue Department Balance Sheet as at 30th June 2013 (₹ thousands)

Source: Reserve Bank of India, Annual Report 2012-13

The eligible assets of the Issue Department for backing its currency liabilities consist of gold (coin and bullion), foreign securities, rupee coin, Government of India securities, internal bills of exchange and other commercial papers.

Though printing of money per-se is not inflationary, the injection of the same in to the banking system could lead to rise in prices. It may be mentioned in this context, presently the Reserve Bank does not directly monetise fiscal deficit by participating in government securities auctions (primary bond market).

The Reserve Bank however, could influence money supply by changing short-term interest rates (which impact currency demand) or by open market operations (by impacting funds available to the banking sector).

From where can I procure the History of Reserve Bank of India publication and what is its cost? Please mention full address and phone number of the person whom I can contact to procure the above said publication?

The Reserve Bank of India History 1935 – 1981 (3 volumes) is available at leading book stores in India. It can also be purchased by sending cheques / draft drawn in favour of Reserve Bank of India payable at Mumbai and sent to

Director
Division of Reports and Knowledge Disemination
Department of Economic and Policy Research
Reserve Bank of India, Amar Building
Sixth floor, P.M.Road, Fort, Mumbai 400 001.
Phone: 022-22603000 Extn: 4609
Click here to send email

The price of the three volume set is Rs. 3700/- (including postal charge).

The list of major publications published by Department of Economic Policy Research is given below:

1. RBI Bulletin

2. Weekly Statistical Supplement (WSS)

3. Annual Report

4. Report on Trend and Progress of Banking In India

5. State Finances: A Study of Budgets

6. Report on Currency and Finance

7. Working Papers (published on RBI website only)

8. Occasional Papers

9. DRG Studies

Subscription process for the monthly RBI Bulletin and the Weekly Statistical Supplement is as follows:

*The price of a single copy without postage for regular subscription is Rs. 260 and for concessional subscription is Rs. 200.
@ Available for research students, full time teachers, academic institutions and public libraries in India. The Reserve Bank of India Bulletin is also available on Internet at http://www.bulletin.rbi.org.in
Payments should be made by Demand Draft / Crossed Cheque / pay Order drawn in favour of Reserve Bank of India and payable at Mumbai only. The forwarding letter enclosing DD / Crossed Cheque / Pay Order should be addressed to:
The Director, Division of Reports and Knowledge Dissemination, Department of Economic and Policy Research, Reserve Bank of India, Amar Building, 6th Floor, P.M.Road, Fort, Mumbai 400 001. Ph: 022 22603000 Extn. 4609 Fax: 022 22632110

Click here to send email

As mentioned under 1, CAD is compiled on a quarterly basis

Which factors influencing price of gold in India

Since India imports gold from international market, its domestic prices (in India) are largely influenced by international gold prices. In addition to international price of gold, importer has also to pay customs duty of 10 per cent on value of imported gold which gets added to final local price of gold in India. Apart from these two major factors, there could be some impact of domestic demand and supply factors, which might be impacting local price of gold in India.

The international price of gold has increased significantly since 2005-06 which were broadly reflected in trend in domestic gold prices as well. High gold prices, both in international and domestic market, in turn impacted India’s import of gold in these years. This eventually led to stress in India’s balance of payments as current account deficit (CAD) widened in recent years. India’s CAD widened from US$ 48.1 billion in 2010-11 to US$ 78.2 billion in 2011-12 and US$ 88.2 billion in 2012-13. High CAD had also put downward pressure on rupee exchange rate against dollar in 2012-13 and Q1 of 2013-14. However, a sharp decline in international gold prices in 2013-14, along with various measures undertaken by the Government and the Reserve Bank helped in reducing gold imports during 2013-14. With lower imports, India’s CAD also narrowed sharply to US$ 32.4 billion in 2013-14. In recent months, rupee exchange rate against dollar has also stabilised.

Table 1: Gold Prices

1.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a savings bank account holder of the bank?

If any Indian Bank fails in terms of Section 16(1) of the DICGC Act, 1961 “ the liability of the Corporation in respect of an insured bank will be limited to the deposits as on the date of the cancellation of the registration”.

Each depositor in a bank is insured up to a maximum of ` 1,00,000/-(Rupees One Lakh) for deposits either in savings account, current account or fixed deposits held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

If more than one deposit accounts (Savings, Current, and Recurring or Fixed deposit) are jointly held by individuals in one or more than one branch of a bank and if their names appear in the same order, then these joint accounts are considered as held in same capacity and same right. Accordingly, the balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of Rupees one lakh only and is paid after setting off any amount legally entitled to be recovered from the depositor by the bank.

However, in terms of revised guidelines issued on April 26, 2007, if individuals open more than one joint accounts in which their names are not in the same order or group of persons are different ,then the deposits held in these joint accounts are considered as held in different capacity and different right. Accordingly insurance cover will be available separately up to Rupees one lakh only to every such account where the names are appearing in different order or names are different. This has been explained in detail in the illustration. (Annex)

Insurance is extended only to the cash deposits held by the depositors of insured banks.

2.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a Current holder of that bank?

3.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a fixed deposit account holder of that bank?

4.

In case of dacoits or fire incident in the bank , what will be the amount of compensation to be paid to a locker holder in lieu of his belongings (gold silver jewellery) kept in the locker of that bank?

90/2008-09

Total no of Officers with break-up of Grades (A to F)
Total no of Class III employees.
Total no of Class IV employees.

August 20, 2008

The Non-Banking Financial Companies are lending cash against gold deposits and collecting interest against the loan amount. How much percentage of the cost of the gold deposited can be given as loan and what shall be the interest to be collected against the loan according to the Reserve Bank of India’s specifications.

In terms of extant instructions, Non-Banking Financial Companies (NBFCs) are required to maintain a Loan-to-Value (LTV) ratio not exceeding 75 percent for loans granted against the collateral of gold jewellery.

The interest rates charged by NBFCs are governed by the terms and conditions of the loan agreement entered into by the borrower and the NBFC. The Reserve Bank has not specified any interest rate that can be charged by any NBFC. However, in order to ensure transparency in such matters, the NBFCs have been advised by the Reserve Bank to adopt a Fair Practice Code with the approval of their Boards. They are also advised to lay out appropriate internal principles and procedures in determining interest rates and other charges. The latest circular issued to NBFCs on Fair Practices Code is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code. http://rbi.org.in/web/rbi/notifications/master-circulars

The Reserve Bank has not prescribed any ceiling on interest rate that can be charged by an NBFC. The interest rate chargeable, on all loans including loans against Gold Ornaments, is governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC. However, in order to ensure transparency in such matters, the NBFCs have been advised by the Reserve Bank to adopt a Fair Practices Code (FPC) with the approval of their Boards. The latest circular issued to NBFCs on FPC is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code

Available at the link: http://rbi.org.in/web/rbi/notifications/master-circulars

Instructions in regard to rate of interest chargeable on all types of loans including loans against security of Gold Ornaments are consolidated in our Master Circular on the Fair Practices Code referred to above.

All loans, including loans against the security of Gold/gold ornaments, granted by NBFCs, registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934, are governed by the provisions of the said Act and the guidelines issued in this regard by the Reserve Bank.

Our guidelines with regard to auction of jewellery, in the event of non-repayment of loans, are available in Para C of our above referred circular, read with para V of our circular DNBS.CC.PD.No.356 / 03.10.01/ 2013-14 September 16, 2013 on Lending Against Security of Single Product – Gold Jewellery, which is available on our website www.rbi.org.in > Sitemap > NBFC List > NBFC Notifications.

Available at the link: (http://rbidocs.rbi.org.in/rdocs/ Notification/PDFs/CCN356160913L.pdf)

The Reserve Bank has not prescribed maximum and minimum duration of loans and the periodicity for compounding of interest on loans granted by NBFC against any kind of security including Gold ornaments. The Non-banking Financial Companies have discretion to determine the duration and the periodicity of compounding of interest on the loans granted. However, the rate of interest disclosed should be annualised rate so that the borrower is aware of the exact rate that would be charged to the account.

Which of the Foreign or Indian, Private banks, NBFC, Financial Institute and the Banks/ NBFC and here quotd Bank or NBFC can charge compound interest (cumulative interest)? If they can charge cumulative interest then RBI or which of it's Department or Department of Non-Banking Supervision (DNBS) or which Authority has been permitted to charge this? Particularily which Bank / NBFC can charge cumulative interest and express in detail the permission given to them?

(1) Citi Financial Consumer Finance India Ltd. called as “Citi Financial”, (2) HDFC Bank Ltd., (3) Kotak Mahindra Bank Ltd., (4) Kotak Mahindra Prime Ltd., (5) Reliance Capital Ltd., (6) Barclays Bank Ltd., (7) ICICI Bank Ltd., (8) India Bulls.

Non-Banking Financial Companies (NBFC) are registered with the Reserve Bank under Section 45 IA of the RBI Act, 1934. The Reserve Bank has not prescribed any specific interest rate that should be charged by NBFCs or “cumulative interest”. The interest rates charged by NBFCs are governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC. Further, our Master Circular on this subject (Fair Practices Code) states that “The NBFCs should convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise, amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.”

In order to ensure transparency in such matters, NBFCs have been advised by the Reserve Bank to adopt a Fair Practices Code with the approval of their Boards. The latest circular issued to NBFCs on Fair Practices Code is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code at the link http://rbi.org.in/web/rbi/-/master-circular-fair-practices-code-9823

The Department of Non-Banking Supervision regulates and supervises the Non-Banking Financial Companies and has issued the above guidelines to them.

Is it permissible for a non-banking financial company (NBFC) to carry on business without registering with the Reserve Bank of India? If not, and if a NBFC carries on such business, what action would be taken against such a company?

As per Section 45 IA of the Reserve Bank of India Act, 1934, no NBFC shall commence or carry on the business of non-banking financial institution (NBFI) without obtaining certificate of registration (CoR) from the Reserve Bank of India. Business activities to be carried on by such NBFCs are provided under Section 45 I(c) of the RBI Act, 1934. The Reserve Bank of India may take appropriate action against any person (NBFC) contravening the provisions of RBI Act, 1934 and the Directions issued there under.

What are the businesses that a company which is registered as a Residuary Non-Banking Company (RNBC) with RBI can undertake?

A company registered as a RNBC is defined as a non-banking institution, in terms of the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987. RNBCs are companies which receive any deposit under any scheme or arrangement, by whatever name called, in one lumpsum of in installment by way of contributions or subscriptions or by sale of units or certificates or other instruments, or in any other manner and which, according to the definitions contained in the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, or as the case may be, the Miscellaneous Non-Banking Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1977, is not

1. an equipment leasing company
2. a hire purchase finance company
3. a housing finance company
4. an insurance company
5. an investment company
6. a loan company
7. a mutual benefit company
8. miscellaneous non-banking company, and
9. a mutual benefit company.

Does law permit a NBFC governed by RBI rules to disburse loan amt by cash/ through bearer cheque

The mode of disbursal of loan amounts by NBFCs is not governed by RBI regulations. As regards the business practices of NBFCs, these are matters of contract between the NBFC and the borrower and therefore the loan transaction between the borrower and NBFC is regulated by the terms and conditions of the contract. Any grievances in this regard can be raised before the appropriate courts (both civil and criminal) including the local Consumer Forums, as you may deem fit. We may also add that no guidelines have been issued by Reserve Bank relating to vehicle financing by NBFCs.

Rules and Regulations to form a Banking and Non Banking Financial Organizations

As far as Non – Banking Financial companies (NBFC) are concerned, as per Section 45 – IA (1) of Reserve Bank of India Act, 1934, no NBFC shall commence or carry on business of a non – banking financial institution without –

(a) Obtaining a certificate of registration; and

(b) Having the net owned fund (NOF) of rupees twenty - five lakh or such other amount, not exceeding rupees two hundred lakh.

Currently, an NBFC requires NOF of Rs 200 lakh to be eligible for registration as a non banking financial institution and you may refer to RBI's website, www.rbi.org.in ( go to Sitemap>NBFC list>Forms/returns) for other details and specimen application form for certificate of registration to commence / carry on the business of a non- banking financial institution by a company and the requirements to be complied with and documents to be submitted to RBI by NBFCs for obtaining Certificate of Registration from RBI.

3. As regards query about licensing of new bank, at present RBI is not considering any request for opening of new banks in the private sector. As and when RBI considers it necessary to invite applications for opening of new banks in the private sector, a public announcement indicating the detailed norms for setting up a bank will be made. The same will also be made available on the RBI website www.rbi.org.in

4. Banks are regulated by Reserve Bank of India under provisions of the Banking Regulation Act, 1949 and Reserve Bank of India act, 1934.

"Does the money lending business under hire purchase require registration / permission from RBI; if yes under what provision of law?"

Granting of License/ permission for money lending activity is under the jurisdiction of concerned State Governments. In case any non-banking financial activity (e.g. hire purchase and leasing) is to be undertaken, such activity cannot be commenced or carried on without a Certificate of Registration from RBI as per Section 45 IA of RBI Act, 1934.

Are Non-Banking Finance Companies (NBFC) in India allowed to give loans to NPA accounts of nationalized and private banks?

NBFCs lend based on their own credit appraisal mechanism.

Whether they are regulated to a point of Rate of Interest charged by them? Or they can charge whatsoever they would like to under the guidelines of honorable RBI?

Rate of Interest on loans is a contractual obligation between NBFC and borrower. RBI has not issued any guidelines in this regard. However, the Board of each NBFC has to adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium, etc and determine the rate of interest to be charged for loans and advances. NBFC cannot charge interest that are seen to be excessive. The rate of interest should be annualized rates so that the borrower is aware of the exact rates that would be charged to the account. Further, the rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers has to be disclosed by the NBFC to the borrower or customer in the application form and communicated explicitly in the sanction letter.

In addition, the Board of the NBFC has to adopt Fair Practice Code issued by the Bank vide Master Circular DNBS(PD) CC No. 340 / 03.10.042/ 2013-14 dated July 1, 2013 which deals, inter alia, with transparency in interest rates charged to the borrower.

If a NBFC is charging any amount of ROI to any client then can a complaint can be made, if yes to whom?

Grievances can be addressed to the Grievances Redressal Officer of the company. In case the NBFC does not respond, the matter can be taken up with the concerned Regional Office of the Department in whose jurisdiction the company is registered.

In terms of circular RPCD.CO.MSME & NFS.BC.40/06.02.31/2012-2013 dated November 1, 2012 all Scheduled Commercial banks were advised to put in place a Non-discretionary One Time Settlement scheme for recovery of non-performing loans for the MSE sector, duly approved by the Board of Directors. The circular is available on our website www.rbi.org.in.

Reserve Bank of India vide its Circular RPCD.PLNFS.BC.N. 83/ 06.12.05/2000-01 dated April 28, 2001 on ‘Educational Loan Scheme’ had forwarded the Model Education Loan Scheme prepared by Indian Banks’ Association (IBA), for implementation by all Scheduled Commercial Banks (SCBs). The scheme has since been modified by IBA from time to time. The Scheme provides broad guidelines to the banks and implementing bank will have the discretion to make changes suiting to the convenience of students/parents etc. The scheme can be accessed at IBA’s website.

What are the guidelines pertaining to PMEGP scheme?

The PMEGP Scheme was formulated by Government of India and circulated by Reserve Bank of India. Vide its circular RPCD.PLNFS.BC.41/09.04.01/2008-2009 dated October 10, 2008, which is available on our website www.rbi.org.in.

Norms for classifying borrowal accounts of Urban Co-operative Banks as NPAs?

Norms for classification of borrowal accounts as NPAs is provided in our Master Circular UBD(PCB)Cir.No.1/09. 140.00/05-06 dated July 4, 2005 on Income Recognition, Asset Classification and Provisioning, which is available on our website under the title ‘Notifications’

RBI guidelines on merger/ amalgamation of urban co-operative banks (UCBs)?

RBI guidelines on merger/amalgamation of UCBs are available in our circulars No.UBD(PCB)Cir.36/ 09.169.00/2004-05 dated February 2, 2005, and Circular No. UBD(PCB)Cir.18/09.169. 00/2005-06 dated November 22, 2005. These circulars are available on our website at http://rbi.org.in/scripts/Notification User.aspx

Whether a co-operative bank is registered under SARFAESI Act with Reserve Bank of India as a “Securitisation Company” and/or “Securitisation Creditor”? Whether such a bank can automatically become Securitisation Company/Creditor merely on it being registered as a banking company under Banking Regulation Act, 1949 with Reserve Bank of India? Whether such a bank is required to renew its Certificate every year as contemplated under SARFAESI Act? Whether the bank is required to approve a person to be appointed as “Authorised Officer”? Whether such a person is required to be registered as contemplated under SARFAESI Act?

Co-operative Banks fall within the definition of “secured creditor” under SARFESI Act by virtue of the definition contained in section 2(1)(c )(v) of the Act in view of the notification No. S O.105(E) dated 28th January, 2003 of the Central Government declaring “Co-operative Bank” as defined in clause (cci) of section 5 of Banking Regulation Act, 1949 to be a bank for the purposes of SARFAESI. Section 13 of SARFAESI Act, 2002, authorizes the secured creditors to enforce any security interest created in favour of it by the borrower without the intervention of the Court or Tribunal in accordance with provisions of the Act. As a co-operative bank is not a Securitisation Company, the questions regarding renewal of certificate, appointment of “Authorised Officer”, application for registration, etc., would not be relevant.

The query as to whether enforcement of security interest by a secured creditor is required to be registered with “Central Registry” is an issue relating to the interpretation of the provisions of the Act and it is not “information” covered under the Right to Information Act. Reserve Bank does not hold information regarding the exercise of powers by the said bank under section 13(4) of the Act. A reference is also drawn to Section 20 of the Act. Such Central Registry contemplated under the Act would not be a part of the Reserve Bank. It is also clarified that the Central Government has so far not issued any notification to set-up the Central Registry.

(i) The validity period of Co-operative Banks’ pay order?

(ii) Whether co-op banks have the right to withdraw or deposit the amount in customer's saving account without his permission?

(i) Bank’s pay order is basically a bankers’ cheque and hence valid for six months.

(ii) Every bank frames saving bank rules. Deposits/withdrawals into the account (SB Account) are subject to these rules. Banks generally debit SB account with cheque book charges, account maintenance charges, etc.

List of names of scheduled urban co-op banks operating in Maharashtra state

The information is available on the website at www.rbi.org.in/scripts/sitemaps.aspx

RBI guidelines to Co-operative Banks on premature withdrawal of deposits

Paragraph 8 of the Master Circular no 1 dated July 2,
2007 (on our website at http://www.rbi.org.in/web/rbi/-/master-circular-interest-rates-on-rupee-deposits-ucbs-3691) and a Circular UBD(PCB) 78/DC.V.(B) 92-93 dated May 26, 1993 may be referred.

Information on Loan waiver details under Agricultural Debt Waiver and Debt Relief (ADWDR) Scheme, 2008

Copy of rules for monitoring proper implementation of said scheme.

List of documents bank/ Farmer need to submit to government after receiving loan waiver amount.

Copy of rules used to take action against bank if bank failed to provide certificate of debt waiver of debt relief and also failed to take acknowledgement from farmer

Para 4 of our circular RBI/2007-2008/348 UBD.PCB.Cir.No. 50/13.05.000/07-08 dated June 2, 2008 which is available in the website of Reserve Bank of India under the tab ‘Notifications’.

RBI has not prescribed any documents required to be submitted to government by the farmer after receiving the loan waiver amount. The responsibility of the banks under the scheme are given in the circular(s):
(1) UBD.PCB.Cir.No.43/13.05.000/2007-08 dated May 23, 2008
(2) UBD.PCB.Cir.No.50/13.05.000/2007-08 dated June 2, 2008.
The circulars are available in the website of Reserve Bank of India under the tab ‘Notifications’.

Please refer to our circular RBI/ 2012-13/ 381 UBD.BPD.PCB.Cir.No.31/13.05.000/2012-13 dated January 15, 2013 which is available in the website of Reserve Bank of India under the tab ‘Notifications’.

Which delegated authority from Reserve Bank of India has power to cancel the license of the Bank? Please provide us the Name and Address of such authority.

Guidelines as to under which circumstances, a Bank’s banking license can be cancelled.

The Executive Director in charge of Department of Co-operative Bank Regulation (DCBR) of Reserve Bank of India has power to cancel the license of the Co-operative Bank. The Address is as under:

The Executive Director, Department of Co-operative Bank Regulation, Reserve Bank of India, 17th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai-400001.

As per Section 22 (4) of the B. R. Act, 1949 (As Applicable to Co-operative Societies (AACS)), The Reserve Bank may cancel a licence granted to a co-operative bank:

(i) if the co-operative bank ceases to carry on banking business in India; or

(ii) if the co-operative bank at any time fails to comply with any of the conditions imposed upon it under sub-section (1) of the Section 22 of the B.R. Act, 1949 (AACS); or

iii) if at any time, any of the conditions referred to in sub-section (3) of the Section 22 of the B.R. Act, 1949 (AACS) is not fulfilled.

Provided that before cancelling a license under clause (ii) or clause (iii) of sub-section 4 of Section 22(4) of the B.R. Act, 1949 (AACS) on the ground that the co-operative bank has failed to comply with or has failed to fulfill any of the conditions referred to therein, the Reserve Bank, unless it is of opinion that the delay will be prejudicial to the interests of the co-operative bank's depositors or the public, shall grant to the co-operative bank on such terms as it may specify, an opportunity of taking the necessary steps for complying with or fulfilling such condition.

KYC Procedures are carried out on all customers of a bank. The guidelines/instructions issued to Urban Cooperative Banks and DCCBs/ StCBs on Know Your Customer (KYC) Norms/ Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT) / Obligation of Banks under Prevention of Money Laundering Act (PMLA), 2002 upto July 1, 2014 have been consolidated in the Master Circular dated UBD.BPD.(PCB).MC.No.16/12.05.001/2013-14 dated July 1,2014 & RPCD.RRB.RCB.AML.BC.No.02/07.51.018/014-15 dated July 1, 2014. Instructions issued subsequently are available in Circulars UBD.BPD. (PCB).Cir.No.2/14.01.062/2014-15 dated July 2, 2014, RPCD.RRB.RCB.AML.BC.No.12/07.51.018 /2014-15 dated July 3, 2014, RPCD.RRB.RCB.AML.BC.No.14/07.51.018/2014-15 dated July 21, 2014, UBD.BPD.(PCB).Cir.No.5/14.01.062/2014-15 dated August 5 2014, RPCD.RRB.RCB.AML.BC.No.31/07.51.018/2014-15 dated September 9, 2014, RPCD.RRB.RCB.AML.No.2797/07.51.018/2014-15 dated September 9, 2014, UBD.BPD (PCB).Cir.No.15/14.01.062/2014-15 dated September 16, 2014, UBD.BPD.(PCB).Cir.No.16/14.01.062/2014-15 dated September 16, 2014, UBD.BPD.(PCB).Cir.No.22/14.01.062/2014-15 dated October 22, 2014 UBD.BPD.(PCB).Cir.No.23/14.01.062/2014-15 dated October 22, 2014, RPCD.RRB.RCB.AML.BC.No.39/07.51.018 /2014-15 October 31, 2014 and RPCD.RRB.RCB.AML.No.4424/07.51.018/2014-15 dated October 31, 2014.

All circulars are available on our website www.rbi.org.in under the link 'notifications'.

The information sought is available in our Master Circular UBD.BPD.(PCB).MC.No.11/13.01.000/2014-15 dated July 1, 2014 on Interest Rates on Rupee Deposits – Primary (Urban) Co-operative Banks and Master Circular UBD.BPD.(PCB).MC.No.5/13.05.000/2014-15 dated July 1, 2014 on Management of Advances – UCBs which are available on our website www.rbi.org.in under the link 'notifications'.

These instructions are also applicable to banks placed under Directions in terms of section 35 A of Banking Regulation Act, 1949 subject to the terms and conditions mentioned in the Direction imposed.

Please see the Master Circular on Management of Advances UBD.BPD.(PCB) MC No.5/13.05.000/2014-15 dated July 01, 2014

Circulars on interest rates on loans and advances issued to State/Central Co-operative Banks are as follows:

i) RPCD.CO.RF.BC.No.93/07.38.01/2006-07 dated May 16, 2007
ii) RPCD.CO.RF.BC.No.78/07.38.01/2008-09 dated December 19, 2008
iii) RPCD.CO.RF.BC.No.29/07.38.01/2010-11 dated November 19, 2010

The above Circulars are also available on our website https://rbi.org.in under ‘Notifications’.

Total NPA of all banks under your control from time balance on your record, till 30th June 2015.

Give separate details of all PSU, Private Sector and Cooperative Banks details separately and year wise pending of NPA on your record till 30th June, 2015.

Any action taken against any directors or top officials of bank in recovery negligence of NPA and how much amount recovered.

Any action taken against bank’s Directors or top officials adopted false procedure to give loans to big corporate which ends to NPA.

The information on total NPAs of all Urban Co-operative Banks is available on RBI website https://www.rbi.org.in/ under Publications → Annual → Trend and Progress of Banking in India.

The information sought in respect of Urban Co-operative Banks is exempted under Section 8(1) (a) of the Right to Information Act, 2005.

Action taken against the management of the bank including the Board of Directors (BoD) for any act of omission or commission comes within the purview of RCS/CRCS in case of Uni-state and Multi state UCBs, respectively.

Action taken against the management of the bank including the Board of Directors (BoD) for any act of omission or commission comes within the purview of RCS/CRCS in case of Uni-state and Multi state UCBs, respectively.

Regional Office-wise lists of all Scheduled and Non-Scheduled Urban Co-operative Banks which are currently in operation, with their Head Office addresses, are available on RBI website www.rbi.org.in at:

Scheduled Urban Co-op. Banks

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/schedulecoop.pdf

Non-Scheduled Urban Co-op. Banks

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/nonschedulecoop.pdf

(Path: Home Page → Consumer Education and Protection → For Common Person → Useful Information → Financial Agents → Banks in India → Co-operative Banks-Scheduled Urban Co-operative Banks and Non-Scheduled Urban Co-operative Banks)

Inspecting officers are not appointed. Officers posted in DCBS (Regional Offices and Central Office) are deputed for carrying out the inspection. As such it is not an appointment but assignment of a task.

There is no separate list of inspecting officers as any officer from Assistant Manager to General Manager may be assigned with the said task.

Information pertaining to Urban Cooperative Bank is available on the RBI website. Applicant can access the said information at:

http://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications

followed by path:
Primary (Urban) Co-operative Banks' Outlook > 2014-15 > Data Tables > Table 7 - Non-Performing Assets of UCBs

What are pre closure charges on all loan taken in bank, NBFC and Co-operative banks?

Need specific information all types of loan accounts were pre closure charges are levied.

Need specific guidelines of pre closure charges on mortgage loans.

Reserve Bank of India has not prescribed any pre-closure charges on loans, including mortgage loans for co-operative banks. However, we have issued guidelines vide circulars UBD.BPD.(PCB)CIR No.41/12.05.001/2011-12 dated June 26, 2012 and UBD.CO.BPD.PCB.Cir.No.64/12.05.001/2013-14 dated May 26, 2014 prohibiting urban co-operative banks from levying foreclosure charges/ pre-payment penalties on all floating rate home loans and floating rate term loans sanctioned to individual borrowers respectively.

In this regard, please refer to following circulars issued by Reserve Bank of India to State/Central Cooperative Banks

1. RPCD.CO.RF.BC.No.78/07.38.01/2008-09 dated December 19, 2008.
2. RPCD.CO.RF.BC.No.29/07.38.01/2010-11 dated November 19, 2010.
3. RPCD.CO.RCBD.BC.No.84/03.03.01/2011-12 dated June 15, 2012.
4. RPCD.CO.RCBD.BC.No.102/07.51.013/2013-14 dated May 27, 2014.

Regarding Reserve Bank of India instructions to cooperative banks on settlement of claims in respect of accounts without the survivor/nominee clause, please refer to Para 6.3 of our Master Circular DCBR.CO.BPD. (PCB).MC. No. 6/13.01.001/2015-16 dated July 1, 2015 on Maintenance of Deposit Accounts.

The above mentioned Master Circular can be downloaded from our website www.rbi.org.in under the link ‘Notifications’→ Master Circulars→ Co-operative Banking.

Information on credit and deposit of cooperative banks can be accessed from “Report on trend and progress of banking in India” on RBI website. Link for the same is given below.

https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Trend and Progress of Banking in India

With regard to foreclosure charges for Urban Cooperative Banks, you may please refer to our Circulars UBD.BPD. (PCB)CIR. NO. 41/12.05.001 /2011-12 dated June 26, 2012 and UBD.CO.BPD. PCB.No.64/12.05.001/2013-14 dated May 26, 2014.

With regard to foreclosure charges for State and Central Cooperative Banks, you may please refer to Circulars RPCD. CO.RCBD.RRB.BC. No.102/07.51.013/2013-14 dated May 27, 2014 and RPCD. CO. RCBD. BC. No. 84/03.03.01/ 2011-12 dated June 15, 2012

The above circulars are available on our website under the link https://www.rbi.org.in/web/rbi/notifications

You may refer to the following circulars issued to Cooperative Banks:

1. RPCD.Co.RCBD.BC.No.34/07.38.03/2011-12 dated November 24, 2011.
2. RPCD.Co.RCB.BC.No.36/07.51.010/2014-15 dated October 22, 2014 of Para No. 10.1.3 and 10.2 on Customer Service
3. DCBR.CO.BPD. (PCB) MC. No.15 /12.05.001/2015-16 dated July 01, 2015 & Para 25 (Annex IV)

The above Circulars are available on Reserve Bank of India’s website www.rbi.org.in under ‘’Notifications”.

What are the guidelines and rules issued to cooperative banks regarding recording of inheritor (nomination) in case of Fixed Deposit by a senior citizen.

What are the guidelines and rules issued to cooperative banks regarding payment of Fixed Deposits to the inheritor (nominee) of the deceased depositor?

1. RPCD.CO.RF.BC.No.12/07.38.01/2005-06 dated July 12, 2005
2. RPCD.CO.RF.BC.No.70/07.38.01/2006-07 dated April 12, 2007
3. RPCD.CO.RF.BC.No.96/07.38.01/2008-09 dated April 13, 2009
4. RPCD.CO.RCB.BC.No.53/07.51.010/2012-13 dated December 24, 2012.

The above mentioned circulars are available on our website www.rbi.org.in under the link ‘Notifications’.

KYC के पूरा न होने पर बैंक खाता धारक के विरुद्ध किस प्रकार कार्यवाही करते हुए खाता बंद/फ्रीज़ कर सकता है की जानकारी ।

क्या बैंक बिना सूचना के खाता बंद या फ्रीज़ कर सकता है की जानकारी।