Reserve Bank of India – Tenders

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A pre bid meeting on tender for Empanelment of Pune based Car Hiring Agencies / Companies for providing car hiring services at CAB Pune issued on RBI website on March 31, 2021 was held at 11.00 am, at CAB, Pune, on May 07, 2021. The names of firms and their representatives who participated in the meeting are given in Table1.

Table 1
Sl. No Name of the representative Name of the organization
1. Shri Jitendra Ware M/s Executive Car Rental Services
2. Shri Shrinath Dudhagi M/s Jogeshwari Travels

2. Shri Shivaram G, AM welcomed the vendors and conducted the discussion while Maj Somit Dutta, AGM chaired the meeting. The queries raised by the representatives and the clarifications thereto are given in Table 2:

Table – 2
Sr No Queries by the bidder Clarification
  M/S Executive Car Rental Services
1. Whether the clause for providing vehicle at short notice from the Bank can be removed or amended? As per Section III clause 12 of the tender document “The agency shall provide car on written or verbal instructions over phone within/ at the time specified therein. The agency shall also be required to provide taxi at short notice from the Bank (say within an hour in case of emergency). In case the agency fails to provide the vehicle as per our request, either verbal over phone or written, the Bank shall be free to remove the agency from the panel.”

Once the tender is issued, clause cannot be removed or amended. This was the condition for existing contract also.

2. As per Clause 35 of Section III of the tender “The invoices sent for payment without the feedback form/ without user’s signatures on the feedback form may be denied payment by the Bank.”
What if user refused to give/sign feedback form?
As per Clause 35 of Section III of the tender “A feedback form (as per Annexure I) should be provided to each guest/ user of the service before the commencement of the journey. The signature of the user should be obtained on this feedback form and it should be submitted to the Bank along with duty slip for payment.

In case the user is not willing to provide feedback, then user may be requested by the driver to tick ‘No’ in the first line of the form (I am willing/ not willing to provide the feedback for the journey) and sign the form. The invoices sent for payment without the feedback form/ without user’s signatures on the feedback form may be denied payment by the Bank.”

In odd case, even after requested by the driver, if user does not sign feedback form, driver will tick ‘No’ and sign. In that case feedback will be obtained by the Bank from the user.

3. While renewal of the contract how the change in fuel/labour charges will be considered? As per Section III- Clause 49 of the tender document “The empanelment will be valid for a period till March 31, 2022 and thereafter will be renewed for two years one year at a time subject to annual review by the Bank based on the performance of the service provider/s. The rates accepted by the Bank shall remain valid for a period till March 31, 2024 from the date of empanelment.

These may be reviewed annually in view of major changes that may occur in labour laws or Govt. decision affecting fuel pricing etc.”

4. Whether the bid can be submitted online? The bidder should submit tender documents in physical/hard copy only, at CAB, Pune as per Section III -Clause 39 of the tender document.

In terms of Section III-clause 39 (b) of the tender document. “Tenders received by fax or email or any manner other than specified above shall not be accepted and shall be summarily rejected”

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Chola MS Insurance posts ₹374-crore PBT in FY21

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Cholamandalam MS General Insurance Company Ltd (Chola MS), a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group, Japan, has reported a profit before tax of ₹374 crore and a gross written premium (GWP) of ₹4,388 crore in FY21.

In the previous fiscal, the company reported a GWP of ₹4,398 crore and a profit after tax of ₹149 crore.

The company’s performance drew level with the previous year’s volumes despite the pandemic induced lockdown and economic slowdown, said a statement.

Profit before Taxes (PBT) grew by 47 per cent to ₹374 crore supported by strong investment income of ₹804 crore with the investment corpus crossing ₹11,000 crore.

During FY21, Covid-19 related health claims of over ₹140 crore rendered the Combined Ratio (CoR) higher at 107.28 per cent.

“Despite the slowdown in lending among our major financier partners, Chola MS has attained growth in volumes from newer channel acquisitions, growth in fire line of business in bancassurance, OEM programmes and in-agency business across motor and health,” said Suryanarayanan V, Managing Director, Chola MS.

Higher growth rate

The Company had a 14 per cent growth in Q4 (Jan-March quarter) against the year-ago quarter which was higher than the industry growth.

Chola MS expects to sustain higher than industry growth rate in FY21-22.

The Company re-oriented its product mix across and within motor segment to step up volumes in commercial lines and retail health and in cars and two-wheelers.

Chola MS had a market share of 2.6 per cent and ranked 8th amongst private players in the general insurance industry.

 

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‘Green bonds, a sustainable capital option for climate change projects’

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Green bonds have the potential to provide sustainable capital for climate change projects such as electric vehicles, mass rapid transport systems, water and irrigation management and renewable energy.

“While India has seen sustained investment in renewable energy over the last 8-10 years, which has resulted in accelerated growth for the sector, significant investments are still required. And the Indian economy requires massive long term, cost-effective financing for other green sectors, where green bonds could provide the much needed support,” according to Deepto Roy, Partner Project & Project Finance, Shardul Amarchand Mangaldas & Co.

In an exclusive interaction with BusinessLine, Deepto Roy explains how green bonds could make a difference by adoption of a national investment strategy aligned with a transition to low-carbon and climate-resilient development. Excerpts:

How do you see green bonds bridging funding requirements and making a difference?

Green bonds can help drive down cost of capital for sustainable projects, where the proceeds are exclusively utilised for financing climate change mitigation. Raised by corporates or by financial institutions for lending to renewable projects, they address the high cost of infrastructure funds and can help in ensuring better return on equity while driving down tariffs.

Infrastructure financing available in India typically suffers from asset-liability mismatches, where the project revenues do not necessarily track the repayment obligations of the financing. Bond refinancing can address this situation.

Bank debt has been a primary source of funding for the renewable sector. But banking funds are limited and subject to sectoral limitations and liquidity concerns for the financial institutions. For continuous growth bank funds need to be cycled effectively.

How has the green bond market evolved over the years? What are its prospects?

In 2015, Exim Bank and IDBI became the first Indian issuers of green bonds. They were followed by YES Bank and China Light & Power Wind Farms India. In 2016, NTPC, Axis Bank and PNB Housing Finance raised green bonds, the latter two for funding “green buildings”.

Later in 2017, IREDA and the Indian Railways Finance Corporation (IRFC) raised green bonds from the market. In the same year, the Securities & Exchange Board of India (SEBI) issued the “Disclosure Requirements for Issuance and Listing of green bonds”.

Also in 2017, Jain Irrigation raised one of the few non-renewable power specific green bonds. It was intended to finance water use infrastructure.

In 2018 the State Bank of India raised $650 million in certified climate bonds. In October 2019 India joined the International Platform of Sustainable Finance (IPSF) to scale up environmental friendly investments.

What are the challenges in deployment of green bonds in the country?

The development of the green bond market necessarily depends on the development and strengthening of the general corporate bond market. India’s sovereign credit rating of BAA2 means that many green bonds need credit enhancement to attract international investors. Multilateral development banks such as the International Finance Corporation (IFC) and the Agence Francaise re Development (AFD) have credit enhancement support in the past and they would continue to play an important role.

The renewable sector is also facing a number of challenges, which make financing green bonds challenging such as rapidly falling tariffs, delays in execution of power purchase agreements after signing of bids and cancellation of tenders post issuance of letters of allotment.

There is worldwide increases in the price of modules and other solar plant components and additional expenditure on account of the imposition of Basic Customs Duty (BCD) from April 2022 and potential delays in claiming contractual relief.

So what is the way forward for the Green Bond market?

India has became the second largest green bond market among developing countries in 2020, but the size of the market is one-tenth that of China. An RBI study on green bonds show that the cost of raising green bonds have remained higher than other bonds; and green bonds constituted only 0.7 per cent of the bonds issued in India since 2016. Clearly there is a long way to go for the Green Bond market, although over subscription of the offerings that have happened seem to indicate that significant appetite exists in the market.

The size and the penetration of the Green Bond market can go up with the encouragement of more robust foreign exchange risk management mechanisms. This will make Indian green bonds more attractive. Further, there is a need for mechanisms for a rupee denominated bond market which can be accessed by international investors.

And there is a need to create tools and certification methods for green tagging sustainable projects on the books of financial institutions and governments and building project pipelines that can underlie future green bond issuances.

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Performance of Banks on Govt schemes to be monitored for continuation as Agency Banks

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Scheduled private sector banks (PvSBs) intending to handle government agency business as agency banks of the Reserve Bank of India (RBI) can do so upon execution of an agreement with the latter.

This will be subject to the condition that the concerned bank is not under Prompt Corrective Action (PCA) framework or moratorium at the time of making the application or signing of the agreement with RBI.

Revised guidelines

The central bank on Monday issued “revised guidelines/ framework for authorising Scheduled PvSBs as agency banks of RBI for conduct of government business attracting agency commission” following lifting of the embargo put in place from September 2012 by Department of Financial Services (DFS), Ministry of Finance (MoF) on further allocation of Government business to private sector banks.

RBI said the performance of the agency banks, on a matrix of various government initiatives and Schemes, may be reviewed from time-to-time by the government in consultation with RBI based on which the permission given to the concerned bank to undertake government business could be potentially withdrawn.

Eligible transactions

Among the transactions relating to government business undertaken by agency banks that are eligible for agency commission are: revenue receipts and payments on behalf of the Central/State Government; pension payments in respect of Central / State Governments; Special Deposit Scheme (SDS) 1975.

The other transactions that are eligible for agency commission are: Public Provident Fund (PPF) Scheme, 1968; Senior Citizen Savings Scheme (SCSS), 2004; Kisan Vikas Patra, 2014 and Sukanya Samriddhi Account; and any other item of work specifically advised by Reserve Bank as eligible for agency commission (that is Relief Bonds/ Savings Bonds etc. transactions) .

The choice of accrediting an agency bank (including scheduled private sector agency bank) for any particular government agency business rests solely with the concerned Central Government Departments /State Governments.

Further, Government Departments/ State Governments have the option to discontinue the arrangement after giving notice to the concerned agency banks, keeping RBI informed.

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Reserve Bank of India – Press Releases

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The Reserve Bank of India has appointed Shri Jose J. Kattoor as Executive Director (ED) with effect from May 04, 2021.

Prior to being promoted as ED, Shri Jose J. Kattoor was heading Bengaluru Regional Office of the Reserve Bank as Regional Director for Karnataka.

Shri Kattoor has, over a span of three decades, served in communication, human resource management, financial inclusion, supervision, currency management and other areas in the Reserve Bank.

As Executive Director, Shri Kattoor will look after Human Resource Management Department, Corporate Strategy and Budget Department and Rajbhasha Department.

Shri Kattoor holds a Post Graduate qualification from Institute of Rural Management, Anand, Bachelor of Law from Gujarat University, and Advanced Management Program (AMP) from Wharton School of Business, Pennsylvania, besides having earned professional qualifications including Certified Associate of Indian Institute of Banking and Finance (CAIIB).

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/189

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Reserve Bank of India – Notifications

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RBI/2021-22/36
CO.DGBA.GBD.No.S77/42.01.033/2021-22

May 10, 2021

All Scheduled Commercial Banks in India

Dear Sir / Madam

Government Agency Business Arrangement – Appointment of Scheduled Private Sector Banks as Agency Banks of Reserve Bank of India (RBI)

Please refer to RBI Circular RBI/2011-2012/377; DGBA.GAD.No.H-5029/42.01.033/2011-12 dated January 31, 2012 on the captioned subject.

2. In this regard it is informed that the embargo put in place from September 2012 by Department of Financial Services (DFS), Ministry of Finance (MoF) on further allocation of Government business to private sector banks has since been lifted by them vide their communication dated February 24, 2021.

3. Based on the above developments, the existing guidelines on appointment of Scheduled Private Sector Banks as Agency Banks of RBI have been reviewed and the revised guidelines/framework for authorising Scheduled Private Sector Banks as agency banks of RBI for conduct of government business attracting agency commission are as follows:

(i) For existing Private Sector Agency Banks (already having agency banking agreement with RBI):

(a) Such existing private Sector Agency bank with whom RBI already has agency banking agreement and who are authorized to do government agency business for Civil/Non-Civil Ministry/Department (for Central Government) or concerned department of a State Government (for State Government) may continue to do these government agency business for Central and/or State Governments without taking any fresh approval from RBI.

(b) For the purpose of undertaking fresh/additional government agency business by these existing private sector agency banks, after obtaining approval from O/o CGA (for Central Government) or the Finance Department of the State Government (for State Government) they need to obtain approval from DGBA, CO as per the Circular no. RBI/2011-2012/377; DGBA.GAD.No.H-5029/42.01.033/2011-12 dated January 31, 2012.

(ii) For other private sector banks (not having agency banking agreement with RBI)

Scheduled private sector banks, not having agency banking agreement with RBI, but intend to handle Government agency business, may be appointed as agents of RBI upon execution of an agreement with RBI. This will be subject to the condition that the concerned bank is not under Prompt Corrective Action (PCA) framework or moratorium at the time of making the application or signing of the agreement with RBI.

(iii) The choice of accrediting an agency bank (including scheduled private sector agency bank) for any particular government agency business rests solely with the concerned Central Government Departments /State Governments. Further, Government Departments /State Governments have the option to discontinue the arrangement after giving notice to the concerned agency banks, keeping RBI informed.

(iv) The procedure to be followed to accredit an agency bank (including scheduled private sector agency bank) will be as under:

  1. For Central Government/Union Territory business: For Central Government/Union Territory business, the concerned Civil/Non-Civil Ministry/Department may work out the arrangement with the agency bank and send the proposal of accreditation of the agency bank/providing new/additional government agency business to the O/o CGA for examination. The O/o CGA will forward their recommendation on the proposal to DGBA CO and on consideration, RBI will formally authorise the agency bank as accredited bank/ for providing the new/additional government agency business to the concerned Civil/ Non-civil Ministry/Department.

  2. For State Government business: The concerned Department of the State Government may work out the arrangement and approach the Finance Department of the State Government which will recommend the proposal for accreditation of the agency bank/providing new/additional government agency business to the concerned Regional Director of RBI, who will forward the case with his/her comments to the DGBA, CO for approval and further action. On consideration, RBI will formally authorise the agency bank as accredited bank/for providing the new/additional government agency business to the concerned State Government.

(v) Once RBI authorises a bank for any Government business, separate approval from RBI with regard to mode (physical or e-mode) and area of operations is not required and the same will be decided by the O/o CGA (for Central Government) or the Finance Department of the State Government, keeping RBI informed in the matter.

(vi) It may please be noted that performance of the agency banks, on a matrix of various Government initiatives and Schemes, may be reviewed from time to time by the Government in consultation with RBI based on which the permission given to the concerned bank to undertake Government business could be potentially withdrawn.

4. The revised guidelines come into effect from the date of the circular.

Yours faithfully

(R. Kamalakannan)
Chief General Manager

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India Inc’s overseas borrowing touches $9.23 billion, a two year high in March

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External commercial borrowings (ECBs) of Indian corporates have hit a two-year high of $9.23 billion in March 2021. Prior to this, the overseas borrowing of India Inc touched a monthly high of $12.18 billion in March 2019.

The spike in overseas borrowing comes after months of lacklustre demand for external debt due to surplus liquidity in the domestic market, muted credit demand and absence of major expansion plans by Indian corporates since the onset of the pandemic.

After hitting an historic high of $52 billion in FY20, overseas borrowing of India Inc fell sharply since the beginning of FY21. Overseas debt of Indian companies fell to $3.51 billion in the first quarter of FY21 after recording a high of $19 billion in the previous quarter. However, with multiple phases of unlocking and rebound in economic activity, the external fund-raising picked up momentum to reach $9 billion in the second quarter, $7 billion in third and $16 billion in the last quarter of the previous fiscal.

“The lower borrowings from the overseas markets in the current financial year can in large part be attributed to the pandemic-led economic and business disruptions that have made corporates reluctant to borrow and add to their liabilities amid uncertainties about the future business and economic conditions,” CARE Ratings said in its Debt Market Review for February 2021.

Sudden spike

The sudden spike in ECBs in March 2021 can largely be attributed to Indian Railway Finance Corporation (IRFC) which alone raised $4.92 billion under RBI’s approval route for the purpose of ‘Infrastructure development’.

“I would not immediately connect the increase in overseas borrowing directly with economic revival. Increase in overseas borrowing could be for a variety of factors such as lower cost of funds, greater liquidity in the international market, negative interest rates in many jurisdictions,” said Adity Chaudhury, Partner, Argus Partners.

She, added that India Inc’s latest results show a healthy recovery post the first wave of Covid-19 and point towards an economic revival but growth in overseas funding will depend on a variety of factors pointed above.

For the full year, India Inc’s overseas borrowing stood at $35.06 billion in FY21, lower than $52 billion fund raise in FY20 and $41 billion in FY19.

Top borrowers

Reliance Industries topped that list of overseas borrowers in FY21 raising a little over $7 billion or 20 per cent of the total ECB fund raise of India Inc followed by IRFC ($4.08 billion), REC Limited ($1.95 billion), Adani Ports ($1.75 billion) and ONGC Videsh Rovuma ($1.60 billion).

On a sectoral basis, the financial services sector continues to be the major borrower of overseas debt with a total fundraising of about $10 billion, followed by Coke and refined petroleum manufacturers ($8 billion) and Electricity, gas, steam and air conditioning supply ($3 billion).

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RBI appoints Jose Kattoor as Executive Director

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The Reserve Bank of India has appointed Jose J. Kattoor as Executive Director (ED) with effect from May 4.

Prior to this, Kattoor was heading RBI’s Bengaluru Regional Office as Regional Director for Karnataka.

As ED, Kattoor will look after Human Resource Management Department, Corporate Strategy and Budget Department and Rajbhasha Department, the RBI said in a statement.

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Reserve Bank of India – Press Releases

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April 14, 2015





Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.





With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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Reserve Bank of India – Notifications

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April 14, 2015





Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.





With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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