RBI Governor Speech Live Updates | Here are some of the measures announced today:
>> Relaxation of the overdraft facility (OD) for state government
The maximum number of overdraft days (OD) in a quarter is reduced from 36 to 50 days and the number of consecutive OD days from 14 to 21 days. This feature will be available until September 30, 2021. State Ways and Means (WMA) boundaries have already been improved on April 23, 2021.
>> Use of floating provisions and the countercyclical provisioning buffer
Banks are allowed to use 100% of the floating provisions / countercyclical provisioning buffer they hold as of December 31, 2020 to set up specific provisions for non-performing assets with the prior approval of their boards of directors. Such use is authorized with immediate effect and until March 31, 2022.
>> Streamline compliance with KYC requirements
Regulated entities are informed that for client accounts for which the periodic KYC update is due / pending, no punitive restrictions on the operations of the client account (s) will be imposed until December 31, 2021, unless this is is justified for any other reason or on the instruction of any regulator / enforcement agency / court, etc. Account holders are requested to update their KYC during this period.