Revision of FEMA regulations
RBI has revised nine regulations issued under the FEMA Act 1999 which will be effective on the date of their publication in the Gazette of India. As per RBI communiqué, with the revision of the regulations, the respective original notifications and subsequent amendments stand repealed. It is further informed in the communique that the revised…
Read articleRBI’s Sixth Bi-Monthly Statement : Repo, CRR etc.
RBI in its Sixth Bi-Monthly Statement with regard to ‘Monetary and Liquidity Measures’ made on 02.02.2016 decided to keep, policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75 per cent. The following rates as a consequence remain unchanged. CRR………………………………………. 4.00% SLR………………………………………..21.50% Repo Rate……………………………. 6.75% Reverse Repo Rate………………. 5.75% Marginal Standing Facility Rate……………
Read articleRBI issues second trench of Soverein Gold Bonds at ₹ 2,600/- per gram
Sovereign Gold Bonds Scheme 2016 Applications for the second trench of Soverein Gold Bonds will be accepted from January 18, 2016 to January 22, 2016, as per RBI communication. The issue price of the Bond for this tranche has been fixed at ₹ 2,600/- (Rupees Two Thousand Six Hundred only) per gram of gold. The…
Read articleNon-Fund Based Facility to Non-constituent bank borrowers
The commercial banks in India were not allowed to extend non-fund based facilities to non-constituents borrowers of the banks in order to prevent frauds, diversion of funds etc. However, the above restriction imposed by RBI vide circular DBOD.Dir.BC.62/13.07.09/2002-03 dated January 24, 2003 created problems to the customers who do not enjoy fund based credit facilities…
Read article
Meaning of Dirty Float
The Central Bank (RBI in India) sometimes intervenes in the volatile foreign exchange market in order to manage excessive volatility and to influence the value of a floating currency in an orderly condition. Such intervention of Central bank is called “Dirty Float”. The recent communication of the regulator informs that the bank would intervene in…
Key policy rates remain unchanged in the 5th bi-monthly monitory policy statement of RBI
In the fifth bi-monthly monitory policy statement for 2015-16 (01.12.2015), RBI said that on the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to keep policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.75 percent. The cash reserve ratio (CRR) of scheduled banks unchanged at…
Read article