| RBI defers Basel- III norms for forex derivatives |
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Mumbai, 28 March The Reserve Bank of India (RBI) today postponed the implementation of Basel- III regulations for the currency derivatives segment to next January, pending resolution of norms regarding trade settlement, even as it said the new capital adequacy requirements could kick in from Sunday. "In view of the shift in the start date of Basel III implementation, all instructions applicable as on January 1, except those relating to the credit valuation adjustment (CVA) risk capital charge for over- the- counter derivatives, would become effective from April 1, with banks disclosing Basel III capital ratios from the quarter ending June 30, 2013," the apex bank said in a notification this evening. The CVA is the difference between the risk- free portfolio value and the true portfolio value that takes into account the possibility of a counter- partys default. In other words, CVA is the market value of the counter- partys credit risk. Giving the rationale behind the delay, the central bank said as the introduction of mandatory forex forward guaranteed settlement through a central counter- party has been deferred pending resolution, the CVA risk capital charges would be effective from January next. It is to be noted that RBI wants all lenders to settle currency forwards though one clearing house, which some foreign lenders are opposed to, due to lack of clarity in rules. |
| New interest rates on PPF, other schemes |
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New Delhi, 28 March The Reserve Bank today notified a0.1 per cent reduction each in interest rates on the Public Provident Fund ( PPF) and the Senior Citizen Savings Scheme (SCSS), to be effective from the financial year beginning April 1. The rate of interest on PPF has been lowered from 8.8 per cent to 8.7 per cent. The rate of interest on a fiveyear SCSS has been reduced to 9.2 per cent from 9.3 per cent for entire 2013- 14 financial year, it said. RBI said the new rates will come into force from April 1, following government's memorandum on March 25, which advised on the rate of interest on various small savings schemes for the financial year 2013- 14. RBI said banks should bring this content to the notice of their branches operating PPF and SCSS accounts. It also said the new rates should also be displayed on the notice boards of their branches for information of the PPF and SCSS subscribers. Following the government's decision earlier this week, millions of small savers and PPF account holders will earn less on their post office savings schemes. However, the government kept unchanged rates on savings on deposit schemes and on fixed deposit of up to one year run by post offices at four per cent and 8.2 per cent, respectively. Further, post office Monthly Income Schemes ( MIS) of five- year maturity will earn an interest of 8.4 per cent. The National Savings Certificates ( NSC), having maturity of five and 10 years, will attract 8.5 per cent and 8.8 per cent interest, respectively, down 0.10 per cent each. Revision in interest rates follows a decision taken by government last year to link small savings returns with market rate. |
Debt tribunals e-governance
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