Fema / RBI News, Articles, Notifications and Forms

A.P. (DIR Series) Circular No. 34 Export-Import Bank of India (Exim Bank) has concluded an Agreement dated April 21, 2011 with the Government of the Republic of Senegal, making available to the latter, a Line of Credit (LOC) of USD 27.50 million (USD twenty seven million and five hundred thousand) for financing eligible goods, services, machinery and equipment including consultancy services from India for the purpose of financing rural electrification project in Senegal... Full Article

The importance of an inclusive financial system is widely recognized in the policy circles not only in India but has become a policy priority in many countries. Several countries across the globe now look at financial inclusion as the means of a more comprehensive growth, wherein each citizen of the country is able to use their earning as a financial resource that they can put to work to improve their future financial status, adding to the nation’s progress. Full Article

The Union Cabinet today approved the proposals to bring India Infrastructure Finance Company Ltd. (IIFCL) under regulatory oversight of Reserve Bank of India, to enhance its professional capability and to increase its capital base. Full Article

Two sets of data to be released this week - industrial output growth for August and consolidated monthly inflation for September - would largely determine the Reserve Bank of India's (RBI's) next move on interest rate hikes. Policy makers are facing a harsh dilemma: a slew of fiscal and monetary measures to cure inflation has not tamed prices but cast side effects on growth. Full Article

Following the recent downgrade of the country’s largest lender State Bank of India by credit rating agency Moody’s Investor Services, the Reserve Bank of India (RBI) has asked banks to focus on recovery and follow a stringent credit appraisal procedure. The RBI has asked banks to remain cautious in the wake of a higher-than-expected rate hike that could have an adverse impact on the asset quality of banks. Full Article

Pressure built up on RBI over interest rates on Wednesday as India’s industrial output grew by 4.1% year-on-year in August. Factory output had grown by 3.8% in July and 4.5% in the year-ago period, with rising input costs and costlier loans forcing firms to defer investments. The manufacturing sector, which accounts for 80% of India’s industrial production, grew by 4.5% during the month. A slower manufacturing sector growth will hurt corporate profitability and emplo.. Full Article

RPCD.CO.Plan.BC. 22 /04.09.01/2011-12 Please refer to para 1.1.3 of our circular RPCD.CO.Plan.BC.No.10/04.09.01/2011-12 dated July 1, 2011 on lending to priority sector in terms of which working capital and term loans for financing production and investment requirements for agriculture and allied activities are treated as direct finance to agriculture under priority sector. Full Article

New Capital Adequacy Framework (NCAF) - Revision of Rating Symbols and Definitions of Credit Rating Agencies - Please refer to the Master Circular No. DBOD.No.BP.BC.11/21.06.001/2011-12 dated July 1, 2011 on 'Prudential Guidelines on Capital Adequacy and Market Discipline - New Capital Adequacy Framework (NCAF)' by which the consolidated prudential guidelines had been issued to banks on the captioned subject. Full Article

RPCD.CO RRB.AML.BC No. 21/03.05.33(E)/2011-12 In this regard, a reference is invited to paragraph 5 of our circular RPCD.CO.RRB.AML.BC.No.15/ 03.05.33(E) /2011-12 dated August 8, 2011 wherein it was stipulated that when bank relies exclusively on the Aadhaar letter as complete KYC document for opening of an account, such an account would be subject to all conditions and limitations applicable to ‘Small’ accounts as detailed in the Govt notification referred to above... Full Article

A.P. (DIR Series) Circular No.33 ADs Category – I, ADs Category – II and FFMCs may provide facility for reconversion of Indian Rupees to the extent of Rs. 50,000/- to foreign tourists (not NRIs) against ATM Receipts based on the following documents. • Valid Passport and VISA • Ticket confirmed for departure within 7 days. • Original ATM slip (to be verified with the original debit/ credit card). Full Article