Category Archives: other Acts

Banks to remain open on all days from March 25 2017 to April 1, 2017

RBI/2016-17/257 DPSS.CO.CHD.No./2695/03.01.03/2016-17 March 25, 2017 The Chairman and Managing Director / Chief Executive Officer All Scheduled Commercial Banks including Regional Rural Banks/ Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks/Local Area Banks Payment systems to remain open on all days from March 25, 2017 to April 1, 2017 A reference is… Read More »

Special Clearing operations by Banks on March 30 and 31, 2017

RBI/2016-17/255 DPSS.CO.CHD.No./2656/03.01.03/2016-17 March 23, 2017 The Chairman and Managing Director / Chief Executive Officer All Scheduled Commercial Banks including Regional Rural Banks/ Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks/Local Area Banks Madam / Dear Sir, Special Clearing operations on March 30 and 31, 2017 A reference is invited to the… Read More »

Category: RBI

Amendments to chapter 4 of Foreign Trade Policy 2015-20

MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) NOTIFICATION New Delhi, the 21st March, 2017 No. 42/2015-2020 Subject: Amendments in Chapter 4 of the Foreign Trade Policy 2015-20 S.O. 905(E).— In exercise of powers conferred by Section 5 of FT (D&R) Act, 1992, read with paragraph 1.02 of the Foreign… Read More »

Non Resident can enter into foreign exchange derivative contract with bank in India to hedge an exposure

RESERVE BANK OF INDIA (Financial Markets Regulatory Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 17th March, 2017 No. FEMA. 384/RB-2017 Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2017 G.S.R. 260(E).—In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999),… Read More »

Impact of Demonetisation- A Preliminary Assessment by RBI

Macroeconomic Impact of Demonetisation- A Preliminary Assessment   Macroeconomic Impact of Demonetisation – A Preliminary Assessment* Demonetisation announced on November 8, 2016 was aimed at addressing corruption, black money, counterfeit currency and terror financing. Although demonetisation holds huge potential benefits in the medium to long-term, given the scale of operation, it was expected to cause… Read More »

Resolution of Stressed Assets by Banks

Resolution of Stressed Assets by Banks Total Stressed Assets (Gross Non Performing Assets and Restructured Standard Advances) of Scheduled Commercial Banks (SCBs) was Rs.9.64 lakh crore as on Dec 31, 2016 and Reduction in NPAs- due to actual recoveries (April to Dec) for SCBs are Rs.46,245 crore at the end of Dec 31, 2016 for… Read More »

Dispensing of fake currency notes through ATMs

Dispensing of fake currency notes through Automated Teller Machines (ATMs) There have been media reports regarding dispensation of Rs 2000 notes resembling a genuine note but bearing the legend “Children Bank of India” in place of “Reserve Bank of India” from Delhi, Meerut (Uttar Pradesh), Sitamarhi (Bihar) and a few other places. State Bank of… Read More »

Small Finance and Payment Banks in India

Small Finance and Payment Banks Reserve Bank of India (RBI) issued guidelines for licensing of small finance banks and payments banks on November 27, 2014 and granted in-principle approvals to 10 applicants to set up small finance banks and to 11 applicants to set up payments banks. The guidelines for small finance banks provide inter-alia… Read More »

Category: RBI

Plastic banknotes – Govt of India conducted field trial

Government to conduct field trial with plastic banknotes at five locations of the country; Approval for procurement of plastic substrate and printing of bank notes of Rs.10 denomination on plastic banknote substrates conveyed to RBI It has been decided to conduct a field trial with plastic banknotes at five locations of the country. Approval for… Read More »

Cybercrime audit on banks to check loopholes

Cybercrime audit on banks to check loopholes To address the issue of cyber resilience, RBI vide circular dated December 9, 2016 had instructed all authorised entities / banks issuing PPIs in the country to: (i)                 Carry out a special audit by the empanelled auditors of Indian Computer Emergency Response Team (CERT-In) on a priority basis… Read More »

Category: RBI

IRDA modified Guidelines on Pont of Sales Person – Non-Life and Health

IRDA Modifies Guidelines on Point of Sales Person: Non-Life & Health INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 E-mail : irda@irda.gov.in Web.: www.irda.gov.in Ref: IRDA/INT/GDL/PSP/058/031 2017 16th March, 2017 To all General and Health Insurers Reference is drawn to Guidelines on… Read More »

Sebi asks clearing corps to upload past orders on website

New Delhi, Mar 16  Markets regulator Sebi today asked clearing corporations to post all the past regulatory orders as well as arbitration and appellate awards on their websites within 30 days, while fresh orders need to be uploaded immediately. The move is aimed at improving transparency, the Securities and Exchange Board of India (Sebi) said… Read More »

PMGKDS- Deposit Reference No needs to be mentioned on Form V

RBI/2016-17/251 IDMD.CDD.No. 2347/14.04.051/2016-17 March 16, 2017 The Chairman/CEO/ Managing Director, All Authorised Banks, (All Banks to which Banking Regulation Act, 1949 applies) Dear Sir/Madam, Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 – Clarification Please refer to our letter IDMD.No.1451/08.03.016/2016-17 dated December 16, 2016 and Notification No. S.O.4061(E) dated December 16, 2016 issued by the… Read More »

Banks to remain open up to 8.00 p.m. on March 31, 2017 for Govt Transactions

RBI/2016-17/250 DGBA.GAD.No. 2377/42.01.029/2016-17 March 16, 2017 All agency banks Dear Sir / Madam, Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2016-17) The Government of India has desired that all government transactions with banks must be accounted for within the same financial year… Read More »

RBI norms for banks for Reporting & Accounting of Central Govt Transactions of March 2017

Reporting and Accounting of Central Government Transactions of March 2017 RBI/2016-17/249 DGBA.GAD.No. 2376/42.01.029/2016-17 March 16, 2017 All Agency Banks Dear Sir / Madam, Reporting and Accounting of Central Government Transactions of March 2017 Please refer to Circular DGBA.GAD.No.2968/42.01.029/2015-16 dated March 17, 2016 advising the procedure to be followed for reporting and accounting of Central Government… Read More »

Category: RBI

ICAI Invited CA/ Experts contributions to Question Bank Information System Audit- Assessment Test (ISA-AT)

Announcement 15th March 2017 Invitation for contributions to Question Bank in respect of Information System Audit-(Assessment Test (ISA-AT)(New Syllabus) Information Systems Audit is a post qualification course meant for the members of the Institute. Members who are registered for the course are required to appear and pass ISA-Eligibility Test and those who qualify thereon are… Read More »

India’s Foreign Trade: February 2017

India’s Foreign Trade: February, 2017 MERCHANDISE TRADE EXPORTS (including re-exports) In continuation with the revival exhibited by exports since September 2016, exports during February 2017 for the first time exhibited a double digit positive growth of 17.48 per cent in dollar terms valued at US$ 24490.27 million as compared to US$ 20845.73 million during February,2016.… Read More »

Sovereign Gold Bond- Dematerialisation

Date : Mar 14, 2017 The Reserve Bank of India, in consultation with the Government of India, has issued six tranches of Sovereign Gold Bonds for a total value of ₹ 4145 crore till date. Investors in these bonds have been provided with the option of holding them in physical or dematerialized form. The requests… Read More »

Category: RBI

100% FDI in e commerce websites via automatic route allowed in India by Govt

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 9th March , 2017 No. FEMA.387/2017-RB Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2017 G.S.R. 224 (E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section… Read More »

NBFC to Disburse loans against gold above Rs 20000 in non cash mode -RBI

RBI/2016-17/245 DNBR (PD) CC.No.086/03.10.001/2016-17 March 09, 2017 All NBFCs Madam/ Sir, Disbursal of loan amount in cash Reference is invited to instructions contained in para 37(iii)(b) of Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve… Read More »

De-sealing of Business Premises – Delhi Vat Department Circular

DEPARTMENT OF TRADE & TAXES, GOVT. OF NCT OF DELHI (POLICY BRANCH) VYAPAR BHAWAN, LP..ESTATE, NEW DELHI. NoF.30/Policy/VAT/2016/1249-54 (645) Dated: 08/03/2017 CIRCULAR NO. 27 OF 2016-17 Subject:- De-sealing of Business Premises In line with the directions of Honrble High Court Delhi, in the matter of Sh. Narender Singh Vs. Deptt. of T&T (in WP(C)1627/2017), the… Read More »

RBI App- Now RBI website at your fingertips

Date : Mar 10, 2017 The Reserve Bank of India today formally launched a mobile application (app) version of the Reserve Bank of India’s website (www.rbi.org.in). The app is available on Android as well as iOS platforms and can be downloaded from the Play Store/App Store in one’s Android phone/iPhone, respectively, using the keyword “Reserve… Read More »

Issue of Rs 10 banknotes with improved security features by RBI

Issue of Rs 10 banknotes with improved security features The Reserve Bank of India will shortly issue ₹ 10 denomination banknotes in the Mahatma Gandhi Series-2005 with inset letter ‘L’ in both the number panels, bearing the signature of Dr. Urjit R. Patel, Governor, Reserve Bank of India, and the year of printing ‘2017’ printed… Read More »

Category: RBI

7 new districts in Manipur – Assignment of Lead Bank Responsibility by RBI

RBI/2016-17/248 FIDD.CO.LBS.BC.No.23/02.08.001/2016-17 March 9, 2017 The Chairmen & Managing Directors All Lead Banks Dear Sir/Madam, Formation of seven new districts in the State of Manipur – Assignment of Lead Bank Responsibility The Government of Manipur vide Gazette Notification dated December 8, 2016 had notified the creation of seven new districts in the State of Manipur.… Read More »

Category: RBI

Applicability of GST in Nov.2017 CA Examinations – Clarification

28th Feb., 2017 Sub: Applicability of GST in Nov., 2017 Examinations Students appearing in November, 2017 Intermediate (IPC) Examination may note that Goods and Services Tax (GST) will not be examined in Part II: Indirect Taxes of Paper 4: Taxation. Therefore, students are advised to start studying the existing indirect tax laws as covered in… Read More »

FEM (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations 2017

Reserve Bank of India Foreign Exchange Department Central Office Mumbai – 400 001 Notification No. FEMA.385/2017-RB March 03, 2017 Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017 In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47… Read More »

Gold Monetisation Scheme – RBI Guidelines to bring uniformity in reporting

Gold Monetisation Scheme RBI/2016-17/243 DGBA.GAD.No.2294/15.04.001/2016-17 March 6, 2017 All Agency Banks Dear Sir/Madam Gold Monetisation Scheme Please refer to RBI Master Direction No.DBR.IBD.No.45/23.67.003/2015-16 dated October 22, 2015 (updated up to January 21, 2016) on the above subject. In order to operationalise the scheme, we advise the following: 2. In order to have uniformity in reporting,… Read More »

FDI in LLP – RBI Revised Notification 03.03.2017

RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 3rd March, 2017 No. FEMA. 385/ 2017-RB Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2017 G.S.R. 188 (E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and… Read More »

IRDA Guidelines on Claim processing for Group Insurance Policies

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA CIRCULAR To all Life Insurers Ref: IRDAI/Life/Cir/GDL/049/3/2017 Date: 03-03-2017 Guidelines on Claim processing for Group Insurance Policies – Addition of new Categories of Master Policyholders The Authority issued Guidelines on Claim Processing for Group Life Insurance Policies under Lender Borrower Schemes vide cir ref: IRDA/Life/Cir/GDL/285/12/2014 dated 29/12/2014 which… Read More »

Infrastructure Lending Definition -NBFC to be guided by Govt Gazette Notifications

RBI/2016-17/242 DNBR.PD.CC.No.085/03.10.001/2016-17 March 2, 2017 All Non-Banking Financial Companies Dear Sir/ Madam, Infrastructure Financing- Definition of ‘Infrastructure Lending’ Please refer to the definition of ‘Infrastructure Lending’ contained in the Non-Banking Financial Company – Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 and Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking… Read More »

Financial Literacy and rural branches – Policy Review by RBI

Financial Literacy by FLCs (Financial Literacy Centres) and rural branches – Policy Review RBI/2016-17/236 FIDD.FLC.BC.No.22/12.01.018/2016-17 March 02, 2017 To Chairman/MD & CEO Scheduled Commercial Banks (Including RRBs) Dear Sir/Madam, Financial Literacy by FLCs (Financial Literacy Centres) and rural branches – Policy Review Please refer to our circular FIDD.FLC.BC.No.18/12.01.018/2015-16 dated January 14, 2016 on guidelines for… Read More »

Category: RBI

RBI Establishes an Inter-disciplinary Standing Committee on Cyber Security

Date : Feb 28, 2017 Reserve Bank Establishes an Inter-disciplinary Standing Committee on Cyber Security The Reserve Bank of India has set up an Inter-disciplinary Standing Committee on Cyber Security to, inter alia, review the threats inherent in the existing/emerging technology; study adoption of various security standards/protocols; interface with stakeholders; and suggest appropriate policy interventions… Read More »

Category: RBI

Tax , Interest and Penalty as defined in Supreme Court Judgment

In fiscal Statutes, the import of the word-“tax”,”interest”,”penalty”, etc.are well known. They are different concepts. Tax is the amount payable as a result of the charging provision . It is a compulsory extraction of money by a public authority for public purposes, the payment of which is enforce by law. Penalty is ordinarily levied on… Read More »

Money Transfer Service Scheme (MTSS) – RBI Master Direction – Personal remittances from abroad to India

Master Direction – Money Transfer Service Scheme (MTSS) RBI/FED/2016-17/52 FED Master Direction No.1/2016-17 February 22, 2017 To All Authorised Persons who are Indian Agents under the Money Transfer Service Scheme Madam / Dear Sir, Master Direction – Money Transfer Service Scheme (MTSS) Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring… Read More »

Sovereign Gold Bonds 2016-17 – Series IV – Operational Guidelines

Sovereign Gold Bonds, 2016-17 – Series IV – Operational Guidelines RBI/2016-17/235 IDMD.CDD.No.2188/14.04.050/2016-17 February 23, 2017 The Chairman & Managing Director All Scheduled Commercial Banks (Excluding RRBs) Designated Post Offices Stock Holding Corporation of India ltd.(SHCIL) National Stock Exchange of India Ltd. & Bombay Stock Exchange Ltd. Dear Sir/Madam, Sovereign Gold Bonds, 2016-17 – Series IV… Read More »