What are master circulars by RBI?

What are master circulars by RBI?

This Master Circular provides a framework of the rules/regulations/instructions issued by the Reserve Bank of India relating to the conduct of guarantee business by banks. A statutory directive issued by the Reserve Bank in exercise of the powers conferred by the Banking Regulation Act, 1949.

What is CFT under KYC AML regulations?

Combating of Financing of Terrorism (CFT) The objective of KYC/AML/CFT guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.

What is RBI guidelines for banks?

The extant RBI guidelines on the subject are as under : (i)Banks are required to issue travellers cheques, demand drafts, mail transfers, and telegraphic transfers for Rs. 50,000 and above only by debit to customers’ accounts or against cheques and not against cash (Circular DBOD.

What is the limit of microfinance in India?

Synopsis. Unlike the earlier definition that distinguished between rural and urban, RBI has now set a common household limit of Rs 300,000 for loans to qualify as microfinance.

What is microfinance RBI?

In a release, the RBI said a microfinance loan is defined by the RBI as a ‘collateral-free’ loan granted to a household with an annual household income of up to Rs 3 lakh. Previously, the urban household income limit was Rs 2 lakh, while the rural household income limit was Rs 1.6 lakh.

What is the difference between NBFC and MFI?

NBFC means a non-banking financial company that performs functions similar to banks in the absence of banks in rural areas. MFI means for microfinance institutions which operate at a further smaller level than NBFC. MFI provides very small loans to the underprivileged sections of society.

What is Master Circular?

Apr 01, 2022 Master Circular – Detection and Impounding of Counterfeit Notes. 1470 kb. Master Circular – Scheme of Penalties for bank branches including Currency Chests for deficiency in rendering customer service to the members of public.

Where is RBI circular?

This Master Circular is placed in our website www.rbi.org.in.

What is the new rule of RBI?

The RBI issued new directions about credit and debit cards, effective from July 1. We break them down. Written consent will be required for all applicants for a credit card, according to new guidelines issued by the RBI that will be effective from July 1, 2022.

Does RBI regulate NBFC?

The Reserve Bank has been given the powers under the RBI Act 1934 to register, lay down policy, issue directions, inspect, regulate, supervise and exercise surveillance over NBFCs that meet the 50-50 criteria of principal business.

What is the maximum limit of loan under microfinance?

What is a maximum lending limit in microfinance?

Currently, a microfinance borrower is identified by the annual household income not exceeding Rs 1.25 lakh for rural and Rs 2 lakh for urban and semi-urban areas.

How many microfinance are there in India?

India’s microfinance sector is fragmented with more than 3000 microfinance companies (MGIs), NGOs and NGO-MFIs. The top 10 microfinance companies in India are estimated to account for almost 74 per cent of the total loans outstanding.


Micro Finance Institution – A type of NBFC Generally, they operate in rural areas and among low-income urban people by extending small loans. Banks provide the fund to MFIs and thereafter MFIS lend to low-income households based on the group lending method.

Can NBFC-MFI extend loans to micro finance sector?

An NBFC which does not qualify as an NBFC-MFI shall not extend loans to micro finance sector, which in aggregate exceed 10% of its total assets. 2. Regulatory Framework for NBFC-MFIs i. Existing NBFCs

What is the refurbished Reserve Bank of India’s website?

Welcome to the refurbished site of the Reserve Bank of India. The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.

What is DNBS master circular 2014-15?

DNBS. (PD) CC.No. 395/03.10.38/2014-15 Master Circular – ‘Non Banking Financial Company-Micro Finance Institutions’ (NBFC-MFIs) – Directions As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated circulars/notifications.

What is the CRAR for NBFC-MFIs in Andhra Pradesh?

The CRAR for NBFC-MFIs which have more than 25% loan portfolio in the state of Andhra Pradesh will be at 12% for the year 2011-2012 only. Thereafter they have to maintain CRAR at 15%. 6 c.