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Archive: 01 July 2011

Posts in 01 July 2011

RBI's Master Circular dated 1-7-2011 on Para-banking Activities

July 1, 2011 604 Views 0 comment Print

Please refer to the Master Circular No.DBOD.FSD.BC.17/24.01.001/2010-11, dated July 1, 2010 consolidating the instructions/guidelines issued to banks till June 30, 2010 on para-banking activities. The Master Circular has been suitably updated by incorporating instructions issued up to June 30, 2011. The Master Circular has also been placed on the RBI website (http://www.rbi.org.in). A copy of the Master Circular is enclosed. A separate Master Circular has been issued on the Credit Card Operations of banks.

RBI's Master Circular dated 1-7-2011 on Appointment & delisting of Brokers and Payment of Brokerage on Relief/Savings Bonds

July 1, 2011 310 Views 0 comment Print

Procedure for enrollment/registration of brokers – Agency Banks may follow a simple procedure for enrollment/registration of brokers. The broker seeking enrollment/registration may submit his/her request for registration on his/her business letterhead together with business data. The Agency banks may allot a broker code number, which should be quoted by the broker on all applications tendered at the Receiving offices.

RBI Master Circular – Guidelines For Relief Measures By Banks In Areas Affected By Natural Calamities

July 1, 2011 508 Views 0 comment Print

RPCD. No. PLFS. BC. 8 / 05.04.02/ 2011-12 Periodical but frequent occurrence of droughts, floods, cyclones, tidal waves and other natural calamities takes a heavy toll of human life and causes wide spread damage to economic pursuits of human beings in one area or the other of our country. The devastation caused by such natural calamities call for massive rehabilitation efforts by all agencies. The State and local authorities draw programmes for economic rehabilitation of the affected people. The developmental role assigned to the commercial banks and co-operative banks, warrants their active support in revival of the economic activities.

RBI's Master Circular dated 1-7-2011 on Branch Authorisation

July 1, 2011 7664 Views 0 comment Print

The opening of new branches and shifting of existing branches of banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot, without the prior approval of the Reserve Bank of India (RBI), open a new place of business in India or abroad or change, otherwise than within the same city, town or village, the location of the existing place of business. Section 23 (2) of the Banking Regulation Act lays down that before granting any permission under this section, the Reserve Bank may require to be satisfied, by an inspection under Section 35 or otherwise, as to the financial condition and history of the banking company, the general character of its management, the adequacy of its capital structure and earning prospects and that public interest will be served by the opening or, as the case may be, change of location of the existing place of business. Commercial banks (other than RRBs) including Local Area Banks should approach Department of Banking Operations & Development, Central Office in this regard.

RBI's Master Circular, dated 1-7-2011 on Lending to Micro, Small & Medium Enterprises (MSME) Sector

July 1, 2011 1015 Views 0 comment Print

As you are aware, the Reserve Bank of India has, from time to time, issued a number of guidelines/instructions/directives to banks in the matters relating to lending to Micro, Small & Medium Enterprises Sector. To enable the banks to have current instructions at one place, a Master Circular incorporating the existing guidelines/instructions/directives on the subject has been prepared and is appended. This Master Circular consolidates the instructions issued by the RBI up to June 30, 2011, which are listed in the Appendix, to the extent they deal with the MSME sector lending by commercial banks.

RBI's Master Circular dated 1-7-2011 on External Commercial Borrowings and Trade Credits

July 1, 2011 925 Views 0 comment Print

External Commercial Borrowings and Trade Credits availed of by residents are governed by clause (d) of sub-section (3) of section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 3/2000-RB viz. Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, dated May 3, 2000, as amended from time to time. This Master Circular consolidates the existing instructions on the subject of ‘External Commercial Borrowings and Trade Credits’ at one place. The list of underlying circulars/notifications, consolidated in this Master Circular, is furnished in the Appendix.

Continuation of DEPB scheme for three months beyond 30.06.2011 i.e. upto 30.09.2011–Reg

July 1, 2011 999 Views 0 comment Print

I am directed to invite your attention to Notification No. 51/2011-Cus dated 22.06.2011 which amends Notification No. 97/2009-Cus dated 11.09.2009, whereby the validity of Notification No. 97/2009-Cus [which governs imports under the Duty Entitlement Pass Book (DEPB) scheme] has been extended. Circular No. 26 /2011-Cus. -The amending notification 51/2011-Cus stipulates that the notification will be valid for DEPB scrips issued by the Licensing Authority against exports having ‘Let Export Order’ up to and inclusive of the 30th day of September, 2011. The term ‘Let Export Order’ has also been explained in the amending notification as an order which permits clearance and loading of the goods for exportation by the proper officer in accordance with section 51 of the Customs Act, 1962.

RBI’s Master Circular dated 1-7-2011 on Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003

July 1, 2011 904 Views 0 comment Print

As you are aware, in order to have all current instructions on the subject at one place, the Reserve Bank of India issues updated circulars/notifications. The instructions contained in the Notification No. DNBS.2/CGM(CSM)-2003, dated April 23, 2003 updated as on June 30, 2011 are reproduced below (Annexures). The updated Notification has also been placed on the RBI web-site (http://www.rbi.org.in).

RBI's Master Circulars dated 1-7-2011 on Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF)

July 1, 2011 7514 Views 0 comment Print

With a view to adopting the Basle Committee on Banking Supervision (BCBS) framework on capital adequacy which takes into account the elements of credit risk in various types of assets in the balance sheet as well as off-balance sheet business and also to strengthen the capital base of banks, Reserve Bank of India decided in April 1992 to introduce a risk asset ratio system for banks (including foreign banks) in India as a capital adequacy measure. Essentially, under the above system the balance sheet assets, non-funded items and other off-balance sheet exposures are assigned prescribed risk weights and banks have to maintain unimpaired minimum capital funds equivalent to the prescribed ratio on the aggregate of the risk weighted assets and other exposures on an ongoing basis. Reserve Bank has issued guidelines to banks in June 2004 on maintenance of capital charge for market risks on the lines of ‘Amendment to the Capital Accord to incorporate market risks’ issued by the BCBS in 1996.

RBI allows issuing equities against capital good imports

July 1, 2011 714 Views 0 comment Print

The Reserve Bank today allowed domestic companies to issue shares against import of capital goods and machineries, making it easier for them to expand. However, companies will have to get prior approval of the government to trade equities for imports.

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