|7.1.2015||StCBs/CCBs-Designated Director – Amendment to section 13(2) of Prevention of Money Laundering Act (PMLA) 2002||It was advised to State / Central cooperative banks to nominate a Director on their Boards as ‘Designated Director’ to ensure compliance with the obligations under the Prevention of Money Laundering (Amendment) Act, 2012 in the earlier circular in clarification to that, it is clarified that StCBs/CCBs can also designate a person who holds the position of senior management or equivalent as a ‘Designated Director’. but the Principal Officer cannot be nominated as the ‘Designated Director’.|
|FEMA.334/2015-RB||9.1.2015||Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Amendment) Regulations, 2015||RBI
amended the Foreign Exchange Management (Transfer or Issue of Security by a
Person Resident outside India) Regulations, 2000 whereby the invesment in
Pharmaceuticals sector has been revised with certian conditions and allowing
Brownfield 100% Government
|15.1.2015||Entry of Banks into Insurance Business||The notification states that banks may undertake insurance business by setting up a subsidiary/joint venture, as well as undertake insurance broking/ insurance agency/either departmentally or through a subsidiary subject to the conditions of "Guidelines for Banks undertaking Insurance Broking and Agency Business" it also states that if a bank or its group entities, including subsidiaries, undertake insurance distribution through either broking or corporate agency mode, the bank/other group entities would not be permitted to undertake insurance distribution activities, ie, only one entity in the group can undertake insurance distribution by either one of the two modes mentioned above.|
|16.01.2015||Review of Guidelines on Restructuring of Advances by NBFCs||The guidelines deals with the new cretaria for treatment of advances for restructuring by the NBFCs. The guidlines revise the date of commencement of commercial operations (DCCO) and consequential shift in repayment schedule for equal or shorter duration will not be treated as restructuring subject to conditions laid down in the Circular.|
|RBI/2014-15/413 DNBR.PD.CC.No.012/03.10.001/2014-15||19.01.2015||Flexible Structuring of Long Term Project Loans to Infrastructure and Core Industries||Amendment to the Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007|
A.P. (DIR Series) Circular No.59
|22.01.2015||Overseas Direct Investments by proprietorship concern / unregistered partnership firm in India||Notification provides for revised terms and conditions to be complied with for considering the proposal of Overseas Direct Investment, by a proprietorship concern / unregistered partnership firm in India, by the Reserve Bank under the approval route|
A.P. (DIR Series) Circular No. 61
|22.01.2015||Depository Receipts Scheme||A
new scheme called ‘Depository Receipts Scheme, 2014’ (DR Scheme, 2014) for
investments under ADR/GDR have been notified by the Central Government
effective from December 15, 2014 which provides for repeal of extant
guidelines for Foreign Currency Convertible Bonds and Ordinary Shares
(Through Depositary Receipt Mechanism) Scheme, 1993 except to the extent
relating to foreign currency convertible bonds.
The salient features of the new scheme are:
The securities in which a person resident outside India is allowed to invest under Schedule 1, 2, 2A, 3, 5 and 8 of Notification No. FEMA. 20/2000-RB dated 3rd May 2000 shall be eligible securities for issue of Depository Receipts in terms of DR Scheme 2014;
A person will be eligible to issue or transfer eligible securities to a foreign depository for the purpose of issuance of depository receipts as provided in DR Scheme 2014.
The aggregate of eligible securities which may be issued or transferred to foreign depositories, along with eligible securities already held by persons resident outside India, shall not exceed the limit on foreign holding of such eligible securities under the extant FEMA regulations, as amended from time to time.
The eligible securities shall not be issued to a foreign depository for the purpose of issuing depository receipts at a price less than the price applicable to a corresponding mode of issue of such securities to domestic investors under FEMA, 1999.
It is to be noted that if the issuance of the depository receipts adds to the capital of a company, the issue of shares and utilisation of the proceeds shall have to comply with the relevant conditions laid down in the Regulations framed and Directions issued under FEMA, 1999.
The domestic custodian shall report the issue/transfer of sponsored/unsponsored depository receipts as per DR Scheme 2014 in ‘Form DRR’ as given in Annex within 30 days of close of the issue/ program.
A.P. (DIR Series) Circular No.64
|23.01.2015||External Commercial Borrowings (ECB) Policy – Simplification of Procedure||Authorised Dealer (AD) are being notified of that the Category-I banks were invited and under the A.P. (DIR Series) Circulars powers have been delegated to them to deal with cases related to change in draw-down and repayment schedules of ECBs subject to conditions specified in the Circular|
DCBR.CO.LS (PCB) Cir.No.4/07.01.000/2014-15
|29.01.2015||Review of norms for classification of Urban Co-operative Banks (UCBs) as Financially Sound and Well Managed (FSWM)||The notification is in regards to the clarification to the defination of "regulatory comfort" under the circular issued in October 2014. The notification define regulatory comfort for the purpose of classification of an UCB as FSWM would now include compliance to the provisions of Banking Regulation Act, 1949 (AACS), Reserve Bank of India Act, 1934 and the instructions / directions issued by RBI from time to time i.e. the bank should have track record of regulatory compliance and no monetary penalty should have been imposed on the bank on account of violation of RBI directives / guidelines during the last two financial years.|