Fema / RBI News, Articles, Notifications and Forms

  • Oct
  • 30
  • 2014

Bullet Repayment – Gold Loan Limit Increased to 2 Lakh

Added In RBI / FEMA
2. Based on the representations received from UCBs and National/State Federations, it has been decided to increase the quantum of loan that could be granted under the scheme, from Rs. 1.00 lakh to Rs. 2.00 lakh subject to the following conditions:

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  • Oct
  • 19
  • 2014

Compounding of Contraventions under FEMA, 1999- RBI delegates further power to Regional Offices

Added In RBI / FEMA
Background Compounding of Offence is a voluntary process available in case of contravention of offence under Foreign Exchange Management Act, 1999 (hereinafter referred as ‘FEMA’). Foreign Exchange (Compounding Proceedings) Rules, 2000[1] empowers Reserve Bank of India (hereafter referred as ‘RBI’) to compound contravention under FEMA. For compounding of offence under FEMA an application for compounding […]

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  • Oct
  • 15
  • 2014

Governor Raghuram Rajan receives Euromoney Award for Best Central Bank Governor of the Year 2014

Added In RBI / FEMA
Reserve Bank of India Governor Raghuram Rajan’s tough monetary medicine combatted the storm ravaging the deficit-ridden economy in the recent emerging market crisis. Now, he is battling vested interests to arouse a sleepy financial system for over one billion people

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  • Oct
  • 05
  • 2014

All about Debit Cards, Credit Cards & Prepaid Cards

Added In RBI / FEMA
Q. No. 1: How many types of cards are available to a customer? Ans: Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards (a) debit cards (b) credit cards and (c) prepaid cards.

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  • Sep
  • 20
  • 2014

Another Turnaround for FDI – RBI relaxes norms for issuance of Equity shares

Added In RBI / FEMA
Debolina Banerjee Background The regulatory environment concerning the foreign investment in India has been under constant evolution. In recent times the Reserve Bank of India (RBI) has been consistently making endeavors to ensure availability of funds to India Inc. 

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  • Sep
  • 17
  • 2014

FDI in India – Issue of equity shares under FDI Scheme against legitimate dues

Added In RBI / FEMA
The extant guidelines for issue of shares/convertible debentures under the automatic route have been reviewed in consultation with the Government of India and, accordingly, it has been decided to permit issue of equity shares against any other funds payable by the investee company

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  • Sep
  • 10
  • 2014

Treatment of accounts opened for credit of Scholarship Amounts under Government Schemes

Added In RBI / FEMA
As directed by the Bombay High Court, Regional Rural Banks and State / Central Cooperative Banks are hereby advised to ensure that accounts of all student beneficiaries under the various Central/State Government Scholarship Schemes are free from restrictions of ‘minimum balance’ and ‘total credit limit’.

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  • Sep
  • 09
  • 2014

Upper age limit for Whole Time Directors on the Boards of Banks

Added In RBI / FEMA
It has been decided that the upper age limit for MD & CEO and other WTDs of banks in the private sector should be 70 years, i.e. beyond which nobody should continue in the post. Within the overall limit of 70 years, individual bank’s Boards are free to prescribe a lower retirement age for the WTDs, including the MD & CEO, as an internal policy.

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  • Sep
  • 09
  • 2014

Guidelines on Wilful Defaulters – Clarification regarding Guarantor, Lender and Unit

Added In RBI / FEMA
While dealing with wilful default of a single borrowing company in a Group, the banks /FIs should consider the track record of the individual company, with reference to its repayment performance to its lenders. However, in cases where guarantees furnished by the companies within the Group on behalf of the wilfully defaulting units are not honoured when invoked by the banks /FIs, such Group companies should also be reckoned as wilful defaulters

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  • Sep
  • 07
  • 2014

RBI permits overseas lender to lend in Indian Rupees

Added In RBI / FEMA
RBI allowed for repayment of rupee loans by availing of ECB in certain sectors and also permitted refinancing of existing ECB by raising fresh ECB at lower all-in-cost but subject to the condition that outstanding maturity of the original loan is not reduced. Some of them are enlisted hereunder:

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