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RBI defers limits on non-centrally cleared derivative exposures for banks

The Reserve Bank on Tuesday deferred applicability of limits on non-centrally cleared derivatives exposures for banks till September-end.

Crony capitalism has built up slowly in India, emerging as a Frankenstein’s monster a decade and a half after politicians began to unchain the private sector in the early 1990s

Press Trust of India Mumbai
The Reserve Bank on Tuesday deferred applicability of limits on non-centrally cleared derivatives exposures for banks till September-end.
The central bank announced the changes in a notification to banks as part of the large exposures framework.
"On a review it has been decided that non-centrally cleared derivatives exposures will continue to be outside the purview of exposure limits till September 30, 2021," the RBI said. The RBI had come out with the large exposures framework a year ago.
Meanwhile, the RBI also amended its master directions on know your customer (KYC) guidelines for banks, dealing with the procedure on implementation of Section 51(A) of the Unlawful Activities Prevention Act (UAPA).
The RBI said the Ministry of Home Affairs (MHA) issued a revised order dated February 2 in supersession of the earlier order dated March 14, 2019.
"In line with the revised order dated February 2, 2021, issued by the MHA, Sections 52 and 54 of the Master Direction on KYC dated February 25, 2016, are amended," the RBI said.
Section 54 of the master direction has been amended to say that the "list of nodal officers for UAPA is available on the website of Ministry of Home Affairs", the RBI said.
All the changes in the master direction are applicable with immediate effect, it said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mar 23 2021 | 9:25 PM IST

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