2 August 2021


Notifications & Circulars

Reserve Bank of India

28.07.2021

Banking

Access for non-banks to centralised payment systems

MANU/RMIC/0101/2021

1. A reference is invited to Paragraph 9 of the Statement on Developmental and Regulatory Policies dated April 07, 2021 wherein it was announced that the Reserve Bank shall encourage participation of non-banks in Reserve Bank of India-operated Centralised Payment Systems (CPS) viz. Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems, in a phased manner. A reference is also invited to the Master Directions on Access Criteria for Payment Systems dated January 17, 2017 wherein Reserve Bank had prescribed criteria for access to CPS.

2. Direct access for non-banks to CPS lowers the overall risk in the payments ecosystem. It also brings advantages to non-banks like reduction in cost of payments, minimising dependence on banks, reducing the time taken for completing payments, eliminating the uncertainty in finality of the payments as the settlement is carried out in central bank money, etc. The risk of failure or delay in execution of fund transfers can also be avoided when the transactions are directly initiated and processed by the non-bank entities.

3. On a review of extant arrangements and after detailed discussions with Payment System Providers (PSPs), it is advised that, in the first phase, authorised non-bank PSPs, viz. PPI Issuers, Card Networks and White Label ATM Operators shall be eligible to participate in CPS as direct members as per the approach presented in the Annexure hereto.

4. The Master Directions on Access Criteria for Payment Systems dated January 17, 2017 are also being modified accordingly. For operational and user convenience, Reserve Bank has placed a set of FAQs on the subject on its website.

5. These instructions are issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007) and come into effect from the date of this circular.

Tags : Access Non-banks CPS

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Reserve Bank of India

28.07.2021

Banking

RBI imposes monetary penalty on Axis Bank Limited

MANU/RPRL/0102/2021

The Reserve Bank of India (RBI) has imposed, by an order dated July 28, 2021, a monetary penalty of Rs. 5.00 crore (Rupees Five crore only) on Axis Bank Limited (the bank) for contravention of / non-compliance with certain provisions of directions issued by RBI on 'Strengthening the Controls of Payment Ecosystem between Sponsor Banks and SCBs/UCBs as a Corporate Customer' dated May 9, 2019, 'Cyber Security Framework in Banks' dated June 2, 2016, 'Reserve Bank of India (Financial Services provided by Banks) Directions, 2016' dated May 26, 2016 (Updated as on September 25, 2017), 'Financial Inclusion- Access to Banking Services - Basic Savings Bank Deposit Account' dated August 10, 2012 and 'Frauds - Classification and Reporting' dated July 02, 2012. The penalty has been imposed in exercise of powers vested in RBI under the provisions of section 47 A (1) (c) read with section 46 (4) (i) of the Banking Regulation Act, 1949 (the Act).

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The statutory Inspections for Supervisory Evaluation (ISE) of the bank were conducted by RBI with reference to its financial position as on March 31, 2017 (ISE 2017), March 31, 2018 (ISE 2018) and March 31, 2019 (ISE 2019). The examination of (i) the Risk Assessment Reports pertaining to ISE 2017, ISE 2018 and ISE 2019, (ii) the report of scrutiny carried out by RBI in the backdrop of the incident relating to a fraud and related correspondence thereto, and (iii) the incident report submitted by the bank in June 2020 relating to a few suspected transactions and related correspondence, revealed, inter-alia, contravention of / non-compliance with the above-mentioned directions issued by RBI. In furtherance to the same, notices were issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions, as stated therein.

After considering the bank's replies to the notices, oral submissions made during the personal hearing and examination of additional submissions made by the bank, RBI came to the conclusion that the charges of non-compliance with/contravention of the aforesaid RBI directions were substantiated and warranted imposition of monetary penalty on the bank, to the extent of contravention of / non-compliance with the aforesaid directions.

Tags : Penalty Imposition Axis Bank

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Ministry of Commerce and Industry

28.07.2021

Customs

Issuance of export authorisation for SCOMET items from new online restricted exports IT module with effect from 5th August, 2021

MANU/DGFT/0093/2021

1. Reference is invited to Trade Notice No. 20 dt. 19.02.2016 vide which a module for filing online applications for SCOMET Items to DGFT (HQ) was made operational. Further attention is invited to Trade Notice No. 20 dated 06.07.2018 where issuance of export authorisation/licence for export of SCOMET Items was informed for these to be handled at DGFT(HQ).

2. As part of IT Revamp of its exporter/importer related services, this Directorate now introduces a new online module for filing of electronic, paperless applications for Export Authorizations for SCOMET Items with effect from 05.08.2021. All applicant exporters seeking export authorization for SCOMET items are advised to apply online by navigating to the DGFT website (https://www.dgft.gov.in)-> Services-> Export Management Systems->SCOMET.

3. Accordingly, applications for issuance of export authorization of SCOMET items as well as amendment/re-validation thereof will need to be submitted online as per the above link. The SCOMET Cell, DGFT (Hq) will continue to be nodal point for all issues relating to SCOMET and SCOMET authorizations will continue to be issued from DGFT HQ, Udyog Bhawan, New Delhi through the New Online Module w.e.f. 05.08.2021.

4. The industry may note that all the existing pending applications (as on 05.08.2021) will be automatically migrated to this new system and will be processed as usual at DGFT(HQ).

5. Further the following processes will also be made available online as part of this new SCOMET Module:

(i) Authorisation for Site Visit by the foreign entity(ies) wants to the Premises of the Indian Manufacturer/exporter;

(ii) type of IEC to check production processes for SCOMET Export Items; and

(iii) Post Reporting of Export of SCOMET Items, Software/Technology in following cases:

a. Export of chemicals permitted to specified countries without authorisation

b. repair and return of imported SCOMET items after repair abroad

c. return of SCOMET items (imported/indigenous) after demo/display/exhibition/RFP/RFQ/tender etc, abroad

d. Stock and Sale

e. Global Authorisation for Intra-company Transfer (GAICT)

f. Others, if mandated in export authorisations

6. This issues with the approval of the Competent Authority.

Tags : Issuance Export authorisation SCOMET items

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Ministry of Commerce and Industry

28.07.2021

Customs

Foreign Trade Policy 2015-2020-Introduction of online deemed exports application module

MANU/DGFT/0094/2021

1. The members of trade are hereby informed that this Directorate is introducing an online Deemed Exports Module on the DGFT website as a part of IT Revamp for receiving applications under the Chapter 7 of FTP 2015-20.

2. Henceforth, the following applications are required to be submitted online through the importer/exporter's dashboard on the DGFT Website:

i. Refund of Terminal Excise Duty (TED)

ii. Grant of Duty Drawback as per AIR and

iii. Fixation of Brand Rate for Duty Drawback

3. The members of trade can login to the portal, fill in the requisite details in the form, upload the necessary documents and submit the application after paying requisite fee. The system will generate a file number which can be used for tracking purposes through the portal. The RAs would issue online deficiency letters calling for any additional information/document required and the exporter would be able to reply to the deficiency letters online only. However, the applicants will have to submit the corresponding supporting physical documents as prescribed under ANF-7A to concerned RAs within 7 days of online submission of such applications for processing of the applications at RAs.

4. Please note that this new application Module will cater to new applications filed in this regard by the applicants and old/legacy physical applications submitted earlier manually will continue to be processed manually by concerned RAs.

5. The members of trade can file application in e-TED/DBK module through following navigation:

https//dgft.gov.in>Deemed Exports to access the new e-module.

Tags : Introduction Exports application Online

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Press Information Bureau

27.07.2021

Banking

Measures taken to facilitate digital banking

MANU/PIBU/3014/2021

The Government has taken a number of steps to facilitate digital banking, doorstep banking services and digital lending platforms. This was stated by Union Minister of State for Finance Dr. Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha today.

Giving details of the steps, the Minister stated that these include, inter-alia, the following:

1. Initiation of digital lending has been made contactless through PSB loans in 59 minutes.com, using triangulation of credit bureau, income-tax and goods and services tax (GST) data, to provide online in principle approval for MSME loans.

2. Online bill discounting for MSMES has been enabled on a competitive basis through Public Sector Banks (PSBs) onboarding onto the Trade Receivables Discounting System (TReDS) platform and the proportion of online discounted bills has grown rapidly.

3. Government's Jeevan Pramaan' initiative for pensioners has enabled senior citizen pensioners the facility to update their annual life certificate online.

4. Under the Government-initiated PSB Reforms Agenda,-

i. Enhanced access to Mobile and Internet banking has been enabled through an increase in the average number of services offered (43), customer-friendly features (135) and regional language customer-interface (8);

ii. End-to-end automated digital lending has been introduced in larger PSBs for unsecured personal loans (in five PSBs), loans to micro-enterprises ("Shishu Mudra", in five PSBs) and renewals of loans to micro, small and medium enterprises (in three PSBs);

iii. Digital retail loan request initiation through digital channels has been enabled in all the seven large PSBs, with retail disbursements from loan requests so initiated in the financial year (FY)2020-21 amounting to Rs. 40,819 crore;

iv. Customer-need-driven, analytics-based credit offers have been given an impetus, resulting in Rs. 49,777 crore of fresh retail loan disbursements by the seven larger PSBS in the financial year (FY) 2020-21.

As a result, the Minister stated, nearly 72% of financial transactions of PSBs are now done through digital channels, with doubling of customers active on digital channels from 3.4 crore in FY2019-20 to 7.6 crore in FY2020-21, and the share of financial transactions undertaken through home and mobile channels has increased from 29% in FY 2018-19 to 76% in FY 2020-21.

5. PSB Alliance, an initiative of all PSBs and Indian Banks' Association, has launched doorstep banking services for all customers, including senior citizens, through call centre (1800-121-3721 and 1800-103-7 188), web portal (https://psbdsb.in/ and https://doorstepbanks.com/) mobile app (Google Play Store). At present 13 services are being offered in 100 cities across the country, which include cash withdrawal or deposit, pick-up of cheque or demand draft or pay order etc., pickup of cheque-book requisition slip, pickup of income-tax forms no. 15G/15H, pick up of income-tax/GST challan, and delivery of tax deduction at source (TDS) and Form- 16 certificates for income-tax purposes.

The Minister further said that there is no proposal under consideration of the Government for setting up of a Digital Banking Infrastructure Corporation (DBI). As per inputs from banks, some PSBs have held discussions to set up a corporation to create a common digital infrastructure platform as a joint initiative of the banks, with a view to enable enhanced access to consumers and businesses for credit offerings.

Tags : Measures Digital banking Digital infrastructure

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Ministry of Commerce and Industry

27.07.2021

Commercial

Introduction of a new proforma for filing applications for revalidation of SCOMET export authorisation

MANU/DGFT/0091/2021

In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy(FTP) 2015-20, the Director General of Foreign Trade (DGFT) hereby notifies a new ANF proforma, namely ANF 20(d), as Annexed for filing application for revalidation of SCOMET export authorisation, under para 2.74 of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20, with immediate effect.

Effect of this Public Notice:

The new ANF proforma, namely ANF 20(d) will facilitate the trade and industry to file application for revalidation of SCOMET export authorisation.

Tags : Introduction New proforma SCOMET

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Securities and Exchange Board of India

26.07.2021

Capital Market

RTA inter-operable platform for enhancing investors' experience in Mutual Fund transactions/service requests

MANU/SMFD/0021/2021

In order to make it more convenient to the existing and future investors to transact and avail services while invested in Mutual Funds and pursuant to discussions with various stakeholders including AMFI, Depositories and the RTAs, the following has been decided:

1. RTAs shall implement standardized practices, system interoperability amongst themselves to jointly develop a common industry wide platform that will deliver an integrated, harmonized, elevated experience to the investors across the industry. AMCs and Depositories shall facilitate the RTAs for development of the proposed platform.

2. The aforesaid platform shall, inter alia in phases, enable a user-friendly interface for investors for execution of mutual fund transactions viz. purchase, redemption, switch etc., initiation and tracking of service requests viz. change of email id/contact number/bank account details etc., initiation and tracking of queries and complaints, access investment related reports viz. mutual fund holdings (both in demat and standard Statement of Account), transactions reports (including historic transactions), capital gains/loss report, details of unclaimed dividend/redemption etc. Through this platform, investors will be able to access these services for all Mutual Funds in an integrated manner. In this regard, AMCs, RTAs and Depositories shall take necessary measures to provide data via APIs on a real time basis to the proposed platform. Additionally, RTAs and Depositories shall also share their respective data feeds between themselves for generation of investment related reports.

3. The platform may also over time, provide services to the distributors, registered investment advisors, AMCs, Stock Exchange platforms and digital platforms for transacting in mutual funds to further augment ease of investing and servicing of investors through the above stakeholders in consultation with SEBI.

4. AMCs, RTAs and Depositories shall review and agree to harmonize the processes across the industry to provide a single-window, integrated, simplified investment and service experience for the investors.

5. AMCs, RTAs, and Depositories shall adopt the data definitions and standards as provided/recommended by SEBI for data exchange amongst various participants.

6. The Platform should be scalable with robust cyber security protocols and supported through an API-based architecture. In this regard, the platform shall adopt the Cyber Security and Cyber Resilience framework specified by SEBI from time to time to "MIIs" (Market Infrastructure Institutions such as Stock Exchanges, Depositories and Clearing Corporations) and "Qualified RTAs" (QRTAs). Further, on request basis, APIs could be exposed to other industry stakeholders such as distributors, registered investment advisors, Stock Exchange platforms and digital platforms etc. with due approval of the concerned Mutual Fund on mutually agreed terms.

7. The RTAs are jointly and severally responsible for compliance with all the applicable regulations including system audit and cyber security audit. Further, RTAs shall ensure that the platform complies with the guidelines for Business Continuity Plan (BCP) and Disaster Recovery (DR) specified by SEBI from time to time to "MIIs".

8. All the stakeholders are advised to collaborate and work together towards the development and implementation of the proposed investor-friendly platform.

9. AMCs and Depositories shall facilitate and RTAs shall make the aforesaid platform operational in a phased manner (starting with non-financial transactions) and shall be fully operational by December 31, 2021.

10. AMCs, RTAs, Depositories, AMFI and key stakeholders are advised to create awareness about this initiative amongst the investors.

11. Any RTA providing its services to Mutual Fund(s), subsequent to issuance of this circular, shall follow the guidelines specified in this circular or amendments thereto as may be intimated by SEBI from time to time.

12. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 77 of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : Inter-operable platform Mutual Fund Investors

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