RBI MONTHLY UPDATES _ SEPTEMBER, 2020

RBI MONTHLY UPDATES _ SEPTEMBER, 2020

q Important Updates:

A.    Procedure for revision of current year FLA return:

The reporting entity need to take approval from RBI in case of revision of duly submitted current year FLA return. Visit https://flair.rbi.org.in/fla → Login to FLAIR → Click “Please click here to get the approval to fill revised FLA form for current year” → select "Year" → Click “Request”. After sending request to RBI through FLA portal, entities need to wait for at least one working day for approval. Entities can check the status of their request in “Multiple Year Enable Screen” under menu on the left corner. Once approved by RBI, the entity can revise FLA return for current year.

B. Compliance functions in banks and Role of Chief Compliance Officer (CCO)

As part of robust compliance system, banks are required, inter-alia, to have an effective compliance culture, independent corporate compliance function and a strong compliance risk management programme at bank and group level. Such an independent compliance function is required to be headed by a designated Chief Compliance Officer (CCO) selected through a suitable process with an appropriate ‘fit and proper’ evaluation/selection criteria to manage compliance risk effectively.

The duties and responsibilities of the compliance function - These shall include at least the following activities:

• To apprise the Board and senior management on regulations, rules and standards and any further developments.
• To provide clarification on any compliance related issues.
• To conduct assessment of the compliance risk (at least once a year) and to develop a risk-oriented activity plan for compliance assessment. The activity plan should be submitted to the ACB for approval and be made available to the internal audit.
• To report promptly to the Board / ACB / MD & CEO about any major changes / observations relating to the compliance risk.
• To periodically report on compliance failures/breaches to the Board/ACB and circulating to the concerned functional heads.
• To monitor and periodically test compliance by performing sufficient and representative compliance testing. The results of the compliance testing should be placed to Board/ACB/MD & CEO.
• To examine sustenance of compliance as an integral part of compliance testing and annual compliance assessment exercise.
• To ensure compliance of Supervisory observations made by RBI and/or any other directions in both letter and spirit in a time bound and sustainable manner.

Read full circular on the above: Click here

q RBI Circulars / Notifications:

S. N.	Particulars of the Circulars	Link
1	Basel III Capital Regulations - Review of transitional arrangements	Click here
2	Exclusion of “Allahabad Bank” from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as banking company	Click here
3	Exclusion of “Oriental Bank of Commerce” and “United Bank of India” from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as banking company	Click Here
4	Developments in India’s Balance of Payments during the First Quarter (April-June) of 2020-21	Click Here
5	Extension of Interim Relaxation in WMA limits and OD regulations	Click Here
6	RBI cancels Certificate of Registration of Nineteen NBFCs	Click here
7	Nine NBFCs surrender their Certificate of Registration to RBI	Click Here
8	RBI Announces Measures to Foster Orderly Market Conditions	Click Here
9	RBI Announces Special Open Market Operations (OMO) Simultaneous Purchase and Sale of Government of India Securities	Click Here
10.	Sectoral Deployment of Bank Credit – July 2020	Click Here
11.	Treasury Bills: Full Auction Result	Click Here
12	Underwriting Auction for sale of Government Securities for ₹ 30,000 cr on September 4, 2020	Click Here
13	RBI Releases Revised Priority Sector Lending Guidelines	Click Here
14	Option of repaying the funds borrowed under Long Term Repo Operations (LTROs) before maturity	Click Here
15	Master Directions – Priority Sector Lending (PSL) – Targets and Classification	Click Here
16	Exclusion of “Westpac Banking Corporation” from the Second Schedule to the Reserve Bank of India Act, 1934	Click Here
17	RBI releases Draft Variation Margin (Reserve Bank) Directions, 2020 under Section 45 W of the RBI Act, 1934	Click here
18	Report of the Expert Committee on Resolution Framework for Covid-19 related Stress	Click Here
19	Result of Yield/Price Based Auction of State Development Loans of State Governments	Click Here
20	Award scheme for writing books originally in Hindi on Economics/Banking/Financial subjects	Click Here
21	Measuring Productivity at the Industry Level – The India KLEMS Database	Click Here
22	RBI Bulletin - September 2020	Click Here
23	Resolution Framework for COVID-19-related Stress – Financial Parameters	Click Here
24	FDI IN DEFENCE SECTOR	Click here
25	Banking facilities in rural areas	Click here
26	Reserve Bank of India – Bulletin Weekly Statistical Supplement	Click Here
27	RBI Announces Special Open Market Operations (OMO) Simultaneous Purchase and Sale of Government of India Securities	Click Here
28	Overseas Direct Investment for August 2020	Click Here
29	RBI releases Draft Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2020 under Section 45 W of the RBI Act, 1934	Click Here
30	Treasury Bills: Full Auction Result	Click Here
31	Conversion/Switch of Government of India (GoI)’s Securities	Click Here
32	RBI announces Open Market Operations (OMO) Purchase of Government of India Securities	Click Here
33	Reserve Bank of India – Bulletin Weekly Statistical Supplement – Extract	Click Here
34	Automation of Income Recognition, Asset Classification and Provisioning processes in banks	Click Here
35	Exim Bank's Government of India supported Line of Credit (LoC) of USD 215.68 million to the Government of the Republic of Malawi	Click Here
36	Master Circular – Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)	Click Here

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This article is updated till 30^th September, 2020 with all Laws / Regulations and their respective amendments.                                                           

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Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.