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Reserve Bank of India [UPSC Notes for Indian Economy]

The Reserve Bank of India (RBI) is India’s central bank. It controls the monetary policy concerning the national currency, the Indian rupee. The basic functions of RBI are the issuance of currency, sustaining monetary stability in India, operating the currency, and maintaining the country’s credit system. In this article, you can read all about the Reserve Bank of India, its origins, the role of RBI, its functions, mandate and all the latest updates related to the RBI, relevant for the IAS exam Indian economy segment.

Reserve Bank of India Download PDF Here

In May 2023, the Reserve Bank approved a Rs 87,416 crore dividend payout to the central government for 2022-23, nearly triple what it paid in the previous year.

• The decision was taken at the 602nd meeting of the Central Board of Directors of the Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.
• The board approved the transfer of Rs 87,416 crore as surplus to the central government for the accounting year 2022-23.
• This is a 188% jump from the last year’s (2021-22) surplus transfer of Rs 30,307 crore.
• It decided to keep the Contingency Risk Buffer (CRB) at 6 per cent.
• The contingency risk buffer is a specific provision fund kept by the central bank primarily to be used during any unexpected and unforeseen contingencies.
• The Bimal Jalan Committee recommended that the CRB needs to be maintained at a range of 5.5% to 6.5% of the RBI’s balance sheet.
• The board also reviewed the global and domestic economic situation and associated challenges, including the impact of current global geopolitical developments.
• The dividend could bring in additional revenue of around 0.2 per cent of GDP.

Provisions Regarding Transfer of Surplus by RBI:

• The Reserve Bank of India Act of 1934 mandates that profits made by the central bank from its operations be sent to the Central Government.
• As the manager of its finances, every year the RBI also pays a dividend to the government to help with the finances from its surplus or profit.
• A technical Committee of the Reserve Bank of India headed by Y H Malegam (2013), which reviewed the adequacy of reserves and surplus distribution policy, recommended a higher transfer to the government.

How Does RBI Make Profits?

• The RBI is a “full-service” central bank.
• It is mandated to keep inflation in check and also manage the borrowings of the Government of India and of state governments.
• It also supervises or regulates banks and non-banking finance companies and manages the currency and payment systems.  While carrying out these functions, RBI makes profits.
• RBI claims a management commission on handling the borrowings of state governments and the central government.
• RBI also earns interest on its holdings of local rupee-denominated government bonds or securities, and while lending to banks for very short tenures, such as overnight.
• RBI’s income comes from the returns it earns on its foreign currency assets, which could be in the form of bonds and treasury bills of other central banks or top-rated securities, and deposits with other central banks.

Reserve Bank of India has dismissed worries about the “exposure” of Indian banks to the Gautam Adani-led conglomerate. Click here to read more about the Adani-Hindenburg issue .

What is Final Exposure?

• A bank’s counterparty exposures may cause its assets to become concentrated in the hands of a single or network of connected counterparties.

About Large Exposure Framework (LEF) Guidelines:

• The Basel Committee on Banking Supervision (BCBS) released supervisory recommendations on significant exposures in January 1991, titled Monitoring and Managing Significant Credit Exposures. Know more about Basel III Norms in the link.
• The recommendations on large exposures (LE) for banks were created by the RBI after deciding that Indian banks should properly embrace these standards.
• With rare exclusions, the LEF applies to a bank’s exposure to all of its counterparties as well as groups of connected counterparties.
• It is founded on the 2014 Basel guidelines.
• Positive indications include numerous measures of sufficient capital, excellent assets, liquidity, provision coverage, and profitability.

Update on Feb 2021

• On 16th February 2021, RBI announced an expert committee on primary urban cooperative banks. The chairman of the committee is NS Vishwanathan. (Get the list of committees with their purpose in the linked article for quick revision for UPSC.)
• On 5th February 2021, RBI Monetary Policy (2021-22) was announced. The central bank kept the Repo Rate at 4 percent while projected the GDP growth in Fiscal Year (FY) 2022 at 10.5 percent. (Understand Cash Reserve Ration, Repo Rate and Reserve Repo Rate in the linked article.)

What is RBI?

RBI is an institution of national importance and the pillar of the surging Indian economy. It is a member of the International Monetary Fund (IMF) . 

• The concept of the Reserve Bank of India was based on the strategies formulated by Dr. Ambedkar in his book named “The Problem of the Rupee – Its Origin and Its Solution”.
• This central banking institution was established based on the suggestions of the “Royal Commission on Indian Currency & Finance” in 1926. This commission was also known as the Hilton Young Commission.
• In 1949, the Reserve Bank of India was nationalized and became a member bank of the Asian Clearing Union.
• RBI regulates the credit and currency system in India.
• The chief objectives of the RBI are to sustain the confidence of the public in the system, protect the interests of the depositors, and offer cost-effective banking services like cooperative banking and commercial banking to the people.

Reserve Bank of India (RBI) – Timeline

The RBI is an important tool in the development strategy of the Indian government. UPSC has asked several questions regarding RBI functions, objectives, monetary regulations, etc., especially in UPSC Prelims . One of the things to know about RBI is its timeline which is provided in the table below:

In the year 2016, the original RBI Act of 1934 was amended and that provided the statutory basis for the implementation of the flexible inflation-targeting framework. 

The Preamble of Reserve Bank of India

Another thing to know about RBI is its Preamble. It describes the basic functions of the Reserve Bank as:

“… to regulate the issue of Bank Notes and keeping of reserves to secure monetary stability in India and generally to operate the currency and credit system of the country to its advantage.”

Functions of Reserve Bank of India

In this section, we discuss the functions of RBI in detail.

The Reserve Bank of India works as:

Monetary Authority

• Implementation of monetary policies.
• Monitoring the monetary policies
• Ensuring price stability in the country considering the economic growth of the country

Also, read about the Monetary Policy Committee (MPC) and know more about this six-member committee.

Regulator and Administrator of the Financial System

• The RBI determines the comprehensive parameters of banking operations.
• License issuing
• Liquidity of assets
• Bank mergers
• Branch expansion, etc.

Managing Foreign Exchange

• RBI manages the FOREX Reserves of India.
• It is responsible for maintaining the value of the Rupee outside the country. 
• It aids foreign trade payments. 

Issuer of currency

• The Reserve Bank of India is responsible for providing the public with a sufficient supply of currency notes and coins. 
• The quality of currency notes and coins is also taken care of by the RBI.
• RBI is in charge of issuing and exchanging of currency and coins. 
• Also, the destruction of currency and coins that are not fit for circulation.

RBI’s Developmental Role

• Promotional functions that support national objectives are organized by RBI that encourage rural and agricultural economic development.
• The RBI will regularly issue directives to commercial banks to lend loans to small-scale industrial units. 

Composition of RBI

• The Reserve Bank of India is controlled by a central board of directors. The directors are appointed for a 4-year term by the Government of India in keeping with the Reserve Bank of India Act.
• 4 Deputy Governors
• 2 Finance Ministry representatives
• 4 directors to represent local boards headquartered in Mumbai, Kolkata, Chennai, and New Delhi
• The executive head of RBI is the Governor.
• The Governor is accompanied by 4 deputy governors.
• The First Governor of RBI was Sir Osborne Smith and the First Indian Governor of RBI was C D Deshmukh.
• The First woman Deputy Governor of RBI was K J Udeshi.
• The only Prime Minister who had been the Governor of RBI was Manmohan Singh.

The current governor of RBI is Shaktikanta Das. Get the list of RBI Governors in the linked article.

Zonal Offices

• RBI has four zonal offices: New Delhi for North, Chennai for South, Kolkata for East, and Mumbai for West.
• The Reserve Bank of India has 19 regional offices and 11 sub-offices at present.
• Reserve Bank Staff College at Chennai
• College of Agricultural Banking at Pune.

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Functions of RBI

Last updated on April 6, 2024 by ClearIAS Team

RBI, also called the Monetary Authority of India, was set up on the recommendation of the Hilton Young Commission.

The statutory status of the RBI is provided under the Reserve Bank of India Act of 1934, and become operational on April 1, 1935.

Moreover, when RBI came into force it takes over the functions of Government so far being performed by the Controller of Currency and from the Imperial Bank of India.

Additionally, after India’s Partition, The RBI served as the Central Bank of Pakistan up to June 1948.

Also read: History of Banking in India

Table of Contents

Objective of RBI

RBI was nationalized in 1949 and since come under the full ambit of the Ministry of Finance, Government of India.

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The purpose of the RBI is to regulate the issuance of banknotes and the maintenance of reserves in order to ensure monetary stability in India and, more generally, to operate the nation’s currency and credit system to its advantage.

The organization also aims to maintain macroeconomic stability, financial stability, and a modern monetary policy framework in order to address the challenges posed by an increasingly complex economy.

Structure of RBI

The affairs of RBI are governed by a central board of directors.

There could be a maximum of 21 members on the central board of directors including the governor and four deputy governors who are appointed by the Government of India in keeping with the RBI Act, 1934 for a period of 4 years.

Also read: Government Securities Market

The RBI performs the following functions:

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1)Monetary Management/Authority

One of the most important functions of RBI is the formulation and execution of Monetary Policy and securing monetary stability in India It functions the currency and credit system to its advantage.

2) Supervision and Regulation of Banking and Non-Banking Financial Institutions

RBI functions to protect the Interest of depositors through an effective regulatory framework. Keeping a keen eye over the conduct of banking operations and solvency of the banks along with maintaining the overall financial stability through various policy measures.

These powers of RBI come from RBI ACt 1934 and Banking Regulation Act 1949.

This regulatory and supervisory function of the RBI extends to Indian Banking System as well as Non-Banking Financial Institutions.

3) Regulation of Foreign Exchange Market, Government Securities Market, and Money Market

Foreign Exchange Market: The Foreign Exchange Management Act 1999 came into light after the liberalization measures introduced in 1991. FEMA 1991 replaced the FERA 1973 and came into effect in June 2022.

So now, the RBI is responsible to oversee the foreign exchange market in India. RBI supervises and regulates the Foreign Exchange Market through the provision of the FEMA Act 1999.

Government Securities Market:  RBI regulates the trade securities issued by the Central and State governments. For regulation of this, RBI derives its power from the RBI Act of 1934.

Money Market: Short-term and highly liquid debt securities are also regulated by RBI and for this RBI derives its powers from the RBI Act 1934.

4) Foreign Exchange Reserve Management

Foreign exchange reserve includes-

• Foreign Currency Assets (FRAs)
• Special Drawing Rights (SDRs)

RBI is the custodian of India’s foreign exchange reserves. The legal provision regarding the management of foreign exchange reserves is mentioned in RBI Act 1934.

The RBI Act of 1934 permits the RBI to invest these foreign exchange reserves in the following instruments-

• Deposit with Banks for International Settlement
• Deposit with foreign Commercial Banks
• Debt Instruments
• Other instruments with approval of the Central Banks of RBI

5) Bankers to Central and State Government

RBI acts as a banker to the government. RBI is the responsible agency for receiving and paying money on behalf of the various government departments.

RBI is also authorized to appoint other banks to act as its agent and undertake banking business on the behalf of the government.

RBI maintains Central and State Government funds like Consolidated Funds, Contingency Funds, and Public Account.

RBI also provides loans to the central/State/UT Government as a banker to the government.

Also read: Loan Loss Provisions

6) Advisor to the Government

RBI acts as an advisor to the government when called upon to do so on financial and banking-related matters.

7) Central and State Government’s Debt Manager

The debt management policy mainly aims at minimizing the cost of borrowing and smoothening the maturity structure of debt. RBI manages the public debt and also issue new loans on behalf of central and state government.

8) Banker to Banks

Banks open their current account with RBI to maintain SLR and CRR.

RBI is a common banker for the different banks that enables the settlement of interbank transfers of funds.

For special purposes or in need, RBI provides short-term loans and advances to banks

9) RBI- Lender of last resort

That means RBI comes to rescue the banks that are solvent (facing temporary liquid problems) but have not gone bankrupt. RBI provides this facility to protect the interest of depositors and to prevent the possible failure of the bank.

10) RBI- Issuer of Currency

The RBI and the government are in charge of the creation, manufacturing, and overall administration of the national currency with the aim of releasing a sufficient quantity of authentic and clean notes.

The Reserve Bank of India has given some bank branches permission to set up currency chests in order to simplify the circulation of rupee notes and coins around the nation (A currency chest is a storehouse where currency notes and rupee coins are stocked on behalf of RBI)

11) Developmental Role

RBI’s developmental role includes creating institutions to build financial infrastructure, ensuring credit to the productive sector of the economy, and expanding access to affordable financial systems.

Following are the several schemes that come under RBI’s developmental roles-

Priority Sector Lending

As per RBI, priority sectors are those sectors of the economy that may not get timely and sufficient credit in the absence of these special schemes.

Priority sector guidelines don’t provide a preferential interest rate for loans to the sector. These small-value loans typically run to those sections of the population that are weaker sections of society and needed special attention and to the section intensively employed in agriculture and small enterprises.

A list of Priority Sectors are-

• Agriculture
• Social Infrastructure
• Renewable Energy
• Weaker Sections
• Commercial Banks including foreign banks- 40% of total loan to PSL
• Regional Rural Banks- 75%
• Small Finance Banks- 75%
• Payment Bank- They do not give Credit
• Urban (primary) cooperative banks- 40% (will increase to 75% by 2024 in a phased manner)

Lead Bank Scheme

lead Bank Scheme Introduced by RBI in 1969 aims at coordinating the activities of banks and other developmental agencies with an objective to enhance the flow of bank finance to priority sectors and other sectors to promote the bank’s role in overall development.

12) Data Dissemination/Policy Research

Such research undertaken by RBI focuses on issues and problems arising at the national and international levels, having a critical impact on the Indian economy.

India is a signatory of Special Data Dissemination Standards (SDDS) as defined by IMF for the purpose of releasing data.

RBI has some legal obligations over him under RBI Act. One of them is to publish two reports every year. One is, the Annual Report, and the other is the Report on Trends and Progress of Banking in India.

RBI conducts Consumer Confidence Survey and Inflation Expectation Survey on a quarterly basis.

Key Features Related to the Functions of RBI

• RBI is authorized to issue various guidelines for bank directors and has the power to appoint additional directors to the board of a banking company.
• Prior approval of RBI is important for the appointment, reappointment, and termination of the Chairman, Managing Director, and CEO of Commercial Banks (except PSBs).
• If the situation arises then RBI with the approval of the Central Government can take the place of the Board of Directors of Commercial Banks.
• Public Sector Banks (PSBs) come under dual regulation of the Central Government and RBI so the RBI’s power regarding the PSBs is curtailed as it cannot remove the directors and management and cannot supersede the board of Banks also cannot enforce mergers.
• As per RBI’s regulation, Banks needed to maintain certain reserves in the form of CRR and SLR.
• RBI regulates the interest rate on NRI deposits, export credits (loans), and a few other categories. However, the interest rate on most of the categories of deposit and lending have been deregulated so the banks are responsible for determining such rates.
• RBI set up Deposit Insurance and Credit Guarantee Corporation (DICGC) for the protection of the interest of small depositors in case of bank failure or bankruptcy (100% subsidy). It provides insurance cover to all eligible bank depositors up to 5 lakhs per depositor per bank. To provide insurance coverage, it charges premiums from banks. DICGC covers all commercial banks including foreign bank branches as well along with UCBs/StCBs/DCCBs. But it is important to note that it does not cover deposits of foreign governments, deposits of Central and State governments, and interbank deposits.
• RBI has permitted the banks to undertake some non-traditional banking activities such as venture capital, insurance, mutual fund business, etc.
• Cooperative Banks- Cooperative Banks come under the dual regulation of RBI and the Government. Both the authorities have different fields to work on as RBI manages the banking-related functions and Central Government or State Government manages the management-related functions.
• Financial Institutions, NBFCs, Primary Dealers, and Credit Information Companies (CIC)- The four all-India financial institutions named NABARD, NHB, EXIM Bank, and SIDBI are under full-fledged regulation and supervision of RBI.
• NBFCs, Primary Dealers and CICs also come under the regulation and supervision of RBI.
• Note: RBI is authorized to regulate banks and NBFCs both but till July 2019, RBI had the power to take the place of the Board of Banks (in case of any mismanagement or default) but not of NBFCs. In July 2019 an amendment is done to the RBI Act 1934 that empowers the RBI to supersede the bank of NBFCs also in case of mismanagement or default. RBI now has the power to appoint administrators as well in the public interest.

Article Written By: Priti Raj

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What Is the Reserve Bank of India (RBI)?

• How It Works
• Departments
• Communication

The Bottom Line

• Monetary Policy
• Federal Reserve

The Reserve Bank of India (RBI): What It Is and How It Works

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

Investopedia / Michela Buttignol

The Reserve Bank of India (RBI) is the central bank of India, which began operations on Apr. 1, 1935, under the Reserve Bank of India Act. The Reserve Bank of India uses monetary policy to create financial stability in India, and it is charged with regulating the country’s currency and credit systems.

Key Takeaways

• The Reserve Bank of India (RBI) is the central bank of India,
• The RBI was originally set up as a private entity in 1935, but it was nationalized in 1949.
• The main purpose of the RBI is to conduct consolidated supervision of the financial sector in India, which is made up of commercial banks, financial institutions, and non-banking finance firms.

Understanding the Reserve Bank of India (RBI)

Located in Mumbai, the RBI serves the financial market in many ways. The bank sets the overnight interbank lending rate. The Mumbai Interbank Offer Rate (MIBOR) serves as a benchmark for interest rate–related financial instruments in India.

The main purpose of the RBI is to conduct consolidated supervision of the financial sector in India , which is made up of commercial banks, financial institutions, and non-banking finance firms. Initiatives adopted by the RBI include restructuring bank inspections, introducing off-site surveillance of banks and financial institutions, and strengthening the role of auditors

First and foremost, the RBI formulates, implements, and monitors India’s monetary policy . The bank’s management objective is to maintain price stability and ensure that credit is flowing to productive economic sectors. The RBI also manages all foreign exchange under the Foreign Exchange Management Act of 1999. This act allows the RBI to facilitate external trade and payments to promote the development and health of the foreign exchange market in India .

The RBI acts as a regulator and supervisor of the overall financial system. This injects public confidence into the national financial system, protects interest rates, and provides positive banking alternatives to the public. Finally, the RBI acts as the issuer of national currency. For India, this means that currency is either issued or destroyed depending on its fit for current circulation. This provides the Indian public with a supply of currency in the form of dependable notes and coins, a lingering issue in India.

The current Governor is Shri Shaktikanta Das, and he has four Deputy Governors that report to him directly.

Reserve Bank of India Departments

The Reserve Bank of India has a number of departments, each of which have a very specific purpose. An entire list of departments can be found on the Reserve Bank of India's site. Some of the key departments within the Reserve Bank of India along with what that department does includes but isn't limited to:

• Department of Monetary Policy: Responsible for formulating and implementing monetary policy to achieve price stability and economic growth.
• Department of Banking Regulation: Regulates and supervises banks and financial institutions to ensure the stability and efficiency of the banking system.
• Department of Currency Management: Manages the issuance and circulation of currency notes and coins.
• Department of Payment and Settlement Systems: Regulates and supervises payment and settlement systems to ensure safety, efficiency, and reliability of payment systems in the country.
• Department of Economic and Policy Research: Conducts economic research and analysis to provide inputs for policymaking and to monitor economic indicators.
• Department of Information Technology: Manages and develops IT infrastructure, systems, and applications to support the operations of the Reserve Bank of India.

Reserve Bank of India Operations

The RBI was originally set up as a private entity, but it was nationalized in 1949. The reserve bank is governed by a central board of directors appointed by the national government. The government has always appointed the RBI’s directors, and this has been the case since the bank became fully owned by the government of India as outlined by the Reserve Bank of India Act. Directors are appointed for a period of four years.

According to its website, the current focus of the RBI is to continue its increased supervision of financial institutions, while dealing with legal issues related to bank fraud and consolidated accounting and attempting to create a supervisory rating model for its banks.

Reserve Bank of India and Communication

The Reserve Bank of India acknowledges the pivotal role that communication plays in modern central banking. On its website, it emphasizes a collegial approach to monetary policy decision-making. The Reserve Bank of India's communication policy adheres to guiding principles of relevance, transparency, clarity, comprehensiveness, and timeliness with the aim of enhancing public understanding of developments across its various domains.

In its medium-term vision statement titled "Utkarsh 2022", the RBI delineates objectives including excellence in statutory functions, enhanced public trust, increased relevance nationally and globally, transparent governance, modern infrastructure, and a skilled workforce. Strategies to achieve these objectives involve consolidating past gains, leveraging emerging opportunities, and addressing future challenges through tangible, time-bound milestones.

The RBI commits to reviewing its communication policy every three years, reflecting its recognition of communication as a dynamic process crucial for effective central banking operations.

How Does the RBI Regulate Banks and Financial Institutions in India?

The RBI regulates banks and financial institutions in India through various measures such as licensing and supervision, setting capital adequacy norms, and conducting inspections and audits. The RBI is also the governing body responsible for issuing regulatory guidelines and directives.

What Are the Primary Objectives of the RBI as Outlined in the Reserve Bank of India Act of 1934?

The primary objectives of the RBI, as outlined in the Reserve Bank of India Act, 1934, include regulating the issuance of banknotes, maintaining monetary stability, operating the currency and credit system to the country's advantage, and fostering economic growth.

What Are the Key Initiatives and Strategies Outlined in the RBI's Medium-Term Vision Statement?

The RBI's medium-term vision statement outlines key initiatives and strategies aimed at achieving excellence in statutory functions, strengthening public trust, and enhancing relevance nationally and globally. It also is currently aiming to ensure transparent governance, modernize infrastructure, and foster a skilled workforce.

The Reserve Bank of India is the central banking institution in India responsible for formulating and implementing monetary policy, regulating and supervising the banking and financial system, and managing the issuance and circulation of currency. It plays a crucial role in maintaining financial stability not just for the country for the broader, global economy.

Reserve Bank of India. " Chronology of Events ."

Legislative Department of India. " The Foreign Exchange Management Act, 1999 ," Page 3.

Reserve Bank of India. " Organisation Structure ."

Reserve Bank of India. " Departments ."

Reserve Bank of India. " About Us ."

Reserve Bank of India. " Communication Policy of RBI ."

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RBI – Reserve Bank of India

Updated on : May 23rd, 2022

11 min read

The Reserve Bank of India (RBI) is India’s central bank, also known as the banker’s bank. The RBI controls the monetary and other banking policies of the Indian government.

Which date was the RBI established? The Reserve Bank of India (RBI) was established on April 1, 1935 , in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank is permanently situated in Mumbai since 1937.

Establishment of Reserve Bank of India

The Reserve Bank is fully owned and operated by the Government of India.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:

• Regulating the issue of Banknotes
• Securing monetary stability in India
• Modernising the monetary policy framework to meet economic challenges

The Reserve Bank’s operations are governed by a central board of directors, RBI is on the whole operated with a 21-member central board of directors appointed by the Government of India in accordance with the Reserve Bank of India Act.

The Central board of directors comprise of:

• Official Directors – The governor who is appointed/nominated for a period of four years along with four Deputy Governors
• Non-Official Directors – Ten Directors from various fields and two government Official

Organisation Structure

The primary objectives of RBI are to supervise and undertake initiatives for the financial sector consisting of commercial banks, financial institutions and non-banking financial companies (NBFCs).

Some key initiatives are:

• Restructuring bank inspections
• Fortifying the role of statutory auditors in the banking system

Legal Framework

The Reserve Bank of India comes under the purview of the following Acts:

• Reserve Bank of India Act, 1934
• Public Debt Act, 1944
• Government Securities Regulations, 2007
• Banking Regulation Act, 1949
• Foreign Exchange Management Act, 1999
• Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
• Credit Information Companies(Regulation) Act, 2005
• Payment and Settlement Systems Act, 2007

Major Functions of RBI

Monetary Authority 

• Formulating and implementing the national monetary policy.
• Maintaining price stability across all sectors while also keeping the objective of growth.

Regulatory and Supervisory 

• Set parameters for banks and financial operations within which banking and financial systems function.
• Protect investors interest and provide economic and cost-effective banking to the public.

Foreign Exchange Management

• Oversees the Foreign Exchange Management Act, 1999.
• Facilitate external trade and development of foreign exchange market in India.

Currency Issuer

• Issues, exchanges or destroys currency and not fit for circulation.
• Provides the public adequately with currency notes and coins and in good quality.

Developmental role

• Promotes and performs promotional functions to support national banking and financial objectives.

Related Functions

• Provides banking solutions to the central and the state governments and also acts as their banker.
• Chief Banker to all banks: maintains banking accounts of all scheduled banks.

RBI Annual publications 

Annual Report –  The annual report is a statutory report of the Reserve Bank of India that is released every year. This report consists of valuation and progress of the Indian economy. Overview of the economy, the working of the Reserve Bank during that year and the RBI’s projected vision and agenda for the following year along with the annual accounts of the Reserve Bank

Report on Trend and Progress of Banking in India – This document is an assessment of the policies and progress of the financial sector for the preceding year.

Lectures –  The Reserve Bank of India has constituted three annual lectures. Two of these lectures are conducted by past Governors of the Reserve Bank and one lecture is by a noted economist.

Report on Currency and Finance – This report is documented and presented by the staff of Reserve Bank of India bank and focusses on a particular theme and presents a detailed economic analysis of the issues related to the theme.

Handbook of Statistics on the Indian Economy –  This report is an important initiative by the Reserve Bank to improve data distribution. It is a resourceful storehouse of major statistical information.

State Finances: A Study of Budgets – The report is an essential source of segregated state-wise financial data and provides an analytical data-driven conceptualisation on the fiscal position of state governments across India. These data inputs are used to analyse specific issues of relevance.

Statistical Tables Relating to Banks in India –  This annual publication contains holistic timeline data with regards to the Scheduled Commercial Banks (SCBs) of India. The report also covers the information of balance sheets and performance indicators for each SCB in India. The journal also includes segregated data sources on some essential factors relating to bank-wise, bank group-wise and state-wise level of information.

Basic Statistical Returns  – This is another data-focused yearly journal which represents complex information on the number of offices, employees, deposits and credit of Scheduled Commercial Banks in minute levels of detail such as, region-wise, state-wise and district-wise information. This information also trickles down to the population and credit requirements in each bank.

RBI Policies 

Repo Rate 

Repo or repurchase rate is the benchmark interest rate at which the RBI lends money to all other banks for a short-term. When the repo rate increases, borrowing from RBI becomes more expensive and hence customers or the public bear the outcome of high-interest rates.

Reverse Repo Rate (RRR) 

Reverse Repo rate is the short-term borrowing rate at which RBI borrows money from other banks. The Reserve Bank of India uses this method to reduce inflation when there is excess money in the banking system.

Cash Reserve Ratio (CRR)

Cash Reserve Ratio is the particular share of any bank’s total deposit that is mandatory and to be maintained with the Reserve Bank of India in the form of liquid cash.

Statutory liquidity ratio (SLR)

Leaving aside the cash reserve ratio, banks are required to maintain liquid assets in the form of gold and approved securities. A higher SLR disables the banks to grant more loans.

Payment System Initiatives

• The Reserve Bank has taken many steps towards initiating and updating secure and sustainable methods of payment systems in India to meet public requirements.
• Currently, payment methods in India consist of paper-based instruments, electronic instruments and other instruments, such as pre-paid system (e-wallets), mobile internet banking, ATM-based transactions, Point-of-sale terminals and online transactions.

Paper-based Payments

• Use of paper-based instruments such as cheques and demand drafts accounts for nearly 60% of the volume of total non-cash transactions in India. These forms of payments have been steadily decreasing over a period of time due to the electronic modes of payments gaining popularity due to the comparative convenience, safety and overall efficiency.
• Magnetic Ink Character Recognition (MICR) technology was introduced by RBI  in the paper-based payment method for speeding up and bringing in efficiency in the processing of cheques.
• A separate clearing system for paper-based payment method was introduced for clearing cheques of high-value ranging from rupees one lakh and above.  Also, the introduction of cheque truncation (CTS) system restricts the physical movement of cheques and utilises images for enhanced secure payment processing.

Electronic Payments

The initiatives taken by the Reserve Bank in the domain of electronic payment systems are immense and vast. The types of electronic forms of payment by the RBI are as follows:

• Electronic Clearing Service (ECS) – This enables customer bank accounts to be credited with a specified value and payment on a set date. This makes EMIs, or other monthly bills hassle free.
• National Electronic Clearing Service (NECS) – This facilitates multiple advantages to beneficiary accounts with destination branches against a single debit of the account of the sponsor bank.
• Electronic Funds Transfer (EFT) – This retail funds transfer system was to enable an account holder of a bank to electronically transfer funds to another account holder with any other intermediate or participating bank.
• National Electronic Funds Transfer (NEFT) –  A secure system to facilitate real-time fund transfer between individuals/corporates.
• Real Time Gross Settlement (RTGS) – A funds transfer function in which transfer of money takes place from one bank to another on a real-time basis without delaying or netting with any other transaction.
• Clearing Corporation of India Limited (CCIL) – This system is for banks, financial institutions, non-banking financial companies and primary dealers, to serve as an industry service mechanism for clearing settlement of trades in money market, government securities and foreign exchange markets.
• The RBI (Reserve Bank of India) has made changes to the Prepaid Payment Instruments (PPI) also know as e-wallets. These changes include KYC –known your customer compliance. KYC is the process of collecting user details by the service provider and verifying the same with the respective government bodies.

RBI Circulars

To know the latest news from The Reserve Bank of India read circulars and notifications

Public Discussion

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Detroit Tigers' INF Begins Rehab Assignment as He Works Back From Injury

Brady farkas | may 10, 2024.

• Detroit Tigers - AthlonSports

Detroit Tigers ' third baseman Gio Urhsela began a rehab assignment on Thursday for Triple-A Toledo.

The Tigers PR account posted the information on "X:"

INF Gio Urshela began an injury rehab assignment with Triple A Toledo tonight.

INF Gio Urshela began an injury rehab assignment with Triple A Toledo tonight. — Tigers PR (@DetroitTigersPR) May 9, 2024

Urshela was put on the injured list about three weeks ago because of a strained hamstring, but he was making an offensive impact when he was in the lineup for Detroit, hitting .298 through 57 at-bats.

A nine-year big league veteran, Urshela has played for the Cleveland Indians, Toronto Blue Jays, New York Yankees, Minnesota Twins and Los Angeles Angels - as well as Detroit. A lifetime .278 hitter, his best year came in 2019 when he hit 21 homers for New York. He also drove in 74 runs that season and has two seasons of 64 RBI or more.

The 32-year-old native of Colombia signed a one-year deal this past offseason.

Urshela went 1-for-2 in that rehab game on Thursday and could stay in Toledo through the weekend. When he does return to Detroit, he'll find himself in the midst of a roster that is trying to contend for a playoff spot in 2024. Detroit is out to a 19-18 start this season and is currently 4.5 games behind the Cleveland Guardians in the American League Central.

The Tigers will host the Houston Astros on Friday night at Comerica Park. First pitch is set for 6:40 p.m. ET as Framber Valdez (HOU) pitches against Casey Mize (DET). Mize is 1-1 with a 3.98 ERA thus far this season.

Follow Fastball on FanNation on social media

Continue to follow our Fastball on FanNation coverage on social media by liking us on  Facebook  and by following us on Twitter  @FastballFN .

BRADY FARKAS

Brady Farkas is a baseball writer for Fastball on Sports Illustrated/FanNation and the host of 'The Payoff Pitch' podcast which can be found on Apple Podcasts and Spotify. Videos on baseball also posted to YouTube. Brady has spent nearly a decade in sports talk radio and is a graduate of Oswego State University. You can follow him on Twitter @WDEVRadioBrady. 

Sean Burroughs, Little League hero and former MLB player, dies at 43

After a standout high school career and scholarship to USC, Burroughs was a first-round MLB draft pick and played seven big league seasons.

Sean Burroughs, a former Little League World Series hero and first-round MLB draft pick who played seven big league seasons, died Thursday at 43.

Burroughs’s death was announced in a statement by Long Beach (Calif.) Little League on Instagram. Later, the Long Beach Press-Telegram reported the cause of death was cardiac arrest and that he was found unconscious next to his car after dropping off his son at a game. He was pronounced dead at the scene.

Burroughs was the son of major league outfielder Jeff Burroughs, a two-time all-star who made his debut with the Washington Senators in 1970 and was named American League MVP for the Texas Rangers in 1974. Sean was seemingly destined to be a ballplayer. The day after he was born in September 1980, his mother took him to see his father, the No. 1 overall pick by the Senators in 1969, play for the Atlanta Braves.

“Suddenly, on the scoreboard appeared a message that said, ‘Welcome Sean Patrick Burroughs, 22 hours old, to Atlanta-Fulton County Stadium,” Debbie Burroughs told the Long Beach Press-Telegram in 1998.

As a 12-year-old in 1993, Burroughs threw a pair of no-hitters to help lead his Long Beach team, which was coached by his father, to its second consecutive Little League World Series title. In his second no-hitter, Burroughs helped his own cause by going 4 for 5 with a pair of home runs.

After a standout high school career that earned him a baseball scholarship to USC, Burroughs, a third baseman, was selected by the San Diego Padres with the ninth pick in the 1998 MLB draft. At the time, he and his father joined Tom and Ben Grieve as the only father-son duos to be drafted in the first round .

In 2000, Burroughs was named MVP of the Futures Game at the All-Star Game in Atlanta. Two months later, he hit .375 in four games as the youngest member of the U.S. baseball team that claimed gold at the Sydney Olympics .

After hitting a combined .327 in three minor league seasons , Burroughs made his major league debut April 2, 2002, going 2 for 3 in the Padres’ 9-0 loss to the Diamondbacks. Burroughs hit .271 with one home run and 11 RBI in his rookie season, during which he battled an injury and spent time in the minors. Over four years with the Padres, Burroughs hit .282 with 11 home runs and 133 RBI in 432 games. San Diego traded Burroughs to Tampa Bay in December 2005 for starting pitcher Dewon Brazelton.

Off the field, Burroughs’s life began to life unravel after Tampa Bay released him in August 2006. He played four games for the Mariners’ Class AAA affiliate in Tacoma, Wash., in 2007 before being released again and walking away from baseball.

After making an improbable return to the majors with the Arizona Diamondbacks in 2011, Burroughs told ESPN’s Jim Caple he “was spent physically and spent mentally” in 2007, and opened up about the years he spent living in cheap motels and struggling with substance abuse while out of the sport before turning his life around.

“I really haven’t talked too much about what it was, but it was stuff that definitely wasn’t healthy taking for a long, long time, that’s for sure,” Burroughs said of his binges. “I was kind of like a garbage can. Whatever I had or needed, I would find and take it.”

Burroughs signed a minor league contract with the Diamondbacks in the fall of 2010 and earned a call-up the following May. He appeared in 78 games for Arizona that season, predominantly as a pinch hitter, batting .273 with one home run off Washington’s Jordan Zimmermann and eight RBI.

“It’s been an incredible journey. It really has,'” Burroughs told Caple in June 2011 . “It was just a year ago I was eating cheeseburgers out of garbage cans and living in Motel 6.”

In a social media post published Friday afternoon, the Diamondbacks expressed condolences to Burroughs’s family and friends.

The #Dbacks mourn the passing of Sean Burroughs and offer our condolences to his family and friends. Sean was a member of the 2011 NL West champion team and beloved by his teammates, coaches, staff, and fans. Rest in peace, Sean. pic.twitter.com/7bDKMma8dP — Arizona Diamondbacks (@Dbacks) May 10, 2024

Burroughs signed with Minnesota after the 2011 season and made the Twins’ roster out of spring training in 2012, but he was designated for assignment in May and never appeared in the big leagues again. He continued to play independent league baseball until 2017 and won the Atlantic League batting title with the Long Island Ducks in 2015.

Back in Long Beach, Burroughs had been helping coach his son’s Little League team.

“I have had the privilege of coaching with Sean for the past two years and he always came with a fun and friendly attitude the kids were drawn to, a wealth of baseball knowledge that could get any kid out of a batting rut and humility worth emulating,” David Wittman, the president of Long Beach Little League, wrote on Instagram . “To say this is a huge loss is an understatement. … We will have his family in our thoughts and prayers during this time and try to end the season playing the kind of baseball Coach Sean would be proud of.”

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Nimmo rescues Mets off the bench on Mother’s Day. Senga’s rehab progressing slowly

New York Mets’ Brandon Nimmo (9) hits a game-winning two-run home run during the ninth inning of a baseball game against the Atlanta Braves, Sunday, May 12, 2024, in New York. (AP Photo/Julia Nikhinson)

New York Mets’ Brandon Nimmo (9) runs towards first base after hitting a game-winning two-run home run during the ninth inning of a baseball game against the Atlanta Braves, Sunday, May 12, 2024, in New York. The Mets won 4-3. (AP Photo/Julia Nikhinson)

New York Mets’ Brandon Nimmo (9) celebrates with Francisco Lindor (12) and other teammates after scoring a game-winning two-run home run during the ninth inning of a baseball game against the Atlanta Braves, Sunday, May 12, 2024, in New York. The Mets won 4-3. (AP Photo/Julia Nikhinson)

New York Mets’ Brandon Nimmo, center, celebrates with Francisco Lindor (12) and other teammates after scoring a game-winning two-run home run during the ninth inning of a baseball game against the Atlanta Braves, Sunday, May 12, 2024, in New York. The Mets won 4-3. (AP Photo/Julia Nikhinson)

New York Mets’ Brandon Nimmo (9) signals to fans after scoring a game-winning two-run home run during the ninth inning of a baseball game against the Atlanta Braves, Sunday, May 12, 2024, in New York. The Mets won 4-3. (AP Photo/Julia Nikhinson)

New York Mets outfielder Brandon Nimmo (9) catches a ball hit by Atlanta Braves’ Orlando Arcia during the eighth inning of a baseball game, Sunday, May 12, 2024, in New York. The Mets won 4-3. (AP Photo/Julia Nikhinson)

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NEW YORK (AP) — Brandon Nimmo played only 2 1/2 innings off the bench and still made all the difference.

Held out of the starting lineup Sunday night because of soreness on his right side, Nimmo entered as a pinch runner in the seventh and hit a two-run homer in the ninth that gave the New York Mets a 4-3 victory over the Atlanta Braves.

Swinging a pink bat and wearing pink socks on Mother’s Day, a smiling Nimmo pumped his fist as he circled the bases. He was swarmed by excited teammates at home plate after connecting off left-hander A.J. Minter for the second walk-off homer of his career.

“This definitely is one of the coolest days that I’ve had, for sure,” Nimmo said at his locker afterward, still in full uniform and cleats. “It just was really special.”

Nimmo exited Saturday’s game early with right intercostal irritation, and Mets manager Carlos Mendoza initially intended to give him a full night off Sunday.

But when he saw how comfortable Nimmo looked while taking test swings in the indoor batting cage, Mendoza was convinced the outfielder could be a safe and viable option off the bench.

“I was really impressed with the way he was swinging the bat,” Mendoza said. “Probably an hour before game time, I went back to the training room with him and talked to the trainers and wanted to make sure that we were all clear. And, it wasn’t an easy decision.”

DJ Stewart started for Nimmo in left field and the leadoff spot. Stewart singled twice and drew a one-out walk in the seventh. That’s when he was lifted for Nimmo, who also made an excellent catch at the left-field fence in the eighth.

“It was a good test right away,” Nimmo said. “I couldn’t have imagined that today would work out this way.”

Nimmo was removed from Saturday’s loss after the fourth inning. He felt discomfort when he held up on a swing in the second and was checked by Mendoza and an athletic trainer.

Nimmo initially remained in the game and drew a walk. He played the next two innings in the field before being replaced by Tyrone Taylor.

“I’m pretty optimistic that we caught it early,” Mendoza said before Sunday’s game. “We were able to treat it last night, and he’s feeling good today.”

The 31-year-old Nimmo is hitting .234 with six home runs and a team-high 27 RBIs. He began the day leading New York’s everyday players with a .779 OPS.

Nimmo has appeared in all but one of the team’s 39 games this year and played in 341 of New York’s 362 games dating to the start of the 2022 season. Over his past 14 games, he’s batting .314 (16 for 51) with four homers, four doubles and 12 RBIs.

“Pretty huge. For him to go through what he went through yesterday and today just to be available kind of shows the player he is,” teammate Jeff McNeil said. “Always wants to be on that field helping the team win.”

In other injury news, it’s unclear when No. 1 starter Kodai Senga will throw live batting practice again or begin a minor league rehab assignment.

In his recovery and buildup from a right shoulder capsule strain, Senga faced hitters twice in the past two weeks. But he’s back to just throwing bullpens probably for the next week or so, according to Mendoza, as Senga attempts to fine-tune his mechanics to his own liking.

“We don’t want to put him at risk,” Mendoza said. “He’s very meticulous about his craft.”

Elsewhere, right-hander Tylor Megill (shoulder strain) pitched 5 1/3 shutout innings for Triple-A Syracuse in a win against Lehigh Valley. He allowed seven hits with six strikeouts and no walks, throwing 55 of his 74 pitches for strikes.

New York is expected to reinstate Megill from his minor league rehab assignment this week and decide whether to bring him back to the big leagues or option him to Syracuse.

Right-handed reliever Drew Smith (shoulder soreness) pitched a hitless inning Saturday for Syracuse and could come off the injured list Monday or Tuesday.

Left-hander David Peterson (left hip surgery) is scheduled to make another rehab start Tuesday at Double-A Binghamton. He could be ready to come off the IL when eligible on May 27, Mendoza said.

NOTES: RHP Max Kranick was sent outright to Syracuse on Saturday after getting designated for assignment last Monday.

AP MLB: https://apnews.com/hub/mlb

Softball's sweet 16: Tuesday's second-round playoff previews for Northeast Florida

The Florida High School Athletic Association continues the 2024 softball playoffs with Tuesday's second round for Jacksonville and Northeast Florida. Schedules are as listed by the FHSAA but are subject to change.

All games 7 p.m. Tuesday unless noted

REGION 1-7A

Creekside (21-5) at Lake Brantley (17-8)

There are no easy outs in the Creekside lineup, from the top with Kaylee Martineau and Carly Dall all the way to the No. 9 slot. Victory Tuesday means Creekside's deepest playoff run since 2019. Junior Kayla Morris has 11 doubles for Lake Brantley, which uses a pitching combination with Lauren Compton and Isabella Rosales. The winner will meet Spruce Creek or Sanford Seminole on Friday.

How they got here: Top seed Middleburg rallies past Columbia, Creekside tops Timber Creek

REGION 1-6A

Oakleaf (18-8) at Oviedo Hagerty (22-5)

This is a chance at revenge for Oakleaf, eliminated 2-0 by Hagerty last year on a one-hit shutout by Ella Verne. Hagerty brings long-ball power in abundance, including Alexis Felker (.377, 10 HR, 33 RBI) and Ana Roman (.388, 9 HR, 22 RBI). Oakleaf's battery of Charlotte Maddox and Meshayla Pettaway is among Northeast Florida's best. Pace or Niceville will be up next for the winner.

REGION 1-5A

Gainesville (21-4) at Middleburg (22-4)

A tough assignment for the Broncos against Gainesville freshman Leanna Bourdage, who no-hit them with 18 strikeouts in the district final. But Middleburg is always deadly at the top of the order with Kaelyn Hagan, Kerra Clarida and Alyssa Prather, two years removed from an unforgettable state title . The winner advances to a Friday regional final against Fort Walton Beach or Gulf Breeze.

REGION 1-4A

South Walton (10-10) at Baker County (18-5)

With an eight-game winning streak, Baker County is playing its best softball of 2024. Baleigh Shields is batting .588 with three doubles and a homer in her last five games. Ella Troutt (3-1, 0.68, 110 K; .400, 7 HR, 23 RBI) stands out for South Walton. Baker County defeated the Seahawks 9-0 in last year's regionals. The winner advances to Friday's regional final against Wakulla or West Florida.

REGION 1-3A

Marianna (17-8) at Baldwin (27-1)

The balanced Baldwin lineup churned out six extra-base hits last week, including homers for Cali Hartung and Jazmine Ramos-Merced. Baldwin topped 100 extra-base hits for the year, including 33 homers. They'll face a Stetson-signed pitcher in Kennedy Temples, up to 248 strikeouts with a 1.56 ERA for the Bulldogs, plus long-ball threats Addison Giles and Jadyn Riano.

West Nassau (17-8) at Episcopal (24-3)

Grace Jones has been Northeast Florida's top two-way threat all year, and she showed it against West Nassau in March with a home run and a double in the Eagles' 7-2 victory. Senior Reese Green reached base three times in the regional opener and sparks the always-dangerous Warriors. Episcopal edged West Nassau in a 4-3 extra-inning thriller in regionals in 2021.

REGION 1-2A

Trinity Christian (9-12) at University Christian (16-7)

UC hasn't lost a playoff game before the final four since Rocky Bayou Christian beat them 16-1 on May 3, 2018, when pitching ace Sophia Kardatzke was in sixth grade. Kardatzke, Jaleigha Harris and Kate Dell'Alba lead a loaded lineup. But it takes only one swing of the bat for Mercer-signed senior Hannah Rivers (.355, 6 HR, 19 RBI) to change the game for Trinity.

Tallahassee North Florida Christian (9-14) at Providence (10-12), 5 p.m.

Providence, which has alternated wins and losses for one month, has received consistent production from sophomore infielder Summer Stearns (.458, 6 2B, 3 HR, 1.359 OPS, nine-game hitting streak). For NFC, the player to watch is sophomore Skylar Young, effective at the plate (.338, 8 2B, 4 HR, 23 RBI) and in the circle (5-4, 2.35 ERA, 122 K).

REGION 3-1A

Fort White (13-5) at Branford (22-6)

Fort White defeated Branford 9-3 and 12-5 in the regular season, but the Buccaneers triumphed 3-1 in the district tournament. Fort White dual-threat junior Kadence Compton must overcome Branford's deadly combination of Laila Arnold (15-3, 1.64 ERA, 154 K) and Jesse Frierson (.424, 11 2B, 9 HR). The winner will advance to the May 24 state semifinals in Clermont against an opponent to be determined based on the FHSAA ranking formula.

Stanford Athletics

W : Ladd, Sarah (9-7) L : Krause, Regan (20-6) S : Lopez, Mariah (1)

Game Recap: Softball | 05/10/2024 | Stanford Athletics

Pac-12 Tournament Run Ends

No. 7 card falls 2-1 to utah.

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Master Circulars

Master Circular - Asset Reconstruction Companies

1. Applicability of the Guidelines/ Instructions

(1) 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. However, in respect of the trust/s mentioned in paragraph 7 herein, the provisions of paragraphs 3, 4, 5,8, 9(i), 9(iii) 11,12,13 and 14 shall not be applicable.

1 (2) ARCs covered by Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015 are required to comply with Indian Accounting Standards (Ind AS) for the preparation of their financial statements. In order to promote a high quality and consistent implementation as well as facilitate comparison and better supervision, the Reserve Bank has issued regulatory guidance on Ind AS vide circular DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020 which alongwith subsequent instructions on the subject is applicable on such ARCs for preparation of their financial statements from financial year 2019-20 onwards.

2. Definitions

(1) (i) "Act" means the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

(ii) "Bank" means the Reserve Bank of India constituted under Section 3 of the Reserve Bank of India Act (RBI Act), 1934;

(iii) “Break up Value” means the equity capital and reserves as reduced by intangible assets and revaluation reserves, divided by the number of equity shares of the investee company;

2 (iv) "Change in Management" means effecting change by the borrower at the instance of ARC in the person who has responsibility for the whole or substantially whole of the management of the business of the borrower and/ or other relevant personnel;

3 (v) "Date of acquisition" means the date on which the ownership of financial assets is acquired by ARC either on its own books or directly in the books of the trust;

(vi) "Deposit" means deposit as defined in the Companies (Acceptance of Deposits) Rules 2014 framed under Section 73 of the Companies Act, 2013;

(vii) “Earning value” means the value of an equity share computed by taking the average of profits after tax as reduced by the preference dividend and adjusted for extra-ordinary and non-recurring items, for the immediately preceding three years and further divided by the number of equity shares of the investee company and capitalised at the following rate:

(a) in case of predominantly manufacturing company, eight per cent;

(b) in case of predominantly trading company, ten per cent; and

(c) in case of any other company, including non-banking financial company, twelve per cent;

Note: If, an investee company is a loss-making company, the earning value will be taken at zero;

(viii) “Fair value” means the mean of the earning value and the break up value;

(ix) "Non-performing Asset" (NPA) means an asset in respect of which:

a) Interest or principal (or instalment thereof) is overdue for a period of 180 days or more from the date of acquisition or the due date as per contract between the borrower and the originator, whichever is later;

b) interest or principal (or instalment thereof) is overdue for a period of 180 days or more from the date fixed for receipt thereof in the plan formulated for realisation of the assets referred to in paragraph 6(C) herein;

c) interest or principal (or instalment thereof) is overdue on expiry of the planning period, where no plan is formulated for realisation of the assets referred to in paragraph 6(C) herein; or

d) any other receivable, if it is overdue for a period of 180 days or more in the books of the ARC;

Provided that the Board of Directors of an ARC may, on default by the borrower, classify an asset as NPA even earlier than the period mentioned above (for facilitating enforcement as provided for in Section 13 of the Act).

(x) "Overdue" means an amount which remains unpaid beyond the due date;

(xi) “Owned Fund" means the aggregate of

(a) paid up equity capital;

(b) paid up preference capital, to the extent it is compulsorily convertible into equity capital;

(c) free reserves (excluding revaluation reserve);

(d) credit balance in Profit and Loss Account

as reduced by:

(e) the debit balance on the profit and loss account

(f) Miscellaneous Expenditure (to the extent not written off or adjusted);

(g) book value of intangible assets;

(h) under/ short provision against NPA/ diminution in value of investments;

(i) over recognition of income, if any;

(j) other deductions required on account of the items qualified by the auditors in their report on the financial statements;

(xii) "Planning period" means a period not exceeding 4 six months allowed for formulating a plan for realization of financial assets acquired for the purpose of reconstruction;

(xiii) "Standard asset" means an asset, which is not an NPA;

5 (xiv) "Takeover of Management" means taking over of the responsibility for the management of the business of the borrower with or without effecting change in management personnel of the borrower by the ARC;

(xv) "Trust" means trust as defined in Section 3 of the Indian Trusts Act, 1882.

(2) Words or expressions used but not defined herein and defined in the Act, shall have the same meaning as assigned to them in that Act. Any other words or expressions not defined in that Act shall have the same meaning as assigned to them in the Companies Act, 2013.

3. Registration and matters incidental thereto

(i) Every ARC shall apply for registration in the form of application 6 hosted on the Bank’s website and obtain a certificate of registration from the Bank as provided under Section 3 of the Act;

(ii) The ARC seeking registration from the Bank shall submit their application in the format specified at the clause (i) above, duly filled in with all the relevant annexures/ supporting documents to the Chief General Manager-in-Charge, Department of Regulation, Central Office, Reserve Bank of India, 2nd Floor, Main Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001;

(iii) An ARC, which has obtained a Certificate of Registration issued by the Bank under Section 3 of the Act, can undertake both securitisation and asset reconstruction activities;

7 (iii) (a) An ARC shall commence business within six months from the date of grant of Certificate of Registration by the Bank;

Provided that on the application by the ARC, the Bank may grant extension for such further period, not exceeding 12 months from the date of grant of Certificate of Registration.

8 (iii) (b) Provisions of Section 45 -IA , 45-IB and 45-IC of RBI Act,1934 shall not apply to non-banking financial company, which is an ARC registered with the Bank under Section 3 of the Act;

(iv) Any entity not registered with the Bank under Section 3 of the Act may conduct the business of securitisation or asset reconstruction outside the purview of the Act subject to requisite authorisation/ approval.

9 4. Net Owned Fund

(1) Net Owned Fund (NOF) for ARCs shall be minimum Rs.100 crore on an ongoing basis with effect from April 28, 2017. Accordingly, no ARC shall commence or carry on the business of securitization or asset reconstruction without having NOF of not less than Rs.100 crore.

(2) NOF shall be arrived at by reducing from Owned Fund (OF), the amounts representing

(i) investments of the ARC in shares of –

a. its subsidiaries;

b. companies in the same group;

c. all other ARCs; and

(ii) the book value of debentures, bonds, outstanding loans and advances made to, and deposits with, -

a. subsidiaries of the ARC; and

b. companies in the same group,

to the extent such amount exceeds 10% of the Owned Fund.

5. Permissible Business

(i) An ARC shall commence / undertake only the securitisation and asset reconstruction activities and the functions provided for in Section 10 of the Act.

(ii) An ARC shall not raise monies by way of deposit.

6. Asset Reconstruction

A. (1) Acquisition of Financial Assets

(i) Every ARC shall frame with the approval of its Board of Directors, a 'Financial Asset Acquisition Policy', within 90 days of grant of Certificate of Registration, which shall clearly lay down the policies and guidelines covering, inter alia,

10 (a) norms and procedure for acquisition either on its own books or directly in the books of the trust;

(b) types and the desirable profile of the assets;

(c) valuation procedure ensuring that the assets acquired have realisable value which is capable of being reasonably estimated and independently valued;

(d) in the case of financial assets acquired for asset reconstruction, the broad parameters for formulation of plans for their realisation.

(ii) The Board of Directors may delegate powers to a committee comprising any director and/ or any functionaries of the ARC for taking decisions on proposals for acquisition of financial assets;

(iii) Deviation from the policy should be made only with the approval of the Board of Directors.

11 (iv) Before bidding for the stressed assets, ARCs may seek from the auctioning banks adequate time, not less than two weeks, to conduct a meaningful due diligence of the account by verifying the underlying assets.

12 (2) Permission to acquire financial asset from other ARCs

ARCs will acquire financial asset from other ARCs on the following conditions:

a. The transaction is settled on cash basis;

b. Price discovery for such transaction shall not be prejudicial to the interest of Security Receipt (SR) holders;

c. The selling ARC will utilize the proceeds so received for the redemption of underlying SRs;

d. The date of redemption of underlying SRs and total period of realisation shall not extend beyond eight years from the date of acquisition of the financial asset by the first ARC.

13 (3) Acquisition of financial assets by ARCs from sponsors and lenders

ARCs shall not acquire financial assets from the following on a bilateral basis, whatever may be the consideration:

(i) a bank/ financial institution (FI) which is the sponsor of the ARC;

(ii) a bank/ FI which is either a lender to the ARC or a subscriber to the fund, if any, raised by the ARC for its operations;

(iii) an entity in the group to which the ARC belongs.

However, they may participate in auctions of the financial assets provided such auctions are conducted in a transparent manner, on arm’s length basis and the prices are determined by market forces.

14 (4) Expenses incurred at pre-acquisition stage for performing due diligence etc. for acquiring financial assets from banks/ FIs should be expensed immediately by recognizing the same in the statement of profit and loss for the period in which such costs are incurred. Expenses incurred after acquisition of assets on the formation of the trusts, stamp duty, registration, etc. which are recoverable from the trusts, should be reversed, if these expenses are not realised within 180 days from the planning period or downgrading of SRs [i.e. Net Asset Value (NAV) is less than 50% of the face value of SRs] whichever is earlier.

B. Measures of Asset Reconstruction

15 (1) Change in or Takeover of the Management of the Business of the Borrower

(i) The objective of these guidelines is to ensure fairness, transparency, non-discrimination and non- arbitrariness in the action of ARCs and to build in a system of checks and balances while effecting change in or takeover of the management of the business of the borrower by the ARCs under Section 9(1)(a) of the Act. The ARCs shall follow these instructions while exercising the powers conferred on them under Section 9(1)(a) of the Act.

(ii) An ARC may resort to change in or takeover of the management of the business of the borrower for the purpose of realisation of its dues from the borrower subject to the provisions of these guidelines. The ARCs resorting to takeover of management of the business of the borrower shall do so after complying with the manner of takeover of the management in accordance with the provisions of Section 15 of the Act. On realisation of its dues in full, the ARC shall restore the management of the business to the borrower as provided in Section 15(4) of the Act;

provided that if any ARC has converted part of its debt into shares of a borrower company and thereby acquired controlling interest in the borrower company, such ARC shall not be liable to restore the management of the business to such borrower.

(iii) Eligibility conditions to exercise power for change in or takeover of management

In the circumstances set forth in paragraph (iv) below

(a) An ARC may effect change in or takeover of the management of the business of the borrower, where the amount due to it from the borrower is not less than 25% of the total assets owned by the borrower; and

(b) Where the borrower is financed by more than one secured creditor (including ARC), secured creditors (including ARC) holding not less than 60% of the outstanding SRs agree to such action.

Explanation: 'Total Assets' means total assets as disclosed in its latest audited Balance Sheet immediately preceding the date of taking action.

(iv) Grounds for effecting Change in or Takeover of Management

Subject to the eligibility conditions set forth in paragraph (iii) above, ARC shall be entitled to effect change in management or takeover of the management of business of the borrower on any of the following grounds:

(a) the borrower makes a wilful default in repayment of the amount due under the relevant loan agreement/s;

(b) the ARC is satisfied that the management of the business of the borrower is acting in a manner adversely affecting the interest of the creditors (including ARC) or is failing to take necessary action to avoid any event which would adversely affect the interest of the creditors;

(c) ARC is satisfied that the management of the business of the borrower is not competent to run the business resulting in losses/ non-repayment of dues to the ARC or there is a lack of professional management of the business of the borrower or the key managerial personnel of the business of the borrower have not been appointed for more than one year from the date of such vacancy which would adversely affect the financial health of the business of the borrower or the interests of the ARC as a secured creditor;

(d) the borrower has without the prior approval of the secured creditors (including ARC), sold, disposed of, charged, encumbered or alienated 10% or more (in aggregate) of its assets secured to the ARC;

(e) there are reasonable grounds to believe that the borrower would be unable to pay its debts as per terms of repayment accepted by the borrower;

(f) the borrower has entered into any arrangement or compromise with creditors without the consent of the ARC which adversely affects the interest of the ARC or the borrower has committed any act of insolvency;

(g) the borrower discontinues or threatens to discontinue any of its businesses constituting 10% or more of its turnover;

(h) all or a significant part of the assets of the borrower required for or essential for its business or operations are damaged due to the actions of the borrower;

(i) the general nature or scope of the business, operations, management, control or ownership of the business of the borrower are altered to an extent, which in the opinion of the ARC, materially affects the ability of the borrower to repay the loan;

(j) the ARC is satisfied that serious dispute/s have arisen among the promoters or directors or partners of the business of the borrower, which could materially affect the ability of the borrower to repay the loan;

(k) failure of the borrower to acquire the assets for which the loan has been availed and utilization of the funds borrowed for other than stated purposes or disposal of the financed assets and misuse or misappropriation of the proceeds;

(l) fraudulent transactions by the borrower in respect of the assets secured to the creditor/s.

Explanation A : For the purpose of this paragraph, wilful default in repayment of amount due, includes

(a) non-payment of dues despite adequate cash flow and availability of other resources, or

(b) 'routing of transactions through banks which are not lenders/ consortium members' so as to avoid payment of dues, or

(c) siphoning off funds to the detriment of the defaulting unit, or misrepresentation/ falsification of records pertaining to the transactions with the ARC.

Explanation B : The decision as to whether the borrower is a wilful defaulter or not, shall be made by the ARC keeping in view the track record of the borrower and not on the basis of an isolated transaction/ incident which is not material. The default to be categorized as wilful must be intentional, deliberate and calculated.

(v) Policy regarding Change in or Takeover of Management

(a) Every ARC shall frame policy guidelines regarding change in or takeover of the management of the business of the borrower, with the approval of its Board of Directors and the borrowers shall be made aware of such policy of the ARC.

(b) Such policy shall generally provide for the following :

(i) The change in or takeover of the management of the business of the borrower should be done only after the proposal is examined by an Independent Advisory Committee to be appointed by the ARC consisting of professionals having technical/ finance/ legal background who after assessment of the financial position of the borrower, time frame available for recovery of the debt from the borrower, future prospects of the business of the borrower and other relevant aspects shall recommend to the ARC that it may resort to change in or takeover of the management of the business of the borrower and that such action would be necessary for effective running of the business leading to recovery of its dues;

(ii) The Board of Directors including at least two independent directors of the ARC should deliberate on the recommendations of the Independent Advisory Committee and consider the various options available for the recovery of dues before deciding whether under the existing circumstances the change in or takeover of the management of the business of the borrower is necessary and the decision shall be specifically included in the minutes.

(iii) The ARC shall carry out due diligence exercise and record the details of the exercise, including the findings on the circumstances which had led to default in repayment of the dues by the borrower and why the decision to change in or takeover of the management of the business of the borrower has become necessary.

(iv) The ARC shall identify suitable personnel/ agencies, who can takeover the management of the business of the borrower by formulating a plan for operating and managing the business of the borrower effectively, so that the dues of the ARC may be realized from the borrower within the time frame.

(v) Such plan will also include procedure to be adopted by the ARC at the time of restoration of the management of the business to the borrower in accordance with paragraph 6(B)(1)(ii) above, borrower's rights and liabilities at the time of change in or takeover of management by the ARC and at the time of restoration of management back to the borrower, rights and liabilities of the new management taking over management of the business of the borrower at the behest of ARC. It should be clarified to the new management by the ARC that the scope of their role is limited to recovery of dues of the ARC by managing the affairs of the business of the borrower in a prudent manner.

Explanation: To ensure independence of members of Independent Advisory Committee (IAC), such members should not be connected with the affairs of the ARC in any manner and should not receive any pecuniary benefit from the ARC except for services rendered for acting as member of IAC.

(vi) Procedure for Change in or Takeover of Management

(a) The ARC shall give a notice of 60 days to the borrower indicating its intention to effect change in or takeover of the management of the business of the borrower and calling for objections, if any.

(b) The objections, if any, submitted by the borrower shall be initially considered by the IAC and thereafter the objections along with the recommendations of the IAC shall be submitted to the Board of Directors of the ARC. The Board of Directors of ARC shall pass a reasoned order within a period of 30 days from the date of expiry of the notice period, indicating the decision of the ARC regarding the change in or takeover of the management of the business of the borrower, which shall be communicated to the borrower.

(vii) Reporting

ARCs shall report to the Bank all cases where they have taken action to cause change in or takeover of the management of the business of the borrower for realization of its dues from the borrower in terms of Circular DNBS(PD)CC.No.12/SCRC/10.30.000/2008-2009 dated September 26, 2008 as amended from time to time .

(2) Sale or Lease of a part or whole of the business of the borrower

No ARC shall take the measures specified in Section 9(1)(b) of the Act, until the Bank issues necessary guidelines in this behalf.

(3) Rescheduling of Debts

(i) Every ARC shall frame a policy, duly approved by the Board of Directors, laying down the broad parameters for rescheduling of debts due from borrowers;

(ii) All proposals should be in line with and supported by an acceptable business plan, projected earnings and cash flows of the borrower;

(iii) The proposals should not materially affect the asset liability management of the ARC or the commitments given to investors;

(iv) The Board of Directors may delegate powers to a committee comprising any director and / or any functionaries of the company for taking decisions on proposals for reschedulement of debts;

(v) Deviation from the policy should be made only with the approval of the Board of Directors.

16 (vi) In cases where ARCs have exposure to a borrower in respect of which a resolution plan is under implementation in terms of the Prudential Framework for Resolution of Stressed Assets dated June 7, 2019 , as amended from time to time, ARCs shall also sign the inter-creditor agreement (ICA) and adhere to all its provisions .

(4) Enforcement of Security Interest

17 (i) 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.

(ii) While taking recourse to the sale of secured assets in terms of Section 13(4) of the Act, a ARC may itself acquire the secured assets, either for its own use or for resale, only if the sale is conducted through a public auction.

(5) Settlement of dues payable by the borrower

(i) (a) Every ARC shall frame a policy duly approved by the Board of Directors laying down the broad parameters for settlement of debts due from borrowers;

(b) The policy may, interalia, cover aspects such as cut-off date, formula for computation of realisable amount and settlement of account, payment terms and conditions, and borrower's capability to pay the amount settled;

(c) Where the settlement does not envisage payment of the entire amount agreed upon in one installment, the proposals should be in line with and supported by an acceptable business plan, projected earnings and cash flows of the borrower;

(d) The proposal should not materially affect the asset liability management of the ARC or the commitments given to investors;

(e) The Board of Directors may delegate powers to a committee comprising any director and/ or any functionaries of the company for taking decisions on proposals for settlement of dues;

(f) Deviation from the policy should be made only with the approval of the Board of Directors.

18 (ii) Promoters of the defaulting company/ borrowers or guarantors are allowed to buy back their assets from the ARCs provided the following conditions are met:

(a) Such a settlement is considered helpful in

(i) minimizing or eliminating the cost of litigation and the attendant loss of time;

(ii) arresting the negative impact of diminution in the value of secured assets which are likely to rapidly lose value once a unit becomes non operational;

(iii) where the recovery/ resolution process would appear to be rather uncertain and;

(iv) where such settlement will be beneficial for restructuring purposes.

(b) The valuation of the asset is worked out by the ARCs after factoring in thefollowing components:

(i) The current value of the proposed settlement (valuation of the asset not more than six months old) vis-à-vis the net present value of the recoveries under the alternative mode of resolution taking into consideration the timelines involved therein.

(ii) likely positive or negative changes in the value of the secured asset on account of passage of time.

(iii) likely diminution in realisation due to accumulation of statutory dues, liability to employees etc.

(iv) other factors, if any, which may affect recoveries.

(c) ARCs shall frame a Policy duly approved by the Board of Directors, which should include the above aspects besides those already contained in clause 6(B)(5)(i)(a) mentioned above.

19 (6) Conversion of any portion of debt into equity of a borrower company

(i) Every ARC shall frame a policy, duly approved by the Board of Directors, laying down the broad parameters for conversion of debt into shares of the borrower company;

In cases of the Financial Assets which have turn around potential after restructuring but normally with huge default and unsustainable level of debt, it will be necessary to arrive at sustainable level of debt, on the basis of evaluation of detailed business plan with projected level of operations, which can be serviced by the company. A part of residual unsustainable debt may have to be converted to equity for an optimal debt equity structure. While ARCs are permitted to have significant influence or have a say in decisions surrounding the borrower company’s turn around through conversion of debt into shares, they should not be seen to be running the companies. The shareholding of the ARC shall not exceed 26% of the post converted equity of the company under reconstruction.

20 Provided that ARCs meeting the criteria set out in sub-paragraph (a) below shall be exmepted from the cap of 26% subject to compliance with the provisions of the Act, Guidelines/ Instructions issued by the Bank from time to time as applicable to ARCs as well as Foreign Exchange Management Act, 1999, Reserve Bank of India Act, 1934, Companies Act, 2013, SEBI Regulations and other relevant Statutes. The extent of shareholding post conversion of debt into equity shall be in accordance with permissible Foreign Direct Investment (FDI) limit for that specific sector.

(a) ARCs that meet the conditions mentioned below are exempted from the limit of shareholding at 26% of post converted equity of the borrower company:

(i) The ARC shall be in compliance with NOF requirement of Rs.100 crore on an ongoing basis;

(ii) At least half of the Board of Directors of the ARC comprises of independent directors;

(iii) The ARC shall frame policy on debt to equity conversion with the approval of its Board of Directors and may delegate powers to a Committee comprising majority of independent directors for taking decisions on proposals of debt to equity conversion;

(iv) The equity shares acquired under the scheme shall be periodically valued and marked to market. The frequency of valuation shall be at least once in a month.

(b) The ARC shall explore the possibility of preparing a panel of sector-specific management firms/ individuals having expertise in running firms/ companies which could be considered for managing the companies.

C. Plan for realisation of financial assets

(i) Every ARC may, within the planning period, formulate a plan for realisation of assets, which may provide for one or more of the following measures :

(a) Rescheduling of payment of debts payable by the borrower;

(b) Enforcement of security interest in accordance with the provisions of the Act;

(c) Settlement of dues payable by the borrower;

(d) Change in or take over of the management, or sale or lease of the whole or part of business of borrower as stated in paragraphs 6(B)(1) and 6(B)(2) herein above;

21 (e) conversion of any portion of debt into shares of a borrower company.

22 (ii) ARC shall formulate the policy for realisation of financial assets under which the period for realisation shall not exceed five years from the date of acquisition of the financial asset concerned.

(iii) The Board of Directors of the ARC may increase the period for realisation of financial assets so that the total period for realisation shall not exceed eight years from the date of acquisition of financial assets concerned.

(iv) In case the ARC is one of the lenders in an account where a resolution plan has been finalised and the same extends beyond the maximum resolution period allowed for ARCs as per clause (iii) above, the ARC may accept a resolution period co-terminus with other secured lenders.

(v) The Board of Directors of the ARC shall specify the steps that will be taken by the ARC to realise the financial assets within the time frame referred to in clause (ii) or (iii) above as the case may be.

(vi) The Qualified Buyers (QBs) shall be entitled to invoke the provisions of Section 7(3) of the Act only at the end of such extended period, if the period for realisation is extended under clause (iii) above.

7. Securitisation

23 (1) Issue of SRs - An ARC shall give effect to the provisions of Sections 7(1) and 7(2) of the Act through one or more trusts set up exclusively for the purpose. The ARC shall transfer the assets to the said trusts at the price at which those assets were acquired from the originator if the assets are not acquired directly on the books of the trust :

(i) The trusts shall issue SRs only to QBs; and hold and administer the financial assets for the benefit of the QBs;

(ii) The trusteeship of such trusts shall vest with the ARC;

(iii) The ARC proposing to issue SRs, shall, prior to such an issue, formulate a policy, duly approved by the Board of Directors, providing for issue of SRs under each scheme formulated by the trust;

(iv) The policy referred to in clause (iii) above shall provide that the SRs issued would be transferable / assignable only in favour of other QBs.

24 (2) Investment in SRs issued by the trusts floated by ARC

ARC shall by transferring funds, invest a minimum of 15% of the SRs of each class issued by them under each scheme on an ongoing basis till the redemption of all the SRs issued under such scheme.

25 (3) Restructuring Support Finance

An ARC can utilize a part of funds raised under a scheme from the QBs for restructuring of financial assets acquired under the relative scheme subject to following conditions:

(i) ARCs with acquired assets in excess of Rs.500 crore can float the fund under a scheme which envisages the utilization of part of funds raised from QBs in terms of Section 7(2) of the Act, for restructuring of financial assets acquired out of such funds.

(ii) The extent of funds that shall be utilized for reconstruction purpose should not be more than 25% of the funds raised under the scheme in terms of Section 7(2) of the Act. The funds raised to be utilized for reconstruction (within the ceiling of 25%) should be disclosed upfront in the scheme. Further, the funds utilized for reconstruction purposes should be separately accounted for.

(iii) Every ARC shall frame a policy, duly approved by the Board of Directors, laying down the broad parameters for utilization of funds raised from QBs under such a scheme.

(4) Disclosures

Every ARC intending to issue SRs shall make disclosures as mentioned in the Annex .

26 (5) In order to enable the QBs to know the value of their investments in the SRs issued by the ARC, the ARCs registered with the Bank under the Act, were advised to declare NAV of the SRs issued by them at periodical intervals.

8. Requirement as to capital adequacy

(1) Every ARC shall maintain, on an ongoing basis, a capital adequacy ratio, which shall not be less than fifteen percent of its total risk weighted assets. The risk-weighted assets shall be calculated as the weighted aggregate of On-Balance Sheet and Off-Balance Sheet items as detailed hereunder:

Weighted risk assets

9. Deployment of Funds

(i) The ARC, may as a sponsor and for the purpose of establishing a joint venture, invest in the equity share capital of a ARC formed for the purpose of asset reconstruction;

27 (ii) The ARC may deploy any surplus funds available with it, in terms of a policy framed in this regard by its Board of Directors, only in Government securities and deposits with scheduled commercial banks, Small Industries Development Bank of India, National Bank for Agriculture and Rural Development or such other entity as may be specified by the Bank from time to time;

28 (iii) No ARC shall, invest in land or building,

Provided that the restriction shall not apply to investment by ARC in land and buildings for its own use up to 10% of its owned fund;

Provided further that the restriction shall not apply to land and building acquired by the ARC in satisfaction of claims in ordinary course of its business of reconstruction of assets in accordance with the provisions of Act;

Provided further that any land and / or building acquired by ARC in the ordinary course of its business of reconstruction of assets while enforcing its security interest, shall be disposed of within a period of five years from the date of such acquisition or such extended period as may be permitted by the Bank in the interest of realization of the dues of the ARC.

29 (iv) ARCs may deploy their funds for undertaking restructuring of acquired loan account with the sole purpose of realizing their dues.

10. Accounting Year

Every ARC shall prepare its balance sheet and profit and loss account as on March 31 every year. ARCs are advised in their balance sheet to classify all the liabilities due within one year as "current liabilities" and assets maturing within one year along with cash and bank balances as "current assets". Capital and Reserves will be treated as liabilities on liability side while investment in SRs and long-term deposits with banks will be treated as fixed assets on the assets side.

11. Asset Classification

(1) Classification

(i) Every ARC shall, after taking into account the degree of well-defined credit weaknesses and extent of dependence on collateral security for realisation, classify the assets 30 [held in its own books] into the following categories, namely :

(a) Standard assets

(ii) The NPAs shall be classified further as

(a) 'Sub-standard asset' for a period not exceeding twelve months from the date it was classified as NPA;

b) 'Doubtful asset' if the asset remains a sub-standard asset for a period exceeding twelve months;

31 (c) 'Loss asset' if (A) the asset is non-performing for a period exceeding 36 months; (B) the asset is adversely affected by a potential threat of non-recoverability due to either erosion in the value of security or non-availability of security; (C) the asset has been identified as loss asset by the ARC or its internal or external auditor; or (D) the financial asset including SRs is not realized within the total time frame specified in the plan for realization formulated by the ARC under paragraph 6(C)(ii) or 6(C)(iii) and the ARC or the trust concerned continues to hold those assets.

(iii) Assets acquired by the ARC for the purpose of asset reconstruction may be treated as standard assets during the planning period, if any.

(2) Asset Reconstruction: Renegotiated / Rescheduled assets

(i) Where the terms of agreement regarding interest and/ or principal relating to standard asset have been renegotiated or rescheduled by an ARC (other wise than during planning period) the asset concerned shall be classified as sub-standard asset with effect from the date of renegotiation/ reschedulement or continue to remain as a sub-standard or doubtful asset as the case be.

(ii) The asset may be upgraded as a standard asset only after satisfactory performance for a period of twelve months as per the renegotiated / rescheduled terms.

(3) Provisioning requirements

Every ARC shall make provision against NPAs, as under: -

12. Investments

32 (i) Considering nature of investment in SRs where underlying cash flows are dependent on realization from non-performing assets, it can be classified as available for sale. Hence investments in SRs may be aggregated for the purpose of arriving at net depreciation/ appreciation of investments under the category. Net depreciation, if any shall be provided for. Net Appreciation, if any should be ignored.

(ii) All other investments should be valued at lower of cost or realisable value. Where market rates are available, the market value would be presumed to be the realisable value and in cases where market rates are not available, the realisable value should be the fair value. However, investments in other registered ARC shall be treated as long term investments and valued in accordance with the Accounting Standards and Guidance notes issued by the Institute of Chartered Accountants of India (ICAI).

13. Income recognition

33 (i) Yield on SRs should be recognised only after the full redemption of the entire principal amount of SRs. This will be effective from the accounting year 2014-15.

(ii) Upside income should be recognized only after full redemption of SRs. This will be effective from the accounting year 2014-15.

34 (iii) Management fees should be calculated and charged as a percentage of the NAV calculated at the lower end of the range of the Recovery Rating specified by the Credit Rating Agency (CRA) provided that the same is not more than the acquisition value of the underlying asset. However, management fees are to be reckoned as a percentage of the actual outstanding value of SRs, before the availability of NAV of SRs.

Management fees may be recognized on accrual basis. Management fees recognized during the planning period must be realized within 180 days from the date of expiry of the planning period. Management fees recognized after the planning period should be realized within 180 days from the date of recognition. Unrealised Management fees should be reversed thereafter. Further any unrealized Management fees will be reversed if before the prescribed time for realisation, NAV of the SRs fall below 50% of face value. However, ARCs are allowed to write off the accrued unrealised Management Fee receivables prior to March 31, 2014 in a staggered manner in four half-yearly instalments over a period of two years, 2014-15 and 2015-16 subject to the disclosure of age wise such receivables in the Balance Sheet of the company.

(iv) The income recognition on all other items shall be based on recognised accounting principles;

(v) All the Accounting Standards and Guidance Notes issued by the ICAI shall be followed in so far as they are not inconsistent with the guidelines contained herein;

(vi) Interest and any other charges in respect of all the NPAs shall be recognised only when they are actually realised. Any such unrealised income recognised by an ARC before the asset became non-performing and remaining unrealised shall be derecognised.

14. Disclosures in the balance sheet

(1) Every ARC shall, in addition to the requirements of Schedule III of the Companies Act, 2013 , prepare the following schedules and annex them to its balance sheet :

Continuing Disclosures

(i) The names and addresses of the banks/ FIs from whom financial assets were acquired and the value at which such assets were acquired from each such bank/ FIs;

(ii) Dispersion of various financial assets industry-wise and sponsor-wise. (dispersion is to be indicated as a percentage to the total assets);

(iii) Details of related parties as per Accounting Standard and Guidance notes issued by the ICAI and the amounts due to and from them;

(iv) A statement clearly charting therein the migration of financial assets from standard to non-performing;

35 [(v) Value of financial assets acquired during the financial year either on its own books or in the books of the trust;

(vi) Value of financial assets realized during the financial year;

(vii) Value of financial assets outstanding for realization as at the end of the financial year;

(viii) Value of SRs redeemed partially, and the SRs redeemed fully during the financial year;

(ix) Value of SRs pending for redemption as at the end of the financial year;

(x) Value of SRs which could not be redeemed as a result of non-realization of the financial asset as per the policy formulated by the ARC under Paragraph 6(C)(ii) or 6(C)(iii);

(xi) Value of land and/ or building acquired in ordinary course of business of reconstruction of assets (year wise);]

36 (xii) The basis of valuation of assets if the acquisition value of the assets is more than the Book Value;

(xiii) The details of the assets disposed of (either by write off or by realization) during the year at a discount of more than 20% of valuation as on the previous year end and the reasons therefor;

(xiv) The details of the assets where the value of the SRs has declined more than 20% below the acquisition value.

(2) (i) The accounting policies adopted in preparation and presentation of the financial statements shall be in conformity with the applicable prudential norms prescribed by the Bank;

(ii) Where any of the accounting policies is not in conformity with these guidelines/ instructions, the particulars of departures shall be disclosed together with the reasons therefor and the financial impact on account thereof. Where such an effect is not ascertainable, the fact shall be so disclosed citing the reasons therefor;

(iii) An inappropriate treatment of an item in Balance Sheet or Profit and Loss Account cannot be deemed to have been rectified either by disclosure of accounting policies used or by disclosure in notes to balance sheet and profit and loss account.

15. Internal Audit

Every ARC shall put in place an effective Internal Control System providing for periodical checks and review of the asset acquisition procedures and asset reconstruction measures followed by the company and matters related thereto.

16. Exemptions

The Bank may, if it considers necessary for avoiding any hardship to ARC, or for any other just and sufficient reason exempt all ARCs or a particular ARC or class of ARCs, from all or any of the provisions of these guidelines/ instructions either generally or for any specified period, subject to such conditions as the Bank may impose.

17. Submission of Quarterly Statement

37 ARCs are advised to follow the instructions contained in Master Direction-Non-Banking Financial Company Returns (Reserve Bank) Directions, 2016 as amended from time to time.

18. Submission of Audited Balance Sheet

38 All the ARCs were advised to furnish a copy of audited balance sheet along with the Directors' Report / Auditors' Report every year within one month from the date of Annual General Body Meeting, in which the audited accounts are adopted, to the Regional Office of the Department of Supervision of the Bank under whose jurisdiction it is registered .

39 19. Submission of data to Credit Information Companies

(1) Every ARC shall become a member of at least one credit information company (CIC) which has obtained certificate of registration from the Bank in terms of Section 5 of the Credit Information Companies (Regulation) Act, 2005.

(2) ARC shall provide periodically to the CIC of which it is a member, accurate data / history of the borrowers.

(3) ARCs should submit the list of wilful defaulters as at end of March, June, September and December every year to the CIC of which it is a member.

(4) Every ARC shall place on its website the list of suit-filed accounts of wilful defaulters.

For the purpose of this paragraph, the expression “wilful defaulter” shall have the same meaning as is assigned to that expression in the circulars issued to banks by Department of Regulation.

20. Filing of transactions with Central Registry set up under the Act

ARCs shall file and register the records of all transactions related to securitisation, reconstruction of financial assets and creation of security interest, if any, with Central Registry.

40 21. Submission of Financial Information to Information Utilities

Instructions contained in Circular DBR.No.Leg.BC.98/09.08.019/2017-18 dated December 19, 2017 on the captioned subject are applicable to all registered ARCs.

41 22. Reporting to Indian Banks’ Association (IBA) – The ARCs shall report to IBA the details of Chartered Accountants, Advocates and Valuers (who have committed serious irregularities in the course of rendering their professional services) for including in the IBA database of Third Party Entities involved in fraud. However, the ARCs will have to ensure that they follow meticulously the procedural guidelines issued by IBA (Circular No.RB-II/Fr./Gen/3/1331 dated August 27, 2009) and also give the parties a fair opportunity to explain their position and justify their action before reporting to IBA. If no reply/ satisfactory clarification is received from them within one month, the ARCs shall report their details to IBA. ARCs should consider this aspect before assigning any work to such parties in future.

42 23. Bank’s prior approval for any substantial change in management by way of transfer of shares

Notwithstanding anything to the contrary contained in the terms and conditions stipulated in the certificate of registration issued under Section 3 of the Act, ARCs shall obtain prior approval of Reserve Bank only for transfers that result in substantial change in management namely –

any transfer of shares by which the transferee becomes a sponsor

any transfer of shares by which the transferor ceases to be a sponsor

an aggregate transfer of ten percent or more of the total paid up share capital of the ARC by a sponsor during the period of five years commencing from the date of certificate of registration

Explanation : For the purposes of this clause, a transfer shall be deemed to be a transfer of more than ten percent of the total paid up share capital of the ARC if the aggregate of all the transfer of shares made by the sponsor prior to that transfer, and including that transfer, is 10% or more of the total paid up share capital of the ARC.

24. Fit and Proper Criteria for Sponsors/ Investors

43 (1) The provisions of the Master Direction - Fit and Proper Criteria for Sponsors - Asset Reconstruction Companies (Reserve Bank) Directions, 2018 as amended from time to time, shall apply to the existing and proposed sponsors of the ARCs.

44 (2) All ARCs shall comply with the instructions contained in the Bank’s circular DOR.CO.LIC.CC No.119/03.10.001/2020-21 February 12, 2021 as amended from time to time.

45 25. Fair Practices Code

In order to achieve the highest standards of transparency and fairness in dealing with stakeholders, ARCs are advised to put in place Fair Practices Code (FPC) duly approved by their Board. The following paragraphs provide the minimum regulatory expectation while each ARC’s Board is free to enhance its scope and coverage. The FPC must be followed in right earnest and the Board must involve itself in its evolution and proper implementation at all times. The FPC shall be placed in public domain for information of all stakeholders.

(1) ARC shall follow transparent and non-discriminatory practices in acquisition of assets. It shall maintain arm’s length distance in the pursuit of transparency.

(2) In order to enhance transparency in the process of sale of secured assets,

(i) invitation for participation in auction shall be publicly solicited; the process should enable participation of as many prospective buyers as possible;

(ii) terms and conditions of such sale may be decided in wider consultation with investors in the SRs as per the Act;

(iii) spirit of Section 29A of Insolvency and Bankruptcy Code, 2016 may be followed in dealing with prospective buyers.

(3) ARCs shall release all securities on repayment of dues or on realisation of the outstanding amount of loan, subject to any legitimate right or lien for any other claim they may have against the borrower. If such right of set off is to be exercised, the borrower shall be given notice about the same with full particulars about the remaining claims and the conditions under which ARCs are entitled to retain the securities till the relevant claim is settled/ paid.

(4) ARCs shall put in place Board approved policy on the management fee, expenses and incentives, if any, claimed from trusts under their management. The Board approved policy should be transparent and ensure that management fee is reasonable and proportionate to financial transactions.

(5) ARCs intending to outsource any of their activity shall put in place a comprehensive outsourcing policy, approved by the Board, which incorporates, inter alia, criteria for selection of such activities as well as service providers, delegation of authority depending on risks and materiality and systems to monitor and review the operations of these activities/ service providers. ARC shall ensure that outsourcing arrangements neither diminish its ability to fulfil its obligations to customers and the Bank nor impede effective supervision by the Bank. The outsourced agency, if owned/controlled by a director of the ARC, the same may be made part of the disclosures specified in the Master Circular.

(6) In the matter of recovery of loans, ARCs shall not resort to harassment of the debtor. ARCs shall ensure that the staff are adequately trained to deal with customers in an appropriate manner.

(i) ARCs shall put in place a Board approved Code of Conduct for Recovery Agents and obtain their undertaking to abide by that Code. ARCs, as principals, are responsible for the actions of their Recovery Agents.

(ii) It is essential that the Recovery Agents observe strict customer confidentiality.

(iii) ARCs shall ensure that Recovery Agents are properly trained to handle their responsibilities with care and sensitivity, particularly in respect of aspects such as hours of calling, privacy of customer information, etc. They should ensure that Recovery Agents do not induce adoption of uncivilized, unlawful and questionable behaviour or recovery process.

(7) ARCs should constitute Grievance Redressal machinery within the organisation. The name and contact number of designated grievance redressal officer of the ARC should be mentioned in the communication with the borrowers. The designated officer should ensure that genuine grievances are redressed promptly. ARCs' Grievance Redressal machinery will also deal with the issue relating to services provided by the outsourced agency and recovery agents, if any.

(8) ARCs shall keep the information, they come to acquire in course of their business, strictly confidential and shall not disclose the same to anyone including other companies in the group except when (i) required by law; (ii) there is duty towards public to reveal information; or (iii) there is borrower’s permission.

(9) Compliance with FPC shall be subject to periodic review by the Board.

(1) Disclosure in Offer Document

A. Relating to the Issuer of SRs

i. Name, place of Registered Office, date of incorporation, date of commencement of business of the ARC;

ii. Particulars of sponsors, shareholders, and a brief profile of the Directors on the Board of the ARC with their qualifications and experience;

iii. Summary of financial information of the company for the last three years or since commencement of business of the company, whichever is shorter;

iv. Details of Securitisation / Asset Reconstruction activities handled, if any, in the last three years or since commencement of business, whichever is shorter.

v. Whether the scheme envisages the utilization of part of funds raised for restructuring of financial assets acquired out of such funds? If so, the percentage of funds raised which will be utilized for restructuring purposes.

B. Terms of Offer

i. Objects of offer;

ii. Description of the instrument giving particulars relating to its form, denomination, issue price, etc together with an averment that the transferability of SRs is restricted to the QBs;

iii. Arrangements made for management of assets and extent of management fee charged by ARC;

iv. Interest rate/ probable yield;

v. Terms of payment of principal/ interest, date of maturity/ redemption;

vi. Servicing and administration arrangement;

vii. Details of credit rating, if any, and a summary of the rationale for the rating;

viii. Description of assets being securitized including date of acquisition, valuation, and the interest of the ARC in the assets at the time of issue of SR;

ix. Geographical distribution of asset pool;

x. Residual maturity, interest rates, outstanding principal of the asset pool;

xi. Nature and value of underlying security, expected cash flows, their quantum and timing, credit enhancement measures;

xii. Policy for acquisition of assets and valuation methodology adopted;

xiii. Terms of acquisition of assets from banks/ FIs;

xiv. Details of performance record with the Originators;

xv. Terms of replacement of assets, if any, to the asset pool;

xvi. Statement of risk factors, particularly relating to future cash flows and steps taken to mitigate the same;

xvii. Arrangements, if any, for implementing asset reconstruction measures in case of default;

xviii. Duties of the Trustee;

xix. Specific asset reconstruction measures, if any, on which approvals will be sought from investors;

xx. Dispute Redressal Mechanism.

(2) Disclosure on quarterly basis

i. Defaults, prepayments, losses, if any, during the quarter;

ii. Change in credit rating, if any;

iii. Change in profile of the assets by way of accretion to or realisation of assets from the existing pool;

iv. Collection summary for the current and previous quarter;

v. Any other material information, which has a bearing on the earning prospects affecting the QBs.

Guidance Notes for Asset Reconstruction Companies

The Bank has evolved Guidance Note, gist of which is given below. The words and expressions used in these notes shall have the same meaning as in the Act.

(1) Acquisition of Financial Assets

i) Every ARC is required to evolve Asset Acquisition Policy within 90 days of getting the certificate of registration which shall, inter alia, provide that the transactions will take place in a transparent manner and at a fair price in a wellinformed market, and the transactions are executed on arm's length basis by exercise of due diligence.

ii) The share of financial assets to be acquired from the bank / FI should be appropriately and objectively worked out keeping in view the provision in the Act requiring consent of secured creditors holding not less than 60% of the amount outstanding to a borrower for the purpose of enforcement of security interest;

iii) For easy and faster realisability, all the financial assets due from a single debtor to various banks/ FIs may be considered for acquisition. Similarly, financial assets having linkages to the same collateral may be considered for acquisition to ensure relatively faster and easy realisation.

iv) Both fund and non-fund based financial assets may be included in the list of assets for acquisition. Assets classified as SMA-2 in the books of the originator may also be acquired.

v) Acquisition of funded assets should not include takeover of outstanding commitments, if any, of any bank/ FI to lend further. Terms of acquisition of security interest in non-fund transactions, should provide for the relative commitments to continue with bank/ FI, till demand for funding arises.

vi) Loans not backed by proper documentation should be avoided.

vii) As far as possible, the valuation process should be uniform for assets of same profile and should ensure that the valuation of the financial assets is done in scientific and objective manner. Valuation may be done internally or by engaging an independent agency, depending upon the value of the assets. Ideally, valuation may be entrusted to the committee authorised to approve acquisition of assets, which may carry out the task in line with an Asset Acquisition Policy laid down by the board of directors in this regard.

viii) The assets acquired by ARC should be transferred to the trusts set up by the ARC at the price at which these were acquired from the originator of the asset. However, there is no restriction on acquisition of assets from banks/ FIs directly in the books of trusts set up by ARC.

(2) Issuance of SRs

i) Every ARC shall issue the SRs through the trust set up exclusively for the purpose. The trusteeship of such trust shall vest with the ARC.

ii) The trust shall issue SRs only to QBs and such SRs shall be transferable/ assignable only in favour of other QBs.

iii) Every ARC intending to issue SRs shall make disclosures in the offer document as prescribed by the Bank from time to time.

46 [(iv) Commonality and conflict of interest, if any, between the ARC and Rating Agency should be disclosed.

(v) Special features of SRs

(a) SRs cannot be strictly characterized as debt instruments since they combine the features of both equity and debt. However, these are recognized as securities under Securities Contracts (Regulation) Act, 1956.

(b) The cash flows from the underlying assets cannot be predicted in terms of value and intervals.

(c) These instruments when rated would generally be below investment grade. These instruments are privately placed.

(vi) Rating/ Grading of SRs

47 (a) Every ARC shall obtain initial rating/ grading of SRs from a 48 [SEBI registered] CRA within a period of six months from the date of acquisition of assets and declare forthwith, the NAV of the SRs issued by it. Thereafter, ARCs will get the rating/ grading of SRs reviewed from a registered CRA as on June 30, and December 31 every year and declare the NAV of SRs forthwith, to enable the QBs to value their investment in SRs. For arriving at NAV, ARC shall get the SRs rated on ‘recovery rating scale’ and require the rating agencies to disclose the rationale for rating.

(b) The rating/ grading should be based on 'recovery risk’ as against 'default’ which is the basis for rating assignments in normal assets, i.e. how much more can be recovered instead of timely payment. Rating should reflect present value of the anticipated recoverability of future cash flows.

(c) The ratings will be assigned on a specifically developed rating scale called “Recovery Rating (RR) scale”. Each rating category in the recovery scale will have an associate range of recovery, expressed in percentage terms, which can be used for arriving at NAV of SRs. Symbols should be assigned by rating agencies to the associated range of recovery, which would inter-se not deviate by a specified percentage points, say (+/ -) 10%. The rating would be indicative.

(d) The Recovery Rating should be assessed after factoring in any other relevant obligation and not on the original debt obligation.

(e) The other key factors that should be factored in while assigning Recovery Rating are extent of debt acquired, composition of lenders, collaterals available, security and seniority of debt, individual lender vis-à-vis institutional lender, estimated cash flows, uncertainty in realising expected cash flows in initial period, management, business risk, financial risk, etc.

(f) The Recovery Rating should reflect changes like change in resolution strategy of the ARC that take place from time to time.

(g) The Recovery Rating will factor in likely cash flows from the underlying impaired assets till the maturity of the SRs.

(h) The Recovery Rating should comprise of rating of not only the SRs of the scheme as a whole but wherever feasible a desegregation of each component in the scheme, which means the underlying assets of each entity in the scheme forming the basket should also be rated.

(i) The Rating Agency should disclose the rationale for rating on request.

(vii) Methodology for valuation of SRs for declaration of NAV

Each rating category in the recovery scale will have an associate range of recovery, expressed in percentage terms, which can be used for computing NAV of SRs. The NAV should be restricted within the recovery range associated with the rating assigned to the SRs. The ARC based on its recovery experience should choose a particular percentage within the recovery range indicated by the Rating Agency. The Recovery Rating percentage so picked by the ARC multiplied by the face value of the SR will give the NAV. The ARC should provide the rationale for selection of the particular percentage of Recovery Rating. For example, if range is between 81% - 90%, ARC may pick up 87% based on its judgement. The face value of say Rs 10 multiplied by the recovery percentage i.e. 87% would give the NAV as Rs 8.70].

List of Notifications Issued

Notification No.DNBS.1/CGM(CSM)/2003 dated March 7, 2003

Notification No.DNBS.2/CGM(CSM)-2003, dated April 23, 2003

Notification No.DNBS.3/CGM(OPA)/2003 dated August 28, 2003

Notification No.DNBS.4/ED(SG)/-2004 dated March 29, 2004

Notification No.DNBS.5/CGM(PK)/-2006 dated September 20, 2006

Notification No.DNBS.6/CGM(PK)/-2006 dated October 19, 2006

Notification DNBS(PD-SC/RC)No.7/CGM(ASR)/-2010 dated April 21, 2010

Notification No.DNBS.PD(SC/RC).8/CGM(ASR)-2010 dated April 21, 2010 .

Notification No.DNBS.PD(SC/RC).9/CGM(ASR)-2010 dated April 21, 2010

Notification No.DNBS.PD(SC/RC)10/PCGM(NSV)-2014 dated January 23, 2014

Notification No.DNBS.PD(SC/RC)11/PCGM(KKV)-2014 dated August 05, 2014

Notification No.DNBS.PD(SC/RC)12/PCGM(KKV)-2014 dated August 07, 2014

Notification No.DNBR.PD(SC/RC)01/CGM(CDS)-2014-15 dated February 24, 2015

Notification No.DNBR.PD(SC/RC)02/CGM(CDS)-2014-15 dated May 07, 2015

Notification DNBR (PD-ARC) No.05/ED(SS)-2017 dated April 28, 2017

List of Circulars Issued

DNBS.PD.CC.1/SCRC/10.30/2002-03 dated April 23, 2003

DNBS.PD.CC.2/SCRC/10.30/2003-04 dated March 29, 2004

DNBS.PD.CC.3/SCRC/10.30.000/2006-07 dated September 20, 2006

DNBS.PD.CC.4/SCRC/10.30.000/2006-07 dated October 19, 2006

DNBS.(PD)CC.No.5/SCRC/10.30.000/2006-07 dated April 25, 2007

DNBS.(PD)CC.No.6/SCRC/10.30.049/2006-07 dated May 28, 2007

DNBS.(PD)CC.No.8/SCRC/10.30.000/2007-08 dated March 5, 2008

DNBS.(PD)CC.No.9/SCRC/10.30.000/2007-08 dated April 22, 2008

DNBS.(PD)CC.No.12/SCRC/10.30.000/2008-09 September 26, 2008

DNBS/PD(SC/RC)CC.No.13/26.03.001/2008-09 April 22, 2009

DNBS(PD)CC.No.14/SCRC/26.01.001/2008-09 April 24, 2009

DNBS.(PD).CC.No.17/SCRC/26.03.001/2009-2010 dated April 21, 2010

DNBS.(PD).CC.No.18/SCRC/26.03.001/2009-2010 dated April 21, 2010

DNBS.(PD).CC.No.19/SCRC/26.03.001/2009-2010 dated April 21, 2010

DNBS.(PD).CC.No.23/SCRC/26.03.001/2010-2011 dated November 25, 2010

DNBS.(PD).CC.No.24/SCRC/26.03.001/2010-2011 dated May 25, 2011

DNBS(PD)CC.No.34/SCRC/26.03.001/2013-14 dated December 31, 2013

DNBS(PD)CC.No.35/SCRC/26.03.001/2013-14 dated January 23, 2014

DNBS(PD)CC.No.36/SCRC/26.03.001/2013-14 dated March 19, 2014

DNBS(PD)CC.No.37/SCRC/26.03.001/2013-14 dated March 19, 2014

DNBS(PD)CC.No.38/SCRC/26.03.001/2013-14 dated April 23, 2014

DNBS(PD)CC.No.41/SCRC/26.03.001/2014-15 dated August 05, 2014

DNBS(PD)CC.No.42/SCRC/26.03.001/2014-15 dated August 07, 2014

DNBR(PD)CC.No.01/SCRC/26.03.001/2014-15 dated February 24, 2015

DNBR(PD)CC.No.02/SCRC/26.03.001/2014-15 dated May 07, 2015

DNBR.(PD).CC.No.03/SCRC/26.03.001/2015-16 dated July 01, 2015

DNBR(PD)CC.No.04./SCRC/26.03.001/2015-16 dated July 01, 2015

DNBR.PD(ARC)CC.No.03/26.03.001/2016-17 dated April 28, 2017

DNBR.PD(ARC)CC.No.04/26.03.001/2017-18 dated November 23, 2017

DNBR.PD(ARC)CC.No.05/26.03.001/2017-18 dated January 04, 2018

DNBR.PD(ARC)CC.No.06/26.03.001/2018-19 dated October 25, 2018

DNBR.PD(ARC)CC.No.07/26.03.001/2018-19 dated June 28, 2019

DOR.NBFC(ARC)CC.No.8/26.03.001/2019-20 dated December 6, 2019

DOR.NBFC(ARC)CC.No.9/26.03.001/2020-21 dated July 16, 2020

1 Inserted vide Circular No.DOR (NBFC).CC.PD.No.109/22.10.106/2019-20 dated March 13, 2020

2 Inserted vide Circular No.DNBS/PD (SC/RC) No.17/26.03.001/2009-10 dated April 21, 2010

3 Substituted vide Circular No.DNBS (PD) CC.No.18/SCRC/26.03.001/2009-2010 dated April 21, 2010

4 Inserted vide Notification No.DNBS(PD-SC/RC) No.11/PCGM (KKV)/-2014 dated August 05, 2014

5 Inserted vide Circular No.DNBS/PD (SC/RC) No.17/26.03.001/2009-10 dated April 21, 2010

6 https://rbi.org.in/scripts/FS_Forms.aspx?fn=14

7 Inserted vide Notification No.DNBS.6/CGM(PK)-2006 dated October 19, 2006

8 Inserted vide Notification No.DNBS.3/CGM(OPA)-2003 dated August 28, 2003

9 Inserted vide Circular No.DNBR.PD (ARC) CC.No.03/26.03.001/2016-17 dated April 28, 2017

10 Substituted vide Notification No.DNBS.PD(SC/RC).8/CGM (ASR)-2010 dated April 21, 2010

11 Inserted vide Notification No.DNBS(PD-SC/RC) No.11/PCGM (KKV)/-2014 dated August 05, 2014

12 Inserted vide Circular No.DNBR.PD (ARC) CC.No.07/26.03.001/2018-19 dated June 28, 2019

13 Inserted vide Circular No.DOR.NBFC(ARC) CC.No.8/26.03.001/2019-20 dated December 6, 2019

14 Inserted vide Circular No.DNBS (PD)CC.No.38/SCRC/26.03.001/2013-14 dated April 23, 2014

15 Inserted vide Circlar No.DNBS/PD (SC/RC) No.17/26.03.001/2009-10 dated April 21, 2010

16 Inserted vide footnote 5 of the circular No.DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019

17 Inserted vide Circular No.DNBS (PD) CC No.35/SCRC/26.03.001/2013-14 dated January 23, 2014

18 Inserted vide Circular No.DNBS (PD) CC.No.37/SCRC/26.03.001/2013-14 dated March 19, 2014

19 Inserted vide Circular No.DNBS (PD)CC No.35/SCRC/26.03.001/2013-14 dated January 23, 2014

20 Inserted vide Circular No.DNBR.PD(ARC)CC.No.04/26.03.001/2017-18 dated November 23, 2017

21 Inserted vide Circular No.DNBS (PD) CC.No.35/SCRC/26.03.001/2013-14 dated January 23, 2014

22 Substituted vide Notification No.DNBS.PD(SC/RC).8/CGM(ASR)-2010 dated April 21, 2010

23 Substituted vide Notification No.DNBS.PD(SC/RC).8/CGM (ASR)-2010 dated April 21, 2010

24 Inserted vide Circular No.DNBS(PD) CC.No.41/SCRC/26.03.001/2014-15 dated August 05, 2014

25 Inserted vide Circular No.DNBS (PD) CC.No.37/SCRC/26.03.001/2013-14 dated March 19, 2014

26 Inserted vide Notification No.DNBS.PD(SC/RC).9/CGM (ASR)-2010 dated April 21, 2010

27 Substituted vide Notification No.DNBS.PD(SC/RC).8/CGM(ASR)-2010 dated April 21, 2010

28 Substituted vide Notification No.DNBS.PD(SC/RC).8/CGM(ASR)-2010 dated April 21, 2010

29 Inserted vide Circular No.DNBS/PD (SC/RC)CC.No.13/26.03.001/2008-09 dated April 22, 2009

30 Modified vide Notification No.DNBS.PD(SC/RC).8/CGM(ASR)-2010 dated April 21, 2010

31 Modified vide Notification No.DNBS.PD(SC/RC).8/CGM(ASR)-2010 dated April 21, 2010

32 Inserted vide Circular No.DNBS (PD) CC No.38/SCRC/26.03.001/2013-14 dated April 23, 2014

33 Inserted vide Circular No.DNBS (PD) CC No.38/SCRC/26.03.001/2013-14 dated April 23, 2014

34 Inserted vide Notification No.DNBS(PD-SC/RC) No.11/PCGM (KKV)/-2014 dated August 05, 2014

35 Inserted vide Circular No.DNBS (PD)CC.No.18/SCRC/26.03.001/2009-2010 dated April 21, 2010

36 Inserted vide Notification No.DNBS(PD-SC/RC) No.11/PCGM (KKV)/-2014 dated August 05, 2014

37 Substituted vide Master Direction DNBS.PPD.02/66.15.001/2016-17 dated September 29, 2016

38 Inserted vide Notification No.DNBS.4/ED.(SG)/-2004 dated March 29, 2004

39 Inserted vide Notification No.DNBS (PD-SC/RC) No.12/PCGM (KKV)-2014 dated August 07, 2014

40 Inserted vide Circular No.DNBR.PD(ARC)CC.No.05/26.03.001/2017-18 dated January 04, 2018

41 Inserted vide Notification No.DNBS(PD-SC/RC) No.11/PCGM (KKV)/-2014 dated August 05, 2014

42 Inserted vide Notification No.DNBR(PD-SC/RC) No.01/CGM (CDS)/2014-2015 dated February 24, 2015

43 Inserted vide Master Direction DNBR.PD (ARC) CC.No.06/26.03.001/2018-19 dated October 25, 2018

44 Inserted vide Circular No.DOR.CO.LIC.CC No.119/03.10.001/2020-21 dated February 12, 2021

45 Inserted vide Circular No.DOR.NBFC(ARC) CC.No.9/26.03.001/2020-21 dated July 16, 2020

46 Inserted vide Guidelines DNBS (PD) CC.No.6/SCRC/10.30.049/2006-2007 dated May 28, 2007

47 Inserted vide Notification No.DNBS(PD-SC/RC) No.11/PCGM (KKV)/-2014 dated August 05, 2014

48 Inserted vide Guidelines DNBS (PD) CC.No.6/SCRC/10.30.049/2006-2007 dated May 28, 2007