Supreme Court: Foreign Judgment Unenforceable in India Without Fair Opportunity to Defend  ||  Supreme Court: High Court Cannot Decide Appeal Pending Before Statutory Authority Due to Delay  ||  Supreme Court: SDO Lacks Authority to Change Land Classification under UP Zamindari Abolition Act  ||  Supreme Court: Man Not Liable For Maintenance if DNA Test Proves He is Not the Child’s Father  ||  SC: Prison Must Not Dilute Rights of Disabled Inmates; Oversight Given to High-Powered Panel  ||  Delhi High Court: Judges Would Have to Recuse if Children as Central Govt Counsel is Treated as Bias  ||  Delhi HC: Fresh Tenders Allowed Despite Existing Contracts; Anticipatory Grievances Not Entertained  ||  Delhi High Court: Judges Cannot Respond Publicly; Criticism Must Be Responsible and Evidence-Based  ||  J&K&L High Court: IO Not Bound By FIR; Can Modify Offences in Final Chargesheet U/S 173 CrPC  ||  Supreme Court: Brief Service Breaks Do Not Bar Ad Hoc Employees From Regularisation    

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