Short-term cooperative credit structure reform: PACS as BCs, CRAR targets, mergers and CBS deadlines, capital mobilization and governance changes.
The Committee requires CCBs and StCBs to attain phased CRAR targets (7% by 2014 15, 9% by 2016 17), estimates additional capital needs for 209 CCBs (aggregate about Rs.4,000-6,500 crore under scenarios) and identifies about 58 CCBs likely unsustainable without consolidation. It mandates PACS to function as business correspondents of banks (with village depositors/borrowers becoming direct CCB clients), prescribes capital mobilisation instruments (interest bearing capital deposits, perpetual bonds, enhanced loan linked shares, temporary Tier II recognition), sets deadlines (31 March 2013 for sub 4% CRAR remediation; 30 September 2013 for CBS/RTGS/NEFT/ATM/POS), and proposes governance and statutory changes to strengthen regulation, elections, auditor panels and grievance redressal.

Long-term fixed rate loans recommended expansion via long-term bank bonds, longer tenors and structured resets to improve funding.
The Committee recommends issuance of long-term bonds by banks to match infrastructure exposures, promotion of long-tenor fixed deposits, and use of the long G Sec yield curve to enable longer-tenor fixed rate loans. It advises encouraging institutional investor participation, offering fixed-rate loans with periodic interest resets consistent with base rate rules, exploring take-out financing and securitisation, charging prepayment penalties only on outstanding principal and keeping them reasonable, and prioritising customer education; RBI will examine the recommendations.

Crude oil price increase reported for Indian Basket, raising rupee equivalent and reflecting exchange-rate movement.
International crude oil price for the Indian Basket rose to US$ 109.39 per barrel on 21 January 2013, producing a rupee-denominated price of Rs 5892.84 per barrel; the release attributes the rupee increase to the dollar price rise and records the rupee-dollar exchange rate on the reporting date, with comparative figures for the previous trading day and recent fortnightly periods.

Crude oil price decline reported; rupee appreciation reduced domestic barrel price despite marginal dollar movement.
The international crude oil price for the Indian Basket was reported at US$ 108.92/bbl for 18 January 2013 with accompanying rupee and exchange rate figures; the rupee price fell on that date owing to rupee appreciation, and the release provides comparative daily and fortnightly price and exchange rate data to explain domestic price conversion.

Personal hearing in compounding is optional; applicants may submit information and appearance choice does not affect penalty.
The Reserve Bank of India clarified that appearing for a personal hearing in compounding under FEMA is optional; applicants may submit prescribed information with or after the application, may choose whether to appear, and are encouraged to appear personally rather than be represented, with the choice having no effect on the penalty. Rule 8(2) requires the compounding authority to afford an opportunity to be heard and to decide compounding applications expeditiously within the prescribed timeframe.

Portfolio investment scheme limits: company authorised to raise non resident investment ceiling, subject to FEMA compliance and RBI conditions.
Crew B.O.S. Products Ltd. passed board and shareholder resolutions to raise its non resident investor limit to 24% under the Portfolio Investment Scheme; RBI notified the enhancement subject to Regulation 5(3) of the FEMA Notification and reiterated that the Indian company retains responsibility for compliance with FDI policy, FEMA rules and downstream investment obligations, with monitoring and purchase approvals governed by RBI cut off and clearance procedures.

Under-recovery on diesel increases, raising OMC daily fiscal burden and reflecting higher international crude prices.
The PPAC increased the under-recovery on High Speed Diesel effective 16 January 2013 to Rs 9.60 per litre, raising OMCs' combined daily under recovery on Diesel, PDS Kerosene and Domestic LPG to about Rs 384 crore; Domestic LPG and PDS Kerosene under recoveries are computed monthly and receive separate government per unit subsidy support. The adjustment reflects reviewed international crude prices and exchange rates provided alongside the fortnightly computation.

Bank account numbering: RBI panel recommends longest IBAN, retain IFSC branch identifiers, and three-year coexistence.
The Committee recommends retaining the IFSC branch identifier because many banks rely on it for validation, reconciliation and failed-transaction handling; IFSC should continue for routing (and any new payment system should use IFSC). It advocates a uniform account numbering standard using IBAN and, after evaluating options, recommends the Longest IBAN (26 characters: country code, check digits, 4-character bank id using existing IFSC bank code, and an 18-digit BBAN allowing existing account numbers to be retained). IBAN and existing numbers should co-exist for about three years while banks implement technical and operational changes.

India financial system stability assessment: authorities accept phased reforms to strengthen supervision, liquidity management, and market infrastructure.
The FSAP finds manageable near term risks to India's financial stability but identifies structural and supervisory gaps: high public ownership, large group exposures, and mandatory SLR/CRR holdings that constrain market development; limited de jure regulator independence; incomplete consolidated supervision; and weaknesses in insurance solvency, issuer reporting, auditing, CCP liquidity management, and insolvency law. It recommends phased reform: strengthen statutory regulator autonomy, expand information sharing and supervisory colleges, tighten large exposure and related party rules, reduce SLR gradually to deepen bond markets, bolster resolution and deposit insurance powers, enhance CCP liquidity arrangements, and modernize insolvency and secured transactions frameworks.

Audit compliance obligations: banks must recover inadmissible payouts, fix official responsibility, issue certificates and monitor post-waiver lending.
The audit of the Agricultural Debt Waiver and Debt Relief Scheme, 2008 found benefits extended to ineligible accounts, claims on loans to intermediary MFIs, incorrect benefit amounts, reimbursement of inadmissible charges, non-issuance of waiver certificates and lack of monitoring of fresh loans. The Reserve Bank requires banks to recover inadmissible or excess payments, fix responsibility of officials and auditors, consider FIRs where records were tampered with, issue missing waiver certificates promptly, and begin monitoring outcomes for beneficiaries, and to report completion to the regional office.

Retail participation in government securities can be boosted through technology, retail oriented products and reduced transaction barriers.
The document sets out that retail participation in government securities is essential to diversify demand and stabilise the G sec market, and describes regulatory and operational measures undertaken by the Reserve Bank of India-legal facilitation under the Government Securities Act, non competitive bidding, odd lot trading, multi modal settlement, web based access for gilt account holders, DvP III settlement extension, widened NDS OM membership and mandated retail turnover targets for primary dealers-alongside policy recommendations: investor education, retail oriented product issuance (including inflation indexed bonds), leveraging technology and branch networks, market making for odd lots, consolidation of securities and reduction of transaction costs.

Crude oil price rises internationally while rupee appreciation reduces the rupee-denominated price and alters domestic valuation.
International crude oil price for the Indian Basket rose to US$ 109.57 per barrel on 09 January 2013 from US$ 109.11 on the previous trading day, while the rupee-denominated price fell to Rs 6021.97 per barrel on 09 January 2013 from Rs 6037.06 on 08 January 2013 due to rupee appreciation, with the exchange rate at Rs 54.96/US$.

Crude oil price update shows a rise, with exchange rate depreciation amplifying rupee-denominated increases.
Announcement of an upward revision in the international crude oil price for the Indian Basket, with corresponding rupee-denominated increase attributed to both a higher dollar price and rupee depreciation; tabulated day-to-day and fortnightly comparative figures for the crude benchmark and exchange rate are provided for short-term price tracking.

Foreign exchange earnings growth from tourism rises, with concurrent increases in foreign tourist arrivals and monthly receipts.
Foreign exchange earnings from tourism increased in 2012 in both rupee and US dollar terms with higher annual and December receipts compared to 2011; foreign tourist arrivals also rose overall in 2012 and for December year on year. Monthly arrival estimates use port data and FEEs are compiled from central banking sources.

Credit Default Swaps on corporate bonds authorised with defined user and market-maker roles, settlement and reporting rules.
CDS referencing listed or rated unlisted corporate bonds and specified short-term instruments are permitted with distinct roles for users (buy protection only, must hold underlying, no naked positions) and market-makers (may buy/sell protection). Trades require an RBI-regulated entity on one side; documentation, standardisation, and FIMMDA master agreements apply; physical settlement is mandatory for user-involving trades and unwinding by users must be with original protection seller at mutually agreed or FIMMDA price.

Repo eligibility expansion: short-term money market instruments allowed as collateral with revised rating-based haircuts applied.
Expansion of eligible repo collateral permits Commercial Papers, Certificates of Deposit and Non-Convertible Debentures of less than one year original maturity without a listing requirement but subject to rating criteria; listed corporate debt over one year remains eligible if rated AA or above and held in demat. A rating-based haircut schedule applies to market value on the trade date of the first leg, with reduced minimum haircuts for AAA, AA+ and AA and provision for higher haircuts based on repo tenor and remargining frequency.

Fraud reporting and review: quarterly fraud information to audit committees and annual reviews to board needn't be submitted to regulator.
For quarters ending June, September and December, fraud information must be placed before the Audit Committee in the month following the quarter, regardless of Board calendar. No separate review is required for the March quarter. Banks must conduct an annual fraud review, present a note to the Board or Local Advisory Board by the end of the following quarter, and while such annual reviews need not be sent to the Reserve Bank, they must be preserved for inspection by Reserve Bank officers.

Write off delegation: private banks may frame board approved bad debt write-off and compromise policies under existing guidelines.
Two earlier circulars on writing-off bad debts and compromise settlements are withdrawn, but banks must continue to follow the 1995 guidelines and other relevant instructions. Private sector banks may frame their own write-off and compromise policies provided these policies obtain Board approval and remain consistent with the extant supervisory guidance.

Under-recovery on diesel declines while LPG and kerosene remain unchanged, leaving oil-marketers with continued daily shortfalls.
Under-recovery on High Speed Diesel decreased to Rs 9.03 per litre effective 01.01.2013 while Domestic LPG and PDS Kerosene under-recoveries remained at Rs 490.50 per cylinder and Rs 30.64 per litre respectively; the Government provides additional subsidies on LPG and PDS Kerosene and under-recoveries are computed monthly. OMCs reported a daily under-recovery of about Rs 389 crore; international benchmarks cited include an Indian-basket crude price near US$ 108.46 per barrel and an exchange rate about Rs 54.78 per US dollar.