sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Latest Circulars »
 Master Direction - Know Your Customer (KYC) Direction, 2016
 Minutes of the Monetary Policy Committee Meeting April 4-5, 2018
 RBI launches Quarterly Order Books, Inventories and Capacity Utilisation Survey: January-March 2018 (Round 41)
 It is not Business as Usual for Lenders and Borrowers (N. S. Vishwanathan, Deputy Governor, Reserve Bank of India – April 18, 2018 – Speech Delivered at National Institute of Bank Management, Pune on Fourteenth Convocation)
 RBI clarifies that there is no currency shortage
 Auction for Sale (Re-issue) of Government Stock (GS) April 16, 2018
 RBI-Auction of Government of India Dated Securities April 16, 2018
 Sovereign Gold Bond Scheme 2018 -19-Series-I
 RBI-Sovereign Gold Bond Scheme 2018-19 Series-I, Operational Guidelines
  RBI-Interest rates for Small Savings Schemes
 Action Points for Lead Banks on Enhancing the Effectiveness of Lead District Managers (LDMs)

RBI issues Instructions on Priority Sector Lending Certificates; Launches Portal for Trading Them
April, 08th 2016

The Reserve Bank of India today issued instructions on trading in Priority Sector Lending Certificates (PSLCs) (FIDD.CO.Plan.BC.23/04.09.01/2015-16 dated April 7, 2016). While releasing the instructions, Shri S. S. Mundra, Deputy Governor, Reserve Bank also launched a platform to enable trading in the certificates through its Core Banking Solution (CBS) portal (e-Kuber). All Scheduled Commercial Banks (including Regional Rural Banks), Urban Co-operative Banks, Small Finance Banks (when they become operational) and Local Area Banks are eligible to participate in the trading.

Four kinds of PSLCs, namely, PSLC - Agriculture, PSLC – Small & Marginal Farmers, PSLC – Micro Enterprises and PSLC - General can be bought and sold via the platform. The certificates will have a standard lot size of ₹25 lakh and multiples thereof. There will be no transfer of credit risk on the underlying and the settlement of funds will be done through the e-Kuber portal. The detailed user guidelines for trading on the platform are also available on the portal.

Background

The Reserve Bank of India had comprehensively revised the priority sector guidelines in April 2015 which provided for the introduction of PSLCs as a mechanism to incentivise banks having surplus in their lending to different categories of priority sector. On lines of carbon credit trading, the goal of PSLCs is to allow market mechanism to drive priority sector lending by leveraging the comparative strength of different banks. For instance, a bank with an expertise in lending to small farmers can over perform there and get benefit by selling its over performance through PSLCs. Another bank that is better at lending to small industry can buy these certificates while selling PSLCs for micro enterprise loans.

Alpana Killawala
Principal Adviser

Press Release : 2015-2016/2375

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions