Blog Archives

Instruction for Safety of Lockers in Banks

Reserve Bank of India (RBI) has issued instructions to banks regarding the safety of bank lockers for exercising due care and necessary precaution for the protection of the lockers provided to the customer, reviewing the systems in force for their operation on an ongoing basis and taking necessary steps, having well-documented security procedures, properly training […]

A slow start to August, rainfall deficiency worsens

Rainfall deficiency has increased: August started on a weak note with rainfall deviation rising to -10% of normal as of 8 August from -6% of normal at the end of July. A major part of this increase in deficiency is led by lower rainfall in parts of North West and Central India in recent days (rainfall deficiency has increased to - 4% in NW and -5% in Central India).

Audit of Banks- RBI issued guideline for Audit and Auditor appointment

With regard to Statutory Audit, Reserve Bank of India (RBI) has informed that it has issued Guidelines for appointment of Statutory Central Auditors (SCAs) and Statutory Branch Auditors in Public Sector Banks (PSBs), which covers the norms on eligibility, empanelment and selection as well as the procedure for appointment of such auditors. In case of […]

Loans to Cost more as RBI hikes key rate for second time in two months

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5 per cent. Consequently, the reverse repo rate under the LAF stands adjusted to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.

RBI Policy Watch: The Long and Winding Price Road

Today’s policy decision suggests that the RBI seems to be taking a long term view on inflation rather than remaining purely data dependent. The discussion on the possible increase in inflation early next year (Estimate of Q1 2019-20 to 5%) as well the assertion that policy rate changes impact the real economy with a lag (with a shorter lag in transmitting to lending rates) corroborates this

Hybrid Financing: An aid or an impediment

Nothing is available for free, even the air we inhale necessitates exhalation. Similarly, a startup requires funding in order to uplift itself from the nascent stage to a mature one. As an aid to the upliftment process, the Government of India has put forward an overture for hybrid instruments deviating itself from the traditional way of funding that was mainly either through pure equity or pure debt.

Opening Of Liaison Office In India By Foreign Entity

Liaison Office: Foreign Investor or Foreign companies can open a liaison office in India for promoting and facilitating the parent company business activities and can act as best communication channel between the foreign parent company and Indian company. With the liaison office, the foreign parent company will get help in entering into Indian market and […]

Foreign Venture Capital Investors And Related Regulations

Venture Capital is a type of seed funding in which investment is made at the initial growing stage of ventures. It is a financing to small and start-up ventures, which has high risk and potential to develop near future. The Venture Capital Investors are generally put their funds in those companies, which are with new ideas, innovations and having potential of high growth with inherent uncertainties.

Relaxation in Spreading of MTM losses to Co-operative banks

Please refer to circular UBD.No.BPD.PCB.Cir.12/09.29.00/2003-04 dated September 04, 2003 on ‘Guidelines for Investment Fluctuation Reserve’ issued to Primary (Urban) Cooperative Banks (UCBs), and circular RPCD.No.RF.BC.17/A.4-92/93 dated September 04, 1992 on ‘Investment Portfolio of Banks - Transactions in Securities’ and subsequent instructions in this regard issued to all State Co-operative Banks (StCBs)