FEMA - Corporate Law Reporter

Pledge of shares for Business Purposes

BI/2010-11/497 A. P. (DIR Series) Circular No. 57 dated 02/05/2011 To All Authorised Dealer Category - I banks Madam / Sir, Pledge of shares for business purposes Under the extant FEMA regulations, powers have been delegated to the Authorised Dealer Category I (AD Category I) banks to convey ˜no objection™ to the resident eligible borrowers… Read More

KYC, AML and CFT norms for NBFCs

CLR Note: The NBFCs/ RBFCs are in recent being recognised as complimentary to the banking sector, the reason being , is their functioning like accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the various… Read More

Opening of Escrow Accounts for FDI transactions

RBI/2010-11/ 498 A. P. (DIR Series) Circular No. 58 May 02, 2011 To All Category-I Authorised Dealer Banks Madam / Sir, Opening of Escrow Accounts for FDI transactions Attention of the Authorised Dealer Category I (AD Category - I) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person… Read More

Repo, Reverse Repo rates, CRR hiked by RBI

On Tuesday, April 20, the short term lending rates have been hiked by Reserve Bank of India along with borrowing rates by 25 basis points each. In order to check inflation, the RBI has also hiked the portion of money banks deposit with it by 25 basis points. RBI on Tuesday raised the repo, reverse repo rates to… Read More

Issue of Irrevocable Payment Commitment (IPCs) to Stock Exchanges

Issue of Irrevocable Payment Commitment (IPCs) to Stock Exchanges on behalf of Mutual Funds (MFs) and Foreign Institutional Investors (FIIs) CLR Note: The Foreign Institutional Investors can purchase shares or convertible debentures which are issued by the Indian Company under the Portfolio Scheme and it also allowed to Custodian Bank, on behalf of FII clients for purchase… Read More

RBI guidelines for Banks to mitigate the risks of use of Information Technology in Banking Operations

RBI/2010-11/494 DBS.CO.ITC.BC.No. 6/31.02.008/2010-11 April 29, 2011 The Chairman / Chief Executives of All Scheduled Commercial Banks (excluding RRBs) Dear Sir / Madam, Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds- Implementation of recommendations As you are aware, following the announcement in the April 2010 Monetary Policy Statement, the Working Group… Read More

Limit of USD 5 bn increased to USD 25 bn by RBI for investments in bonds and Non Convertible Debenture by FIIs

RBI/2010-11/492 A.P. (DIR Series) Circular No. 55 To, All Category I Authorised Dealer banks Madam / Sir, Foreign investments in India by SEBI registered FIIs in other securities Attention of Authorised Dealers Category I (AD Category - I) banks is invited to paragraph 1 of Schedule 5 to the Foreign Exchange Management (Transfer or Issue… Read More

RBI liberalises the norms for Advance Remittances made by Banks for Imports

RBI/2010-11/493 A.P. (DIR Series) Circular No. 56 April 29, 2011 To All Authorised Dealers in Foreign Exchange Madam/ Sir Foreign Exchange Management Act, 1999- Advance Remittance for Import of Goods - Liberalisation Attention of Authorised Dealer Category I (AD Category-I) banks is invited to A. P. (DIR Series) Circular No.106 dated June 19, 2003, A. P.… Read More

Notification on SARFAESI (Central Registry) Rules 2011

CLR Note:- The Central Registry constituted under SARFAESI Act, 2002, vide announcement made by the Finance Minister in his Budget Speech 2011-12, has already been effective since 31st March 2011. The Central Registry will definitely help to to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. RBI /2010-11/484… Read More

Guidelines on Advanced Measurement Approach (AMA) for computation of Operational Risk under BASEL II norms

Implementation of the Advanced Measurement Approach (AMA) for Calculation of Capital Charge for Operational Risk RBI/2010-11/488 DBOD.No.BP.BC. 88 /21.06.014/2010-11 The Chairman and Managing Directors / Chief Executive Officers of All Commercial Banks (Excluding Regional Rural Banks and Local Area Banks) Dear Sir, Implementation of the Advanced Measurement Approach (AMA) for Calculation of Capital Charge… Read More

Deregulating the Saving Bank Deposit Rate- Good or Bad, Decide

CLR Note: The Reserve Bank of India has released a Paper on Deregulation of Savings Bank Deposit Rate, asking for feedback from the public based on the questions specified below, within May 20th, 2011. As indicated in the Second Quarter Review of Monetary Policy 2010-11 on November 2, 2010, the Reserve Bank of India has today released… Read More

Writ Petition will be not be maintainable against the award of RBI Ombudsman

Recently, in Kanaiyalal Lalchand Sachdev & Ors. Vs. State of Maharashtra & Ors. {(2011) 2 SCC 782; decided on 07.02.2011} hon™ble Supreme Court has observed as follows (in para 21): 21. In our opinion, therefore, the High Court rightly dismissed the petition on the ground that an efficacious remedy was available to the appellants under… Read More

Notification by RBI pertaining to Opening of Small Accounts

RBI/2010-11/487 RPCD.CO.RCB.AML.BC. No.63/07.40.00/2010-11 April 26, 2011 The Chairmen / CEOs of All State and Central Co-operative Banks Dear Sir, Opening of "Small Account" Please find enclosed a copy of the Government of India, Notification No. 14/2010/F.No.6/2/2007-E.S. dated December 16, 2010, amending the Prevention of Money-laundering (Maintenance of Records of the Nature and Value of Transactions, the… Read More