FEMA - Corporate Law Reporter

RBI FAQs :: Deposit Taking Activities of Financial Entities

1. What is a Non-Banking Financial Company? A Non-Banking Financial Company (NBFC) is a company a) registered under the Companies Act, 1956, b) its principal business is lending, investments in various types of shares/stocks/bonds/debentures/securities, leasing, hire-purchase, insurance business, chit business, and c) its principal business is receiving deposits under any scheme or arrangement in one… Read More

RBI Advisory :: Check before Depositing Money with Financial Entities

The Reserve Bank of India has today issued an advisory to members of public urging them to carefully evaluate their investment decisions, including making deposit with NBFCs. The advisory is part of the Frequently Asked Questions (FAQs) issued by the central bank. The FAQs explain in detail the various kinds of financial entities and the regulations governing… Read More

RBI to post on its website clarifications on New Banks Licensing Guidelines

The Reserve Bank of India had issued Guidelines for Licensing of New Banks in the Private Sector on February 22, 2013. Following issue of the guidelines, RBI received several queries regarding the guidelines. To comprehensively reply to all queries, RBI issued a press release on March 7, 2013 asking that queries on the guidelines may… Read More

Government Approves Eight FDI Proposals

Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 12.04.2013 Following eight (8) proposals have been approved: Sl. No. Name of the applicant Particulars of the proposal FDI/NRIinflows (Rs. in crore) 1 M/s McKinsey & Company Inc. India, USA To set up an LLP to be engaged in providing management consultancy services. 0.99 2 M/s AWS TruepowerLLC, USA Induction of foreign equity to carry out the business of consultancy… Read More

Review of Prudential Guidelines on Restructuring of Advances by Banks and Financial Institutions

RBI/2012-13/514 DBOD.BP.BC.No. 99/21.04.132/2012-13 May 30, 2013 All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Review of Prudential Guidelines on Restructuring of Advances by Banks and Financial Institutions As indicated in paragraph 81 (extract enclosed) of the Monetary Policy Statement 2013-14 announced on May 3, 2013, ˜Prudential guidelines on restructuring of advances by banks / financial… Read More

RBI Circular – Best Practices in well run Urban Co-operative Banks

RBI/2012-13/513 UBD.CO.LS.(PCB).Cir.No.49/07.01.000/2012-13 May 28, 2013 Chief Executive Officers of all Primary (Urban) Co-operative Banks Dear Sir/ Madam, Best Practices in well run Urban Co-operative Banks Please refer to our circular UBD.No.BPD.IP.24/12.05.01/2004-05 dated October 20, 2004 providing UCBs with information on the best practices followed by well managed banks in the urban banking centres as examples. In this… Read More

Guidelines on Composition of Capital Disclosure Requirements

RBI/2012-13/512 DBOD.No.BP.BC.98/21.06.201/2012-13 May 28, 2013 The Chairman and Managing Directors/ Chief Executives Officers of All Scheduled Commercial Banks (Excluding Local Area Banks and Regional Rural Banks) Madam / Sir, Guidelines on Composition of Capital Disclosure Requirements Please refer to the paragraph 77 (extract enclosed) of the Monetary Policy Statement for 2013-14 announced on May 3,… Read More

RBI Notification – Branch Authorisation Policy- Front Loading of branches in unbanked rural centres

RBI/2012-13/511 DBOD.NO.BAPD.BC. 97/22.01.001/2012-13 May 28, 2013 Jyeshtha 7, 1934 (Saka) All Domestic Scheduled Commercial Banks (excluding RRBs) Madam/Dear Sir, Branch Authorisation Policy- Front Loading of branches in unbanked rural centres Please refer to paragraph 96 of Monetary Policy Statement 2013-14 (extract enclosed) on the above subject. As stated therein, branch expansion in rural areas is… Read More

RBI Notice – Auction Sale of a New Inflation Indexed Government Stock of 10 Years

Government of India Ministry of Finance Department of Economic Affairs Budget Division New Delhi, dated May 29, 2013 NOTIFICATION Auction for Sale of a New Inflation Indexed Government Stock of 10 Years F.No.4 (16) W&M/2012: Government of India hereby notifies sale of Inflation Indexed Government Stock-2023 (securities) of 10-year tenure for an aggregate amount of Rs. 1,000… Read More

Auction of Government of India Dated Securities

Ref.No.IDMD /3231/08.02.032/2012-13 May 27, 2013 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 (new/re-issue) (a) New 6-year Government stock 2019for a notified amount of Rs.3,000 crore (nominal) through… Read More

RBI Clarification on NBFCs finance for Purchase of Gold

RBI/2012-13/510 DNBS.CC.PD.No.326/03.10.01/2012-13 May 27, 2013 To All NBFCs Dear Sir, NBFCs finance for Purchase of Gold In terms of extant guidelines issued vide circular DNBS.CC.PD.No.265/03.10.001/2012-13 dated March 21, 2013 no advances should be granted by NBFCs against bullion / primary gold and gold coins. 2. It is clarified that no advances should be granted by NBFCs… Read More

RBI Clarification on Lending against Gold

RBI/2012-13/509 DBOD. No. Dir. BC. 96/13.03.00/2012-13 May 27, 2013 All Scheduled Commercial Banks (excluding RRBs) Dear Sir/Madam Lending against Gold Please refer to paragraph 98 of the Monetary Policy Statement 2013-14 announced on May 3, 2013 (extract enclosed) on lending against gold, proposing to restrict the facility of advances against the security of gold coins… Read More

Prudential Guidelines on Capital Adequacy and Market Discipline – New Capital Adequacy Framework (NCAF) – Parallel Run and Prudential Floor

RBI/2012-13/508 DBOD.BP.BC. No.95/21.06.001/2012-13 May 27, 2013 The Chairman and Managing Director/ Chief Executive Officer of All Scheduled Commercial Banks (excluding LABs and RRBs) Dear Sir Prudential Guidelines on Capital Adequacy and Market Discipline - New Capital Adequacy Framework (NCAF) - Parallel Run and Prudential Floor Please refer to our circular DBOD.BP.BC.No.71/21.06.001/2010-11 dated December 31, 2010 on the… Read More