Bankers’ Handbook on Limitation Periods: Key Timelines Under the Limitation Act, 1963
The Limitation Act, 1963 prescribes specific time limits within which legal actions must be initiated. For banks and financial institutions, understanding these timelines is crucial for debt recovery, enforcement of securities, filing suits, and responding to customer claims. Failure to act within the prescribed limitation period may result in the claim becoming time-barred, rendering it…
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NRO (Non-Resident Ordinary) Accounts in India: Purpose, Eligibility, Rules & Operating Procedures
NRO (Non-Resident Ordinary) deposits are rupee-denominated accounts that allow NRIs/OCIs to hold and manage income accruing in India (such as rent, dividends, pension, interest), with repatriation of current income permitted and repatriation of principal subject to limits and documentation. These deposits can be opened as savings/current/term deposits, are subject to Indian taxation, and follow FEMA/RBI…
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Opening of FCNR(B) Deposits in India: Rules, Procedures, and Conditions
Foreign Currency Non-Resident [Bank] deposits, commonly called FCNR(B) deposits, are term deposits maintained in designated foreign currencies with Indian banks by eligible non-residents, offering full repatriability of principal and interest and insulation from INR exchange risk during the tenor. These deposits can generally be opened for tenors from 1 to 5 years, with interest payment/compounding…
Read article Closure of FCNR(B) Deposits in India: Rules, Procedures, and Conditions
Closing a Foreign Currency Non-Resident [Bank] [FCNR(B)] deposit in India is governed by RBI’s FCNR(B) Scheme and bank-specific policies, with distinct rules for premature closure, closure at maturity, repatriation, and treatment upon return to India for permanent settlement. The key principles are: premature closure is permitted with penalties and, if closed before one year, no…
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Credit Guarantee Scheme for Exporters (CGSE): Policy Overview, for the Banking Sector
The Union Cabinet has approved the Credit Guarantee Scheme for Exporters (CGSE), authorising the National Credit Guarantee Trustee Company Limited (NCGTC) to extend 100% credit guarantee coverage to Member Lending Institutions (MLIs) for additional credit facilities of up to ₹20,000 crore to eligible exporters, including those in the MSME segment. The scheme is expected to…
FEMA Amendments for Exporters: Extended Realisation and Shipment Timelines (2025)
India’s central bank has amended the export regulations under FEMA to give exporters more time to realise proceeds and fulfil shipment commitments amid global trade disruptions that have delayed payments and logistics, thereby easing short‑term cash‑flow pressures on firms engaged in goods, software, and services exports. The changes are designed to mitigate the impact of…
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