Fema / RBI News, Articles, Notifications and Forms

  • Apr
  • 16
  • 2014

Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP)

Added In RBI / FEMA
It has now been decided that Limited Liability Partnership (LLP) formed and registered under the Limited Liability Partnership Act, 2008 shall be eligible to accept Foreign Direct Investment (FDI) subject to the conditions given in Annex I.

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  • Apr
  • 11
  • 2014

RBI releases Draft Report on ‘Working Group on Pricing of Credit’

Added In RBI / FEMA
Despite the policy efforts to usher in transparency and fairness to the credit pricing framework, there have been certain concerns from the customer service perspective. These mainly relate to the downward stickiness of the interest rates, discriminatory treatment of old borrowers vis-à-vis new borrowers, and arbitrary changes in spreads, etc.

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  • Apr
  • 10
  • 2014

RBI allows foreign inward remittances to beneficiary bank a/c through via NEFT, IMPS etc.

Added In RBI / FEMA
In order to facilitate receipt of foreign inward remittances directly into bank accounts of the beneficiaries, it has been decided to allow foreign inward remittances received under Rupee Drawing Arrangement (RDA) to be transferred to the KYC compliant beneficiary bank accounts through electronic mode, such as, NEFT, IMPS, etc.

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  • Apr
  • 07
  • 2014

Banks to maintain records of cross border wire transfers of more than Rs. 5 lakh

Added In RBI / FEMA
With the amendments to Prevention of Money Laundering (PML) Rules, notified by the Government of India vide Notification No. 12 of 2013 dated August 27, 2013 and in terms of amended Rule 3, every reporting entity is required to maintain a record of all transactions including the record of all cross border wire transfers of more than Rs. 5 lakh or its equivalent in foreign currency, where the place of either origin or destination of the fund is in India.

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  • Apr
  • 07
  • 2014

RBI allows to book foreign exchange forward contracts up to US$ 250,000 on the basis of a simple declaration

Added In RBI / FEMA
With a view to further liberalising the existing facilities, it has now been decided to allow all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to US$ 250,000 on the basis of a simple declaration without any requirement of further documentation.

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  • Apr
  • 04
  • 2014

Power to compound contraventions under FEMA, 1999 to vest with Regional Offices

Added In RBI / FEMA
On a review, it has been decided to delegate further powers to the Regional Offices of Reserve Bank of India. Accordingly, the powers to compound the following contraventions will now be vested with the Regional Offices:

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  • Apr
  • 01
  • 2014

RBI liberalises norms for Advance Remittance for Import of Rough Diamonds

Added In RBI / FEMA
With a view to liberalising the procedure further facilitating the import of rough diamonds, it has now been decided that henceforth Reserve Bank of India will not notify the names of overseas mining companies from whom an importer (other than PSC or Department / Undertaking of Government of India / State Government) may import rough diamonds into India, by way of advance payments, without any limit / bank guarantee/ stand-by letter of Credit.

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  • Apr
  • 01
  • 2014

First Bi-monthly RBI Monetary Policy Statement, 2014-15

Added In RBI / FEMA
On the basis of an assessment of the current and evolving macroeconomic situation, we have decided today to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent.

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  • Mar
  • 28
  • 2014

FEMA – Merchanting Trade Transactions – Revised guidelines

Added In RBI / FEMA
RBI/2013-14/545 A.P. (DIR Series) Circular No.115, Dated- March 28, 2014 Merchanting Trade Transactions – Revised guidelines Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular Nos.106 & 4 dated June 19, 2003 and July 19, 2003 respectively, containing directions relating to merchanting trade transactions. Further, in terms of A.P. (DIR Series) Circular No. […]

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