Non-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…
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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…
Read articleKey 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 Evidence for physical import of goods into India
(Ex-Bond Bill of Entry/Courier Bill of entry are now considered as evidence of physical import) An importer in India has to submit one of the following records as proof of physical import of goods Exchange Control copy of the Bill of Entry for domestic consumption or Exchange Control copy of the Bill of Entry for warehousing…
Read articlePostponement of issue date of Sovereign Gold Bonds 2015
The first trench of Sovereign Gold Bonds, 2015 was open for subscription with effect from November 05, 2015 to November 20, 2015. The Reserve Bank in its communique dated November 24, 2015, said that it has been decided to shift the issue date from November 26, 2015, to November 30, 2015. The communique states that…
Date extended for application for Bharat Bill Payment Operating units
RBI extends last date for receipt of applications for authorising Bharat Bill Payment System Operating Units (BBPOUs) upto December 18, 2015 from the earlier November 20, 2015. Bank and non-bank entities engaged in the bill payment activities covered under the current scope of Bharat Bill Payment System (BPPS) either as Bharat Bill Payment Operating Units…
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