RBI tightens return filing format for NBFCs

As per the new regulation, deposit taking NBFCs would have to submit reports on deposits and prudential norms to the RBI on quarterly basis while non-deposit taking NBFCs to file statements on capital funds, risk weighted assets, risk asset ratio, among others on quarterly basis

Mumbai: The Reserve Bank of India (RBI) on Thursday tightened the return filing format for non-banking financial companies (NBFCs) under which they will have to make disclosures about their deposit and lending activities to the central bank more frequently, reports PTI.

As per the new regulation, deposit taking NBFCs would have to submit reports on deposits and prudential norms to the RBI on quarterly basis, as against annual and half-yearly basis respectively earlier.

Similarly, the apex bank asked non-deposit taking NBFCs to file statements on capital funds, risk weighted assets, risk asset ratio, among others on quarterly basis.

The regulations relating to reporting about liquid asset, exposure to capital markets, among others have been retained.

The deposit taking NBFCs will have to file quarterly returns on liquid assets to the RBI. Also, NBFCs with a total assets of Rs100 crore and above will file monthly returns on exposure to capital market, the notification said.

Non-deposit taking NBFCs would continue to file monthly returns on important financial parameters.

RBI said the returns, under the new norms, concerning deposits, prudential norms for deposit taking NBFCs and statement of capital funds, risk weighted assets, risk asset ratio for non-deposit taking NBFCs should be submitted for the July-September quarter.

All these filings will have to be done by NBFCs to the central bank in the revised formats notified by the apex bank, the RBI said.

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RBI asks banks to implement safety measures for card usage

The central bank has directed banks to strengthen the existing payment infrastructure and future proofing system along with adoption of fraud risk management practices within a period of next 12-24 months

Mumbai: In order to minimise fraud cases and ensure security of transactions, the Reserve Bank of India (RBI) on Thursday asked banks to implement various safety measures related to credit card and debit card usage over a period of next two years, reports PTI.

The central bank has directed banks to strengthen the existing payment infrastructure and future proofing system along with adoption of fraud risk management practices within a period of next 12-24 months, RBI said in a notification.

“The increased usage of credit/debit cards at various delivery channels also witnessed the increase of frauds taking place due to the cards being lost/stolen, data being compromised and cards skimmed/counterfeited. There is, therefore, an imperative need to secure such card based transactions...,” it said.

It also emphasised on the need to migrate to Euro pay MasterCard Visa (EMV) chip and PIN based cards from the present magnetic strip cards as the later is vulnerable to skimming and cloning.

“The need for a complete migration to EMV chip and PIN based cards could be considered based on the progress of ‘Aadhar’ (Unique Identification Card) in about 18 months,” it noted.

As per the circular, the central bank has directed banks to implement improved fraud risk management practices by 30 September 2012. The banks have also been directed to strengthen merchant sourcing and monitoring process by 30 September 2012.

The central bank also given a timeframe till 30 September 2013 to banks for securing the technology infrastructure.

To strengthen infrastructure for accepting these cards, RBI has said that commercial readiness of acquiring infrastructure to support PIN at POS (points of sale) should be ready by 30 June 2013.

Similarly, the enablement of all POS terminals to accept debit card transactions with PIN should be completed by 30 June 2013.

The apex bank also directed banks to be ready from technical perspective to issue EVM cards by 30 June 2013.

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COMMENTS

a v moorthi

5 years ago

Similarly, the enablement of all POS terminals to accept debit card transactions with PIN is very much required as always i have noticed shop attendants never ever try to match the signature of presenter on charge slip with the one on the card. So mobile alerts should be made mandatory for issuance of cards because by this at least the card holder is warned that his card is used at POS and his account is being debited for. This way card holder is alerted for any un authorised transaction. Similarly is accpted even sites like IRCTC while booking tickets is accepting 4 digit numeric PIN rather it should insist for PIN of net banking as netbanking PIN can consist of alpha numeric and special charcters there by offering more secure PIN. Another area is all net banking sites should offer virtual key board so that even persons using internet cafes need not worry about compromising their PIN while doing net transactions. .

Iran payment solution in a month: Commerce secretary

Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation’s oil supplies

Kolkata: Commerce secretary Rahul Khullar on Thursday said a long-term solution to the issue of oil payments to Iran will be in place in a month, reports PTI.

“I am confident that payment crisis will be resolved in a month’s time,” Mr Khullar said here on the sidelines of the Indian Tea Association AGM.

Indian refiners are now paying for crude oil bought from Iran through a Turkish bank, after the Reserve Bank of India (RBI) snapped a long-standing route used to pay for imports from the Persian Gulf nation.

When asked about the Turkey route, Mr Khullar said it is a ‘short-term’ solution.

Iran, which has been selling crude oil on credit since late December, when the RBI halted the use of a clearing mechanism under US pressure, had on 27 June written about stopping supplies from August if the dues are not paid.

Refiners have tapped Saudi Arabia, Kuwait and Iraq to cover for any supply disruption from Iran, which accounts for 12% of the nation’s oil supplies.

Mr Khullar said payment in rupee was one of the options which was being looked into.

Meanwhile, due to the payment related issues with Iran, tea price, especially orthodox was subdued by Rs10 a kg this year compared to the previous year.

“Between January to August tea export to Iran was down four million kg compared to previous year,” Indian Tea Association secretary general Manojit Dasgupta said.

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