Clean Note Policy: RBI clarifies banks will not refuse notes for writing; staff were advised not to scribble.
Reserve Bank clarifies it has not instructed banks to refuse banknotes merely because of writing; it had issued internal guidance to banks advising staff not to scribble on the face of banknotes because such writing conflicts with the Clean Note Policy, and it seeks public cooperation in keeping currency free of marks.

Reference exchange rates: published dollar and euro rates with derived pound and yen cross-rates and SDR linkage.
Publication of Reference Rates for the US dollar and the Euro establishing rupee conversion levels, noting prior day comparisons. Derived rupee exchange rates for the British pound and Japanese yen are provided using the dollar Reference Rate and cross currency middle rates, and the SDR rupee rate is declared to be based on the published Reference Rate.

Treasury bill auction schedule announced; government reserves flexibility to modify dates and amounts under existing notification.
Announcement of a quarterly treasury bill auction calendar specifying scheduled auctions of 91 day, 182 day and 364 day Treasury Bills with aggregate amounts and dates, while the Government of India, in consultation with the Reserve Bank of India, retains flexibility to modify notified amounts and timing depending on cash requirements, market conditions and other factors; changes will be communicated by press release and auctions are subject to the terms of General Notification No. F2(12)-W&M/97 (as amended).

VCES payment acceptance: banks to extend hours and e payment deadline and accept ST 2 backed payments.
Designated agency bank branches were instructed to extend banking hours and e payment timelines to facilitate VCES payments, and to accept payment of VCES dues against a copy of the ST 2 registration certificate even if the assessee code was not in the bank/NSDL database; banks should accept GAR 7 challans, acknowledge on the photocopy as proof, and digitize and transmit the challan to NSDL after updating the bank master on the next working day.

Inflation indexed securities issuance extended, with the subscription window subject to earlier closure upon prior notice.
The issuance window for Inflation Indexed National Saving Securities-Cumulative, initially opened in late December, has been extended until March 31, 2014, with the issuing authority retaining discretion to close the offer earlier than that date upon prior notice to the public.

Reference exchange rates updated by central bank, with derived pound and yen rupee rates and SDR linkage.
Reserve Bank of India published updated reference exchange rates for the US dollar and the Euro, noting changes from the prior reporting day. Using the US dollar Reference Rate and middle cross currency quotes the release provides derived rupee rates for the pound sterling and the Japanese yen, and states that the SDR rupee rate will be based on the Reference Rate.

Voluntary compliance scheme deadline prompts strict payment condition and administrative facilitation; noncompliance risks arrest and prosecution.
The statement affirms that the statutory deadline for the Voluntary Compliance Encouragement Scheme is final and that eligibility requires payment of fifty percent of declared tax dues by the deadline. To facilitate compliance, tax offices will operate extended hours, designated banks will extend hours, and Commissionerates will accept demand drafts and pay orders under Receipt Payment Rules. The statement warns that after the deadline, statutory enforcement, including criminal measures, will be applied against tax evaders.

Financial stability risks may rise as global liquidity normalizes, straining bank asset quality and contagion resilience.
Financial stability monitoring finds heightened vulnerabilities from global liquidity normalization and domestic macroeconomic imbalances, with the banking sector showing increased asset quality stress-rising NPAs, higher restructured advances and concentration of stressed exposures in key sectors-while network contagion risks and macro stress tests underline potential deterioration absent improved macro conditions; regulatory reforms and market infrastructure initiatives are identified as mitigants.

Foreign investment monitoring: purchase restrictions removed after aggregate non resident holdings fell below the prescribed caution threshold.
Where aggregate foreign holdings through FII, NRI, PIO, FDI, ADR and GDR fall below the prescribed caution limit under the FDI policy, the regulatory trigger for purchase restrictions is removed; following government approval to raise the permitted foreign investment ceiling, aggregate non resident shareholding in the company fell below that threshold, and the purchase restrictions were withdrawn with immediate effect.

Monetary policy review scheduled to be announced by central bank, setting public release of Third Quarter assessment.
The Reserve Bank of India will publicly announce the Third Quarter Review of Monetary Policy for 2013-14 on Tuesday, January 28, 2014 at 11:00 a.m.; the December 27, 2013 press release signed by the Principal Chief General Manager communicates only the timing and subject of the forthcoming policy review.

Reference rate publication updates official exchange rates and cross currency conversions for the rupee based on published benchmarks.
The Reserve Bank of India issues daily official reference rates for major currencies against the Rupee, publishing US dollar and Euro reference rates with previous day comparisons, and specifies that derived cross currency rates (e.g., pound sterling and Japanese yen) are calculated using the US dollar reference and middle cross currency quotes; the SDR Rupee rate is based on the reference rate.

Unconventional monetary policy uses asset purchases, credit interventions and forward guidance to stabilise markets and manage exit risks.
Unconventional monetary policy uses balance-sheet tools-quantitative easing, credit easing and expanded collateral/counterparty frameworks-paired with forward guidance when policy rates hit the zero lower bound. Advanced central banks employed large asset purchases to stabilise markets and support inflation, producing large balance-sheet expansion without proportional broad-money growth. EMEs, including India, used targeted liquidity, reserve and FX measures and temporary unconventional interventions to stabilise markets and manage capital flow volatility; exceptional measures were later unwound as conditions improved.

Inflation-indexed government bond auction uses uniform-price bidding with non-competitive facility and electronic submission required, allocated to eligible investors.
Sale (re-issue) of 1.44% Inflation Indexed Government Stock-2023 will be conducted by price-based auction using the uniform price method; up to twenty percent of the notified amount is reserved for eligible individuals and institutions under the Scheme for Non-Competitive Bidding Facility, with both competitive and non-competitive bids submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) within specified submission windows, and results and settlement occurring on announced dates within the budgeted Government market borrowing programme.

Reference Rate update: USD and Euro benchmarks set; derived GBP and JPY Rupee rates and SDR basis announced.
The Reserve Bank of India publishes official Reference Rate quotations for the US dollar and the Euro as benchmarks against the Rupee; derived cross currency Rupee rates for the British pound and Japanese yen are provided using the USD Reference Rate and middle rates of cross currency quotes, and the SDR Rupee rate will be based on the published Reference Rate.

Data management reform: Committee to overhaul RBI data collection, propose institutional and technological changes to improve data quality.
A Committee has been constituted to review and reform the RBI's data collection, storage, access, management and dissemination processes to enable granular, multi purpose data collection and integrated data production supporting monetary, macro financial and supervisory functions. Its terms of reference require assessment of availability, coverage, frequency, timeliness and quality of existing data and surveys, review of prior recommendations on data gaps, and proposals for institutional and technological changes within the Reserve Bank and at banks to ensure consistent single source data, data integrity and reduced reporting burden; the Committee must consult stakeholders and submit a report within a specified short period.

Reference Rate publication updates exchange benchmarks and sets derived GBP, JPY and SDR rupee exchange indications.
The Reserve Bank published the daily Reference Rate for the US dollar and the Euro, stated the previous day's rates, and, using middle cross currency quotes, provided derived rupee exchange indications for GBP and JPY; the SDR rupee rate is to be based on the published Reference Rate.

Reference rate announcement: central bank publishes currency reference rates and derived cross currency rates for market use.
Publication of Reference Rates: the central bank announces daily Reference Rates for the US dollar and the Euro as the official rupee conversion benchmarks, notes the prior day's rates, and, using the US dollar Reference Rate with middle cross currency quotes, provides calculated rupee rates for the pound sterling and the Japanese yen; the SDR Rupee rate is stated to be based on the published Reference Rate.

Market inter-linkages show NDFs driving onshore rupee adjustments during depreciation, with bidirectional ties in other periods.
The study finds a persistent long-term equilibrium relationship between onshore rupee and NDF markets, normally characterized by bidirectional adjustment, but becoming unidirectional from NDF to onshore when the rupee faces downward pressure; ARCH/GARCH and VECM analyses indicate cross-mean and volatility spillovers, with volatility spillover predominantly from NDF to onshore during depreciation periods.

Tax information exchange establishes cross-border sharing of banking and ownership data to support tax administration and enforcement.
Tax Information Exchange Agreement between India and San Marino creates a framework for exchange of information relevant to administration and enforcement of domestic tax laws, requires the requested Party to use its information gathering measures even when not needed for its own tax purposes, provides for exchange of banking and ownership information, and permits representatives of the requesting Party to enter the requested Party to interview individuals and examine records.

Reference rate announcement sets official rupee benchmarks and derives other currency rates for market and administrative use.
Announcement of official Reference Rate determinations for the US dollar and the euro for the business day, recording current- and prior-day benchmark rupee values. The release derives pound sterling and Japanese yen rates from the dollar reference using middle cross-currency quotations and states the SDR Rupee rate will be based on the published reference rate.