FEMA - Corporate Law Reporter

Government Clarification on Biometric Money Dispensing Machines

The banks install ATMs as per their assessed need and Business Plan. Banks also install ATMs with Biometric Authentication after assessing the specific needs and requirement, particularly in areas where the customers might have difficulty in using PIN based authentication. Installation of ATMs is part of the business activity of the banks and no funds… Read More

Minutes of the January 23, 2013 Meeting of the Technical Advisory Committee on Monetary Policy

The thirty first meeting of the Technical Advisory Committee (TAC) on Monetary Policy was held on January 23, 2013 in the run up to the Third Quarter Review of Monetary Policy 2012-13 on January 29, 2013. The main points of discussion in the meeting are set out below. On global economic conditions, most of the… Read More

Cooperative Credit Societies not required to obtain Banking Licence

Cooperative Credit Societies are not required to obtain banking licence from the Reserve Bank of India (RBI) under the provisions of the Banking Regulation Act, 1949. As per the existing instructions of RBI, the Primary Agricultural Cooperative Credit Societies (PACS) are not authorised to collect deposits from the public except members. They offer deposit services… Read More

IRDA to introduce a New Policy to increase Country-wide penetration of Insurance

Penetration of Insurance Policies; IRDA to Come-Out With a New Policy Giving Automatic Clearance to Standard Life Insurance Products and Relax Investment Guidelines to Encourage Flow of Funds into Infrastructure Sector Insurance companies, both life and non-life sector have initiated number of steps to increase insurance penetration across the country. These include, inter alia, opening of… Read More

Report on Cyber Frauds in Banks

The details furnished by Reserve Bank of India (RBI) in respect of Scheduled Commercial Banks pertaining to frauds relating to ATMs/Debit Cards/ Internet Banking and Credit Cards is as under : (Rs. In lakhs) Sl. No. Calendar Year Total cases reported Amount involved 1. 2010 15018 4048.94 2. 2011 9588 3672.19 3. 2012 8322 5266.95… Read More

Guidelines for Licensing of New Banks in the Private Sector

Preamble Over the last two decades, the Reserve Bank of India (RBI) licensed twelve banks in the private sector. This happened in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks,… Read More

RBI releases Guidelines for Licensing of New Banks in the Private Sector

The Reserve Bank of India today released on its website, the Guidelines for Licensing of New Banks in the Private Sector. Key features of the guidelines are: (i) Eligible Promoters: Entities / groups in the private sector, entities in public sector and Non-Banking Financial Companies (NBFCs) shall be eligible to set up a bank through… Read More

RBI issues clarification on the obligations of Authorised Persons under Prevention of Money Laundering Act

KYC norms/AML Standards/CFT Standards Obligation of Authorised Persons under PMLA, 2002 RBI/2012-13/419 A. P. (DIR Series) Circular No. 84 February 22, 2013 To, All Authorised Persons Madam/ Dear Sir, Know Your Customer (KYC) norms/Anti-Money Laundering (AML) Standards/Combating the Financing of Terrorism (CFT) Standards Obligation of Authorised Persons under Prevention of Money Laundering Act (PMLA), 2002… Read More

RBI Guidelines on Saving Fund Account Holder

RBI Guidelines on Saving Fund Account Holder; Banks to Ensure that Adequate Stocks of Cheque Books of 20 / 25 Leaves are Maintained With All the Branches to Meet the Requirements of their Customers Reserve Bank of India (RBI) has issued a Master Circular dated 02.07.2012 on ˜Customer Service in Banks™ which, inter-alia, provides that… Read More

FEMA clarifications with respect to Import of precious and semi precious stones

RBI/2012-13/418 A.P. (DIR Series) Circular No.83 February 20, 2013 To All Category - I Authorised Dealer Banks Madam / Sir, Foreign Exchange Management Act,1999 - Import of precious and semi precious stones- Clarification Attention of Authorised Dealer Category I (AD Category I) banks is invited to the provisions contained in A.P.(DIR Series) Circular No.34 dated… Read More

Implementation of continuous release of credit messages in the National Electronic Funds Transfer

NEFT - Introduction of Continuous Release of Credit Messages RBI/2012-13/417 DPSS. CO. EPPD No. 1400/04.03.01/2012-13 February 18, 2013 The Chairman and Managing Director / Chief Executive Officer of member banks participating in NEFT Madam / Dear Sir, NEFT - Introduction of Continuous Release of Credit Messages Please refer to our circular DPSS. CO. EPPD No.… Read More

Guidelines on Fair Practices Code for NBFCs

RBI/2012-13/416 DNBS.CC.PD.No.320/03.10.01/2012-13 February 18, 2013 To All NBFCs Dear Sir, Guidelines on Fair Practices Code for NBFCs Grievance Redressal Mechanism - Nodal Officer The Reserve Bank vide its circular dated March 26, 2012, issued revised guidelines on Fair Practices Code (FPC) for all NBFCs to be adopted by them while doing lending business. The guidelines… Read More

Modelling Currency Demand in India – DRG Study

DRG Study No. 39 - Modelling Currency Demand in India: An Empirical Study The Reserve Bank of India released today the DRG Study titled, Modelling Currency Demand in India: An Empirical Study. The study is co-authored by Dr. D. M. Nachane, A. B. Chakraborty, A. K. Mitra and Sanjib Bordoloi. The main objective of the… Read More