Fema / RBI

Framework for resolution of stressed loans on account of Covid-19

The RBI has, vide notification dated 06.08.2020, issued a new framework for resolution of stressed loans caused by Covid-19. I am discussing the relevant portion of this notification in my own words in simple and clear language in three parts. Part-I (General overview of the framework) Existing frameworks for restructuring of loans before...

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RBI barred opening Current Accounts for CC/OD Customers with Banks

In a recent notification, Reserve Bank of India (RBI) on 6th August 2020, instructed all Scheduled Commercial Banks to maintain a discipline on opening of Current Account. The below are highlights from the notification: 1. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/...

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RBI Committee Report on Analysis of QR Code – Interesting facts on digital payments

Report of RBI Committee on the Analysis of QR (Quick Response) Code – Interesting facts on digital payments Buoyed up by the volume of 250 million digital payments using UPI QR on monthly basis, RBI was naturally very enthusiastic to set up an expert committee under the leadership of Prof. D.P. Pathak, Professor Emeritus, IIT, […...

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Foreign Collaboration- General Permission Route

FCGPR is required to be filed with the RBI for issue of shares through Bonus/Right issue by an Indian company to a person resident outside India/body corporate incorporated outside India. Website: https://firms.rbi.org.in/firms/ Due date for filling: Within 30 days from the date of issue of shares TYPE OF REGISTRATION: Entity User Registr...

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Towards Enhancing Governance In Indian Banking System

The importance of corporate governance in banks can not be undermined and is paramount in larger interests of shareholders, depositors and economy as a whole. Indian banking is today at cross roads facing challenges such as mounting non-performing advances (NPAs) failure of risk management triggers, ethical vacuum at top management and la...

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Indian Economy at a Crossroad: A view from Financial Stability Angle

he outbreak of COVID-19 pandemic is unambiguously the worst health and economic crisis in the last 100 years during peace time with unprecedented negative consequences for output, jobs and well-being. It has dented the existing world order, global value chains, labour and capital movements across globe and needless to say, the socio-econo...

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Document Checklist for FDI approval

Checklist for documents to be submitted at concerned authorities for FDI approval S.No. Document 1. Certificate of Incorporation of the Investee & Investor Companies/Entities* (Investee company may be a proposed entity and may not be incorporated) 2. Memorandum of Association (MOA) of the Investee & Investor Companies/Entities* 3....

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RBI extends FLA 2020 due date to 31st July 2020

Submission of annual return on FLA through the web-based FLAIR portal for financial year 2019-20 has been started. Entities which are filing FLA return for the first time/ with revised UIN (Unique identification number) are required to register themselves first for generating login credentials and they can file FLA return. However, the en...

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Govt monitoring transmission of repo rate cut by Banking Sector

Government closely monitoring transmission of repo rate cut by the Banking Sector and recognise efforts of wealth creators in scripting India’s growth story : Finance Minister in a virtual meeting with PHD Chamber...

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SC to soon decide on exigibility of interest on interest on deferred loans during moratorium

The Reserve Bank of India, in view of the Covid pandemic, realised the financial emergency and liquidity crunch in our economy due to lockdown, announced moratorium for all loans for a certain period. However, there is dispute about the chargeability of interest  by the Banks/ Financial Corporations on this extended period. The business ...

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FERA Offence Liability depends on Role in Company Affairs & Not on Mere Designation or Status: SC

Shailendra Swarup Vs The Deputy Director (Supreme Court of India) - Shailendra Swarup Vs Deputy Director (Supreme Court of India) Section 68 of FERA, 1973 deals with Offences by companies. Section 68(1) provides that every person who, at the time of the contravention was committed, was in charge of, and was responsible to, the company for the conduct of business of ...

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RBI Responsible for Monitoring Compliance of Loan Moratorium Circular: HC

Velankani Information Systems Limited Vs Secretary, Ministry of Home Affairs (Karnataka High Court) - The contentions of the RBI that the dispute is between the Petitioner and Respondents is not acceptable since the dispute arises out of the implementation or not of a Circular issued by the RBI. RBI is therefore directed to monitor the implementation of the Circular, including verification of whethe...

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Money Laundering is an act of financial terrorism: HC

Mohammad Arif Vs Directorate Of Enforcement (Orissa High Court) - High Court of Orissa held that The offence of Money Laundering is nothing but an act of financial terrorism that poses a serious threat not only to the financial system of the country but also to the integrity and sovereignty of a nation....

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SC refuses to interfere with period of validity of cheque

In re Cognizance for Extension of Limitation (Supreme Court) - In re Cognizance for Extension of Limitation (Supreme Court) With reference to the prayer, that the period of validity of a cheque be extended, we find that the said  period has  not  been  prescribed by  any Statute but  it  is  a  period  prescribed by the Reserve Bank of India under Sec...

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HC explains provisions of Section 45(1) of PMLA, 2002 – Offences to be cognizable & non- bailable

Ahilya Devi Wife of Late Birendar Yadav Vs State of Bihar (Patna High Court) - Ahilya Devi Wife of Late Birendar Yadav Vs State of Bihar (Patna High Court) It is eminent that clause (ii) of sub-Section (1) of Section 45 of the Act places two conditions for release of a person accused of an offence under the Act, on bail, if a Public Prosecutor opposes the bail application, nam...

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RBI kept policy repo rate unchanged at 4.0 per cent

Press Release No. 2020-2021/148, Press Release No. 2020-2021/149, Press Release No. 2020-2021/150, - (06/08/2020) - Monetary Policy Committee (MPC) at its meeting today (August 6, 2020) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility...

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No current account for customers having CC/OD account with bank

RBI/2020-21/20 DOR.No.BP.BC/7/21.04.048/2020-21 - (06/08/2020) - The instructions on opening of current accounts by banks have been reviewed and the revised instructions are as under: i. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactio...

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Loans against Gold Ornaments & Jewellery for Non-Agricultural End-uses

RBI/2020-21/19 DoR.No.BP.BC/6/21.04.048/2020-21 - (06/08/2020) - Under the extant guidelines, loans sanctioned by banks against pledge of gold ornaments and jewellery should not exceed 75 per cent of the value of gold ornaments and jewellery....

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Basel III Capital Regulations – Treatment of debt mutual funds/ETFs

RBI/2020-21/18 DOR.No.BP.BC/5/21.04.201/2020-21 - (06/08/2020) - Investment in debt mutual fund/ETF for which full constituent debt details are available shall attract general market risk charge of 9 per cent, as hitherto. Specific risk capital charge for various kinds of exposures would be applied as detailed below:...

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Restructuring of MSME Advances without downgrade in asset classification

RBI/2020-21/17 DOR.No.BP.BC/4/21.04.048/2020-21 - (06/08/2020) - Existing loans to MSMEs classified as 'standard' may be restructured without a downgrade in the asset classification, subject to the following conditions: i. The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower does not exceed ₹25 crore as on March 1, 202...

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Recent Posts in "Fema / RBI"

Framework for resolution of stressed loans on account of Covid-19

The RBI has, vide notification dated 06.08.2020, issued a new framework for resolution of stressed loans caused by Covid-19. I am discussing the relevant portion of this notification in my own words in simple and clear language in three parts. Part-I (General overview of the framework) Existing frameworks for restructuring of loans before...

Read More
Posted Under: Fema / RBI |

RBI barred opening Current Accounts for CC/OD Customers with Banks

In a recent notification, Reserve Bank of India (RBI) on 6th August 2020, instructed all Scheduled Commercial Banks to maintain a discipline on opening of Current Account. The below are highlights from the notification: 1. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/...

Read More
Posted Under: Fema / RBI |

RBI Committee Report on Analysis of QR Code – Interesting facts on digital payments

Report of RBI Committee on the Analysis of QR (Quick Response) Code – Interesting facts on digital payments Buoyed up by the volume of 250 million digital payments using UPI QR on monthly basis, RBI was naturally very enthusiastic to set up an expert committee under the leadership of Prof. D.P. Pathak, Professor Emeritus, IIT, […...

Read More
Posted Under: Fema / RBI |

Foreign Collaboration- General Permission Route

FCGPR is required to be filed with the RBI for issue of shares through Bonus/Right issue by an Indian company to a person resident outside India/body corporate incorporated outside India. Website: https://firms.rbi.org.in/firms/ Due date for filling: Within 30 days from the date of issue of shares TYPE OF REGISTRATION: Entity User Registr...

Read More
Posted Under: Fema / RBI |

RBI kept policy repo rate unchanged at 4.0 per cent

Press Release No. 2020-2021/148, Press Release No. 2020-2021/149, Press Release No. 2020-2021/150, (06/08/2020)

Monetary Policy Committee (MPC) at its meeting today (August 6, 2020) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 pe...

Read More

No current account for customers having CC/OD account with bank

RBI/2020-21/20 DOR.No.BP.BC/7/21.04.048/2020-21 (06/08/2020)

The instructions on opening of current accounts by banks have been reviewed and the revised instructions are as under: i. No bank shall open current accounts for customers who have availed credit facilities in the form of cash credit (CC)/ overdraft (OD) from the banking system and all transactions shall be routed through the CC/OD acc...

Read More

Loans against Gold Ornaments & Jewellery for Non-Agricultural End-uses

RBI/2020-21/19 DoR.No.BP.BC/6/21.04.048/2020-21 (06/08/2020)

Under the extant guidelines, loans sanctioned by banks against pledge of gold ornaments and jewellery should not exceed 75 per cent of the value of gold ornaments and jewellery....

Read More

Basel III Capital Regulations – Treatment of debt mutual funds/ETFs

RBI/2020-21/18 DOR.No.BP.BC/5/21.04.201/2020-21 (06/08/2020)

Investment in debt mutual fund/ETF for which full constituent debt details are available shall attract general market risk charge of 9 per cent, as hitherto. Specific risk capital charge for various kinds of exposures would be applied as detailed below:...

Read More

Restructuring of MSME Advances without downgrade in asset classification

RBI/2020-21/17 DOR.No.BP.BC/4/21.04.048/2020-21 (06/08/2020)

Existing loans to MSMEs classified as 'standard' may be restructured without a downgrade in the asset classification, subject to the following conditions: i. The aggregate exposure, including non-fund based facilities, of banks and NBFCs to the borrower does not exceed ₹25 crore as on March 1, 2020....

Read More

Resolution Framework for COVID-19-related Stress

RBI/2020-21/16 DOR.No.BP.BC/3/21.04.048/2020-21 (06/08/2020)

The economic fallout on account of the Covid-19 pandemic has led to significant financial stress for borrowers across the board. The resultant stress can potentially impact the long-term viability of many firms, otherwise having a good track record under the existing promoters, due to their debt burden becoming disproportionate relative t...

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Latest RBI / FEMA News

Check out all the latest news on RBI together with all the important RBI notifications, RBI circulars, RBI rates including top stories on FEMA Act and FEMA Regulations only at Taxguru.com The RBI (Reserve Bank of India) is India's Apex bank which governs the banking regulations in the country and controls all the monetary policies of the country. It began its operations 1st of April 1935 at the time of British Rule as per the provisions laid down in the Reserve Bank of India Act, 1934. After India's independence on 15th August 1947, the Reserve Bank of India was nationalized on 1st January 1949. Reserve Bank of India is an independent monetary authority that regulates banks and offers important financial services such as controlling inflation, maintaining foreign exchange reserves, and providing monetary policy report. It plays a significant role in developing strategies of the Indian Government. The FEMA Act (Foreign Exchange Management Act) is an Act constituted by the Indian Parliament for consolidating and amending the law related to foreign exchange for facilitating the external trade and payments and also for encouraging orderly maintenance and development of foreign exchange market in the country. This act was passed in the year 1999 during the winter session which replaced the previous Foreign Exchange Regulation Act (FERA). The FEMA Regulations makes offenses with respect to foreign exchange civil offenses.This Act extends and is applicable for the entire nation. FEMA Act allowed a new regime for foreign exchange management that is consistent with the World Trade Organization’s emerging framework. At Taxguru, we provide you with all the RBI latest news, RBI circulars, RBI notifications and all the updates with respect to FEMA Act and FEMA regulations. We keep you posted with all the latest updates on RBI rates and RBI rate charts. At Taxguru, our team ensures we publish all the latest RBI news. Bookmark us to get all the latest news on RBI and FEMA.  

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