FEMA - Corporate Law Reporter

Enhancement in gratuity limits – Prudential Regulatory Treatment

RBI/2010-11/527 RPCD.CO RRB.BC.No. 70 /03.05.33/2010-11 May 16, 2011 The Chairmen All Regional Rural Banks (RRBs) Dear Sir, Enhancement in gratuity limits - Prudential Regulatory Treatment Consequent upon the enhancement in gratuity limits following the amendment to Payment of Gratuity Act 1972, RRBs have approached us for the amortisation of the enhanced expenditure resulting therefrom. 2.… Read More

Quarterly Report on Debt Management for the Quarter Jan-March 2011 Released

Government has released the Quarterly Report on debt management pertaining to the quarter Jan-March 2011, here today. The Middle Office (MO), Department of Economic Affairs in the Ministry of Finance has been bringing out the Quarterly Report on debt management since September 2010. This Report for the quarter Jan-March 2011 is the fourth such report in… Read More

Committee to Review Deemed Export Invites Suggestions from Stakeholders

The first meeting of the Committee to review the existing policy on Deemed Export was held this week. The meeting was attended by Dr. Alok Sheel, JS (MR) Department of Economic Affairs, Shri M.C. Singhi, Senior Economic Advisor, Department of Industrial Policy and Promotion, Dr. Arbind Prasad, Senior Advisor Planning Commission, Shri Chandan Sinha, Regional… Read More

List of Terrorist Individuals /Organisations notified by RBI

RBI/2010-11/523 UBD.CO.BPD (PCB) Cir.No.48/14.01.062/2010-11 May 11, 2011 The Chief Executive Officer of All Primary (Urban) Co-operative Banks Dear Sir, List of Terrorist Individuals /Organisations under UNSCR 1267 (1999) and 1822 (2008) on Taliban/Al-Qaida Organisation Please refer to our circular UBD.CO. BPD (PCB).Cir.No.44/14.01.062/2010-11 dated May 2, 2011. We have since received from Government of India (Ministry of… Read More

National Disaster Management Guidelines on Ensuring Disaster Resilient construction of Buildings and Infrastructure

RBI/2010-11/525 DBOD.Dir.BC.No.93 /08.12.14/ 2010-11 May 12, 2011 All Scheduled Commercial Banks (excluding RRBs) Dear Sir/ Madam, National Disaster Management Guidelines on Ensuring Disaster Resilient construction of Buildings and Infrastructure The National Disaster Management Authority (NDMA), Government of India has formulated guidelines on ensuring disaster resilient construction of buildings and infrastructure financed through banks and other… Read More

Finance Ministry may take up 42 FDI Proposals during next week

The Finance Ministry will take up 42 foreign direct investment (FDI) proposals, including that of BNP Paribas, Tata Steel and PTC India Financial Services, next week. The Foreign Investment Promotion Board (FIPB) headed by Economic Affairs Secretary R Gopalan is scheduled to meet on May 20 here. As per the Finance Ministry, 15 proposals are… Read More

RBI sets up Committee for streamlining Foreign Exchange

The Reserve Bank today set up a committee for streamlining foreign exchange transactions and also invited comments from public and other stakeholders for improving facilities pertaining to investments and repatriation of funds. The Reserve Bank, while referring to the Monetary Policy Statement for 2011-12, said in a statement that the Committee chaired by former RBI… Read More

Regulatory and Audit Compliance responsibility for Foreign banks in India

CLR Note: RBI notifies Regulatory and Audit compliance responsibility for foreign banks operating in India by making the CEO responsible for the same. RBI/2010-11/520 ; May 11, 2011 The Chief Executives Officers All foreign banks operating in India Regulatory and Audit Compliance It is observed that Indian operations of foreign banks functioning in India as branches… Read More

RBI penalises cooperative banks for violations of KYC and AML norms

The Reserve Bank has imposed a monetary penalty of Rs 1 lakh each on two cooperative lenders -- Randheja Commercial Cooperative Bank and Gandevi People's Cooperative Bank -- for violation of banking norms. The Gandhinagar-based Randheja Commercial Co-operative Bank has been penalised for violation of the RBI instructions on implementation of Know Your Customer (KYC)… Read More

RBI – Auction of Government of India Dated Securities

Government of India Offered for sell of Dated Securities Ref.No.IDMD / 4860 /08.02.033/2010-11 May 9, 2011 All Scheduled Commercial Banks / All State Co-operative Banks/All Scheduled Primary (Urban) Co-operative Banks /All Financial Institutions/ All Primary Dealers Dear Sirs, Auction of Government of India Dated Securities Government of India have offered to sell (re-issue) of (a)… Read More

RBI announces Marginal Standing Facility (MSF) Scheme w.e.f. 9th May

RBI- Marginal Standing Facility Scheme w.e.f. 9/05/2011 RBI/2010-11/515 FMD. No.59/01.18.001/2010-11 May 9, 2011 All Scheduled Commercial Banks Dear Sir, Marginal Standing Facility Scheme As announced in the Monetary Policy for the year 2011-12, a new Marginal Standing Facility (MSF) is being introduced with effect from May 9, 2011. The Scheme will be operationalized on the lines… Read More

Maintenance of Statutory Liquidity Ratio (SLR)

CLR Note:- Some assets and securities were announced for the purpose of valuation of Statutory Liquidity Ration(SLR). However, The securities (including margin) shall not be treated as an eligible asset ,if acquired under the Reserve Bank- Liquidity Adjustment Facility (LAF). RBI/2010-11/516 Ref. DBOD No. Ret. BC. 92 /12.02.001/2010-11 May 09, 2011 All Scheduled Commercial Banks (Excluding… Read More

RBI revises the Housing Loan limit under Priority sector

CLR Note: The Reserve Bank of India passed a notification on Monday, 9th May, 2011, with regard to the increase in the limit for the housing loan under the priority sector from a limit of Rs.20 lakh to Rs. 25 lakh, irrespective of the location, to individuals for purchase/construction of a dwelling unit per family,excluding… Read More