1. Credit Information Reporting Framework
Commercial Banks, SFBs, LABs, RRBs, UCBs, StCBs, DCCBs, AIFIs, NBFCs, ARCs, and Credit Information Companies (CICs).
Core Amendment: Transition from Fortnightly to Weekly Incremental Reporting.
Specific Changes Required:
- Reporting Frequency Cycle: IT systems must be reconfigured to extract and submit credit data on a weekly basis.
- Data Ingestion Speed: Upgrade data warehousing capabilities to handle tighter turnaround times for “Incremental Data” submission.
- Error Rectification: Implement faster validation loops to correct rejected records within the reduced weekly window.
Management Action Plan:
- IT Infrastructure: CIOs to schedule script updates for weekly data extraction cycles.
- Data Governance: Risk teams to implement automated data validation tools to ensure quality before the tighter deadline.
- Policy Update: Compliance Dept to update the “Credit Information Reporting Policy” reflecting the new frequency and error correction timelines.
RBI Press Release
2. Large Borrowers & Market Mechanism
Commercial Banks and Small Finance Banks (SFBs).
Core Amendment: Repeal of the 2016 “Guidelines on Enhancing Credit Supply for Large Borrowers through Market Mechanism.”
Specific Changes Required:
- Policy Redaction: Remove clauses mandating market mechanism limits for large borrowers from the Concentration Risk Management Policy.
- Prudential Recalibration: Re-calculate exposure limits solely based on consolidated 2025 directions.
Management Action Plan:
- Policy Review: CRMC (Credit Risk Management Committee) to formally review and approve the removal of repealed frameworks.
- Limit Assessment: Credit Risk team to re-assess concentration risk limits to ensure they align with the consolidated directions.
RBI Press Release
3. Basic Savings Bank Deposit (BSBD) Accounts
Commercial Banks, SFBs, Payments Banks, LABs, RRBs, UCBs, StCBs, and DCCBs.
Core Amendment: Enhancement of BSBD features to align with digital banking trends.
Specific Changes Required:
- Product Features Audit: Upgrade BSBD accounts to include digital banking facilities previously limited.
- Service Charge Waivers: Ensure “minimum facilities” remain free despite digital additions.
- Customer Service Protocols: Update SOPs for digital onboarding assistance.
Management Action Plan:
- Product Management: Review current BSBD offerings against new “digitalization” mandates.
- Training: Train frontline staff on the updated features and service norms to avoid conduct violations.
RBI Press Release
4. LEF & Intragroup Transactions
Commercial Banks (Specifically Foreign Bank Branches in India).
Core Amendment: Rationalization of exposure limits for Foreign Bank branches towards Head Office.
Specific Changes Required:
- Exposure Calculation Logic: Modify LEF calculation engine for Head Office and overseas group entity exposures.
- Limit Monitoring: Adjust internal risk triggers for Intragroup Transactions and Exposures (ITE).
Management Action Plan:
- Capital Planning: Recalculate available exposure headroom vis-à-vis Head Office.
- Regulatory Reporting: Update reporting templates to incorporate new LEF calculation methodologies.
RBI Press Release
5. Gold Metal Loan (GML) Scheme
Commercial Banks and Small Finance Banks (SFBs).
Core Amendment: Consolidation of regulations, expansion of scope, and operational freedom.
Specific Changes Required:
- Policy Formulation: Create a standalone Board-approved “Gold Metal Loan Policy” utilizing new operational freedom.
- Client Eligibility: Expand eligibility to include domestic jewellers under the new scope.
- Reporting (MIS): Implement new data fields for “Supervisory MIS on Gold Metal Loans.”
Management Action Plan:
- Board Approval: Draft and submit the new GML policy for Board approval.
- Business Development: Reach out to newly eligible jeweller clients (domestic/exporters) with updated product offerings.
RBI Press Release
6. Co-operative Banks Business Authorization
Primary (Urban) Co-operative Banks (UCBs), State Co-operative Banks (StCBs), and District Central Co-operative Banks (DCCBs).
Core Amendment: Calibrated relaxation of branch authorization norms.
Specific Changes Required:
- Expansion Strategy: Update Annual Business Plan (ABP) to leverage relaxed norms for branch expansion.
- Compliance Check: Verify internal “Place of Business” policies against Master Direction 2025 eligibility criteria.
Management Action Plan:
- Strategic Review: Management to review branch expansion strategy in light of new autonomy.
- Regulatory Classification: Verify current scheduling/licensing status against new norms.