FEMA - Corporate Law Reporter

Challenges to Central Banking in the Context of Financial Crisis – RBI Publication

The Reserve Bank of India today released the Volume for the First International Research Conference (FIRC) on ˜Challenges to Central Banking in the Context of Financial Crisis™. The Volume, edited by Dr. Subir Gokarn, Deputy Governor, brings together the papers and proceedings of the FIRC and gives a flavour of the issues and discussions on… Read More

Findings of Forensic Scrutiny- Guidelines for prevention of frauds

RBI/2010-11/555; Dated May 31, 2011 The Chairmen & Chief Executive Officers of All Scheduled Commercial Banks (excluding RRBs) and All India Select Financial Institutions In the recent past, we had conducted forensic scrutinies at certain identified banks due to occurrence of large value frauds or sharp increase in number of frauds at such banks. The… Read More

Internal Vigilance in Private Sector/foreign Banks

RBI/2010-11/554; dated May 26, 2011 CLR Note: The Reseve Bank of India has issued detailed guidelines for the internal vigilance in the private sector and foreign banks so that all issues arising out of lapses in the functioning of the private sector and foreign banks especially relating to corruption, malpractices, frauds etc can be addressed… Read More

Singapore Exchange to clear Asian FX forwards by Sep

The Singapore Exchange (SGX) today said it will start clearing Asian foreign exchange forwards (non-deliverable) by September. The clearing of Asian foreign exchange (FX) forwards would include the non-deliverable currencies traded in the region, namely the Chinese yuan, Indonesian rupiah, Indian rupee, Korean won, Malaysian ringgit, Philippine peso and Taiwanese dollar. "A world's first, this… Read More

Mines Ministry proposes raising funds abroad for Exploration Cos

Concerned over inadequate fund flows into the mining sector, the Mines Ministry has proposed allowing domestic exploration firms to raise funds abroad by listing equity-linked securities. The Ministry of Mines has also suggested facilitating venture capital investment and listing of early stage exploration companies. "Venture capital flows to be facilitated by bringing concepts of flow… Read More

FDI in Services declines in 2010-11

Foreign direct investment (FDI) in India's services sector, which contribute over 50 per cent in the country's economic growth, declined by 22.5 per cent to USD 3.4 billion in 2010-11, according to the industry ministry's latest data. The services sector (financial and non-financial services) had attracted FDI worth USD 4.39 billion during 2009-10. According to… Read More

Electronic Benefit Transfer (EBT) scheme & Financial Inclusion Plan (FIP)

RBI/2010-11/550 RPCD.CO.LBS.BC.No. 74/02.19.010/2010-11 May 30, 2011 The Chairmen/Chairman and Managing Director, All SLBC Convenor banks Dear Sir/Madam, Resolution of issues regarding allocation of villages under Electronic Benefit Transfer (EBT) scheme and roadmap for providing banking services in villages with population above 2000 under Financial Inclusion Plan (FIP) It has been brought to our notice that… Read More

FM clears RBIs draft guidelines on new bank licenses; but with a rider

The finance ministry has cleared the Reserve Bank of India's draft guidelines on new bank licences with a rider that the existing 74% cap on foreign direct investment be retained. The central bank, which had proposed capping FDI in new banks at 49% in the first 10 years, is likely to make the guidelines public… Read More

Review of Guidelines on entry of NBFCs into Insurance Business

RBI/2010-11/540 May 27, 2011 CLR Note: The Non Banking Financial Companies registered with RBI will now be permitted to set up a joint venture company for undertaking insurance business with risk participation, subject to safeguards. The maximum equity contribution such an NBFC can hold in a joint venture company is 50 per cent of the… Read More

RBI penalises Bank for non adherence to AML guidelines

The Reserve Bank of India has imposed a monetary penalty of Rupees one lakh on The Unava Nagarik Sahakari Bank Ltd., Unava, Dist. Mehsana, Gujarat in exercise of powers vested in it under the provisions of Section 46 read with Section 47A of the Banking Regulation Act, 1949 (AACS) for violation of Reserve Bank of… Read More

RBI asks banks to reimburse failed ATM transactions in 7 days

The Reserve Bank today directed banks to reimburse customers for amounts wrongfully debited from their accounts in failed ATM transactions within seven days of an account holder's complaint or else pay a Rs 100 per day compensation. "The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working… Read More

RBI liberalises Overseas Direct Investments Regulations

In order to encourage Indian companies to expand their global footprint and showcase entrepreneurial skills, the Reserve Bank today relaxed norms for overseas direct investments. The regulations relating to overseas direct investments, RBI said in a circular, are being liberalised "with a view to providing more operational flexibility to Indian corporates having investments abroad". The… Read More

Indian Retail Sector – Primitive

Describing the Indian retail sector as "primitive", the panel on inflation today suggested that foreign investments in the multi-brand retail should be allowed at the earliest to check rising prices. "India's retail sector continues to be primitive...Its time for India to allow FDI in multi-product retail and IMG recommends that the government consider this at… Read More