The government of India vide Gazette notification no.26011/01/2014-IC-I dated 9.1.2015 notified that all the existing ‘Person of Indian Origin’ (PIO) card holders shall be deemed to be Overseas Citizen of India (OCI) card holders under Indian Citizenship Act of 1955. Now let us find out what it means to foreigners of Indian origin. Meaning of…
The Reserve Bank of India relaxed rules for rescheduling/restructuring of ECBs by permitting an increase in the total cost of borrowing offshore. In suppression of earlier provisions, the banking regulator has delegated powers to the designated AD category-I banks to allow changes/modification in the draw-down and repayment schedules notwithstanding the average maturity period or changes…
RBI spells out new norms to enhance transparency in pricing of credit The RBI has sought to protect bank borrowers by directing banks to observe the following additional instructions. In terms of RBI notification the new guidelines comes into force from APRIL 1, 2015. This is in order to give banks sufficient times to comply…
When a foreign citizen or a citizen of India, being employed by a foreign company outside India is deputed to India on an official duty to their branch/subsidiary/joint venture/Group Company, may credit the whole salary received by him/her at a bank account maintained abroad. Such remittance is allowed subject to a condition that he/she has…
Commercial Banks are eligible to claim interest subvention of 2% p.a in respect of short term crop loans granted by them at 7% p.a to farmers in rural and semi-urban areas. The interest subvention will be allowed on the loan amount up to Rs.300000/- disbursed from the bank’s own source of funds. Interest subvention of…
The Reserve Bank of India has lifted on Thursday (22.01.2015) the ban on individuals carrying Indian currency notes of higher denominations to Nepal and Bhutan. Now Indian travellers to Nepal and Bhutan can carry Indian currency notes in denominations of Rs.500 and/or Rs.1000, provided the maximum value of these currency notes should not exceed a…
The Reserve Bank of India’s Reference Rate for the US Dollar is `61.6140 on January 21, 2015 The corresponding rate for the previous day (January 20.2015) was `61.8475. Based on the reference rate for the US Dollar and the middle rates of the cross-currency quotes, the exchange rate of EUR, GBP and JPY against the…
Hereafter banks cannot differentiate old and new borrowal accounts for the purpose of selectively charging different rate of interest within the same category borrowers. The new guidelines of RBI on ‘Interest Rates on Advances’ will comes into effect immediately one month after its Circular dated 19.01.2015. Hitherto banks used to selectively lower rate of interest…
The Payment System operators including issuers of prepaid instruments, overseas principals for money transfer scheme, card network operators etc. within the country has to obtain authorization from RBI under PSS act.2007. Such payment system operators who apply to RBI for authorization needs to comply with the requirements of minimum paid-up capital and net-worth, as applicable…
RBI communiqué on RATE CUT RBI slashes repo rate by 25 bps to 7.75 per cent with immediate effect Reverse Repo @6.75% No change in CRR or SLR Key Rates (effective from 15/1/2015) CRR……………………………4% SLR…………………………….22% Repo Rate…………………7.75% Reverse Repo Rate……6.75% Marginal Standing Facility Rate….8.75% Bank Rate…………………………………..8.75% Call Rates……………………………………6.40 to8.40% Reasons quoted by RBI for rate…