RBI Invites Feedback on Draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services   Introduction: The Reserve Bank of India (RBI) has recently released a draft Master Direction on Managing Risks and Code of Conduct in Outsourcing of Financial Services. In an effort to gather input and feedback from stakeholders, the RBI has invited comments on the draft direction, which aims to provide comprehensive guidelines for managing risks associated […]

Regulation of Payment Aggregators – Cross Border (PA-Cross Border) Introduction The Reserve Bank of India (RBI) has issued circulars to regulate payment aggregators and payment gateways. These circulars include guidelines on the regulation of payment aggregators and payment gateways dated March 17, 2020, and March 31, 2021, as well as circulars on the processing and settlement of export and import-related receipts facilitated by online payment gateways. Furthermore, specific approval has been given by the RBI […]

Review of Instructions on Bulk Deposits for Regional Rural Banks (RRBs) Introduction This article discusses the recent review of instructions related to bulk deposits for Regional Rural Banks (RRBs). The review aims to enhance the clarity and effectiveness of these instructions for better implementation. In this article, we will explore the changes made to the definition of “Bulk Deposit” for RRBs and the corresponding amendments to the Master Directions. Original Definition of “Bulk Deposit” According […]

Clarification on Shifting Branches/Offices/Extension Counters and Guidelines on Branch Closure by DCCBs Introduction The Reserve Bank of India (RBI) has introduced new guidelines regarding the shifting of branches, offices, and extension counters within the same city, town, or village by District Central Co-operative Banks (DCCBs). In addition, guidelines have been issued on the closure of unprofitable branches and extension counters by DCCBs. Shifting of Branches/Offices/Extension Counters DCCBs are allowed to shift their branches, offices, and […]

Joining the Account Aggregator Ecosystem as a Financial Information User With the increasing need for efficient and effective financial information management, the Account Aggregator (AA) ecosystem has become a valuable tool for regulated entities. As per the Master Direction – Non-Banking Financial Company – Account Aggregator (Reserve Bank) Directions, 2016, such entities are classified as Financial Information Providers (FIP) or Financial Information Users (FI-U). However, it has come to light that some eligible entities have […]