In terms of instructions contained in RBI circular DBOD.No.BP.BC.107/21.04.048/2013-14 dated April 22, 2014 and A.P. (DIR Series) Circular No.129 dated May 9, 2014, Indian companies are not permitted to raise external commercial borrowings (ECB) from overseas branches / subsidiaries of Indian banks for the purpose of refinance / repayment of the rupee loans raised from…
Revision of interest rates for Small Savings Schemes (SCSS/PPF/KVP/Sukanya Samriddhi Account) The Government of India have vide their Office Memorandum (OM) No.6/01/2011-NS.II dated March 31, 2015, advised the rate of interest on various small savings schemes for the financial year 2015-16. Accordingly, the rates of interest on PPF 1968, SCSS 2004, Kisan Vikas Patra &…
RBI approves ING Vysya Bank Ltd.- Kotak Mahindra Bank Ltd. Amalgamation. The Scheme of amalgamation has been sanctioned in exercise of the powers contained in Sub-section (4) of Section 44A of the Banking Regulation Act, 1949. The Scheme will come into force with effect from April 1, 2015. All the branches of ING Vysya Bank Ltd.…
Risk Management and Inter-bank Dealings: Revised Guidelines relating to the Exchange Traded Currency Derivatives (ETCD) market At present, domestic participants are allowed to take a long (bought) as well as short (sold) position upto USD 10 million per exchange. As a measure of further liberalisation, RBI amended the provision in terms of its circular No.…
Details of Special Clearing operations on March 30 and 31, 2015 at all clearing houses.(For RTGS/NEFT- extended time window will be indicated through the respective system). March 30, 2015(Monday): Normal Clearing as followed on any working Monday plus a Special Clearing exclusively for Government transactions (receipts and payments) with return clearing on the same day…
Banks shall keep the counters open for Transactions of Central/State Governments on 30th (full day)/ 31st March 2015 (till 8 p.m) and all electronic transactions till midnight of 31st March. RBI in its circular dated 25.03.2015 instructed that all agency banks shall keep the counters of their designated branches conducting government business open for full…
The Reserve Bank of India on 25.03.2015 released the names of applicants who have applied for setting up Trade Receivables Discounting System (TReDS). These are: Sr.No. Name of the entity NSE Strategic Investment Corporation Limited (NSIC) and Small Industries Development Bank of India (SIDBI), Mumbai Trade Receivables Exchange (Group of Banking Professionals), Mumbai Axis Bank…
The ‘New Pension System (NPS)’ is a contribution-based pension scheme initiated by Government of India for the purpose of delivering income security to all citizens at their old age. According to a good number of financial advisers ‘New Pension System (NPS)’ is the most cost effective mode of retirement planning. Here we discuss the investment…
The objective of the New Pension System (NPS) is to offer the market-based return on the investments which would deliver income security to the investors at their old age in the form of monthly pension. The scheme was originally introduced by the Government of India to provide a new scheme of pension to its staffs…
In case of opening accounts of proprietorship concerns, apart from customer identification procedure as applicable to the proprietor, banks and financial institutions call for and verify the activity proof of the concern. The default rule under KYC is that any two documents, out of following documents listed in paragraph 2.5(h) of RBI Master Circular should…