Indian Banks

For IFS Codes of all Indian Banks – click here

The INFINET, VSAT-based satellite and leased line network, is for the exclusive use of the banking and financial sector. Standardisation of message formats is a concurrent objective along with optimising the use of the INFINET. Consequently, the Structured Financial Messaging Solution (SFMS) has emerged as the Electronic Data Interchange (EDI) system for banks, allowing exchange of secure and structured messaging within the banks and between banks using the INFINET.

After a detailed study of message formats available in other systems such as the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT), UN/EDIFACT and COMET standards, the choice has devolved on SWIFT message formats for intra- and inter-bank communication message transmission with suitable modifications. Alongside, the Indian Financial Systems Code (IFSC), a uniform coding structure, was developed to uniquely identify every bank branch in the country in routing of payment messages and Straight Through Processing (STP). The pattern adopted has also been drawn from that used by the SWIFT. The IFSC system can also be effectively used for national routing of SWIFT international messages with the help of a suitable interface at INFINET.

The IFSC has been designed as an 11-digit alpha-numeric routing number. This is in consonance with the number of digits in the SWIFT coding system which follows the ISO standard (9362) for identifying banks/branches. The composition of bank code and branch code is as follows:

The four-digit alphanumeric codes for banks are the same as registered with SWIFT. In the last six spaces, most banks use the Basic Statistical Returns (BSR) codes allotted by the Reserve Bank for reporting statistics while some use their own existing internal branch codes. As a member of the INFINET, the Reserve Bank would use SFMS for financial and non-financial communication between its own offices and the banking and financial sector. For this purpose, the Reserve Bank has assigned IFSC codes for its own departments in the Central Office and Regional Offices.

Popularity: 2% [?]

The Reserve Bank of India has advised members of public not to fall prey to fictitious offers for release of cheap funds claimed to have been remitted by overseas entities to banks in India / Reserve Bank of India. Members of public should also not make any remittance towards participation in such schemes/offers from unknown entities.

Describing the typical modality of such offers, the Reserve Bank of India stated that certain foreign entities / individuals, including Indian residents acting as representatives of such entities / individuals, make offers through letters / emails, etc., of huge money in foreign currency to resident individuals / entities (including schools / hospitals), on the pretext of helping them in their business / ventures in India. Once the contact is established, the offer is followed by a request seeking details of bank account of the Individuals / Indian entity and asking some amount to be remitted to them as initial deposit / commission so that the offer money could be transferred. Likewise, references have been also received in the Reserve Bank in the recent past from individuals / authorised dealers seeking approvals / clarifications for effecting remittances in foreign currency towards commission / fees for receiving prizes won in overseas lottery schemes etc. It has also come to the notice of the Reserve Bank that certain overseas organisations have been advising individuals / companies / trusts in India that huge sums of money for disbursal of loans in India at cheap rates has been kept in an account with the Reserve Bank and the funds would be released after approval from the Reserve Bank. To substantiate their claims, even copies of certificate / deposit receipts purported to have been issued by the Reserve Bank are produced by such operators.

The Reserve Bank of India has today clarified that remittance in any form towards participation in lottery schemes is prohibited under Foreign Exchange Management Act, 1999. Further, these restrictions are also applicable to remittances for participation in lottery-like schemes functioning under different names, such as, money circulation scheme or remittances for the purpose of securing prize money / awards, etc. The Reserve Bank of India has further clarified that it does not maintain any account in the name of individuals / companies / trusts in India to hold funds for disbursal

G. Raghuraj
Deputy General Manage

To view press release in various languages - Click Here

Popularity: 2% [?]

Mar 26, 2010
	Know your Customer (KYC) guidelines – accounts of proprietary concerns	25 kb
	Know Your Customer (KYC) Norms/ Anti- Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)	39 kb
Mar 25, 2010
	Guidelines on Stripping/Reconstitution of Government Securities	163 kb
	Priority Sector Lending – Categorisation of activities under Service under the MSMED Act, 2006	40 kb
	Exim Bank’s Line of Credit of USD 50 million to the Government of the Republic of Zambia	23 kb
	Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2009-10)	53 kb
Mar 23, 2010
	Guidelines for Accounting of Repo / Reverse Repo Transactions	141 kb
	UB – List of Terrorist individuals / organizations – under UNSCR 1267 (1999) and 1822 (2008) on Taliban / Al-Qaida organisation	30 kb
	Grant of ‘Certificate of Registration’ – For commencing business of credit information – Experian Credit Information Company of India Private Ltd.	59 kb
Mar 19, 2010
	Standing Liquidity Facilities for Banks and Primary Dealers	14 kb
	List of Terrorist individuals / organizations – under UNSCR 1267 (1999) and 1822(2008) on Taliban / Al-Qaida organisation	33 kb
	Liquidity Adjustment Facility – Repo And Reverse Repo Rates	41 kb
	List of Terrorist Individuals/Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation	54 kb

Mar 15, 2010
	Additional Disclosures by banks in Notes to Accounts	36 kb

Mar 11, 2010
	List of Terrorist Individuals/Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation	54 kb

Mar 09, 2010
	Grant of ‘Certificate of Registration’ – For commencing business of credit information – Experian Credit Information Company of India Private Ltd	83kb
	RRBs – List of Terrorist Individuals/ Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation	67kb
	Investment Portfolio of Primary Dealers – Extension of HTM Category for PDs	14kb

Mar 05, 2010 Repayment of Gold Loan 59 kb Exim Bank’s Line of Credit of USD 15 million to the Government of the Republic of Benin 19 kb Mar 04, 2010 Scheme for Collection of Dues of ( i ) Central Board of Direct Taxes ( ii ) Central Board of Excise and Customs ( iii) Departmentalised Ministries Account – Reporting and Accounting of March Transactions – Special Arrangements – Financial Year 2009-2010 74 kb UCBs – Payment of Interest on Savings Bank Account on Daily Product Basis 33 kb List of Terrorist Individuals/ Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation 45 kb RRBs – Provisioning Requirement for Standard Assets 77 kb Mar 03, 2010 StCBs/DCCBs – Prevention of Money-laundering – Amendment Rules, 2009 – Obligation of banks / Financial institutions 66 kb Mar 02, 2010 External Commercial Borrowings (ECB) Policy – Structured Obligations 30 kb External Commercial Borrowings (ECB) Policy 26 kb External Commercial Borrowings (ECB) Policy – Infrastructure 24 kb Review of bilateral clearing arrangements between banks – Regional Rural Banks 71 kb Report of the High Level Committee to Review Lead Bank Scheme – Implementation of the recommendations 91 kb StCBS/DCCBs – List of Terrorist Individuals/Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation 69 kb Feb 26, 2010 Report of the High Level Committee to Review Lead Bank Scheme – Implementation of the recommendations 106kb Feb 25, 2010 List of Terrorist Individuals / Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban / Al-Qaida organisation 77 kb Union Budget – 2008-09 – Agricultural Debt Waiver and Debt Relief Scheme, 2008 37 kb Feb 24, 2010 Guidelines for transfer of assets and liabilities of Urban Cooperative Banks to commercial banks 69 kb Overseas Investment Application – Online Reporting of Overseas Direct Investment in Form ODI 20 kb Feb 22, 2010 Standardisation and Enhancement of Security Features in Cheque Forms 284 kb Feb 19, 2010 Payment of Interest on Savings Bank Account on Daily Product Basis 52 kb Interest Rates on Export Credit in Foreign Currency 70 kb Setting up of Cash Processing Centres – Recommendation of HLG 17 kb Feb 18, 2010 Review of bilateral clearing arrangements between banks – State and Central Co-operative Banks 30 kb Feb 17, 2010 Memorandum of Procedure for channeling transactions through Asian Clearing Union (ACU) 157 kb Feb 12, 2010 Risk weights and exposure norms in respect of bank exposure to NBFCs categorised as ‘Infrastructure Finance Companies’ 38 kb Infrastructure Finance Companies 21 kb Feb 11, 2010 Implementation of The Standardised Approach (TSA) for Calculation of Capital Charge for Operational Risk- Draft Guidelines 35 kb Exim Bank’s Line of Credit of USD 15 million to the Government of the Republic of Mali 37 kb UCBs – List of Terrorist individuals / organizations – under UNSCR 1267 (1999) and 1822(2008) on Taliban / Al-Qaida organisation 38 kb Feb 10, 2010 UCBs – List of Terrorist individuals / organizations – under UNSCR 1267 (1999) and 1822(2008) on Taliban / Al-Qaida organisation 36 kb Feb 09, 2010 UCBs – List of Terrorist individuals / organisations – under UNSCR 1267 (1999) and 1822(2008) on Taliban / Al-Qaida organization 26 kb External Commercial Borrowings (ECB) Policy – Liberalisation 23 kb Exim Bank’s Line of Credit (LOC) of USD 100 million to Bank for Development and Foreign Economic Affairs (Vnesheconombank), Russia 507 kb Feb 08, 2010 Prudential Guidelines on Capital Charge for Market Risks 2247 kb Master Circular – Prudential Guidelines on Capital Adequacy and Market Discipline – New Capital Adequacy Framework (NCAF) 24 kb Feb 05, 2010 Exim Bank’s Line of Credit of USD 36 million to the Government of the Republic of Mali 34 kb Section 23 of the Banking Regulation Act, 1949 – Master Circular on Branch Licensing – Regional Rural Banks (RRBs)-Policy for opening of Regional Offices by RRBs 34 kb National Electronic Funds Transfer (NEFT) System – Refinement of process-flow and enhancement of features 79 kb Feb 04, 2010 Compliance with FDI norms-Half yearly certificate from Statutory Auditors of NBFCs 10 kb Feb 03, 2010 UCBs – Prevention of Money-laundering – Amendment Rules, 2009 – Obligation of banks / Financial institutions 40 kb Feb 01, 2010 UCBs – Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR) 60kb RRBs – Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR 58kb StCBs – Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR 69kb List of Terrorist Individuals/ Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation 35kb Section 23 of the Banking Regulation Act, 1949 – Relaxations in Branch Authorisation Policy 43kb Export and Import of Currency 23kb Jan 29, 2010 Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR 23 kb Third Quarter Review of Monetary Policy 2009-10 169 kb Jan 28, 2010 Auction of Government of India Dated Securities 22 kb Auction for Sale (Re-issue ) of ‘7.02 per cent Government Stock, 2016’ 19 kb Auction for Sale (Re-issue ) of ‘6.35 per cent Government Stock, 2020‘ 16 kb Auction for Sale (Re-issue ) of ‘8.24 per cent Government Stock, 2027′ kb 15 Exim Bank’s Line of Credit to Government of the United Republic of Tanzania 33 kb RRBs – Prevention of Money-laundering Amendment Rules, 2009 – Obligation of Banks/FIs 93 kb Jan 25, 2010 List of Terrorist Individuals/ Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation 42 kb External Commercial Borrowings (ECB) Policy 26 kb Jan 21, 2010 List of Terrorist Individuals/ Organisations – under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation 40 kb Jan 19, 2010 Guidelines on trading of Currency Futures in Recognized Stock Exchanges 30 kb Jan 18, 2010 RRBs – Computation of NDTL for the purpose of Maintenance of CRR/SLR 74 kb Jan 15, 2010 Auction of Government of India Dated Securities 19 kb Auction for Sale (Re-issue ) of ‘7.32 per cent Government Stock, 2014′ 16 kb Auction for Sale (Re-issue) of Government of India Floating Rate Bonds, 2020 21 kb Auction for Sale (Re-issue ) of ‘8.28 per cent Government Stock, 2032’ 18 kb Jan 14, 2010 Remittance of Salary – Relaxation 21 kb Jan 14, 2010 Purchase of Immovable Property in India by Persons of Indian Origin (PIOs) – Amendment of the definition 31 kb Jan 13, 2010 Purchase of Immovable Property in India by Persons of Indian Origin (PIOs) – Amendment of the definition 31 kb Retail Issue of Subordinated Debt for Raising Tier II Capital 29 kb Jan 12, 2010 Prevention of Money-laundering Rules – Amendment – Obligation of Banks/FIs 50 kb Jan 08, 2010 Ready Forward Contracts in Corporate Debt Securities 43 kb Auction of Government of India Dated Securities 22 kb Auction for Sale (Re-issue ) of ‘7.02 per cent Government Stock, 2016’ 19 kb Auction for Sale (Re-issue ) of ‘6.35 per cent Government Stock, 2020′ 16 kb Auction for Sale (Re-issue ) of ‘8.24 per cent Government Stock, 2027′ 15 kb Jan 07, 2010 Disclosure in Balance Sheet – Bancassurance Business 48 kb Jan 05, 2010 Prudential Norms on Creation and Utilisation of Floating Provisions 48 kb Jan 01, 2010 Auction for Sale (Re-issue ) of ‘8.28 per cent Government Stock, 2032’ 18 kb Auction for Sale (Re-issue ) of ‘7.32 per cent Government Stock, 2014′ 16 kb Auction for Sale (Re-issue ) of ‘6.90 per cent Government Stock, 2019’ 16 kb Auction of Government of India Dated Securities 22 kb

Popularity: 2% [?]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Economic Affairs)
(Budget Division)

New Delhi, the January 15, 2010

NOTIFICATION

Auction for Sale (Re-issue) of Government of India Floating Rate Bonds, 2020

F.No.4(1)-W&M/2009(i): Government of India hereby notifies sale (re-issue) of Floating Rate Bonds, 2020 ( hereinafter called ‘the Bonds’) for an aggregate amount of Rs 3,000 crore. The sale shall be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

Method of Issue
2.   The Bonds shall be sold through the Reserve Bank of India, Public Debt Office, Mumbai Office, Fort, Mumbai – 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification  F.No. 4(13)- W&M /2008, dated October 8, 2008 by a price based auction using the Uniform Price Auction Method.

Allotment to Non-competitive Bidders
3. The Bonds up to 5 % of the notified amount of the sale shall be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

Place and Date of Auction
4. The auction shall be conducted by the Reserve Bank of India, (Public Debt Office), Mumbai Office, Fort, Mumbai on January 22, 2010.  Bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 22, 2010. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.

When Issued Trading
5. The Bonds shall be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Tenure
6. The Bonds shall be of eleven-year tenure commencing from December 21, 2009. The Bonds shall be repaid at par on December 21, 2020.

Date of Issue and Payment for the Bonds
7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on January 22, 2010. The payment by successful bidders shall be made on January 25, 2010 (Monday), i.e., the date of re-issue. The payment for the Stock shall include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue i.e., December 21, 2009 to January 24, 2010.

Interest
8. (i) Interest at a rate of 3.79 per cent per annum shall accrue on the nominal value of the Bonds from December 21, 2009 (date of original issue) and shall be paid on June 21, 2010. For the subsequent periods, the interest at a variable rate shall be paid every half-year on December 21 and June 21.

(ii) The variable coupon rate for payment of interest on subsequent semi-annual periods shall be the average rate (rounded off up to two decimal places) of the implicit yields at the cut-off prices of the last three auctions of Government of India 182 day Treasury Bills held up to the commencement of the respective semi-annual coupon periods. The implicit yields shall be computed by reckoning 365 days in a year.

(iii) In the event of Government of India 182-day Treasury Bill auctions being discontinued during the currency of the Bonds, the coupon rate shall be the average of Yield to Maturity (YTM) rates prevailing for six month Government of India Security/ies as on the last three non-reporting Fridays prior to the commencement of the semi-annual coupon period. In case particular Friday/s is/are holiday/s, the yield to maturity rates as on the previous working day shall be taken.

(iv) The rate of interest payable half yearly on the Bonds during the subsequent periods shall be announced by the Reserve Bank of India before the commencement of the relative semi-annual coupon period.

By Order of the President of India

(Shaktikanta Das)
Joint Secretary to the Government of India

Popularity: 2% [?]

Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division

New Delhi, dated January 15, 2010

NOTIFICATION

Auction for Sale (Re-issue ) of ‘7.32 per cent Government Stock, 2014′

F. No.4 (1)-W&M/2009: Government of India hereby notifies sale (reissue) of ‘7.32 per cent Government Stock, 2014’ (hereinafter called ‘the Stock’) for an aggregate amount of Rs. 2,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

Method of Issue

2    The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using uniform price auction method.

Allotment to Non-competitive Bidders

3.   The Government Stock up to 5 % of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

Place and date of auction

4.    The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on January 22, 2010. Bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 22, 2010. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.

When Issued Trading

5.   The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

Tenure

6     The Stock will be of five-year tenure commencing from October 20, 2009. The Stock will be repaid at par on October 20, 2014.

Date of issue and payment for the stock

7.   The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on January 22, 2010. The payment by successful bidders will be on January 25, 2010, i.e., the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue i.e., October 20, 2009 to January 24, 2010.

Interest

8.Interest at the rate of 7.32 per cent per annum will accrue on the nominal value of the Stock from the date of original issue and will be paid half yearly on April 20 and October 20.

By Order of the President of India

(Shaktikanta Das)
Joint Secretary to the Government of India

Popularity: 2% [?]

Ref.No. IDMD.3103/08.02.33/2009-10

January 15, 2010

All Scheduled Commercial Banks /
All State Co-operative Banks/
All Scheduled Primary (Urban) Co-operative Banks/
All Financial Institutions/ All Primary Dealers

Dear Sirs,

Auction of Government of India Dated Securities

Government of India have offered to sell (re-issue) of  (a) “7.32 percent  Government Stock 2014 ” for a notified amount of Rs.2,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(1)-W&M/2009 dated January 15, 2010, (b)   ”Floating Rate Bonds 2020″ for a notified amount of Rs.3,000 crore (nominal) through a  price based auction using uniform price method vide Notification No.4(1)-W&M/2009(i) dated January 15, 2010 and (c) “8.28 percent Government Stock 2032” for a notified amount of Rs. 2,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(1)-W&M/2009(ii) dated January 15, 2010. The Reserve Bank of India at Mumbai will conduct the auctions on January 22, 2010. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the Notifications (copies enclosed), which should be read along with the General Notification F. No.  4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

2.    We wish to draw your attention, in particular, to the following:

A. With regard to Floating Rate Bonds (FRBs)

1. The coupon rate for payment of interest for the first half year ending June 20, 2010 will be  3.79 per cent . For the subsequent periods, the interest will be paid at a variable rate on a semi-annual basis.
2. The variable interest rate for payment of interest will be the average of the implicit yields at cut-off prices of last three auctions of Government of India 182 day Treasury Bills.
3. The reset of variable interest rates will be made semi-annually and will be announced by the Reserve Bank of India on or before the commencement of the respective coupon periods

1. The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs.10,000/- thereafter
2. ‘Floating Rate Bonds 2020′ will be repaid at par on December 21, 2020.

B. With regard to ’7.32% Government Stock 2014′ and ’8.28% Government Stock 2032′

1. The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs.10,000/- thereafter.
2. ’7.32% Government Stock 2014′ and ’8.28% Government Stock 2032′ will be repaid at par on October 20, 2014, and February 15, 2032 respectively.

C. In all the cases

1. Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (enclosed with the notifications F. No.4 (1)-W&M/2009, F. No.4 (1)-W&M/2009(i) and F. No.4 (1)-W&M/2009(ii) all dated January 15, 2010). Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Negotiated Dealing System (NDS).  Allotment under the non-competitive segment to the bank or PD will be at the cut-off price that will emerge in the auction on the basis of the competitive bidding.
2. Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 22, 2010. Bids in physical form will not be accepted except in extraordinary circumstances such as general failure of the NDS system. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.
3. An investor can submit more than one competitive bids at different prices in electronic format on the Negotiated Dealing System (NDS). However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.
4. On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.
5. The result of the auctions will be announced on January 22, 2010 and payment by successful bidders will be on January 25, 2010 (Monday).
6. The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.
7. The Floating Rate Bonds/ Government stocks will qualify for the ready forward facility.
8. The Stock will be eligible for “When Issued” trading during the period January 18-22, 2010 in accordance with the guidelines on ‘When Issued’ transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006  as amended from time to time.

Yours faithfully,

(Rajendra Kumar)
Deputy General Manager

Popularity: 2% [?]

Popularity: 2% [?]

RBI/2009-10/289
RPCD.CO.RRB.BC.No.48 /03.05.50 /2009-10

January 18, 2010

All Regional Rural Banks

Dear Sir,

Computation of Net Demand and Time Liabilities (NDTL)
for the purpose of Maintenance of CRR/SLR

It has been observed that the Regional Rural Banks (RRBs) are not following a uniform practice in reckoning their liability in respect of arrangements with correspondent banks (mainly sponsor banks) for remittance facilities. Under the arrangements, there is a transfer of funds by accepting bank to its correspondent bank and it is an obligation of the correspondent bank to honour the instruments. However, such transfer of funds and obligation of correspondent bank to honour the instruments in no way absolve the primary liability of the accepting bank issuing drafts and interest/dividend warrants to its customers. It is, therefore, advised that all RRBs should reckon the liability in the following manner:

i)  When an RRB accepts funds from a client under its remittance facility scheme, it becomes a liability (Liabilities to Others) in its books. The liability of the RRB accepting funds will extinguish only when the correspondent bank honours the drafts issued by the accepting bank to its customers. As such, the balance amount in respect of the drafts issued by the RRB on its correspondent bank under the remittance facility scheme and remaining unpaid should be reflected in the RRB’s books as an outside liability and the same should also be taken into account for computation of NDTL for CRR/SLR purpose.

ii)  The amount received by correspondent banks has to be shown as ‘ Liabilities to the Banking System ‘ by them and not as ‘ Liabilities to Others ‘ and this liability could be netted off by the correspondent banks against their inter-bank assets. Likewise sums placed by banks issuing drafts/interest/duplicate warrants are to be treated as Assets within banking system in their books and can be netted off from their inter-bank liabilities.

2. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(A.K.Pandey)
General Manager

Popularity: 2% [?]