(1) Note Denomination:
RBI during the grace period allowed Indian Citizens residing in India who were abroad during November –December 2016 to exchange the old 500 and 1000 rupees notes upto 31st March 2017 and Indian Citizens who are residents outside India upto June 2017. There was a complaint about the long queues at RBI which RBI has claimed is due to the ineligible persons mopping up the queues and causing delay in disposal.
(2) Introduction of new denomination notes:
The Central Bank (RBI) wants to encourage cashless transactions, and the Deputy Governor informed that as of now RBI had no intention to introduce currencies of new denomination.
(3) Recasting of Currency Hedging
RBI today modified the norms for providing operational flexibility to multinational entities and their Indian Subsidiaries who are exposed to currency risks, arising out of current account transactions in the country. As per the norms, the transactions under the facility will be covered under a tripartite agreement involving the Indian Subsidiary, its non-resident parent/treasury and the bank.
(4) RBI plans to boost Payments System
RBI has said that it is looking into the possibilities of newer areas to make the regulatory and supervisory system for banks more robust, apart from exploring the possibility of creation of new kind of differentiated banks like Custodian and Wholesale Financing entities. This is done with a view to create space for newer type of entities such as payments banks, who would deal with remittances and reach out to people in the unbanked or underbanked areas.
Also, the concept of Business Correspondent model introduced during Financial Inclusion drive would be boosted since they have proved to be very handy in the Rural areas.
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