FEMA - Corporate Law Reporter

Penalty imposed by RBI on 19 Commercial Banks for non compliance of Derivatives instructions

Press Release : 2010-2011/1555 dated 26th April 2011 The Reserve Bank of India has imposed penalties on 19 commercial banks in exercise of the powers vested with it under the provisions of Section 47A(1)(b) read with Section 46(4)(i) of the Banking Regulation Act, 1949. The penalties have been imposed on these banks for contravention of… Read More

Ways and Means (WMA) Limits fixed for the FY 2011-12

Press Release : 2010-2011/1542 CLR Note:- The Reserve Bank of India has been decided with the Government that the Ways and Means Advance limits will changed and interest rate will also changed. It has been decided in consultation with the Government of India that the limits for Ways and Means Advances (WMA) for the financial… Read More

Foreign Exchange Reserves dip by USD 286 mn

Foreign exchange reserves reduced by $286 million on account of revaluation of non-dollar assets in reserves. Total reserves are now at $307.9 billion. According to the latest data released by the Reserve Bank of India , foreign currency assets, comprising dollars, pounds and euro, among others, dipped $311million during the week. The value of gold in… Read More

100 % FDI planned in Sea Plane Operations

Government is planning 100 per cent foreign direct investment in sea plane operations as there is scope of phenomenal growth of sea plane, general aviation and helicopter travel. "With India having a long coast line, there is a need for concerted efforts to promote sea plane operations. They are significant for the economy of islands… Read More

Government ordered inter-ministerial group to examine FDI in Pharma Sector

The government ordered the constitution of an inter-ministerial group to review India's foreign direct investment (FDI) norms in Rs 47,000-crore pharmaceutical sector. The directions were issued in a meeting of the Cabinet Committee of Economic Affairs , chaired by prime minister Manmohan Singh. The inter-ministerial group has to examine all concerns related to foreign direct… Read More

Subvention scheme now brings everyone closer to their dream homes

RBI/2010-11/481; RPCD.SME & NFS. BC. No. 62/06.11.01/2010-11 CLR Note: The scheme of 1% interest subvention on the housing loans now extends up to 15 lakh where the cost of house is up to 25 lakh from the existing 10 lakh and 20 lakh respectively. April 21, 2011 The Chairman/Managing Director/ Chief Executive Officer All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear… Read More

Central Registry setup under SARFAESI to prevent frauds

RBI /2010-11/484 DBOD.Leg. No.BC. 86/09.08.011 /2010-11 April 21, 2011 CLR Note: GOI, Ministry of Finance has taken step to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property by setting up the Central Electronic Registry under SARFAESI . Further the transactions relating to securitization and reconstruction of financial assets… Read More

Provisioning Coverage Ratio (PCR) for Advances

RBI/2010-11/485 DBOD.No.BP.BC. 87/21.04.048/2010-11 April 21, 2011 The Chairman and Managing Director/ Chief Executive Officer All Scheduled Commercial Banks (Excluding RRBs) Dear Sir/ Madam Provisioning Coverage Ratio (PCR) for Advances Please refer to the circular DBOD.No.BP.BC.64/21.04.048/2009-10 dated December 1, 2009, in terms of which a Provisioning Coverage Ratio (PCR) of 70 percent of gross NPAs was prescribed,… Read More

Treasure the 25 paise coin – Out of circulation soon

RBI/2010-11/482 RPCD.CO.No RCB. 61/07.38.03/2010-11 April 21, 2011 CLR Notes: Coins of denomination of 25 paise and below will be withdrawn from circulation with effect from 30th June ,2011 and the banks are instructed to exchange before the close of business on the 29th June, 2011. The Chairmen/CEOs of all State and Central Co-operative Banks Dear… Read More

Banks to check for Terrorist links before opening new accounts

RBI/2010-11/483 RPCD.CO.RCB.AML.No.12146/07.02.12/2010-11 April 21, 2011 CLR Note: Banks are required to update the consolidated list of individuals and entities linked to the terrorist group issued by the Ministry of External Affairs , before opening any new account for strict compliance to the order issued by the Government. The Chairmen / CEOs of all State and Central Co-operative Banks Dear… Read More

Cibil credit scores on individuals now available to anybody for a fee

Credit scores give banks an estimate of an individual™s ability to repay a loan, since they are based on parameters like the loan amount, the nature of the loan, payment frequency and prior delinquency. Credit Information Bureau (India) Limited (Cibil) research shows 58 per cent of individuals with credit scores of 800 or above were… Read More

FDI declined by 26 percent

Despite efforts by the Commerce & Industry Ministry, India's Foreign Direct Investment (FDI) during April-February 2010-11 has declined by 25.6 per cent to USD 18.3 billion. During April-February 2009-10, the country's FDI stood at USD 24.62 billion. Commerce and Industry Minister Anand Sharma said that fresh investments particularly in services sector--computer (software and hardware), telecom, construction and… Read More

RBI mulls rules to improve bank’s services

Are you tired of Bank's services and don't know what to do ! Good news. RBI understands you and is working hard to provide you more "value for your money". Almost a year after RBI put in motion a process to improve banks' customer service practices, a high-profile panel set up by the central bank… Read More