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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/2011-12/560
DPSS.CO.CHD.No. / 2080 / 03.01.03 / 2011-12 dated May 11, 2012
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Review of Service Charges for Cheque Collection –
Outstation and Speed Clearing
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All
Banks
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(b)
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RBI/2011-12/557
DNBS.PD.CC.No.274/03.02.089/2011-12
dated May 11, 2012
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Core Investment Companies (Reserve Bank)
Directions, 2011 – Clarification on CICs Issuing Guarantees
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All
Core Investment Companies
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(c)
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RBI/2011-12/556
DNBS.PD.
CC No. 273/03.10.01/2011-12 dated May 11, 2012
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Infrastructure
Finance Companies - Eligible Credit Rating Agencies - Brickwork Ratings India
Pvt. Ltd.
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All
Infrastructure Finance Companies
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(d)
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RBI/2011-12/553 RPCD.FSD.BC.No. 77/05.05.09/2011-12 dated May 11, 2012
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Revised Kisan Credit Card Scheme
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All
Scheduled Commercial Banks
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(e)
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RBI/2011-12/561 A.P. (DIR Series) Circular No. 126 dated
May 14, 2012
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Deferred
Payment Protocols dated April 30, 1981 and December 23, 1985 between
Government of India and erstwhile USSR
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Authorised
Dealer Banks
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(f)
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RBI/2011-12/562
A.P. (DIR Series) Circular No. 127 dated May 15, 2012.
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Foreign investment in NBFC Sector under the FDI
Scheme - Clarification
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Authorised
Dealer Banks
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(g)
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RBI/2011-12/564 A.P. (DIR Series) Circular No. 128 dated May 16, 2012
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Exchange Earner’s Foreign Currency (EEFC) Account
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All
Authorised Dealers in Foreign Exchange
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(h)
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RBI/2011-12/568 DBOD.BP.BC.No. 106/21.04.172/2011-12 dated May 18, 2012
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Bank Finance to NBFCs
Predominantly Engaged in lending against Gold
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All
Scheduled Commercial Banks
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(i)
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RBI/2011-12/567
UBD.BPD.
(PCB) CIR No.33/09.09.001/2011-12 dated May 18, 2012
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Priority
Sector Lending – Indirect Finance to Housing Sector
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All
Authorised Dealer Banks
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SEBI UPDATES
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2 (a)
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CIR/MIRSD/6/2012 dated May 14, 2012
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Review of Regulatory
Compliance and Periodic Reporting
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Merchant
Bankers
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RBI UPDATES
1(a) Review of Service
Charges for Cheque Collection – Outstation and Speed Clearing
RBI Notification – May 11,
2012
We draw your
attention to the RBI notification no RBI/2011-12/560 DPSS.CO.CHD.No. / 2080 / 03.01.03 / 2011-12 dated May 11, 2012.
Applicability:
All
Banks
Crux of the Notification:
As per circular number circulars DPSS.CO.No.611
/ 03.01.03(P) / 2008-09 dated October 8, 2008 and circular number DPSS.CO.CHD.No.
1671 / 03.06.01 / 2010-11 dated January 19, 2011, banks were given the freedom to determine
collection charges for cheques valuing above Rs. 1 lakh cleared through Speed
Clearing and Outstation Cheque Clearing mechanism subject to such charges being
levied in a fair and transparent manner.
The term fair and transparent manner, inter-alia, included fixing the
service charges on a cost-plus
basis and not on the basis of an arbitrary percentage to the
value of the instrument as advised in paragraph 6(b) of the said circular.
Purpose of this Notification
-
However, instances of banks levying charges as an
arbitrary percentage to the value of the instrument, contrary to the
instructions issued in the circular had been brought to the notice of the RBI.
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There by this circular re-enforces that the Banks,
which have fixed their service charges for out-station/speed clearing for
instruments valuing above Rs. 1 lakh as percentage to the value of instruments
are, therefore, advised to review the same and fix the charges on a cost-plus
basis.
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Banks are also required to ensure that collection
charges fixed for instruments valuing above Rs. 1 lakh is lower under Speed
Clearing vis-a-vis Out-station Cheque Collection as advised in paragraph 6(d)
of our circular dated January 19, 2011 so as to encourage the use of Speed
Clearing.
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Banks to incorporate the updated service charge
structure in the Cheque Collection Policy (CCP) and to notify the same to the customers
accordingly.
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The revised rates may also be placed on the bank's
web site and a copy thereof may be submitted to the RBI
For further details information please follow the below link
1(b) Core Investment Companies (Reserve Bank)
Directions, 2011 – Clarification on CICs Issuing Guarantees
RBI Notification
– May 11, 2012
We draw your attention to the RBI notification no RBI/2011-12/557 DNBS.PD.CC.No.274/03.02.089/2011-12
dated May 11, 2012.
Applicability:
All
Core Investment Companies
Crux of the Notification:
CICs
may be required to issue guarantees or take on other contingent liabilities on
behalf of their group entities. Before doing so, CICs must ensure that they can
meet the obligation thereunder, as and when they arise. In particular, CICs
which are exempt from registration requirement must be in a position to do so
without recourse to public funds in the event the liability devolves. If
unregistered CICs with asset size above Rs. 100 crore access public funds
without obtaining a Certificate of Registration (CoR) from RBI, they will be
seen as violating Core Investment Companies (Reserve Bank) Directions, 2011
dated January 05, 2011.
For further details information please follow the below link
1(c) Infrastructure Finance Companies - Eligible
Credit Rating Agencies - Brickwork Ratings India Pvt. Ltd.
RBI Notification
– May 11, 2012
We draw your attention to the RBI notification no RBI/2011-12/556 DNBS.PD.
CC No. 273/03.10.01/2011-12 dated May 11, 2012.
Applicability:
All
Infrastructure Finance Companies
Crux of the Notification:
As
per para 19A of the Master Circular number DNBS (PD) CC No.225 /
03.02.001 / 2011-12 dated July 1, 2011 on Non-Banking Financial (Non -
Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions, 2007, all Infrastructure
Finance Company shall have obtained a minimum credit rating 'A' or equivalent
of CRISIL, FITCH, CARE, ICRA or equivalent rating by any other credit rating
agency accredited by RBI.
In
this regard RBI has now been decided to permit NBFCs to get themselves rated
through Brickwork Ratings India Pvt. Ltd. (Brickwork) in addition to the
existing four domestic credit rating agencies.
For further details information please follow the below link
1 (d) Revised
Kisan Credit Card Scheme
RBI Notification
– May 11, 2012
We draw your attention to the RBI notification no RBI/2011-12/553 RPCD.FSD.BC.No. 77/05.05.09/2011-12 dated May 11, 2012.
Applicability:
All
Scheduled Commercial Banks
Crux of the Notification:
With a view to simplify and attune the Scheme to suit to current
requirements and to facilitate issue of Electronic Kisan Credit Cards, a
Working Group had submitted its recommendations based on which a revised Kisan
Credit Card (KCC) Scheme has been devised.
For further details information please follow the below link
1 (e) Deferred
Payment Protocols dated April 30, 1981 and December 23, 1985 between Government
of India and erstwhile USSR
RBI
Notification – May 14, 2012
We draw your attention to the RBI notification no RBI/2011-12/561 A.P. (DIR
Series) Circular No. 126 dated May 14, 2012
Applicability:
Authorised
Dealer Banks
Crux of the Notification:
As per the RBI notification April 23, 2012 the
Rupee value of the Special Currency Basket has been fixed at Rs.73.305676 with
effect from April 26, 2012.
The directions contained in this circular have
been issued under sections 10(4) and 11(1) of the Foreign Exchange Management
Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions /
approvals, if any, required under any other law.
For further details information please follow the below link
1 (f) Foreign
investment in NBFC Sector under the FDI Scheme - Clarification
RBI
Notification – May 15, 2012
We draw your attention to the RBI notification no RBI/2011-12/562 A.P. (DIR Series) Circular No. 127 dated
May 15, 2012.
Applicability:
Authorised
Dealer Banks
Crux of the Notification:
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It is clarified that the activity ‘leasing and
finance’, which is one among the eighteen NBFC activities wherein FDI up to 100
per cent is permitted under the automatic route, subject to minimum
capitalisation norms, covers only ‘financial leases’ and not ‘operating
leases’, in so far as the NBFC sector is concerned.
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Necessary amendments to Foreign Exchange Management
(Transfer or Issue of Security by a Person Resident Outside India) Regulations,
2000 (Notification No. FEMA 20/2000-RB dated May 3, 2000) are being notified
separately.
For further details information please follow the below link
1 (g) Exchange Earner’s
Foreign Currency (EEFC) Account
RBI
Notification – May 16, 2012
We draw your attention to the RBI notification no RBI/2011-12/564 A.P. (DIR
Series) Circular No. 128 dated May 16, 2012.
Applicability:
All
Authorised Dealers in Foreign Exchange
Crux of the Notification:
As
per the RBI circular no A.P. (DIR Series) Circular No. 124 dated May 10,
2012, 50% of the balances in the EEFC accounts should be converted
forthwith into rupee balances and credited to the rupee accounts as per the
directions of the account holder.
As
per this notification it is clarified that the conversion of the EEFC balances
into rupee balances will only be applicable to available balances in the EEFC
account which may be arrived at by netting off earmarked amounts on account of
outstanding forward / option contracts booked before May 10, 2012.
For further details information please follow the below link
1 (h) Bank Finance
to NBFCs Predominantly Engaged in lending against Gold
RBI Notification – May 18, 2012
We draw your attention to the RBI notification no RBI/2011-12/568
DBOD.BP.BC.No. 106/21.04.172/2011-12 dated May 18, 2012.
Applicability:
All
Scheduled Commercial Banks
Crux of the Notification:
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NBFCs which are predominantly engaged in lending
against collateral of gold jewellery (i.e. such loans comprising 50 per cent or
more of their financial assets) have recorded significant growth in recent
years, both in terms of their balance sheet size and physical presence. In view
of regulatory concerns arising out of the rapid pace of business growth and
concentration risk inherent in their business model, certain prudential
measures like limiting Loan to Value (LTV) Ratio, increasing the minimum Tier I
Capital requirement, prohibition on granting loans against bullion / primary
gold and gold coins and other operational guidelines have been prescribed for
NBFCs.
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The rapid expansion of NBFCs predominantly engaged
in lending against the collateral of gold jewellery has led to their increased
dependence on public funds, including bank finance. In order to supplement the
prudential norms prescribed for NBFCs as indicated in paragraph 3 above, banks
are advised to:
o
reduce their regulatory exposure ceiling on a
single NBFC, having gold loans to the extent of 50 per cent or more of its
total financial assets, from the existing 10 per cent to 7.5 per cent of banks’
capital funds. However, the above exposure ceiling may go up by 5 per cent, i.e., up to 12.5 per cent of
banks’ capital funds if the additional exposure is on account of funds on-lent
by NBFCs to the infrastructure sector. Banks which are currently having
exposure to such NBFCs in excess of the above regulatory ceiling would be
required to reduce their exposure within the prescribed limit at the earliest,
but not later than six months from the date of this circular; and
o
have an internal sub-limit on their aggregate exposures
to all such NBFCs, having gold loans to the extent of 50 per cent or more of
their total financial assets, taken together. The sub-limits should be within
the internal limit fixed by the banks for their aggregate exposure to all NBFCs
put together.
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As per the extant guidelines, ECB proceeds can be
utilized for permissible foreign currency expenditure and Rupee expenditure. On
a review, it has been decided that at the time of availing Loan Registration
Number (LRN) from the Reserve Bank, borrowers should provide bifurcation of the
utilization of the ECB proceeds towards foreign currency and Rupee expenditure
in Form-83.
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The primary responsibility is to ensure that the
ECB proceeds meant for Rupee expenditure in India are repatriated to India for
credit to their Rupee accounts with AD Category- I banks in India as per A.P. (DIR Series) Circular No. 52 dated
November 23, 2011 is that of the borrower concerned and any
contravention of the ECB guidelines will be viewed seriously and will invite
penal action under the Foreign Exchange Management Act (FEMA), 1999. The
designated AD bank is also required to ensure that the ECB proceeds meant for
Rupee expenditure are repatriated to India immediately after drawdown.
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The modifications to the ECB policy will come into
force with immediate effect and subject to review. All other aspects of the ECB
policy shall remain unchanged.
For further details
information please follow the below link
1 (i) Priority
Sector Lending – Indirect Finance to Housing Sector
RBI
Notification – May 18, 2012
We draw your attention to the RBI notification no RBI/2011-12/567 UBD.BPD.
(PCB) CIR No.33/09.09.001/2011-12 dated May 18, 2012.
Applicability:
All
Authorised Dealer Banks
Crux of the Notification:
Pursuant
to the announcements made by the Union Finance Minister in paragraph 65 of the
Budget Speech for the year 2012-13, it has been decided to increase the priority
sector lending limit from ` 5 lakh to ` 10 lakh. The revised
limit will be applicable to loans sanctioned from the date of this circular.
For further details information please follow the below link
SEBI
UPDATES
2 (a) Review of Regulatory Compliance and Periodic
Reporting
RBI
Notification – May 8, 2012
We draw your attention to the RBI circular no CIR/MIRSD/6/2012 dated May 14, 2012
Applicability:
Merchant
Bankers
Crux of the Notification:
1. SEBI (Merchant Bankers) Regulations,
1992 have been amended vide notification no. LAD-NRO/GN/2011-12/40/7335 dated March
29, 2012, a copy of which is available on SEBI website www.sebi.gov.in. With the said
amendment, merchant bankers are required to submit a periodic report in such
manner as may be specified by the Board from time to time. Further, in terms of
SEBI Circular No. MIRSD/DPS-2/MB/Cir-16/2008 dated May 06, 2008, merchant bankers
are required to submit half-yearly report in electronic form.
2. In order to strengthen the
compliance mechanism and the role of the Boards of Merchant Bankers, it has
been decided to review the reporting format. The revised format as given in the
Annexure includes the status of
regulatory compliance and investor grievances redressal.
3. The Boards of Merchant Bankers
shall, henceforth, review the report and record along with its observations on
(i)
the
deficiencies and non-compliances,
(ii)
corrective measures
initiated to avoid such instances in future,
(iii)
pre-issue
and post-issue due diligence process followed and whether they are satisfied
and
(iv)
track record
of past issues managed.
4. Accordingly, with effect from half
year ended March 31, 2012, the Compliance Officer of the Merchant Banker shall
send the report in the revised format to SEBI at mb@sebi.gov.in on half yearly
basis within three months of the expiry of the half year. The other terms and
conditions mentioned in the circular mentioned in Para
1 shall remain unchanged.
5. Further, merchant bankers are
required to report changes in their status or constitution in accordance with
Circular no. CIR/MIRSD/7/2011 dated June 17, 2011. The same information has
also been incorporated in the revised format.
6. This circular is issued in exercise
of powers conferred under Section 11(1) of the Securities and Exchange Board of
India Act, 1992, to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market.
For further details information please follow the below link
