Sharings

 




 




SEBI Notifications

  • 16 Dec 2017 22:00:01 +0530


  • Order in the matter of Rista Fisheries and Infrastructure Limited.  (15 Dec, 2017 +0530)

    Order in the matter of Rista Fisheries and Infrastructure Limited.


    Adjudication order in respect of Shri Shailesh Patel in the matter of Tarang Projects & Consultants Limited  (15 Dec, 2017 +0530)

    Adjudication order in respect of Shri Shailesh Patel in the matter of Tarang Projects & Consultants Limited


    Adjudication Order in respect of 1) B.P. Fintrade Private Limited, 2) Genuine Stock Broking Private Limited, 3) Vijeta Broking India Private Ltd, 4) Rikhav Investment, 5) JMP Securities Private Limited, 6) Naman Securities and Finance Private Limited, 7) B.P. Equities Private Limited and 8) Rikhav Securities Ltd.  (15 Dec, 2017 +0530)

    Adjudication Order in respect of 1) B.P. Fintrade Private Limited, 2) Genuine Stock Broking Private Limited, 3) Vijeta Broking India Private Ltd, 4) Rikhav Investment, 5) JMP Securities Private Limited, 6) Naman Securities and Finance Private Limited, 7) B.P. Equities Private Limited and 8) Rikhav Securities Ltd.


    Adjudication Order in the matter of M/s Swastika Investmart Limited  (15 Dec, 2017 +0530)

    Adjudication Order in the matter of M/s Swastika Investmart Limited


    Adjudication Order in the matter of M/s J K Securities Private Limited  (15 Dec, 2017 +0530)

    Adjudication Order in the matter of M/s J K Securities Private Limited


    Adjudication Order in respect of Mr. Ramesh G Kataria and Ms. Sarojini Ramesh Kataria in the matter of Sunrise Asian Ltd.  (15 Dec, 2017 +0530)

    Adjudication Order in respect of Mr. Ramesh G Kataria and Ms. Sarojini Ramesh Kataria in the matter of Sunrise Asian Ltd.


    Adjudication Order in respect of SSJ Finance & Securities (P) Ltd  (15 Dec, 2017 +0530)

    Adjudication Order in respect of SSJ Finance & Securities (P) Ltd


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Tejoomals Industries Ltd.  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Tejoomals Industries Ltd.


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Stellar Drugs Ltd.  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Stellar Drugs Ltd.


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter M/s Rodal Circaprint Electronics Ltd.  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter M/s Rodal Circaprint Electronics Ltd.


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Goodearth Financial Services Ltd.  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Goodearth Financial Services Ltd.


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Gloria Leasing Ltd.  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Gloria Leasing Ltd.


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Avikem Resins Ltd  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Avikem Resins Ltd


    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Indo American Cement Corporation Ltd  (14 Dec, 2017 +0530)

    Adjudication Order in respect to failure to redress the investor complaints and Non-obtaining SCORES authentication in the matter of M/s Indo American Cement Corporation Ltd


    Adjudication order against Blue Peacock Securities Pvt. Ltd in dealings of Vishal Kishor Bhatia  (14 Dec, 2017 +0530)

    Adjudication order against Blue Peacock Securities Pvt. Ltd in dealings of Vishal Kishor Bhatia


    Adjudication Order against M/s Yes Investments in dealings of Vishal Kishor Bhatia  (14 Dec, 2017 +0530)

    Adjudication Order against M/s Yes Investments in dealings of Vishal Kishor Bhatia


    Settlement Order dated December 14, 2017 against Krosslink Infrastructure Limited, in the matter of Horizon Infrastructure Limited  (14 Dec, 2017 +0530)

    Settlement Order dated December 14, 2017 against Krosslink Infrastructure Limited, in the matter of Horizon Infrastructure Limited


    Adjudication order in the matter of Kamala Tea Company Limited  (14 Dec, 2017 +0530)

    Adjudication order in the matter of Kamala Tea Company Limited


    Adjudication Order in respect of 6 entities in the matter of Anshus Clothing Limited  (14 Dec, 2017 +0530)

    Adjudication Order in respect of 6 entities in the matter of Anshus Clothing Limited


    Order in the matter of Susk India Limited  (14 Dec, 2017 +0530)

    Order in the matter of Susk India Limited


    Appeal No. 2843 of 2017 filed by Mr. Gourav Kumar Sinha.  (13 Dec, 2017 +0530)

    Appeal No. 2843 of 2017 filed by Mr. Gourav Kumar Sinha.


    Appeal No. 2842 of 2017 filed by Mr. Ankit Jain  (13 Dec, 2017 +0530)

    Appeal No. 2842 of 2017 filed by Mr. Ankit Jain


    Appeal No. 2841 of 2017 filed by Mr. Sanjay Agrawal  (13 Dec, 2017 +0530)

    Appeal No. 2841 of 2017 filed by Mr. Sanjay Agrawal


    Appeal No. 2840 of 2017 filed by Mr. Deepak Manohar Deochake  (13 Dec, 2017 +0530)

    Appeal No. 2840 of 2017 filed by Mr. Deepak Manohar Deochake


    Appeal No. 2839 of 2017 filed by Mr. Md. Tahir Alam.  (13 Dec, 2017 +0530)

    Appeal No. 2839 of 2017 filed by Mr. Md. Tahir Alam.


    Appeal No. 2838 of 2017 filed by Mr. Pratip Mukherjee.  (13 Dec, 2017 +0530)

    Appeal No. 2838 of 2017 filed by Mr. Pratip Mukherjee.


    Adjudication Order in respect of 2 entities in the matter of Gravita Research Company  (13 Dec, 2017 +0530)

    Adjudication Order in respect of 2 entities in the matter of Gravita Research Company


    Adjudication Order in the matter of Kaytee Cotsynth Industries Ltd  (13 Dec, 2017 +0530)

    Adjudication Order in the matter of Kaytee Cotsynth Industries Ltd


    Adjudication Order in respect of India Focus Cardinal Fund in the matter Tulsi Extrusions Limited  (13 Dec, 2017 +0530)

    Adjudication Order in respect of India Focus Cardinal Fund in the matter Tulsi Extrusions Limited


    Adjudication Order in respect of D P Mehta, R A Savoor, D O Hughes, F A A Jasdanwalla, And D G Hussey in the matter of Foseco India Ltd  (13 Dec, 2017 +0530)

    Adjudication Order in respect of D P Mehta, R A Savoor, D O Hughes, F A A Jasdanwalla, And D G Hussey in the matter of Foseco India Ltd


     




    RBI Notifications



  • Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions  (Thu, 14 Dec 2017 17:00:00)

    RBI/2017-18/109
    DCBR.BPD.(PCB/RCB).Cir.No.06/12.05.001/2017-18

    December 14, 2017

    The Chief Executive Officer
    All Primary (Urban) Co-operative Banks/
    All State Co-operative Banks/
    All District Central Co-operative Banks

    Madam / Dear Sir,

    Customer Protection - Limiting Liability of Customers of Co-operative Banks in Unauthorised Electronic Banking Transactions

    Please refer to our circular UBD.BSD.I/PCB/No.45/12.05.00/2001-02 dated May 30, 2002 and para 13 of circular RPCD.CO.RCB.BC.No.36/07.51.010/2014-15 dated October 22, 2014 regarding reversal of erroneous debits arising from fraudulent or other transactions.

    2. With the increased thrust on IT enabled financial inclusion and related customer protection issues, and considering the recent surge in customer grievances relating to unauthorised transactions resulting in debits to their accounts/cards, the criteria for determining the customer liability in these circumstances have been reviewed. The revised directions in this regard are set out below.

    Strengthening of systems and procedures

    3. Broadly, the electronic banking transactions can be divided into two categories:

    1. Remote/ online payment transactions (transactions that do not require physical payment instruments to be presented at the point of transactions e.g. internet banking, mobile banking, card not present (CNP) transactions), Pre-paid Payment Instruments (PPI), and

    2. Face-to-face/ proximity payment transactions (transactions which require the physical payment instrument such as card or mobile phone to be present at the point of transaction e.g. ATM, POS, etc.)

    4. The systems and procedures in banks must be designed to make customers feel safe about carrying out electronic banking transactions. To achieve this, banks must put in place:

    1. appropriate systems and procedures to ensure safety and security of electronic banking transactions carried out by customers;

    2. robust and dynamic fraud detection and prevention mechanism;

    3. mechanism to assess the risks (for example, gaps in the bank’s existing systems) resulting from unauthorised transactions and measure the liabilities arising out of such events;

    4. appropriate measures to mitigate the risks and protect themselves against the liabilities arising therefrom; and

    5. a system of continually and repeatedly advising customers on how to protect themselves from electronic banking and payments related fraud.

    Reporting of unauthorised transactions by customers to banks

    5. Banks must ask their customers to mandatorily register for SMS alerts and, wherever available, register for e-mail alerts, for electronic banking transactions. The SMS alerts shall mandatorily be sent to the customers, while email alerts may be sent, wherever registered. The customers must be advised to notify their bank of any unauthorised electronic banking transaction at the earliest after the occurrence of such transaction, and informed that the longer the time taken to notify the bank, the higher will be the risk of loss to the bank/customer. To facilitate this, banks providing e-banking services must provide customers with 24x7 access through multiple channels (at a minimum, via website, phone banking, SMS, e-mail, IVR, a dedicated toll-free helpline, reporting to home branch, etc.) for reporting unauthorised transactions that have taken place and/or loss or theft of payment instrument such as card, etc. Banks shall also enable customers to instantly respond by "Reply" to the SMS and e-mail alerts and the customers should not be required to search for a web page or an e-mail address to notify the objection, if any. Further, a direct link for lodging the complaints, with specific option to report unauthorised electronic transactions shall be provided by banks on home page of their website. The loss/fraud reporting system shall also ensure that immediate response (including auto response) is sent to the customers acknowledging the complaint along with the registered complaint number. The communication systems used by banks to send alerts and receive their responses thereto must record the time and date of delivery of the message and receipt of customer’s response, if any, to them. This shall be important in determining the extent of a customer’s liability. The banks may not offer facility of electronic transactions, other than ATM cash withdrawals, to customers who do not provide mobile numbers to the bank. On receipt of report of an unauthorised transaction from the customer, banks must take immediate steps to prevent further unauthorized transactions in the account.

    Limited Liability of a Customer

    (a) Zero Liability of a Customer

    6. A customer’s entitlement to zero liability shall arise where the unauthorised transaction occurs in the following events:

    1. Contributory fraud/ negligence/deficiency on the part of the bank (irrespective of whether or not the transaction is reported by the customer).

    2. Third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, and the customer notifies the bank within three working days of receiving the communication from the bank regarding the unauthorised transaction.

    (b) Limited Liability of a Customer

    7. A customer shall be liable for the loss occurring due to unauthorised transactions in the following cases:

    1. In cases where the loss is due to negligence by a customer, such as where he has shared the payment credentials, the customer will bear the entire loss until he reports the unauthorised transaction to the bank. Any loss occurring after the reporting of the unauthorised transaction shall be borne by the bank.

    2. In cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer, but lies elsewhere in the system and the customer notifies the bank of such a transaction within four to seven working days of receiving a communication of the transaction, the per transaction liability of the customer shall be limited to the transaction value or the amount mentioned in Table 1, whichever is lower.

    Table 1
    Maximum Liability of a Customer under paragraph 7 (ii)
    Type of Account Maximum liability
    (₹)
    • BSBD Accounts 5,000
    • All other SB accounts
    • Pre-paid Payment Instruments and Gift Cards
    • Current/Cash Credit/Overdraft Accounts of MSMEs
    • Current Accounts/Cash Credit/Overdraft Accounts of Individuals with annual average balance (during 365 days preceding the incidence of fraud)/ limit up to Rs.25 lakh
    • Credit cards with limit upto Rs. 5 lakh
    10,000
    • All other Current/Cash Credit/Overdraft Accounts 25,000

    Further, if the delay in reporting is beyond seven working days, the customer liability shall be determined as per the bank’s Board approved policy. Banks shall provide the details of their policy in regard to customers’ liability formulated in pursuance of these directions at the time of opening the accounts. Banks shall also display their approved policy in public domain for wider dissemination. The existing customers must also be individually informed about the bank’s policy.

    8. Overall liability of the customer in third party breaches, as detailed in paragraph 6 (ii) and paragraph 7 (ii) above, where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system, is summarised in the Table 2:

    Table 2
    Summary of Customer’s Liability
    Time taken to report the fraudulent transaction from the date of receiving the communication Customer’s liability (₹)
    Within 3 working days Zero liability
    Within 4 to 7 working days The transaction value or the amount mentioned in Table 1, whichever is lower
    Beyond 7 working days As per bank’s Board approved policy

    The number of working days mentioned in Table 2 shall be counted as per the working schedule of the home branch of the customer excluding the date of receiving the communication.

    Reversal Timeline for Zero Liability/Limited Liability of customer

    9. On being notified by the customer, the bank shall credit (shadow reversal) the amount involved in the unauthorised electronic transaction to the customer’s account within 10 working days from the date of such notification by the customer (without waiting for settlement of insurance claim, if any). The credit shall be value dated to be as of the date of the unauthorised transaction. Banks may also at their discretion decide to waive off any customer liability in case of unauthorised electronic banking transactions even in cases of customer negligence.

    10. Further, banks shall ensure that:

    1. a complaint is resolved and liability of the customer, if any, established and the customer is compensated as per provisions of paragraphs 6 to 9 above, within such time as may be specified in the bank’s Board approved policy, but not exceeding 90 days from the date of receipt of the complaint;

    2. where it is unable to resolve the complaint or determine the customer liability, if any, within 90 days, the compensation as prescribed in paragraphs 6 to 9 is paid immediately to the customer; and

    3. in case of debit card/bank account, the customer does not suffer loss of interest, and in case of credit card, the customer does not bear any additional burden of interest.

    Board Approved Policy for Customer Protection

    11. Bank shall formulate / revise their customer relations policy with approval of their Boards, which should clearly define the rights and obligations of customers in case of unauthorized transactions in specified scenarios i.e. debits to customer accounts owning to customer negligence / bank negligence / banking system frauds/ third party breaches etc. The policy should also include mechanism of creating customer awareness on the risks and responsibilities involved in electronic banking transactions, and customer liability in case of unauthorized electronic banking transactions, procedure for reporting unauthorized electronic banking transactions and acknowledgement of complaints. It should also provide for a robust grievance redressal structure as per extant instructions, escalation matrix, clear timelines for resolution of customer complaints, and compensation keeping in view the instructions contained in paragraph 10 above. The instructions contained in this circular shall be incorporated in the policy, and the policy should be prominently displayed at branches.

    Burden of Proof

    12. The burden of proving customer liability in case of unauthorised electronic banking transactions shall lie on the bank.

    Reporting and Monitoring Requirements

    13. The banks shall put in place a suitable mechanism and structure for the reporting of cases of unauthorized electronic banking transactions to the Board or one of its Committees. The reporting shall, inter alia, include volume/number of cases and the aggregate value involved and distribution across various categories of cases viz., card present transactions, card not present transactions, internet banking, mobile banking, ATM transactions, etc. The Board in each bank shall periodically review the unauthorised electronic banking transactions reported by customers or otherwise, as also the action taken thereon, the functioning of the grievance redressal mechanism and take appropriate measures to improve the systems and procedures. All such transactions shall be reviewed by the bank’s internal auditors.

    14. The instructions contained in this circular supersede some of the instructions contained in our circular DCBR.CO.BPD.(SCB).No.1/13.05.000/2014-15 dated April 30, 2015 on Issue of Credit Cards by Scheduled Urban Co-operative Banks, circular UBD(PCB)Cir.No.6/09.18.300/2007-08 dated July 13, 2007 on Guidelines for issue of ATM-cum-Debit cards by UCBs, circular DCBR.BPD.(PCB/RCB)Cir.No.6/19.51.026/ 2015-16 dated November 05, 2015 on Internet Banking Facility for Customers of Co-operative Banks, as detailed in Annex.

    Yours faithfully,

    (Neeraj Nigam)
    Chief General Manager


    Annex

    Instructions in circulars on Credit cards, ATM-cum-debit cards and other electronic banking products which stands revised in respect of Co-operative Banks:

    Sr. No Existing Instructions Revised Instructions in this circular (Para No.)
    Circular No. Para No. Instructions
    1 DCBR.CO.BPD.(SCB).No.1/13.05.000/2014-15 dated April 30, 2015 Annex – 13.1 Banks should set up internal control systems to combat frauds and actively participate in fraud prevention committees / task forces which formulate laws to prevent frauds and take proactive fraud control and enforcement measures. 4
    2 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I- 5.e.(iii) The terms shall put the cardholder under an obligation to notify the bank immediately after becoming aware :

    -of the loss or theft or copying of the card or the means which enable it to be used;
    -of the recording on the cardholder's account of any unauthorised transaction;
    -of any error or other irregularity in the maintaining of that account by the bank
    5
    3 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I – 5.e.(iv) The terms shall specify a contact point to which such notification can be made and that such notification can be made at any time of the day or night. 5
    4 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I – 5.h The terms shall specify that the bank shall be responsible for direct losses incurred by a cardholder due to a system malfunction directly within the bank's control. However, the bank shall not be held liable for any loss caused by a technical breakdown of the payment system if the breakdown of the system was recognizable for the cardholder by a message on the display of the device or otherwise known. The responsibility of the bank for the non-execution or defective execution of the transaction is limited to the principal sum and the loss of interest subject to the provisions of the law governing the terms 6 and 7
    5 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I – 4.(a) The bank shall ensure full security of the card 4, 6 and 7
    6 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I – 4.(e) The cardholder shall bear the loss sustained up to the time of notification to the bank of any loss, theft or copying of the card but only upon a certain limit or fixed amount or a percentage of the transaction agreed upon in advance between the card holder and the bank, except where the card holder acted fraudulently, knowingly or with extreme negligence. 6 and 7
    7 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I – 4.(f) Each bank shall provide means whereby its customers may at any time of the day or night notify the loss, theft or copying of their payment devices 5
    8 UBD(PCB)Cir No.6/09.18.300/2007-08 dated July 13, 2007 Annex I – 4.(g) On receipt of notification of the loss, theft or copying of the card, the bank shall take all action open to it to stop any further use of the card. 5
    9 DCBR.BPD.(PCB/RCB) Cir.No.6/19.51.026/2015-16 dated November 5, 2015 Annex II – 4.2.k Customers should be advised to adopt various good security precautions and practices in protecting their personal computer and to avoid conducting financial transactions from public or internet cafe computers. 4.(v)



    Investment by Foreign Portfolio Investors (FPI) in Government Securities Medium Term Framework – Review  (Tue, 12 Dec 2017 19:10:00)

    RBI/2017-18/108
    A.P. (DIR Series) Circular No. 14

    December 12, 2017

    To,

    All Authorized Persons

    Madam / Sir

    Investment by Foreign Portfolio Investors (FPI) in Government Securities
    Medium Term Framework – Review

    Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB dated May 3, 2000, as amended from time to time.

    Revision of Limits for the next quarter Jan - Mar 2018

    2. The limits for investment by FPIs for the quarter January – March 2018 is increased by INR 64 billion in Central Government Securities (Central G-Secs) and INR 58 billion in State Development Loans (SDLs). The revised limits are allocated as per the modified framework prescribed in the RBI/2017-18/12 A.P.(Dir Series) Circular No.1 dated July 3, 2017, and given as under.

    Limits for FPI investment in Government Securities
    (₹ Billion)
      Central Government Securities State Development Loans Aggregate
    General Long Term Total General Long Term Total
    Existing limits 1,897 603 2,500 300 93 393 2,893
    Revised limits 1,913 651 2,564 315 136 451 3,015

    3. The revised limits will be effective from January 01, 2018.

    4. The operational guidelines relating to allocation and monitoring of limits will be issued by the Securities and Exchange Board of India (SEBI).

    5. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

    6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approval, if any, required under any other law.

    Yours faithfully

    (T. Rabi Sankar)
    Chief General Manager



    Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India  (Thu, 07 Dec 2017 17:00:00)

    RBI/2017-18/107
    DGBA.GBD.No-1498/31.02.007/2017-18

    December 7, 2017

    The Chairman/ Managing Director/ Chief Executive Officer/
    Agency Banks

    Dear Sir/ Madam

    Settlement of Agency transactions in certain cases (for Funds and Agency Commission) directly from Reserve Bank of India

    As per the existing arrangements in certain states, in certain cases, some agency banks are routing their agency transactions of state governments through another agency bank, that acts as an aggregator, that in turn settles these agency transactions with concerned Regional Office of RBI for both receipts and payments. In such scenario, both agency bank acting as aggregator and other agency bank share the eligible agency commission on such transactions.

    2. In the age of prevailing Core Banking Solutions/e-banking systems in all the agency banks, Reserve Bank is committed to provide fast, efficient and secure banking facility to the State Governments by implementation of standardised e-receipts and e-payments with its CBS (e-Kuber), enabling RBI to act as single point of contact for settling state government funds (receipts/payment). This will also facilitate better cash management by the State Governments.

    3. Therefore, on review, it has been decided that all agency banks should settle their agency transactions for both funds and agency commission directly with the concerned Regional Office of Reserve Bank instead of routing them through any other agency bank that acts as aggregator in certain cases. It effectively makes all agency banks to report government receipts directly to RBI instead of reporting them through any other agency bank. So also for payments made by all agency banks on behalf of state government/s get directly settled with the concerned Regional Office of RBI. Agency Transaction details/scrolls may be sent directly by individual agency bank to the concerned State Government/Treasury. This arrangement is expected to improve management of State Government funds apart from reducing inefficiencies in the system.

    4. Agency Banks that are already settling their state government transactions with RBI directly may continue to do so. Agency Banks that are hither to settling their transactions with other aggregator agency bank may stop such reporting. Such banks should settle their agency transaction hereafter with RBI directly. The new arrangement for settlement of state government funds on day to day basis (receipts and payments) directly with Reserve Bank will be with effect from January 1, 2018. Thereby, all agency commission claims beginning with the quarter ending March 31, 2018 will be settled directly with the concerned Regional Office of Reserve Bank of India.

    Yours faithfully

    (D. J. Babu)
    Deputy General Manager



    Change in name of “Sardar Bhiladwala Pardi People’s Co-operative Bank Ltd., Killa Pardi, Dist. Valsad (Gujarat)” to “SBPP Co-operative Bank Ltd., Killa Pardi, Dist. Valsad (Gujarat)” in the Second Schedule to the Reserve Bank of India Act, 1934  (Thu, 07 Dec 2017 17:00:00)

    RBI/2017-18/106
    DCBR.RAD.(PCB/RCB) Cir. No.5/07.12.001/2017-18

    December 7, 2017

    All Commercial Banks,
    Primary (Urban) Co-operative Banks (UCBs)
    State and Central Co-operative Banks (StCBs/CCBs)

    Dear Sir/ Madam

    Change in name of “Sardar Bhiladwala Pardi People’s Co-operative Bank Ltd., Killa Pardi, Dist. Valsad (Gujarat)” to “SBPP Co-operative Bank Ltd., Killa Pardi, Dist. Valsad (Gujarat)” in the Second Schedule to the Reserve Bank of India Act, 1934

    We advise that the name of “Sardar Bhiladwala Pardi People’s Co-operative Bank Ltd., Killa Pardi, Dist. Valsad (Gujarat)” has been changed to “SBPP Co-operative Bank Ltd., Killa Pardi, Dist. Valsad (Gujarat)” in the Second Schedule to the Reserve Bank of India Act, 1934 by Notification DCBR.RAD.(PCB).Not.No.5/08.26.213/2017-18 dated September 7, 2017 published in the Gazette of India (Part III-Section 4) dated October 28, 2017.

    Yours faithfully,

    (Neeraj Nigam)
    Chief General Manager



    Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions  (Wed, 06 Dec 2017 17:10:00)

    RBI/2017-18/105
    DPSS.CO.PD No. 1633/02.14.003/2017-18

    December 06, 2017

    The Chairman and Managing Director / Chief Executive Officers
    All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks /
    State Co-operative Banks / District Central Co-operative Banks /
    Payment Banks and Small Finance Banks /All Card Network Providers

    Dear Madam / Sir,

    Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions

    Please refer to paragraph 1 of Statement on Developmental and Regulatory Policies regarding revised framework for Merchant Discount Rate (MDR) for Debit Card Transactions announced in the Fifth Bi-monthly Monetary Policy Statement, 2017-18 by the Reserve Bank of India.

    2. The Reserve Bank had specified the maximum MDR applicable to debit card transactions vide its circular DPSS.CO.PD.No.2361/02.14.003/2011-12 dated June 28, 2012, which was revised vide circular DPSS.CO.PD.No.1515/02.14.003/2016-17 dated December 16, 2016.

    3. Based on consultations with stakeholders on the “Draft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card Transactions”, as also taking into account the twin objectives of promoting debit card acceptance by a wider set of merchants, especially small merchants, and ensuring sustainability of the business for the entities involved, it has been decided to rationalise the MDR for debit cards based on the following criteria:

    1. Categorisation of merchants on the basis of turnover.

    2. Adoption of a differentiated MDR for QR-code based transactions.

    3. Specifying a ceiling on the maximum permissible MDR for both ‘card present’ and ‘card not present’ transactions.

    4. Accordingly, the maximum MDR for debit card transactions shall be as under:

    Sr. No Merchant Category Merchant Discount Rate (MDR) for debit card transactions
    (as a % of transaction value)
    Physical POS infrastructure including online card transactions QR code-based card acceptance infrastructure
    1. Small merchants
    (with turnover upto ₹ 20 lakh during the previous financial year)
    Not exceeding 0.40%
    (MDR cap of ₹ 200 per transaction)
    Not exceeding 0.30%
    (MDR cap of ₹ 200 per transaction)
    2. Other merchants
    (with turnover above ₹ 20 lakh during the previous financial year)
    Not exceeding 0.90%
    (MDR cap of ₹ 1000 per transaction)
    Not exceeding 0.80%
    (MDR cap of ₹ 1000 per transaction)

    5. A reference is invited to our circulars DPSS.CO.PD. No. 639/02.14.003/2016-17 dated September 1, 2016 on unbundling of MDR and DPSS.CO.PD.No. 2894/02.14.003/2015-2016 dated May 26, 2016 on putting in place a Board approved policy for merchant acquisition. It is reiterated that the banks and authorised card payment networks shall strictly adhere to the above directions. Further, banks shall ensure that the MDR levied on the merchant shall not exceed the cap rates as prescribed above, irrespective of the entity which is deploying the card acceptance infrastructure at the merchant location.

    6. Banks are also advised to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting payments through debit cards.

    7. The above instructions shall be effective from January 1, 2018. These instructions are subject to review.

    8. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

    Yours faithfully

    (Nanda S. Dave)
    Chief General Manager-in-charge



    Auction of Government of India Dated Securities  (Tue, 05 Dec 2017 11:20:00)

    RBI/2017-18/104
    Ref. No. IDMD/1373/08.02.032/2017-18

    December 5, 2017

    All Scheduled Commercial Banks
    All State Co-operative Banks/All Scheduled Primary
    (Urban) Co-operative Banks /All Financial Institutions/
    All Primary Dealers.

    Dear Sir/Madam,

    Auction of Government of India Dated Securities

    Government of India has offered to sell (re-issue) five dated securities for notified amount of ₹ 15,000 crore as per the following details:

    Sr No Security Notified Amount
    (in ₹ crore)
    GoI Notification Auction Date Settlement date
    1 6.84% GS 2022 3,000 F.No.4(7) W&M/2017 dated
    December 4, 2017
    December 8, 2017
    (Friday)
    December 11, 2017
    (Monday)
    2 6.68% GS 2031 8,000
    3 6.57% GS 2033 1,000
    4 7.40% GS 2035 1,000
    5 7.72% GS 2055 2,000
      Total 15,000      

    Subject to the limit of ₹ 15000 Cr being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1000 Cr against any of the above security.

    The auction for securities will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the auctions. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the notifications (copies enclosed), which should be read along with the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    2. We wish to draw your attention, in particular, to the following:

    (i) The Stocks will be issued for a minimum amount of ₹ 10,000/- (nominal) and in multiples of ₹ 10,000/- thereafter.

    (ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.

    (iii) Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on December 8, 2017. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    (iv) An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

    (v) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

    (vi) The result of the auctions will be announced on December 8, 2017 (Friday) and payment by successful bidders will be on December 11, 2017 (Monday).

    (vii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

    (viii) The Government Stocks will be repaid at par on December 19, 2022; September 17, 2031; December 05, 2033; September 9, 2035 and October 26, 2055 respectively.

    (ix) The Stocks will qualify for the ready forward facility.

    (x) The Stocks will be eligible for “When Issued” trading during the period December 5 – December 8, 2017 in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

    Yours faithfully

    (Latha Vishwanath)
    General Manager



    Auction for Sale (Re-issue) of Government Stock (GS)  (Tue, 05 Dec 2017 11:15:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated December 5, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of Government Stock (GS)

    F.No.4(7)W&M/2017:Government of India(GoI) hereby notifies sale(re-issue) of the following Government Stocks:

    Name of the Security Date of Original Issue Tenure
    (yy-mm-dd)
    Date of Maturity Base Method Notified Amount
    (in ₹ Crore)
    6.84% GS 2022 Sep 12, 2016 06-03-07 Dec 19, 2022 Price Multiple 3000
    6.68% GS 2031 Sep 04, 2017 14-00-13 Sep 17, 2031 Price Multiple 8000
    6.57% GS 2033 Dec 05, 2016 17-00-00 Dec. 05, 2033 Price Multiple 1000
    7.40% GS 2035 Sep 09, 2005 30-00-00 Sep 09, 2035 Price Multiple 1000
    7.72% GS 2055 Oct 26, 2015 40-00-00 Oct 26, 2055 Price Multiple 2000

    Subject to the limit of ₹ 15000 Cr, being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1000 Cr against any of the above security. The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’). The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F.No.4(13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Allotment to Non-competitive Bidders
    2. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on December 08, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on December 08, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    4. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Date of issue and payment for the stock
    5. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on December 08, 2017. The payment by successful bidders will be on December 11, 2017 i.e. the date of re-issue. The payment for the stocks will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue / last coupon payment date to the date upto which accrued interest is due as mentioned in the table in para 6.

    Payment of Interest and Re-payment of Stock
    6. Interest will accrue on the nominal value of the Stock from the date of original / last coupon payment and will be paid half yearly. The Stock will be repaid at par on date of maturity.

    Name of the Security Coupon rate (%) Date of Original Issue / Last Coupon payment Date upto which accrued interest is due Date of Coupon payments (month / date)
    6.84% GS 2022 6.84 Jun 19, 2017 December 10, 2017 Dec 19 and Jun 19
    6.68% GS 2031 6.68 Sep 17, 2017 December 10, 2017 Mar 17 and Sep 17
    6.57% GS 2033 6.57 Dec 05, 2017 December 10, 2017 Jun 05 and Dec 05
    7.40% GS 2035 7.40 Sep 09, 2017 December 10, 2017 Mar 09 and Sep 09
    7.72% GS 2055 7.72 Oct 26, 2017 December 10, 2017 Apr 26 and Oct 26

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India



    Reporting of Transactions by agency banks to RBI  (Thu, 30 Nov 2017 17:00:00)

    RBI/2017-18/103
    DGBA.GBD.1472/31.02.007/2017-18

    November 30, 2017

    All Agency Banks

    Dear Sir

    Reporting of Transactions by agency banks to RBI

    It has been brought to our notice that some agency banks are reporting government transactions after considerable delay and along with the current transactions to RBI, without taking necessary authorisation from the concerned government departments.

    2. As per the extant instructions, state government transactions (electronic as well as in physical mode) of previous month reported after 8th of the succeeding month and those pertaining to earlier months should be reported to RBI through a separate statement for accounting, after being confirmed by the competent authorities of concerned state government.

    3. It has now been decided that, for Central Government transactions (electronic as well as in physical mode), if the transactions or any adjustments thereof are reported after a gap of 90 days from the date of transaction, agency banks have to obtain prior approval from concerned ministry/department and submit the same to RBI separately at the time of reporting such transactions for settlement.

    4. It may be noted that all instructions related to the timeline to be adhered to, for reporting of government transactions, remain unchanged.

    Yours faithfully

    (Partha Choudhuri)
    General Manager



    Auction of Government of India Dated Securities  (Mon, 27 Nov 2017 18:50:00)

    RBI/2017-18/102
    Ref. No. IDMD/1325/08.02.032/2017-18

    November 27, 2017

    All Scheduled Commercial Banks
    All State Co-operative Banks/All Scheduled Primary
    (Urban) Co-operative Banks /All Financial Institutions/
    All Primary Dealers.

    Dear Sir/Madam,

    Auction of Government of India Dated Securities

    Government of India (GoI) has offered to sell (re-issue) four dated securities for notified amount of ₹ 15,000 crore as per the following details:

    Sr No Security Notified Amount
    (in ₹ crore)
    GoI Notification Auction Date Settlement date
    1 GoI FRB 2024 3,000 F.No.4(7)-W&M/2017 dated
    November 27, 2017
    November 30, 2017
    (Thursday)
    December 4, 2017
    (Monday)
    2 6.79% GS 2027 8,000
    3 7.73% GS 2034 2,000
    4 7.06% GS 2046 2,000
      Total 15,000      

    Subject to the limit of ₹ 15000 Cr being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1000 Cr against any of the above security.

    The auction for securities will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the auctions. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the notification (copy enclosed), which should be read along with the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    2. We wish to draw your attention, in particular, to the following:

    (i) The Stocks will be issued for a minimum amount of ₹ 10,000/- (nominal) and in multiples of ₹ 10,000/- thereafter.

    (ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.

    (iii) Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 30, 2017. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    (iv) An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

    (v) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

    (vi) The result of the auctions will be announced on November 30, 2017 (Thursday) and payment by successful bidders will be on December 4, 2017 (Monday).

    (vii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

    (viii) The Government Stocks will be repaid at par on November 07, 2024; May 15, 2027; December 19, 2034, and October 10, 2046 respectively.

    (ix) The Stocks will qualify for the ready forward facility.

    (x) The Stocks will be eligible for “When Issued” trading during the period November 28 – November 30, 2017, in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No.RBI /2006-07/178 dated November 16, 2006 as amended from time to time.

    Yours faithfully

    (Latha Vishwanath)
    General Manager



    Auction for Sale (Re-issue) of Government Stock (GS)  (Mon, 27 Nov 2017 18:45:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated November 27, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of Government Stock (GS)

    F.No.4(7)W&M/2017: Government of India hereby notifies sale (re-issue) of the following Government Stocks:

    Name of the Security Date of Original Issue Tenure
    (yy-mm-dd)
    Date of Maturity Base Method Notified Amount
    (in ₹ Crore)
    GoI FRB 2024 Nov 07, 2016 08-00-00 Nov 07, 2024 Price Multiple 3000
    6.79% GS 2027 May 15, 2017 10-00-00 May 15, 2027 Price Multiple 8000
    7.73% GS 2034 Oct. 12, 2015 19-02-07 Dec. 19, 2034 Price Multiple 2000
    7.06% GS 2046 Oct. 10, 2016 30-00-00 Oct. 10, 2046 Price Multiple 2000

    Subject to the limit of ₹ 15,000 Cr, being total notified amount, GoI will have the option to retain additional subscription up to ₹ 1000 Cr against any of the above security. The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’). The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F.No.4(13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Allotment to Non-competitive Bidders
    2. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    3. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on November 30, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on November 30, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    4. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Date of issue and payment for the stock
    5. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on November 30, 2017. The payment by successful bidders will be on December 4, 2017 i.e. the date of re-issue. The payment for the stocks will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue / last coupon payment date to the date upto which accrued interest is due as mentioned in the table in para 6.

    Payment of Interest and Re-payment of Stock
    6. Interest will accrue on the nominal value of the Stock from the date of original / last coupon payment and will be paid half yearly. The Stock will be repaid at par on date of maturity.

    Name of the Security Coupon rate
    (%)
    Date of Original Issue / Last Coupon payment Date upto which accrued interest is due Date of Coupon payments
    (month / date)
    GoI FRB 2024* Variable* Nov 07, 2017 December 3, 2017 May 07 and Nov 07
    6.79% GS 2027 6.79 Nov 15, 2017 December 3, 2017 May 15 and Nov 15
    7.73% GS 2034 7.73 June 19, 2017 December 3, 2017 Dec 19 and June 19
    7.06% GS 2046 7.06 Oct 10, 2017 December 3, 2017 Apr 10 and Oct 10

    *(i) The interest at a variable rate will be paid every half-yearly.

    (ii) The variable coupon rate for payment of interest on subsequent semi-annual period shall be the average rate rounded off up to two decimal places, of the implicit yields at the cut-off prices of the last three auctions of Government of India 182 day Treasury Bills, held up to the commencement of the respective semi-annual coupon period. The implicit yields will be computed by reckoning 365 days in a year.

    (iii) In the event of Government of India 182-day Treasury Bill auctions being discontinued during the currency of the Bonds, the coupon rate will be the average of Yield to Maturity (YTM) rates prevailing for six month Government of India Security/ies as on the last three non-reporting Fridays prior to the commencement of the semi-annual coupon period. In case particular Friday/s is/are holiday/s, the yield to maturity rates as on the previous working day shall be taken.

    (iv) The rate of interest payable half yearly on the Bonds during the subsequent years shall be announced by the Reserve Bank of India before the commencement of the relative semi-annual coupon period.

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India