Page 53 - Banking Finance August 2021

RBI CIRCULAR

RBI

CIRCULAR

Interest Equalization Scheme on Pre and Directions, 2016 dated March 3, 2016, and the Master
Direction - Reserve Bank of India (Co-operative Banks -
Post Shipment Rupee Export Credit -
Interest Rate on Deposits) Directions, 2016 dated May
Extension 12, 2016 in terms of which if a Term Deposit matures
and proceeds are unpaid, the amount left unclaimed
RBI/2021-22/65
with the bank shall attract rate of interest as applicable
July 1, 2021
to savings deposits.
1. Please refer to the instructions issued vide circular 2. On a review of these instructions, it has been decided
DOR.CRE.REC.06/04.02.001/2021-22 dated April 12, that if a Term Deposit (TD) matures and proceeds are
2021. unpaid, the amount left unclaimed with the bank shall
attract rate of interest as applicable to savings account
2. Government of India has approved the extension of
or the contracted rate of interest on the matured TD,
Interest Equalization Scheme for Pre and Post Shipment
Rupee Export Credit, with the same scope and whichever is lower.
coverage, for a further period of three months, i.e., 3. The relevant section of Master Directions are amended
up to September 30, 2021. The extension takes effect accordingly as indicated in the Annex.
from July 01, 2021 and ends on September 30, 2021
covering a period of three months. (Thomas Mathew)
3. Consequently, the extant operational instructions issued Chief General Manager
by the Reserve Bank under the captioned Scheme shall
continue to remain in force up to September 30, 2021.
Roadmap for LIBOR Transition
(Manoranjan Mishra) RBI/2021-22/69
Chief General Manager
July 08, 2021

Review of Instructions on Interest on 1. The Reserve Bank of India had, in August 2020,
requested banks to frame a Board-approved plan,
overdue domestic deposits outlining an assessment of exposures linked to the

RBI/2021-22/66 London Interbank Offered Rate (LIBOR) and the steps
to be taken to address risks arising from the cessation
July 02, 2021
of LIBOR, including preparation for the adoption of the
1. Please refer to Section 9 (b) of Master Direction - Alternative Reference Rates (ARR). The Financial
Reserve Bank of India (Interest Rate on Deposits) Conduct Authority (FCA), UK has announced on March

BANKING FINANCE | AUGUST | 2021 | 53