Wednesday, December 20, 2017

Reporting of Transactions by agency banks to RBI

In case of Central Government transactions (electronic as well as in physical mode), if the transactions or any adjustments 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.

All instructions related to the timeline, for reporting of government transactions, remain unchanged.
Based on RBI notification dated 30/11/17. For any further clarification please refer ................ Poppy

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

It has been decided to rationalise the MDR for debit cards based on the following criteria:
·        Categorisation of merchants on the basis of turnover.
·        Adoption of a differentiated MDR for QR-code based transactions.
·        Specifying a ceiling on the maximum permissible MDR for both ‘card present’ and ‘card not present’ transactions.

 Accordingly, the maximum MDR for debit card transactions shall be as under:
Sr. No.
Merchant Category
(turnover during prev fin year)
MDR for debit card transactions
(as a % of transaction value)
Physical POS based
( MDR cap/transaction)
QR code-based
( MDR cap/transaction)
Small merchants
20 lakh)
Not exceeding 0.40%
Not exceeding 0.30%
Other merchants
20 lakh)
Not exceeding 0.90%
Not exceeding 0.80%

Banks and authorised card payment networks are adhere to RBI guidelines on Merchant acquisition.

Banks are to ensure that the MDR does not exceed the prescribed cap rates, irrespective of the entity.

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.

The above instructions shall be effective from January 1, 2018.

Based on RBI notification dated 6/12/17. For any further clarification refer ................ Poppy

Settlement of Agency transactions

Currently, some Banks are routing their agency transactions of state governments through another agency bank ( Aggregator), which in turn settles these agency transactions with RBI for both receipts and payments. Both the banks share the eligible agency commission on such transactions.
It has now been decided that all agency banks should settle their transactions for both funds and commission directly with RBI instead of routing them through the aggregator.
Agency Transaction details/scrolls may be sent directly by individual agency bank to the concerned State Government/Treasury.
The new arrangement will be with effect from January 1, 2018.
Based on RBI notification Dated 7/12/17. For any further clarification in the matter refer ............Poppy

Submission of Financial Information to Information Utilities

According to Insolvency and Bankruptcy Code (IBC), 2016, a financial creditor shall submit information on financial parameters and assets on which security interest has been created, to an information utility (IU).

The Insolvency and Bankruptcy Board of India (IBBI) has registered National E-Governance Services Limited (NeSL) as the first IU under the IBBI (IUs) Regulations.

All regulated creditors are advised to immediately put in place systems and procedures to ensure compliance.
Based on RBI notification dt 19/12/2017. For ant further clarification, please visit