Page 60 - Banking Finance February 2023

RBI CIRCULAR

https://www.un.org/securitycouncil/sanctions/1988/ Green Bonds issued by the Government in the fiscal
materials year 2022-23 as ‘specified securities’ under the FAR.
6. Further, as per the instructions from the Ministry of 4. The Directions contained in this circular have been
Home Affairs (MHA), any request for delisting received issued under Section 45W of Chapter IIID of the Reserve
by any Regulated Entity (RE) is to be forwarded Bank of India Act, 1934 and are without prejudice to
electronically to Joint Secretary (CTCR), MHA for permissions/ approvals, if any, required under any other
law.
consideration. Individuals, groups, undertakings or
entities seeking to be removed from the Security 5. These Directions shall be applicable with immediate
Council’s ISIL (Da'esh) and Al-Qaida Sanctions List can effect.
submit their request for delisting to an independent and
impartial Ombudsperson who has been appointed by
Safe Deposit Locker/Safe Custody Article
the United Nations Secretary-General. More details are
available at the following URL: https://www.un.org/ Facility provided by banks
securitycouncil/ombudsperson/application
January 23, 2023
7. REs are advised to take note of the aforementioned
UNSC communications and ensure meticulous 1. Please refer to the RBI circular DOR.LEG.REC/40/
compliance. 09.07.005/2021-22 dated August 18, 2021 on the
captioned subject.
‘Fully Accessible Route’ for Investment by
2. In terms of paragraph 2.1.1 of the said circular, banks
Non-residents in Government Securities – were required to renew their locker agreements with
existing locker customers by January 1, 2023. However,
Inclusion of Sovereign Green Bonds
it has come to the notice of the Reserve Bank that large
number of customers are yet to execute the revised
January 23, 2023
agreement and are facing difficulties in doing the same.
1. A reference is invited to the Press Release on Issuance In many cases, the banks are yet to inform the
Calendar for Marketable Sovereign Green Bonds: FY customers about the need for renewal of agreements
2022-23 dated January 06, 2023, issued by the Reserve before January 1, 2023. Further, there is a need for
Bank, notifying the issuance calendar for Sovereign revision in the Model Agreement drafted by the Indian
Banks’ Association (IBA) to fully comply with the revised
Green Bonds for the fiscal year 2022-23. Attention is
instructions.
also invited to the Fully Accessible Route (FAR)
introduced by the Reserve Bank, vide A.P. (DIR Series) 3. Considering the above aspects, the deadline for banks
Circular No. 25 dated March 30, 2020, wherein certain is being extended in a phased manner to December 31,
specified categories of Central Government securities 2023. Banks are advised to notify all their customers
of the revised requirements by April 30, 2023 and
were opened fully for non-resident investors without
ensure that at least 50 per cent and 75 per cent of
any restrictions, apart from being available to domestic
their existing customers have executed the revised
investors as well.
agreements by June 30 and September 30, 2023
2. The Government Securities that were eligible for
respectively. Banks shall report the status of
investment under the FAR (‘specified securities’) were compliance with these instructions on the DAKSH
notified by the Bank, vide circular no. supervisory portal of the Reserve Bank on a monthly
FMRD.FMSD.No.25/14.01.006/2019-20 dated March basis.
30, 2020 and circular no. FMRD.FMID.No.04/14.01.006/
4. IBA is being advised separately to review and revise the
2022-23 dated July 07, 2022.
Model Agreement to ensure that it complies with the
3. It has now been decided to also designate all Sovereign requirements of circular dated August 18, 2021 and

BANKING FINANCE | FEBRUARY | 2023 | 53