Orientation Training Program

Important RBI Guidelines

Jan – Oct 2024

 Policy rates AND RESERVE RATIOS

Policy Rates
Policy Repo Rate 6.50 %
Standing Deposit Facility Rate 6.25 %
Marginal Standing Facility Rate 6.75 %
Bank Rate 6.75 %
Fixed Reverse Repo Rate 3.35 %
Reserve Ratios
Cash Reserve Ratio (CRR) 4.50 %
Statutory Liquidity Ratio (SLR) 18.00 %
 IMPORTANT RBI GUIDELINES Jan – sep 2024
Inoperative Accounts /Unclaimed Deposits in Banks- Revised Instructions

Unclaimed Deposit Reference Number (UDRN)- It is a unique number generated through Core
Banking Solution (CBS) and assigned to each unclaimed account/ deposit transferred to DEA
Fund of RBI. The number shall be such that the account holder or the bank branch where account
is maintained, cannot be identified by any third party.

Review of Accounts: Banks shall undertake at least an annual review in respect of accounts,
where there is no customer induced transactions for more than a year.

For the purpose of classifying an account as ‘inoperative’, only customer induced transactions and
not bank induced transactions shall be considered. There may be instances where the customer
has given a mandate like Standing Instructions (SI)/ auto-renewal instructions and there are no
other operations in the Savings /Current account or the Term Deposit. These transactions shall
also be treated as customer induced transactions.
 IMPORTANT RBI GUIDELINES Jan – sep 2024
Treatment of accounts opened for credit of scholarship amount and credit of Direct Benefit
Transfer under Government Schemes: The stipulation of ‘inoperative’ account is not applicable to
these accounts due to their non-operation for a period of more than two years.

Other important points:

a) Interest on savings accounts shall be credited on a regular basis irrespective of the fact that the
account is in operation or not.
b) The banks are not permitted to levy penal charges for non-maintenance of minimum balances
in any account that is classified as an inoperative account. No charges shall be levied for
activation of inoperative accounts.
c) Banks shall host the details of unclaimed deposits {only name, address (without pin code) and
Unclaimed Deposit Reference Number (UDRN)}, which have been transferred to DEA Fund of
RBI on their respective websites, which shall be updated regularly, at least on a monthly basis.
 IMPORTANT RBI GUIDELINES Jan – sep 2024
Master Direction – Reserve Bank of India (Commercial Paper and Non- Convertible Debentures
of original or initial maturity upto one year) Directions, 2024

Eligible issuers: CPs and NCDs may be issued by the following entities

a) Companies;
b) NBFCs, including Housing Finance Companies (HFCs);
c) d) All India Financial Institutions (AIFIs);
e) Any other body corporate with a minimum net-worth of ₹100 crore, provided that the body
corporate is statutorily permitted to incur debt or issue debt instruments in India; and
f) Any other entity specifically permitted by the Reserve Bank.

Co-operative societies and limited liability partnerships with a minimum net- worth of ₹100 crore, may
also issue CPs under these Directions, subject to the condition that all fund-based facilities availed, if
any, by the issuer from banks/ AIFIs / NBFCs are classified as Standard at the time of issue.
 IMPORTANT RBI GUIDELINES Jan – sep 2024
Master Direction – Reserve Bank of India (Commercial Paper and Non- Convertible Debentures
of original or initial maturity upto one year) Directions, 2024

Primary Issuance

a) CPs and NCDs shall be issued in dematerialized form and held with a depository registered with
SEBI.
b) CPs and NCDs shall be issued in minimum denomination of ₹5 lakh and in multiples of ₹5 lakh
thereafter.
c) The tenor of a CP shall not be less than seven days or more than one year. The tenor of an NCD shall
not be less than ninety days or more than one year.
d) Issuance of a CP/NCD with options (call/put) is not permitted.
e) Issuance of a CP/NCD is not permitted to be underwritten or co- accepted.
f) The offer documents for the issue of CPs and NCDs shall, at the minimum, include disclosures.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Amendment to the Master Direction (MD) on KYC

RBI has given more clarity with reference to the definition of Politically Exposed Persons
(PEPs) as given in Master Direction (MD) on KYC.

Explanation: “Politically Exposed Persons” (PEPs) are individuals who are or have been
entrusted with prominent public functions by a foreign country, including the Heads of
States/Governments, senior politicians, senior government or judicial or military
officers, senior executives of state-owned corporations and important political party
officials.”
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Guidelines on import of gold by Tariff Rate Quota (TRQ) holders under the India-UAE
CEPA as notified by–The International Financial Services Centres Authority (IFSCA)

AD Category-I banks have been permitted to remit advance payment on behalf of Qualified Jewellers as
notified by International Financial Services Centres Authority (IFSCA) for eleven days for import of gold
through India International Bullion Exchange IFSC Ltd (IIBX). Valid Tariff Rate Quota (TRQ) holders
under the India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement
(CEPA) as notified by the IFSCA have been permitted to import gold under specific ITC(HS) codes through
IIBX against the Tariff Rate Quota (TRQ). Banks may allow valid TRQ holders under the India-UAE CEPA
to remit advance payment for eleven days for import of gold through IIBX against the TRQ.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Participation of Indian Banks on India International Bullion Exchange IFSC

Limited (IIBX)

Branch/subsidiary/joint venture of an Indian bank in GIFT-IFSC to act as a Trading

Member (TM)/Trading and Clearing Member (TCM) of IIBX, and Indian banks
authorized to import gold/silver to act as Special Category Client (SCC) of IIBX. It is
applicable to all Scheduled Commercial Banks (other than Regional Rural Banks).
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Review of Fixed Remuneration granted to Non-Executive Directors (NEDs)

Considering the crucial role of NEDs in efficient functioning of bank Boards and its various
Committees and in order to further enable the banks to sufficiently attract qualified
competent individuals on their Boards, it has been decided to revise the ceiling from ₹ 20
lakh per annum to ₹ 30 lakh per annum. Banks are required to make disclosure on
remuneration paid to the directors on an annual basis at a minimum, in their Annual
Financial Statements. The instructions would be applicable to all the Private Sector Banks
including Small Finance Banks (SFBs) and Payment Banks (PBs) as also the wholly owned
subsidiaries of Foreign Banks.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Inclusion of Clearing Corporation of India Limited as a Financial Information Provider under

Account Aggregator Framework

The RBI Retail Direct Scheme was launched on November 12, 2021 to facilitate retail investors
to invest in Government Securities. To enable aggregation of financial information on
Government Securities held by retail investors in their Retail Direct Gilt accounts under the
Scheme, Clearing Corporation of India Limited (CCIL) has been included as a Financial
Information Provider.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Master Direction: Reserve Bank of India (Filing of Supervisory Returns) Directions, 2024

Supervisory Returns refer to all periodic / ad-hoc data submitted to RBI in formats prescribed
from time to time, irrespective of the technology platform, periodicity and the mode of
submission.

CRILC is Central Repository of Information on Large Credits.

CIMS refers to an online platform, i.e., Centralized Information Management System of the RBI
for return submission, data dissemination and other related purposes.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Changes in instructions for Commercial

Return Name Existing guidelines Revised guidelines
All Audited Returns Within 7 days from the date of completion of Within 5 working days from the date of signing of the
statutory audit of books of accounts. Auditor’s report in terms of section 134 of the
Companies Act, 2013.
Balance Sheet Analysis (BSA) – Annual Return For Audited Return – Immediately on completion For Audited Return - Within 5 working days from the
of statutory audit of books of accounts. date of signing of the Auditor’s report in terms of section
134 of the Companies Act, 2013.
Interest Rate Sensitivity Return (IRS) Returns for the quarter ending months i.e., June, Returns for all the months shall be submitted within 15
September, December and March may be days.
submitted within in 21 days.
Allocation of branches to Statutory Branch The timelines are specified every year. One month for the banks to update the allocated
Auditors (SBAs) by Public Sector Banks (PSBs) Confidential Letter on Appointment of SBAs is branches online in the AAS system of the RBI from the
issued by the RBI to each PSB separately. date of the appointment of SBAs.
Half yearly/ Quarterly Review of Accounts of As and when provided by SCAs. Within 21 days (inclusive) from the date of receipt of the
Public Sector Banks – Review Report by Statutory report from the SCAs in the matter.
Central Auditors (SCAs)
Half yearly/ Quarterly Review of Accounts of As and when provided by SCAs. Within 21 days (inclusive) from the date of receipt of the
Public Sector Banks Review of Accounts. report from the SCAs in the matter.
Local Area Banks (LABs) - Designating officials ‘Two senior officials may be designated who LABs shall nominate a senior officer (of rank of General
responsible for correct and timely submission of would be responsible for the correct compilation Manager or equivalent) to coordinate the compilation of
data. and timely submission of the returns. the data.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Money Transfer Service Scheme - Submission of Statement on CIMS

Authorised Persons who are Indian Agents under the Money Transfer Service Scheme
(MTSS) were required to submit a quarterly statement (within 15 days from the close of
the quarter to which it relates) on the quantum of remittances received through MTSS using
the eXtensible Business Reporting Language (XBRL) platform. RBI has decided that the
reporting of the aforesaid statement will be done on Centralized Information
Management System (CIMS) portal (URL: https://sankalan.rbi.org.in/) with effect from the
quarter-ending March 2024.
 IMPORTANT RBI GUIDELINES Jan – sep 2024
Amendment to the Master Direction - Credit Card and Debit Card – Issuance and Conduct
Directions, 2022

Failure on the part of the card-issuers to complete the process of closure within seven working days
shall result in a penalty of ₹500 per calendar day of delay payable to the cardholder, till the closure
of the account provided there is no outstanding in the account.

Card-issuers shall report a credit card account as 'past due' to credit information companies (CICs)
or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit
card account remains 'past due' for more than three days. The number of 'days past due' and late
payment charges shall, however, be computed from the payment due date mentioned in the credit
card statement, as specified under the regulatory instructions on ‘Prudential norms on Income
Recognition, Asset Classification and Provisioning pertaining to Advances’ amended from time to
time. Late payment charges and other related charges shall be levied, only on the outstanding
amount after the due date, and not on the total amount due.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Card-issuers do not follow a standard billing cycle for all credit cards issued. In order to provide
flexibility in this regard, cardholders shall be provided option to modify the billing cycle of the
credit card at least once, as per the cardholders’ convenience.

Before reporting default status of a credit cardholder to a Credit Information Company (CIC),
the card- issuers shall ensure that they adhere to the procedure, approved by their Board, and
intimate the cardholder prior to reporting of the status. In the event the customer settles his/her
dues after having been reported as defaulter, the card-issuer shall update the status with CIC
within 30 days from the date of settlement. Card-issuers shall be particularly careful in the case
of cards where there are pending disputes. The disclosure/release of information, particularly
about the default, shall be made only after the dispute is settled. In all cases, a well laid down
procedure shall be transparently followed and be made a part of MITC.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Master Circular - Guarantees and Co-acceptances

No bank guarantee should normally have a maturity of more than 10 years. However, where banks extend
long term loans for periods longer than 10 years for various projects, it has been decided to allow banks to
also issue guarantees for periods beyond 10 years.

Bank guarantees issued for Rs.50,000/- and above should be signed by two officials jointly.
Co-acceptance of bills: Co-acceptances in respect of bills for Rs.10,000/- and above should be signed by two
officials jointly, deviation being allowed only in exceptional cases, e.g. non- availability of two officials at a
branch.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Master Circular - Guarantees and Co-acceptances

Before discounting/ purchasing bills co-accepted by other banks for Rs. 2 lakh and above from a single party,
the bank should obtain written confirmation of the concerned Controlling (Regional/ Divisional/ Zonal)
Office of the accepting bank and a record of the same should be kept.

When the value of the total bills discounted/ purchased (which have been co- accepted by other banks)
exceeds Rs. 20 lakh for a single borrower/ group of borrowers, prior approval of the Head Office of the co-
accepting bank must be obtained by the discounting bank in writing.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Sr. Nature of Irregularity Penalty

No.
i. Shortages of notes in soiled note remittances For notes in denomination up to ₹50
and shortages of notes and coins in currency ₹50/- per piece in addition to the loss.
chestbalances
For notes in denomination of ₹100 &above
Equal to the value of the denomination per piece in addition to the loss.

For coins in all denominations

Equal to the value of the denomination per piece in addition to the loss.
The recovery of loss and imposition of penalty shall be done immediately
on detection of shortage, irrespective of number of pieces.
ii. Mutilated notes (including deliberately cut notes ₹50/- per piece irrespective of the denomination in addition to the loss.
and built-up notes) detected in soiled note
remittances and currency chest balances. The recovery of loss and imposition of penalty shall be done immediately
on detection, irrespective of number of pieces.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Sr. Nature of Irregularity Penalty

No.
iii. Non-compliance with operational guidelines by currency Penalty of ₹5,000 for each instance of
chests detected by RBI officials e.g. irregularity.

a) Non-functioning of CCTV, non- compliance with rules Penalty shall be enhanced to ₹10,000 in case of repetition /
/ guidelines pertaining to CCTV, recording recurrence of irregularity during a financial year.
preservation period and related issues.
Penalty shall be levied immediately.
a) Branch cash / documents kept in strong room (CC’s
vault).

a) Non-utilization of Note Sorting Machines (NSMs) for

sorting of notes (NSMs not used for sorting of high
denomination notes, i.e. notes of denomination ₹100
and above, received over the counter or not used for
sorting notes remitted to chest / RBI)
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Master Circular - Disbursement of Government Pension by Agency Banks

Life Certificate- Issuance of Acknowledgement: Agency banks were instructed to mandatorily issue duly
signed acknowledgements. They were also advised to consider entering the receipt of life certificates in
their CBS and issue a system generated acknowledgement which would serve the twin purpose of
acknowledgement as well as real time updation of records.

Customer Service: All agency banks may issue instructions to their dealing branches to adhere to the
recommendations of the Prabhakar Rao Committee relating to pension payments.
Pension paying banks should compensate the pensioner for delay in crediting pension/ arrears thereof
at a fixed interest rate of 8 per cent per annum for the delay after the due date of payment and the
compensation shall be credited to the pensioner's account automatically without any claim from the
pensioner on the same day when the bank affords credit for revised pension/ pension arrears, in
respect of all delayed pension payments made since October 1, 2008.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Master Circular – Basel III Capital Regulations

Effective Date: The Basel III capital regulations were implemented in India with effect from April 1, 2013 and
have been fully implemented as on October 1, 2021. Banks have to comply with the regulatory limits and minima
as prescribed under Basel III capital regulations, on an ongoing basis.
S.No. Regulatory Capital As % to RWAs
(i) Minimum Common Equity Tier 1 Ratio 5.5
(ii) Capital Conservation Buffer (comprised of Common Equity) 2.5
(iii) Minimum Common Equity Tier 1 Ratio plus Capital 8.0
Conservation Buffer [(i)+(ii)]
(iv) Additional Tier 1 Capital 1.5
(v) Minimum Tier 1 Capital Ratio [(i) +(iv)] 7.0
(vi) Tier 2 Capital 2.0
(vii) Minimum Total Capital Ratio (MTC) [(v)+(vi)] 9.0
(viii) Minimum Total Capital Ratio plus Capital Conservation 11.5
Buffer [(vii)+(ii)]
 IMPORTANT RBI GUIDELINES Jan – sep 2024

CIMS Project Implementation - Submission of Statutory Returns (Form A, Form VIII and Form IX) on
CIMS Portal (15.04.2024)

Following the launch of Reserve Bank’s next generation data warehouse, viz., the Centralized Information
Management System (CIMS), RBI has decided to shift the submission of Form A (CRR reporting), Form
VIII (SLR reporting) and Form IX (Unclaimed Deposits) Returns from the eXtensible Business Reporting
Language (XBRL) Portal to the CIMS Portal. Banks shall submit the fortnightly Form A Return from the
Reporting Friday June 14, 2024, monthly Form VIII Return from May 2024 and the annual Form IX Return
from December 31, 2024 respectively on the CIMS Portal only. Banks shall continue to submit Form A &
Form VIII both on XBRL as well as CIMS portals concurrently till the date/month indicated above.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Master Direction – Reserve Bank of India (Asset Reconstruction Companies) Directions, 2024
• The provisions of these guidelines/ instructions shall apply to ARCs registered with the Reserve Bank of
India under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002.
An ARC shall commence business within six months from the date of grant of Certificate of Registration
by the Bank.
Net Owned Fund
• Net Owned Fund (NOF) for ARCs shall be minimum Rs.300 crore on an ongoing basis with effect from
October 11, 2022.Permissible Business
Enforcement of Security Interest
• ARCs are required to obtain, for the purpose of enforcement of security interest, the consent of secured
creditors holding not less than 60% of the amount outstanding to a borrower as against 75% hitherto.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Voluntary transition of Small Finance Banks (SFB) to Universal Banks

With the objective of bringing better clarity, the eligibility criteria for an SFB to transition
into a Universal bank will now be as follows:
• Scheduled status with a satisfactory track record of performance for a minimum period
of five years;
• Shares of the bank should have been listed on a recognised stock exchange
• Having a minimum net worth of ₹1,000 crore as at the end of the previous quarter
(audited)
• Meeting the prescribed CRAR requirements for SFBs
• Having a net profit in the last two financial years
• Having GNPA and NNPA of less than or equal to 3 percent and 1 percent respectively in
the last two financial years.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Instructions on Money Changing Activities

• Full Fledged Money Changers (FFMCs) / non-bank Authorised Dealers (ADs) Category-II
may obtain their normal business requirements of foreign currency notes from other
FFMCs and Authorized Dealers (ADs) in India

• Further, they are also required to keep balances in foreign currencies at reasonable levels
to avoid build- up of idle balances

• In this regard, it has been decided that from July 1, 2024, value of foreign currency notes
sold by FFMCs / non-bank ADs Category -II to the public for permitted purposes should not
be less than 75% of the value of foreign currency notes purchased from other FFMCs/ ADs,
on a quarterly basis.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Amendment to Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions,
2016

RBI has decided to revise the definition of bulk deposits. The term “Bulk Deposit” would now mean:

• Single Rupee term deposits of Rupees three crore and above for Scheduled Commercial Banks
(excluding RRBs) and Small Finance Banks.

• The previous limit was Rupees Two crore and above.

• Single Rupee term deposits of Rupees one crore and above for Local Area Banks as applicable in
case of Regional Rural Banks.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Online submission of Form A2: Removal of limits on amount of remittance

• AD Category-I banks and AD Category-II entities were permitted to allow submission of Form A2
through online mode by their customers, subject to certain conditions and limits.
• On a review, it is now decided by RBI that there shall not be any limit on the amount being
remitted on the basis of ‘online’ Form A2.
• Reporting of transactions in FETERS shall continue, as hitherto, by the Authorised Dealer banks.

Release of foreign exchange for Miscellaneous Remittances

• Authorized Dealers are permitted to release foreign exchange for any current account transaction,
on the basis of a simple letter containing basic information and subject to an upper limit of USD
25,000 or its equivalent.
• RBI has now decided that Authorized Dealers shall obtain Form A2 in physical or digital form for
all cross-border remittances irrespective of the value of transaction.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance
Scheme (LRS)
At present, remittances under LRS to IFSCs can be made only for:
Making investments in IFSCs in securities except those issued by entities/ companies’ resident in India
(outside IFSC) and Payment of fees for education to foreign universities or foreign institutions in IFSCs
for pursuing courses mentioned. For these permissible purposes, resident individuals can open
Foreign Currency Account (FCA) in IFSCs.

On a review, RBI has decided that Authorised Persons may facilitate remittances for all permissible
purposes under LRS to IFSCs for:
 Availing financial services or financial products as per the International Financial Services Centres
Authority Act, 2019 within IFSCs; and
 All current or capital account transactions, in any other foreign jurisdiction (other than IFSCs)
through an FCA held in IFSCs.
 For these permissible purposes, resident individuals can open Foreign Currency Account (FCA) in
IFSCs.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Reporting of Frauds to Law Enforcement Agencies (LEAs)

Banks shall immediately report the incidents of fraud to LEAs, subject to applicable laws, as indicated
below:
Category of Amount involved in the LEA to whom complaint should be Remarks
bank fraud lodged
Below ₹1 crore State / Union Territory (UT) Police

Private Sector / In addition to State/UT Police, Details of fraud are to be

Foreign Banks Serious Fraud Investigation Office reported to SFIO in Fraud
₹1 crore and above
(SFIO), Ministry of Corporate Affairs, Monitoring Return (FMR)
Government of India format

Public Sector (a) Below ₹6 crore State / UT Police

Banks / Regional
(b) ₹6 crore and above Central Bureau of Investigation (CBI)
Rural Banks
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Legal Audit of Title Documents

• In respect of Large Value Loan Accounts Banks shall subject the title
deeds and other related title documents in respect of all credit
facilities of ₹5 crore and above to periodic legal audit and re-
verification, till the loan is fully repaid.

• Specific to Small Finance Banks, Local Area Banks and Regional Rural
Banks, the threshold amount for periodic legal audit of title deeds
and other related title documents shall continue to be ₹1 crore.
 IMPORTANT RBI GUIDELINES Jan – sep 2024
Frequency of reporting of credit information by Credit Institutions to Credit Information
Companies

Credit information companies (CICs) and credit institutions (CIs) are presently directed to keep the
credit information collected/maintained by them updated regularly on a monthly basis or at such
shorter intervals as mutually agreed upon between the CI and the CIC.

• RBI has now directed that CICs and CIs shall keep the credit information collected/maintained by
them updated regularly on a fortnightly basis (i.e., as on 15th and last day of the respective
month) or at such shorter intervals as mutually agreed upon between the CI and the CIC.

• The fortnightly submission of credit information by CIs to CICs shall be ensured within seven (7)
calendar days of the relevant reporting fortnight.

• Further, CICs are required to ingest credit information data received from the CIs, as per their
data acceptance rules, within seven (7) calendar days of its receipt from the CIs. This is now
being revised to five (5) calendar days of its receipt. These instructions shall be effective from
January 1, 2025.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Processing of e-mandates for recurring transactions (22.08.2024)

The e-mandate framework prescribed that the issuer shall send a pre-debit
notification to the customer at least 24 hours prior to the actual charge / debit to
the account.

RBI has decided to include auto-replenishment of FASTag and NCMC, as and when
the balance falls below a threshold set by the customer, under the e-mandate
framework.

Payments for auto-replenishment, since they are recurring in nature but without
any fixed periodicity, will be exempt from the requirement of pre-debit
notification.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Review of Extant Instructions – Withdrawal of Circulars

The nomenclature “No frills account” has been discontinued, and the extant provisions of Basic Savings Bank
Deposit Account (BSBDA) as normal banking service for all customers is in vogue.

Liberalized Remittance Scheme (LRS) for Resident Individuals- Discontinuation of Reporting of

monthly return
AD Category-I banks were required to furnish information on the number of applications received and total
amount remitted under LRS on a monthly basis in the Centralized Information Management System (CIMS).
On a review, RBI has decided to discontinue the requirement for submission of LRS monthly return by AD
Category-I banks. Accordingly, from the reporting month of September 2024, AD Category-I banks shall not
submit LRS monthly return (Return code : R089).

AD Category-I banks, henceforth, will be required to upload only transaction-wise information under LRS
daily return (CIMS return code: R010) at the close of business of the next working day on CIMS (URL:
https://sankalan.rbi.org.in). In case no data is to be furnished, AD Category-I banks shall upload a ‘NIL’
report.
 IMPORTANT RBI GUIDELINES Jan – sep 2024

Gold loans - Irregular practices observed in grant of loans against pledge of gold ornaments
and jewellery
• Reserve Bank has recently carried out a review of the adherence to prudential guidelines as
well as practices being followed by Supervised Entities (SEs) with regard to loans against
pledge of gold ornaments and jewellery.
• The review indicates several irregular practices in this activity. The major deficiencies
include
• Shortcomings in use of third parties for sourcing and appraisal of loans;
• Valuation of gold without the presence of the customer;
• Inadequate due diligence and lack of end use monitoring of gold loans;
• Lack of transparency during auction of gold ornaments and jewellery on default by the
customer;
• Weaknesses in monitoring of LTV
• Incorrect application of risk-weights
 GOLD LOAN
Major Changes in Guidelines on Gold Loan under Current Loan Policy 2024-25 valid till 31.12.2024

• No new gold loan facilities are to be sanctioned to the Staff members

• Staff may avail his / her gold loan /s from other Banks / FI by obtaining NOC from our Bank

• For guidelines on staff loans to Officers / Employees respective guidelines as issued by HRD, CO from time to time shall
be referred

• Retired staff of our bank and his / her relative is to be treated on par with general public

• Declaration of Bonafide Ownership - while accepting the ornaments for pledge, Branch shall satisfy that the intending
borrowers have complied with KYC norms and ownership is in line with their profile
• Discontinuation of Gold loan against 18 Karat Gold jewellery - Fresh gold loans against 18 Karat gold jewellery is
discontinued forthwith. However existing loans will be continued till closure
 GOLD LOAN
Major Changes in Guidelines on Gold Loan under Current Loan Policy 2024-25 valid till 31.12.2024

• Discontinuation of Gold loan against 18 Karat Gold jewellery - Fresh gold loans against 18 Karat gold jewellery is
discontinued forthwith. However existing loans will be continued till closure

• Branches under Seven Zones ZO Delhi, ZO Chandigarh, ZO Varanasi, ZO Lucknow, ZO Ranchi, ZO Bhopal and ZO Jaipur
are permitted to finance against Hallmark Gold jewellery below 22 Karat but not below 20 Karat – Specific T & C

• Gold Loan to Empanelled Jewel Appraiser - May avail gold loans in his/her name at any branch other than the branch
from where he / her is empanelled and ornaments shall be appraised / re-apprised by other empanelled appraiser.
The total number of gold loan accounts outstanding for a single Cust. ID should not exceed 5 accounts

• Hallmarking and purity standards - Hallmarking of gold jewellery has become mandatory, Central Govt. vide notification
dt. 01.04.2023, has issued instructions not to sell gold jewellery without having 6digit HUID (Hallmark Unique
Identification Digit) number

• Periodical Gold Loan rates excel sheet has been uploaded in UBINET - Rates & Charges - Gold Loan Vertical-Gold Loan
rates
 GOLD LOAN
Major Changes in Guidelines on Gold Loan under Current Loan Policy 2024-25 valid till 31.12.2024

• Specially minted gold coins up to 50 grams sold by any Bank (24 Karat fineness) shall be treated as gold ornaments for
loan assessment purpose

Insurance cover - coverage for Gross weight of the ornaments where fire, riot, strike, burglary, house breaking, theft,
robbery or hold up and Natural calamities
* Branches should ensure strict compliance of norms / procedural guidelines on safe keeping / handling of pledged
jewellery

• Recording of reappraisal - Seating arrangement for jewel appraiser to be arranged in such a way that the reappraisal
work is under the surveillance of CCTV Camera

• Empanelment of appraiser - Minimum age 30 years and Maximum age 65 Years at the time of empanelment
• Services of the existing appraisers with satisfactory track record can be extended up to the age of 65 years after
annual review