Press Statement by Dr. D. Subbarao, Governor-Annual Policy Statement for the Year 2010-11- 20th April 2010
Credit Delivery and Financial Inclusion
Permitting banks to engage any individual as banking correspondents (BCs) subject to banks’ comfort level and their carrying out suitable due diligence.
Discussing with individual banks their Financial Inclusion Plans (FIPs) and monitoring their implementation.
Mandating banks not to insist on collateral securities in case of loans up to Rs.10 lakhs as against the present limit of Rs.5 lakhs extended to all units in the MSEs sector.
Urging banks to keep in view the recommendations made by the High Level Task Force constituted by the Government of India for increasing the flow of credit to the MSE sector, particularly to micro enterprises. The Reserve Bank will monitor the performance of banks in this regard.
Constituting a Committee to gather information on the working of grassroot level rural co-operatives for assessing their potential to contribute to financial inclusion.
Setting up a Committee for studying the advisability of granting new urban co-operative banking licences.
Allowing well-managed UCBs to set up off-site ATMs without seeking approval through the annual business plans.
Preparation of a discussion paper on the mode of presence of foreign banks through branch or wholly owned subsidiary by September 2010.
Putting out a discussion paper marshalling the international practices, Indian experience and also the extant ownership and governance guidelines for considering additional banking licences to private sector players by end-July 2010.
Constituting a Working Group to recommend a roadmap for the introduction of a holding company structure.
Treating annuities under build-operate-transfer (BOT) model in respect of road/highway projects and toll collection rights in some situations as tangible securities subject to certain conditions.
Allowing securitisation companies/reconstruction companies (SCs/RCs) to acquire the assets either in their own books or directly in the books of the trusts set up by them.
Issuing comprehensive guidelines based on Financial Stability Board (FSB) principles on sound compensation practices by end-June 2010.
Entering into bilateral MoU with overseas supervisory authorities within the existing legal provisions, consistent with the Basel Committee on Banking Supervision (BCBS) principles.
Treating Core Investment Companies (CICs) having an asset size of Rs.100 crore and above as systemically important core investment companies. Such companies be required to register with the Reserve Bank.
Setting up a Committee to look into banking services rendered to retail and small customers.
Further strengthening the mechanism for implementing the Reserve Bank’s guidelines on customer service, through on-site and off-site inspections.
Requiring banks to devote exclusive time in a Board meeting once every six months to review and deliberate on customer service."
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Click Here For Annual Policy Statement for the Year 2010-11
Click Here For Macro economic and Monetary Developments : 2009-10