Ans: Yes, company which is a CIC and has achieved the balance sheet size of Rs.100 crore as per its last audited annual financial statement is required to apply to the Bank for registration as a CIC-SI, subject to its meeting the other conditions for being identified as systemically important CIC.

There is no prohibition on banks’ placing of funds with non-banking non-financial companies under their Public Deposit Schemes. However, investment in the Public Deposit Scheme of such companies should be classified by banks as loans/ advances in their balance sheet and returns submitted under the Banking Regulation Act, 1949 and the Reserve Bank of India Act 1934.

Securities will be credited in your Retail Direct account on the settlement date, which is typically one working day after the trade date/auction date.

A forged note can be identified on the basis of the security features which are present in a genuine Indian currency note. These features are easily identifiable by seeing, touching and tilting the note.

Answer: For the transactions undertaken on or after November 7, 2017, in case of reporting delays, the person/ entity responsible for filing the reports as provided in Part IV of the Master Direction on Reporting shall be liable for payment of Late Submission Fee (LSF). The payment of LSF is an additional option for regularising reporting delays without undergoing the compounding procedure.

The NBFCs except RNBCs not accepting/holding public deposits are not required to submit to RBI their Statutory Returns in the First Schedule or the Balance Sheet or the Quarterly Liquid Asset Return or the Half-yearly Prudential Norm Return. However, all the NBFCs (other than those exempted - see answer to question No. 1) are required to be Registered with RBI and and also make sure that they continue to be eligible to remain Registered. RBI has powers to cause Inspection of the Books of any company and call for any other information about its business activities. For this purpose, the NBFCs are required to furnish the information in respect of any change in the composition of their Board of Directors, address of the company and its Directors and the name/s of its Auditors.

AD banks can issue SBLC on behalf of their customers for availing short term trade credit from overseas lenders in foreign currency subject to such SBLCs complying with the provisions contained in Department of Banking Regulation Master Circular No. DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015 on “Guarantees and Co-acceptances”, as amended from time to time.

NBFCs that ought to have sought registration from RBI but are functioning without doing so are committing a breach of law. Such companies are liable for action as envisaged under the RBI Act, 1934. To identify such entities, RBI has multiple sources of information. These include market intelligence, complaints received from affected parties, industry sources, and exception reports submitted by statutory auditors in terms of Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2008. Further, the State Level Co-ordination Committees (SLCC) is convened by RBI in all the States/UTs on quarterly basis. The SLCC is now chaired by the Chief Secretary/ Administrator of the concerned State/UT and has, as its members, apart from the Reserve Bank, the Regional Directorate of the MCA/ ROC, local unit of SEBI, NHB, Registrar of Chits, ICAI, Economic Intelligence Unit of the State Police and officials from Law and Home Ministries of the State Government. As all the relevant financial sector regulators and enforcement agencies participate in the SLCC, it is possible to quickly share the information and agree on an effective course of action to be taken against entities indulging in unauthorized and suspect businesses involving funds mobilization from public.

Banks can purchase letter of allotment in respect of PSU bonds subject to the following conditions.

1. The transactions (other than interbank transactions) should be undertaken only through recognized Stock Exchanges and registered brokers.

2. While purchasing the bonds, the bank should ensure that it gets a clear title to the security and the security is tradable in the secondary market.

3. The bank should prescribe its internal guidelines with the approval of the Board for undertaking such transaction.

No. However, the securities purchased will reflect in the holdings statement in your Retail Direct account.

Counterfeiting banknotes/using as genuine, forged or counterfeit banknotes/possession of forged or counterfeit banknote/making or possessing instruments or materials for forging or counterfeiting banknotes/making or using documents resembling banknotes are offences under Sections 489A to 489E of the Indian Penal Code and are punishable in the Courts of Law by fine or imprisonment ranging from seven years to life imprisonment or both, depending on the offence.

The Government of India has framed Investigation of High Quality Counterfeit Indian Currency Offences Rules, 2013 under Unlawful Activities (Prevention) Act (UAPA), 1967. The Third Schedule of the Act defines High Quality Counterfeit Indian Currency Note. Activity of production, smuggling or circulation of High Quality Counterfeit Indian Notes has been brought under the ambit of UAPA, 1967.

Answer: The payment of LSF is an additional facility for regularising reporting delays without undergoing the compounding procedure. However, this does not mean that the applicant cannot apply for compounding. Both options are available to the applicant for the transactions undertaken on or after November 7, 2017.

There had been instances when some companies had not paid matured deposits on due dates and such claims have been honoured after some delay. The companies did not pay any interest for the delayed period in the absence of any specific provisions in the Reserve Bank Directions in this regard in the past. A provision has, therefore, been inserted subsequently in the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions dated 31.1.1998 to the effect that interest is payable to the depositors only in case the company has delayed the repayment of matured deposits, from the date of receipt of such claim by the company or the date of maturity of the deposit whichever is later, till the date of actual payment. If the depositor has lodged his claim after the date of maturity, the company would be liable to pay interest for the period from the date of claim till the date of repayment. In other words, for the period between the date of maturity and the date of claim it is the discretion of the company to pay interest.

No. Proprietorship and partnership concerns are un-incorporated bodies. Hence they are prohibited under the RBI Act 1934 from accepting public deposits.

AD banks are required to report all permissions granted by the AD banks/Regional offices of Reserve Bank for settlement of delayed import dues irrespective of the tenures of extension sought.

Shares/ debentures/ bonds accepted by banks as security for loans/ advances should be valued at the prevailing market prices.

The securities will be held in a Gilt account with RBI.

Mere possession of a forged note does not attract punishment. Possession of any forged or counterfeit banknotes, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, is punishable under Section 489C of Indian Penal Code, 1860.

Answer: The reporting requirements are laid down in the Master Direction on Reporting under Foreign Exchange Management Act, 1999.

In terms of section 45QA of the Reserve Bank of India Act, 1934, where an NBFC fails to repay any deposit in accordance with the agreed terms and conditions, the Company Law Board can order the company to make repayment of such deposit forthwith or within such time and subject to such conditions as may be specified in the order. The aggrieved depositor is required to submit an application in the Form prescribed by them together with the requisite fee, to the concerned bench of the Company Law Board mentioned in the Deposit Application Form and seek an Order against the erring company . Apart from above, the depositor can also approach the District/State/National Level Consumers Disputes Redressal Forum for relief against the erring company.