Inquisitive Mind

Reserve Bank of India (RBI) has issued guidelines for prevention of financial frauds perpetrated using voice calls and SMS. How shall Regulated Entities (REs) prevent financial frauds perpetrated using voice calls and SMS? Regulated Entities (REs) shall – Utilize the Mobile Number Revocation List (MNRL) available on the Digital Intelligence Platform (DIP) developed by Department of Telecommunications (DoT), Ministry of Communications, Government of India to monitor and clean their customer database. REs shall also develop Standard Operating Procedures (SOP) incorporating the required action to be taken including, inter alia, updating the registered mobile number after due verification; enhanced monitoring of accounts linked to these revoked mobile numbers for preventing the linked accounts from being operated as Money Mules and / or being involved in cyber frauds, etc. Provide the verified details of their customer care numbers to DIP for enabling DoT to publish them on the “Sanchar Sa...

Reserve Bank of India (RBI) forms committees to deliberate on various matters. A list of such committees is given below. Committee Chairperson Internal Working Group to Review the Liquidity Management Framework Dr. Poonam Gupta Working Group on ‘Comprehensive review of trading and settlement timings of markets regulated by the Reserve Bank’ Shri Radha Shyam Ratho, Executive Director, RBI Standing External Advisory Committee (SEAC) for evaluating applications for Universal Banks as well as Small Finance Banks Tenure of SEAC will be for 3 years. Previous SEAC was constituted under the chairmanship of Smt. Shyamala Gopinath, former Deputy Governor, RBI on March 22, 2021 Shri M K Jain, former Deputy Governor, RBI Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) in the Financial Sector Dr. Pushpak Bhattacharyya, Professor, Department of Computer Science and Engineer...

Unified Payment Interface (UPI) is one of the popular methods of digital payments. This article covers the important developments regarding UPI. Unified Payment Interface (UPI) Unified Payment Interface (UPI) is an initiative by National Payments Corporation of India (NPCI) together with Reserve Bank of India (RBI) and Indian Banks Association (IBA). UPI allows linking of multiple bank accounts in a single mobile application for real-time bank-to-bank payments using mobile number, virtual payment address (UPI ID) or by scanning a QR code. Benefits of UPI Single application for accessing different bank accounts. Offers peer-to-peer fund transfer, merchant payments and utility bill payments. Allows payments using mobile number; virtual payment address (UPI ID); scanning QR code; bank account number and IFSC; and Aadhaar number. Secured payment with Two Factor authentication. Funds are transferred in real-time (i.e. immediately). Available round the clock i.e. 24*365. Available to custome...

Reserve Bank of India (RBI) has issued guidelines on Government Debt Relief Schemes (DRS). The guidelines include (i) model operating procedure (MOP) shared with the State Governments for their consideration while designing and implementing DRS and (ii) prudential guidelines for the Regulated Entities (REs). Model operating procedure (MOP) shared with the State Governments for their consideration while designing and implementing DRS What is Government Debt Relief Scheme (DRS)? Debt Relief Schemes (DRS) refer to schemes notified by the State Governments that entail funding by the fiscal authorities to cover debt obligations of a targeted segment of borrowers that the lending institutions are required to sacrifice / waive.  What are the pre-requisites for announcing DRS? Announcement / notification of DRS should include the specific stress or distress situation necessitating announcement of such support. DRS should be considered only as a measure of last resort when other measures to...

The bi-monthly monetary policy of Reserve Bank of India (RBI) was announced on December 06, 2024. Here are some of the highlights of the monetary policy announcement. Rates   Change Rate Policy repo rate Unchanged 6.50% Standing deposit facility (SDF) rate 6.25% Marginal standing facility (MSF) rate 6.75% Bank rate 6.75% Monetary policy stance ‘Neutral’ and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth. Domestic Economy    GDP growth projection CPI inflation projection FY 2024-25 6.6% 4.8% Q3 of FY  2024-25 6.8% 5.7% Q4 of FY  2024-25 7.2% 4.5% Q1 of FY 2025-26 6.9% 4.6% Q2 of FY  2025-26 7.3% 4.0% Growth in real GDP in Q2 at 5.4% turned out to be much lower than anticipated. This decline in growth was led mainly by a substantial deceleration in industrial growth due to subdued performance of manufacturing companies (petroleum products, iron and steel and cement), contraction in mining activity ...