Master Circular on Para-Banking Activities

India

(enacted in 2008)

Master Circular on Para-Banking Activities (DBOD. No.FSD.BC. 7/ 24.01.001/ 2008-09), provides a framework of rules, regulations and instructions to scheduled commercial banks for undertaking certain financial services or para-banking activities as permitted by the Reserve Bank of India.

This Master Circular is organized as follows:

  • Section 1 Introduction;
  • Section 2 Subsidiary Companies;
  • Section 3 Investment Ceiling in Financial Services Companies, Etc.;
  • Section 4 Equipment Leasing, Hire Purchase Business and Factoring Services;
  • Section 5 Equipment Leasing, Hire Purchase and Factoring Services as Departmental Activities;
  • Section 6 Guidelines for Banks Undertaking PD Business;
  • Section 7 Mutual Fund Business;
  • Section 8 Relationship with Subsidiaries;
  • Section 9 Smart/Debit Card Business;
  • Section 10 Money Market Mutual Funds (MMMFs);
  • Section 11 Cheque Writing Facility for Investors of Money Market Funds (MMMFs) Market Mutual Funds (MMMFs);
  • Section 12 Entry of Banks into Insurance Business;
  • Section 13 Pension Fund management by Banks;
  • Section 14 Underwriting of Corporate Shares and Debentures;
  • Section 15 Underwriting; and
  • Section 16 ‘Safety Net’ Schemes.

This Master Circular consolidates the following 14 circulars:
1. RBI/2007-2008/33 DBOD.No.FSD.BC.18/24.01.001/2007-08
2. RBI/2006 -2007/446 DBOD.No.FSD.BC.102/24.01.022/2006-07
3. RBI/2006-07/140 IDMD.PDRS.1431/03.64.00/ 2006-2007
4. RBI/2006-07/104 DBOD.FSD.BC.No.25/ 24.92.001/2006-07
5. RBI 2005-06/ 308 DBOD. FSD. BC. No. 64/ 24.92.001/ 2005-06
6. RBI/2004/260 DBOD.BP.BC.No.100/21.03. 054/2003-04
7. DBOD.FSC.BC.27/24.01.018/ 2003-2004
8. DBOD.FSC.BC.88/24.01.011 A/2001-02
9. DBOD.FSC.BC.32/24.01.019/ 2001-02
10. DBOD.FSC.BC.133/24.01.01 9/2000-01
11. DBOD.FSC.BC.41/24.01.011/ 2000-01
12. DBOD.FSC.BC/16/24.01.018/ 2000-2001
13. DBOD.FSC.BC.145/24.01.013-2000
14. DBOD.FSC.BC.123/24.01.019/99-2000