Introduction External Commercial Borrowings (ECB) are the borrowings taken by an eligible entity in India for commercial purpose from any recognized entity outside India. As funding by the companies through debt has been traditionally been a preferred mode of funding due to inherent advantages such as security creation, minimum guaranteed returns, and tax optimization for […]
Government of India has vide its Notification No F.No4.(4)-B (W&M)/2021 dated May 12, 2021 has announced the Sovereign Gold Bond Scheme 2020-21, Series I, II, III, IV, V and VI. Under the scheme there will be a distinct series (starting from Series I) for every tranche. The terms and conditions of the issuance of the Bonds shall be as per the above notification.
Existing guidelines on appointment of Scheduled Private Sector Banks as Agency Banks of RBI have been reviewed and the revised guidelines/framework for authorising Scheduled Private Sector Banks as agency banks of RBI for conduct of government business attracting agency commission
Direct Investment by Residents in Joint Venture (JV)/Wholly Owned Subsidiary (WOS) Abroad”, as amended from time to time and Regulation 7 of the Notification FEMA 120/2004-RB, pertaining to provisions for an Indian Party (IP) making investment/ financial commitment in a
Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds. The Sovereign Gold Bonds will be issued in six tranches from May 2021 to September 2021 as per the calendar specified below:
RBI reduces interest rate payable by banks to depositors/claimants on unclaimed interest bearing deposit amount to 3%
The rate of interest has since been reviewed and it has been decided that the rate of interest payable by banks to the depositors/claimants on the unclaimed interest bearing deposit amount transferred to the Fund shall be 3 per cent simple interest per annum with effect from the date of this circular.
On a review, it has been decided to amend the MD on KYC to further leverage the Video based Customer Identification Process (V-CIP) and to simplify and rationalise the process of periodic updation of KYC.
RBI Governor’s statement dated May 5, 2021: Indian economy now, and its bright future RBI Governor in his statement dated May 5, 2021 has dealt with the performance of Indian economy for the financial year 2020-2021 mentioning its appreciable position at the end of the year gaining its original position of growth, flattening of infections […]
What is “External Commercial Borrowings (ECB) “External Commercial Borrowings (ECB)” means borrowing by an eligible resident entity from outside India in accordance with framework decided by the Reserve Bank of India in consultation with the Government of India: Eligible entities may raise External Commercial Borrowings (ECB) from outside India in accordance with the provisions. ♦ […]
We advise that the Lakshmi Vilas Bank Ltd has been excluded from the Second Schedule to the Reserve Bank of India Act, 1934 with effect from November 27, 2020 vide Notification DOR.PSBD.No.1849/16.01.067/2020-21 dated December 17, 2020, which is published in the Gazette of India (Part III - Section 4) dated January 16 – January 22, 2021.
Summary of RBI measures proposed to be taken amid second wave of Covid-19 pandemic on May 05, 2021 Reserve Bank of India (RBI) on May 05, 2021 announces the measures proposed to be taken against the amid the second wave of covid 19 pandemic, details of the same is briefly provided hereunder: 1. Term Liquidity […]
In view of the uncertainties created by the resurgence of the Covid-19 pandemic in India in the recent weeks, RBI decided to extend the facility for restructuring existing loans to MSMEs without a downgrade in the asset classification subject to the some conditions. RESERVE BANK OF INDIA www.rbi.org.in RBI/2021-22/32 DOR.STR.REC.12/21.04.048/2021-22 May 5, 2021 All Commercial […]
Part A of this circular pertains to requirements specific to resolution of advances to individuals and small businesses and Part B pertains to working capital support for: (i) individuals who have availed of loans for business purposes, and (ii) small businesses, where resolution plans were implemented previously. Part C lists the disclosure requirements for the lending institutions with respect to the resolution plans implemented under this window.
Scheduled Commercial Banks allowed to deduct amount equivalent to credit disbursed (up to ₹ 25 lakh per borrower) to new MSME borrowers from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR) up to the fortnight ending December 31, 2021. Reserve Bank of India RBI/2021-22/30 DoR.RET.REC.09/12.01.001/2021-22 May 05, 2021 […]
Due to Covid RBI Regulated Entities are advised that in respect of the customer accounts where periodic updation of KYC is due and pending as on date, no restrictions on operations of such account shall be imposed till December 31, 2021, for this reason alone, unless warranted under instructions of any regulator/ enforcement agency/court of […]
In order to mitigate the adverse impact of COVID 19 related stress on banks, as a measure to enable capital conservation, it has been decided to allow banks to utilise 100 per cent of floating provisions/ countercyclical provisioning buffer held by them as on December 31, 2020 for making specific provisions for non-performing assets with prior approval of their Boards. Such utilisation is permitted with immediate effect and upto March 31, 2022.
As announced by the Governor in his Statement dated May 5, 2021, RBI has eased the terms governing availment of the overdraft facility extended to State Governments/UTs, to enable them to better manage their fiscal situation in terms of their cash-flows and market borrowings.
RBI decided to allow PSL classification to the fresh credit extended by SFBs to registered NBFC-MFIs and other MFIs (Societies, Trusts etc.) which are members of RBI recognised ‘Self-Regulatory Organisation’ of the sector and which have a ‘gross loan portfolio’ of upto ₹500 crore as on 31 March 2021, for the purpose of on-lending to individuals. Bank credit as above will be permitted up to 10% of the bank’s total priority sector portfolio as on 31 March, 2021.
As the financial year 2020-21 – the year of the pandemic – was drawing to a close, the Indian economy was advantageously poised, relative to peers. India was at the foothills of a strong recovery, having regained positive growth, but more importantly, having flattened the infections curve.
In this era of globalization, Overseas Direct Investment (ODI) has become a buzzword. From the past few years, it has been observed that the trend of making investment in businesses overseas is increasing year by year. Many of the resident individuals and Indian Companies are investing / acquiring stake in the foreign entities. This article […]