Fema / RBI News, Articles, Notifications and Forms

  • Apr
  • 24
  • 2015

Banks to include ‘third gender’ in all forms/applications etc.

Added In RBI / FEMA
Banks are, therefore, directed to include ‘third gender’ in all forms/applications etc. prescribed by the Reserve Bank or the banks themselves, wherein any gender classification is envisaged.

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  • Apr
  • 23
  • 2015

Mandatory Leave for Employees Posted in Sensitive Positions or Areas of Operation

Added In RBI / FEMA
Banks are hereby advised that, as a prudent operational risk management measure, it is imperative that employees posted in sensitive positions or areas of operations (viz., treasury, currency chests, risk modelling, model validation, etc.) are covered under a ‘Mandatory Leave’ policy wherein such employees are required to compulsorily avail of leave for a few days (say 10 working days) in a single spell every year,

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  • Apr
  • 23
  • 2015

Collection and Dissemination of Information on Wilful Defaulters

Added In RBI / FEMA
3. Mechanism for identification of Wilful Defaulters The transparent mechanism referred to in paragraph 2.5(d) in the above Master Circular on Wilful Defaulters should generally include the following: (a) The evidence of wilful default on the part of the borrowing company and its promoter/whole-time director at the relevant time should be examined by a Committee headed by an Executive Director and consisting of two other senior officers of the rank of GM/DGM.

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  • Apr
  • 22
  • 2015

6 more documents acceptable as address proofs under Money Laundering norms

Added In RBI / FEMA
where a prospective customer is unable to produce any proof of address, the following documents shall be deemed to be ‘officially valid document': (a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, Water bill); (b) property or Municipal tax receipt; (c) bank account or Post Office savings bank account statement;

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  • Apr
  • 16
  • 2015

Banks can issue FDs exceeding 15 lakhs without option of pre-mature withdrawal at differential interest rates

Added In RBI / FEMA
In this connection, attention is invited to paragraph 29 of sixth Bimonthly Monetary Policy Statement- 2014-15 announced on February 3, 2015 whereby it was decided to introduce the feature of early withdrawal facility in a term deposit as a distinguishing feature for offering differential rates of interest. Accordingly, banks will have the discretion to offer differential interest rates based on whether the term deposits are with or without-premature-withdrawal-facility, subject to the following guidelines:

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  • Apr
  • 14
  • 2015

RBI cautions on ‘All Bank Balance Enquiry’ App

Added In RBI / FEMA
It has come to the notice of the Reserve Bank of India that an app (application) is doing rounds on What’s App purportedly to facilitate checking of balance in customers’ bank accounts. The application has an RBI logo with the title ‘All Bank Balance Enquiry No’ and has listed several banks with either a mobile […]

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  • Apr
  • 10
  • 2015

NBFCs- Lending against Shares – Clarification

Added In RBI / FEMA
LTV ratio of 50% is required to be maintained at all times. Any shortfall in the maintenance of the 50% LTV occurring on account of movement in the share prices shall be made good within 7 working days.

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  • Apr
  • 10
  • 2015

RBI releases draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs

Added In RBI / FEMA
The Reserve Bank of India has released on its website today, the draft Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs for seeking comments/ views from interested parties and general public. The suggestions/ comments on the draft guidelines may be emailed or sent by post to the Chief […]

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  • Apr
  • 08
  • 2015

Review of FDI policy –Sector Specific conditions- Insurance sector

Added In RBI / FEMA
The extant FDI policy for Insurance sector has since been reviewed and further liberalized. Accordingly, with immediate effect, FDI in Insurance sector shall be permitted up to 49% subject to the revised conditions specified in the Press Note 3 (2015 Series) dated March 2, 2015.

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  • Apr
  • 08
  • 2015

Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs) – Directions – Modifications

Added In RBI / FEMA
In terms of para 3(ii)(a) of the aforesaid Notification, loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs. 60,000 or urban and semi-urban household income not exceeding Rs. 1,20,000 would be eligible to be defined as qualifying asset. In order to widen the scope, it has been decided that loan disbursed by an NBFC-MFI to a borrower with a rural household annual income not exceeding Rs. 1,00,000 or urban and semi-urban household income not exceeding Rs. 1,60,000 would be eligible to be defined as a qualifying asset.

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