RBI extends RRA

During the year, the scheme received 200 applications which contained more than 350 suggerstions. The suggestions pertained to the entire gamut of operations of the Reserve Bank. Implementation of the accepted suggestions has paved way for streamlining several existing procedures in the RBI, particularly in its public dealing departments and improving its customer service.

The suggestions have also compelled a review of the RBI’sreporting systems and have resulted in reducing a number of redundant returns to the benefit of the users of services of the RBI. More importantly, the rra has created an awareness in the RBI to be more responsive to the needs of its customers.

One of the important achievements of the rra was initiating thework relating to compilation of subjectwise master circulars in a manual form by merging quite a large numebr of circulars issued over the years on a particular subejct into one circular. When ready, this would help the users of services of the RBI to get all current instruictions on a particular subject at one place instead of referring to quite a large number of circulars. Some master circulars on subjects, such as loans and advances, statutory audit of banks, prudential norms and provisions, bank frauds, export finance, priority sector leading are currently being finalised.

Another noteworthy achievement was decentralisation of thework of fixing service charges which was so far being attended to by the Indian banks’ association (iba) and the foreign exchange dealers association of India (fedai) for commercial banks and authorised dealers in foreign exchange, respectively. Individual banks now themselves work out and levy service charges based on the cost of providing services.

Other suggestions that are implemented are:the reserve bank has -done away with sample test checking of newly printed micr instruments at micr cheque processing centres before putting them into use – passed on regulations over money market mutual funds to securities exchange board of India.

– Granted general permission to mutual funds for issuing units toforeign institutional investors.

– Withdrawn the requirement of obtaining succession certificatefrom the legal heirs irrespective of the amount involved int he account of a deceased customer.

– Decided that the banks should pay interest at the rate asapplicable for appropriate tenor of fixed deposit for the period of delay beyond 10/14 days in collection of outstation instruments. Further, banks should also pay penal interest at the rate of 2 per cent above the fixed deposit rate applicable for abnormal delay caused by the branch in collection of outstation instruments. – worked out a procedure for dissemination of timely information of foreign institutional investors (fii) investments in Indian companies through the RBI web site to facilitate free trading in shares on stock exchanges by fiis.

– Begun a review of its regulations and reporting systemsrelating to current account transactions.

– Begun making available information to general public throughemail on demand.