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Domestic Deposits

II. Deposits of Non-Residents Indians (NRIs)

16. Whether concessional rate of interest is applicable when loan against FCNR(B) deposit is repaid in foreign currency? +

Banks have freedom to fix the rate of interest chargeable on loans and advances against FCNR(B) deposits to the depositors without reference to their Benchmark Prime Lending Rate (BPLR) irrespective of whether repayment is made in Rupees or Foreign Currency.

Biennial survey on Foreign Collaboration in Indian Industry (FCS)

Some other important points to be noted

Q16. How to identify the reporting company? +

Ans.: Please read the definitions of foreign subsidiary, foreign associate, Pure Technical Collaboration and accordingly select the type of reporting company. Further, if you have chosen “Others” in identification of reporting company, please specify.

Retail Direct Scheme

Know Your Customer (KYC) related queries

16. How does the video KYC process work? +

Upload a scanned copy of your PAN card.
Download the XML version of your Aadhaar from the UIDAI website and upload it. Use the 4-digit pin specified while downloading XML version.
Provide address details, scanned copy of your signature, bank account details and nominee details.
Complete the video KYC by choosing a time slot for later or immediately, depending on the availability at that point of time.
Authenticate the user agreement form by Aadhaar using the OTP sent on your mobile number linked to Aadhaar.

Targeted Long Term Repo Operations (TLTROs)

FAQs pertaining to On Tap TLTRO/ reversal of TLTRO/ TLTRO 2.0 transactions

Q16: Whether banks need to first borrow from RBI under the on tap TLTRO scheme and then disburse under eligible assets or alternatively, can the banks first create eligible assets and then avail funds before 31 March 2021? +

Ans: Banks can use either of the alternatives. However, the request of the bank will be subject to availability of funds as on date of application i.e., funds cannot be guaranteed in case the total amount of ₹1,00,000 crore is already availed.

Housing Loans

16. What are the minimum standards that banks are required to follow when they sell you a home loan? +

At the time of sourcing the loan, banks are required to provide information about the interest rate applicable, the fees / charges and any other matter which affects your interest and the same are usually furnished in the product brochure of the banks. Complete transparency is mandatory.
The banks will supply you authenticated copies of all the loan documents executed by you at their cost along with a copy each of all enclosures quoted in the loan document on request.

A bank cannot reject your loan application without furnishing valid reason(s) for the same.

All you wanted to know about NBFCs

B. Entities Regulated by RBI and applicable regulations

16. What does the term public funds include? Is it the same as public deposits? +

Public funds are not the same as public deposits. Public funds include public deposits, inter-corporate deposits, bank finance and all funds received whether directly or indirectly from outside sources such as funds raised by issue of Commercial Papers, debentures etc. Even though public funds include public deposits in the general course, it may be noted that CICs as also non-deposit taking NBFCs are not allowed to accept public deposits.
Further, indirect receipt of public funds means funds received not directly but through associates and group entities which have access to public funds.

Core Investment Companies

B. Registration and related matters:

16. Whether a Holding Company which is not able to comply with the CIC criteria (all four conditions), would still need to comply with NBFC requirements and prudential norms even in the event that it is not satisfying the asset-income criteria. (For example: the holding company owns 60 per cent equity in another group company and is not meeting other three conditions. Therefore, it does not qualify as a CIC. Further, the income from financial assets is also less than 50 per cent of total income. Whether such a company would require compliance with NBFC norms).

Ans: No, since the Company is not fulfilling the Principal Business Criteria (asset-income pattern) of an NBFC i.e. more than 50 % of its total assets should be financial assets and the income derived from these assets should be more than 50% of the gross income, it is not required to register as an NBFC under Section 45 IA of the RBI Act, 1934. However, it should register itself as an NBFC as soon as it fulfils the criteria of an NBFC and comply with the NBFC norms.

Foreign Investment in India

Q.17: What is meant by investment on repatriation basis and investment on non-repatriation basis ? +

Answer: Investment on repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated out of India. The expression investment on non-repatriation basis may be construed accordingly.

FAQs on Non-Banking Financial Companies

Inter-corporate deposits (ICDs)

17. If a company being a shareholder of a public limited NBFC gives deposit or loan to the latter one, whether such a loan is to be treated as public deposit or ICD ? +

The objective of exempting the intercorporate deposits from the purview of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 is that the corporate bodies whether a shareholder or a non-shareholder should be able to appraise the loan proposals and ensure the safety of the funds lent. Hence, such loans will be treated as ICDs.

Domestic Deposits

II. Deposits of Non-Residents Indians (NRIs)

17. Whether banks can accept recurring deposits under FCNR(B) Scheme? +

No. Banks cannot accept recurring deposits under FCNR(B) Scheme.

External Commercial Borrowings (ECB) and Trade Credits

F. LEVERAGE CRITERIA AND BORROWING LIMIT

17. Should the proposed ECB be added to all outstanding ECBs for arriving at the individual limit for raising of ECBs? +

The individual limit for raising ECB under the automatic route will take into account all ECBs raised in the financial year including the proposed one. However, refinancing of ECB amount will not be considered for arriving at individual limit per financial year. Also, the limit will be restored at the beginning of new financial year.

Government Securities Market in India – A Primer

17. What is shut period? +

‘Shut period’ means the period for which the securities cannot be traded. During the period under shut, no trading of the security which is under shut is allowed. The main purpose of having a shut period is to facilitate finalizing of the payment of maturity redemption proceeds and to avoid any change in ownership of securities during this process. Currently, the shut period for the securities held in SGL accounts is one day.

Coordinated Portfolio Investment Survey – India

Some important definitions and concepts

Q17. What should be considered under equity securities? +

Ans: The following are included under equity securities:

Ordinary shares.
Stocks.
Participating preference shares.
Shares/units in mutual funds and investment trusts
Depository receipts (e.g., American Depository Receipts) denoting ownership of equity securities issued by non-residents.
Securities sold under repos or “lent” under securities lending arrangements.
Securities acquired under reverse repos or securities borrowing arrangements and subsequently sold to a third party should be reported as a negative holding.

Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024

FASTag issued by Paytm Payments Bank

17. Can I transfer the balance from my old FASTag issued by Paytm Payments Bank to a new FASTag obtained from another Bank? +

Credit balance transfer feature is not available in the FASTag product. Therefore, you will have to close your old FASTag issued by Paytm Payments Bank and request the bank for a refund

Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999

Procedure for submission of the FLA return

Q17. How should entities report FLA return to RBI? +

Ans: Entities can submit the FLA return through the online web-based portal Foreign Liabilities and Assets Information Reporting (FLAIR) system, having address https://flair.rbi.org.in/fla/faces/pages/login.xhtml.

To access the URL https://flair.rbi.org.in/fla/faces/pages/login.xhtml, any of the browsers viz, Internet Explorer, Google chrome, Firefox etc. can be used, as all of these would support this application.
The entity has to register on the portal by clicking Registration for New Entity Users.
The entity has to fill the details in the FLA user registration form, upload the documents mentioned (Verification Letter and Authority Letter) and click submit to complete the registration.
After successful registration, user id and default password will be sent to the authorized person’s mail id. Using this user id and password, entities can login to the FLAIR portal and file the FLA Return.

Please note: The excel-based format and email-based reporting system has been replaced by the web-based format for submission of annual FLA return from June 2019.

Biennial survey on Foreign Collaboration in Indian Industry (FCS)

Some other important points to be noted

Q17. What information on economic activity classification has been covered under this survey? +

Ans.: In the FCS form, industry codes are given as per the National Industrial Classification (NIC) (2 digit) codes. Please specify, if you have chosen “Other” industry codes, like Other manufacturing, Other services activities.

Retail Direct Scheme

Know Your Customer (KYC) related queries

17. Do I need to upload my address proof? +

Only if your address has changed from the one mentioned in CKYC. In that case, you may update your new address and upload a proof for the same.

Targeted Long Term Repo Operations (TLTROs)

FAQs pertaining to On Tap TLTRO/ reversal of TLTRO/ TLTRO 2.0 transactions

Q17: Whether there is any restriction, with respect to Primary/Secondary market investments for funds availed under on Tap TLTRO scheme, should a bank desire to opt for acquiring specified securities issued by entities in specified sectors? +

Ans: There is no restriction with respect to primary/ secondary market investments in specified securities under the on Tap TLTRO scheme.

Housing Loans

17. What do you do if you have a grievance? +

If you have a complaint against only scheduled bank on any of the above grounds, you can lodge a complaint with the bank concerned in writing in a specific complaint register provided at the branches as per the recommendation of the Goiporia Committee or on a sheet of paper. Ask for a receipt of your complaint. The details of the official receiving your complaint may be specifically sought. If the bank fails to respond within 30 days, you can lodge a complaint with the Banking Ombudsman. (Please note that complaints pending in any other judicial forum will not be entertained by the Banking Ombudsman). No fee is levied by the office of the Banking Ombudsman for resolving the customer’s complaint. A unique complaint identification number will be given to you for tracking purpose. (A list of the Banking Ombudsmen along with their contact details is provided on the RBI website).

Complaints are to be addressed to the Banking Ombudsman within whose jurisdiction the branch or office of the bank complained against is located. Complaints can be lodged simply by writing on a plain paper or online at www.bankingombudsman.rbi.org.in or by sending an email to the Banking Ombudsman. Complaint forms are available at all bank branches also.

Complaint can also be lodged by your authorised representative (other than a lawyer) or by a consumer association / forum acting on your behalf.

If you are not happy with the decision of the Banking Ombudsman, you can appeal to the Appellate Authority in the Reserve Bank of India.

Indian Currency

B) Banknotes

9. What is a "star series" banknote? +

Fresh banknotes issued by Reserve Bank of India till August 2006 were serially numbered. Each of these banknote bears a distinctive serial number along with a prefix consisting of numerals and letter/s. The banknotes are issued in packets containing 100 pieces.

The Bank adopted the "STAR series" numbering system for replacement of defectively printed banknote in a packet of 100 pieces of serially numbered banknotes. The Star series banknotes are exactly similar to the other banknotes, but have an additional character viz., a *(star) in the number panel in the space between the prefixes.