Please mention physical features of following denomination of notes/coins, approved by Reserve Bank of India /mint. Dimension of following denomination of notes/coins-
Rs. 1000, Rs. 500, Rs. 100, Rs. 50, Rs. 20, Rs. 10, Rs. 5, Rs. 2, Re. 1Coins Rs. 10, Rs.5, Rs. 2, Re. 1, Re. 1/50

Available information in the form it exists, about the size of contemporary banknotes in the denomination of Rs. 5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 in Mahatma Gandhi Series, may be accessed on the Bank's website www.rbi.org.in on the following link-

For common person>Extra Curricular>Currency Museum>Contemporary Bank Notes>Bank Notes

Information about Re 1 and Rs. 2 notes is not available with us.

Available information, in the form it exists, on dimension of some of the coins may be accessed on the Bank's website www.rbi.org.in on the following link-

Arrangements for minting of coins and printing of notes and names and addresses of agencies [Mints / Note Presses] in India

(i) Arrangements for minting of coins is done through the following Mints of Government of India:

Arrangements for printing of notes is done through the following Currency Presses:

Procedure & Terms of supply of new currency in various chests of banks

(i) As regards the procedure, allocation of notes and coins to Reserve Bank of India offices is made on the basis of indent placed to presses and mints. Offices of Reserve Bank of India arrange remittances to currency chests under their jurisdiction as per the periodical indents placed by the currency chests and stocks available with them as well as with the currency chest. Currency chest branches in turn supply notes and coins received from Reserve Bank of India offices to other branches linked to them. There are no terms and conditions.

What are the different forms and value of Rupee accepted as per Indian law?

When does an in-use rupee form become invalid or not acceptable? is there any Govt order that describes an invalid form of rupee?

Is a torn/damaged rupee note valid?

What damage will make rupee note invalid (eg complete torn apart note ,half torn note etc.?

What are various options available for one to follow to make an invalid rupee note valid.

Bank note/ coins are legal tender in payment or on account as indicated below:

The Central Government may, by notification in the gazette, declare that with effect from such date as may be specified, any series of bank notes of any denomination shall cease to be legal tender. Further, no person shall of right be entitled to recover from the Government or the Reserve Bank of India, the value of any lost, stolen, mutilated or imperfect currency note of Government of India or banknote. The value of imperfect / mutilated note may be refunded as a matter of grace subject to conditions and limitations.

Soiled bank notes (i.e. notes which have become dirty and due to excessive use or double numbered banknote cut into two pieces but on which both the numbers are intact) can be exchanged for full value at Reserve Bank of India or any commercial bank branch.

The public can get value of mutilated notes (i.e. notes which are torn,disfigured, burnt, washed, eaten by white ants etc.) as a matter of grace, as laid down in the RBI Note Refund Rules 1975 (as amended up to 1980) after adjudication. Currently, provisions exist for payment of full, half or no value as far as bank notes of Rs.10 and above are concerned. As regards Re.1/-, Rs.2/-, and Rs.5/- notes, the tenderer can get either full or no value depending upon the condition of the note. Mutilated notes can be tendered at Reserve Bank of India Offices/designated bank branches.

The following types of banknotes are not eligible for payment under RBI Note Refund Rules, 1975 (as amended up to 1980)

A banknote which is

• less than half the area of the full note.

• devoid of the major portion of the number on an undivided area i.e. the prefix and three digits or four digits of the number in banknotes up to and inclusive of Rs.5/- in respect of banknotes of Rs.10/- and above where this inadequacy is present at both the numbering panels.

• Cancelled by any office of Reserve Bank of India or against which the value has already been paid.

• found to be forged / counterfeit.

• Deliberately cut or tampered, carrying extrinsic words or visible representation intended to convey or capable of conveying any message of a political character
  
  Notes can be exchanged / tendered for adjudication over the counters of Reserve Bank of India Offices/designated bank branches. Mutilated notes can be sent by post for adjudication to the nearest Issue Office of Reserve Bank of India.

Instructions given by RBI to banks regarding exchange of mutilated notes.

Information on instructions given to banks on exchange of mutilated notes is in our Master Circular- "Facility for exchange of Notes and Coins" available at http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3671&Mode=0 on our website.

Are 25 paise and 50 paise coins withdrawn from circulation?

The 25 paise and 50 paise coins are legal tender and are not withdrawn from circulation. They may be validly used/ accepted for all transactions. RBI has issued press release to that effect and has also issued instructions to banks to display at all branches, boards/notices for information of customers/ general public to the effect that all 25 and 50 paise coins continue to be valid/legal tender and may be used for transactions in the normal course.

Detailed policy of the Reserve Bank of India for release of advertisements in Media

The Department of Communication [DoC] prepares a panel of approved advertising agencies for use by all the Regional Offices and Central Office Departments of the Reserve Bank of India. The Advertising Agencies have to meet a detailed eligibility criteria prescribed by the RBI for being considered for empanelment. Whenever an advertisement has to be inserted in the print / electronic media, the work is assigned to an empanelled advertisement agency on rotation basis. The agencies are required to execute the work assigned to them as per the time schedules prescribed by the RBI.

The work of releasing advertisements through the media is decentralized. Except for advertisements involving large budgets and creativity, which are coordinated by the DoC, the Central Office Departments of the RBI and the Regional Offices issue advertisements locally through one of the advertisement agencies on the approved panel.

1.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a savings bank account holder of the bank?

If any Indian Bank fails in terms of Section 16(1) of the DICGC Act, 1961 “ the liability of the Corporation in respect of an insured bank will be limited to the deposits as on the date of the cancellation of the registration”.

Each depositor in a bank is insured up to a maximum of ₹1,00,000/-(Rupees One Lakh) for deposits either in savings account, current account or fixed deposits held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

If more than one deposit accounts (Savings, Current, and Recurring or Fixed deposit) are jointly held by individuals in one or more than one branch of a bank and if their names appear in the same order, then these joint accounts are considered as held in same capacity and same right. Accordingly, the balances held in all these accounts will be aggregated for the purpose of determining the insured amount within the limit of Rupees one lakh only and is paid after setting off any amount legally entitled to be recovered from the depositor by the bank.

However, in terms of revised guidelines issued on April 26, 2007, if individuals open more than one joint accounts in which their names are not in the same order or group of persons are different ,then the deposits held in these joint accounts are considered as held in different capacity and different right. Accordingly insurance cover will be available separately up to Rupees one lakh only to every such account where the names are appearing in different order or names are different. This has been explained in detail in the illustration. (Annex)

Insurance is extended only to the cash deposits held by the depositors of insured banks.

2.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a Current holder of that bank?

3.

If any Indian bank fails, what is the minimum and maximum amount to be paid to a fixed deposit account holder of that bank?

4.

In case of dacoits or fire incident in the bank , what will be the amount of compensation to be paid to a locker holder in lieu of his belongings (gold silver jewellery) kept in the locker of that bank?

As detailed in the “Frequently Asked Questions” link on the Reserve Bank of India website (http://www.rbi.org.in/scripts/ FAQView.aspx?Id=39), the Reserve Bank decides the volume and value of banknotes to be printed each year. The quantum of banknotes that needs to be printed, broadly depends on the requirement for meeting the demand for banknotes due to GDP growth, replacement of soiled banknotes, inflation and reserve stock requirements. This estimation is done with the help of statistical models/techniques.

The Government of India decides the quantity of coins to be minted on the basis of indents received from the Reserve Bank. Although coins of all denominations are issued by the government, they are put into circulation through the Reserve Bank. The Reserve Bank is the sole authority for issuing banknotes in India under Section 22 of the Reserve Bank of India Act, 1934. It also derives the role of currency management from the above act.

The currency operations are carried out through its 18 issue offices, one sub-office at Lucknow, a currency chest at Kochi and a wide net work of currency chests. These offices receive fresh banknotes from the banknote printing presses. The issue offices of the Reserve Bank send fresh banknote remittances to the designated branches of commercial banks. Once the bank notes are released into the banking system, they form a part of the currency in circulation, which is the liability of the Issue Department of the Reserve Bank.

Section 34 (l) of the RBI Act requires that all bank notes issued by the Reserve Bank since April 1, 1935 and the currency notes issued by the Government of India before the commencement of operations of the Reserve Bank, be part of the liabilities of the Issue Department which stood at ₹12,016.24 billion as on June 30, 2013, including notes in circulation of ₹12,016.16 billion (Table 1).

The eligible assets of the Issue Department for backing its currency liabilities consist of gold (coin and bullion), foreign securities, rupee coin, Government of India securities, internal bills of exchange and other commercial papers.

Though printing of money per-se is not inflationary, the injection of the same in to the banking system could lead to rise in prices. It may be mentioned in this context, presently the Reserve Bank does not directly monetise fiscal deficit by participating in government securities auctions (primary bond market).

The Reserve Bank however, could influence money supply by changing short-term interest rates (which impact currency demand) or by open market operations (by impacting funds available to the banking sector).

From where can I procure the History of Reserve Bank of India publication and what is its cost? Please mention full address and phone number of the person whom I can contact to procure the above said publication?

The Reserve Bank of India History 1935 – 1981 (3 volumes) is available at leading book stores in India. It can also be purchased by sending cheques / draft drawn in favour of Reserve Bank of India payable at Mumbai and sent to

Director
Division of Reports and Knowledge Disemination
Department of Economic and Policy Research
Reserve Bank of India, Amar Building
Sixth floor, P.M.Road, Fort, Mumbai 400 001.
Phone: 022-22603000 Extn: 4609
Click here to send email

The price of the three volume set is Rs. 3700/- (including postal charge).

The list of major publications published by Department of Economic Policy Research is given below:

1. RBI Bulletin

2. Weekly Statistical Supplement (WSS)

3. Annual Report

4. Report on Trend and Progress of Banking In India

5. State Finances: A Study of Budgets

6. Report on Currency and Finance

7. Working Papers (published on RBI website only)

8. Occasional Papers

9. DRG Studies

Subscription process for the monthly RBI Bulletin and the Weekly Statistical Supplement is as follows:

*The price of a single copy without postage for regular subscription is Rs. 260 and for concessional subscription is Rs. 200.
@ Available for research students, full time teachers, academic institutions and public libraries in India. The Reserve Bank of India Bulletin is also available on Internet at http://www.bulletin.rbi.org.in
Payments should be made by Demand Draft / Crossed Cheque / pay Order drawn in favour of Reserve Bank of India and payable at Mumbai only. The forwarding letter enclosing DD / Crossed Cheque / Pay Order should be addressed to:
The Director, Division of Reports and Knowledge Dissemination, Department of Economic and Policy Research, Reserve Bank of India, Amar Building, 6th Floor, P.M.Road, Fort, Mumbai 400 001. Ph: 022 22603000 Extn. 4609 Fax: 022 22632110

Click here to send email

As mentioned under 1, CAD is compiled on a quarterly basis

Which factors influencing price of gold in India

Since India imports gold from international market, its domestic prices (in India) are largely influenced by international gold prices. In addition to international price of gold, importer has also to pay customs duty of 10 per cent on value of imported gold which gets added to final local price of gold in India. Apart from these two major factors, there could be some impact of domestic demand and supply factors, which might be impacting local price of gold in India.

The international price of gold has increased significantly since 2005-06 which were broadly reflected in trend in domestic gold prices as well. High gold prices, both in international and domestic market, in turn impacted India’s import of gold in these years. This eventually led to stress in India’s balance of payments as current account deficit (CAD) widened in recent years. India’s CAD widened from US$ 48.1 billion in 2010-11 to US$ 78.2 billion in 2011-12 and US$ 88.2 billion in 2012-13. High CAD had also put downward pressure on rupee exchange rate against dollar in 2012-13 and Q1 of 2013-14. However, a sharp decline in international gold prices in 2013-14, along with various measures undertaken by the Government and the Reserve Bank helped in reducing gold imports during 2013-14. With lower imports, India’s CAD also narrowed sharply to US$ 32.4 billion in 2013-14. In recent months, rupee exchange rate against dollar has also stabilised.

Table 1: Gold Prices

I. As per Section 3 (a) of the Foreign Exchange Management Act (FEMA), 1999, save as otherwise provided in FEMA, 1999, rules or regulations made thereunder, or with the general or special permission of the Reserve Bank, no person shall deal in or transfer any foreign exchange or foreign security to any person not being an authorised person.

II. As per Section 5 and 6 of the Foreign Exchange Management Act (FEMA), 1999, any person may sell or draw foreign exchange to or from an Authorised Person for permitted current and capital account transactions.

III. As per Regulation 4 read with Schedule I of the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000 [Notification no. FEMA 25/2000-RB dated May 3, 2000], a person, whether resident in India or resident outside India, may enter into a foreign exchange derivative contract with an authorised dealer only. List of authorised dealers is available on the following link: https://www.rbi.org.in/scripts/category.aspx

IV. As per this list, the broker providing forex trading platform is not an authorised dealer.

V. As per Para 3(1) of the Electronic Trading Platforms (ETP) (Reserve Bank) Directions, 2018 [Notification No.FMRD.FMID.08/2018 dated October 05, 2018], no entity shall operate an ETP without obtaining prior authorisation of the RBI under these directions. The link is as follows: https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=11385&fn=6&Mode=0

VI. Platform referred in the RTI is not authorised under the Electronic Trading Platforms (Reserve Bank) Directions, 2018.

VII. Also, please refer to the press release (2010-2011/1196 dated February 21, 2011) on ‘RBI Advisory on Overseas Forex Trading through Electronic/ Internet Trading Portals’, available on the bank’s website at https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=23941

VIII. As regards permitted currency pairs:

i. Currency pairs permitted in cash/tom/spot transactions: As per Para 5 and 6 of the Foreign Exchange Management Act (FEMA), 1999, residents may buy or sell foreign exchange for permitted current and capital account transactions. Therefore, the currency pair of the Forex transaction shall be in line with the currency in which the underlying current/capital account transaction is denominated.

ii. Currency pairs permitted in derivative transactions:

a. In OTC market transactions: As per the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000 [Notification no. FEMA 25/2000-RB dated May 3, 2000] read with Master Direction-Risk Management and Inter-Bank Dealings dated July 05, 2016 (as updated from time to time), residents may undertake foreign exchange derivative transactions involving INR for the purpose of hedging exchange rate risk on transactions permissible under the FEMA, 1999. Foreign exchange derivative transactions not involving INR can be undertaken for purpose other than hedging. There is no restriction on currency pair in both these cases. Please refer to the following link: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=10485&fn=6&Mode=0

b. In exchange traded derivative transactions: As per the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000 [Notification no. FEMA 25/2000-RB dated May 3, 2000] read with Currency Futures (Reserve Bank) Directions, 2008 [Notification No. FED.1/DG(SG)-2008] dated August 6, 2008, as amended from time to time, and the Exchange Traded Currency Options (Reserve Bank) Directions, 2010 [Notification No. FED.01 / ED (HRK) - 2010] dated July 30, 2010, as amended from time to time, residents are permitted to enter into currency futures and options contracts in USD-INR, EUR-INR, GBP-INR, JPY-INR, EUR-USD, GBP-USD and USD-JPY on the stock exchanges recognised by the Securities and Exchange Board of India (SEBI) in India. Please refer to the following links:
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=4410&Mode=0
https://rbi.org.in/Scripts/NotificationUser.aspx?Id=5913&Mode=0
https://www.rbi.org.in/scripts/FS_Notification.aspx?Id=10172&fn=5&Mode=0

i. Resident persons are permitted to undertake forex transactions only with authorised persons and for permitted purposes, in terms of the Foreign Exchange Management Act, 1999 (FEMA). List of authorised persons is available on the following link: https://www.rbi.org.in/scripts/category.aspx.

ii. Further, as per Para 3 (1) of the Electronic Trading Platforms (ETP) (Reserve Bank) Directions, 2018 [Notification No.FMRD.FMID.07/2018-19, dated October 05, 2018], no entity shall operate an ETP without obtaining prior authorisation of the RBI under these directions. List of ETPs authorised by the RBI is available on the following link: https://rbi.org.in/scripts/bs_viewcontent.aspx?Id=4080.

iii. Also, please refer to RBI Press Release (2021-2022/1660) dated February 03, 2022 and Press Release (2022-2023/835) dated Sep 07, 2022 available on the RBI website at https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53216 and https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=54333 respectively.  You may also refer to Frequently Asked Questions (FAQs) on forex transactions available on the RBI website at  https://rbi.org.in/Scripts/FAQView.aspx?Id=146 for guidance.

Why citizen of India in Indian Territory allowed to use app and website of Binary transaction in foreign exchange and contract for deference?

In terms of circular RPCD.CO.MSME & NFS.BC.40/06.02.31/2012-2013 dated November 1, 2012 all Scheduled Commercial banks were advised to put in place a Non-discretionary One Time Settlement scheme for recovery of non-performing loans for the MSE sector, duly approved by the Board of Directors. The circular is available on our website www.rbi.org.in.

Reserve Bank of India vide its Circular RPCD.PLNFS.BC.N. 83/ 06.12.05/2000-01 dated April 28, 2001 on ‘Educational Loan Scheme’ had forwarded the Model Education Loan Scheme prepared by Indian Banks’ Association (IBA), for implementation by all Scheduled Commercial Banks (SCBs). The scheme has since been modified by IBA from time to time. The Scheme provides broad guidelines to the banks and implementing bank will have the discretion to make changes suiting to the convenience of students/parents etc. The scheme can be accessed at IBA’s website.

What are the guidelines pertaining to PMEGP scheme?

The PMEGP Scheme was formulated by Government of India and circulated by Reserve Bank of India. Vide its circular RPCD.PLNFS.BC.41/09.04.01/2008-2009 dated October 10, 2008, which is available on our website www.rbi.org.in.

RBI permission for carrying samples while proceeding on business promotion tours abroad.

No permission or approval of the Reserve Bank of India is required for carrying samples as baggage, while traveling abroad. However, applicant may check with Customs Authorities regarding applicability of Customs Baggage Rules

1. Eligibility of borrower under Automatic Route of ECB for the purpose of importing capital goods (Fishing Vessels).

2. Whether terms with the lender (Foreign supplier of Equipment) related to debt servicing are in conformity with RBI guidelines.

3. Can any department or Ministry of Government of India other than RBI or Ministry of Finance set additional conditions in this matter? Has RBI delegated any authority to any other Ministry to interfere in this procedure or only RBI is the sole authority in this matter?

Eligibility of borrower is laid down in A.P. (DIR Series) Circular No.5 dated August 1, 2005 which is available on our website www.rbi.org.in at the link http://rbidocs.rbi.org.in/rdocs/notification/PDFs/65065.pdf

Terms of debt have to be in conformity with A.P. (DIR Series) Circular No.5 dated August 1, 2005.

External Commercial Borrowing (ECB) Policy is framed by Government of India in consultation with Reserve Bank of India. Government of India, Ministry of Finance has delegated authority to administer ECB Policy to Reserve Bank of India. ECB can be raised for end-uses specified in the policy. However, transactions like import are governed by the respective policies e.g. Foreign Trade Policy of the Directorate General of Foreign Trade. In other words, if further approval or permission is required from any other regulatory authority or Govt under the relevant laws/regulations, the applicant should take the necessary approval of the concerned agency before effecting the transaction.

Whether any permission / approval / registration is required from RBI in case of royalty to a Foreign company by an Indian company in consideration of a Trade mark / Franchise Agreement ? If yes, what are the terms and conditions for the same?

Whether there is any notification / regulation governing the payment of royalty to a Foreign Company by an Indian Company to acquire the trademark rights of the foreign company?

Whether there is any restriction on the payment of royalty to the parent foreign companies and payment of royalty for use of TRADE MARK and brand name / Franchise rights without technology transfer under the automatic route of Reserve Bank of India?

Permission from Reserve Bank of India is not required.

The instructions/clarification on purchase of Trademarks for use in India/ payment of Royalty is given in terms of the AP Circular No 14 dated November 28, 2006 and item number 8 of Sch. II to FEM (CAT) Rules, 2000. AP (DIR Series) Circular No. 76 dated February 24, 2004 is placed on our website at the link http://rbidocs.rbi.org.in/rdocs/notification/PDFs/74403.pdf and http://rbidocs.rbi.org.in/rdocs/notification/PDFs/51521.pdf respectively.

RBI guidelines to Indian Residents for purchase of residential property abroad

RBI guidelines on whether Banks operating in India are allowed to give Housing loan for such transactions

The revised guidelines are , the Indian Residents can purchase an immovable property outside India up to a ceiling limit of USD 2,00,000 per financial year under Liberalised Remittance Scheme (LRS).

In terms of paragraph 4 of A.P.(Dir.Series) circular no.51 dated May 8, 2007,
(available on our website at http://rbidocs.rbi.org.in/rdocs/notification/PDFs/77185.pdf)
Authorised Dealers (Banks in India) are not allowed to extend any kind of credit facilities to Resident Individuals to facilitate remittances under the LRS.

After returning to India after three years, whether an NRI can maintain, hold and operate the foreign currency accounts, which were opened abroad during his stay abroad

Whether such an NRI, during his stay abroad for three years, can open a foreign account abroad jointly along with a close relative such as his mother, who is a resident of India.

As per Sub-section (4) of Section 6 of Foreign Exchange Management Act, 1999, a person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.

As regards holding such foreign account jointly with resident of India, it is not permissible as the pre-condition for opening such foreign account is that the account is opened when the person was resident outside India.

(a) "Is it essential for a Foreign citizen availing "Home Loan" from any Bank / Commercial Bank within India to obtain a permission / No-Objection Certificate from the Reserve Bank of India?"

(b) "What are the other rules / regulations imposed by the Reserve Bank of India for them to avail of Home loans from any Bank /commercial Bank within India?

Foreign nationals of non-Indian origin and resident outside India require specific prior approval of the Reserve Bank of India for acquisition of immovable property. Further, it may be mentioned that under the general permission available, the following categories can freely purchase immovable property in India:

i) Non-Resident Indian (NRI)- that is a citizen of India resident outside India

ii) A foreign national of Indian Origin or Person of Indian Origin (PIO)- that is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who

a. at any time, held Indian passport, or

b. who or either of whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India.

(b) If the applicant is a 'person resident in India' in terms of Section 2 (v) of Foreign Exchange Management Act, 1999, he/she does not require the Reserve Bank of India approval from Foreign Exchange Management Act angle for purchase of immovable property in India.

Instructions/guidelines/documentation regarding availing Home loan are decided by the commercial bank granting loan.

" Can a NRI open a foreign account during his stay abroad, initially in his single name and then add his family member's name"

In terms of Regulation 3 of FEMA Notification No.10/2000-RB dated May 3, 2000, no person resident in India shall open or hold or maintain a foreign currency account, provided further that the Reserve Bank of India(RBI) may on an application made to it, permit a person resident in Ida to open or hold or maintain a foreign currency account subject to such terms and conditions as may be considered necessary. Accordingly, the resident in India will have to approach RBI for our specific approval for our opening/holding/maintaining a foreign currency account with a NRI outside India. As such a resident in India requires RBI approval to open a foreign currency account outside India along-with an NRI.

Do banks signing contracts for derivatives trade in foreign currency with foreign banks, require RBI permission?

Are banks authorised to trade in derivative product in foreign currency without having written a derivative contract for Corporate or SMEs?

Are Banks to Banks derivatives contracts permitted by RBI without permission?

Is it mandatory for banks to inform RBI for the amount hedged in foreign currency in derivative trade written within stipulated period. Is it mandatory to inform about the nature of Derivative product written?

Any guidelines issued by RBI for foreign currency derivatives contract or agreements.

Can a Corporate/ SMEs be allowed to enter into agreement for sell of foreign currencies without permission from RBI? Are banks permitted to buy foreign currency from corporate/SMEs?

If without any underlying a derivative is written by Indian Banks with Foreign banks, can it be termed Speculative Trade in foreign currencies or not?

If any records submitted to RBI by the following banks, relating to Foreign exchange transaction written by them under Derivatives…

No. Inter bank foreign exchange dealings are permitted freely subject to Board approved policy and limits for treasury functions of which open position and aggregate gap limits are required to be approved by RBI.
Yes.

Yes. Inter bank transactions are permitted without Reserve Bank of India permission.

No. It is not mandatory to report back to back trades in foreign currency.

The guidelines for foreign currency derivative contracts are outlined in the Master Circular 'Risk Management and Inter Bank Dealings" dated July 1, 2008, available on our website: www.rbi.org.in under 'Notification'. However, if you desire to obtain a hard copy of the circular, you may arrange to pay Rs.102/-(Rs.2/- X 52 pages) towards photocopying charges by DD/Bankers' Cheque/PO drawn in favour of Reserve Bank of India(RBI)or deposit cash, at any of the RBI offices.

Yes. A corporate /SME may sell/buy foreign currency in respect of a transaction permitted under the Foreign Exchange Management Act, 1999.

No. Because Authorised Dealer banks are free to undertake forex transactions with banks overseas for adjustment of own position or for initiating trading positions in the overseas markets.

Trade by trade transactions are not reported to Reserve Bank of India by the banks. However, the Foreign Turnover Data reported by banks, contains forwards and swaps and is reported on a weekly basis in the Weekly Statistical Supplement which is published on our website: www.rbi.org.in under Publications< Weekly.

Non – Resident Indians have been granted general permission under Regulation 3 of Notification No FEMA 21/2000 – RB dated May 3, 2000, for acquisition / transfer of immovable property other than agriculture land, farmhouse, plantation – property in India provided the same is in terms of the aforesaid Regulations. For repatriation / remittance of sale proceeds you may please refer to Regulation 6 of Notification ibid read with Notification No FEMA 13/ 2000 – RB dated May 3, 2000. This information is available on our website www.rbi.org.in (Homepage > Notification > FEMA > Notification).

NRI/ PIO have following two options for their current income:

1. Remit outside India
2. Transfer/ credit to NRE A/c

Whereas in case of balance held in NRO A/c- only remittance outside India is permitted and transfer / credit to NRO A/c is not permitted.

Please inform, is an exporter allowed to sell goods on:

(A) 360 days credit from the date of Bill of Lading.

And

(B) If not then, up to 180 days credit from the date of bill of lading of such exports.

In terms of Section 8 of FEMA 1999 any amount of foreign exchange due or accrued is required to be realized and repatriated to India within such period and in such manner as may be specified by the Reserve Bank. Further, in terms of Notification No. FEMA 176 / 2008-RB dated July 23, 2008 (Export of Goods and Services) the period of realization / repatriation is 12 months from the date of export (copy enclosed).

The present instructions are as under;

(i) Units located in Special Economic Zones (SEZs) – period of realization / repatriation is 12 months from the date of export in terms of A. P. (DIR. Series) Circular No.108 dated June 11, 2013 (copy enclosed).

(ii) Goods exported to a warehouse established outside India – period of realization / repatriation is 15 months in terms of Regulation 9 of Notification No. FEMA 23 / 2000–RB dated May 03, 2000 (Export of Goods and Services) (copy enclosed).

(iii) Status Holder Exporters – period of realization / repatriation is 12 months in terms of A. P. (DIR. Series) Circular No.35 dated April 01, 2002 (copy enclosed).

(iv) 100% Export Oriented Units and units set up under EHTPs / STPs / BTPs – period of realization / repatriation is 12 months in terms of A. P. (DIR. Series) Circular No.25 dated November 01, 2004 (copy enclosed).

(v) In cases where exporters not falling within the above categories have to realize and repatriate the export proceeds within a period of 9 months from the date of export in terms of A. P. (DIR. Series) Circular No. 105 dated May 20, 2013 read with A. P. (DIR. Series) Circular No.14 dated July 22, 2013 (copies enclosed).

(i) I am an Indian and I perform my business abroad.

(ii) While returning from abroad I have foreign currency.

(iii) Can I deposit my foreign currency in form of cash in my EEFC (Exchange Earners Foreign Currency) Account at any authorised Bank in India?

Our comments on issues raised are :

(1) In terms of Regulation 4 (i) of Notification No. FEMA 14 / 2000-RB dated May 03, 2000; payment for export may also be received in foreign currency notes from a buyer during his visit to India, provided the foreign currency so received is surrendered within the specified period to the AD Bank. (copy enclosed)

(2) Further, deposits in the EEFC Account can only be in the form of permissible credits to such an account as per Regulation 4 of Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2000 notified vide Notification No.FEMA.10/2000-RB dated 3rd May, 2000. (copy enclosed)

A reference may be invited to the provisions under Regulation 6A of the Notification No. FEMA.120/RB-2004 dated July 07, 2004, as amended from time to time.

Available at Link: http://rbi.org.in/Scripts/BS_Fema Notifications.aspx?Id=2126

Presently, what is the yearly rate of interest / return on savings accounts in banks?

The Reserve Bank has deregulated the savings bank deposit interest rate with effect from October 25, 2011. Banks are now free to determine their savings bank deposit interest rate, subject to the following conditions:

(i) First, each bank will have to offer a uniform interest rate on savings bank deposits up to Rs. 1 lakh, irrespective of the amount in the account within this limit

(ii) Second, for savings bank deposits over Rs.1 lakh, a bank may provide differential rates of interest, if it so chooses. However, there should not be any discrimination from customer to customer on interest rates for similar amount of deposit.

Factors leading to increasing and decreasing of interest rate?

The Reserve Bank deregulated the interest rates on advances above Rs.2 lakh effective October 18, 1994. Effective July 1, 2010, banks are free to determine interest rates on all rupee advances (irrespective of the amount) with the approval of their respective Boards, subject to condition that all rupee advances should be only at or above their Base Rates. Further, interest rates on term deposits were deregulated by the Reserve Bank effective October 22, 1997 and savings deposits effective October 25, 2011. In a deregulated environment, banks are, therefore, free to determine their interest rates both on deposits and advances based on their commercial judgment.

Banks determine their interest rates on loans by taking into consideration various factors such as cost of funds, operational expenses, minimum margin to cover regulatory requirements of provisioning and capital charge, profit margin, customer / product specific charges, risk premia, term premia, etc. The movement in the Reserve Bank’s repo rate (key policy rate for signaling the monetary policy stance) also guides banks in deciding their interest rates.

I request you to please furnish me the following Reserve Bank of India’s monetary policy key rates, from 01.04.2011 to 31.03.2014 with dates from which these rates have become applicable for the banks in India.
1. Bank Rate
2. MSF Rate
3. Repo Rate
4. Reverse Repo Rate
5. CRR
6. SLR

The historical data, including the period from 01.04.2011 to 30.03.2014, in respect of Bank Rate, MSF Rate, Repo Rate, Reverse Repo Rate, CRR and SLR are available on the website of the Reserve Bank at http://dbie.rbi.org.in under tab ‘Key Rates’. As such the information sought by you is already available in the public domain.

You may please refer to

(i) the Fifth Bi-monthly Monetary Policy Statement, 2016-17 dated December 7, 2016
(https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38818);

(ii) the First Bi-monthly Monetary Policy Statement, 2017-18 dated April 6, 2017
(https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=40069);

(iii) the Second Bi-monthly Monetary Policy Statement, 2017-18 dated June 7, 2017
(https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=40685);

(iv) the paper on “Macroeconomic Impact of Demonetisation - A Preliminary Assessment”, prepared by the staff of the RBI (https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/MID10031760E85BDAFEFD497193995BB1B6DBE602.PDF);

(v) RBI Mint Street Memo on “Demonetisation and Bank Deposit Growth” dated August 11, 2017
(https://rbi.org.in/Scripts/MSM_Demonetisation.aspx);

(vi) RBI Mint Street Memo on “Financialisation of Savings into Non-Banking Financial Intermediaries” dated August 11, 2017
(https://rbi.org.in/Scripts/MSM_FinancialisationofSavings.aspx)

And

(vii) RBI Bulletin article on “Impact of Demonetisation on the Financial Sector”, RBI Bulletin, November 2017
(https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=17201).

Frequently Asked RIA Queries

Query: RBI is decreasing repo rate, but my bank is not decreasing interest on my home loans. Why?

Reply: Effective October 18, 1994, the Reserve Bank of India has deregulated interest rates on Rupee advances above Rs.2 lakh of commercial banks. Further, effective July 1, 2010, rupee lending rates on advances up to Rs.2 lakh were also deregulated. As such, interest rates on all types of advances (fixed and floating interest rates) are decided by banks based on their commercial judgment subject to the general guidelines that banks should follow for setting interest rates.

Query: Information regarding lending rates by SCBs from 2003 to 2019.

Reply: The Benchmark Prime Lending Rate (BPLR) system was introduced by the Reserve Bank in 2003. Bank-wise data on BPLR are available on a quarterly basis since March 2003 on RBI’s website under tab ‘Site Map’ at the hyperlink: https://www.rbi.org.in/rbi-sourcefiles/lendingrate/LendingRates.aspx

After opening the link please go to “Explanatory note for data from the quarter ended June 2002 to June 2010” → “Bank wise data”.

The data on the Base Rate, which replaced the BPLR system in July 2010 are available from the quarter ended September 2010 onwards at the hyperlink:
https://rbidocs.rbi.org.in/rdocs/Publications/PDFs/TABLE748F7AFE946F494B4C96F88D7D63D35258.PDF

The data on MCLR, which replaced the earlier Base Rate system in April, 2016 are available at the hyperlink: https://rbi.org.in/rbi-sourcefiles/lendingrate/LendingRates.aspx

After opening the link please go to “Bank-wise data”.

Query: Change in policy rate by RBI since 2003

Reply: The information on changes made in the policy repo rate from time to time is available on the website of the Reserve Bank of India www.rbi.org.in at the tab Statistics – Data Base on Indian Economy – Key Rates. (URL: https://dbie.rbi.org.in/DBIE/dbie.rbi?site=home)

Query: Interest charged by banks on housing loan.

Reply: The required data on interest rates on housing loans are available since March 2012 onwards in RBI Annual Report published by RBI every year. The reports may be available in the following link: URL https://rbi.org.in.

After opening the link please go to ‘Publications’ → ‘Annual’ [for Annual report 2018-19 (chapter III titled ‘Monetary Policy Operations’)] → ‘Table III.3: Sector-wise WALR of SCBs (Excluding RRBs) - Outstanding Rupee Loans’.

The latest data on sector wise lending rates are available for the month of August 2019 in Monetary Policy Report published by RBI. The reports may be available in the following link: URL https://rbi.org.in.

After opening the link please go to ‘Publications’ → ‘Half-Yearly’ → ‘Monetary Policy Report’ [for Monetary Policy Report- October 2019 (chapter IV titled ‘Financial Markets and Liquidity Conditions’)] → ‘Chart IV.21: Sector-wise WALR relative to 1-Year Median MCLR- August 2019’.

Time frame prescribed by the Reserve Bank of India to different banks for clearance of local and outstation cheques.

Prescription of penalty by the Reserve Bank of India for non-clearance of cheques in the prescribed time frame

Definition and explanation of terms 'local' and 'outstation' in the context of cheque clearance by the Reserve Bank of India.

The Reserve Bank of India(RBI) has advised banks to frame their own Cheque Collection Policies (CCPs) in respect of local and outstation cheques which should include explicit mention of time frame for collection of both local and outstation cheques.

Banks have been further advised vie our circular DPSS.CO.(CHD)No.873/03.09.01/2008-09 dated November 24, 2008 to modify their CCPs in accordance with orders of the National Consumer Disputes Redressal Commission in the case No.82 of 2006 on Delays in Cheque Clearing.

Accordingly, for local cheques debit and credit shall be given on the same day or at the most the next day of their presentation in clearing. Timeframe for collection of outstation cheques drawn on state capitals/major cities/ other locations should be 7/10/14 days respectively. This timeframe is the outer limit and credit shall be afforded if the process gets completed earlier.

If there is any delay in collection beyond the prescribed period, interest at the rate specified in the cheque collection policy of the bank, shall be paid. In case the rate is not spcesified in the CCP, the applicable rate shall be the interest rate on fixed deposits for the corresponding maturity. The link to the CCP of banks has been hosted on our website www.rbi.org.in.

Local cheques are those cheques that are drawn on branches within the jurisdiction of the Local Clearing House. All other cheques would be outstation cheques. However, there are cheques called multicity cheques and at par cheques which are payable in all cities where the drawee bank has a branch irrespective of the city on which it is drawn.

Provide the details of information, guidelines, circulars, notifications and regulations made by Reserve Bank of India in chronological order for scheduled and private banks operating in India, using OTP via phone IVR and mobile phone technology for any kind of financial as well as monetary transactions to make it more convenient and secured as a system.

RBI has issued the following guidelines to make card transactions more secured:

(i) Requirement of additional factor of authentication for online transactions except Interactive Voice Response (IVR) transactions was enabled, vide, circular RBI / DPSS NO. 1501 / 02.14.003 / 2008 - 2009 dated February 18, 2009. This circular has been placed on RBI website at the link
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=4844&Mode=0

(ii) Requirement of additional factor of authentication/validation extended to IVR transaction with effect from February 1, 2011 vide, circular DPSS .CO. NO. 1503 / 02.14.003 / 2010 - 2011 dated December 31, 2010. This circular has been placed on the RBI website at the link
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6185&Mode=0

(iii) Requirement of online alerts to customers for all types of card transaction at all channels irrespective of the amount was made applicable, vide, circular DPSS. CO. PD. 2224 / 02.14.003 / 2010 - 2011 dated March 29, 2011. This circular has been placed on the RBI website at the link
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6309&Mode=0

ATM transaction is failed due to technical/network problem. Amount is not dispensed but account is debited in such circumstances. What are the rules for refund/credit of such amount? Such refund should be made within how many days?

Banks have been advised by the Reserve Bank of India, vide, circular DPSS. PD. No. 2632 / 02.10.002 / 2010 - 2011 dated May 27, 2011 that:

1. Effective from July 1, 2011, banks have to reimburse the customers, the amount wrongfully debited on account of failed ATM transactions within a maximum period of 7 working days from the receipt of the customer complaint.

2. Banks have to pay customers Rs. 100/- per day for delays beyond 7 working days from the date of receipt of the complaint.

If the complaint is not lodged within 30 days of transaction, the customer is not entitled for any compensation for delay in resolving his / her complaint.

1. The date of implement of new cheques with printed name and account of cheque owner in the recognized Banks.

Reserve Bank of India vide its circular DPSS.CO.CHD.No./ 1112 / 04.07.05 / 2011-12 dated December 27, 2011 advised all banks providing cheque facility to their customers to issue only 'CTS-2010' standard cheques across the country by September 30, 2012. Account number in such cheques should be pre-printed for current account holders and corporate customers and as far as possible to other category of customers.

However, printing the name of the account holder was not mandated by Reserve Bank of India. RBI circular issued in this regard (DPSS.CO.CHD.No. 1832 / 04.07.05 / 2009-10 dated February 22, 2010) may be referred for the purpose.

Copies of the circulars referred to above are available on the website of Reserve Bank of India under the following links :
http://www.rbi.org.in/scripts/ NotificationUser.aspx?Id=6901&Mode=0

2. The old cheques got issued prior to the date of implement of new cheques (i.e. during the year 2006) from the recognized Banks are applicable or not after the date of implement of new cheques.

Reserve Bank of India vide its circular DPSS.CO.CHD.No.133/04.07.05/2013-14 dated July 16, 2013 notified that cheques which are not complying with CTS-2010 standards would continue to be valid but will be cleared at less frequent intervals from January 1, 2014 as detailed in paragraph 2(a) of the above referred circular.

Copy of the circular referred to above is available on the website of Reserve Bank of India under the following link:

3. If not applicable, kindly arrange to intimate the date of disapplicable / disimplement of old cheques along with instruction, if any.

(i) DBOD. Leg. No.BC.104/09.07.007/2002-03 dated May 5, 2003 on ‘Guidelines on Fair Practices Code for Lenders’.

(ii) DBOD.No.Leg.BC.65/09.07.005/2006-07 dated March 6, 2007 on ‘Guidelines on Fair Practices Code for Lenders’.

(iii) DBOD.No.Leg.BC.28/09.07.005/2007-08 dated August 22, 2007 on ‘Guidelines on Fair Practices Code for Lenders- Furnishing Copy of Loan Agreement’.

(iv) DBOD.No.Leg.BC.86 /09.07.005/2008-09 dated November 25, 2008 on ‘Guidelines on Fair Practices Code for Lenders- Disclosing all information relating to Processing Fees /Charges’.

(v) DBOD.Leg.No.BC.61/09.07.005/2010-11 dated November 12, 2010 on ‘Guidelines on Fair Practices Code for Lenders- Disclosing all information relating to processing fees /charges’.

Also, you may refer to circular DBR.Leg.No.BC.64/09.07.005/2014-15 dated January 22, 2015 on ‘Display of Information by Banks’. (The aforementioned circulars are available on our website www.rbi.org.in under the link ‘Notifications’)

Norms for classifying borrowal accounts of Urban Co-operative Banks as NPAs?

Norms for classification of borrowal accounts as NPAs is provided in our Master Circular UBD(PCB)Cir.No.1/09. 140.00/05-06 dated July 4, 2005 on Income Recognition, Asset Classification and Provisioning, which is available on our website under the title ‘Notifications’

RBI guidelines on merger/ amalgamation of urban co-operative banks (UCBs)?

RBI guidelines on merger/amalgamation of UCBs are available in our circulars No.UBD(PCB)Cir.36/ 09.169.00/2004-05 dated February 2, 2005, and Circular No. UBD(PCB)Cir.18/09.169. 00/2005-06 dated November 22, 2005. These circulars are available on our website at http://rbi.org.in/scripts/Notification User.aspx

Whether a co-operative bank is registered under SARFAESI Act with Reserve Bank of India as a “Securitisation Company” and/or “Securitisation Creditor”? Whether such a bank can automatically become Securitisation Company/Creditor merely on it being registered as a banking company under Banking Regulation Act, 1949 with Reserve Bank of India? Whether such a bank is required to renew its Certificate every year as contemplated under SARFAESI Act? Whether the bank is required to approve a person to be appointed as “Authorised Officer”? Whether such a person is required to be registered as contemplated under SARFAESI Act?

Co-operative Banks fall within the definition of “secured creditor” under SARFESI Act by virtue of the definition contained in section 2(1)(c )(v) of the Act in view of the notification No. S O.105(E) dated 28th January, 2003 of the Central Government declaring “Co-operative Bank” as defined in clause (cci) of section 5 of Banking Regulation Act, 1949 to be a bank for the purposes of SARFAESI. Section 13 of SARFAESI Act, 2002, authorizes the secured creditors to enforce any security interest created in favour of it by the borrower without the intervention of the Court or Tribunal in accordance with provisions of the Act. As a co-operative bank is not a Securitisation Company, the questions regarding renewal of certificate, appointment of “Authorised Officer”, application for registration, etc., would not be relevant.

The query as to whether enforcement of security interest by a secured creditor is required to be registered with “Central Registry” is an issue relating to the interpretation of the provisions of the Act and it is not “information” covered under the Right to Information Act. Reserve Bank does not hold information regarding the exercise of powers by the said bank under section 13(4) of the Act. A reference is also drawn to Section 20 of the Act. Such Central Registry contemplated under the Act would not be a part of the Reserve Bank. It is also clarified that the Central Government has so far not issued any notification to set-up the Central Registry.

(i) The validity period of Co-operative Banks’ pay order?

(ii) Whether co-op banks have the right to withdraw or deposit the amount in customer's saving account without his permission?

(i) Bank’s pay order is basically a bankers’ cheque and hence valid for six months.

(ii) Every bank frames saving bank rules. Deposits/withdrawals into the account (SB Account) are subject to these rules. Banks generally debit SB account with cheque book charges, account maintenance charges, etc.

List of names of scheduled urban co-op banks operating in Maharashtra state

The information is available on the website at www.rbi.org.in/scripts/sitemaps.aspx

RBI guidelines to Co-operative Banks on premature withdrawal of deposits

Paragraph 8 of the Master Circular no 1 dated July 2,
2007 (on our website at http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode
=0&Id=3691) and a Circular UBD(PCB) 78/DC.V.(B) 92-93 dated May 26, 1993 may be referred.

Information on Loan waiver details under Agricultural Debt Waiver and Debt Relief (ADWDR) Scheme, 2008

Copy of rules for monitoring proper implementation of said scheme.

List of documents bank/ Farmer need to submit to government after receiving loan waiver amount.

Copy of rules used to take action against bank if bank failed to provide certificate of debt waiver of debt relief and also failed to take acknowledgement from farmer

Para 4 of our circular RBI/2007-2008/348 UBD.PCB.Cir.No. 50/13.05.000/07-08 dated June 2, 2008 which is available in the website of Reserve Bank of India under the tab ‘Notifications’.

RBI has not prescribed any documents required to be submitted to government by the farmer after receiving the loan waiver amount. The responsibility of the banks under the scheme are given in the circular(s):
(1) UBD.PCB.Cir.No.43/13.05.000/2007-08 dated May 23, 2008
(2) UBD.PCB.Cir.No.50/13.05.000/2007-08 dated June 2, 2008.
The circulars are available in the website of Reserve Bank of India under the tab ‘Notifications’.

Please refer to our circular RBI/ 2012-13/ 381 UBD.BPD.PCB.Cir.No.31/13.05.000/2012-13 dated January 15, 2013 which is available in the website of Reserve Bank of India under the tab ‘Notifications’.

Which delegated authority from Reserve Bank of India has power to cancel the license of the Bank? Please provide us the Name and Address of such authority.

Guidelines as to under which circumstances, a Bank’s banking license can be cancelled.

The Executive Director in charge of Department of Co-operative Bank Regulation (DCBR) of Reserve Bank of India has power to cancel the license of the Co-operative Bank. The Address is as under:

The Executive Director, Department of Co-operative Bank Regulation, Reserve Bank of India, 17th Floor, Central Office Building, Shahid Bhagat Singh Road, Fort, Mumbai-400001.

As per Section 22 (4) of the B. R. Act, 1949 (As Applicable to Co-operative Societies (AACS)), The Reserve Bank may cancel a licence granted to a co-operative bank:

(i) if the co-operative bank ceases to carry on banking business in India; or

(ii) if the co-operative bank at any time fails to comply with any of the conditions imposed upon it under sub-section (1) of the Section 22 of the B.R. Act, 1949 (AACS); or

iii) if at any time, any of the conditions referred to in sub-section (3) of the Section 22 of the B.R. Act, 1949 (AACS) is not fulfilled.

Provided that before cancelling a license under clause (ii) or clause (iii) of sub-section 4 of Section 22(4) of the B.R. Act, 1949 (AACS) on the ground that the co-operative bank has failed to comply with or has failed to fulfill any of the conditions referred to therein, the Reserve Bank, unless it is of opinion that the delay will be prejudicial to the interests of the co-operative bank's depositors or the public, shall grant to the co-operative bank on such terms as it may specify, an opportunity of taking the necessary steps for complying with or fulfilling such condition.

KYC Procedures are carried out on all customers of a bank. The guidelines/instructions issued to Urban Cooperative Banks and DCCBs/ StCBs on Know Your Customer (KYC) Norms/ Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT) / Obligation of Banks under Prevention of Money Laundering Act (PMLA), 2002 upto July 1, 2014 have been consolidated in the Master Circular dated UBD.BPD.(PCB).MC.No.16/12.05.001/2013-14 dated July 1,2014 & RPCD.RRB.RCB.AML.BC.No.02/07.51.018/014-15 dated July 1, 2014. Instructions issued subsequently are available in Circulars UBD.BPD. (PCB).Cir.No.2/14.01.062/2014-15 dated July 2, 2014, RPCD.RRB.RCB.AML.BC.No.12/07.51.018 /2014-15 dated July 3, 2014, RPCD.RRB.RCB.AML.BC.No.14/07.51.018/2014-15 dated July 21, 2014, UBD.BPD.(PCB).Cir.No.5/14.01.062/2014-15 dated August 5 2014, RPCD.RRB.RCB.AML.BC.No.31/07.51.018/2014-15 dated September 9, 2014, RPCD.RRB.RCB.AML.No.2797/07.51.018/2014-15 dated September 9, 2014, UBD.BPD (PCB).Cir.No.15/14.01.062/2014-15 dated September 16, 2014, UBD.BPD.(PCB).Cir.No.16/14.01.062/2014-15 dated September 16, 2014, UBD.BPD.(PCB).Cir.No.22/14.01.062/2014-15 dated October 22, 2014 UBD.BPD.(PCB).Cir.No.23/14.01.062/2014-15 dated October 22, 2014, RPCD.RRB.RCB.AML.BC.No.39/07.51.018 /2014-15 October 31, 2014 and RPCD.RRB.RCB.AML.No.4424/07.51.018/2014-15 dated October 31, 2014.

All circulars are available on our website www.rbi.org.in under the link 'notifications'.

The information sought is available in our Master Circular UBD.BPD.(PCB).MC.No.11/13.01.000/2014-15 dated July 1, 2014 on Interest Rates on Rupee Deposits – Primary (Urban) Co-operative Banks and Master Circular UBD.BPD.(PCB).MC.No.5/13.05.000/2014-15 dated July 1, 2014 on Management of Advances – UCBs which are available on our website www.rbi.org.in under the link 'notifications'.

These instructions are also applicable to banks placed under Directions in terms of section 35 A of Banking Regulation Act, 1949 subject to the terms and conditions mentioned in the Direction imposed.

Please see the Master Circular on Management of Advances UBD.BPD.(PCB) MC No.5/13.05.000/2014-15 dated July 01, 2014

Circulars on interest rates on loans and advances issued to State/Central Co-operative Banks are as follows:

i) RPCD.CO.RF.BC.No.93/07.38.01/2006-07 dated May 16, 2007
ii) RPCD.CO.RF.BC.No.78/07.38.01/2008-09 dated December 19, 2008
iii) RPCD.CO.RF.BC.No.29/07.38.01/2010-11 dated November 19, 2010

The above Circulars are also available on our website https://rbi.org.in under ‘Notifications’.

Total NPA of all banks under your control from time balance on your record, till 30th June 2015.

Give separate details of all PSU, Private Sector and Cooperative Banks details separately and year wise pending of NPA on your record till 30th June, 2015.

Any action taken against any directors or top officials of bank in recovery negligence of NPA and how much amount recovered.

Any action taken against bank’s Directors or top officials adopted false procedure to give loans to big corporate which ends to NPA.

The information on total NPAs of all Urban Co-operative Banks is available on RBI website https://www.rbi.org.in/ under Publications → Annual → Trend and Progress of Banking in India.

The information sought in respect of Urban Co-operative Banks is exempted under Section 8(1) (a) of the Right to Information Act, 2005.

Action taken against the management of the bank including the Board of Directors (BoD) for any act of omission or commission comes within the purview of RCS/CRCS in case of Uni-state and Multi state UCBs, respectively.

Action taken against the management of the bank including the Board of Directors (BoD) for any act of omission or commission comes within the purview of RCS/CRCS in case of Uni-state and Multi state UCBs, respectively.

Regional Office-wise lists of all Scheduled and Non-Scheduled Urban Co-operative Banks which are currently in operation, with their Head Office addresses, are available on RBI website www.rbi.org.in at:

Scheduled Urban Co-op. Banks

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/schedulecoop.pdf

Non-Scheduled Urban Co-op. Banks

https://rbidocs.rbi.org.in/rdocs/Content/pdfs/nonschedulecoop.pdf

(Path: Home Page → Consumer Education and Protection → For Common Person → Useful Information → Financial Agents → Banks in India → Co-operative Banks-Scheduled Urban Co-operative Banks and Non-Scheduled Urban Co-operative Banks)

Inspecting officers are not appointed. Officers posted in DCBS (Regional Offices and Central Office) are deputed for carrying out the inspection. As such it is not an appointment but assignment of a task.

There is no separate list of inspecting officers as any officer from Assistant Manager to General Manager may be assigned with the said task.

Information pertaining to Urban Cooperative Bank is available on the RBI website. Applicant can access the said information at:

http://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications

followed by path:
Primary (Urban) Co-operative Banks' Outlook > 2014-15 > Data Tables > Table 7 - Non-Performing Assets of UCBs

What are pre closure charges on all loan taken in bank, NBFC and Co-operative banks?

Need specific information all types of loan accounts were pre closure charges are levied.

Need specific guidelines of pre closure charges on mortgage loans.

Reserve Bank of India has not prescribed any pre-closure charges on loans, including mortgage loans for co-operative banks. However, we have issued guidelines vide circulars UBD.BPD.(PCB)CIR No.41/12.05.001/2011-12 dated June 26, 2012 and UBD.CO.BPD.PCB.Cir.No.64/12.05.001/2013-14 dated May 26, 2014 prohibiting urban co-operative banks from levying foreclosure charges/ pre-payment penalties on all floating rate home loans and floating rate term loans sanctioned to individual borrowers respectively.

In this regard, please refer to following circulars issued by Reserve Bank of India to State/Central Cooperative Banks

1. RPCD.CO.RF.BC.No.78/07.38.01/2008-09 dated December 19, 2008.
2. RPCD.CO.RF.BC.No.29/07.38.01/2010-11 dated November 19, 2010.
3. RPCD.CO.RCBD.BC.No.84/03.03.01/2011-12 dated June 15, 2012.
4. RPCD.CO.RCBD.BC.No.102/07.51.013/2013-14 dated May 27, 2014.

Regarding Reserve Bank of India instructions to cooperative banks on settlement of claims in respect of accounts without the survivor/nominee clause, please refer to Para 6.3 of our Master Circular DCBR.CO.BPD. (PCB).MC. No. 6/13.01.001/2015-16 dated July 1, 2015 on Maintenance of Deposit Accounts.

The above mentioned Master Circular can be downloaded from our website www.rbi.org.in under the link ‘Notifications’→ Master Circulars→ Co-operative Banking.

Information on credit and deposit of cooperative banks can be accessed from “Report on trend and progress of banking in India” on RBI website. Link for the same is given below.

https://rbi.org.in/Scripts/AnnualPublications.aspx?head=Trend and Progress of Banking in India

With regard to foreclosure charges for Urban Cooperative Banks, you may please refer to our Circulars UBD.BPD. (PCB)CIR. NO. 41/12.05.001 /2011-12 dated June 26, 2012 and UBD.CO.BPD. PCB.No.64/12.05.001/2013-14 dated May 26, 2014.

With regard to foreclosure charges for State and Central Cooperative Banks, you may please refer to Circulars RPCD. CO.RCBD.RRB.BC. No.102/07.51.013/2013-14 dated May 27, 2014 and RPCD. CO. RCBD. BC. No. 84/03.03.01/ 2011-12 dated June 15, 2012

The above circulars are available on our website under the link https://www.rbi.org.in/Scripts/NotificationUser.aspx

You may refer to the following circulars issued to Cooperative Banks:

1. RPCD.Co.RCBD.BC.No.34/07.38.03/2011-12 dated November 24, 2011.
2. RPCD.Co.RCB.BC.No.36/07.51.010/2014-15 dated October 22, 2014 of Para No. 10.1.3 and 10.2 on Customer Service
3. DCBR.CO.BPD. (PCB) MC. No.15 /12.05.001/2015-16 dated July 01, 2015 & Para 25 (Annex IV)

The above Circulars are available on Reserve Bank of India’s website www.rbi.org.in under ‘’Notifications”.

What are the guidelines and rules issued to cooperative banks regarding recording of inheritor (nomination) in case of Fixed Deposit by a senior citizen.

What are the guidelines and rules issued to cooperative banks regarding payment of Fixed Deposits to the inheritor (nominee) of the deceased depositor?

1. RPCD.CO.RF.BC.No.12/07.38.01/2005-06 dated July 12, 2005
2. RPCD.CO.RF.BC.No.70/07.38.01/2006-07 dated April 12, 2007
3. RPCD.CO.RF.BC.No.96/07.38.01/2008-09 dated April 13, 2009
4. RPCD.CO.RCB.BC.No.53/07.51.010/2012-13 dated December 24, 2012.

The above mentioned circulars are available on our website www.rbi.org.in under the link ‘Notifications’.

KYC के पूरा न होने पर बैंक खाता धारक के विरुद्ध किस प्रकार कार्यवाही करते हुए खाता बंद/फ्रीज़ कर सकता है की जानकारी ।

क्या बैंक बिना सूचना के खाता बंद या फ्रीज़ कर सकता है की जानकारी।

The Non-Banking Financial Companies are lending cash against gold deposits and collecting interest against the loan amount. How much percentage of the cost of the gold deposited can be given as loan and what shall be the interest to be collected against the loan according to the Reserve Bank of India’s specifications.

In terms of extant instructions, Non-Banking Financial Companies (NBFCs) are required to maintain a Loan-to-Value (LTV) ratio not exceeding 75 percent for loans granted against the collateral of gold jewellery.

The interest rates charged by NBFCs are governed by the terms and conditions of the loan agreement entered into by the borrower and the NBFC. The Reserve Bank has not specified any interest rate that can be charged by any NBFC. However, in order to ensure transparency in such matters, the NBFCs have been advised by the Reserve Bank to adopt a Fair Practice Code with the approval of their Boards. They are also advised to lay out appropriate internal principles and procedures in determining interest rates and other charges. The latest circular issued to NBFCs on Fair Practices Code is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code. http://rbi.org.in/scripts/BS_ViewMasterCirculardetails.aspx

The Reserve Bank has not prescribed any ceiling on interest rate that can be charged by an NBFC. The interest rate chargeable, on all loans including loans against Gold Ornaments, is governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC. However, in order to ensure transparency in such matters, the NBFCs have been advised by the Reserve Bank to adopt a Fair Practices Code (FPC) with the approval of their Boards. The latest circular issued to NBFCs on FPC is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code

Available at the link: http://rbi.org.in/scripts/ BS_ViewMasterCirculardetails.aspx

Instructions in regard to rate of interest chargeable on all types of loans including loans against security of Gold Ornaments are consolidated in our Master Circular on the Fair Practices Code referred to above.

All loans, including loans against the security of Gold/gold ornaments, granted by NBFCs, registered with the Reserve Bank of India under Section 45-IA of the RBI Act, 1934, are governed by the provisions of the said Act and the guidelines issued in this regard by the Reserve Bank.

Our guidelines with regard to auction of jewellery, in the event of non-repayment of loans, are available in Para C of our above referred circular, read with para V of our circular DNBS.CC.PD.No.356 / 03.10.01/ 2013-14 September 16, 2013 on Lending Against Security of Single Product – Gold Jewellery, which is available on our website www.rbi.org.in > Sitemap > NBFC List > NBFC Notifications.

Available at the link: (http://rbidocs.rbi.org.in/rdocs/ Notification/PDFs/CCN356160913L.pdf)

The Reserve Bank has not prescribed maximum and minimum duration of loans and the periodicity for compounding of interest on loans granted by NBFC against any kind of security including Gold ornaments. The Non-banking Financial Companies have discretion to determine the duration and the periodicity of compounding of interest on the loans granted. However, the rate of interest disclosed should be annualised rate so that the borrower is aware of the exact rate that would be charged to the account.

Which of the Foreign or Indian, Private banks, NBFC, Financial Institute and the Banks/ NBFC and here quotd Bank or NBFC can charge compound interest (cumulative interest)? If they can charge cumulative interest then RBI or which of it's Department or Department of Non-Banking Supervision (DNBS) or which Authority has been permitted to charge this? Particularily which Bank / NBFC can charge cumulative interest and express in detail the permission given to them?

(1) Citi Financial Consumer Finance India Ltd. called as “Citi Financial”, (2) HDFC Bank Ltd., (3) Kotak Mahindra Bank Ltd., (4) Kotak Mahindra Prime Ltd., (5) Reliance Capital Ltd., (6) Barclays Bank Ltd., (7) ICICI Bank Ltd., (8) India Bulls.

Non-Banking Financial Companies (NBFC) are registered with the Reserve Bank under Section 45 IA of the RBI Act, 1934. The Reserve Bank has not prescribed any specific interest rate that should be charged by NBFCs or “cumulative interest”. The interest rates charged by NBFCs are governed by the terms and conditions of the loan agreement entered into between the borrower and the NBFC. Further, our Master Circular on this subject (Fair Practices Code) states that “The NBFCs should convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise, amount of loan sanctioned along with the terms and conditions including annualised rate of interest and method of application thereof and keep the acceptance of these terms and conditions by the borrower on its record.”

In order to ensure transparency in such matters, NBFCs have been advised by the Reserve Bank to adopt a Fair Practices Code with the approval of their Boards. The latest circular issued to NBFCs on Fair Practices Code is Master Circular DNBS (PD) CC No. 340/03.10.042/2013-14 dated July 1, 2013 which is available on our website www.rbi.org.in > sitemap > Master Circulars – Fair Practice Code at the link http://rbi.org.in/scripts/BS_ViewMaster Circulardetails.aspx?did=333

The Department of Non-Banking Supervision regulates and supervises the Non-Banking Financial Companies and has issued the above guidelines to them.

Is it permissible for a non-banking financial company (NBFC) to carry on business without registering with the Reserve Bank of India? If not, and if a NBFC carries on such business, what action would be taken against such a company?

As per Section 45 IA of the Reserve Bank of India Act, 1934, no NBFC shall commence or carry on the business of non-banking financial institution (NBFI) without obtaining certificate of registration (CoR) from the Reserve Bank of India. Business activities to be carried on by such NBFCs are provided under Section 45 I(c) of the RBI Act, 1934. The Reserve Bank of India may take appropriate action against any person (NBFC) contravening the provisions of RBI Act, 1934 and the Directions issued there under.

What are the businesses that a company which is registered as a Residuary Non-Banking Company (RNBC) with RBI can undertake?

A company registered as a RNBC is defined as a non-banking institution, in terms of the Residuary Non-Banking Companies (Reserve Bank) Directions, 1987. RNBCs are companies which receive any deposit under any scheme or arrangement, by whatever name called, in one lumpsum of in installment by way of contributions or subscriptions or by sale of units or certificates or other instruments, or in any other manner and which, according to the definitions contained in the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, or as the case may be, the Miscellaneous Non-Banking Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1977, is not

1. an equipment leasing company
2. a hire purchase finance company
3. a housing finance company
4. an insurance company
5. an investment company
6. a loan company
7. a mutual benefit company
8. miscellaneous non-banking company, and
9. a mutual benefit company.

Does law permit a NBFC governed by RBI rules to disburse loan amt by cash/ through bearer cheque

The mode of disbursal of loan amounts by NBFCs is not governed by RBI regulations. As regards the business practices of NBFCs, these are matters of contract between the NBFC and the borrower and therefore the loan transaction between the borrower and NBFC is regulated by the terms and conditions of the contract. Any grievances in this regard can be raised before the appropriate courts (both civil and criminal) including the local Consumer Forums, as you may deem fit. We may also add that no guidelines have been issued by Reserve Bank relating to vehicle financing by NBFCs.

Rules and Regulations to form a Banking and Non Banking Financial Organizations

As far as Non – Banking Financial companies (NBFC) are concerned, as per Section 45 – IA (1) of Reserve Bank of India Act, 1934, no NBFC shall commence or carry on business of a non – banking financial institution without –

(a) Obtaining a certificate of registration; and

(b) Having the net owned fund (NOF) of rupees twenty - five lakh or such other amount, not exceeding rupees two hundred lakh.

Currently, an NBFC requires NOF of Rs 200 lakh to be eligible for registration as a non banking financial institution and you may refer to RBI's website, www.rbi.org.in ( go to Sitemap>NBFC list>Forms/returns) for other details and specimen application form for certificate of registration to commence / carry on the business of a non- banking financial institution by a company and the requirements to be complied with and documents to be submitted to RBI by NBFCs for obtaining Certificate of Registration from RBI.

3. As regards query about licensing of new bank, at present RBI is not considering any request for opening of new banks in the private sector. As and when RBI considers it necessary to invite applications for opening of new banks in the private sector, a public announcement indicating the detailed norms for setting up a bank will be made. The same will also be made available on the RBI website www.rbi.org.in

4. Banks are regulated by Reserve Bank of India under provisions of the Banking Regulation Act, 1949 and Reserve Bank of India act, 1934.

"Does the money lending business under hire purchase require registration / permission from RBI; if yes under what provision of law?"

Granting of License/ permission for money lending activity is under the jurisdiction of concerned State Governments. In case any non-banking financial activity (e.g. hire purchase and leasing) is to be undertaken, such activity cannot be commenced or carried on without a Certificate of Registration from RBI as per Section 45 IA of RBI Act, 1934.

Are Non-Banking Finance Companies (NBFC) in India allowed to give loans to NPA accounts of nationalized and private banks?

NBFCs lend based on their own credit appraisal mechanism.

Whether they are regulated to a point of Rate of Interest charged by them? Or they can charge whatsoever they would like to under the guidelines of honorable RBI?

Rate of Interest on loans is a contractual obligation between NBFC and borrower. RBI has not issued any guidelines in this regard. However, the Board of each NBFC has to adopt an interest rate model taking into account relevant factors such as cost of funds, margin and risk premium, etc and determine the rate of interest to be charged for loans and advances. NBFC cannot charge interest that are seen to be excessive. The rate of interest should be annualized rates so that the borrower is aware of the exact rates that would be charged to the account. Further, the rate of interest and the approach for gradations of risk and rationale for charging different rate of interest to different categories of borrowers has to be disclosed by the NBFC to the borrower or customer in the application form and communicated explicitly in the sanction letter.

In addition, the Board of the NBFC has to adopt Fair Practice Code issued by the Bank vide Master Circular DNBS(PD) CC No. 340 / 03.10.042/ 2013-14 dated July 1, 2013 which deals, inter alia, with transparency in interest rates charged to the borrower.

If a NBFC is charging any amount of ROI to any client then can a complaint can be made, if yes to whom?

Grievances can be addressed to the Grievances Redressal Officer of the company. In case the NBFC does not respond, the matter can be taken up with the concerned Regional Office of the Department in whose jurisdiction the company is registered.

1. What is purpose of categorization of CA firms for Branch Statutory Audits of banks

The purpose of categorization of CA firms for Branch Statutory Audits of banks is to enable the banks to allot the branches to the extent possible, to the audit firms taking into consideration their category and audit experience in such a way that larger branches are audited by bigger/experienced audit firms.

2. What are the Ranges of Advances to particular category of CA firms for allotment of Branch Statutory Audits

No range of advances to particular category of CA firms for allotment of Branch Statutory Audits has been prescribed by RBI.

3. What is Unique Code Number

Unique Code Number is allotted by the Institute of Chartered Accountants of India to audit firms. Since The Institute of Chartered Accountants is a public authority as defined in section 2(h) of the Right to information Act 2005, you may consider approaching them for the required information.

4. What is the system to allot Unique Code Number

1. Why was the “no frills” account converted to the ‘Basic saving Bank Deposit Account’?

What is the system to allot Unique Code Number

The rationale for the conversion is spelt out in para 88 of Monetary Policy Statement of RBI for 2012-13 announced on 17.04.2012 which is as under:

“Financial inclusion has been high on the agenda of the Reserve Bank. With a view to providing fillip to this concept, banks were advised, in November 2005, to make available a basic banking ‘no-frills’ account with either ‘nil’ or very low minimum balance as well as charges that would make such accounts accessible to vast sections of the population. The nomenclature of the account in this manner has tended to signify that these accounts are opened more with a view to indicating achievement of numerical targets under the financial inclusion plans. On a review, it has been decided to modify the guidelines on opening of basic banking ‘no-frills’ accounts with a view to doing away with the stigma associated with the nomenclature and making the basic banking facilities available in a more uniform manner across the banking system. Accordingly, it is proposed that:

• banks should offer a ‘basic savings bank deposit account’ with certain minimum common facilities and without the requirement of minimum balance to all their customers.”