What changed
RBI stopped requiring scheduled commercial banks, co-operative banks, primary dealers, and other eligible participants to fax their call/notice money transactions to the Monetary Policy Department daily, effective December 11, 2004. This change applied only to NDS members; non-NDS members must continue faxing reports as before.
What it means for you
Banks and other NDS members can reduce their operational burden by relying solely on NDS for reporting call/notice money deals. Non-NDS participants still face the fax requirement, so they need to maintain that process. RBI retains the right to demand fax reports if market conditions warrant, so readiness is key.
What you must do
- Ensure all call/notice money transactions by NDS members are reported exclusively on the NDS platform from Dec 11, 2004.
- Non-NDS members must continue faxing transaction reports to MPD as per existing instructions.
- Maintain systems to provide transaction data by fax if RBI requests it in future.
- Acknowledge receipt of this circular.
Who it affects
All scheduled commercial banks (excluding RRBs), Co-operative banks, Primary dealers, Select financial institutions, Insurance companies, Mutual funds
Do we still need to fax call/notice money reports after December 11, 2004?
Only if you are a non-NDS member. NDS members must report all deals on the NDS platform and stop faxing. RBI may still ask for fax reports if needed.
What happens if we are an NDS member but our counterparty is not?
The deal must be reported by the non-NDS member via fax to MPD. Your NDS reporting covers your side only.
Can RBI still ask for fax reports after this change?
Yes, RBI reserves the right to call for information by fax if the situation warrants it.