Migration to IPv6 required for payment system operators; implement dedicated teams, commence technical migration and report progress.
The Reserve Bank directs all payment system operators authorised under the PSS Act to transition their networks, web sites and payment gateways from IPv4 to IPv6, to constitute a dedicated implementation team to manage the migration, coordinate with stakeholders and ensure service continuity, and to report progress by the prescribed deadline; technical assistance is available from a designated Department of Telecommunications contact.

CTS migration deadline extended; non CTS cheques accepted but processed at less frequent clearing intervals after deadline.
Primary (Urban) Co operative Banks must withdraw and replace non CTS 2010 standard cheques by the final extended deadline; residual non CTS cheques presented after that deadline will be accepted but cleared at less frequent intervals, and UCBs are required to adhere to the extension to avoid insufficient clearing arrangements for non CTS cheques.

Under-recovery on diesel persists, maintaining high subsidy burden and daily losses for oil marketing companies.
Under-recovery on High Speed Diesel declined to Rs 9.28 per litre effective 16 December 2012 while Domestic LPG and PDS Kerosene under-recoveries remained unchanged at Rs 520.50 per cylinder and Rs 30.93 per litre; an additional government subsidy is provided for PDS Kerosene and Domestic LPG. OMCs were incurring about Rs 411 crore daily under-recovery on Diesel, PDS Kerosene and Domestic LPG, and product-wise cumulative under-recoveries for April-September 2012 are tabulated to show fiscal exposure. The release also records fortnightly international crude prices and exchange rates as drivers of these under-recoveries.

Crude oil price update: Indian Basket rose, driven by higher dollar prices and rupee depreciation affecting domestic rates.
International crude oil price for the Indian Basket rose to US$ 107.18 per barrel on 18 December 2012 from US$ 106.96 on the previous trading day; concurrent rupee depreciation contributed to a higher domestic price of Rs 5,878.82 per barrel on 18 December 2012 compared with Rs 5,843.22 on 17 December 2012.

Monetary policy stance shifting toward growth while maintaining key rates unchanged to manage liquidity and monitor inflation risks.
The Reserve Bank kept the cash reserve ratio at 4.25 per cent and the policy repo rate at 8.0 per cent (reverse repo 7.0 per cent; MSF and Bank Rate 9.0 per cent), maintaining key rates unchanged while managing tight liquidity through open market operations. The Bank signalled an increased emphasis on supporting growth-shifting the policy stance toward growth-while remaining sensitive to persistent retail inflation and external sector risks, and conditioning any further easing on incoming inflation and external developments.

Government securities auction: uniform-price sale with reserved non-competitive allocation and electronic bidding via e-Kuber system.
Price-based auctions for re-issue of Government dated securities will be conducted using the uniform price method with specified notified amounts. Issues are in prescribed minimum nominal lots; multiple competitive bids per investor are permitted within aggregate limits. A reserved portion of each issue is available under a non-competitive bidding facility, with consolidated non-competitive bids submitted by banks/PDs and allotment at the weighted average yield/price from competitive bids. All bids must be submitted electronically via the RBI E-Kuber system within stipulated time windows; RBI will set a minimum acceptable price and may accept or reject bids wholly or partially.

Online patent filing expanded to integrate all prescribed forms, authentication and payment gateways, simplifying electronic compliance.
Comprehensive online patent filing services expand the Patent Office's e-filing to cover new applications and all subsequent prescribed forms and fees, enable dual authentication by user ID or Class III Digital Signature, integrate specified bank payment gateways, allow user-managed personal folders, and aim to simplify filings, reduce transaction errors and advance a paperless virtual office.

Corporate regulation should be growth-oriented and coordinated, combining principle-based guidance with enforceable rules to support innovation.
Corporate regulation should be growth-oriented, transparent and inclusive, with competition law and sectoral regulation operating complementarily. Effective regimes combine normative principles and enforceable rules, require consultations among regulators to manage overlaps, and depend on human capital, institutional partnerships and capacity building to enhance regulatory design, accountability and support for innovation across competition, intellectual property, banking law and FDI domains.

Government securities auction: yield-based ten-year state loans offered via electronic bidding with non-competitive allocation and SLR eligibility.
Auction of eleven State dated securities for ten-year tenor will be conducted electronically through E-Kuber as a yield-based auction permitting both competitive and non-competitive bids; non-competitive allotment is limited by the Scheme for Non-competitive Bidding Facility to up to ten percent of each stock with a one percent cap per single bid, yields must be expressed to two decimal places, multiple competitive bids are allowed subject to aggregate bid limits per State, and the Reserve Bank will fix the maximum yield/minimum price for allotment.

Nomination in bank accounts: only thumb impressions require witness attestation and nomination is available for joint accounts.
The Nomination Rules require attestation by witnesses only for the thumb-impression on prescribed nomination forms; signatures need not be witness-attested. The nomination facility is available for joint deposit accounts, including those with an "Either or Survivor" mandate, and banks must ensure branches offer and comply with this nomination option.

Cheque standardisation: extension permits withdrawal and replacement of non-standard cheques but reduces clearing frequency thereafter.
Migration to CTS-2010 Standard cheques requires banks to issue only multi-city/payable-at-par cheque forms and to withdraw non-CTS forms; post-dated EMI cheques must be replaced. The deadline for withdrawal/replacement was extended to March 31, 2013, with residual non-CTS cheques accepted for clearing at reduced frequency. Modalities and any charges are being discussed and will be notified separately; banks must acknowledge receipt and ensure compliance.

Reference Rate publication updates foreign exchange benchmarks and cross currency derived rates, informing SDR rupee conversion basis.
The Reserve Bank of India published Reference Rates for the US dollar and the Euro and compared them with the previous day; using those reference rates and middle cross currency quotes it derived exchange rates for the pound sterling and the yen. The release specifies that the SDR Rupee rate will be based on the published reference rate and serves as the operative daily benchmark for cross currency and SDR conversions.

Fraud reporting requirements revised: NBFCs to stop central reporting of attempted cases but must report to board audit committee.
The Reserve Bank instructs NBFCs that reporting of attempted fraud cases meeting the stated monetary threshold to the central Fraud Monitoring Cell is to be discontinued. NBFCs must continue to place individual attempted-fraud cases meeting the threshold before the Audit Committee of the Board, with reports detailing modus operandi, how the attempt failed or was foiled, remedial measures, and new controls implemented. NBFCs must also prepare an annual consolidated review of such cases as on March 31 each year, covering operational areas affected, effectiveness of remedies, three year trends, and need for further process changes.

Fraud reporting obligations require timely FMR submissions and restrict case closure pending investigation and regulatory approval.
For individual frauds of Rs.25.00 lakh and above, NBFCs must submit FMR-1 to the Reserve Bank's Fraud Monitoring Cell and a copy to the Regional Office within twenty-one days of detection; FMR-3 quarterly progress reports for frauds of Rs.1 lakh and above must be filed case-wise with the Regional Office within fifteen days of quarter-end. NBFCs should not send FMR-3 for lower-value cases to Central Office and may close frauds only after specified investigative, accountability, recovery/write-off, insurance and governance actions and with Regional Office approval, with limited statistical exceptions for delayed prosecutions.

Crude oil price rebound raises Indian Basket valuation, increases rupee per barrel rate, and shows slight exchange rate movement.
International crude oil price for the Indian Basket rose to US$ 106.40 per barrel on 12 December 2012 from US$ 105.29 the previous trading day; in rupee terms the price increased to Rs 5,774.33 per barrel from Rs 5,719.35, with the rupee exchange rate at Rs 54.27 per US dollar.

Foreign Exchange Earnings from Tourism rose, signalling stronger tourism receipts and higher foreign tourist arrivals month-on-month.
FTAs and FEEs rose in November 2012 and for January-November 2012 compared with 2011. Monthly and cumulative FTAs show positive year on year growth; FEEs increased in rupee and US dollar terms with differing percentage growth rates. The Ministry of Tourism compiles FTAs from major port data and FEEs from Reserve Bank of India data.

Debt restructuring and rehabilitation measures for MSMEs permit banks to apply viability-based restructuring and fresh finance to revive sick units.
RBI-prescribed rehabilitation and debt restructuring frameworks require banks and primary lending institutions to apply viability criteria, prudential norms, and time-limited restructuring packages, including one-time settlement schemes and provision of additional finance and fresh loans to revive potentially viable sick MSMEs.

Default in repayment by NBFCs highlights depositor applications and regional pending cases with reported claimed amounts.
Defaults by Non-Banking Financial Companies in repaying deposits prompted twelve depositor applications over the cited three financial years, with eight cases pending as of the report. The summary lists the regional benches where applications were filed and the amounts claimed, providing a factual record of depositor applications and pending company law proceedings concerning repayment defaults by NBFCs.

Restriction on bank financing for gold: banks must not finance gold purchases except bona fide jeweller working capital.
Banks must not grant advances for purchase of gold in any form except for genuine working capital needs of jewellers; this prohibition includes primary gold, bullion, jewellery, coins and units of gold ETFs and gold mutual funds, and reiterates that advances against bullion should be withheld where assessed to finance auction purchases or speculative holdings.

Open market operations purchase of government securities via multi-security auction, with submission and settlement requirements.
The Reserve Bank will conduct an Open Market Operation purchase of specified Government of India dated securities via a multi-security auction using the multiple price method subject to an overall aggregate ceiling. The Bank may decide purchase quantum by security, accept less or marginally more than the aggregate amount, and accept or reject offers wholly or partially. Eligible participants must submit offers electronically on E-Kuber within the prescribed auction window or physically to the Mumbai Office; results will be announced the same day and payment and SGL delivery follow on the next banking day.