RBI notifies Qualified Financial Contract- Notification
No. FMRD.DIRD. 2/14.03.043/2020-21.—In exercise of the powers conferred by clause (a) of Section 4 of the Bilateral Netting of Qualified Financial Contracts Act, 2020 (30 of 2020), the Reserve Bank of India (RBI) hereby notifies the following contracts as Qualified Financial Contract, namely: –
a. “derivative” as defined under clause (a) of Section 45U of the Reserve Bank of India Act, 1934 (2 of 1934); and
b. “repo” and “reverse repo” as defined under clause (c) and (d) respectively of Section 45U of the Reserve Bank of India Act, 1934 (2 of 1934).
(2) Further, in exercise of the powers conferred by clause (b) of section 4 read with sub-clause (vi) of clause (o) of
section 2 (1) of the Bilateral Netting of Qualified Financial Contracts Act, 2020 (30 of 2020), the Reserve Bank of India hereby specifies the following entities as qualified financial market participants to deal in qualified financial contracts, namely: –
a. Entities licensed by RBI to do banking business, but not included in the second schedule to the Reserve Bank of India Act, 1934 (2 of 1934);
b. “Export-Import Bank of India” established under the Export-Import Bank of India Act, 1981 (28 of 1981);
c. “National Bank for Agriculture and Rural Development” established under the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
d. “Small Industries Development Bank of India” established the Small Industries Development Bank of India Act, 1989 (39 of 1989);
e. “National Housing Bank” established under the National Housing Bank Act, 1987 (53 of 1987);
f. “Factor” as defined in Section 2 (i) of the Factoring Regulation Act, 2011 (12 of 2012); and
g. “Asset Reconstruction Company” as defined under section 2 (1) (ba) of the Securitisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002).
