Fema / RBI

Reduction In REPO Rate Vis-a-Vis Ultimate Benefit To Borrowers

The Reserve Bank of India (RBI) did another rate in repo rate by 40 basis point to 4%. Which ideally should be transmitted in the form of lower cost of finance (ROI) to borrowers. However the same is far from reality. The Reserve Bank of India introduced the MCLR methodology for fixing interest rate from […]...

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Path of Diminishing Marginal Utility: RBI Policy May 2020

Suyash Choudhary, Head – Fixed Income, IDFC AMC The monetary policy committee (MPC), reflecting the sign of times, had yet another out of policy meeting and delivered a 40 bps repo rate cut with commensurate changes to the rest of the rates in the corridor. In its assessment, the committee noted the further deterioration in […]...

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Overseas Direct Investment- Basic concepts

In this article, we have tried to focus on the basic concepts that will enlighten about achieving the technical know- how and the provisions before making such Investment....

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Submission of Financial Information to Information Utility

NeSL is India’s first Information Utility and is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016 (IBC). The Company has been set up by leading Banks and Public Institutions and is incorporated as a Union Government Company....

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A Suggestion of A Product to Increase Liquidity In Banks

It is well known that all banks baring private ones always insist for capital infusion by Government which passes negative results on public as Government always conveys banks to raise capital on their own. Due to above, don’t you think that in other words, banks convey that their management is not competitive enough to garner [&hel...

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Highlights of RBI Governor’s announcements dated 22.05.2020

RBI extends the three-month moratorium The loan moratorium will be extended till August 31 2020. This makes it a six month moratorium Lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021...

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11 Key Highlights of RBI Press Conference dt. 22.05.2020; Loan moratorium extended 31 August, 2020

RBI Governor Shaktikanta Das addressed the media at 10 am today post  Finance Minister gave details of the Rs 20 lakh crore economic relief package to help the economy recover from the coronavirus pandemic. Key Highlights: 1. Repo rate reduced by 40 bps to 4% 2. Private consumption impacted most by COVID-19 3. Food inflation […]...

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Cash Withdrawal Facility at Point of Sale (PoS) Terminals- FAQs

Q.1 Which types of cards are allowed for withdrawing cash at PoS terminals? Ans. Under the facility of cash withdrawal at PoS terminals, cardholders can withdraw cash using their debit cards and open system prepaid cards issued by banks in India. However, credit cards cannot be used under this facility. Cash can also be withdrawn at [&he...

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COVID19 Regulatory Package – Asset Classification & Provisioning Clarification

We advise that as per the circular dated April 17, 2020 on asset classification and provisioning, in respect of all accounts classified as standard as on February 29, 2020, even if overdue, the moratorium period, wherever granted, shall be excluded by the lending institutions from the number of days past-due for the purpose of asset class...

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Relax FEMA compliance due to COVID-19 pandemic: ICSI

ICSI made a representation to RBI GOvernor requesting Relaxation from compliance with provisions of Foreign Exchange Management Act, 1999 (FEMA) due to the COVID-19 pandemic. Text of the Same is as follows:- Institute of Company Secretaries of India ICSI:PFP: 2020 April 16, 2020 Shri Shaktikanta Das Governor Reserve Bank of India Central ...

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SARFAESI Act applicable to even Cooperative Banks: SC

Pandurang Ganpati Chaugule Vs Vishwasrao Patil Murgud Sahakari (Supreme Court of India) - Pandurang Ganpati Chaugule Vs Vishwasrao Patil Murgud Sahakari (Supreme Court) (1) (a) The co-operative banks registered under the State legislation and multi-State level co-operative societies registered under the MSCS Act, 2002 with respect to ‘banking’ are governed by the legislation ...

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Covid-19: HC restrains bank from taking coercive action for default in factoring facility

Eastman Auto & Power Limited Vs RBI (Delhi High Court) - The object of issuing notifications/circulars dated 27.03.2020 and 17.04.2020 was to provide financial relief in repayment due to COVID-19 to the parties who have availed the term loans and working capital facilities but this relief is not extended towards factoring facilities....

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SC instructs RBI to ensure implementation of RBI Circular dated 27.03.2020

Kamal Kumar Kalia Vs Union of India (Supreme Court) - Learned counsel for the petitioner submits that  Circular dated 27.03.2020 issued by the Reserve Bank of India has not been implemented by the banks. Hon'ble Supreme Court directs the Reserve Bank of India to ensure implementation of the Circular dated 27.03.2020 in its letter and spirit....

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Court’s altruistic approach in granting Moratorium for NPA

Transcon Skycity Private Limited Vs. ICICI Bank (Bombay High Court) - The period of the moratorium during lockdown will not be reckoned by ICICI Bank for the purposes of computation of the 90-day NPA declaration period. Further, if the lockdown extends beyond 31st May 2020, then these days will be deferred accordingly, irrespective of whether the moratorium itself is ...

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Extension of Moratorium – New flavour of the season

Shakuntala Educational & Welfare Society Vs Punjab & Sind Bank (Delhi High Court) - Hon’ble Court opined that irrespective of the question, as to whether the moratorium as envisaged by RBI would be applicable to the petitioner qua the instalments, any classification of the petitioner’s accounts as NPA in present situation would certainly cause a grave and irreparable loss to th...

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Cessation of 7.75 percent Savings (Taxable) Bonds, 2018 wef 28.05.2020

F. No. 4(28)-B(W&M)/2017 - (27/05/2020) - Government of India (GoI), vide Notification F.No. 4(28)-(W&M)/2017 dated May 27, 2020, hereby announces that 7.75% Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of banking business on 28th of May, 2020....

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RBI Increases Exposure Limit for Group of Connected Counterparties

RBI/2019-20/243 DOR.No.BP.BC.70/21.01.003/2019-20 - (23/05/2020) - With a view to facilitate greater flow of resources to corporates, it has been decided, as a one-time measure, to increase a bank’s exposure to a group of connected counterparties from 25% to 30% of the eligible capital base of the bank....

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Resolution Timelines under Prudential Framework on Resolution of Stressed Assets- Exclusion of Period from 01.03.2020 to 31.08.2020

RBI/2019-20/245 DOR.No.BP.BC.72/21.04.048/2019-20 - (23/05/2020) - In respect of accounts which were within the Review Period as on March 1, 2020, the period from March 1, 2020 to August 31, 2020 shall be excluded from the calculation of the 30-day timeline for the Review Period. In respect of all such accounts, the residual Review Period shall resume from Septembe...

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COVID-19 – Regulatory Package by RBI

RBI/2019-20/244 DOR.No.BP.BC.71/21.04.048/2019-20 - (23/05/2020) - Lending institutions are permitted, at their discretion, to convert the accumulated interest for the deferment period up to August 31, 2020, into a funded interest term loan (FITL) which shall be repayable not later than March 31, 2021....

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Maximum permissible period of pre & post-shipment export credit extended

RBI/2019-20/246 DOR.DIR.BC.No.73/04.02.002/2019-20 - (23/05/2020) - It has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months, for disbursements made upto July 31, 2020....

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Recent Posts in "Fema / RBI"

Cessation of 7.75 percent Savings (Taxable) Bonds, 2018 wef 28.05.2020

F. No. 4(28)-B(W&M)/2017 (27/05/2020)

Government of India (GoI), vide Notification F.No. 4(28)-(W&M)/2017 dated May 27, 2020, hereby announces that 7.75% Savings (Taxable) Bonds, 2018 shall cease for subscription with effect from the close of banking business on 28th of May, 2020....

Read More

Reduction In REPO Rate Vis-a-Vis Ultimate Benefit To Borrowers

The Reserve Bank of India (RBI) did another rate in repo rate by 40 basis point to 4%. Which ideally should be transmitted in the form of lower cost of finance (ROI) to borrowers. However the same is far from reality. The Reserve Bank of India introduced the MCLR methodology for fixing interest rate from […]...

Read More
Posted Under: Fema / RBI |

SARFAESI Act applicable to even Cooperative Banks: SC

Pandurang Ganpati Chaugule Vs Vishwasrao Patil Murgud Sahakari (Supreme Court of India)

Pandurang Ganpati Chaugule Vs Vishwasrao Patil Murgud Sahakari (Supreme Court) (1) (a) The co-operative banks registered under the State legislation and multi-State level co-operative societies registered under the MSCS Act, 2002 with respect to ‘banking’ are governed by the legislation relatable to Entry 45 of List I of the S...

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Highlights of RBI Governor’s announcements dated 22.05.2020

RBI extends the three-month moratorium The loan moratorium will be extended till August 31 2020. This makes it a six month moratorium Lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021...

Read More
Posted Under: Fema / RBI |

Path of Diminishing Marginal Utility: RBI Policy May 2020

Suyash Choudhary, Head – Fixed Income, IDFC AMC The monetary policy committee (MPC), reflecting the sign of times, had yet another out of policy meeting and delivered a 40 bps repo rate cut with commensurate changes to the rest of the rates in the corridor. In its assessment, the committee noted the further deterioration in […]...

Read More
Posted Under: Fema / RBI |

RBI Increases Exposure Limit for Group of Connected Counterparties

RBI/2019-20/243 DOR.No.BP.BC.70/21.01.003/2019-20 (23/05/2020)

With a view to facilitate greater flow of resources to corporates, it has been decided, as a one-time measure, to increase a bank’s exposure to a group of connected counterparties from 25% to 30% of the eligible capital base of the bank....

Read More

Resolution Timelines under Prudential Framework on Resolution of Stressed Assets- Exclusion of Period from 01.03.2020 to 31.08.2020

RBI/2019-20/245 DOR.No.BP.BC.72/21.04.048/2019-20 (23/05/2020)

In respect of accounts which were within the Review Period as on March 1, 2020, the period from March 1, 2020 to August 31, 2020 shall be excluded from the calculation of the 30-day timeline for the Review Period. In respect of all such accounts, the residual Review Period shall resume from September 1, 2020, upon expiry of which the lend...

Read More

COVID-19 – Regulatory Package by RBI

RBI/2019-20/244 DOR.No.BP.BC.71/21.04.048/2019-20 (23/05/2020)

Lending institutions are permitted, at their discretion, to convert the accumulated interest for the deferment period up to August 31, 2020, into a funded interest term loan (FITL) which shall be repayable not later than March 31, 2021....

Read More

Maximum permissible period of pre & post-shipment export credit extended

RBI/2019-20/246 DOR.DIR.BC.No.73/04.02.002/2019-20 (23/05/2020)

It has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months, for disbursements made upto July 31, 2020....

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RBI notifications on Change in Policy Rates wef 22.05.2020

RBI/2019-20/240 DOR.No.Ret.BC.74/12.01.001/2019-20, RBI/2019-20/238 REF.No.MPD.BC.391/07.01.279/2019-20, RBI/2019-20/236 FMOD.MAOG.No.143/01.18.001/2019-20, RBI/2019-20/237 FMOD.MAOG.No.142/01.01.001/2019-20 (22/05/2020)

As announced in the Monetary Policy Statement 2020-21 dated May 22, 2020, the Bank Rate is revised downwards by 40 basis points from 4.65 per cent to 4.25 per cent with immediate effect....

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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.