Page 52 - Banking Finance July 2017

RBI CIRCULAR

2. Necessary instructions in this regard have already been banking outlet. A confirmation stating that all unbanked
issued to all authorised banks by the Central Pension rural centres in villages with population above 5000
Accounting Office vide their Office Memorandum CPAO/ have been banked, may be furnished to the respective
Tech/Clarifications/P&PW/2014-15/426-497 dated Regional Office of Financial Inclusion and Development
September 17, 2014 and Office of Principal Controller Department of Reserve Bank of India latest by
of Defence Accounts (Pension) vide their Circular December 31, 2017.
No.185 dated November 28, 2016 (copies enclosed).
3. However, it has been noticed that a few agency banks Yours faithfully,
have not yet implemented the instructions in all their (Ajay Kumar Misra)
branches. Accordingly all agency banks are advised to Chief General Manager
record the PPO numbers on the passbook of pensioners/
family pensioners. Prudential Guidelines on Capital
Adequacy and Market Discipline- New
Yours faithfully
(Partha Choudhuri) Capital Adequacy Framework (NCAF) -
General Manager
Eligible Credit Rating Agencies -

Aligning roadmap for unbanked villages INFOMERICS Valuation and Rating Pvt
having population more than 5000 with Ltd. (INFOMERICS)
revised guidelines on Branch RBI/2016-17/321

Authorisation Policy DBR.No.BP.BC.74/21.06.009/2016-17
RBI/2016-17/320 1. Please refer to the Master Circular DBR.No.BP.BC.4./
FIDD.CO.LBS.BC.No 31/02.01.001/2016-17 21.06.001/2015-16 dated July 1, 2015 on 'Prudential
Guidelines on Capital Adequacy and Market Discipline
1. Please refer to the circular FIDD.CO.LBS.BC.No.82/ - New Capital Adequacy Framework (NCAF)'.
02.01.001/2015-16 dated December 31, 2015 wherein 2. In terms of para 6 of the circular, six domestic credit
SLBCs were advised to identify villages with population rating agencies viz. CARE, CRISIL, FITCH India, ICRA,
above 5000 without a bank branch of a scheduled Brickwork Ratings and SMERA have been accredited
commercial bank in their State and allot these villages
for the purpose of risk weighting the banks' claims for
among scheduled commercial banks (including Regional capital adequacy purposes. The long term and short
Rural Banks) for opening brick and mortar branches. term ratings issued by these domestic credit rating
2. In this connection, we draw your attention to the agencies have been mapped to the appropriate risk
circular DBR.No.BAPD.BC.69/22.01.001/2016-17 dated weights applicable as per the Standardised Approach
May 18, 2017 on 'Rationalisation of Branch under the Basel II Framework.
Authorisation Policy - Revision of Guidelines' wherein
3. It has been decided that banks may also use the ratings
final guidelines on 'Banking Outlets' have been issued of the INFOMERICS Valuation and Rating Pvt Ltd.
with a view to facilitate financial inclusion as also to (INFOMERICS) for the purpose of risk weighting their
provide flexibility to banks on the choice of delivery claims for capital adequacy purposes in addition to the
channel.
existing six domestic credit rating agencies. The rating-
3. In the circumstances, SLBC Convenor banks are advised risk weight mapping for the long term and short term
to review and identify the unbanked rural centres ratings assigned by INFOMERICS will be the same as in
(URCs) in villages with population above 5000, in light case of other rating agencies.
of the revised guidelines on rationalisation of branch
authorisation policy and ensure that such unbanked Yours faithfully,
rural centres in villages with population above 5000, if (S. S. Barik)
any, are banked forthwith by opening of CBS enabled Chief General Manager-in-Charge

52 | 2017 | JULY | BANKING FINANCE

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