Repatriation of the sale proceeds of immovable property
[This article elucidates the FEMA rules for the transfer of sale proceeds of immovable properties abroad and the documents required for the same.] Section 6(5) in the Foreign Exchange Management Act, 1999 provides that “A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in…
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Details of negotiation meetings held between IBA and UFBU on Feb 29
Today (29.02.2020) negotiations for 11th BPS started at 11.30 am at IBA Office Mumbai. Negotiations committee chairman first offers to start negotiations with an appeal to UFBU for withdrawal of three days strike call given by them. UFBU on their part clear their stand by reminding their 12points demand. After a lot of discussions, the…
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Hereafter short term crop loans extended only through KCC is eligible for interest subvention scheme
Reserve bank of India advised all the scheduled commercial banks that with effect from April 1, 2020, Short Term Crop Loans should be extended only through KCC to be eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI). According to the notification, the Ministry of Agriculture & Farmers Welfare vide their Office Memorandum,…
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The regime of External Benchmark Based Lending and switch-over rules
External benchmark rate means the reference rate which includes the policy Repo rate of RBI, Government of India’s 3-Months and 6-Months Treasury Bill yields published by Financial Benchmarks India Private Ltd (FBIL), and any other benchmark market interest rate published by FBIL. The interest rate on banks’ lending based on external benchmark shall be reset…
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RBI revises its liquidity management framework: LTRO introduced in place of 14 days fixed term repo
As announced in the Statement on Developmental and Regulatory Policies of February 6, 2020, the Reserve Bank of India has decided to revise its liquidity management through which it controls cash in the banking system to rationalise interest rates in line with the policy actions. Instruments of liquidity management will include “fixed and variable rate…
RBI permits one-time restructuring of MSME advances till December 31, 2020
RBI permits one-time restructuring of MSME advances till December 31, 2020 RBI on Tuesday (11.02.2020) allowed a one-time restructuring of existing loans extended to MSMEs by Banks and NBFCs and permitting them to classify such assets as ‘Standard’ without a downgrade in the asset classification if the following conditions are met. • The aggregate of…
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