Inflation indexed savings securities link returns to CPI with compounded accrual and restricted early redemption under penalty.
IINSS-C are retail securities combining a fixed real rate and a CPI-based inflation rate, compounded half yearly into principal and payable at maturity, using the final combined CPI with a three month lag as reference. Early redemption is permitted only on coupon dates subject to minimum holding periods differing for senior citizens and others and a penalty equal to half the last coupon. Specified individuals and institutions are eligible to subscribe through designated banks and a stock holding agency within the announced subscription window.

Reference rate determination affects cross currency exchange quotations and sets the SDR Rupee linkage for market transactions.
The Reserve Bank of India publishes Reference Rates for major currencies, giving the US dollar and Euro reference rates for December 19, 2013 (US dollar Rs. 62.3800; Euro Rs. 85.2945) with the prior day's figures for comparison, derives other currency exchange quotations from the US dollar reference and cross currency middle rates, and states that the SDR Rupee rate will be based on the published reference rate.

Monetary policy tapering: moderate cut in asset purchases with continued low-rate guidance and limited market surprise.
The US Federal Reserve announced a moderate reduction in the pace of monthly asset purchases, confirmed continued purchases of Treasury and agency mortgage-backed securities and use of other policy tools until labor market improvement in a context of price stability, and maintained that the exceptionally low target range for the federal funds rate will remain appropriate while unemployment remains elevated. The Government notes market expectations already reflected these changes and states it is better prepared to address any consequences.

Bilateral currency swap arrangement expanded to broaden the facility and reinforce bilateral financial cooperation and liquidity support.
Bilateral currency swap arrangement between the Reserve Bank of India and the Bank of Japan has been revised to enhance the currency swap facility from USD 15 billion to USD 50 billion, executed by the RBI Governor under terms agreed by both sides and with Government authorization, increasing available swap lines to expand foreign currency liquidity and central-bank coordination.

Bilateral currency swap arrangement expanded; RBI authorised to sign agreement strengthening bilateral financial cooperation between India and Japan.
The Government approved an increase in the bilateral currency swap arrangement and authorised the Reserve Bank of India to execute the amended agreement with the Bank of Japan, implementing agreed terms to support foreign exchange liquidity and strengthen bilateral financial cooperation.

Reference Rate publication sets exchange benchmarks for USD and EUR; derived GBP and JPY rates provided with previous day comparisons.
The Reserve Bank of India published Reference Rate figures for the US dollar and the euro for December 18, 2013, with prior day comparisons; derived pound sterling and Japanese yen rates are provided based on the dollar reference rate and cross currency middle quotations, and the SDR Rupee rate is to be based on the published reference rate.

Multi-Level marketing schemes flagged as illegal under prize chits and collective investment rules, prompting regulatory verification.
Companies operating Multi-Level Marketing schemes are being treated as contravening the Prize Chits and Money Circulation Schemes framework or operating as unauthorised Collective Investment Schemes while not being registered as Non-Banking Finance Companies. The corporate regulator has shared particulars of a large set of such companies with the banking regulator for verification to enable cross-regulatory scrutiny of unauthorised financial business.

Deposit insurance requirement for public company deposits pending framing of operational rules in consultation with the central bank.
Section 73(2)(d) of the Companies Act requires companies allowed to accept public deposits to provide deposit insurance in a prescribed manner and extent; operationalisation depends on framing rules developed in consultation with the central banking authority to specify manner, extent and procedural modalities.

Early recognition of financial distress: incentivise lender committees and regulatory measures to enable timely resolution and fair recovery.
Proposals require early lender committees with timelines and regulatory incentives to implement resolution plans, independent evaluation of large restructurings to ensure viable plans and fair sharing of losses and upside between promoters and creditors, and accelerated provisioning where agreement is absent; complementary measures liberalise asset sale treatment, permit spreading disclosed sale losses, allow extended takeout/refinancing without classification as restructuring, enable leveraged buyouts by specialised buyers, and strengthen asset reconstruction companies and private sector participation to improve recovery and market functioning.

Reference Rate publication sets official currency benchmarks and governs SDR Rupee conversion for market reference and transparency.
The Reserve Bank issues Reference Rates for major currencies against the Rupee, providing official benchmarks for the US dollar and Euro and deriving other currency rates through the US dollar Reference Rate combined with middle cross currency quotes; the release notes that the SDR Rupee rate will be based on the stated Reference Rate and supplies prior day comparisons for market transparency.

Auction of government securities using uniform and yield-based methods; non-competitive bids allowed and when-issued trading permitted.
The notice schedules auctions of multiple central government stocks on December 20, 2013, using the uniform price method for price-based issues and a yield based auction for a long-dated stock. Up to five percent of each notified amount is reserved under the Non-Competitive Bidding Facility; competitive and non-competitive bids must be submitted electronically within specified time windows. Results and payment follow the announced timetable, and the stocks will be eligible for When Issued trading under the central bank's guidelines.

Reference rate for major currencies published, governing cross currency conversions and SDR rupee valuation for market use.
The Reserve Bank of India published official daily reference rates for the US dollar and Euro, compared them with the prior day, and, using the dollar reference and cross currency mid rates, provided corresponding GBP and JPY exchange rates against the rupee; the release also states that the SDR Rupee rate will be based on the published reference rate.

Marginal Standing Facility cut and liquidity measures support growth while repo and CRR adjustments anchor inflation expectations.
The Reserve Bank combined a reduction in the Marginal Standing Facility rate with an increase in the repo rate to influence short term funding costs, while operational measures - lowering the minimum daily Cash Reserve Ratio balance, introducing weekly variable rate 7 day and 14 day term repos indexed to a share of system NDTL, conducting open market purchase auctions, and providing a refinance facility to SIDBI - were deployed to improve liquidity and support credit to medium, micro and small enterprises.

Capital inflow measures seek to stabilize foreign exchange and restore investor confidence after prior portfolio outflows.
In response to substantial foreign portfolio outflows after indications of tapering, the Government, with the Reserve Bank and SEBI, introduced measures to augment capital inflows: liberalised FDI norms for select sectors; a swap window for banks to swap fresh FCNR(B) dollar funds with the Reserve Bank; an increase in banks' overseas borrowing limit to 100% of unimpaired Tier I capital with swap option; and permission to avail ECBs from foreign equity holders under the approval route for general corporate purposes. These steps coincided with currency appreciation and rebuilding of foreign exchange reserves, and a lower projected current account deficit reduces expected tapering impact.

Priority sector lending for weaker sections mandates dedicated credit share and concessions on education loans for girls.
Priority Sector Lending obligations require scheduled commercial banks to allocate a dedicated portion of credit to weaker sections, including Scheduled Castes, Scheduled Tribes and certain individual women borrowers, measured against Adjusted Net Bank Credit or credit equivalent of off balance sheet exposures, whichever is higher; industry guidance recommends an interest rate concession on education loans for girl students and there is no current government proposal for national banks exclusively for SCs and STs.

Banknote production modernisation and indigenization enables phased withdrawal of old series while securing domestic paper supply.
Phasing out of older banknote series is effected through central bank instructions to banks to prevent re issuance and by staged withdrawal processes for specified denominations. Simultaneously, printing infrastructure has been modernised with state presses installing advanced machinery and in house plate production, while indigenisation of banknote paper is being pursued via new paper lines at an existing mill and additional lines through a joint venture mill to meet domestic paper requirements.

Reference Rate for major currencies updated; dollar and euro benchmarks set with derived pound and yen rates adjusted.
Reference rates for the US dollar and the euro are published as daily benchmarks, with the US dollar reference rate and the euro reference rate reported for December 13, 2013 and corresponding prior day rates noted. Based on the Reference Rate for the US dollar and middle cross currency quotes, derived exchange rates for the pound sterling and the Japanese yen against the rupee are provided, and the SDR rupee rate will be based on the published reference rate.

Exemption from Competition Act: banks notified for amalgamation exempted from merger jurisdiction under competition law.
The Government has exempted a banking company notified for amalgamation under the Banking Regulation framework from the application of sections 5 and 6 of the Competition Act, which confer merger-control jurisdiction on the Competition Commission. The exemption removes those merger-control provisions for banks in the specified amalgamation context, and the Global Trust Bank-Oriental Bank of Commerce amalgamation occurred before those Competition Act provisions were in force.

Reference exchange rate announced for major currencies, with derived pound and yen levels and SDR rupee linkage.
The Reserve Bank of India issued reference rates for the US dollar and the euro and provided previous day comparisons; using the US dollar reference rate and middle cross currency quotations the Bank derived exchange levels for the pound sterling and the Japanese yen, and stated that the SDR rupee rate will be based on the published reference rate.

Banknote issuance introducing the rupee symbol on new notes without inset letter, while earlier notes remain legal tender.
Issuance of five hundred rupee banknotes incorporating the rupee symbol on obverse and reverse without an inset letter in the numbering panels; notes bear the Governor's signature and year of printing and retain the Mahatma Gandhi Series 2005 design, while previously issued banknotes of the same denomination remain legal tender.