Core Investment Companies overseas investment rules require registration for financial-sector investments and impose limits, reporting, and compliance.
RBI's 2012 Directions require CICs seeking overseas investment in the financial sector to obtain a Certificate of Registration and comply with registered-CIC regulations; exempted CICs may invest abroad in non-financial sectors without RBI registration. Eligibility conditions include ANW at least 30% of aggregate risk-weighted assets, NNPA 1% of net advances, and generally three years of profit. Aggregate overseas investment is capped at 400% of owned funds and financial-sector investment at 200%; investments must be in regulated foreign entities, comply with FEMA, and satisfy reporting, audit certification and structural restrictions.

Bilateral swap arrangement enables yen-rupee currency swaps against the US dollar to address short-term liquidity and supplement cooperation.
Bilateral Swap Arrangement between the Bank of Japan and the Reserve Bank of India allows swapping of local currencies (yen or rupee) against the US dollar to address short term liquidity and supplement international financial arrangements; activation is tied to an existing or expected IMF support program while permitting a limited portion of maximum drawings without IMF support, and the arrangement is effective for a three year period.

Fuel under-recovery: diesel, LPG and kerosene shortfalls drive substantial daily subsidy burden and adjusted pricing.
Under-recovery increased effective 01.12.2012: High Speed Diesel Rs 10.03 per litre, Domestic LPG Rs 520.50 per cylinder, and PDS Kerosene Rs 30.93 per litre; specified government subsidies on PDS Kerosene and Domestic LPG are provided and under-recoveries are computed monthly. OMCs incurred an estimated daily under-recovery of about Rs 420 crore on diesel, PDS kerosene and domestic LPG, with cumulative product-wise under-recovery totals reported for April-September 2012 and international crude and exchange rate movements informing the calculations.

Minimum support prices secure remunerative prices for growers while rural banking expansion extends services to unbanked villages.
Minimum support prices are declared seasonally for major commodities to ensure remunerative prices, with procurement by public and cooperative agencies; complementary schemes (RKVY, NFSM, NHM, ISOPOM), market intervention, crop insurance and agriculture credit initiatives support farm income and productivity. A Vaidyanathan Committee-based package to revive Short-Term Cooperative Credit Structure is being implemented with a specified outlay. Banks are directed to allocate a portion of new branches to unbanked rural centres and SLBCs prepared a roadmap to provide banking services to identified unbanked villages, with near-complete coverage reported.

Direct cash transfers: ministries must digitize beneficiaries and seed accounts with unique IDs for seamless delivery.
Direct Cash Transfers are to be implemented immediately with ministries required to digitise beneficiary lists and seed records with Aadhaar numbers for seamless delivery. Implementation committees will meet weekly; Financial Inclusion and Technology Committees will resolve banking infrastructure, accounting, Aadhaar Payment Bridge activation and technical convergence. UIDAI and the Department of Information Technology will assist ministries with Aadhaar penetration and provide dedicated personnel. The Financial Inclusion Committee must ensure easy bank account opening, Aadhaar seeding of accounts, flexible Business Correspondent operations with incentive design, and consideration of the postal network for cash disbursal.

Restrictions on bank operations under Section 35A: prior RBI approval required for loans, investments, liabilities, disposals.
Statutory directions require the bank to obtain prior written approval from the Reserve Bank before granting or renewing loans, making investments, incurring liabilities (including borrowing and accepting fresh deposits), disbursing payments, entering compromises, or selling assets, except as permitted in the directive; depositor withdrawal limits are prescribed and withdrawals may be adjusted against depositors' liabilities, and the directions remain time bound and reviewable.

Short-term Treasury bill auction offered via multiple price method with non-competitive allocation outside the notified amount.
Announcement of an auction of 182 day Treasury Bills using the Multiple Price Auction method, with allocation to non competitive bidders made outside the notified amount at the Reserve Bank's discretion; sale subject to the General Notification terms. Competitive bids to be submitted electronically via the Reserve Bank's Core Banking Solution within a prescribed window on the auction date, with a separate earlier window for non competitive bids, same day results announcement, and a scheduled payment date for successful bidders.

Presentation of central bank accounts reviewed by technical committee to consider consolidation and disclosure improvements.
A Technical Committee will review the form and presentation of the RBI's Balance Sheet and Profit and Loss Account, management commentaries and notes, and recommend changes including potential legislative or regulatory modifications; its remit includes whether to merge Issue and Banking Department Balance Sheets, whether separate or combined Profit and Loss Accounts should continue, and whether disclosures and notes require elaboration, with stakeholder comments invited to inform recommendations.

Regulatory penalty for banking compliance breaches after show cause process resulted from multiple prudential violations.
A regulatory monetary penalty was imposed following a show cause process and examination of the bank's reply, concluding that multiple breaches of prudential and operational norms were substantiated. Breaches included directives on on site ATM openings, extension of finance outside the area of operations, excessive exposure to housing and real estate, single party exposure limits, unsecured advance limits, loans to directors, issuance of guarantees for non customers, and non filing of Suspicious Transaction Reports.

Provisioning for restructured advances increased, raising bank reserve obligations for standard and upgraded non-performing accounts.
Banks and financial institutions must apply an enhanced provisioning requirement for restructured accounts: standard restructured advances attract 2.75 per cent provision for the first two years from restructuring (including moratorium periods and two years thereafter), and restructured non-performing accounts upgraded to standard attract 2.75 per cent in the first year after upgradation. Loans to projects under implementation with extended DCCO beyond specified short extensions similarly attract 2.75 per cent from the date of restructuring for the period specified by the guidelines. All other income recognition, asset classification and provisioning rules remain unchanged.

Government securities reissue auctions: uniform-price sale with competitive and non-competitive bidding and underwriting framework applies
Re-issuance of three dated Government securities will be offered by uniform price auction on the Reserve Bank of India's E-Kuber system, allowing both competitive and non competitive bids with up to five percent of notified amounts reserved for eligible individuals and institutions under the Non-Competitive Bidding Facility. Specified electronic submission windows, auction result and settlement dates are set. The stocks will qualify for ready forward transactions and when issued trading; underwriting by Primary Dealers will follow the Revised Scheme of Underwriting Commitment and Liquidity Support, with ACU underwriting bids accepted via E-Kuber within the prescribed timeframe.

Special Cell for SC/ST beneficiaries required to monitor and ensure bank compliance with priority sector credit directions.
Requirement to establish a Special Cell for SCs/STs in all Indian Scheduled Commercial Banks to monitor and promote credit flow to Scheduled Castes and Scheduled Tribes; banks that have not done so are instructed to set up the cell and ensure implementation of RBI Master Circular directions on credit facilities for SC/ST beneficiaries.

Foreign investment limits updated for key sectors, enabling expanded entry with prescribed safeguards and local sourcing requirements.
The Government amended sectoral FDI permissions and incorporated those changes into the FEMA Regulations (Sixth Amendment, 2012), specifying permitted foreign equity limits in defence, single brand and multi brand retail, air transport companies, and power exchanges, with applicable conditionalities and prior approval where required. The policy attaches safeguards, a local sourcing requirement to encourage value addition, and procedural assessment of pending single brand retail proposals against these parameters without a fixed decision timeline.

FDI policy openness expands inflows while enforcing compliance and facilitating investors through a single window mechanism.
Foreign Direct Investment inflows increased in 2011-12 versus 2010-11, with sectoral and RBI regional office wise breakdowns provided in Annexure I and Annexure II respectively; regional reporting reflects RBI receipt locations and is not strictly State wise.

Handloom revival package provides loan relief and credit support; mills restructured under prudential banking norms.
The Government implemented a Handloom Revival, Reform & Restructuring Package providing loan waivers for cooperatives and individual weavers and measures for interest subsidy, margin money and credit guarantee to support fresh lending. In parallel, a debt restructuring framework for loss making textile mills was approved for bank administration on a case by case basis within Reserve Bank prudential norms, after which the industry reported no losses and production indicators improved.

Foreign investment permissions from Pakistan expanded, with sectoral exclusions and an approval route for cross border investments.
Permission was granted for foreign direct investment from Pakistan into India across most sectors excluding defence, space and atomic energy, under DIPP policy. RBI amended FEMA regulations and issued circulars clarifying that overseas direct investment by Indian parties in Pakistan will be subject to the government approval route, aligning inward and outward investment controls with the government's policy.

IPv6 migration required for banks and payment gateways; institutions must complete transition within the stipulated timeframe and seek DoT support.
Migration from IPv4 to IPv6 is required for banks, payment gateways, insurance companies and related financial entities to address address exhaustion and support national broadband objectives; stakeholders must plan and complete transition within the stipulated timeframe, constitute special implementation teams, and coordinate with the Department of Telecommunication which has provided a designated contact for assistance.

IT modernisation project for Department of Posts to computerize all post offices and create national IT infrastructure.
Approval authorizes nationwide computerization and creation of a shared national IT infrastructure for mail, banking, insurance and other citizen-centric services across all post offices as a Mission Mode Project. The project is segmented into eight components covering datacentre, network, hardware, software and change management, to be rolled out in phases and followed by an operation and maintenance phase under contract. Procurement is conducted through multiple RFPs with vendor selection and contracting at various stages.

Unhedged foreign currency exposure: banks must evaluate, price associated risks and report Board approved compliance.
Banks must establish rigorous monitoring, evaluation and pricing mechanisms for corporates' unhedged foreign currency exposure, adopt Board approved hedging policies that may stipulate limits on unhedged positions, account for aggregate exposure from all sources (including SMEs and consortium arrangements), price the risk into credit risk premiums for fund based and non fund based facilities, obtain Board approval, and furnish compliance/action taken reports to the Reserve Bank in accordance with the guidelines.

Information sharing requirement for credit, derivatives and unhedged foreign currency exposures conditions loan sanctions; non compliance invites penalties.
Banks must implement an effective mechanism for inter bank information sharing on borrowers' credit, derivatives and unhedged foreign currency exposures by end December 2012; from January 1, 2013 no fresh sanction, renewal or ad hoc loan shall be granted without obtaining or sharing the necessary information, and non compliance will invite supervisory action, including penalties.