RBI Circular Notification Press Release and Instructions issued by Reserve bank of India. News and Article on provisions, Rate changes, Policy changes and FAQ
Fema / RBI : The article explains how routing Indian funds through offshore structures and reinvesting them into India may violate FEMA and att...
Fema / RBI : RBI has introduced a concessional forex swap facility allowing eligible PSUs to hedge ECB and OFCB exposures at a fixed 1.50% cost...
Fema / RBI : RBI's KYC framework mandates customer identification, risk categorization, and ongoing monitoring to combat money laundering and t...
Fema / RBI : The article explains RBI’s decision to reduce the export proceeds realization period from 15 months to 9 months and its impact o...
Fema / RBI : Companies receiving foreign investment must comply with reporting, valuation, and approval requirements under FEMA. Failure to do ...
Fema / RBI : RBI has clarified reporting requirements, valuation methods, submission procedures, and entity obligations under the Portfolio Inv...
Fema / RBI : The amendment redefines revenue reserves by excluding provisions for liabilities and depreciation. This ensures clearer classifica...
Fema / RBI : RBI revises the definition of revenue reserves to exclude provisions and liabilities. The change enhances transparency and consist...
Fema / RBI : The Reserve Bank of India has removed a key provision from capital adequacy norms to ensure consistency with updated investment ru...
Fema / RBI : RBI introduces annual IFR assessment instead of continuous compliance for RRBs. The change reduces operational burden while mainta...
Fema / RBI : The key issue was whether cash falls within the definition of property under the PBPT Act. The Tribunal ruled that cash is a tangi...
Fema / RBI : The case examined whether Indian assets could remain seized after foreign asset value was repatriated. The Tribunal ruled that onc...
Fema / RBI : The appellant claimed the disputed funds were received unknowingly and had attempted to return them. The Tribunal granted relief b...
Fema / RBI : The Tribunal held that bank accounts cannot remain frozen merely because the account holder is related to a suspect or under inves...
Fema / RBI : The Tribunal held that retention of seized assets can continue under Section 8(3) when a PMLA prosecution complaint is already pen...
Fema / RBI : RBI has issued draft amendment directions to harmonise governance standards for risk management, compliance, and internal audit fu...
Fema / RBI : RBI has released draft amendment directions on the Standardised Approach for Counterparty Credit Risk after reviewing legal and re...
Fema / RBI : RBI's 2026 amendment directions permit AIFIs to finance listed InvITs but impose stringent conditions relating to valuation, lever...
Fema / RBI : RBI has amended the Small Finance Banks framework to permit lending to listed InvITs while imposing detailed conditions on leverag...
Fema / RBI : The RBI has classified bank exposures to REITs as Commercial Real Estate exposures with specified risk weights. Overseas branch le...
Please refer to our Master Circular dated July 1, 2009 on Lending to Priority Sector, in terms of which finance granted by banks to micro and small enterprises as defined under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, is eligible for classification under priority sector.
The Reserve Bank of India (RBI) has issued Notification no. FEMA 205/2010-RB dated 7 April 2010 (Notification), which has amended the regulation in connection with pricing norms for issue of shares by an Indian company to a person resident outside India. This Notification comes into force from 21 April 2010 (i.e. the date of its publication in the Official Gazette). Given below are the amended pricing norms for rights issue and issue of shares (other than rights issue).
The pricing in regard to issue and transfer of shares to non-residents were governed by the CCI guidelines. Theses have been replaced with the discounted cash flow method which is based on the future earnings. However, RBI has made a distinction in pricing with respect to issue of shares on preferential basis as compared to normal issue as the same would be covered by the RBI guidelines to be prescribed.
Price of shares issued to persons resident outside India under this Schedule, shall not be less than – (a) the price worked out in accordance with the SEBI guidelines, as applicable, where the shares of the company is listed on any recognised stock exchange in India;(b) the fair valuation of shares done by a SEBI registered Category – I Merchant Banker or a Chartered Accountant as per the discounted free cash flow method, where the shares of the company is not listed on any recognised stock exchange in India ; and
In 1992, the Government enacted the Foreign Trade (Development and Regulation) Act, 1992 (‘the Act’) to enable development and regulation of foreign trade by facilitating imports and enhancing exports from India.In order to address certain requirements like bringing in tighter export/ trade control in case of dual use goods and related technologies, ensure conformity with India’s commitments to WTO/ other international agreements and to safeguard the domestic industry, need was felt to amend the Act.
Under the current regulations, an application from a foreign entity to establish BO / LO in India is considered on the basis of the following Basic criteria: If principal business of the foreign entity falls under sectors where 100 percent foreign direct investment (FDI) is permissible under the automatic route.
RBI has eased asset classification infrastructure and project loan guidelines, which in turn will lower the amount of bad loans in the books of banks. Till now, a bank had to classify a project loan as a ‘sub-standard’ asset if commercial operations did not start within six months of the completion of the project, even if the company regularly serviced its loan.
“During the year 2009-10, the following 15 PSBs have exercised managerial autonomy in regard to selection and appointment of SBAs, viz. State Bank of India, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, Punjab & Sind Bank and Andhra Bank.
I banks may allow remittances by Indian companies for overseas direct investment, after ensuring that the Indian company has obtained necessary licence from the Department of Telecommunication, Ministry of Telecommunication & Information Technology, Government of India to establish, install, operate and maintain International Long Distance Services and also by obtaining a certified copy of the Board Resolution approving such investment.
Here’s some good news for savings account holders. The savings account will yield 30 to 40 basis points more to the account holder from Wednesday with the banks shifting to the new method for calculating interest on savings deposits. Following the Reserve Bank guidelines, the banks would be required to calculate interest on savings deposits on a daily basis beginning April 1.
