FEMA - Corporate Law Reporter

GoI approvals on FDI proposals based on FIBP recommendations in January 2013

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on January 21, 2013, the Government has approved nine (9) Proposals of Foreign Direct Investment amounting to Rs.1140.14crore approximately. In addition, one proposal viz., M/s Ingka Holding Overseas B.V., amounting to Rs.10,500 crore, has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA). Following are the details of the proposals considered in the Foreign Investment Promotion Board (FIPB) in its Meetingheld on 21.01.2013 : … Read More

Security and Risk Mitigation Measures for Electronic Payment Transactions

RBI/2012-13/424 DPSS (CO) PD No.1462/02.14.003 / 2012-13 February 28, 2013 The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks/ Authorised Card Payment Networks Madam / Dear Sir, Security and Risk Mitigation Measures for Electronic Payment Transactions… Read More

RBI issues instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-resident Exchange Houses

RBI/2012-13/423 A. P. (DIR Series) Circular No. 85 February 28, 2013 To, All Authorised Dealer Category - I Banks Madam / Sir, Memorandum of Instructions for Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-resident Exchange Houses Attention of Authorised Dealer Category I (AD Category I) banks is invited to the A.P. (DIR… Read More

Parity in Taxation between IDF Mutual Fund and IDF-NBFC

The Finance Bill 2013 proposes to provide parity in taxation between an IDF-Mutual Fund that distributes income and an IDF-NBFC that pays interest when the payment is made to a non-resident. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that the rate of tax on such distributed income… Read More

RBI asks NBFCs to review KYC policies with clarifications on the PMLA guidelines

RBI/2012-13/422 DNBS (PD).CC. No 321 /03.10.42 /2012-13 February 27, 2013 All Non Banking Financial Companies / Residuary Non Banking Companies Dear Sir/Madam, Know Your Customer (KYC) norms /Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002 Please refer to para 2.II (Annex VI para 3)… Read More

Change in SLBC responsibility for Jharkhand from Allahabad bank to Bank of India

RBI/2012-13/421 RPCD.CO.LBS.BC. No. 65 /02.13.001/2012-13 February 27, 2013 The Chairmen and Managing Directors SLBC Convenor banks Dear Sir, Change in SLBC responsibility for Jharkhand from ALLAHABAD BANK to BANK OF INDIA It has been decided to change the responsibility of State Level Bankers' Committee (SLBC) Convenor bank for the State of Jharkhand from Allahabad Bank… Read More

Restriction on Issue of Cheques from Saving Bank Accounts

Reserve Bank of India (RBI) has issued a Master Circular dated 02.07.2012 on ˜Customer Service in Banks™ which, inter-alia, provides that banks may issue cheque books with larger number of leaves (20 or 25) if a customer demands the same and also ensure that adequate stocks of such cheque books (20 / 25 leaves) are… Read More

RBI advises all UCBs to complete the process of risk categorization and compiling of all existing customers by March-end 2013

KYC Norms /AML Measures - CFT/ Obligations of Banks PMLA, 2002 RBI/2012-13/420 UBD CO PCB Cir.No.37/14.01.062/2012-13 February 25, 2013 The Chief Executive Officer All Primary (Urban) Co-operative Banks Dear Sir, Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Measures - Combating of Financing of Terrorism (CFT) / Obligations of Banks under Prevention of Money… Read More

Concept of Financial Super Market started by a Public Sector Bank

State Bank of Bikaner & Jaipur (SBBJ), a Public Sector Bank introduced Financial Super Market concept in Jaipur on 08.08.2012. SBBJ Financial Super market branch at Jaipur primarily sell and service products of its Channel partners like SBI Life, Mutual Fund, SBI General and SBI Card, both across the counters and through electronic means. The… Read More

Differential interest Rates on Home Loans

Interest rates on advances have been de-regulated by the Reserve Bank of India (RBI). The banks determined their actual lending rates on loans and advances with reference to their Base Rate and by including such other customer specific changes as considered appropriate. A statement is annexed. As per the guidelines of RBI, Base Rate system… Read More

Report on complaints regarding Direct Selling Agents/Recovery Agents received against the Scheduled Commercial Banks by Banking Ombudsman

The details of complaints regarding Direct Selling Agents/Recovery Agents received against the Scheduled Commercial Banks (SCBs) by the Offices of the Banking Ombudsman and disposed off during the last three years are as under: Bank Group 2009-10 2010-11 2011-12 2012-13 (July -Jan) SBI & Associates 306 62 87 44 Nationalised banks 351 58 58 29 Private Sector Banks 669 928 223 111… Read More

Report on Bank Loans to Self Help Groups

The number and amount of loans sanctioned by the banks to Self Help Groups (SHGs) during the last three years and the current year(upto January, 2013), year-wise and State-wise as reported by NABARD are given in Annexure-I. In order to provide flexibility to SHGs to deposit their available surplus savings with the bank and draw… Read More

RBI working group reviews guidelines on restructuring of Corporate Loans for NPAs

After the Second Quarter Review of Monetary Policy 2011-12 by the Reserve Bank of India (RBI), a Working Group (WG) was constituted under the Chairmanship of Shri B. Mahapatra, Executive Director, RBI to review the existing prudential guidelines on restructuring of advances by banks/financial institutions and suggest revisions taking into account the best international practices… Read More