‘123PAY’ is the UPI (unified payments interface) service, a three-step approach for customers to initiate and execute services that will function on simple phones without an internet connection.

According to Das, the numerous capabilities of UPI are currently only available on smartphones, which prevents people from the lower rungs of society, particularly in rural regions, from using the popular service, despite the fact that smartphone prices are falling. He said the UPI volumes have touched Rs. 76 lakh crore in FY22 so far, as against Rs 41 lakh crore in FY21 and added that the day is not far when the overall volumes will touch Rs. 100 lakh crore.

The RBI said, “Feature phone users will now be able to undertake a host of transactions based on four technology alternatives. They include calling an IVR (interactive voice response) number, app functionality in feature phones, missed call-based approach and also proximity sound-based payments,

According to the company, “Customers now will be able to make payments to friends and family, pay utility bills, recharge their vehicles’ FAST Tags, pay mobile bills, and check account balances, Customers will also be able to link bank accounts and set or update UPI PINs.

Das also introduced a 24-hour helpline, ‘Digisaathi’ for digital payments on Tuesday, which was also set up by the National Payments Corporation of India (NPCI). The ‘Digisaathi’ helpline will answer all callers’ and users’ questions about digital payments via website and chatbot.

For questions about digital payments and issues, users can go to www.digisaathi.info or contact 14431 and 1800 891 3333 from their phones.

In the meeting, the Governor of the Reserve Bank of India, Shri Shaktikanta Das has announced that the Policy Repo Rate will remain unchanged at 4% and that the Marginal Standing Facility and Bank Rate will remain at 4.25%. The Reverse Repo Rate too will remain unchanged at 3.35%.

The Governor also announced a set of additional measures with the objective of reviving the economy and mitigating the adverse impact of the second wave of the COVID-19 pandemic.

1. On-Tap Liquidity Window for Contact-Intensive sectors: A separate liquidity window of Rs. 15,000 Crore is being opened till March 31, 2022 with tenures up to three years, at the repo rate. Under this scheme, Banks can give fresh lending support to hotels, restaurants, travel agents, tour operators, aviation ancillary services, and other services including private bus operators, rent-a-car service providers, event organizers, spa clinics, beauty parlors, and saloons.

2. Special Liquidity Facility of Rs. 16,000 Crore to SIDBI, for on-lending / refinancing through novel models and structures at Repo Rate, for a period of up to one year. This is to further support the credit requirements of MSMEs, including those in credit-deficient and aspirational districts.
3. Expansion of coverage of borrowers under Stress Resolution Framework 2.0, by enhancing maximum aggregate exposure threshold from Rs. 25 Crore to Rs. 50 Crore for MSMEs, non-MSME small businesses and loans to individuals for business purposes.
4. Permission given to Authorized Dealer banks to place margins on behalf of FPI clients for transactions in Govt. securities within banks’ credit risk management framework. This will ease operational constraints faced by Foreign Portfolio Investments and promote ease of doing business.
5. Regional Rural Banks can now issue Certificates of Deposit (CDs) Further, all issuers of CDs will be permitted to buy back their CDs before maturity, subject to certain conditions. This will facilitate greater flexibility in liquidity management.
6. National Automated Clearing House (NACH) to be available on all days of the week (currently available only on bank working days), effective from August 1, 2021.  NACH is a popular and prominent mode of direct benefit transfer to a large number of beneficiaries, this measure will enhance customer convenience.

To read the full transcript of RBI Governor’s Address: Click Here

“Alleviating any constraint from the financing side for all stakeholders – government, hospitals and dispensaries, pharmacies, vaccine/medicine manufacturers/importers, medical oxygen manufacturers/suppliers, private operators engaged in the critical healthcare supply chain, and above all the common man who may be facing a sudden spike in health expenditure – requires a comprehensive targeted policy response. Small businesses and financial entities at the grassroot level are bearing the biggest brunt of the second wave of infections” said Mr. Das.

The various measures taken by RBI as a strategy against the pandemic are:

1. Term Liquidity Facility of ₹50,000 crore to Ease Access to Emergency Health Services

Term Liquidity Facility of Rs. 50,000 crore with tenure of up to 3 years, at repo rate, to ease access to emergency health services, for ramping up COVID-related health infrastructure & services. This lending facility will be available up to March 31, 2022. Banks will be provided incentives to provide credit under this facility.

2. Special Long Term Repo Operations for Small Finance Banks

In order to provide further support to micro, small and other unorganized sector entities, 3-year repo operations of Rs. 10,000 crore at repo rate, for fresh lending up to Rs 10 lakh per borrower; facility is available up to 31 October, 2021.

3. Lending by Small Finance Banks (SFBs) to MFIs for on-lending to be classified as priority sector lending

In view of fresh challenges, SFBs are now permitted to regard fresh on-lending to MFIs with asset size up to Rs. 500 crore, as priority sector lending. This facility will be available up to 31 March, 2022.

4. Credit flow to MSME Entrepreneurs

To further incentivize inclusion of unbanked MSMEs into banking system, exemption provided in February, 2021 wherein scheduled banks were allowed to deduct credit given to new MSME borrowers from Net Time & Demand Liabilities for calculation of CRR, is now extended to December 31, 2021.

5. Stress Resolution Framework 2.0 for Individuals, Small Businesses and MSMEs

Following set of measures have been announced to relieve stress faced by most vulnerable categories of borrowers – namely individuals, borrowers and MSMEs.

a) Individuals, borrowers and MSMEs with aggregate exposure up to Rs. 25 crore, who have not availed restructuring under any previous frameworks, who were classified as standard on 31 March, 2021, will be eligible to be considered under Resolution Framework 2.0. Restructuring under new framework can be invoked till September 30, 2021 and will have to be implemented within 90 days after invocation.

b) For individuals and small businesses who have availed restructuring of loans under Resolution Framework 1.0, where moratorium of less than 2 years was permitted, lending institutions can now increase the period and/or extend residual tenure up to a total period of 2 years.

c) In respect of small businesses and MSMEs restructured earlier, lending institutions are now permitted to review working capital sanction limits, as a one-time measure.

6. Rationalization of KYC norms for enhanced customer experience

Steps being proposed include: a) Extending scope to video KYC for new customer categories such as proprietorship firms, b) Conversion of limited KYC accounts to fully KYC compliant accounts, c) Introduction of more customer-friendly options in KYC updating and d) enabling the use of KYC Identifier of Centralised KYC Registry (CKYCR) for V-CIP and submission of electronic documents as identify proof

7. Floating Provisions and Countercyclical Provisioning Buffer

Banks can now use 100% of floating provisions held by them, as on December 31, 2020, for making specific provisions for NPAs; such utilization is permitted up to March 31, 2022.

8. Relaxation of overdraft facility for states

Maximum number of days of overdraft in a quarter for state governments has been increased from 36 to 50 days. The number of consecutive days of OD has been increased from 14 to 21 days; facility available up to September 30, 2021.

RBI Governor stated that RBI is battle-ready to ensure financial conditions remain congenial and markets continue to work efficiently. In this, the RBI is committed to go unconventional and devise new responses as per demand

Interested candidates can apply for the Officer Grade B Recruitment from January 28 to February 15. The recruitment for officers in Grade-B is being conducted to fill 322 vacancies, out of which, 270 vacancies are for Officers in Grade ‘B’(DR)- General, 29 for Officers in Grade ‘B’(DR)- DEPR, and 23 for Officers in Grade ‘B’(DR)- DSIM.

Important Dates for RBI officer Grade-B Examination:

Officers in Gr B (DR)- General   

Phase-I – Online Examination- March 6, 2021

 Phase-II – Paper I, II & III Online Examination- April 1, 2021

Officers in Gr B (DR) – DEPR*    

Phase I – Paper – I – Online Examination- March 6, 2021

Phase II – Paper – II & III Online/Written Examination- March 31, 2021 (To be confirmed in Admit cards)

Officers in Gr B (DR)- DSIM         Phase I – Paper – I – Online Examination- March 6, 2021

Phase II – Paper – II & III Online/Written Examination- March 31, 2021

Candidates are required to apply only online using the website www.rbi.org.in and no other means/mode of application will be accepted. Detailed instructions for filling up online applications are available at the Bank’s website www.rbi.org.in.