Notifications & Circulars

Reserve Bank of India

29.02.2024

Banking

Financial Action Task Force (FATF) – Calls for action for High risk and other monitored jurisdictions

MANU/RPRL/0135/2024

The Financial Action Task Force (FATF) vide public document 'High-Risk Jurisdictions subject to a Call for Action' - February 2024, has called on its members and other jurisdictions to refer to the statement on Democratic People's Republic of Korea (DPRK) and Iran adopted in February 2020 which remains in effect. Further, Myanmar was added to the list of High-Risk Jurisdictions subject to a Call for Action in the October 2022 FATF plenary and FATF has called on its members and other jurisdictions to apply enhanced due diligence measures proportionate to the risk arising from Myanmar. When applying enhanced due diligence measures, countries have been advised to ensure that flows of funds for humanitarian assistance, legitimate NPO activity and remittances are not disrupted. The status of Myanmar in the list of countries subject to a call for action, remains unchanged.

FATF had earlier identified the following jurisdictions as having strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing and had placed the jurisdictions under Increased Monitoring, which had developed action plan with the FATF to deal with them. These jurisdictions were: Bulgaria, Barbados, Burkina Faso, Cameroon, Democratic Republic of the Congo, Croatia, Gibraltar, Haiti, Jamaica, Mali, Mozambique, Nigeria, Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Türkiye, Uganda, United Arab Emirates, Vietnam and Yemen. As per the February 23, 2024 FATF public statement, Kenya and Namibia have been added to the list of Jurisdictions under Increased Monitoring while Barbados, Gibraltar, Uganda and UAE have been removed from this list based on review by the FATF.

FATF plenary releases documents titled "High-Risk jurisdictions subject to a Call for Action" and "Jurisdictions under Increased Monitoring" with respect to jurisdictions that have strategic AML/CFT deficiencies as part of the ongoing efforts to identify and work with jurisdictions with strategic Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) deficiencies. This advice does not preclude the regulated entities from legitimate trade and business transactions with these countries and jurisdictions mentioned there.

About FATF

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures globally. The FATF's decision making body, the FATF Plenary, meets three times a year and updates these statements, which may be noted.

Tags : FATF High-Risk Jurisdictions

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Reserve Bank of India

28.02.2024

Banking

Modification in Master Directions Prudential Norms on Capital Adequacy for Local Area Banks (Directions), 2021 and Master Circular - Basel III Capital Regulations dated May 12, 2023

MANU/RMIC/0024/2024

1. Please refer to Master Circular - Basel III Capital Regulations dated May 12, 2023, and Master Direction - Prudential Norms on Capital Adequacy for Local Area Banks (Directions), 2021 dated October 26, 2021 ('capital adequacy guidelines').

2. As you are aware, the Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2023 dated September 12, 2023 (hereinafter referred as 'MD on Investment') inter alia provides a clearly identifiable trading book under 'Held for Trading (HFT)' accounting sub-classification and introduces AFS-reserve which would be part of regulatory capital. In view of the changes cited above, it has been decided to amend the capital adequacy guidelines in alignment with the MD on Investment.

3. Accordingly, the provisions of Master Circular - Basel III Capital Regulations have been modified as provided in Annex 1.

4. It may be noted that 'Draft Guidelines on Minimum Capital Requirements for Market Risk - under Basel III' providing inter alia 'Definition of trading book' and 'Market Risk capital Requirements - Simplified Standardised Approach' were released on February 17, 2023 for public comments. While the revised definition of trading book for the purpose of capital adequacy will be as provided in Annex I of MD on Investment, the final guidelines on 'Market Risk Capital Requirements - Simplified Standardised Approach' will be implemented at a later date and detailed guidelines will be issued separately.

5. Considering the transition to 'Market Risk Capital Requirements - Simplified Standardised Approach', the extant market risk capital requirements have also been recalibrated by introducing intermediate scalers. Banks should keep this in view while reviewing their strategies and capital planning measures.

6. Further, the provisions of Master Direction - Prudential Norms on Capital Adequacy for Local Area Banks (Directions), 2021 have been modified.

Applicability

7. These instructions shall be applicable from April 1, 2024 to all Commercial Banks (excluding Regional Rural Banks).

Tags : Capital Adequacy Guidelines Modification

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Ministry of Road Transport and Highways

28.02.2024

Motor Vehicles

Central Motor Vehicles (Third Amendment) Rules, 2024

MANU/RDTH/0009/2024

WHEREAS, the draft rules further to amend the Central Motor Vehicles Rules, 1989, was published, as required by sub-section (1) of section 212 of the Motor Vehicles Act, 1988 (59 of 1988), vide notification of the Government of India in the Ministry of Road Transport and Highways number G.S.R. 910(E), dated the 22nd December, 2023, in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), inviting objections and suggestions from all persons likely to be affected thereby before the expiry of the period of thirty days from the date on which copies of the Gazette containing the said notification were made available to public.

AND WHEREAS, copies of the Gazette containing the said notification were made available to the public on the 22nd December, 2023;

AND WHEREAS, no objections and suggestions were received from the public in respect of the said draft rules

NOW, THEREFORE, in exercise of the powers conferred by sub-section(1) of section 110 of the Motor Vehicles Act, 1988 (59 of 1988), the Central Government hereby makes the following rules further to amend the Central Motor Vehicles Rules, 1989, namely:-

1. Short title and commencement.--

(1) These rules may be called the Central Motor Vehicles (Third Amendment) Rules, 2024.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Central Motor Vehicle Rules, 1989, in rule 115A, in sub-rule (9), in Table 2, under the heading "Applicable with effect from", for the figures, "2024" the figures "2026" shall be substituted.

Tags : Rules Amendment Time period Expiry

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Press Information Bureau

27.02.2024

Civil

PFRDA notifies amendments to Retirement Adviser (RA) Regulations

MANU/PIBU/0208/2024

The Pension Fund Regulatory and Development Authority (PFRDA) has notified the Retirement Adviser (RA) (Amendment) Regulations, 2023 on 20.02.2024.

The amendments to Retirement Adviser Regulations simplify the provisions related to eligibility criteria, timelines to expedite the process of registration and removal of the requirement of submission of security deposits with an objective of Ease of Doing Business.

The notable amendments inter alia include

i. Non-Individual applicants regulated by other financial regulators are made eligible;

ii. Security deposit is not required;

iii. Applications to be disposed of within 30 days.

The above simplifications are in line with Union Budget 2023-24 announcement to review regulations to reduce the cost of compliance and enhance the Ease of Doing Business.

Tags : Amendments Retirement Adviser Regulations

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Press Information Bureau

27.02.2024

Law of Medicine

NIA signs MoU with Department of Thai Traditional and Alternative Medicine of Government of Thailand

MANU/PIBU/0207/2024

The National Institute of Ayurveda, Jaipur under the Ministry of Ayush of the Government of India and Department of Thai Traditional and Alternative Medicine of the Ministry of Public Health of the Government of the Kingdom of Thailand signed a Memorandum of Understanding (MoU) on the establishment of an Academic Collaboration in Ayurveda and Thai Traditional Medicine in New Delhi, India at 10th India-Thailand Joint Commission Meeting held at Hyderabad House, New Delhi today. Shri B.K. Singh, Joint Secretary, Ministry of Ayush, Government of India, and Dr. Taweesin Visanuyothin, Director General, Department of Thai Traditional and Alternative Medicine Thailand signed the MoU in the presence of other dignitaries during the event.

The initiative has been taken to promote, facilitate, and develop academic collaboration in the field of Ayurveda and Thai Traditional Medicine based on equality and mutual benefit of the Participants. This MoU will facilitate the exchange of experts for research and training programs, academic and technical activities, and conducting research, exchange of information, technologies, and best practices of Traditional Medicine.

The Participants will take necessary steps to encourage and promote cooperation in facilitating academic and technical activities and conducting research for mutual benefits. Exchanging and accommodating experts, teaching instructors, practitioners, and students for research and training programmes. Exchanging knowledge, experiences, information, technologies, and best practices. Providing scholarships for education. Promoting the participation of experts in conferences, workshops, seminars, and events held by the Participants and other important areas of cooperation, with the mutual consent of the Participants.

During implementation of this MOU, the Participants, within their capacities will support each other with mutual cooperation and collaborative activities on the basis of equality and mutual benefits by facilitating training courses in Thailand and India, conducting collaborative research studies on diseases of common interest to both Participants and visits and exchanges of policy makers, academics, experts, researchers, practitioners, and students. NIA and Departement of Thai Tradtional and Alternative Medicine, Thailand will share information on regulatory mechanisms, best practice, guidelines of practice and courses of study and training; and organize conferences/meetings alternately in India and Thailand and reviewing the progress of the implementation of the MOU and the evaluation of the results of collaborative programmes.

Tags : MoU Thai Traditional Medicine Signing of

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Securities and Exchange Board of India

26.02.2024

Capital Market

SEBI Issues Advisory Against Fraudulent Trading Schemes claiming to be offered to Indian residents by FPIs

MANU/SPRL/0003/2024

The Securities and Exchange Board of India (SEBI) has been receiving a number of complaints regarding fraudulent trading platforms which falsely claim or suggest affiliation with SEBI-registered Foreign Portfolio Investors (FPIs) and claiming to offer trading opportunities through FPI or Foreign Institutional Investor (FII) Sub-accounts or Institutional Accounts with special privileges.

Fraudulent Practices Identified

Fraudsters are enticing victims through online trading courses, seminars, and mentorship programs in the stock market, leveraging social media platforms like WhatsApp or Telegram, as well as live broadcasts. Posing as employees or affiliates of SEBI-registered FPIs, they coax individuals into downloading applications that purportedly allow them to purchase shares, subscribe to IPOs, and enjoy "Institutional account benefits"-all without the need for an official trading or Demat account. These operations often use mobile numbers registered under false names to orchestrate their schemes.

Clarification for Investors

It is important for the public to understand that the FPI investment route is unavailable to resident Indians, with limited exceptions as outlined in the SEBI (Foreign Portfolio Investors) Regulations, 2019. There is no provision for an "Institutional Account" in trading, and direct access to the equities market requires investors to have a trading and Demat account with a SEBI-registered broker/trading member and DP respectively. SEBI has not granted any relaxations to FPIs regarding securities market investments by Indian investors.

Investor Advisory

SEBI urges investors to exercise caution and to steer clear of any social media messages, WhatsApp groups, Telegram channels, or apps claiming to facilitate stock market access through FPIs or FIIs registered with SEBI. Such schemes are fraudulent and do not have SEBI's endorsement.

Tags : Advisory Trading Schemes Frauds

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