Advisory for Compliance by FCRA NGOs/Associations with the Amended Provisions in FCRA, 2010 and FCRR, 2011 Note: – This advisory is meant for any association that belongs to one of the following categories: (a) Those who have submitted application for registration/Prior Permission (b) Those who have submitted application for Renewal...
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Shri Shaktikanta Das, Governor, Reserve Bank of India, gave a lecture on ‘Accelerating Financial Market Reform in India’ at the 4th Annual Day of Foreign Exchange Dealers’ Association of India (FEDAI) on November 26, 2020, at Mumbai. Though the title involves an overhaul of total financial reforms in recent times in India, I...
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Notification No. G.S.R. 731(E) -
(25/11/2020) -
MINISTRY OF FINANCE (Department of Financial Services) (BANKING DIVISION) NOTIFICATION New Delhi, the 25th November, 2020 G.S.R. 731(E).— Whereas, the Lakshmi Vilas Bank Limited is a banking company registered under the Companies Act, 1956 (1 of 1956) and carrying on the business of banking in India; And whereas, the rapidly deteriorati...
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Union Cabinet has given its approval to the Scheme of Amalgamation of Lakshmi Vilas Bank Limited (LVB) with DBS Bank India Limited (DBIL). On 17.11.2020, to protect depositors' interest and in the interest of financial and banking stability, on RBI's application under section 45 of the Banking Regulation Act, 1949, LVB had been under mora...
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Notification No. RBI/2020-21/69 A.P. (DIR Series) Circular No. 07 -
(23/11/2020) -
AD Category – I banks are directed by RBI to not to grant any approval to foreign law firms/companies or foreign lawyers to open any branch office, project office, liaison office or other place of business in India under FEMA for the purpose of practicing legal profession in India....
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The Ministry of Law and Justice notified the Foreign Contribution (Regulation) Amendment Act 2020 (FCRA Amendment Act) which amends the existing provisions of the Foreign Contribution Regulation Act 2010 (FCRA) after receiving assent of the President of India on the 28th September, 2020. The FCRA Amendment Act brings in a slew of amendmen...
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SOP to open and operate the FCRA Account as provided under Section 17(1) of the amended Foreign Contribution (Regulation) Act, 2010 with SBI, New Delhi Main Branch in terms of FCRA (Amendment), 2020...
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The Report of the Internal Working Group set up to Review extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks by Reserve Bank of India dated October 26, 2020, by four members team was submitted. As the name indicates this epoch-making event unlocks the mysteries of floating a private sector bank and the [&h...
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Press Release: 2020-2021/667 -
RBI releases the Report of the Internal Working Group to Review Extant Ownership Guidelines and Corporate Structure for Indian Private Sector Banks....
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F. No. 1/8/2016-FDI Policy -
(09/11/2020) -
Upon receipt of the FDI application, the concerned Administrative Ministry/Department shall process the application as per the Standard Operating Procedure (SOP). If the online filing of application is with digital signature by authorised signatory, physical submission of the copy is not required. For applications without digital signatur...
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Notification No. DOR.049/CGM(MM)–2020. -
(18/11/2020) -
Provisions of Sections 45-IA, 45-IB and 45-IC of the Reserve Bank of India Act, 1934 (2 of 1934) shall not apply to a non-banking financial company which is a Housing Finance Institution as defined in clause (d) of section 2 of the National Housing Bank Act, 1987 (53 of 1987) RESERVE BANK OF INDIA (Department […]...
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Notification No. DOR. 048/ED(SS)–2020. -
(18/11/2020) -
A housing finance institution which is a company holding a Certificate of Registration issued under Section 29A of National Housing Bank Act, 1987 and having net owned fund less than twenty crore rupees, may continue to carry on the business of housing finance institution, if such company achieves net owned fund of fifteen crore rupees [&...
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Press Release: 2020-2021/647 -
(17/11/2020) -
Reserve Bank of India has today placed in public domain a draft scheme of amalgamation of The Lakshmi Vilas Bank Ltd. (LVB) with DBS Bank India Ltd. (DBIL), a banking company incorporated in India under Companies Act, 2013, and having its Registered Office at New Delhi....
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Press Release: 2020-2021/646, Order No. DOR.PSBD.No. 1407/16.01.067/2020-2021, Order No. DOR.PSBD No.1408/16.01.067/2020-2021 -
(17/11/2020) -
RBI superseded the Board of Directors of The Lakshmi Vilas Bank Ltd. for a period of 30 days owing to serious deterioration in the financial position of the bank. This has been done to protect the depositors’ interest....
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Press Release: 2020-2021/645, Notification No. S.O. 4127(E), Order No. DOR/PSBD.No.1406/16.01.067/2020-21 -
(17/11/2020) -
Reserve Bank of India Date : Nov 17, 2020 The Lakshmi Vilas Bank Ltd. placed under Moratorium The financial position of The Lakshmi Vilas Bank Ltd. (the bank) has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth. In absence of any viable strategic plan, declining [&helli...
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RBI/2020-21/68 DPSS.CO.PD.No.660/02.14.008/2020-21 -
(17/11/2020) -
An authorised PPI Issuer or a PA is required to maintain an escrow account with a scheduled commercial bank on an ongoing basis. With a view to diversify risk and address business continuity concerns, it has been decided to allow one additional escrow account in a different scheduled commercial bank....
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RBI/2020-21/67 A.P. (DIR Series) Circular No. 06 -
(17/11/2020) -
On a review and in partial modification of earlier instructions it has been decided that in respect of the Compounding Orders passed on or after March 01, 2020 a summary information, instead of the Compounding Orders, shall be published on the Bank’s website in the following format:...
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Based on the brilliant lecture on the above subject by Shri M. Rajeshwar Rao, Deputy Governor, Reserve Bank of India – November 6, 2020 – at the ‘National E-Summit on Non-Banking Finance Companies’ organized by ASSOCHAM, the following article traces its origin. It has been drawn from the RBI web site as under: https://www....
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RBI decided to discontinue the 17 returns/reports as listed under under Foreign Exchange Management Act, 1999 which includes Report on Category-wise transaction where the amount exceeds USD 5000 per transaction...
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Loan Restructuring Scheme For COVID-19 Hit Stressed Borrowers. Synopsis : COVID -19 left a destructive mark on the World Economy including India, so the Government of India along with the Ministry of Finance & Reserve Bank Of India announced several Stimulus Shots to revive the Indian economy, so the Governor of RBI , Sri Sakthikantha...
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F. No. DGBA/DBA/No 342/62.01.033/2020-21 -
(11/11/2020) -
(1) These regulations may be called the Reserve Bank of India General (Amendment) Regulations, 2020. (2) They shall come into force on the date of their publication in the Official Gazette....
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Notification No. G.S.R. 695(E) -
(10/11/2020) -
(1) These rules may be called the Foreign Contribution (Regulation) (Amendment) Rules, 2020.
(2) They shall come into force on the date of their publication in the Official Gazette....
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Notification No. RBI/2020-21/63 FIDD.CO.Plan.BC.No.8/04.09.01/2020-21 -
(05/11/2020) -
The Master Agreement entered into by the banks and NBFCs for implementing the CLM may provide either for the bank to mandatorily take their share of the individual loans as originated by the NBFC in their books or retain the discretion to reject certain loans subject to its due diligence....
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RBI/2020-21/62 DOR.No.BP.BC.27/21.04.048/2020-21 -
(02/11/2020) -
We have since received several references from banks seeking clarifications on operational issues regarding maintenance of current accounts already opened by the banks. These references are being examined by the Reserve Bank and will be clarified separately by means of a FAQ....
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Till 16th October, 2019, Foreign Investment was governed, by RBI in consultation with Central Government, by Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2017, called as TISPRO. Pursuant to amendment made in FEMA through Finance Act 2015, Central Government is empowered to mak...
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Will banks be required to maintain specified securities for the amount received in TLTRO in HTM book at all times? Yes. The banks will have to maintain amount of specified securities for the amount received in TLTRO in its HTM book at all times till maturity of TLTRO....
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Following are the types of Bank account which a foreigner can maintain in India: ♦ Non – Resident External Rupee Account (NRE). ♦ Non- Resident Ordinarily Account (NRO). ♦ Foreign Currency (Non – Resident) Account Bank (FCNR (B)). ♦ Non – Resident (Non Repatriable) Rupee Deposit Accounts (NRNR Accounts). ♦ Special Non- Res...
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RBI/2020-21/61 DOR.No.BP.BC.26/21.04.048/2020-21 -
(26/10/2020) -
RBI direct banks to implement Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020)...
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Analysis of Foreign Contribution (Regulation) Amendment Act, 2020 (No. 33 of 2020) Purpose and effective date Purpose – To amend the Foreign Contribution (Regulation) Act 2010. Effective date – 29th September 2020 is the date on which the amendments shall come into force (Notification S.O. 3395(E) dated 29.09.2020) Amendments in a gla...
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INCORPORATION OF COMPANY BY FOREIGN NATIONALS? Incorporation of Company by Foreign Nationals/Non Resident Indian/Overseas Citizen Of India (OCI) is a cumbersome process and subject to Regulatory approvals. The laws which here are of concern are: 1. Companies Act, 2013 2. Foreign Exchange Management Act, 1999. FEMA PERSPECTIVE Starting poi...
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Notification No. FEMA. 399/RB-2020. -
(23/10/2020) -
i) These regulations may be called the Foreign Exchange Management (Margin for Derivative Contracts) Regulations, 2020. ii) They shall come into force from the date of their publication in the Gazette of India....
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RBI/2020-21/60 DOR.NBFC (HFC).CC.No.118/03.10.136/2020-21 -
(22/10/2020) -
HFCs shall carry out securitization of standard assets and transfer of assets through direct assignment of cash flows and the underlying securities. In doing so, HFCs, among other things, shall conform to the minimum holding period (MHP) and minimum retention requirement (MRR) standards....
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RBI/2020-21/59 DPSS.CO.PD.No.497/02.14.003/2020-21 -
(22/10/2020) -
i. The two interoperable QR codes in existence – UPI QR and Bharat QR – shall continue as at present. ii. Payment System Operators (PSOs) that use proprietary QR codes shall shift to one or more interoperable QR codes; the process of migration shall be completed by March 31, 2022. iii. No new proprietary QR codes shall henceforth be...
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RBI/2020-21/58 DPSS.CO.PD.No.503/02.12.004/2020-21 -
(22/10/2020) -
The Reserve Bank of India (RBI), as the regulator of payment and settlement systems in the country, sets the necessary regulatory framework, through a consultative process, to ensure that different types of payment systems operate in the country to meet the various payment needs in the economy. Over time, a bouquet of payment instruments ...
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Even the minute investment from countries sharing land border with India shall require prior approval from government…??? Impact on Indian Economy. It is expected that the government will soon issue more stringent guidelines w.r.t investment from countries sharing land border with India. Amid Covid-19 and rising tensions at the India-Ch...
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Now-a-days many people receive mail from their banks stating that their bank account will become Inoperative/ Dormant for non-operation of Saving as well as Current Account? Many people got confused or stressed because of such mails, hence today I am writing this article to help my readers to understand and face this issue confidently....
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Foreign Direct Investment (FDI) is a major driver of economic growth and an important source of non-debt finance for the economic development of India. It has been the endeavor of the Government to put in place an enabling and investor friendly FDI policy....
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A Foreign National can start a business in India without being a Resident and one can setup up a new business in India in any of the following ways: A. Limited Company (Private Limited/Public Limited Company) B. Limited Liability Partnership (LLP) C. Branch Office or Liaison/Representative Office, Project Office A. LIMITED COMPANY A non-r...
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RBI/2020-21/56 DOR.No.BP.BC.24/08.12.015/2020-21 -
(16/10/2020) -
It has been decided to rationalise the risk weights, irrespective of the amount. The risk weights for all new housing loans to be sanctioned on or after the date of this circular and upto March 31, 2022 shall be as under:...
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The RBI Committee was formed under former Corporate Affairs Secretary, Mr. Tapan Ray to suggest a new regulatory and supervisory framework in light of the bust up of IL&FS in 2018. IL&FS was declared insolvent in September 2018 after it failed to honour its debt which was distributed among its 347 group companies. The complex [&he...
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DPIIT File Number 5(2)/2020-FDI Policy -
(15/10/2020) -
Department for Promotion of Industry and Internal Trade Ministry of Commerce and Industry Government of India Consolidated FDI Policy (Effective from October 15, 2020) Government of India Ministry of Commerce Sr Industry Department for Promotion of Industry and Internal Trade (FDI Division) Consolidated FDI Policy Circular of 2020 Subject...
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ANALYSIS OF COMPOUNDING ORDERS ISSUED BY AUTHORITY YEAR 2020 1) Transfer or Issue of Security by a Person Resident Outside India (Inbound Investment) (FEMA 20/2000-RB), Taking on record transfer of shares from resident to non-resident. Applicant M/s W. Hunger Hydraulics India Private Limited Compounding Application Number C.A. No. 126/2...
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Foreign investments into India to acquire equity instruments of an Indian company are primarily regulated in terms of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules). ‘Equity Instruments’ means equity shares, convertible debentures, preference shares and share warrants issued by an Indian company...
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F.No. II/21022/23(35)/2019-FCRA-III -
(13/10/2020) -
Procedure for opening & operating the designated FCRA Account as provided under the amended Section 17(1) of The Foreign Contribution (Regulation) Act , 2010...
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Know Person Resident Outside India (PROI) and Non-Resident Indian (NRI) under FEMA Pursuant to the amendments to Foreign Exchange Management Act, 1999 (‘FEMA’) through Finance Act, 2015, recently, the Ministry of Finance notified the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (“the Nondebt Instruments Rules”) v...
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Piyush Bokaria Vs RBI (Madras High Court) -
Piyush Bokaria Vs RBI (Madras High Court) Facts- The RBI’s master circular dated 01.07.2015 is challenged on the ground that it violates Article 14, 19, 21, 253 and 300-A of the constitution. Further, it is also challenged to be contrary to the provisions of the Companies Act, 2013, the Indian Contract Act, 1872, the Transfer […]...
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Notification No. RBI/2020-2021/55 DoR(PCB). BPD.Cir No.4/12.05.001/2020-21 -
(13/10/2020) -
Reserve Bank hereby extends the period for furnishing of the returns under Section 31 of the Act for the financial year ended on March 31, 2020 by a further period of three months in terms of the first proviso to the above section. Accordingly, all State Co-operative Banks and Central Co-operative Banks shall ensure submission of the afor...
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RBI/2020-2021/54 DoR.No.BP.BC.22/21.04.141/2020-21 -
(12/10/2020) -
It has also been decided that the enhanced HTM limit shall be restored to 19.5 per cent in a phased manner, beginning from the quarter ending June 30, 2022, i.e. the excess SLR securities acquired by banks during the period September 1, 2020 to March 31, 2021 shall be progressively reduced such that the total SLR securities held in the HT...
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RBI/2020-21/53 DOR.No.BP.BC.23/21.06.201/2020-21 -
(12/10/2020) -
In order to reduce the cost of credit for this segment consisting of individuals and small businesses (i.e. with turnover of upto ₹ 50 crore), and also to harmonise with the Basel guidelines, it has been decided that the above threshold limit of ₹ 5 crore for aggregated retail exposure to a counterparty shall stand increased to ₹ 7....
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RBI/2020-2021/52 IDMD.CDD.No.730/14.04.050/2020-21 / Press Release: 2020-2021/462, Notification No. G.S.R. 627(E) -
(09/10/2020) -
Reserve Bank of India RBI/2020-2021/52 IDMD.CDD.No.730/14.04.050/2020-21 October 9, 2020 The Chairman& Managing Director All Scheduled Commercial Banks, (Excluding RRBs) Designated Post Offices Stock Holding Corporation of India Ltd.(SHCIL) National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd. Dear Sir/Madam, Sovereig...
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The Ministry of Finance, Government of India has now classified instruments issued under Foreign Exchange Management Act, 1999 (FEMA) as debt and non-debt instruments and has notified the rules/ regulations in this regard. The Finance Act of 2015 had proposed certain amendments to the Foreign Exchange Management Act, 1999. The Central Gov...
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RBI/2020-2021/50 A.P. (DIR Series) Circular No.03 -
(09/10/2020) -
Under the revised procedure, an exporter would be caution-listed by the Reserve Bank based on the recommendations of the AD bank concerned, depending upon the exporters track record with the AD bank and investigative agencies....
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The newly appointed Monetary Policy Committee (MPC) of Reserve Bank of India with Dr. Ashima Goyal, Professor Jayanth R. Varma, and Dr. Shashanka Bhide, as external members met on 7th, 8th, and 9th October 2020 in its first meeting and the 25th under the monetary policy framework that was instituted in June 2016. “The MPC […]...
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Press Release: 2020-2021/453 & Press Release No. 2020-2021/453-454 -
(09/10/2020) -
On the basis of an assessment of the current and evolving macroeconomic situation, Monetary Policy Committee (MPC) at its meeting today (October 9, 2020) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent....
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Introduction: Overseas Direct Investments (ODI) in the Indian Context means, any capital outflows / investments made by Indian residents in a foreign country but does not include portfolio investment. As more companies involve themselves with foreign investments, the importance of the Foreign Exchange Management Act (FEMA) regulations an...
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For a country where capital is not readily available, Foreign Direct Investment (FDI) has been an important source of funds for companies. Under FDI, overseas money, either by an individual or entity, is invested in an Indian company FDI in India is regulated by the Foreign Exchange Management Act, 1999 (FEMA) and the master circular/ [&h...
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It is quite astonishing that FCRA, 2020 has been made effective amidst COVID-19 situation when so many NGOs are putting hands together to serve the needy, arising awareness to fight COVID-19 and support various weaker section of society to the best extent possible....
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RBI/2020-21/48 DOR (PCB).BPD.Cir No.3/13.05.001/2020-21 -
(07/10/2020) -
MSME Loan Interest Subvention scheme validity has been extended till March 31, 2021. Accordingly, fresh or incremental term loan / working capital limit extended by co-operative banks with effect from March 3, 2020 will be eligible for coverage under the scheme....
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Every company having Foreign Direct Investment (FDI), is required to report Reserve Bank of India (RBI). Herein, we are not describing and defining FDI and the same can be find in another article. The RBI, in the First Bi-monthly Monetary Policy Review dated April 5, 2018 announced that, with the objective of integrating the extant [&hell...
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Replacing Foreign Exchange Regulation Act, 1974 (FERA) with Foreign Exchange Management Act, 1999 (FEMA) was a welcome move giving abundant opportunity and confidence to Indian Business, to go global fearlessly, by liberalizing the laws and taking out the draconian portion of law with relaxing provisions. It took more than 50 years to rea...
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Notification No. S.O. 3467(E) -
(05/10/2020) -
In exercise of powers conferred by section 45ZB of the Reserve Bank of India Act, 1934, Central Government constitutes Monetary Policy Committee of RBI...
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Amendment through the Finance Act of 2015 The Finance Act of 2015 had proposed certain amendments to the Foreign Exchange Management Act, 1999 (“FEMA”). The Central Government (CG), vide sections 138 to 144 of Finance Act 2015, brought changes to FEMA. The said changes were not notified for long time. However, after a long delay, [&he...
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I am getting lot of queries regarding corporate debt restructuring under COVID as per RBI circular dated 06-08-2020. I decided to submit my views on the implementation of these guidelines for the eligible borrowers to address various issues:- A) Objective & Background 1. The economic fallout on account of the Covid-19 pandemic has led...
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The Foreign Contribution (Regulation) Amendment Act, 2020 :- An Act (wef 29.09.2020) to further amend the Foreign Contribution (Regulation) Act, 2010 (Act) -Introduced in Lok Sabha on 20.09.2020 -Passed by Lok Sabha on 21.09.2020 -Passed by Rajya Sabha on 23.09.2020 -President’s Ascent on 28.09.2020 -Effective date on which provisions ...
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RBI/2020-21/47 DOR.No.Ret.BC.20/12.07.150/2020-21 -
(30/09/2020) -
Syndicate Bank has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from April 01, 2020 since it has ceased to carry on banking business with effect from April 01, 2020 ...
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RBI/2020-21/46 DOR.No.Ret.BC.19/12.07.150/2020-21 -
(30/09/2020) -
Exclusion of Oriental Bank of Commerce and United Bank of India from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as banking company...
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RBI/2020-21/45 DOR.No.Ret.BC.18/12.07.150/2020-21 -
(30/09/2020) -
Exclusion of Andhra Bank and Corporation Bank from the Second Schedule to the Reserve Bank of India Act, 1934 and cessation as banking company...
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RBI/2020-21/44 DOR.No.Ret.BC.17/12.07.150/2020-21 -
(30/09/2020) -
We advise that Allahabad Bank has been excluded from the Second Schedule to Reserve Bank of India Act, 1934 with effect from April 01, 2020 since it has ceased to carry on banking business with effect from April 01, 2020...
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Reserve Bank of India in tune with its policy to prepare Urban Co-operative Banks (UCB) for meeting the challenges of modern technological ways of extension of banking through Urban Co-operative banks issued a detailed communication dated 24th September 2020 titled ‘Technology vision for cybersecurity for urban co-operative banks...
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Notification No. S.O. 3377(E) -
(29/09/2020) -
Reserve Bank of India, hereby declare that the provisions of section 31 read with clause (t) of section 56 of the said Act shall not apply to primary co-operative banks till 31st December, 2020....
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Standard Operating Procedure (SOP) for Filing of FCGPR by a professional FCGPR Stands for Foreign Contribution Gross Provisional Return. It is the form issued by RBI under Foreign Exchange Management Act, 1999 and it has to be filed for issue of capital instruments by an Indian Company to a preson resident outside India. When the [&hellip...
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RBI/2020-21/43 DOR.BP.BC.No.16/21.04.098/2020-21 -
(29/09/2020) -
In view of the continued uncertainty on account of COVID-19, on a review, it has been decided to defer the implementation of NSFR guidelines by a further period of six months. These guidelines shall now come into effect from April 1, 2021....
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RBI/2020-21/42 DOR.BP.BC.No15/21.06.201/2020-21 -
(29/09/2020) -
RBI decided to defer the implementation of the last tranche of 0.625 per cent of the Capital Conservation Buffer (CCB) from September 30, 2020 to April 1, 2021....
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No. 39 of 2020 -
(29/09/2020) -
(1) This Act may be called the Banking Regulation (Amendment) Act, 2020. (2) It shall be deemed to have come into force on the 26th day of June, 2020, except section 4, which, in so far as it relates to––...
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On 24th September 2020, the Reserve Bank of India placed on its website a Working Paper titled ‘Inflation Forecast Combinations – The Indian Experience’ under the Reserve Bank of India Working Paper Series. The Paper has been authored by Joice John, Sanjay Singh, and Muneesh Kapur, from RBI though the views expressed were ...
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No. 33 of 2020 -
(28/09/2020) -
(1) This Act may be called the Foreign Contribution (Regulation) Amendment Act, 2020. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint....
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Mohd Nashruddin Khan Vs. Union of India (Delhi High Court) -
Mohd Nashruddin Khan Vs. Union of India (Delhi High Court) The instant petition is filed by the petitioner to seek quashing of the respective Detention Orders. High Court state that the Supreme Court has held that the basis of detention is the satisfaction of the Executive – of a reasonable probability of the likelihood of […]...
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Reserve Bank of India in its RBI Working Paper Series No. 09 dated September 22, 2020, published a paper on its website which measures the financial stress in India focusing on the construction of financial stress indices for the Indian financial system using market-based indicators and three different aggregation methods. The paper finds...
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RBI/2020-21/41 DPSS.CO.RPPD.No.309/04.07.005/2020-21 -
(25/09/2020) -
The concept of Positive Pay involves a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the...
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Indian Businesses with Overseas Direct Investment (ODI) await clarifications – Are the regulators listening? Indian entrepreneurs found the outlet to tap into the foreign markets and mark their presence in foreign lands, thanks to liberalization brought in by Foreign Exchange Management Act 1999 (FEMA), allowing much-needed relaxation. ...
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RBI’s clear directions on implementing cKYC for new clients Last month my article on the subject ‘cKYC mechanism becomes a mockery & wastage of country’s resources‘, was published on your popular website. The link is given below for those who wish to read it. https://taxguru.in/finance/ckyc-mechanism-become-mockery-w...
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Notification No. S.O. 3238(E) -
(23/09/2020) -
Reserve Bank of India allowed Shri Uday Kotak, Managing Director and Chief Executive Officer of Kotak Mahindra Bank Limited to be on the Board of Infrastructure Leasing and Financial Services Limited as its Non-executive Director, initially for a period of three months and subsequently for a further period of nine months, under the above ...
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The regulatory landscape has undergone a significant change with the introduction of Guidelines on Regulation of Payment Aggregators and Payment Gateways (DPSS.CO.PD.No.1810/02.14.008/2019-20 dated March 17, 2020). The guidelines propose for stricter regulation on the activities of payment activities and payment gateways in India. T...
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FDI policy is an enabling policy which is uniformly applicable in the country across all scales of industries including small and medium enterprises....
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Foreign investors or Foreign companies can open a liaison office in India for promoting and facilitating the parent company business activities and can act as best communication channel between the foreign parent company and Indian company....
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Bill No. 123 of 2020 -
(20/09/2020) -
The Foreign Contribution (Regulation) Amendment Bill, 2020, inter alia, seeks to provide for— (a) amendment of clause (c) of sub-section (1) of section 3 to include public servant also within its ambit, to provide that no foreign contribution shall be accepted by any public servant;...
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RBI: Role of Chief Compliance Officer (COO)–Discussion on compliance function in banks Reserve Bank of India vides its communication dated September 11, 2020, informed that in order to have an effective compliance culture, independent corporate compliance function, and a strong compliance risk management program at the bank and group le...
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Adhoc Monthly/Quarterly SMS charges and GST on it levied by banks on Cores of banking accounts and its appropriateness Upon reading the title of the write-up you may think that the subject matter is very simple and insignificant. Probably, the reader may also think that there is no need to write such a lengthy article-up. […]...
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Inadequate regulatory oversight by financial market regulators resulting in regulated entities practising random ways to generate extra revenue In anxiety to improve the earnings under ‘miscellaneous income category,’ many business entities in the financial sector are looking at various opportunities and do mischievous things. I am fo...
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An investment outside India can be done by an Indian party or an individual or (single or in association with another resident individual or with an ‘Indian Party’). All resident individuals, including minors, are allowed to freely remit up to USD 250,000 per financial year. An Indian Party can make overseas direct investment in any [...
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Several multinational companies have evinced their interest to shift their base into India across different States in sectors such as Electronics, Retail, e-Commerce, Automotive, Food Processing, Textiles etc. ...
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RBI/2020-2021/39 FIDD.GSSD.CO.BC. No.06/09.01.01/2020-21 -
(18/09/2020) -
The Master Circular has been suitably updated by incorporating the modifications in DAY-NRLM scheme issued up to September 18, 2020, which are listed in the appendix and also been placed on website (https://www.rbi.org.in)....
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Press Note No. 4 (2020 Series) / DPIIT File No.: 5(8)/ 2020-FDI Policy -
(17/09/2020) -
Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence Sector Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry has issued Press Note No. 4 (2020 Series), reviewing Foreign Direct Investment (FDI) Policy in Defence Sector. The decision will take effect f...
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A good governance framework and effective risk and compliance culture should be complemented by a robust assurance mechanism by way of internal audit function. This is an integral part of sound corporate governance, which should provide an independent assurance to the Board of the bank as well as to external stakeholders that the operatio...
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Bill No. 114-C of 2020 -
(16/09/2020) -
As PASSED BY LOK SABHA ON 16.9.2020 Bill No. 114-C of 2020 THE BANKING REGULATION (AMENDMENT) BILL, 2020 A BILL further to amend the Banking Regulation Act, 1949. BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:— 1. Short title and commencement. (1) This Act may be called […]...
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RBI: Automation of Income recognition, asset classification and provisioning – latest guidelines RBI vide its communication September 14, 2020, informed the banks that in spite of its earlier instructions issued on August 04, 2011, to use IT system in place for identification of Non-Performing Assets (NPA) and generation of related data...
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Bill No. 114 of 2020 -
(14/09/2020) -
Banking Regulation (Amendment) Bill, 2020 which seeks to replace the Banking Regulation (Amendment) Ordinance, 2020 (Ord. 12 of 2020) provides for the following, namely:— (i) substitution of section 3 to provide that the Act shall not apply to— (a) a primary agricultural credit society; or (b) a co-operative society whose primary obje...
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RBI/2020-21/37 Ref. No. DoS.CO.PPG./SEC.03/11.01.005/2020-21 -
(14/09/2020) -
In order to ensure the completeness and integrity of the automated Asset Classification (classification of advances/investments as NPA/NPI and their upgradation), Provisioning calculation and Income Recognition processes, banks are advised to put in place / upgrade their systems to conform to the following guidelines latest by June 30, 20...
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Moratorium accounts not to be declared as NPA until further notice: Order by Apex Court on September 03, 2020 & September 10, 2020 The apex court heard petition of borrowers on September 03, 2020 seeking interest waiver on loan moratorium granted previously by Reserve Bank of India (“RBI”). In the backdrop of COVID-19, banks had [...
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