{"id":860,"date":"2021-03-31T05:35:31","date_gmt":"2021-03-31T05:35:31","guid":{"rendered":"https:\/\/rvkassociates.com\/blog\/?p=860"},"modified":"2021-03-31T05:35:34","modified_gmt":"2021-03-31T05:35:34","slug":"rbi-issued-a-notification-on-bilateral-netting-of-qualified-financial-contracts-amendments-to-prudential-guidelines-dated-30-3-2021","status":"publish","type":"post","link":"https:\/\/rvks.in\/blogs\/rbi-issued-a-notification-on-bilateral-netting-of-qualified-financial-contracts-amendments-to-prudential-guidelines-dated-30-3-2021\/","title":{"rendered":"RBI issued a notification on Bilateral Netting of Qualified Financial Contracts- Amendments to Prudential Guidelines dated 30.3.2021"},"content":{"rendered":"\n

March 30, 2021<\/p>\n\n\n\n

All Scheduled Commercial Banks
(excluding Regional Rural Banks)<\/p>\n\n\n\n

Dear Sir,<\/p>\n\n\n\n

Bilateral Netting of Qualified Financial Contracts- Amendments to Prudential Guidelines<\/strong><\/p>\n\n\n\n

  1. 1.<\/strong> The Bilateral Netting of Qualified Financial Contracts Act, 2020 (hereafter referred to as \u201cthe Act\u201d), 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).<\/li><\/ol>\n\n\n\n
    1. 2.<\/strong> 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) \u201cderivatives\u201d; and (b) \u201crepo\u201d and \u201creverse repo\u201d transactions as defined under Section 45(U) of Chapter III-D of the Reserve Bank of India Act, 1934 as a QFC.<\/li><\/ol>\n\n\n\n
      1. 3.<\/strong> Accordingly, select instructions contained in the following circulars have been modified\/ amended appropriately
        1. a)<\/strong> Master Circular DBR.No.BP.BC.1\/21.06.201\/2015-16 dated July 1, 2015<\/strong> on \u2018Basel III Capital Regulations\u2019 as provided in Annex 1<\/strong>;<\/li>
        2. b)<\/strong> Circular DBR.BP.BC.No.106\/21.04.098\/2017-18 dated May 17, 2018<\/strong> on \u2018Basel III Framework on Liquidity Standards \u2013 Net Stable Funding Ratio (NSFR) \u2013 Final Guidelines\u2019 as provided in Annex 2<\/strong>;<\/li>
        3. c)<\/strong> Master Circular DBR.No.BP.BC.2\/21.04.048\/2015-16 dated July 1, 2015<\/strong> on \u2018Prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances\u2019 as provided in Annex 3<\/strong>; and<\/li>
        4. d)<\/strong> Master Circular DBR.No.BP.BC.4.\/21.06.001\/2015-16 dated July 1, 2015<\/strong> on Prudential Guidelines on Capital Adequacy and Market Discipline-New Capital Adequacy Framework (NCAF) as provided in Annex 4<\/strong>.<\/li><\/ol><\/li><\/ol>\n\n\n\n

          For full detail click below :<\/strong><\/p>\n\n\n\n

          https:\/\/www.dropbox.com\/s\/svxph23bnzqta2a\/Bilateral%20Netting%20of%20Qualified%20financial%20contracts.PDF?dl=0<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

          March 30, 2021 All Scheduled Commercial Banks(excluding Regional Rural Banks) Dear Sir, Bilateral Netting of Qualified Financial Contracts- Amendments to Prudential Guidelines 1. The Bilateral Netting of Qualified Financial Contracts Act, 2020 (hereafter referred to as \u201cthe Act\u201d), has been notified by the Government of India vide Gazette Notification No. S.O. 3463(E) dated October 1, […]<\/p>\n","protected":false},"author":1,"featured_media":357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,14],"tags":[34],"class_list":["post-860","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-notifications","category-rbi","tag-rbi"],"_links":{"self":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/comments?post=860"}],"version-history":[{"count":1,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/860\/revisions"}],"predecessor-version":[{"id":861,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/posts\/860\/revisions\/861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media\/357"}],"wp:attachment":[{"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/media?parent=860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/categories?post=860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rvks.in\/blogs\/wp-json\/wp\/v2\/tags?post=860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}