Tuesday, May 31, 2016

Discontinuation of Statements on Special Agriculture Credit Plan (SACP)

Under SACP, the banks were required to fix self-set targets for the year, with an increase of about 25% over the previous year. The banks were required to forward half yearly statements to RBI (FIDD) indicating their progress of implementation.

It has been decided to discontinue the submission of these statements wef April 2016. However, the credit disbursement statements for the half year ended March 2016 may be forwarded.
Based on RBI circular dated 5/5/16. For further details please visit www.rbi.org.in …..Poppy

Currency Distribution & Exchange Scheme (CDES)

“Currency Distribution & Exchange Scheme (CDES)” .
Performance based incentives will continue to be paid as hitherto w.e.f July 01, 2015; however, the incentives for installation of machines have been restricted to Cash Recyclers & ATMs dispensing lower denomination notes, subject to certain caps on reimbursement of cost per machine and will be effective from the date of the circular.

Sr. No.
Nature of Service
Particulars of Incentives
Opening and maintaining currency chests at centers having population of less than 1 lakh in under banked States
a.    Capital  Cost:  Reimbursement  of 50% of expenditure upto Rs. 50 lakh per currency chest.  In the North Eastern region upto 100% of the expenditure upto Rs.50 lakh.
b.  Revenue  cost:  Reimbursement     of 50% of expenditure for the first  3  years.  In  the  North  Eastern region, 50% of the expenditure for  the  first  5 years.
Exchange of soiled notes/ Adjudication of mutilated banknotes  over  the  counter 

a. Exchange of soiled notes – Rs. 2 per packet up to a denomination Rs. 50/-
b.    Adjudication of mutilated notes – Rs. 2/- per piece
Distribution of coins over counter
i.  Rs. 25 per  bag for distribution of coins over the counter.
ii.  The  incentives  would  be  paid  on  the basis   of   withdrawal   from   currency chest,  without  waiting  for  claims.
iii. Banks  are to  ensure  that coins are distributed to retail customers in small lots and not to bulk customers.
iv. The distribution of  coins shall  be verified   by   RBI through inspection of currency chest / incognito visits to branches etc.
Installation  of  Machines  which extend cash related retail services to the public like-
1.    Cash Recyclers
2.    ATMsdispensing lower denomination notes ( i.e.up to denomination of Rs. 100/-)

Note - ATMs distributing higher denomination of Rs.100/- and above are not eligible for this re-imbursement.

The maximum amount of reimbursement for the machines will be as follows –
For Metro / Urban areas
Cash  Recyclers    50%  of  the  actual cost  or  Rs.2,00,000 whichever is lower.
ATMs  dispensing  lower  denomination notes  (up  to  Rs. 100)  – 50% of the actual cost or Rs. 2,00,000 whichever is lower

For Semi-urban / Rural areas
Cash  Recyclers    60%  of  the  actual cost  or  Rs.2,50,000 whichever is lower
ATMs  dispensing  lower  denomination notes  (up  to  Rs.100)  – 60% of the actual cost  or ` 2,50,000 whichever is lower

Operational Guidelines to avail the incentives -

Performance based incentives -

i)                The incentives will be paid on the soiled notes received in the Issue Office of the RBI. Banks need not submit a separate claim. Currency chest branch will have to pass on the incentive to the linked branches.

ii)              Similarly, incentive will be paid in respect of the adjudicated notes received by RBI. No separate claim is required to be made.

Incentives for installation of machines

i) The banks intending to purchase machines and establish currency chests from 1st July to 30th June, may submit their Annual Plans containing the details of the machines and the cost, to RBI latest by 15th April every year. RBI, may then advise the maximum amount of reimbursement permissible to each bank for that year.

For the period July 01, 2016 to June 30, 2017, the proposals may please be submitted latest by May 31, 2016.

ii) The claims for incentives for installation of Cash Recyclers and ATMs dispensing lower denomination notes should be submitted to the Issue Office of RBI on quarterly basis within 30 days from the close of the respective quarter through the Link Office of the bank concerned after making the full payment to the vendors.
Based on RBI circular dated 5/5/16. For further details please visit www.rbi.org.in ……Poppy

Transactions in derivatives by regulated institutional entities on electronic platforms

It has been decided to enable any institutional entity regulated by the RBI, SEBI, IRDAI, PFRDA and NHB to trade in interest rate swaps (IRS) on electronic trading platforms.

Reserve Bank of India, hereby specifies the Clearing Corporation of India Ltd (CCIL) as an approved counterparty for IRS transactions undertaken on electronic trading platforms where CCIL is the central counterparty.
Based on RBI circular dt 5/5/2016. For any further query in this regard please visit www.rbi.org.in ……… Poppy

Sunday, May 1, 2016

Import of Goods: Import Data Processing and Monitoring System (IDPMS)

To track the import transactions through the banking system, Customs will modify the Bill of Entry format to display the AD Code of the bank concerned, as reported by the importers. Primary data on import transactions from Customs and SEZ will first flow to the RBI secured server and thereupon depending on the AD code shall be shared with the respective banks for taking the transactions forward. The AD bank shall enter every subsequent activity, viz. document submission, outward remittance data, etc. in IDPMS so as to update the RBI database on a real time basis. It is, therefore, necessary that AD banks upload and download data on daily basis.

Based on the original BoE with stamp/signature of the Customs as submitted by importer, the nodal branch of AD Category – I banks will upload Bills of Entry (BoE) data, for non EDI (manual) Customs ports, till they are upgraded to EDI (computerised) ports. Under no circumstances, AD category – I banks will process the transactions till the concerned BoE is reflected in the IDPMS. Customs will share a copy of manual BoE with respective Regional Office of RBI for information as they presently do for shipping bills in the case of exports.

The date of operationalization of IDPMS will be notified shortly. All import remittances outstanding as on the notified date shall have to be uploaded in IDPMS. To facilitate smooth processing of import transactions and closure of BoE and advance remittances in IDPMS, the following guidelines will be followed by the AD category – I banks:

Write off of import bills

i)                AD Category I banks can consider closure of bills in IDPMS that involve write off to the extent of 5% of invoice value where the amount declared in BoE varies from the actual remittance marginally due to discounts, fluctuation in exchange rates, change in the amount of freight, insurance, etc. Cases, where write off is on account of quality issues; short shipment or destruction of goods by the port / Customs / health authorities, may be closed with remarks subject to submission of satisfactory documentation for the same, irrespective of the amount involved.

ii)              While allowing write off, AD Category - I banks must ensure that:
a)      The case is not the subject matter of any pending civil or criminal suit;
b)     The importer has not come to the adverse notice of the ED or CBI or any such other law enforcement agency; and
c)      There is a system in place under which internal inspectors or auditors of the AD category – I banks should carry out random sample check / percentage check of write-off of import bills; and

iii)            Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of RBI.

Extension of Time

i)            AD Category – I banks can consider granting extension for settlement of import dues up to 6 months at a time (maximum up to 3 years) irrespective of the invoice value for delays on account of disputes about quantity or quality or non-fulfilment of terms of contract; financial difficulties and cases where importer has filed suit against the seller. In cases where sector specific guidelines have been issued by RBI for extension of time (i.e. rough, cut and polished diamonds), the same will be applicable.

ii)       While granting extension of time, AD Category –I banks must ensure that:
a)      The import transactions covered by the invoices are not under investigation by ED / CBI or other investigating agencies;
b)      While considering extension beyond 1 year from the date of remittance, the total outstanding of the importer does not exceed USD one million or 10 per cent of the average import remittances during the preceding two financial years, whichever is lower; and
c)      Where extension has been granted by the AD Category – I banks, the date up to which extension has been granted may be indicated in the ‘Remarks’ column.

iii)    Cases not covered by the above instructions / beyond the above limits, may be referred to the concerned Regional Office of RBI.

Follow-up for Evidence of Import

i)    On operationalization of IDPMS, all outstanding import remittances, irrespective of the amount involved, will be uploaded into the system and submission of a separate BEF statement would be discontinued from a date to be notified separately.

ii)   AD Category – I banks are required to follow up submission of evidence of import and remittance within stipulated time irrespective of the amount involved.

AD Category – I banks shall put in place a system to ensure that all import transactions and related remittances are processed only through IDPMS from the date to be notified shortly.

Based on the RBI notification dated 28/04/2016. Please refer www.rbi.org.in in case of any further clarification………….. Poppy