"Taking into account the views and suggestions from stakeholders on the discussion paper on 'Large Exposures Framework and Enhancing Credit Supply through Market Mechanism', a fresh discussion paper will be issued by April 30, 2016 on large borrowers meeting part of their funding requirements from markets," RBI Governor Raghuram Rajan said.

A draft circular on the Large Exposures Framework will be issued for public comments in June 2016, which is to be implemented by January 1, 2019, he said, after unveiling the first bi-monthly monetary policy review for 2016-17.

In order to promote start-ups in the country, RBI will also release norms with respect to deferred payment.

The simplification of process for dealing with delayed reporting of FDI transactions and provisions for an enabling external commercial borrowing regime for start-ups are being examined by the government and RBI.

On rationalisation of the branch authorisation policy, RBI said there is need to review in light of changes in mode of delivery of banking services. Currently, banks provide services through a variety of business outlets – branches, extension counters, satellite offices, mobile branches, ultra small branches and the like.

The current policy approach is to facilitate adequate outreach of banking outlets in unbanked areas while at the same time providing autonomy to banks to decide their business strategy.
As there is improvement in the situation, RBI said, it has been decided that it is not necessary to activate Counter cyclical Capital Buffers (CCCB) at this point in time.

It further said a Supervisory Enforcement Framework intended to meet the principles of natural justice and global standards of transparency, predictability, standardisation, consistency, severity and timeliness of action will be formalised by June 2016.

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