FEMA - Corporate Law Reporter

External Commercial Borrowings (ECB)

RBI/2011-12/340 A. P. (DIR Series) Circular No.64 To All Category-I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings (ECB) Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000, amended from time… Read More

Clarification on Interest Rates on Small Savings Schemes

Ministry of Finance has clarified that although the rate of interest on small savings schemes will be aligned every year with rates of Government securities of similar maturity, with suitable spread, the rates are fixed and not floating so far as individual investments except PPF are concerned. This is in response to news items appearing… Read More

Implementation of Section 51-A of UAPA, 1967 – Splitting of UNSC 1267 Committee’s list of individuals and entities linked to Al-Qaida and Taliban

RBI/2011-12/338 RPCD.CO.RCB.AML.BC.No 52/07.02.12/2011-12 The Chairmen / CEOs of all State and Central Co-operative Banks Dear Sir, Implementation of Section 51-A of UAPA, 1967-Splitting of UNSC 1267 Committee's list of individuals and entities linked to Al-Qaida and Taliban Please refer to the UN Security Council's 1267 Committee™s Consolidated List of individuals and entities linked to Al-Qaida… Read More

Issue of Acknowledgement of Loan Applications to MSME borrowers

RBI/2011-12/337 RPCD.MSME & NFS. BC. No. 53/06.02.31/2011-12 The Chairman/Managing Director/ Chief Executive Officer All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir Issue of Acknowledgement of Loan Applications to MSME borrowers Please refer to paragraph 2 (b) of Circular DBOD.Leg.No.BC.104/09.07.007/2002-03 dated May 5, 2003 on 'Guidelines on Fair Practices Code for Lenders' wherein banks were advised… Read More

Negotiated Dealing System (NDS) Order Matching (OM) Grant of membership to UCBs

RBI/2011-12/335 UBD. BPD (PCB) No.17/12.05.001/2011-12 Chief Executive Officer All Primary (Urban) Co-operative Banks Dear Sir / Madam, Negotiated Dealing System (NDS) Order Matching (OM) Grant of membership to UCBs Please refer to circular UBD.BPD. (PCB). Cir. No. 24 /12.05.001/2010-11 dated November 16, 2010 in terms of which all licensed UCBs, other than those under all inclusive Directions… Read More

Implementation of Section 51-A of UAPA, 1967 Updates of the UNSCR 1267(1999) and 1989( 2011) Committee’s Al Qaida Sanctions List

RBI/2011-12/336 DBOD. AML. No. 9855 /14.06.001/2011-12 The Chairmen / CEOs of all Scheduled Commercial Banks (Excluding RRBs)/Local Area Banks / All India Financial Institutions Dear Sir, Implementation of Section 51-A of UAPA, 1967 Updates of the UNSCR 1267(1999) and 1989( 2011) Committee's Al Qaida Sanctions List Please refer to our circular DBOD. AML. BC. No. 70 /14.06.001/2011-12 dated… Read More

Revised Capital Adequacy Framework for Off-Balance Sheet Items for NBFCs-Clarification

RBI/2011-12/333 DNBS.CC.PD.No.254/03.10.01/2011-12 December 30, 2011 To All NBFCs (excluding RNBCs) Dear Sir, Revised Capital Adequacy Framework for Off-Balance Sheet Items for NBFCs-Clarification Please refer to the Company Circular No.252 and Notifications No.237 and 238 all dated December 26, 2011 on the captioned subject. 2. In this connection, it is clarified that the Paragraph E in both the above Notifications (No.237 and… Read More

Issuance of Non-Convertible Debentures (NCDs) by NBFCs

RBI/2011-12/332 DNBS.CC.PD.No.255/03.10.01/2011-12 December 30, 2011 To All NBFCs (Including RNBCs) Dear Sir, Issuance of Non-Convertible Debentures (NCDs) It has come to the notice of the Reserve Bank that some NBFCs have raised funds under private placement by issuing NCDs of maturity less than 90 days. This is in clear violation of Issuance of Non-Convertible Debentures… Read More

Implementation of Basel III Capital Regulations in India Draft Guidelines

RBI/2011-12/331 DBOD.No.BP.BC. 71/ 21.06.201 / 2011-12 December 30, 2011 The Chairman and Managing Directors/ Chief Executives Officers of All Scheduled Commercial Banks (Excluding Local Area Banks and Regional Rural Banks) Madam / Dear Sir, Implementation of Basel III Capital Regulations in India Draft Guidelines As you are aware, the Basel Committee on Banking Supervision (BCBS)… Read More

KYC Norms/AML Standards/CFT/Obligation of Banks under PMLA 2002 Assessment and Monitoring of Risk

RBI/2011-12/327 RPCD.CO.RCB. AML.BC. No.50/07.40.00/2011-12 December 30, 2011 The Chairmen / Chief Executive Officers All State and Central Co-operative Banks Dear Sir, 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- Assessment and Monitoring of Risk Please refer to our circular RPCD.AML.BC.No.80/07.40.00/2004-05 dated… Read More

External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) – hedging facilities for non-resident entities

RBI/2011-12/326 A. P. (DIR Series) Circular No.63 December 29, 2011 To All Category-I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) - hedging facilities for non-resident entities Attention of Authorized Dealers Category I (AD Category I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts)… Read More

Qualified Foreign Investors (QFIS) Allowed to Directly Invest in Indian Equity Market; Scheme to Help Increase the Depth of the Indian Market and in Combating Volatility Beside Increasing Foreign Inflows into the County

In a major policy decision, the Central Government has decided to allow Qualified Foreign Investors (QFIs) to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market. QFIs have been already permitted to have direct access to Indian Mutual Funds schemes… Read More

Banks’ Exposure to Capital Market – Issue of Irrevocable Payment Commitments (IPCs)

RBI/2011-12/322 DBOD.Dir.BC. 68 /13.03.00/2011-12 December 27, 2011 All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam Banks' Exposure to Capital Market - Issue of Irrevocable Payment Commitments (IPCs) Please refer to our circulars No.DBOD.Dir.BC.46/13.03.00/2010-11 dated September 30, 2010, DBOD.Dir.BC.52/13.03.00/2010-11dated October 28, 2010 and DBOD.Dir.BC.43/13.03.00/2011-12 dated October 31, 2011 wherein banks issuing Irrevocable Payment Commitments (IPCs) to various Stock Exchanges on… Read More