Reserve Bank of India

30.05.2019

Banking

Sovereign Gold Bond Scheme 2019-20 - Series I/II/III/IV - Operational Guidelines

MANU/IDMC/0001/2019

This has reference to the GoI notification F.No.4(7)-W&M/2019 dated May 30, 2019 and RBI circular IDMD.CDD.No.3392/14.04.050/2018-19 dated May 30, 2019 on the Sovereign Gold Bonds. FAQs in this regard have been placed on our website. Operational guidelines with regard to this scheme are given below:

1. Application

Application forms from investors will be received at branches during normal banking hours on the weeks of subscription. Receiving Offices need to ensure that the application is complete in all respects as incomplete applications are liable to be rejected. Relevant additional details may be obtained from the applicants, where necessary. The Receiving Offices may make arrangements to enable the investors to apply online, in the interest of better customer service.

2. Joint holding and nomination

Multiple joint holders and nominees (of first holder) are permitted. Necessary details may be obtained from the applicants as per practice. An individual Non - resident Indian may get the security transferred in his/her name on account of he/she being a nominee of a deceased investor provided that:

i. the Non-Resident investor shall need to hold the security till early redemption or till maturity; and

ii. the interest and maturity proceeds of the investment shall not be repatriable.

3. Know-Your-Customer (KYC) requirements

Every application must be accompanied by the 'PAN details' issued by the Income Tax Department to the investor(s). It may be ascertained from the investor, if he/she has made a previous investment in SGBs or IINSC-C and hence in possession of an Investor ID. If so, the investments may be made under the unique Investor ID only.

4. Cancellation

Cancellation of application is permitted till the closure of the issue, i.e. until Friday of the particular week of subscription. Part cancellation of submitted request for purchase of gold bonds is not permitted.

5. Lien marking

As the bonds are government securities, lien marking, etc. will be as per the extant legal provisions of Government Securities Act, 2006 and rules framed there under. The lien shall be marked by the Receiving Offices/Public Debt Offices of RBI in case of financing by agencies other than the Receiving Offices.

6. Agency arrangement

Receiving Offices may engage NBFCs, NSC agents and others to collect application forms on their behalf. Banks may enter into arrangements or tie-ups with such entities. Commission for distribution shall be paid at the rate of Rupee one per hundred of the total subscription received by the Receiving Offices on the applications received and Receiving Offices shall share at least 50% of the commission so received with the agents or sub-agents for the business procured through them.

7. Processing through RBI's e-Kuber system

Sovereign Gold Bonds will be available for subscription at the Receiving Offices through RBI's e- Kuber system. The e-Kuber system can be accessed either through INFINET or Internet. The Receiving Offices need to enter the data or carry out bulk upload for the subscriptions received by them. They may ensure accuracy of entry of data to prevent occurrence of any inadvertent errors. An immediate confirmation will be provided to them for receipt of application. In addition, a confirmation scroll will be provided for file uploads to enable the Receiving Offices to update their database. On the date of allotment, Certificates of Holding will be generated for all the subscriptions in the name of the sole/principal holder. The Receiving Offices can download the same and take printouts. The Certificates of Holding will also be sent through e-mail to the investors who have provided their email address. The securities will be credited in their demat accounts by the depositories in due course subject to matching of particulars furnished in the application with the depositories' records.

8. Printing Certificates of Holding

Holding Certificate needs to be printed in colour on A4 size 100 GSM paper.

9. Servicing and follow up

Receiving Offices will "own" the customer and provide necessary services with regards to this bond e.g. update contact details, receive requests for premature encashment, etc. Receiving Offices will be required to preserve applications till the bonds are matured and are repaid.

10. Tradability

The Bonds shall be eligible for trading on a date notified by the Reserve Bank of India. (It may be noted that only bonds held in demat form with depositories can be traded in stock exchanges)

11. Contact details

Any queries/clarifications may be e-mailed to the following:

(a) Sovereign Gold Bond related: Please click here to send email.

(b) IT related: Please click here to send email.

Tags : Scheme Gold Bond Series

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Reserve Bank of India

30.05.2019

Banking

RBI hosts Symposium on 'Developing Vibrant Capital Markets in Emerging Market Economies'

MANU/RPRL/0102/2019

The Reserve Bank of India (RBI) on May 29, 2019 held a Symposium on 'Developing Vibrant Capital Markets in Emerging Market Economies' at its Central Office in Mumbai.

Shri Shaktikanta Das, Governor in his opening remarks highlighted the falling saving and investment rates in the economy and the role that the capital markets can play in arresting this trend. He pointed out that capital markets enable economic agents to pool, price, share and exchange risks. If the markets are liquid, price discovery is efficient and intermediation costs are low, the saving habit in an economy improves. Capital markets also bring long-term benefits from reallocating financial resources efficiently. This ultimately lowers incremental capital-output ratios in the economy and helps boost growth.

Dr. Ryan Banerjee, a senior economist at the Bank for International Settlements (BIS) presented the highlights of the report on 'Establishing Viable Capital Markets' of the Committee on the Global Financial System (CGFS) that was co-chaired by Dr. Viral V. Acharya of the RBI and Dr. Li Bo of the People's Bank of China: https://www.bis.org/publ/cgfs62.pdf

Dr. Acharya, Deputy Governor, stated that a stable macro-economic environment had been a key driver for growing capital market in India. He suggested that time has now come to enhance market autonomy, strengthen the legal framework for investor protection, and also to make the regulatory regime more efficient and effective so as to deepen domestic institutional base, undertake bi-directional opening to international participation while ensuring macro-prudential stability, and develop complementary markets and supporting market infrastructure.

At the symposium, a panel discussion was held on 'What more will it take for Capital Markets in Emerging Markets and Advanced Economies to converge in a Globalised World'. Panelists Dr. John Clark, Federal Reserve Bank of New York; Shri Ridham Desai, Morgan Stanley; Dr. Ryan Banerjee, BIS; Shri T. Rabi Shankar, RBI and Dr. Mridul Saggar, RBI (moderator) were of the view that despite rapid strides by the Emerging Markets, further policy steps as well as a greater autonomous drive by market participants themselves was needed if the markets were to converge with those in matured markets. Their recommendations covered equity, private and government bond markets.

Tags : Capital Markets Market Economies Symposium

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Telecom Regulatory Authority of India

30.05.2019

Media and Communication

TRAI issues Consultation Paper on "Review of the Regulatory Framework for Interconnection"

MANU/TRAI/0046/2019

The Telecom Regulatory Authority of India (TRAI) has today issued the Consultation Paper on "Review of the Regulatory Framework for Interconnection".

2. Interconnection is the lifeline of telecommunication services. Subscribers of telecommunication services cannot communicate with each other or connect with services they require unless necessary interconnection arrangements are in place. Availability of effective and expeditious interconnection plays an important role in the growth of the telecommunication services sector. In order to ensure that interconnection arrangements are finalized in timely manner, a number of issues are required to be agreed upon by TSPs or determined by the sector regulator.

3. TRAI had issued "The Telecommunication Interconnection Regulation, 2018 (1 of 2018)" dtd 01.01.2018 on Interconnection agreement, bank Guarantee, provisioning & augmentation of port at POIs, interconnection charges, disconnection of POIs and financial disincentive on interconnection matters. However, on the issue of review of the Level of Interconnection the Authority observed that there is a need for further deliberations. The present Consultation paper is proposed to address the issue of fixed to fixed Point of Interconnection.

4. The Consultation Paper has been placed on TRAI's website. The Authority would take a decision on the subject matter after considering the views of the stakeholders. Written Comments on the issues raised in the Consultation Paper are invited from the stakeholders by 27.06.2019 and Counter-Comments by 11.07.2019.

5. The Comments and Counter-Comments may be sent, preferably in electronic form at ja.ns11@trai.gov.in with a copy to div.ns11@trai.gov.in. Comments and counter comments will be posted on TRAI's website. For any clarification/information, Shri S. K. Singhal, Advisor (BB&PA) may be contacted at Tel/Fax No. +91-11-23221509.

Tags : Consultation Paper Issuance Review Regulatory Framework

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Press Information Bureau

29.05.2019

Civil

Fastags can Now be Purchased Online through Amazon

MANU/PIBU/0558/2019

FASTags are now available on e-commerce platform Amazon. These were earlier launched by IHMCL, a company promoted by NHAI, in January 2019. NHAI FASTag is a 'bank-neutral' FASTag i.e. no bank is pre-assigned to the FASTag at the time of purchase by customer from a Point-of-Sale or Online and offers the flexibility to customer to link the FASTag with their existing bank account by using My FASTag Mobile app, currently available on Google Play Store.

The online NHAI FASTag has been conceived in a DIY (Do-It-Yourself) concept wherein a customer can self-activate it by entering customer and vehicle details in My FASTag mobile app. Thereafter, the customer will have to link the tag to an existing bank account of his/her choice. Currently, the bank linking facility is available for 7 member banks viz. SBI, ICICI Bank, Axis bank, HDFC bank, IndusInd Bank, Paytm Payments bank and Equitas Small Finance Bank. The online NHAI FASTag shall be available for VC-4 i.e. Car/Jeep/Van only for now.

IHMCL is focused on enhancing the user experience of FASTag customers and is constantly working on new strategies to ensure efficient and delightful tolling experience. FASTag is also available at selected petrol pumps in Delhi NCR and identified Common Service Centers (CSCs) and we are also in process of expanding the outreach to other Metros cities. This online sale initiative is an important achievement for IHMCL and will ensure easy availability of FASTag at the doorsteps of the customers.

Currently FASTags are also being issued by 22 certified banks through various channels such as Point-of-Sale at NH toll plazas, selected bank branches, etc. However, these FASTags issued by these certified banks does not offer option to customer for linking with existing bank account of his/her choice. The online availability of NHAI FASTag by IHMCL will eventually help enhanced adoption of FASTag program by increasing user convenience and offering seamless digital payments of toll and thereby saving time, money and fuel. Further, the digital payments of toll shall enhance transparency and promote cashless transactions, converting India into less-cash society supporting the Digital India Programme.

Tags : Fastags Online Amazon

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Reserve Bank of India

29.05.2019

Banking

Amendment to Master Direction (MD) on KYC

MANU/RMIC/0056/2019

1. Government of India, vide Gazette Notification G.S.R. 108(E) dated February 13, 2019, has notified amendments to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. Further, an Ordinance, "Aadhaar and other Laws (amendment) Ordinance, 2019", has been notified by the Government amending, inter alia, the Prevention of Money Laundering Act, 2002.

2. Important changes carried out in the Master Direction in accordance with the aforementioned amendments are listed hereunder:

a) Banks have been allowed to carry out Aadhaar authentication/ offline-verification of an individual who voluntarily uses his Aadhaar number for identification purpose. (Section 16 of the amended MD on KYC)

b) 'Proof of possession of Aadhaar number' has been added to the list of Officially Valid Documents (OVD) with a proviso that where the customer submits 'Proof of possession of Aadhaar number' as OVD, he may submit it in such form as are issued by the Unique Identification Authority of India (UIDAI). (Section 3 of the amended MD)

c) For customer identification of "individuals":

i. For individual desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016, the bank shall obtain the customers Aadhaar and may carry out its e-KYC authentication based on his declaration that he is desirous of receiving benefit/subsidy under the Aadhaar Act, 2016. (Section 16 of the amended MD)

ii. For non-DBT beneficiary customers, the Regulated Entities (REs) shall obtain a certified copy of any OVD containing details of his identity and address along with one recent photograph. (Section 16 of the amended MD)

d) REs shall ensure that the customers (non-DBT beneficiaries) while submitting Aadhaar for Customer Due Diligence, redact or blackout their Aadhaar number in terms of sub-rule 16 of Rule 9 of the amended PML Rules. (Section 16 of the amended MD)

e) REs other than banks may identify a customer through offline verification under the Aadhaar Act with his/her consent. (Section 16 of the amended MD)

f) In case OVD furnished by the client does not contain updated address, certain deemed OVDs for the limited purpose of proof of address can be submitted provided that the OVD updated with current address is submitted within 3 months. (Section 3(a) ix of the amended MD)

g) For non-individual customers, PAN/Form No. 60 of the entity (for companies and Partnership firms - only PAN) shall be obtained apart from other entity related documents. The PAN/Form No. 60 of the authorised signatories shall also be obtained. (Section 30-33)

h) For existing bank account holders, PAN or Form No. 60 is to be submitted within such timelines as may be notified by the Government, failing which account shall be subject to temporary ceasing till PAN or Form No. 60 is submitted. However, before temporarily ceasing operations for an account RE shall give the customer an accessible notice and a reasonable opportunity to be heard. (Section 39 of the amended MD)

4. Further, additional certifying authorities for certifying the OVDs of Non-Resident Indian (NRI) and Person of Indian Origin (PIO) customers have been specified in section 3(a)(v) of the Master Direction.

5. The Master Direction on KYC dated February 25, 2016, is hereby updated to reflect the changes effected by the above amendments and shall come into force with immediate effect.

Tags : Amendment Master Direction KYC

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Ministry of Consumer Affairs, Food and Public Distribution

29.05.2019

Civil

Bureau of Indian Standards (Amendment) Rules, 2019

MANU/CAFF/0095/2019

In exercise of the powers conferred by section 38 of the Bureau of Indian Standards Act, 2016 (11 of 2016), the Central Government hereby makes the following rules to further amend the Bureau of Indian Standards Rules, 2018, namely:-

1. (1) These rules may be called the Bureau of Indian Standards (Amendment) Rules, 2019.

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

2. In the Bureau of Indian Standards Rules, 2018, in rule 6, in sub-rule (2),-

(a) in opening paragraph, for the words "Chairman and ten other members", the words "Chairman and eleven other members" shall be substituted;

(b) in clause (ii), the words "or Joint Secretary" shall be omitted;

(c) after clause (ii), the following clause shall be inserted, namely:-

"(iia) Joint Secretary to the Government of India in the Ministry or Department having administrative control of the Bureau".

Tags : Rules Amendment Bureau

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