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RBI UPDATE
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Sr No
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Circular/ Notification number
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Particulars
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Applicability
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1 (a)
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RBI/2011-12/569 A.P. (DIR Series) Circular No. 129 dated May 21, 2012
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Risk Management and Inter Bank
Dealings
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All
Banks
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(b)
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RBI/2011-12/577 RPCD.CO. RCB.BC.No. 78/07.38.01/2011-12 dated May 28,
2012
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Conversion of Term Deposits, Daily Deposits or Recurring
Deposits for Reinvestment in Term Deposits by State and Central Co-operative Banks
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All
Banks
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(c)
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RBI/2011-12/581 DNBS.PD.CC.No.276/03.02. 089 /2011-12 dated May 30, 2012
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Uniformity in Risk weight for assets covering PPP and
post COD projects
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All
Infrastructure Finance Companies
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(d)
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RBI/2011-2012/585
A.P. (DIR Series) Circular No.131 dated May 31, 2012
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Overseas
Direct Investments by Indian Party-
Online
Reporting of Overseas Direct Investment in Form ODI
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Authorised
Dealer Banks
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MCA UPDATES
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2 (a)
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10/2012
dated May 21, 2012.
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Guidelines
for declaring a financial institution as public financial institution under
section 4A of the Companies Act
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All the
Financial Institutions
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RBI UPDATES
1(a) Risk Management and Inter Bank
Dealings
RBI Notification – May 21, 2012
We draw your attention to the RBI notification
no RBI/2011-12/569 A.P. (DIR Series) Circular No. 129 dated May 21, 2012.
Applicability:
All Banks
Crux of
the Notification:
On the Net Overnight Open Position Limit (NOOPL) the
following has been decided by RBI:
i. The current NOOPL of the banks as applicable to the
positions involving Rupee as one of the currencies shall not include the
positions undertaken in the Currency Futures/Options segment in the exchanges.
ii. The positions in the exchanges (both Futures and Options)
cannot be netted/offset by undertaking positions in the OTC market and
vice-versa. The positions initiated in the exchanges shall be liquidated/closed
in the exchanges only.
iii. The position limit for the trading member AD Category-I bank
in the exchanges for trading Currency Futures and Options shall be US$ 100
million or 15 per cent of the outstanding open interest, whichever is lower.
For further details
information please follow the below link
1(b) Conversion of Term Deposits, Daily Deposits or
Recurring Deposits for Reinvestment in Term Deposits by State and Central
Co-operative Banks
RBI Notification – May 28,
2012
We draw your attention to the RBI notification no RBI/2011-12/577 RPCD.CO. RCB.BC.No.
78/07.38.01/2011-12 dated
May 28, 2012.
Applicability:
All banks
Crux of
the Notification:
As
per this notification on obtaining a request from the depositor, the bank should
allow the closure of a term deposit, a deposit in the form of daily deposit or
recurring deposit, to enable the depositor to immediately reinvest the amount
lying in the aforesaid deposits with the same bank in another term deposit. The
bank shall pay interest in respect of such term deposit without reducing the
interest by way of penalty provided that the deposit remains with the bank
after reinvestment for a period longer than the remaining period of the
original contract.
In
order to facilitate better Asset Liability Management (ALM), it has been
decided to permit banks to formulate their own policies towards conversion of
deposits with immediate effect.
For further details
information please follow the below link
1(c) Uniformity in
Risk weight for assets covering PPP and post COD projects
RBI Notification – May 30,
2012
We draw your attention to the RBI notification no RBI/2011-12/581 DNBS.PD.CC.No.276/03.02.
089 /2011-12 dated
May 30, 2012.
Applicability:
All Infrastructure
Finance Companies
Crux of
the Notification:
The Reserve Bank, vide its notification No.DNBS.233/CGM(US)-2011 dated November 21, 2011
viz; Infrastructure Debt Fund-Non-Banking Financial Companies (Reserve Bank)
Directions, 2011 issued detailed guidelines with regard to regulation of
IDF-NBFCs.In terms of the Guidelines,for the purpose of computing capital
adequacy, IDF-NBFCs are permitted to assign a risk weight of 50 percent on
bonds covering PPP and post commercial operations date (COD) projects in
existence over a year of commercial operation.
2.In order to bring
uniformity in regulations in this regard, it has been decided to extend the
above reduction in risk weight to all Infrastructure Finance Companies (IFCs)
for assets covering PPP and post COD projects which have completed at least one
year of satisfactory commercial operations.
For further details
information please follow the below link
1 (d) Overseas Direct Investments by
Indian Party-
Online Reporting of Overseas Direct Investment in Form ODI
RBI Notification – May 31,
2012
We
draw your attention to the RBI notification no RBI/2011-2012/585 A.P. (DIR Series) Circular No.131
dated May 31, 2012.
Applicability:
Authorised
Dealer Banks
Crux of
the Notification:
1. All the authorized
dealers banks were advised about the operationalisation of the online reporting
system of overseas direct investments (ODI) with effect from March 2, 2010. The
system, inter alia enables
online generation of the Unique Identification Number (UIN).
2. Under the online
reporting system, AD Category – I banks could generate the UIN online under the
automatic route. However, reporting of subsequent remittances under the
automatic route as well as the approval route was to be done online in Part II
of form ODI, only after receipt of the letter from the Reserve Bank confirming
the UIN.
3. It has now been decided
to communicate the UIN in respect of cases under the Automatic Route to the ADs/Indian Party
through an auto generated e-mail to the email-id made available by the
AD/Indian Party. Accordingly, with effect from June 01,
2012 (Friday), the auto generated e-mail, giving the details of UIN
allotted to the JV / WOS under the automatic route, shall be treated as
confirmation of allotment of UIN, and no separate letter shall be issued by the
Reserve Bank to the Indian party and AD Category - I bank confirming the
allotment of UIN.
4. It may also be noted
that the subsequent remittances under the automatic route and remittances under
the approval route are to be reported online in Part II of form ODI, only after
receipt of the e-mail communication/confirmation conveying the UIN.
5. The applications in form
ODI for overseas direct investment under the approval route would continue to
be submitted to the Reserve Bank in physical form as hitherto, in addition to
the online reporting of Part I of the Form as contemplated in A.P. (DIR Series)
Circular No. 36 dated February 24, 2010.
For further details
information please follow the below link
MCA UPDATES
2(a) Guidelines for declaring a Financial Institution as
Public Financial Institution under section 4A of the Companies Act
MCA Circular – May 21,
2012
We
draw your attention to the MCA Circular no 10/2012 dated May 21, 2012.
Crux of
the Circular
On
fulfilling the following criteria’s a Financial Institution can be classified
as a Public Financial Institution under section 4A of the Companies Act
a.
A company or corporation should be
established under a special Act or the Companies Act, 1956 being a central act
b. Main business of the company should be
industrial/ infrastructural financing.
c. The company must be in existence for at least
3 years and its financial statements should show that its income from
industrial/ infrastructural financing activities exceeds 50% of tis total
income
d.
The net worth of the company should be
minimum of Rs. 1000 Crore
e.
The company is registered as an
Infrastructure Finance Company (IFC) with RBI or as a Housing Finance Company
(HFC) with National Housing Bank
Note:
NOC from
RBI/NHB, in the case of IFC/HFC with regard to supervisory concerns, if any,
must be obtained and enclosed with the application
For further details
information please follow the below link
