The Banking Regulation (BR) Act was passed on
February 17, 1949,
Further in 1965, Section ________ was inserted in Banking Regulation Act to regulate functioning of Co-operative banks.
Section 56
However, since _______________, licenses for differentiated banks (niche banks) are also being issued alongside licenses for universal banks.
2015
The equity of the RRBs was contributed by the Central Government, State Government concerned and the sponsor bank in the proportion of
50:15:35
The function of financial regulation over RRBs is exercised by Reserve Bank and the supervisory powers have been vested with
NABARD.
The Scheme envisaged a Local Area Bank with a minimum capital of
INR 5 Crore and an area of operation comprising three contiguous districts.
Further, to provide LABs an opportunity to grow, in December 2012, they were permitted to expand their area of operation to
two more districts
The licensing policy was reviewed and has been replaced with a ‘continuous authorisation’/ On tap licensing policy in
2016
Accordingly, ten licenses were issued based on Guidelines on Entry of New Private Sector banks issued in
1993
two licenses were issued each based on licensing guidelines issued in
2001 and 2013
With a view to furthering the cause of financial inclusion using the functional building blocks of payments, deposits and credits, guidelines for licensing of Small Finance Banks (SFBs) and Payments Banks (PBs) were issued in
2014
After a review of the performance of the existing SFBs and to encourage competition, licensing of these banks was made ‘on-tap’ in
2019
Further, with the objective of bringing better clarity, the eligibility criteria for an SFB to transition into a Universal bank were issued in
April 2024.
However, to cater to the financial needs of a larger number of underprivileged and unbanked population, RBI liberalised the branch licensing norms wherein all domestic commercial banks (other than RRBs, Local Area Banks and Payments Banks) are permitted to open, unless otherwise specifically restricted, Banking Outlets14 in ____________ without having the need to take permission from RBI in each case.
Tier 1 to Tier 6 centres
Domestic commercial banks have been advised to open at least _____________ of such ‘banking outlets’ in unbanked rural centres.
0.25
Further, Reserve Bank introduced the concept of Digital Banking Units (DBU) in
April 2022,
IRACP)
Income Recognition and Asset Classification and Provisioning (IRACP) Norms- Asset Quality: In
The Basel framework evolved over a period since the introduction of Basel I framework in
1988,
The comprehensive Basel II guidelines issued in
2006
Guidelines on both LCR and NSFR have come into effect from
June 9, 2014, and October 01, 2021,
investment portfolio of the banks should be classified under three categories, viz,
Held to Maturity (HTM), Available for Sale (AFS) and Fair Value through Profit and Loss (FVTPL).
Held for Trading (HFT) shall be a separate investment sub-category within
FVTPL.
The banks have been mandated to link all new floating rate personal or retail loans and floating rate loans extended to MSMEs to external benchmarks such as
Repo Rate, Government of India 3-Months and 6-Months Treasury Bill yields published by Financial Benchmarks India Private Ltd (FBIL), or any other benchmark market interest rate published by FBIL.
fixed remuneration of NEDs was increased to
₹30 lakh per annum in February 2024.
