To have "first hand information" about government business conducted by banks, RBI will hold periodic interactions with senior executives of the lenders.
Mumbai: To have "first hand information" about government business conducted by banks, RBI will hold periodic interactions with senior executives of the lenders.
Such meetings will be held by the Regional Offices concerned of Reserve Bank, except in the case of State Bank of India, where the meetings will be held by the Central Office.
"The purpose of the informal meetings would be to maintain a line of communication with the agency bank and to have first-hand information and feedback on government business being conducted by it.
"The agenda for discussion would broadly depend on the bank's size and nature of government business being handled by it," the RBI said while putting in place a new system of oversight of government business.
The discussions would include, developments in the agency bank's government business since last inspection, sustenance of compliance with inspection report findings; progress in the case of large frauds relating to government business, position with regard to complaints, and pension related issues.
The scope of the review/inspection will now also cover government business at the Head Offices of agency banks. Various branches and Centralised Pension Processing Centres (CPPCs) will continue to be visited as hitherto.
The RBI further said the current practice of issuing reports at the end of the review/inspection will be discontinued.
In terms of the agency agreement entered into with banks for conduct of government business, the Reserve Bank of India carries out periodical review/inspection of government business.
In another notification, the RBI said the concentration of credit/investment norms would not apply to a systemically important non-banking financial company not accessing public funds in India, either directly or indirectly and not issuing guarantees.
As per the Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015, any NBFC not accessing public funds or not issuing guarantees can make an application to the RBI for an appropriate dispensation from the concentration of credit/ investment norms.