Daily Archives: October 10, 2015

ADDITIONAL DOCUMENTS FOR PROOF OF ADDRESS FOR PREVENTION OF MONEY LAUNDERING

AMENDMENT TO PREVENTION OF MONEY LAUNDERING (MAINTENANCE OF RECORDS) RULES, 2005 – ADDITIONAL DOCUMENTS FOR LIMITED PURPOSE OF PROOF OF ADDRESS CIRCULAR DBR.AML.BC.NO.104/14.01.001/2014-15, DATED 11-6-2015 Please refer to Rule 14(i) and proviso to Rule 2(d) at Sr.No.4 of Annex to our circular DBOD.AML.BC.No.26/14.01.001/2014-15 dated July 17, 2014, on the applicability of ‘simplified measures’ to verify… Read More »

AMENDMENT IN RULES FOR PREVENTION OF MONEY LAUNDERING

PREVENTION OF MONEY LAUNDERING (MAINTENANCE OF RECORDS) AMENDMENT RULES, 2015 – AMENDMENT IN RULES 2, 9 & 10 AND INSERTION OF RULE 9A NOTIFICATION NO.4/2015 [P.12011/5/2011-SO(ES.CELL)]/GSR 544(E), DATED 7-7-2015 In exercise of the powers conferred by sub-section (1) read with clauses (i), (j), (jj), (jjj) and (k) of sub-section (2) of section 73 of the… Read More »

FOREIGN INVESTMENT IN INDIA

FOREIGN INVESTMENT IN INDIA MASTER CIRCULAR NO.15/2015-16, DATED 1-7-2015 Foreign investment in India is governed by sub-section (3) of Section 6 of the Foreign Exchange Management Act, 1999 read with Notification No. FEMA 20/2000-RB dated May 3, 2000, as amended from time to time. The regulatory framework and instructions issued by the Reserve Bank have… Read More »

FDI IN COMPANIES ENGAGED IN TOBACCO RELATED ACTIVITIES

INVESTMENT IN COMPANIES ENGAGED IN TOBACCO RELATED ACTIVITIES A.P. (DIR SERIES 2015-16) CIRCULAR NO.2, DATED 3-7-2015 Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to Annex A of Schedule 1 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No. FEMA.20/2000-RB… Read More »

CENVAT Credit on Banking Service and Technical Inspection Service is admissible to exporter of diamonds

Bank Charges in relation to business of manufacture and export of goods, whether pertaining prior to manufacture or after manufacture, are eligible for credit under rule 2(l) or refund under Notification No. 17/2009-ST CESTAT, MUMBAI BENCH Commissioner of Central Excise, Puna-I v. Rosy Blue (India) (P.) Ltd. M.V. RAVINDRAN, JUDICIAL MEMBER AND C.J. MATHEW, TECHNICAL… Read More »

WHEN DAY OF MATURITY IS A HOLIDAY UNDER NEGOTIABLE INSTRUMENTS ACT

SECTION 25 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 – WHEN DAY OF MATURITY IS A HOLIDAY – DECLARATION OF SECOND AND FOURTH SATURDAY OF EVERY MONTH AS PUBLIC HOLIDAY FOR BANKS IN INDIA NOTIFICATION NO. SO 2285 [F.NO.4/1/7/2015-IR], DATED 20-8-2015 In exercise of the powers conferred by section 25 of the Negotiable Instruments Act, 1881… Read More »

Category: RBI

REPORTING REQUIREMENT UNDER FOREIGN ACCOUNT TAX COMPLIANCE ACT

REPORTING REQUIREMENT UNDER FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA) AND COMMON REPORTING STANDARDS (CRS) CIRCULAR DBR.AML.BC.No.36/14.01.001/2015-16, DATED 28-8-2015 As you are aware, India has signed the Inter-Governmental Agreement (IGA) with the USA on July 9, 2015, for Improving International Tax Compliance and implementing the Foreign Account Tax Compliance Act (FATCA). India has also signed a… Read More »

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AL QAIDA NAME IN UNLAWFUL ACTIVITIES PREVENTION ACT (UAPA) 1967

IMPLEMENTATION OF SECTION 51A OF UNLAWFUL ACTIVITIES PREVENTION ACT (UAPA), 1967 – 21ST UPDATE DATED 3-9-2015 OF AL-QAIDA SANCTIONS LIST CIRCULAR DBR.AML.NO.3441/14.06.001/2015-16, DATED 7-9-2015 Please refer to our circular DBR. AML. No. 2723/14.06.001/2015-16 dated August 24, 2015 on the captioned subject releasing the 19th and 20th updates dated August 17, and August 18, 2015 regarding… Read More »

Category: RBI

REVIEW OF EQUITY INVESTMENT BY BANKS

REVIEW OF EQUITY INVESTMENT BY BANKS CIRCULAR DBR.NO.FSD.BC.37/24.01.001/2015-16, DATED 16-9-2015 Please refer to circulars DBOD BP(FSC) 1854/C-469-89, dated May 27, 1989 and DBOD FSC BC 45/C.469, dated October 15, 1991, in terms of which banks cannot participate in the equity of financial services ventures including stock exchanges, depositories, etc., without obtaining the prior specific approval… Read More »

Category: RBI

LOANS TO DIRECTORS UNDER BANKING REGULATION ACT 1949

GUIDELINES ON COMPENSATION OF CHIEF EXECUTIVE OFFICER/WHOLE TIME DIRECTORS – RESTRICTIONS UNDER SECTION 20 OF THE BANKING REGULATION ACT, 1949 – LOANS TO DIRECTORS CIRCULAR DBR.DIR.BC.NO.38/13.03.00/2015-16, DATED 16-9-2015 Section 20 of Banking Regulation Act, 1949 (B.R. Act, 1949) prohibits banks from granting any loan or advance to any of its Directors. However, in exercise of… Read More »

FRAMEWORK FOR REVITALISING DISTRESSED ASSETS IN THE ECONOMY

FRAMEWORK FOR REVITALISING DISTRESSED ASSETS IN THE ECONOMY – REVIEW OF GUIDELINES ON JOINT LENDERS’ FORUM (JLF) AND CORRECTIVE ACTION PLAN (CAP) CIRCULAR DBR.BP.BC.NO.39/21.04.132/2015-16, DATED 24-9-2015 Please refer to the ‘Framework for Revitalising Distressed Assets in the Economy’ issued on our website on January 30, 2014 and the circulars issued in this regard viz. (i)DBOD.BP.BC.No.97/21.04.132/2013-14… Read More »

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PARTIAL CREDIT ENHANCEMENT TO CORPORATE BONDS

PARTIAL CREDIT ENHANCEMENT TO CORPORATE BONDS CIRCULAR DBR.BP.BC.NO.40/21.04.142/2015-16, DATED 24-9-2015 Please refer to the draft guidelines proposing to allow banks to offer partial credit enhancement (PCE) to corporate bonds, issued on May 20, 2014 for comments/ feedback. 2. Taking into account the feedback received, and with a view to encouraging corporates to avail of bond… Read More »

Category: RBI

PRUDENTIAL NORMS ON CHANGE IN OWNERSHIP OF BORROWING ENTITIES

PRUDENTIAL NORMS ON CHANGE IN OWNERSHIP OF BORROWING ENTITIES (OUTSIDE STRATEGIC DEBT RESTRUCTURING SCHEME) CIRCULAR DBR.BP.BC.NO.41/21.04.048/2015-16, DATED 24-9-2015 Please refer to our circular DBR.BP.BC.No.101/21.04.132/2014-15 dated June 8, 2015 on “Strategic Debt Restructuring Scheme (SDR)”, in terms of which certain exemptions from extant asset classification norms of the Reserve Bank of India were provided to banks… Read More »

Category: RBI