SC: Disciplinary Proceedings Cannot Follow if an Officer is Discharged on the Same Charge  ||  SC Clarified the Distinction Between Arbitration “Seat” And “Venue” While Summarising Key Principles  ||  Supreme Court: Wife and Her Family Cannot Be Prosecuted For Dowry-Giving Based On Her Complaint  ||  SC: Plaint Cannot Be Rejected Under Order VII Rule 11 CPC on the Ground of Order II Rule 2 Bar  ||  Supreme Court Has Issued an SOP Prescribing Strict Timelines For Filing Legal Aid Appeals  ||  Madras HC: Dhurandhar 2 Release Cannot be Stalled Due to Objections From a Small Section  ||  Delhi HC: Lokpal May Form Prima Facie Opinion Before Show Cause Notice Without Prior Hearing  ||  Bom HC: Family Courts Cannot Casually Order a Spouse’s Medical Examination to Assess Mental Health  ||  Bombay HC: Child Care Leave Protects Motherhood and Denial Violates Rights of Mother and Child  ||  Supreme Court: Amalgamating Company Loss Cannot be Set Off Against Amalgamated Income    

Bilateral Netting of Qualified Financial Contracts- Amendments to Prudential Guidelines- (Reserve Bank of India) (30 Mar 2021)

MANU/RMIC/0034/2021

Banking

1. The Bilateral Netting of Qualified Financial Contracts Act, 2020 (hereafter referred to as "the Act"), has been notified by the Government of India vide Gazette Notification No. S.O. 3463(E) dated October 1, 2020. The Act provides a legal framework for enforceability of bilateral netting of qualified financial contracts (QFC).

2. In exercise of the powers conferred by section 4(a) of the Act, the Reserve Bank, vide Notification no. FMRD.DIRD.2/14.03.043/2020-21 dated March 9, 2021, has since notified (a) "derivatives"; and (b) "repo" and "reverse repo" transactions as defined under Section 45(U) of Chapter III-D of the Reserve Bank of India Act, 1934 as a QFC.

3. Accordingly, select instructions contained in the following circulars have been modified/amended appropriately:

a) Master Circular DBR.No.BP.BC.1/21.06.201/2015-16 dated July 1, 2015 on 'Basel III Capital Regulations' as provided in Annex 1;

b) Circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17, 2018 on 'Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR) - Final Guidelines' as provided in Annex 2;

c) Master Circular DBR.No.BP.BC.2/21.04.048/2015-16 dated July 1, 2015 on 'Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances' as provided in Annex 3; and

d) Master Circular DBR.No.BP.BC.4./21.06.001/2015-16 dated July 1, 2015 on Prudential Guidelines on Capital Adequacy and Market Discipline-New Capital Adequacy Framework (NCAF) as provided in Annex 4.

The revised instructions come into force with immediate effect.

Tags : BILATERAL NETTING   FINANCIAL CONTRACTS   AMENDMENTS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved