Banks are free to determine their savings bank deposit interest rate for resident Indians only with immediate effect subject to two conditions. First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs.1 lakh, irrespective of the amount in the account within this limit. Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses, subject to the condition that banks will not discriminate in the matter of interest paid on such deposits, between one deposit and another of similar amount, accepted on the same date, at any of its offices.
It has been brought to the notice of Reserve Bank by Government of India that some persons are taking undue advantage of the said practice of banks of making payment of cheques/drafts/pay orders/banker’s cheques presented within a period of six months from the date of the instrument as these instruments are being circulated in the market like cash for six months
Attention of Authorised Dealers Category – I (AD Category – I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA 20 / 2000 -RB dated May 3, 2000, as amended from time to time. In terms of this notification, a SEBI registered Foreign Institutional Investor (FII) and a Non-Resident Indian (NRI) may invest in securities other than shares or convertible debentures, subject to such terms and conditions mentioned therein and limits as prescribed for the same by the Reserve Bank and the Securities and Exchange Board of India (SEBI) from time to time.
Attention is invited to Trade Notice No. 15 dated 10.08.2011 through which 117 firms were declared defaulters in export of cotton in terms of Policy Circular No. 09 dated 29.12.2010 read with Trade Notice No. 11 of 29.06.2011. In Trade Notice No. 15 dated 10.08.2011 (para 3) it was provided that the exporters whose name appear in the Annexure-1 of this Trade Notice may approach the concerned RC issuing authority within 15 days along with all necessary documents for re-verification of documents. Para 4 of this Trade Notice provided that exporters can get their names removed from the list by paying penalty with the concerned RAs.
1. Web aggregator shall display the particulars of validity of approval obtained from the Authority on its web site. 2. Web aggregator shall state clearly and unequivocally that insurance is the subject matter of solicitation. 3. At no point of time of its functioning, a web aggregator shall have net worth below rupees ten lakhs. 4. At no point of time of its functioning, a web aggregator shall have referral arrangement with any Insurer or act as an insurance broker, corporate agent, microinsurance agent, TPA, Surveyor or a loss assessor.
Please refer to circular No SEBI/CFD/DCR/SAST/ 1/2011/09/23 dated September 23, 2011 wherein inter-alia format for submitting Draft Letter of Offer to SEBI under Regulation 16(1) of the Regulations was specified. In the said format, certain additional instructions have been inserted. Merchant bankers are advised to follow the said updated format while submitting the Draft Letter of Offer to SEBI.
Notification No. 504/2011 – Income Tax Information on tax matters is being sought by field officers of the Income Tax Department from countries/jurisdictions with which India has Double Taxation Avoidance Agreement (DTAA) or Tax Information Exchange Agreement (TIEA) under the relevant ‘Exchange of Information’ Article of DTAA/TIEA through the office of competent authority viz. the Joint Secretary in the Foreign Tax & Tax Division, CBDT. Presently the above information is being sought obtained in a prescribed checklist/ proforma (copy enclosed as Annexure-A). Further in the case of U.K, for obtaining banking information, a separate proforma has been prescribed by U.K tax authorities (copy enclosed as Annexure-B).
It has also been decided to amend para 3.2.6 of Master Circular DBS. FrMC. BC. No. 1/23.04.001/2011-12 dated July 01, 2011 on ‘Frauds – Classification and Reporting’ and henceforth banks need not forward a copy of circular on modus operandi of frauds occurred issued to their branches to Reserve Bank of India, Fraud Monitoring Cell , Department of Banking Supervision, Central office. In place, banks may place the copy of the circular on modus-operandi of fraud issued to their branches before the audit committee of board in its periodical meetings.
In terms of the Comprehensive Marine Fishing Policy, the Ministry of Agriculture, Government of India, issues Letter of Permission (LOP) to wholly owned Indian Enterprises for acquisition of resource-specific fishing Vessels and regulates the operation of these Vessels. Since deep sea fishing involves continuous sailing outside the territorial limit, trans-shipment of catches takes place in the high sea leading to procedural constraints in regulatory reporting requirement viz. the Declaration of Export in terms of Notification No.FEMA.23/2000/RB dated May 3, 2000.
A bank acting as sponsor of IDF–NBFC shall contribute a minimum equity of 30 per cent and maximum equity of 49 per cent of the IDF-NBFC. Since in terms of Section 19 (2) of the Banking Regulation Act, 1949, a bank cannot hold shares in excess of 30 per cent of the paid up share capital of a company, unless it is a subsidiary, Reserve Bank would, based on merits, recommend to the Government to grant exemption from the provisions of Section 19(2) of the Act, ( i.e. under Section 53 of the Act ibid) for investment in excess of 30 per cent and upto 49 per cent in the equity of the IDF-NBFC.
