RBI Rates

RBI RATES
Bank Rate	9.0%	Repo Rate	8.0%
Reverse Repo Rate	7.0%	Marginal Standing Facility Rate	9.0%
CRR	4.0%	SLR	23.0%
RBI EXCHANGE RATES (Base currency: INR)
1USD	59.0585	1 EURO	80.6048
100Japan YEN	57.9700	1 Pound Sterling	99.6140
GOVERNMENT SECURITY MARKET *cutoff at the last auction
6.90 GS 2019	8.0907%	91 day T-Bills*	8.6456%
182 day T-Bills*	8.7050%	364 day T-Bills*	8.8857%

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Issue of Pre-paid Payment Instruments-UCBs

RBI/2013-14/607 UBD.CO.BPD.PCB.Cir. No. 65/09.69.000/2013-14

Issue of Pre-paid Payment Instruments-UCBs

Please refer to circular UBD (PCB) BPD Cir No.50/09.69.000/2005-06 dated April 28, 2006 permitting Urban Cooperative Banks (UCBs) to install ATMs and issue ATM-cum-Debit Cards.

2. We have been receiving requests from a few UCBs to allow them to undertake Credit / Pre-paid Card business. Taking into account the business profile of UCBs and the nature of risks associated with Credit/ Pre-paid Card business, it has been decided that UCBs which have installed ATMs and issued ATM-cum-Debit Cards may introduce ‘Semi-Closed Pre-paid Payment Instruments’ permitting payment of utility bill/ essential services up to a limit of Rs. 10,000/-. These payment instruments shall be redeemable at a group of clearly identified merchant locations/ establishments which enter into contracts specifically with the UCB to accept the payment instruments. These instruments shall not permit cash withdrawal or redemption by the holder.

3. The issuance and operations of these instruments shall be guided by the instructions contained in circular DPSS.CO.PD.No.1873/ 02.14.06/2008-09 dated April 27, 2009 and any other circular/ instructions issued in this regard from time to time by the Department of Payment and Settlement Systems, Reserve Bank of India.

Yours faithfully,

(P K Arora)
General Manager

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Risk Management and Inter Bank Dealings

RBI/2013-14/613
A.P.(DIR Series) Circular No.135

Risk Management and Inter Bank Dealings

Attention of Authorised Dealers Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 (Notification No. FEMA/25/RB-2000 dated May 3, 2000) as amended from time to time and A.P. (DIR Series) circular no. 32 dated December 28, 2010, as amended from time to time, andA.P. (DIR Series) circular no. 114 dated March 27, 2014.

2. Under the extant guidelines relating to hedging of currency risk of probable exposures based on past performance, resident importers are allowed to book contracts up to 25 per cent of the eligible limit. The eligible limit is computed as the average of the previous three financial years’ import turnover or the previous year’s actual import turnover, whichever is higher.

3. On a review of the evolving market conditions and with a view to providing importers with greater flexibility in hedging facility, it has been decided to allow importers to book forward contracts, under the past performance route, up to 50 per cent of the eligible limit. Importers who have already booked contracts up to previous limit of 25 per cent in the current financial year, shall be eligible for difference arising out of the enhanced limits.  All other operational guidelines, terms and conditions shall apply mutatis mutandis.

4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.

5. 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/ approvals, if any, required under any other law.

Yours faithfully

Rudra Narayan Kar

Chief General Manager-in-Charge

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Opening of Bank Accounts in the Names of Minors

RBI/2013-14/610 RPCD.CO.RRB.BC.No.104/03.05.33/2013-14

Opening of Bank Accounts in the Names of Minors

Please refer to para 4.10 of our circular RPCD.CO.RRB.BC.No.100/03.05.33/2013-14 dated May 12, 2014 wherein Regional Rural Banks were advised to allow minors’ accounts (fixed, savings and recurring deposit accounts only) with mothers as guardians to be opened subject to safeguards in allowing operations in such accounts by ensuring that the minors’ accounts opened with guardian are not allowed to be overdrawn and that these always remain in credit.

2. With a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, Regional Rural Banks are advised as under:

1. A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian.
2. Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently. They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors.
3. On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.

3. RRBs are free to offer additional banking facilities like ATM/ debit card, cheque book facility, internet banking (as and when permitted) etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.

Yours faithfully,

(A. Udgata)

Principal Chief General Manager

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