Select RBI circulars June 25

In this document we have covered the select RBI notifications and directives for the month of June 2025 and produced a gist of it. For detailed and full study, links are provided with every circular that will take us to the RBI communication

NOTIFICATIONS:

1. RBI/2025-26/62 DoR.SOG (DEA Fund) No.37/30.01.002/2025-26 dated 25.06.2025

Subject: The Depositor Education and Awareness (DEA) Fund Scheme, 2014 – Revised Operational Guidelines

https://website.rbi.org.in/documents/d/rbi/circularoperationalguidelinesdeafund

Gist:

1. Bank to register on e-kuber.
2. Bank shall transfer to the DEA Fund, the amounts becoming due in each calendar month (i.e., proceeds of the inoperative accounts and balances remaining unclaimed for 10 years or more), and the interest accrued on interest bearing accounts till the date of transfer, during the last five working days of the subsequent month.
3. In case of any claim made by the customer for refund of amount, the bank shall repay the customer accordingly and thereafter lodge a claim for the entire amount from the Fund. In case partial claim account is to be made operative before refund.
4. Unclaimed amount and amount transferred to RBI shall be disclosed by banks in schedule 12 of Annual Report with heading “Contingent Liability – Others, items for which the bank is contingently liable”

• RBI/2025-26/59  DOR.STR.REC.34/21.04.048/2025-26 dated 19.06.2025

Subject: Reserve Bank of India (Project Finance) Directions, 2025

https://website.rbi.org.in/documents/d/rbi/59directionsprojectsunderimplementation19062025-1-

Gist:

Effective date: 01.10.2025

These Directions shall not apply to projects where financial closure has been achieved as on the effective date.

Credit Event:

• Default with any lender;
• Any lender(s) determines a need for extension of the original/extended DCCO.
• Expiry of original/extended DCCO.
• Any lender(s) determines a need for infusion of additional debt;
• The project is faced with financial difficulty.

An exposure will qualify as Project Finance when

• The pre-dominant source of repayment as envisaged at the time of financial closure (i.e., at least 51%) must be from cash flows arising from the project which is being financed.
•  All the lenders have a common agreement with the debtor.

Phases of Project:

(a) Design phase – This is the first phase which starts with the genesis of the project and includes, inter-alia, designing, planning, obtaining all applicable clearances/approvals till its financial closure.

 (b) Construction phase – This is the second phase which begins after the financial closure and ends on the day before the actual DCCO.

 (c) Operational Phase –This is the last phase which starts with commencement of commercial operation by the project on the day of the actual DCCO and ends with full repayment of the project finance exposure.

 In under-construction projects where the aggregate exposure of the lenders is up to ₹1,500 crores, no individual lender shall have an exposure which is less than 10% of the aggregate exposure. For projects where aggregate exposure of all lenders is more than ₹1,500 crores, the exposure floor for an individual lender shall be 5% or ₹150 crores, whichever is higher.

A lender shall ensure availability of sufficient land/right of way for all projects before disbursement of funds, subject to the following minimum requirements:

(a) For infrastructure projects under PPP model – 50%  [PPP-Public Private Partnership]

(b) For all other projects (non-PPP infrastructure, and non-infrastructure including CRE & CRE-RH) – 75%

(c) For transmission line projects – as decided by a lender

Resolution plan involving extension of DCCO:

Extension of DCCO:

Infrastructure Projects                         : 3years

Non Infra (including CRE & CRE RH) : 2 years.

Cost over run: Max 10% of project cost in addition to IDC (Interest During Construction) financed through SBCF (Standby Credit Facility) sanctioned at the time of financial closure. For infrastructure projects, if SBCF is not available, funding can be provided with pricing at a premium.

Change in scope & size: Asset classification can me maintained as Standard subject to-

• The rise in project cost excluding any cost-overrun in respect of the original project is 25% or more of the original outlay.
• A lender re-assesses the viability of the project.
• On re-rating (if already rated), the new external credit rating is not below the previous external credit rating by more than one notch. If the project debt was unrated, then it should be externally rated investment grade upon such increase in scope or size in case of projects where aggregate exposure of all lenders is equal to or greater than ₹100 crores.

Provisioning of Std Asset:

For project finance exposures, a lender shall maintain a general provision at the following rates for the funded outstanding on a portfolio basis-

	Construction Phase	Operational Phase
CRE	1.25%	1.00%
CRE-RH	1.00%	0.75%
Others	1.00%	0.40%

Additional Provision in case of DCCO deferment:

Infrastructure         – 0.375% for each quarter of deferment.

Non Infrastructure – 0.5625% for each quarter of deferment.

(Please see Annexure 1 & 2 of the RBI circular attached in link to understand the calculation)

These guidelines are NOT applicable on existing Projects who have achieved financial closure as on the effective date.

• RBI/2025-26/57 CO.DGBA.GBD.No.S168/31-12-011/2025-2026 dated 16.06.2025

Subject: Review of instructions issued vide Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission

https://website.rbi.org.in/documents/d/rbi/reviewmastercircularonconductofgovernmentbusiness

Gist:

Transaction	Unit	Revised rate
Receipt – Physical mode	Per transaction	Rs. 40/-
Receipt – e mode	Per transaction	Rs. 12/-
Pension payments	Per transaction	Rs. 80/-
Payments other than pension	Per Rs. 100/-	7 paisa

Further, agency commission may be paid on all payment transactions handled by the agency banks, except those which are pre funded or where some compensation is paid by the Governments to the agency banks.

• RBI/2025-26/55 A.P. (DIR Series) Circular No. 07 dated 13.06.2024

Subject: Import of Shipping Vessel – Relaxation

https://website.rbi.org.in/documents/d/rbi/ap-dir-insa-englishnew

Gist:

Importers to make advance remittance for import of shipping vessel, without bank guarantee, or an unconditional, irrevocable standby Letter of Credit, up to USD 50 million

• RBI/2025-26/54 IDMD.RD.S390/10.18.060/2025-26 dated 12.06.2025

Subject: Stripping/Reconstitution in State Government Securities

https://website.rbi.org.in/documents/d/rbi/circularstrips_sgs_12june2025_rbi

Gist:

It has been decided to introduce Separate Trading of Registered Interest and Principal of Securities (STRIPS) in State Government Securities (SGS). All fixed coupon securities issued by State Governments/Union Territories having a residual maturity of up to 14 years and minimum outstanding of ₹1,000 crore as on the day of stripping, provided that such securities are reckoned as eligible investment for the purpose of meeting Statutory Liquidity Ratio (SLR) requirements and are transferable.

Author’s Note- [What is STRIPS: Whenever a Bond is issued it has 2 components 1. Principal 2. Interest

In STRIPS this bond is bifurcated into separate bonds, one is for Principal and other bonds are for each interest payment. For example- Govt of India issues a 10 year Bond at a coupon of 6% payable half yearly. It means there are 21 payments sets, 20 interest payments and 1 Principal. Here 21 STRIPS can be created i.e one for every cash flow. The STRIPS will not have any coupon (interest) as it will be sold on discount.]

• RBI/2025-26/48 DOR.CRE.REC.27/21.01.003/2025-26 dated 09.06.2025

Subject: Large Exposures Framework – Amendment in the list of exempted exposures

https://website.rbi.org.in/documents/d/rbi/scb-circular-psl-shortfall-exemption-from-lef-09-june-2025-revised-002-1-

Gist:

Deposits maintained with the following institutions for shortfall in priority sector lending is exempted from Large Exposure Framework-

NABARD

SIDBI

NHB

MUDRA Ltd.

• RBI/2025-26/47 DOR.CRE.REC.26/21.01.023/2025-26 dated 06.06.2025

Subject: Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025

https://website.rbi.org.in/documents/d/rbi/lendinggoldsilvercollateraldirections2025_for_website_rbi

Gist:

General Condition:

Detailed credit assessment, including assessment of borrower’s repayment capacity shall be undertaken in case the total loan amount against eligible collateral is above ₹2.5 lakh to a borrower.

Restrictions:

• Lenders shall not grant any loan against Primary Gold, Silver, Financial Assets backed by Primary Gold, Silver (ETF, MF etc).
• Lenders shall not grant loan when ownership of collateral is doubtful.
• Lenders shall not avail a loan against the pledged gold/silver.
• Lenders shall not extend loans to another lender against gold/silver pledged to them by their borrowers.
• Consumption loan bullet repayment max period 12 months.
• Aggregate weight of pledged ornaments can be 1 kg for Gold and 10 Kg for Silver.
• Aggregate weight of pledged coins can be 50 gm for Gold and 500 gm for Silver.

Valuations:

Gold or silver accepted as collateral shall be valued based on the reference price corresponding to its actual purity (caratage). For this purpose, the lower of (a) the average closing price for gold or silver, of that specific purity over the preceding 30 days, or (b) the closing price for gold or silver, of that specific purity on the preceding day, as published either by the India Bullion and Jewellers Association Ltd. (IBJA) or by a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) shall be used. If price information for the specific purity is not directly available, the lender shall use the published price available for the nearest available purity and proportionately adjust the weight of the collateral based on its actual purity to arrive at valuation.

LTV Ratios:

Total consumption loan amount per borrower	Maximum LTV ratio
≤₹2.5 lakh	85%
> ₹2.5 lakh & ≤ ₹5 lakh	80%
> ₹5 lakh	75%

Release of collateral:

Once the account is closed, collateral to be released on the same day and in not in any case beyond 7 days.

Auction:

• A reserve price to be declared that should not be less than 90% of the current price.
• The first auction shall be conducted physically in the same district in which the lending branch is located. However, in case of failure of first auction, lender may conduct the auction in an adjoining district or conduct online auction.
• Lender and its related parties shall not participate in the auction.
• Any surplus to be refunded to the borrowers within 7 days of receiving the full auction amount.

Compensation:

In case of damage or loss, lender to make payment.

In case of delay in returning, lender to pay Rs.5000/- per day of delay.

Unclaimed:

After 2 years period. Reporting to Customer Service Committee of the Board on half yearly basis.

• RBI/2025-26/45 DoR.RET.REC.22 /12.01.001/2025-26 dated 06.06.2025

Subject: Penal Interest on shortfall in CRR and SLR requirements – Change in Bank Rate

https://website.rbi.org.in/documents/d/rbi/circular-on-penal-interest-on-shortfall-in-crr-and-slr-requirements-change-in-bank-rate

Gist:

Penal interest on shortfall in reserve requirements (CRR & SLR) – Bank Rate + 3% (8.75%) & Bank rate +5% (10.75%)

[Bank Rate : 5.75% reduced from 6.25%  in MPC on 6^th June]

• RBI/2025-26/46 DoR.RET.REC.23/12.01.001/2025-26 dated 06.06.2025

Subject: Maintenance of Cash Reserve Ratio (CRR)

https://website.rbi.org.in/documents/d/rbi/circular-on-maintenance-of-cash-reserve-ratio-crr-

Gist:

CRR reduced from 4% to 3% in 4 tranches:

3.75%     from 6^th Sept 2025

3.50%     from 4^th Oct 2025

3.25%     from  1^st Nov 2025

3.00%     from  29^th Nov 2025

RBI POLICY RATES

BANK RATE                                                             :5.75%

MARGINALSTANDING FACILITY RATE                       :5.75%

POLICY REPO RATE                                                      :5.50%

STANDING DEPOSIT FACILITY RATE                         :5.25%

FIXED REVERSE REPO RATE                                      :3.35%

RATIOS

CRR                                                                                  :3.75% shall be 3.50% w.e.f. 4/10/25

SLR                                                                                   :18%

MASTER DIRECTIVES:

1. RBI/FMRD/2025-26/137 FMRD.MIOD.No. 02/14.03.027/2025-26 dated 16.06.2025

Subject: Master Direction – Reserve Bank of India (Electronic Trading Platforms) Directions, 2025

https://website.rbi.org.in/documents/d/rbi/137mdetpjune162025

Gist:

Definitions:

‘Algorithmic trading’ or ‘Algo trading’ shall mean any trade originated by a software programme using automated execution logic.

‘Electronic Trading Platform’ (ETP) shall mean any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments.

‘ETP Operator’ shall mean an entity authorised by the Reserve Bank to operate an ETP under these Directions.

Eligibility Criteria:

General Criteria

The entity shall be a company incorporated in India. b. Shareholding by non-residents shall conform to all applicable laws and regulations c. The entity seeking authorisation as an ETP operator or a minimum of two of its key managerial personnel shall have experience of at least three years in operating trading infrastructure in financial markets.

Financial Criteria:

Minimum net-worth of ₹5 crore and shall continue to maintain this minimum net worth at all times.

Technological Criteria:

The entity seeking authorisation as an ETP operator shall, a. Obtain and maintain robust technology infrastructure with a high degree of reliability, availability, scalability and security in respect of its systems, data and network, appropriate to support its operations and manage the associated risks. b. Ensure capability to disseminate trade information on a real-time basis or near real-time basis.

• Entities satisfying the above criteria shall apply to RBI under PRAVAAH portal of RBI.
• All data is be maintained for at least 10 years.

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