Fema / RBI News, Articles, Notifications and Forms

  • Jun
  • 02
  • 2015

RBI reduces policy repo rate by 25 basis points

Added In RBI / FEMA
On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to: 1. reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.5 per cent to 7.25 per cent with immediate effect; 2. keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);

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  • Jun
  • 01
  • 2015

Guidelines on Compensation of Non-executive Directors of Private Sector Banks

Added In RBI / FEMA
The need to bring in professionalism to the boards of banks cannot be overemphasized. In order to enable banks to attract and retain professional directors, it is essential that such directors are appropriately compensated. At present, banks in private sector pay only sitting fees to non-executive directors, and no other remuneration is paid to them. The Part-time Chairman however, is being paid a fixed remuneration with the approval of RBI.

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  • Jun
  • 01
  • 2015

RBI Liberalises Remittance Scheme and rationalises current account transactions

Added In RBI / FEMA
Liberalised Remittance Scheme (LRS) for resident individuals- increase in the limit from USD 125,000 to USD 250,000 and rationalisation of current account transactions. Remittance facilities for persons other than individuals

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  • Jun
  • 01
  • 2015

RBI allows banks to invest in long term bonds issued by other banks

Added In RBI / FEMA
RBI/2014-15/618 DBR.BP.BC.No.98/08.12.014/2014-15 June 01, 2015 All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Issue of Long Term Bonds by banks for Financing of Infrastructure and Affordable Housing – Cross Holding Please refer to our circular DBOD.BP.BC.No.25/08.12.014/2014-15 dated July 15, 2014 allowing banks to issue long term bonds, with exemptions from certain regulatory pre-emptions, for their […]

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  • May
  • 30
  • 2015

Foreign Exchange Management (Current Account Transactions) Amendment Rules, 2015

Added In RBI / FEMA
In exercise of the powers conferred by section 5 and sub-section (1) and clause (a) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in consultation with Reserve Bank, the Central Government having considered it necessary in the public interest, makes the following amendment to the Foreign Exchange Management (Current Account Transactions) Rules, 2000, namely:-

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  • May
  • 21
  • 2015

Review of FDI Policy on investments by NRIS, PIOs, OCIs

Added In RBI / FEMA
Review of Foreign Direct Investment (FDI) Policy on investments by Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs) The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to review of Foreign Direct Investment (FDI) Policy on investments by Non-Resident Indians (NRIs), Persons of […]

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  • May
  • 18
  • 2015

Consolidated FDI Policy of 2015 – Key changes & Comparative

Added In RBI / FEMA
The Ministry of Commerce & Industry released the consolidated Foreign Direct Investment policy of 2015 effective from May 12, 2015. We list below the key changes. Further, a detailed comparative of changes incorporated in FDI Policy 2015 juxtaposed with the consolidated FDI policy of 2014 is specified in Annexure A.

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  • May
  • 16
  • 2015

RBI Dispenses requirement of declaring export of Goods /Software in SDF

Added In RBI / FEMA
To further liberalise and simplify the procedure, it has been decided to dispense with the requirement of declaring the export of Goods /Software in the SDF in case of exports taking place through the EDI ports, as the mandatory statutory requirements contained in the SDF have been subsumed in the Shipping Bill format.

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  • May
  • 16
  • 2015

FEMA: Form A2 not applicable while remitting FCNR (B) funds

Added In RBI / FEMA
It is clarified that A2 form is to be filed at the time of purchase of foreign exchange using rupee funds and hence is not applicable while remitting FCNR (B) funds. Further, banks, with the help of technology, will have to devise better alternatives/ methods for ensuring bonafides of the transaction rather than insisting on physical presence of the account holder, in order to ensure hassle free remittance of funds to the account holder.

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  • May
  • 15
  • 2015

Amendment in Guideline for Infrastructure Debt Funds (IDFs)

Added In RBI / FEMA
On a review in consultation with the Government of India, it has been decided to amend the Directions so as to allow entry of IDF-NBFCs into sectors where there is no presence of a Project Authority. Accordingly, the Directions have been amended as given in the subsequent paragraphs:

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