Fema / RBI News, Articles, Notifications and Forms

  • Sep
  • 01
  • 2014

Account cannot be classified at Inoperative if Dividend been credited to such account

Added In RBI / FEMA
There may be instances where the customer has given a mandate for crediting dividend on shares to Savings Bank account and there are no other operations in the Savings Bank account. Some doubts have arisen whether such an account is to be treated as inoperative account after two years.

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  • Sep
  • 01
  • 2014

Specify time frame for Disposal of loan applicable -RBI to banks

Added In RBI / FEMA
It is, therefore, advised that banks should clearly delineate the procedure for disposal of loan proposals, with appropriate timelines, and institute a suitable monitoring mechanism for reviewing applications pending beyond the specified period. It is, however, reiterated that there should not be any compromise on due diligence requirements. Banks may also make suitable disclosures on the timelines for conveying credit decisions through their websites, notice-boards, product literature, etc.

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  • Aug
  • 28
  • 2014

A Financial Conditions Index for India

Added In RBI / FEMA
Financial market variables contain information about the future state of the economy. Changes in financial variables often translate into changes in the real economy. Very often financial variables send contradictory signals to economic agents. Further, acute information asymmetry exists in financial markets especially around trigger events during times of crises.

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  • Aug
  • 28
  • 2014

Purchase and sale of securities other than shares or convertible debentures of an Indian company by a person resident outside India

Added In RBI / FEMA
With a view to providing flexibility in regard to the manner in which government securities can be acquired by eligible investors, it has now been decided to remove any stipulation as to the manner of acquisition from the said Regulations. Consequently, the eligible investors can acquire such securities in any manner as per the prevalent/approved market practice.

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  • Aug
  • 27
  • 2014

6 Easy Steps to Opening a Bank A/c & Opening of A/c without ‘proof of identity’

Added In RBI / FEMA
1. How can I open a bank account? It is very simple. To open a bank account you need to give a ‘proof of identity and address’ alongwith a recent photograph. 2. What are the documents to be iven as ‘proof of identity’ and ‘proof of address’ by me? Any one of the documents such […]

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  • Aug
  • 27
  • 2014

Refinancing of ECB at lower all-in-cost – Simplification of procedure

Added In RBI / FEMA
On a review, it has been decided to simplify the procedure by delegating powers to the AD Category – I banks to approve even those cases where the AMP of the fresh ECB is exceeding the residual maturity of the existing ECB under the automatic route subject to the following conditions:

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  • Aug
  • 26
  • 2014

KYC Document for opening a Bank Account & RBI Measures for simplification

Added In RBI / FEMA
1. Single document for proof of identity and proof of address- There is now no requirement of submitting two separate documents for proof of identity and proof of address. If the officially valid document submitted for opening a bank account has both, identity and address of the person, there is no need for submitting any other documentary proof.

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  • Aug
  • 26
  • 2014

Pay IT dues in advance at RBI or at authorised bank branches

Added In RBI / FEMA
The Reserve Bank of India has appealed to income tax assessees to remit their income tax dues sufficiently in advance of the due date. It has also stated that assessees can use alternate channels like select branches of agency banks or the facility of online payment of taxes offered by these banks. These will obviate […]

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  • Aug
  • 25
  • 2014

RBI amends norms for lending against shares by Systemically Important NBFCs

Added In RBI / FEMA
Reserve Bank of India (RBI) vide its notification dated August 21, 2014[1] has come up with amendment in norms for regulating lending against shares by (NBFC-SI), i.e. (NBFCs having a net worth of 100 crores or more) effective from Thursday, the 21st of August, 2014.

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