New FAQ Page 2 - আরবিআই

RbiAnnouncementWeb

FAQ DetailPage Breadcrumb

Search Bar

Search Results

Sale, Purchase, etc., of Immovable Property in India (As on September 1, 2001)

Introduction

Introduction

The Foreign Exchange Management Act, 1999 (FEMA), came in force with effect from June 1, 2000. Section 6(3)(i) of the Act empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by certain persons mainly residents outside India. The restrictions under this clause are not applicable to a lease of immovable property for a period not exceeding five years. The regulations made by the Reserve Bank are called Foreign Exchange Management (Acquisition and Transfer of Immovable property in India) Regulations, 2000, and have been notified vide Notification FEMA No.21/2000-RB of May 3,2000. Full text of the Notification is available on the Bank's website www.fema.rbi.org.in. Synopsis of the said Regulations is as under:

All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, require prior permission of Reserve Bank for acquiring or transferring any immovable property in India.

A person resident outside India, who has been permitted by Reserve Bank to establish a branch, or office, or place of business in India( excluding a Laison Office), has general permission of Reserve Bank to acquire immovable property in India , which is necessary for, or incidental to, the activity. However, in such cases a declaration ,in prescribed form (IPI), is required to be filed with the Reserve Bank, within 90 days of the acquisition of immovable property.

An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/ plantation property or a farm house.

An Indian citizen resident outside India does not require any permission to transfer any immovable property, to a citizen of India who is resident in India.

An Indian citizen resident outside India does not require any permission to transfer any immovable property other than agricultural or plantation property or farm house, to a person who :-

is a citizen of India resident outside India , or

is a person of Indian origin resident outside India.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of funds:

received in India by way of inward remittance through banking channel from any place outside India, or

held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India other than agricultural land/farm house/plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer agricultural land/farm house/plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India.

A person of Indian origin resident outside India does not require any permission to transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India.

Repatriation outside India, including credit to NRE or FCNR account, of sale proceeds of any immovable property situated in India, requires prior permission of the Reserve Bank except in circumstances stated in paragraph 13 below.

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India, who is a citizen of India, or a person of Indian origin, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied :-

the immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules /Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act,1999;

the sale takes place after three years from the date of acquisition of such immovable property or from the date of payment of final instalment of consideration for its acquisition, whichever is later;

the amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property; and

in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

All requests for acquisition of agricultural land/plantation property/ farm house by any person resident outside India or foreign nationals may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.

The NRIs/ PIOs can freely rent out their immovable property in India without seeking any permission from the Reserve Bank. The rental income being a current account transaction is freely repatriable outside India.

Notes:

A. For the purposes of transactions, i.e., transfer, sale, purchase, etc., dealing with immovable property in India, a person of Indian origin is defined as under:

" an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who:

( i) at any time, held Indian passport;

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

B. Queries on the subject can be transmitted by e-mail on rbecfidt@bol.net.in .

C. For further details please contact the nearest Regional Office of the Reserve Bank of India (Exchange Control Department).

read-more

FOREX FACILITIES FOR RESIDENTS

Forex Facilities for Residents

If you are a Resident Indian, you can buy foreign exchange without permission from the Reserve Bank of India for :

Private Travel

You can avail of foreign exchange upto US$ 10,000 in any calendar year for tourism or private travel to any country other than Nepal and Bhutan on the basis of self-certification.

Endorsement on passport

There is no compulsion for you to get your passport endorsed with the foreign exchange purchased for travel outside India. Should you desire to get your passport endorsed, the bank/money changer releasing foreign exchange would do it.

Visit to Nepal and Bhutan

You can carry any amount of Indian currency while travelling to these countries, but you are not permitted to take Indian currency notes of denomination of Rs.500 and above or buy any foreign exchange for visit to these countries.

Study Abroad

You can buy foreign exchange upto US$ 30,000 or upto the estimate from the institution abroad, whichever is higher, per academic year on the basis of simple documentary evidence indicating the requirement.

Medical Treatment

You can buy foreign exchange on the basis of self-certification, upto US$ 50,000 to meet the expenses for medical treatment outside India. Banks are also permitted to release exchange required in excess of US$ 50,000, on the basis of estimate from a doctor or hospital in India or overseas.

You can also buy foreign exchange upto US$ 25,000 per person for meeting boarding/lodging/travel expenses of the patient and also the accompanying attendant on self-certification.

Employment Abroad

You can buy foreign exchange upto US$ 5,000 on production of letter of employment.

Emigration

You can buy foreign exchange upto US$ 5,000, or amount prescribed by country of emigration on the basis of emigration visa.

International Credit Cards

You can use your International Credit Cards/ ATM Cards/Debit Cards -

while on holidays outside India to meet your expenses.

when outside India for purchase of item of import.

when in India, for making payment in foreign exchange for purchase of books and other items through Internet.

The use of ICCs by residents while on visit abroad has been made free from all restrictions, without any item-wise limit within the overall ceiling of the credit card itself. The ICCs cannot be used for purchase of prohibited items e.g. lottery tickets, banned or proscribed magazines, participation in sweepstakes, payment of call-back services etc.

Remittance for Miscellaneous Purposes upto US$ 500

You can remit foreign exchange outside India upto US$ 500, for miscellaneous purposes, without production of any document provided the rupee equivalent is paid by debit to your account, cheque or by demand draft.

Gifts and Donations

You can gift/donate upto US$ 5,000 every year on self-certification.

Foreign Exchange can be purchased :

from any bank which is authorised to deal in foreign exchange or full-fledged moneychangers. If the rupee equivalent exceeds Rs.50,000/-, the entire payment has to be made by way of a crossed cheque/banker's cheque/pay order/demand draft only.

60 days ahead of the journey date. In case it is not possible to use the foreign exchange within the period of 60 days, it should be surrendered to a bank/money changer.

Surrender of Foreign Exchange on Return

You can indefinitely retain foreign exchange upto US$ 2,000, in the form of foreign currency notes or travellers' cheques (TCs) for future use. Any foreign exchange in cash in excess of this sum, is required to be surrendered to a bank within 90 days and TCs within 180 days of return. Any amount in excess of US$ 2000 can be credited to RFC(D) account.

Resident Foreign Currency (Domestic) Account

You can open a Resident Foreign Currency (Domestic) Account with a bank in India and deposit foreign exchange earnings repatriated to India through banking channel. The earnings could be out of export of goods and/or services, royalty, honorarium etc.

You can also open/credit the RFC(D) account with currency notes, bank notes and travellers cheques (a) saved from your trip outside India, (b) received as honorarium during your trip outside India, (c) received as gift from persons on visit to India, and (d) received from a person on a visit to India for services rendered to him in India.

These accounts are NOT interest bearing and there is no ceiling on the balances that can be built up in these accounts.

The balances held in these accounts can be used for any purpose for which foreign exchange can be bought from a bank in India.

Retention of Foreign Coins

You can retain foreign coins indefinitely without any limit.

Bringing in Foreign Exchange

You can bring into India foreign exchange without any limit. If, however, the value of foreign currency in cash exceeds US$ 5,000 and/or the cash plus TCs exceed US$ 10,000 it should be declared to the customs authorities at the airport in the currency declaration form (CDF), on arrival in India.

Exchange Earners’ Foreign Currency (EEFC) Account

You can retain upto specified limits, your earnings in foreign exchange, in an Exchange Earners' Foreign Currency (EEFC) Account with a bank in India.

These accounts are NOT interest bearing and there is no ceiling on the balances that can be built up in these accounts.

Balances held in such accounts can be used for any purposes for which exchange can be otherwise purchased from authorised dealers in India.

For details of additional facilities available in EEFC account please contact your bank.

ESOP Scheme

A resident individual, who is an employee or a director of an Indian office or branch of a foreign company or of a subsidiary of a foreign company or of an Indian company in which the foreign equity holding is not less that 51 per cent, can make remittances for the acquisition of foreign securities under Employees Stock Option (ESOP) Scheme without any monetary limit. The scheme is subject to the condition that the shares are offered at the concessional price. (The facility will be subject to review in June 2003).

Portfolio Investment - Overseas

Resident individuals can invest without any monetary limit in overseas companies listed on a recognised stock exchange which have the shareholding of at least 10 per cent in an Indian company listed on a recognised stock exchange in India (as on 1^st January of the year of the investment). (The facility will be subject to review in June 2003).

Receipt of dis-investment proceeds/Sponsored ADRs/GDRs

Resident shareholders of Indian companies, who offer their shares for conversion to ADRs/GDRs under the Scheme of Sponsored ADRs/GDRs can receive the sale proceeds in foreign currency or credit it to their EEFC/RFC (D) or Rupee accounts in India at their option.

N.B. All the above facilities are available under general permission, i.e., foreign exchange can be availed of from authorised dealers and does not require Reserve Bank's approval.

read-more

Local Area Banks were set up in the year 1996 with a view to ensuring provision of efficient and competitive financial services in their area of operations. Local Area Bank Scheme has now been in operation for the last six years. To undertake a review of the operation of the scheme it has been decided to constitute a review group.

The review group will make appropriate recommendations in the matter and submit its Report to the Reserve Bank by September 2002.

We invite your comments/suggestions/feedback which may be sent to Shri A.V. Sardesai, Member Secretary at cgmincrpcd@rbi.org.in or helprpcd@rbi.org.in

read-more

Introduction

Introduction

All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan, require prior permission of Reserve Bank for acquiring or transferring any immovable property in India.

A person resident outside India, who has been permitted by Reserve Bank to establish a branch, or office, or place of business in India( excluding a Laison Office), has general permission of Reserve Bank to acquire immovable property in India , which is necessary for, or incidental to, the activity. However, in such cases a declaration ,in prescribed form (IPI), is required to be filed with the Reserve Bank, within 90 days of the acquisition of immovable property.

An Indian citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/ plantation property or a farm house.

An Indian citizen resident outside India does not require any permission to transfer any immovable property, to a citizen of India who is resident in India.

An Indian citizen resident outside India does not require any permission to transfer any immovable property other than agricultural or plantation property or farm house, to a person who :-

is a citizen of India resident outside India , or

is a person of Indian origin resident outside India.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of funds:

received in India by way of inward remittance through banking channel from any place outside India, or

held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India other than agricultural land/farm house/plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer agricultural land/farm house/plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India.

A person of Indian origin resident outside India does not require any permission to transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India.

Repatriation outside India , including credit to RFC, NRE or FCNR account, of sale proceeds of any immovable property situated in India, requires prior permission of the Reserve Bank except in circumstances stated in paragraph 13 below.

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India, who is a citizen of India, or a person of Indian origin, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied :-

the immovable property was acquired by the seller in accordance with the provisions of the Exchange Control Rules /Regulations/Law in force at the time of acquisition, or the provisions of the Regulations framed under the Foreign Exchange Management Act,1999;

the amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency non-resident account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in non-resident external account for acquisition of the property; and

in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

Authorised Dealers have been permitted to allow the facility of repatriation of funds by NRIs/PIOs in their Non-Resident Ordinary Rupee (NRO) account upto USD One Million per year representing sale proceeds of immovable property held by them for a period of not less than 10 years subject to payment of applicable taxes.

All requests for acquisition of agricultural land/plantation property/ farm house by any person resident outside India or foreign nationals may be made to The Chief General Manager, Reserve Bank of India, Central Office, Exchange Control Department, Foreign Investment Division (III), Mumbai 400 001.

The NRIs/ PIOs can freely rent out their immovable property in India without seeking any permission from the Reserve Bank. The rental income being a current account transaction is freely repatriable outside India.

Notes:

A. For the purposes of transactions, i.e., transfer, sale, purchase, etc., dealing with immovable property in India, a person of Indian origin is defined as under:

" an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who:

( i) at any time, held Indian passport;

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

B. Queries on the subject can be transmitted by e-mail on rbecfidt@bol.net.in .

C. For further details please contact the nearest Regional Office of the Reserve Bank of India (Exchange Control Department).

read-more

State Bank of India (SBI)
State Bank of Bikaner & Jaipur (SBJ)
State Bank of Hyderabad (SBH)
State Bank of Indore (SBN)
State Bank of Mysore (SBM)
State Bank of Patiala (SBP)
State Bank of Saurashtra (SBS)
State Bank of Travancore (SBT)
Allahabad Bank (ALB)
Andhra Bank (ANB)
Standard Chartered Grindlays Bank
Bank of America NT & SA (BOA)
Bank of Baroda (BOB)
Bank of India (BOI)
Bank of Maharashtra (BOM)
The Bank of Rajasthan Ltd. (BOR)
Banque Nationale De Paris (BNP)
The Bassein Catholic Co op Bank Ltd. (BCH)
Canara Bank (CAB)
Central Bank of India (CBI)
CITI Bank N.A.(CIT)
The Citizen Co op Bank Ltd. (CCB)
Corporation Bank (COB)
The Cosmos Co op Bank Ltd. (CSM)
Credit Agricole Indosuez (CAI)
Dena Bank (DEB)
Deutsche Bank Ltd (DTB)
Development Credit Bank Ltd. (DCB)
The Federal Bank Ltd. (FBL)
The Global Trust Bank Ltd.
The Greater Bombay Co op Bank Ltd. (GBC)
The ICICI Bank Ltd.(Bank of Madura Merged with ICICI w.e.f. 12/03/2001)
Indian Bank (INB)
Indian Overseas Bank (IOB)
The Janata Sahakari Bank Ltd. Pune (JSB)
The Karnataka Bank Ltd. (KBL)
The Karur Vysya Bank Ltd. (KVB)
The Lakshmi Vilas Bank Ltd. (LVB)
Lord Krishna Ltd. (LKR)
The North Kanara Gaud Saraswat Brahmin Co op Bank Ltd. (NKC)
Oriental Bank of Commerce (OBC)
Punjab & Sind Bank (PSB)
Punjab Natrional Bank (PNB)
The Ratnakar Bank Ltd. (RTN)
The Saraswat Co op Bank Ltd. (SRC)
The South Indian Bank Ltd. (SIB)
ABN Amro Bank N.V.
Syndicate Bank (SYB)
UCO bank (UCO)
Union Bank of India (UBI)
United Bank of India (UNI)
The United Western Bank Ltd (UWB)
The UTI Bank Ltd (UTI)
Vijaya Bank (VJB)
The Vysya Bank Ltd. (VBL)
Hongkong & Shanghai Banking Corporation (HON)
The Punjab & Maharashtra Co op Bank Ltd. (PMB)
Induslnd Bank Ltd. (IDS)
Sangali Bank Ltd. (SAN)
The Shamrao Vithal Co op Bank Ltd. (SVC)
The Kalupur Commercial Co op Bank Ltd. (KCC)
Oman International Bank S.A.O.G. (OIB)
The Maharashtra State Co op Bank Ltd. (MSCB)
HDFC Bank Ltd.
IDBI Bank Ltd.
Mumbai GPO (GPO)
The Dhanalakshmi Bank Ltd.
The Bank of Punjab Ltd.
City Union Bank Ltd.
Mandvi Co op Bank Ltd.
The A.P. State Co op Bank Ltd.
The Bank of Nova Scotia (Scotiabank)
The Janakalyan Sahakari Bank Ltd.
Ahmedabad Disrict Co op Bank Ltd.
The Catholic Syrian Bank Ltd.
The Bank of Tokyo Mitsubisi Ltd.
The SBI Commercial & International Bank Ltd.

read-more

The Foreign Exchange Management Act, 1999, (FEMA) has came in force with effect from 1^st June 2000. Section 6(3)(i) of the Act empowers the Reserve Bank to frame regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India by certain persons mainly resident outside India. The restrictions under this clause are not applicable to a lease of immovable property for a period not exceeding five years. The regulations made by the Reserve Bank are called Foreign Exchange Management (Acquisition and Transfer of Immovable property in India) Regulations 2000 and have been notified vide Notification FEMA No.21/2000-RB of May 3,2000.

A synopsis of the Regulations is given in the following paragraphs.

All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan require prior permission of Reserve Bank for acquiring or transferring any immovable property in India.

A person resident outside India, who has been permitted by Reserve Bank to establish a branch, or office or place of business in India( excluding a Laison Office), has general permission of Reserve Bank to acquire immovable property in India , which is necessary for or incidental to the activity. However, in such cases only a declaration ,in prescribed form (IPI), is required to be filed, within 90 days of the acquisition of immovable property, with the Reserve Bank.

An Indian Citizen resident outside India does not require any permission to acquire any immovable property in India other than agricultural/ plantation land or a farm house.

An Indian Citizen resident outside India does not require any permission to transfer any immovable property, to a Citizen of India who is resident in India.

An Indian Citizen resident outside India does not require any permission to transfer any immovable property other than agricultural or plantation property or farm house, to a person who :-

is a citizen of India resident outside India , or

is a person of Indian origin resident outside India.

A person of Indian origin resident outside India does not require any permission to acquire any immovable property other than agricultural land/farm house/plantation property in India by purchase, from out of funds:

received in India by way of inward remittance through banking channel from any place outside India, or

held in any non-resident account maintained in accordance with the provisions of the Act and the regulations made by the Reserve Bank under the Act;

A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India other than agricultural land/form house/plantation property by way of gift from a person resident in India or from a person resident outside India who is a citizen of India or from a person of Indian origin resident outside India;

A person of Indian origin resident outside India does not require any permission to acquire any immovable property in India by way of inheritance from a person resident outside India who had acquired such property in accordance with the provisions of the foreign exchange law in force at the time of acquisition by him or the provisions of these Regulations or from a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer any immovable property in India other than agricultural land/farm house/plantation property, by way of sale to a person resident in India.

A person of Indian origin resident outside India does not require any permission to transfer agricultural land/farm house/plantation property in India, by way of gift or sale to a person resident in India who is a citizen of India.

A person of Indian origin resident outside India does not require any permission to transfer residential or commercial property in India by way of gift to a person resident in India or to a person resident outside India who is a citizen of India or to a person of Indian Origin resident outside India.

12.Repatriation outside India , including credit to RFC, NRE or FCNR account, of sale proceeds of any immovable property situated in India requires prior permission of the Reserve Bank except in circumstances given in paragraph 13 below.

In the event of sale of immovable property other than agricultural land/farm house/plantation property in India by a person resident outside India who is a citizen of India or a person of Indian origin, the authorised dealer may allow repatriation of the sale proceeds outside India, provided all the following conditions are satisfied :-

the immovable property was acquired by the seller in accordance with the provisions of the exchange control Rules /regulations/law in force at the time of acquisition or the provisions of the Regulations framed under Foreign Exchange Management Act,1999;

the sale takes place after three years from the date of acquisition of such immovable property or from the date of payment of final instalment of consideration for its acquisition, whichever is later; and;

the amount to be repatriated does not exceed (a) the amount paid for acquisition of the immovable property in foreign exchange received through normal banking channels or out of funds held in foreign currency Non-Resident Account or (b) the foreign currency equivalent, as on the date of payment, of the amount paid where such payment was made from the funds held in Non-Resident External account for acquisition of the property;

in the case of residential property, the repatriation of sale proceeds is restricted to not more than two such properties.

All requests for acquisition of agricultural land/plantation property/ farm house by any person resident outside India or foreign nationals may be made to The Chief General Manager, Exchange Control Department, Foreign Investment Division (III), Central Office, Mumbai 400 001.

The NRIs/ PIOs can freely rent out their immovable property in India without seeking any permission from the Reserve Bank. The rental income being a current account transaction is freely repatriable outside India.

Notes:

A. For the purposes of transactions i.e. transfer . sale, purchase etc., dealing with immovable property in India, a person of Indian origin is defined as follows:

" an individual (not being a citizen or Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan). Who:

( i) at any time, held Indian passport;

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

B. Queries on the subject can be sent by e-mail on rbecfidt@bol.net.in .

C. For further details please contact the nearest Regional Office of the Reserve Bank of India (Exchange Control Department).

read-more

1	Tower Capital & Securities Pvt.Ltd.
	ABAN House,
	25/31, RopeWalk Lane,
	Off Rampart Row,
	Fort,Mumbai-400 001
	Tel: 204 5844, 287 5054
	Fax: 204 5765

2	Dil Vikas Finance Co.Ltd.
	1513, Maker Chambers V,
	221, Nariman Point,
	Mumbai-400 021
	Tel: 287 1377, 287 1378, 288 2654-55
	Fax: 284 6010

3	Birla Global Finance Co.Ltd.
	Apeejay 2nd Floor,
	Shahid Bhagat Singh Road,
	Fort, Mumbai-400 021
	Tel: 288 0660, 288 0041
	Fax: 288 1088

4	SREI International Securities Ltd.
	812, Embassy Centre,
	Nariman Point,
	Mumbai-400 066
	Tel: 204 2241, 204 2245
	Fax: 204 2550
	Email: sreisec@vsnl.net

read-more

Types of Deposit Schemes
Particulars	FCNR a/c [Foreign Currency (Non-Resident) a/c]	NRE a/c [Non-Resident (External) Rupee a/c]	NRO (Non-Resident Ordinary Rupee a/c)
1.	2.	3.	4.
Who can open an account	NRIs and OCBs	NRIs and OCBS	Any person resident outside India
Joint account of two or more NRIs	Permitted	Permitted	Permitted
Joint account with another person resident in India	Not permitted	Not permitted	permitted
Currency in which account denominated	Pound Sterling US Dollar, Jap. Yen, or Euro	Indian Rupees	Indian Rupees
Repatriability: Principal Interest	Freely repatriable Freely repatriable	Freely repatriable Freely repatriable	Not repatriable Freely repatriable
Foreign Currency Risk	Account holder is protected against changes in INR value vis-à-vis the currency in which the account is denominated	Account holder is exposed to the fluctuations in the value of INR	Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount
Type of accounts	Term deposits only	Current Savings Recurring Fixed Deposits	Current Savings Recurring Fixed Deposits
Period for fixed deposits	For terms not less than 1 year and not exceeding 3 years	For the periods as announced by the deposit taking bank	For the periods as announced by the deposit taking bank
Rate of interest	Banks are free to determine interest rates within the ceiling, if any, prescribed by the Reserve Bank	Banks are free to determine interest rates.	Banks are free to determine interest rates.

Rupees Loans in India against Security of the funds held in the account to:
1.	2.	3.	4.
1) a/c holders	Permitted	Permitted	Permitted
2) third party	Permitted	Permitted	Permitted
Foreign currency loans outside India against Security of the funds held in the account to:
1) a/c holders	Permitted	Permitted	Not permitted
2) third party	Permitted	Permitted	Not permitted

Foot Note:-

Proceeds of NRNR deposits maturing on or after 1-4-2002 may be credited to NRE A/c/NRO A/c at the option of the account holder.

No new NRNR account to be opened after March 31, 2002.
NRNR account may be closed or proceeds transferred to NRO account, as desired by the account holder, on September 30, 2002.
The account holder may choose to credit the maturity proceeds to the NRE saving bank account or current account or open a fresh NRE term deposit account.
No new NRSR account to be opened after March 31, 2002. The existing NRSR term deposit accounts may be continued till maturity and the maturity proceeds may be credited to NRO A/c of the Account holder.
The existing NRSR account other than term deposit not to continue after September 30, 2002. On the closure of the account the balance to be credited to/transferred to NRO A/c of the account holder.
The existing NRSR account other than term deposit not to continue after September 30, 2002. At the option of the account holder it may be closed or balance thereof may be credited to his NRO account on or before that date.

Notes:

Nomination facilities, for nominating either a resident or a non-resident are available, in all types of accounts maintained in the name of individuals only.

For details of tax benefits available against each account please refer to the current income Tax rules.

For the purposes of maintaining an account in India

NRI is a person resident outside India who:

is citizen of India, or

is a citizen of any country other than Bangladesh or Pakistan if

he at any time held Indian passport, or

he or either his parents or any of his grand parents were citizen of India by virtue of the constitution of India or the Citizenship Act, 1955 (57 of 1955), or

a person is a spouse of an Indian citizen or a person referred to in sub-clause (a) or (b) above

OCB is defined as:

"a company, partnership, firm, society or any other corporate body owned directly or indirectly to the extent of at least 60% by non-resident Indian and includes overseas Trust in which not less than 60% beneficial interest is held by non-resident Indians directly or indirectly but irrevocably".

read-more

1. State Bank of India (SBI) 2. State Bank of Bikaner & Jaipur (SBJ) 3. State Bank of Hyderabad (SBH) 4. State Bank of Indore (SBN) 5. State Bank of Mysore (SBM) 6. State Bank of Patiala (SBP) 7. State Bank of Saurashtra (SBS) 8. State Bank of Travancore (SBT) 9. Allahabad Bank (ALB) 10. Andhra Bank (ANB) 11. Anz Grindlays Bank 12. Bank of America (BOA) 13. Bank of Baroda (BOB) 14. Bank of India (BOI) 15. Bank of Madura Ltd.(MDR) 16. Bank of Maharashtra (BOM) 17. Bank of Rajasthan Ltd.(BOR) 18. Banque Nationale De Paris (BNP) 19. Bassein Catholic Coop. Bank Ltd (BCH) 20. Canara Bank (CAB) 21. Central Bank Of India (CBI) 22. Citi Bank (CIT) 23. Citizen Co-op. Bank Ltd. (CCB) 24. Corporation Bank (COB) 25. Cosmos Co-op. Bank Ltd. (CSM) 26. Credit Agricol Indosuez (CAI) 27. Dena Bank (DEB) 28. Deutsche Bank (DTB) 29. Development Credit Bank Ltd.(DCB) 30. Federal Bank Ltd.(FBL) 31. Global Trust Bank Ltd. 32. Greater Bombay Co-op. Bank Ltd. (GBC) 33. ICICI Banking Corporation Limited 34. Indian Bank (INB) 35. Indian Overseas Bank (IOB) 36. Janata Sahakari Bank Ltd. Pune (JSB) 37. Karnataka Bank Ltd.(KBL) 38. Karur Vysya Bank Ltd.(KVB) 39. Lakshmi Vilas Bank Ltd.(LVB) 40. Lord Krishna Bank Ltd. (LKR) 41. N.K.G.S.B.Co-op. Bank Ltd.(NKC) 42. Oriental Bank of Commerce (OBC) 43. Punjab & Sind Bank (PSB) 44. Punjab National Bank (PNB) 45. Ratnakar Bank Ltd.(RTN) 46. Saraswat Co-op. Bank Ltd.(SRC) 47. South Indian Bank Ltd.(SIB) 48. Standard Chartered Bank (CHB) 49. Syndicate Bank (SYB) 50. UCO Bank (UCO) 51. Union Bank Of India (UBI) 52. United Bank Of India (UNI) 53. United Western Bank Ltd.(UWB) 54. UTI Bank Ltd.(UTI) 55. Vijaya Bank (VJB) 56. Vysya Bank Ltd.(VBL) 57. Hongkong & Shanghai Banking Corporation (HON) 58. Punjab & Maharashtra Co-operative Bank Limited (PMB) 59. IndusInd Bank Limited (IDS) 60. Sangli Bank Limited (SAN) 61. The Shamrao Vithal Co-operative Bank Limited (SVC) 62. The Kalupur Commercial Co-operative Bank Limited (KCC) 63. Oman International Bank S.A.O.G. (OIB) 64. The Maharashtra State Co-operative Bank Limited (MSC)

read-more

FOREX FACILITIES FOR NRIS/PIOS

Forex Facilities for NRIs/PIOs

If you are a Non-Resident Indian (NRI) or a Person of Indian Origin (PIO), you can avail of the following facilities without permission from the Reserve Bank :

Deposits

You can open, hold and maintain following types of accounts with an authorised dealer in India i.e. a bank authorised to deal in foreign exchange.

Non-Resident (Ordinary) Rupee Account – NRO Account

Non-Resident (External) Rupee Account – NRE Account

Foreign Currency Non Resident (Bank) Account – FCNR (B) Account

Salient features of the above accounts are as under :

Particulars	FCNR (B) Account	NRE Account	NRO Account
Joint account of two or more NRIs	Permitted	Permitted	Permitted
Joint account with another person resident in India	Not permitted	Not permitted	Permitted
Currency in which account is denominated	Pound Sterling/ US Dollar/Jap.Yen/Euro	Indian Rupees	Indian Rupees
Repatriability – Principal	Freely repatriable	Freely repatriable	Not repatriable (except current income like rent, dividend, pension etc. and remittances indicated under "Repatriation of NRO Funds")
Interest	Freely repatriable	Freely repatriable	Freely repatriable
Foreign currency risk	Account holder is protected against changes in INR value vis-à-vis the currency in which the account is denominated.	Account holder is exposed to the fluctuations in the value of INR.	Account holder is exposed to the fluctuations, in the value of INR to the extent of interest amount.
Type of accounts	Term deposits only.	Current, Savings, Recurring, Fixed Deposits.	Current, Savings, Recurring, Fixed Deposits.
Period of fixed deposits	For terms not less than 1 year and not exceeding 3 years	For the periods as announced by the deposit taking bank.	For the periods as announced by the deposit taking bank.
Rate of interest	Banks are free to determine interest rates within the ceiling, if any, prescribed by the Reserve Bank	Banks are free to determine interest rates.	Banks are free to determine interest rates.
Rupee Loans in India against Security of the funds held in the account to : Account holder Third Party	Permitted Permitted	Permitted Permitted	Permitted Permitted
Foreign currency loans outside India against security of the funds held in the account to : Account holder Third Party	Permitted Permitted	Permitted Permitted	Not permitted Not permitted

Only account holders can avail of foreign currency loans in India against the security held in FCNR(B) Deposit Account.

Repatriation of NRO funds

Authorised Dealers can allow remittance/s upto USD 1 million, of balances in NRO accounts/of sale proceeds of assets on production of an undertaking by the remitter togetherwith a certificate issued by a Chartered Accountant in Annexure A and B as prescribed by the Central Board of Direct axes (CBDT). In the case of repatriation of sale proceeds of immovable property by NRIs/PIOs, ADs can allow repatriation thereof even if the immovable property was held by the NRIs/PIOs for less than 10 years provided the cumulative period of holding of the immovable property in India and retention of the sale proceeds of the property in the NRO Account is not less than 10 years.

Investment in India :

You can invest in :

Government Securities/Units with repatriation rights.

Company shares/Debentures with repatriation rights.

Shares/debentures of Indian companies through stock exchange under port-folio investment scheme with repatriation rights.

Indian companies without any limit on non-repatriation basis, freely.

For details please refer to Reserve Bank’s Notifications No.FEMA.20/RB-2000 and No.FEMA.24/RB-2000 dated May 3, 2000 as amended from time to time.

Immovable property

You can acquire –

immovable property in India other than agricultural/plantation property or a farm house, if you are an NRI.

immovable property other than agricultural land/farm house/plantation property in India out of repatriable funds, if you are a PIO.

You can repatriate –

sale proceeds of immovable property acquired in India out of your repatriable funds, without any lock-in period.

refund of application/earnest money/purchase consideration made by house-building agencies/seller on account of non-allotment of flats/plots/cancellation of booking/deals for purchase of residential/commercial properties, togetherwith interest, net of taxes, provided original payment is made out of NRE/FCNR(B) account/inward remittances.

N.B. - All persons, whether resident in India or outside India, who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, or Bhutan, require prior permission of Reserve Bank for acquiring or transferring any immovable property in India.

On return to India

If you decide to return to India :

You may continue to 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 when you were resident outside India.

You may open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC) Account to keep your foreign currency assets. Assets held outside India at the time of return can be credited to RFC account. The funds in RFC accounts are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment outside India.

N.B. All the above facilities are available under general permission, i.e., foreign exchange can be availed of from authorised dealers and does not require Reserve Bank’s approval.

read-more

Types of Deposit Schemes
Particulars	(Foreign Currency Non-Resident Account (FCNR A/c)	Non-Resident External Rupee Account (NRE A/c)	(Non-Resident Ordinary Account (NRO A/c)
Who can open an account	NRIs or OCBs (Individuals/entities of Bangadesh/ Pakistan nationality /ownership require approval of RBI)	NRIs or OCBs (Individuals/entities of Bangadesh/ Pakistan nationality /ownership require approval of RBI)	Any person resident outside India (Individuals/entities of Bangadesh/ Pakistan nationality /ownership require approval of RBI)
Joint account	In the names of two or more non-resident individuals	In the names of two or more non-resident individuals	May be held jointly with residents
Nomination	Permitted	Permitted	Permitted
Currency in which account denominated	Pound Sterling, US Dollar, Jap. Yen, or Euro.	Indian Rupees	Indian Rupees
Repatriability	Repatriable	Repatriable	Not repatriable except for the following in the account:- Current income and interest Upto US$ 1 million per calendar year for any bonafide purposes out of NRO balances/ sales proceeds of assets
Type of Account	Term Deposits only	Savings, Current, Recurring, Fixed Deposit	Savings, Current, Recurring, Fixed Deposit
Period for fixed deposits	For terms not less than 1 year and more than 3 years	No restriction	No restriction
Rate of Interest	Subject to cap: LIBOR - 250 basis points	Subject to cap: LIBOR/SWAP+ 100 basis points	Banks are free to determine interest rates.
LOANS & OVERDRAFTS
IN INDIA
(i) to the Account holder	Permitted	Permitted	Permitted
(ii) to third parties	Permitted	Permitted	Permitted
b) OUTSIDE INDIA
(i) to the Account holder	Permitted	Permitted	Not Permitted
(ii) to third parties	Permitted	Permitted	Not Permitted
b. FOREIGN CURRENCY LOANS IN INDIA
(i) to the Account holder	Permitted	Not Permitted	Not Permitted
(ii) to third parties	Not Permitted	Not Permitted	Not Permitted
PURPOSE OF LOAN
IN INDIA
(i) to the Account holder	i)Personal purposes or for carrying on business activities. * ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms/ companies iii) Acquisition of flat/ house in India for his own residential use	i)Personal purposes or for carrying on business activities ii) Direct investment in India on non-repatriation basis by way of contribution to the capital of Indian firms/ companies iii) Acquisition of flat/ house in India for his own residential use	Personal requirement and /or business purpose. *
In India (ii) to third party	Fund based and/or non-fund based facilities for personal purposes or for carrying on business activities . *	Fund based and/or non-fund based facilities for personal purposes or for carrying on business activities . *	Personal requirement and / or business purpose*
b) OUTSIDE INDIA
To the Account holder and to third party	Fund based and/or non-fund based facilities for bonafide purposes.	Fund based and/or non-fund based facilities for bonafide purposes.	Not permitted

* The loans cannot be utilized for the purpose of relending, or carrying on agriculture or plantation activities or for investment in real estate business.

Features of various foreign currency deposit schemes available to Resident Indians

Particulars	Resident Foreign Currency Account (RFC Account)	Resident Foreign Currency (Domestic ) Account (RFC(D) Account)	Exchange Earner’s Foreign Currency Account(EEFC Account)
Who can open an account	Any person resident in India.	Resident Individuals	Any person resident in India
Sources of Funds	Foreign exchange received as pension/ superannuation /other benefits from employer abroad Reaslisation of assets held abroad Foreign exchange acquired as gift or inheritance from person who was NRI	Foreign exchange acquired : while on a visit abroad from any person on visit to India or honorarium or gift or for services or settlement of any lawful obligation by way of honorarium or gift while on a visit abroad representing unspent foreign exchange acquired during travel abroad as gift from a close relative by way of earning through export of goods/services or as royalty honorarium or by any other lawful means. representing the disinvestment proceeds received by the resident a/c holder on conversion of shares held by him to ADRs/GDRs under the sponsored ADR/GDR scheme approved by the FIPB of Govt. of India.	A 100% Export Oriented Unit or a unit in (a) Export processing zone or (b) Sortware technology park or (c)Electronic hardware technology park may credit upto 100% and any other person resident may credit upto 50% of their foreign exchange earnings. (d) Professional like scientists, professors of Indian Universities, economists, lawyers, doctors, artists, architects, engineers, consultants, Cost/ Chartered Accountants, Directors of Boards of overseas companies etc. who render services in their individual capacities outside India, may credit upto 100% of their earnings.
Joint account of two or more residents	Not permitted	Not permitted	Not permitted
Joint account with NRI	Not permitted	Not permitted	Not permitted
Types of account	Savings Current Fixed Deposit	Current Account	Current Account
Period for fixed deposits	Like any resident accounts banks may fix the period	N.A.	N.A.
Rate of interest	The banks are free to determine interest rates.	No interest is payable	No interest is payable.
End Use	No restrictions, including investments overseas	For permissible current and capital account transactions	For bonafide purposes as per Notification No. FEMA 10/2000-RB dt. 3.5.2000
LOANS & OVERDRAFTS In India	Foreign currency loans permitted	Not permitted	Not permitted

read-more

Department of Banking Operations & Development
Central Office

Index

Department of Banking Operations & Development
Central Office
Index

I. Domestic Deposits

II. NRI Deposits

III. Advances

IV. Advances against shares and debentures

V. Donations

VI. Premises Loan

VII. Service charges

read-more

1. Whether banks can accept interest free deposits ? +

Banks cannot accept interest free deposits other than in current account.

The Government of India issues securities in order to borrow money from the market. One way in which the securities are offered to investors is through auctions. The government notifies the date on which it will borrow a notified amount through an auction. The investors bid either in terms of the rate of interest (coupon) for a new security or the price for an existing security being reissued. Since the process of bidding is somewhat technical, only the large and informed investors, such as, banks, primary dealers, financial institutions, mutual funds, insurance companies, etc generally participate in the auctions. This left out a large section of medium and small investors from the primary market for government securities which is not only safe and secure but also give market related rates of return. The Reserve Bank of India has announced a facility of non-competitive bidding in dated government securities on December 7th 2001 for small investors.

read-more

1. Who can participate in the Scheme ? +

Participation in the Scheme of non-competitive bidding is open to individuals, HUFs, firms, companies, corporate bodies, institutions, provident funds, trusts and any other entity prescribed by RBI. As the focus is on the small investors lacking market expertise, the Scheme will be open to those whodo not have current account (CA) or Subsidiary General Ledger (SGL) account with the Reserve Bank of Indiado not require more than Rs.one crore (face value) of securities per auctionAs an exception, Regional Rural Banks (RRBs), Urban Cooperative Banks (UCBs) and Non-banking Financial Companies (NBFCs) can also apply under this Scheme in view of their statutory obligations. However, the restriction in regarding the maximum amount of Rs. one crore per auction per investor will remain applicable.

1. What is the Banking Ombudsman Scheme ? +

The Banking Ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995. Presently the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017) is in operation.

1. What is Electronic Clearing Service (ECS)? +

ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, insurance premium etc. Essentially, ECS facilitates bulk transfer of monies from one bank account to many bank accounts or vice versa. ECS includes transactions processed under National Automated Clearing House (NACH) operated by National Payments Corporation of India (NPCI).

The Reserve Bank of India has introduced an Ombudsman Scheme for Digital Transactions, 2019 (the Scheme). It is an expeditious and cost-free apex level mechanism for resolution of complaints regarding digital transactions undertaken by customers of the System Participants as defined in the Scheme. The Scheme is being introduced under Section 18 Payment and Settlement Systems Act, 2007, with effect from January 31, 2019.

read-more

1. Who is the Ombudsman for Digital Transactions ? +

The Ombudsman for Digital Transactions is a senior official appointed by the Reserve Bank of India to redress customer complaints against System Participants as defined in the Scheme for deficiency in certain services covered under the grounds of complaint specified under Clause 8 of the Scheme.

1 Semi-closed System PPIs: These PPIs are issued by banks (approved by RBI) and non-banks (authorized by RBI) for purchase of goods and services, including financial services, remittance facilities, etc., at a group of clearly identified merchant locations / establishments which have a specific contract with the issuer (or contract through a payment aggregator / payment gateway) to accept the PPIs as payment instruments. These instruments do not permit cash withdrawal, irrespective of whether they are issued by banks or non-banks.

Q1: The MD-TLE has various clauses incorporating the term ‘time of transfer’. What is to be taken as the ‘time of transfer’? +

Ans: It is clarified that ‘time of transfer’ would mean when the associated risks and rewards, to the extent of economic interest transferred and as documented in the loan participation, assignment or novation contract, becomes binding on the transferor and transferee.

Frequently Asked Questions (FAQs) on circular dated September 25, 2023 on ‘Display of information - Secured assets possessed under the SARFAESI Act, 2002’

read-more

1. Does the circular cover display of assets possessed before the circular date?

Ans: Secured assets possessed by Regulated Entities (REs) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 on or after the date of the circular should be disclosed on their website.

1. Para 3(viii) of the circular specifies that in the case of existing loans, the switchover to new penal charges regime shall be ensured on next review or renewal date or six months from the effective date of the circular, whichever is earlier. Whether such date of next review or renewal can be counted only after the effective date or even before the effective date if the accounts are subjected to review/ renewal?

In case of existing loans as well, the instructions shall come into effect from April 1, 2024 and the switchover to new penal charges regime shall be ensured on the next review / renewal date falling on or after April 1, 2024, but not later than June 30, 2024.

Introduction

The legal framework for administration of exchange control in India is provided by the Foreign Exchange Management Act, 1999. Under the Act, freedom has been granted for buying and selling of foreign exchange for undertaking current account transactions. However, the Central Government has been vested with powers in consultation with Reserve Bank to impose reasonable restrictions on current account transactions. Accordingly, the Government has issued Notifications GSR.381(E) dated May 3, 2000, and S.O. 301(E) dated March 30, 2001, imposing certain restrictions on current account transactions in public interest.

These details are available on the Bank’s website besides with the authorised dealers and regional offices of the Foreign Exchange Department. Our experience so far has been that the residents like to get information on several matters relating to various current account transactions and other incidental issues. This pamphlet attempts to answer to all such questions in simple language. While preparing replies to questions, special care has been taken to ensure that the replies are drafted in simple words and reference to technical details are avoided.

The Foreign Exchange Management Act,1999 (FEMA), has come into force with effect from June 1, 2000. With introduction of the new Act (in place of FERA), certain structural changes have been introduced and now all transactions involving foreign exchange have been classified either as Capital or Current Account transactions. All transactions undertaken by a resident that do not alter his assets or liabilities outside India are current account transactions. In terms of Section 5 of the FEMA, persons are free to buy or sell foreign exchange for any current account transaction except for those transactions on which Central Government has imposed restrictions, vide its Notification No.G.S.R.381(E) dated May 3, 2000 (as amended from time to time). Full text of the said Notification is available in the Official Gazette. It is also available as annexure to our Master Circular on Miscellaneous remittances available at our website /en/web/rbi/notifications/master-circulars .Incidentally, no release of foreign exchange is admissible for any kind of travel to Nepal and Bhutan or for any transaction with persons resident in Nepal and Bhutan.

Some of the commonly or frequently asked questions by residents in connection with foreign exchange facilities or restrictions have been answered in the following paragraphs.

read-more

1. Who is a resident? +

In terms of Section 2(v) of FEMA, 1999, a "person resident in India" means – a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include – (A) a person who has gone out of India or who stays outside India, in either case - for or on taking up employment outside India, or for carrying on outside India a business or vocation outside India, or for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; (B) a person who has come to or stays in India, in either case, otherwise than – for or on taking up employment in India, or for carrying on in India a business or vocation in India, or for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period; any person or body corporate registered or incorporated in India, an office, branch or agency in India owned or controlled by a person resident outside India, an office, branch or agency outside India owned or controlled by a person resident in India;

General Information

For further details/guidance, please approach any bank authorised to deal in foreign exchange or contact Regional Offices of the Foreign Exchange Department of the Reserve Bank.

FAQ-as on July 1, 2004

Introduction

The legal framework for administration of exchange control in India is provided by the Foreign Exchange Management Act, 1999. Under the Act, freedom has been granted for buying and selling of foreign exchange for undertaking current account transactions. However, the Central Government has been vested with powers in consultation with Reserve Bank to impose reasonable restrictions on current account transactions. Accordingly, the Government has issued Notifications GSR.381(E) dated May 3, 2000, and S.O. 301(E) dated March30, 2001, imposing certain restrictions on current account transactions in public interest.

These details are available on the Bank’s website besides with the authorised dealers and regional offices of the Exchange control Department. Our experience so far has been that the residents like to get information on several matters relating to various current account transactions and other incidental issues. This pamphlet contains answers to all such questions in simple language. While preparing replies to questions, special care has been taken to ensure that the replies are drafted in simple words and reference to technical details are avoided.

The Foreign Exchange Management Act,1999 (FEMA), has come into force with effect from June 1, 2000. With introduction of the new Act (in place of FERA) certain structural changes have been introduced and now all transactions involving foreign exchange have been classified either as Capital or Current Account transactions. All transactions undertaken by a resident that do not alter his assets or liabilities outside India are current account transactions. In terms of Section 5 of the FEMA, persons are free to buy or sell foreign exchange for any current account transaction except for those transactions on which Central Government has imposed restrictions, vide its Notification No.G.S.R.381(E) dated May 3, 2000 (as amended from time to time). Full text of the said Notification is available in the Official Gazette. Incidentally, no release of foreign exchange is admissible for any kind of travel to Nepal and Bhutan or for any transaction with persons resident in Nepal and Bhutan.

Some of the commonly or frequently asked questions by residents in connection with foreign exchange facilities or restrictions have been answered in following paragraphs.

read-more

1. How much exchange is available for a business trip?
+

Authorised dealers can release foreign exchange up to US$25,000 for a business trip to any country other than Nepal and Bhutan. Release of foreign exchange exceeding US$25,000 for a travel abroad (other than Nepal and Bhutan) for business purposes, irrespective of period of stay, requires prior permission from Reserve Bank. Visits in connection with attending of an international conference, seminar, specialised training, study tour, apprentice training, etc., are treated as business visits. Visit abroad for medical treatment and/or check up also falls within this category.

Q.1 What is direct investment outside India ? +

Direct investment outside India means investment by way of contribution to the capital or subscription to the Memorandum of Association of a foreign entity but does not include portfolio investment.

EXCHANGE CONTROL DEPARTMENT NON RESIDENT FOREIGN ACCOUNTS DIVISION

read-more

1. Can foreign tourists open a bank account in India during their short visit ? +

Yes, foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account with any bank dealing in foreign exchange .

1. Does QA 22 Account continue under Foreign Exchange Management Act, 1999 ? +

No. With the introduction of Foreign Exchange Management Act, 1999, the accounts opened by foreign nationals who are resident in India are treated as resident accounts. Such accounts are at par with other resident Rupee accounts.

Who is eligible to advertise on Foreign Satellite Channels? +

Exporters whose export earnings are Rs.10 lakhs or more during each of the preceding two years, or where the payment is to be made out of funds held in RFC or EEFC account of the remitter, are permitted by authorised dealers to make remittance for advertisement on foreign television, in terms of Foreign Exchange Management (Current Account Transactions) Rules, 2000 made by Government of India, vide Notification G.S.R.381(E) dated May 3, 2000. All other cases need to be referred by the authorised dealer to the Reserve Bank of India, for prior approval, before effecting any remittance.

Q.1. What is an NBFC-Infrastructure Finance Company (NBFC-IFC)?

Ans. An NBFC-IFC is a non-deposit taking NBFC which has a minimum of 75% of its total assets deployed towards infrastructure lending. For this purpose, the term ‘infrastructure lending’ means a credit facility extended by an NBFC to a borrower, by way of term loan, project loan subscription to bonds/ debentures/ preference shares/ equity shares in a project company acquired as a part of the project finance package such that subscription amount to be “in the nature of advance” or any other form of long term funded facility for exposure in the infrastructure sub-sectors as notified by the Department of Economic Affairs, Ministry of Finance, Government of India, from time to time.

1. What is the ATS ? +

The ATS is an Application Tracking System, hosted on the public website of the Reserve Bank of India (RBI), which has been developed for members of the public to submit any individual application to RBI and keep track of the status of its disposal thereafter.

Circular dated April 11, 2023 on ‘Framework for acceptance of Green Deposits’

read-more

1. Is it mandatory for the regulated entities (REs) to raise green deposits?

It is not mandatory but in case REs intend to raise green deposits from their customers they should follow the framework prescribed therein.

Q1. What is the Asian Clearing Union (ACU)? +

Ans. The Asian Clearing Union (ACU) was established with its head-quarters at Tehran, Iran, on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and Pacific (ESCAP), for promoting regional co-operation. The main objective of the clearing union is to facilitate payments among member countries for eligible transactions on a multilateral basis, thereby economizing on the use of foreign exchange reserves and transfer costs, as well as promoting trade among the participating countries.

Q.1. What is RBI-EFT System? +

Ans RBI EFT is a Scheme introduced by Reserve Bank of India (RBI) to help banks offering their customers money transfer service from account to account of any bank branch to any other bank branch in places where EFT services are offered.

1. “বেসিক সেভিং ব্যাঙ্ক অ্যাকাউন্টের” (বিএসবিডিএ) সংজ্ঞা কি?

বৰ্তমান সমস্ত ‘নো ফ্ৰিল’ অ্যাকাউন্ট যেগুলো ডিবিওডি.নং.এলইজি.বিসি.44/09.07.005/2005-06 11 নভেম্বর 2005 সালের সাৰ্কুলারে থাকা নিৰ্দেশ অনুযায়ী খোলা হয়েছে, সেই সমস্ত অ্যাকাউণ্ট ডিবিওডি.নং.এলইজি.বিচি.35/09.07.005/20012-13 10 আগষ্ট 2012 সালের সাৰ্কুলার অনুযায়ী বিএসবিডিএ অ্যাকাউন্টে পরিবৰ্তিত করা হবে সঙ্গে এই সাৰ্কুলার মতে নতুন করে খোলা সমস্ত অ্যাকাউন্ট বিএসবিডিএ হিসাবে গণ্য করা হবে। উচিত মূল্যে যে অ্যাকাউন্টগুলোতে অতিরিক্ত সুবিধা উপলব্ধ রয়েছে, বিশেষ করে বিএসবিডিএ অ্যাকাউন্টের গ্ৰাহকের জন্য, সেই অ্যাকাউন্টগুলো বিএসবিডিএ হিসাবে গণ্য করা হবে।

Q1: Will banks be required to maintain specified securities for the amount received in TLTRO in HTM book at all times? +

Ans: Yes. The banks will have to maintain amount of specified securities for the amount received in TLTRO in its HTM book at all times till maturity of TLTRO.

1. What are various types of cards? +

Ans: Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards (a) debit, (b) credit, and (c) prepaid.

The Reserve Bank of India has introduced an Ombudsman Scheme for customers of Non-Banking Financial Companies (NBFCs). The Ombudsman Scheme for Non-Banking Financial Companies, 2018 (the Scheme), is an expeditious and cost free apex level mechanism for resolution of complaints of customers of NBFCs, relating to certain services rendered by NBFCs. The Scheme is being introduced under Section 45 L of the Reserve Bank of India Act, 1934, with effect from February 23, 2018.

read-more

1. Who is the NBFC Ombudsman ? +

The NBFC Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against NBFCs for deficiency in certain services covered under the grounds of complaint specified under Clause 8 of the Scheme.

Que - “Please provide the details of Exchange Rate value of INR against USD dollar from the year 1947 till date”. +

Ans – Information regarding USD-INR rates for the period 1945-46 – 1970-71 is available at the following link: Exchange Rate – 1945-1971

2. Information regarding USD-INR rate for the period 1970-71 to 2013-14 is available on:
http://dbie.rbi.org.in/DBIE/dbie.rbi?site=publications -> Handbook of Statistics on the Indian Economy -> Part I -> Annual Series -> Trade & Balance of Payments -> Table 147 - EXCHANGE RATE OF THE INDIAN RUPEE VIS-À-VIS THE SDR, US DOLLAR, POUND STERLING, D. M. /EURO AND JAPANESE YEN (calendar Year – Annual Average)

3. Information for the year 2015 onwards is available on
/en/web/rbi/exchange-rate-archive

1. Why are ₹2000 denomination banknotes being withdrawn? +

The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. With fulfilment of that objective and availability of banknotes in other denominations in adequate quantities, printing of ₹2000 banknotes was stopped in 2018-19. A majority of the ₹2000 denomination notes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continue to be adequate to meet the currency requirement of the public.

In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation.

1. What is The Depositor Education and Awareness (DEA) Fund Scheme, 2014, the Depositor Education and Awareness (DEA) Fund and when did this Scheme come into effect?

ANS: “The Depositor Education and Awareness Fund (DEA Fund) Scheme, 2014” was formulated by the Reserve Bank of India in exercise of the powers conferred upon it under Section 26A of the Banking Regulation (BR) Act, 1949 and all the powers enabling it in this behalf. Under the provisions of this Section, RBI has established the Depositor Education and Awareness Fund (Fund). The Scheme has come into effect from May 24, 2014, i.e., the date of notification of the Scheme in the Official Gazette of India.

Q.1 Does the circular apply to all loan products or only to Personal Loans?

Ans: The circular is applicable to all equated periodic instalment based personal loans only. The circular is not applicable to other types of loans. The Reserve Bank circular DBR.No.BP.BC.99/08.13.100/2017-18 on “XBRL Returns – Harmonization of Banking Statistics” dated January 04, 2018 may be referred for the definition of personal loans.

(Usage of e₹ is currently being pilot tested in the form of some studies in the country. The pilot is being tried in the Retail (public) and Wholesale (bank and other institutions) segments.

read-more

A. Retail CBDC

1. What is Digital Rupee?

Ans: Digital Rupee or e₹, is India’s Central Bank Digital Currency (CBDC). It is the digital form of India’s physical currency, the Rupee (₹). e₹ is issued by the Reserve Bank of India (RBI) in digital form and offers features similar to physical cash like convenience of use, guarantee of RBI, finality of settlement, etc. e₹ is stored in the user’s digital wallet and can be used to receive / send money, and / or make payment for transactions, just like any physical ₹ note.

The logo and tagline for India’s CBDC is as under:

Scheme for Payment of Pension to Central Government Pensioners by Authorised Banks

Payment of pension to retired government employees, including payment of basic pension, increased dearness relief (DR), and other benefits as and when announced by the governments, is governed by the relevant schemes prepared by concerned Ministries/Departments of the Government of India and State Governments. RBI has issued certain instructions in this regard which is available in the Master Circular – Disbursement of Government Pension by Agency Banks dated April 01, 2025. Clarifications, in the form of questions and answers, on certain issues related to the instructions issued by RBI is given below.

read-more

1. Whether a Joint Account can be continued for family pension after death of a pensioner?

Yes, the banks should not insist on opening of a new account in case of Central Government pensioner if the spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO) is the survivor. The family pension should be credited to the existing account without opening a new account by the family pensioner for this purpose.

FAQs attempt to put in place the common queries that users have on the subject in easy-to-understand language. However, for the purposes of compounding, the provisions under Foreign Exchange Management Act, 1999 (FEMA), the Foreign Exchange (Compounding Proceedings) Rules, 2024 and Directions - Compounding of Contraventions under FEMA, 1999, ‘may be referred to.

read-more

Q.1. What is meant by contravention and compounding of contravention?

Ans. Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued thereunder. Compounding refers to the process of voluntarily admitting the contravention, pleading guilty and seeking redressal. The Reserve Bank is empowered to compound any contravention as defined under section 13 of FEMA, 1999 except the contravention under section 3(a) ibid, for a specified sum after offering an opportunity of personal hearing to the contravener. It is a voluntary process in which an individual or a corporate seeks compounding of an admitted contravention. It provides comfort to any person who contravenes any provisions of FEMA, 1999 by minimizing transaction costs. Further, cases falling under Rule 9 of Foreign Exchange (Compounding Proceedings) Rules, 2024, shall not be eligible for compounding by the Reserve Bank.

1. How will the daily changes in the inflation adjusted principal be accounted for, regarding MTM, Interest, Book Value

Ans: The valuation criteria as specified for HTM, AFS and HFT would apply.

Valuation (para nos. given are from our MC on investments)

3.1 Held to Maturity

i) Investments classified under HTM need not be marked to market and will be carried at acquisition cost, unless it is more than the face value, in which case the premium should be amortised over the period remaining to maturity. The banks should reflect the amortised amount in 'Schedule 13 - Interest Earned: Item II - Income on Investments', as a deduction. However, the deduction need not be disclosed separately. The book value of the security should continue to be reduced to the extent of the amount amortised during the relevant accounting period.

In the case of IIBs, face value will mean the inflation adjusted principal.

3.2 Available for Sale

The individual scrips in the Available for Sale category will be marked to market at quarterly or at more frequent intervals. Domestic Securities under this category shall be valued scrip-wise and depreciation / appreciation shall be aggregated for each classification referred to in item 2(i) above and foreign investments under this category shall be valued scrip-wise and depreciation / appreciation shall be aggregated for five classifications (viz. Government securities (including local authorities), Shares, Debentures & Bonds, Subsidiaries and / or joint ventures abroad and Other investments (to be specified)). Further, the investment in a particular classification, both in domestic and foreign securities, may be aggregated for the purpose of arriving at net depreciation / appreciation of investments under that category. Net depreciation, if any, shall be provided for Net appreciation, if any, should be ignored. Net depreciation required to be provided for in any one classification should not be reduced on account of net appreciation in any other classification. The banks may continue to report the foreign securities under three categories (Government securities (including local authorities), Subsidiaries and / or joint ventures abroad and other investments (to be specified)) in the balance sheet. The book value of the individual securities would not undergo any change after the marking of market.

3.3 Held for Trading

The individual scrips in the Held for Trading category will be marked to market at monthly or at more frequent intervals and provided for as in the case of those in the Available for Sale category. Consequently, the book value of the individual securities in this category would also not undergo any change after marking to market.

FIMMDA has informed that the price quoted in the market will be the real price and consideration for purchase and sale of the bond will be ((“Real Price x Index Ratio” which is clean price) + (Accrued Interest which is the Broken Period Interest). As per para 5.2 of the Master Circular on Classification, Valuation and Investment Portfolio by banks, broken period interest should not be capitalized but treated as an item of expenditure. In order to be consistent with present valuation norms, only clean price may be considered as acquisition cost.

As regards the mark to market value, in the case of IIBs it is the quoted clean price if available. If it is unquoted, FIMMDA’s valuation methodology for arriving at the clean price as above should be followed.

However, regarding broken period interest, banks would have to be guided by what is indicated in para 5.2 of MC on investments:

5.2 Broken Period Interest

Banks should not capitalise the Broken Period Interest paid to seller as part of cost, but treat it as an item of expenditure under Profit and Loss Account in respect of investments in Government and other approved securities. It is to be noted that the above accounting treatment does not take into account taxation implications and hence the banks should comply with the requirements of Income Tax Authorities in the manner prescribed by them.

In case it falls under unquoted SLR security, FIMMDA’s valuation methodology for arriving at the clean price should be followed.

Q1: The MD-TLE has various clauses incorporating the term ‘time of transfer’. What is to be taken as the ‘time of transfer’?

1. What are the different CPS operated by the Reserve Bank? +

Ans. The Reserve Bank owns and operates following CPS:

i. Real Time Gross Settlement (RTGS) System – It is the country’s Large Value Payment System and was introduced in March 2004. It was subsequently enhanced to Next Generation-RTGS (NG-RTGS) built on the ISO 20022 standard with advanced features such as hybrid functionality, liquidity management functions, future date functionality, scalability, etc. The transactions settle real-time on a gross basis in the books of RBI and have a floor value of Rs. 2 lakh. RTGS also settles Multilateral Net Settlement Batch (MNSB) files emanating from ancillary payment systems such as CCIL and NPCI. It is available round the clock on all days of the year with effect from December 14, 2020.

ii. National Electronic Fund Transfer (NEFT) system – It is a retail payment system and was introduced in November 2005. NEFT has a straight through process which operates in 48 half-hourly batches 24x7x365 with effect from December 16, 2019. There is no floor or ceiling for the amount that can be transferred in a single transaction, because of which NEFT has emerged as a popular hybrid payment system.

1. What is the timeline for realization of local and outstation cheques and compensation payable if there are delays in affording credit? +

Local Cheques

Local cheques are payable within the jurisdiction of the clearing house and will be presented through the clearing system prevailing at the centre. Credit arising out of local cheques shall be given to the customer’s account as indicated in the Cheque Collection Policy (CCP) of the concerned collecting bank.

Notwithstanding to the CCP of concerned collecting bank, ideally, in respect of local clearing, banks shall permit usage of the shadow credit afforded to the customers’ accounts immediately after closure of the relative return clearing on the next working day or maximum within an hour of commencement of business on the third working day from the day of presentation in clearing, subject to usual safeguards.

Under grid-based Cheque Truncation System (CTS) clearing, all cheques drawn on bank branches falling within in the grid jurisdiction are treated and cleared as local cheques. The grid clearing allows banks to present / receive cheques to/ from multiple cities to a single clearing house through their service branches in the grid location.

If there is any delay in credit, beyond the period specified above, customer is entitled to receive compensation at the rate specified in the CCP of the concerned collecting bank. In case, no rate is specified in the CCP for delay in realisation of local cheques, compensation at savings bank interest rate has to be paid for the corresponding period of delay.

Outstation Cheques

Maximum timeframe for collection of cheques drawn on state capitals / major cities / other locations are 7/10/14 days respectively.

If there is any delay in collection beyond this period, customer is entitled to receive compensation at the rate specified in the CCP of the concerned bank. In case the rate is not specified in the CCP, interest rate on Fixed Deposits for the corresponding maturity to be paid. Banks' cheque collection policy also indicates the limit up to which outstation cheques are given immediate / instant credit.

1. Which types of cards are allowed for withdrawing cash at PoS terminals? +

Ans. Under the facility of cash withdrawal at PoS terminals, cardholders can withdraw cash using their debit cards and full KYC prepaid cards issued by banks and non-banks in India. However, credit cards cannot be used under this facility. Cash can also be withdrawn at PoS terminals through Unified Payments Interface (UPI) as well as through use of electronic cards that are linked with overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.

General Instructions

The Reserve Bank conducts the survey on Computer Software & Information Technology Enabled Services (ITES) Exports annually. The survey collects information from software and ITES/BPO/LLPs exporting companies on their computer software and IT enabled services exports as at end-March of the latest Financial Year (FY). .

The survey results are released in the public domain to raise the confidence of the international financial system in the country's economy besides being used for compilation of related external sector statistics which provide comprehensive account of the country’s international financial transactions and exposures, in a globally comparable statistical framework.

Confidentiality Clause: The company-wise information provided will be kept confidential and only consolidated aggregates will be released by the Reserve Bank.

Note: The respondent companies/LLPs/proprietorship firm should fill-up the survey schedule in excel format (*.xls format), which is available on RBI website. Respondents are requested to read the Instruction sheet (available in survey schedule) carefully before filling the survey schedule..

Important Points: The respondent companies/LLPs/proprietorship firm should follow the below-mentioned points for filling and submitting the survey schedule:

(i) (i) The company must use the latest survey schedule, which is in .xls format, without incorporating any macros.

(ii) (ii) The company is required to save the survey schedule in Excel 97-2003 workbook, i.e., in .xls format by following the below-mentioned steps:

Go to Office Button / File → Save As → Save As type
Select “Excel 97-2003 Workbook” and Save the survey schedule in .xls format.

(iii) The company is requested not to incorporate any macro in the survey schedule while submitting the same.

(iv) Survey schedule submitted in any other format (other than .xls format) will be rejected by the system.

(v) Ensure that all information furnished in the survey schedule are complete and no information is missed out.

(vi) After filling Part - A to D, the company has to fill the declaration sheet, which helps in validating that the information entered by the company are reconfirmed before submission to RBI. This helps to avoid data entry errors, missed data and other errors.

(vii) Respondents are requested to not use any special characters i.e., [!@#$%^&*_()] and comma while data filing in Question 3 to 9.

read-more

1. In which month of the year, the ITES survey is launched by the RBI ?

Ans.: The RBI launches the ITES survey during the month of June every year with the previous financial year end-March as the reference date.

1. What are the RBI guidelines on education loans?

RBI issued circular RPCD.PLNFS.BC.NO.83/06.12.05/2000-01 dated April 28, 2001 on ‘Educational Loan Scheme’ advising all Scheduled Commercial Banks to adopt the Model Education Loan Scheme, formulated by Indian Banks’ Association (IBA). The Scheme has been revised by IBA from time to time and its latest revision is Model Education Loan Scheme (MELS), 2021.

For detailed information on guidelines to banks on education loan, please refer to MELS, 2021 and its related circulars. Copy of the aforesaid Scheme is available on the IBA website.

It is to be noted that the MELS, 2021 provides broad guidelines to the banks for operationalizing the educational loan scheme and implementing banks will have the discretion to make changes as deemed fit.

Q 1: Whether a lending transaction would fall under the definition of digital lending only if all the processes in the life cycle of a loan, viz., customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service, are carried out digitally or some of the aforesaid processes can be carried out in physical mode also? +

Ans: The phrase ‘largely by use of seamless digital technologies’ has been used in the Digital Lending definition to accord operational flexibility to REs in ‘Digital Lending’. Therefore, even if some physical interface with customer is present, the lending will still fall under the definition of Digital Lending. However, while doing so, the REs should ensure that the intent behind the Guidelines is adhered to.

1. What is tokenisation? +

Ans. Tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”).

(i) If a borrower has aggregate sanctioned credit limit of Rs.25,000 crore on or before March 31, 2016, will it still qualify as a ‘Specified Borrower’? +

In all such cases, the borrower will deemed to be a ‘Specified borrower’ from April 1, 2016 and the disincentive mechanism will be applicable from April 1, 2017 if the borrower borrows from the banking system beyond the NPLL.

1. What is National Electronic Funds Transfer (NEFT) system?

Ans: National Electronic Funds Transfer (NEFT) is a nation-wide centralised payment system owned and operated by the Reserve Bank of India (RBI). The set of procedures to be followed by various stakeholders participating in the system is available on the RBI website under the following link: https://website.rbi.org.in/documents/87730/39711381/NEFTPROCEDURALJANUARY2024DBA95372B2454F9F8B767824B0B6E86F.pdf.

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the Regulations made or directions issued thereunder may be referred to. The relevant principal regulations are the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 issued vide Notification No. FEMA 10(R)/2015-RB dated January 21, 2016. The directions issued are consolidated in Part I of the Master Direction No 14 on Deposits and Accounts. Amendments, if any, to the principal regulations are appended.

read-more

1. Who is a person resident in India?

Sec 2(v) of the Foreign Exchange Management Act, 1999 (FEMA) defines a person resident in India as:

(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include-

(A) a person who has gone out of India or who stays outside India, in either case-

for or on taking up employment outside India, or
for carrying on outside India a business or vocation outside India, or
for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;

(B) a person who has come to or stays in India, in either case, otherwise than-

for or on taking up employment in India, or
for carrying on in India a business or vocation in India, or
for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;

(ii) any person or body corporate registered or incorporated in India,

(iii) an office, branch or agency in India owned or controlled by a person resident outside India,

(iv) an office, branch or agency outside India owned or controlled by a person resident in India;

1. RTGS এর পুরো নাম কি ?

উত্তর. সংক্ষেপে 'RTGS' এর পুরা নাম হচ্ছে রিয়েল টাইম গ্রস সেটেলমেন্ট, যাকে এই ভাবে বর্ণনা করা যায় একটি ব্যবস্থা হিসেবে যেখানে নিয়ত এবং ঠিক ঐ সময়েই নিধি স্থানান্তর করার কথা বলা হয়, একটি-একটি করে লেনদেনের পর লেনদেন হিসেবে (কোন নেটিং ছাড়াই) । ‘রিয়েল টাইম’ অর্থ ঐ সময়ের লেনদেন পালন করা যখন এটি পাওয়া যায় । ‘গ্রস সেটেলমেন্ট’ অর্থ নিধি স্থানান্তরের নিষ্পত্তির য নির্দেশ আছে সেটি স্বতন্ত্রভাবে হয় ।

1. What is TReDS ? +

Ans. TReDS is an electronic platform for facilitating the financing / discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. These receivables can be due from corporates and other buyers, including Government Departments and Public Sector Undertakings (PSUs).

1. What is NDS-OM? +

NDS-OM is a screen based electronic anonymous order matching system for secondary market trading in Government securities owned by RBI. Presently the membership of the system is open to entities like Banks, Primary Dealers, Insurance Companies, Mutual Funds etc. i.e entities who maintain SGL accounts with RBI. These are Primary Members (PM) of NDS and are permitted by RBI to become members of NDS-OM. Gilt Account Holders which have gilt account with the PMs are permitted to have indirect access to the NDS-OM system i.e they can request their Primary Members to place orders on their behalf on the NDS-OM system.

The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Under the Foreign Exchange Management Act, 1999 (FEMA), which came into force with effect from June 1, 2000, all transactions involving foreign exchange have been classified either as capital or current account transactions. All transactions undertaken by a resident that do not alter his / her assets or liabilities, including contingent liabilities, outside India are current account transactions.

In terms of Section 5 of the FEMA, persons resident in India ¹ are free to buy or sell foreign exchange for any current account transaction except for those transactions for which drawal of foreign exchange has been prohibited by Central Government, such as remittance out of lottery winnings; remittance of income from racing/riding, etc., or any other hobby; remittance for purchase of lottery tickets, banned / proscribed magazines, football pools, sweepstakes, etc.; remittance of dividend by any company to which the requirement of dividend balancing is applicable; payment of commission on exports under Rupee State Credit Route except commission up to 10% of invoice value of exports of tea and tobacco; payment of commission on exports made towards equity investment in Joint Ventures / Wholly Owned Subsidiaries abroad of Indian companies; remittance of interest income on funds held in Non-Resident Special Rupee (Account) Scheme and payment related to “call back services” of telephones.

Foreign Exchange Management (Current Account Transactions) Rules, 2000 - Notification [GSR No. 381(E)] dated May 3, 2000 and the revised Schedule III to the Rules as given in the Notification G.S.R. 426(E) dated May 26, 2015 is available in the Official Gazette as well as, as an Annex to our Master Direction on ‘Other Remittance Facilities’ available on our website www.rbi.org.in.

read-more

Q 1. Who is an Authorized Dealer (AD)? +

Ans. An Authorised Dealer (AD) is any person specifically authorized by the Reserve Bank under Section 10(1) of FEMA, 1999, to deal in foreign exchange or foreign securities (the list of ADs is available on www.rbi.org.in) and normally includes banks.

Q.1. What is the definition of MSME ? +

In terms of Government of India Gazette Notification S.O. 2119 (E) dated June 26, 2020 the definition of micro, small and medium enterprises is as under:

(i) A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and turnover does not exceed ₹5 crore;

(ii) A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹10 crore and turnover does not exceed ₹50 crore; and

(iii) A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹50 crore and turnover does not exceed ₹250 crore.

All enterprises are required to register online on Udyam Registration Portal and obtain ‘Udyam Registration Certificate’. (Refer circulars FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020, FIDD.MSME & NFS. BC. No.4/06.02.31/2020-21 dated August 21, 2020 FIDD.MSME & NFS.BC.No.13/06.02.31/2021-22 dated July 07, 2021)

These FAQs attempt to put in place the common queries that users have on the subject in an easy to understand language. The directions relating to the subject of money changing activities including authorisation and functioning of FFMCs, non-bank ADs Category II, and franchisees of Authorised Persons as well as the conduct of foreign exchange transactions with their customers/constituents is laid down in Master Direction on Money Changing Activities as updated from time to time.

read-more

1. Who are Authorised Persons under Foreign Exchange Management Act, 1999 (“FEMA”)? What are the different categories of authorisation/licence granted under Section 10(1) of FEMA 1999? +

Reserve Bank, currently, issues authorisation under Section 10(1) of the Foreign Exchange Management Act, 1999, to

select banks (as Authorised Dealers Category-I) to carry out all permissible current and capital account transactions as per directions issued from time-to-time
select entities (as Authorised Dealers Category-II) to carry out specified non-trade related current account transactions, all the activities permitted to Full Fledged Money Changers and any other activity as decided by the Reserve Bank
select financial and other institutions (as Authorised Dealers Category-III) to carry out specific foreign exchange transactions incidental to their business / activities
select registered companies as Full Fledged Money Changers (FFMC) to undertake purchase of foreign exchange and sale of foreign exchange for specificied purposes viz. private and business travel abroad.

(Ref.No.DoS.CO.ARG/SEC.01/08.91.001/2021-22 April 27, 2021)

The Circular dated April 27, 2021 on ‘Guidelines for Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) of Commercial Banks (excluding RRBs), UCBs and NBFCs (including HFCs), has been issued by RBI with the basic objectives of putting in place ownership-neutral regulations, ensuring independence of auditors, avoiding conflict of interest in auditor’s appointments and to improve the quality and standards of audit in RBI Regulated Entities. These guidelines will also help in streamlining the procedure for appointment of Statutory Auditors across all the Regulated Entities and ensure that appointments are made in a timely, transparent and effective manner.

In view of certain clarifications being sought in the matter, it has been decided to publish Frequently Asked Questions (FAQs) and the necessary clarifications, as given below:

read-more

1. As per Para 6.4, whether the time gap of one year between any non-audit works by the SCAs/SAs for the Entities or any audit/non-audit works for its Group Entities has to be ensured for all the Entities in the Group or the RBI Regulated Entities in the Group ? +

The Group Entities refer to the RBI Regulated Entities in the Group, which fulfill the definition of Group Entity, as provided in the Circular¹. However, if an audit firm engaged with audit/non-audit works for the Group Entities (which are not regulated by RBI) is being considered by any of the RBI Regulated Entities in the Group for appointment as SCAs/SAs, it would be the responsibility of the Board/ACB/LMC of the concerned RBI Regulated Entity to ensure that there is no conflict of interest and independence of auditors is ensured, and this should be suitably recorded in the minutes of the meetings of Board/ACB/LMC.

1. কি ক্ষমতার অধীনে ভরতীয় রিজার্ভ ব্যাংক (আরবিআই) প্রধান নির্দেশ (মাস্টার ডিরেকশন MD ) জারি করে প্রিপেড পেমেন্ট ইন্সট্রুমেন্ট (PPIs ) এর ব্যবহারের বিষয়ে বিশদভাবে জানায় ? +

উত্তর. ধারা 18 যা উল্লেখিত আছে ধারা 10(2) এর PSS আইন 2007, আরবিআই এর অধীনে ব্যাংক এই নির্দেশগুলি জারি করেছে ।

read-more

Q 1. What is the Liberalised Remittance Scheme (LRS) of USD 2,50,000 ?

Ans. Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2,50,000 only.

The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.

In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc.

Q 1. Certain aspects of Master Direction on Regulatory Framework for Microfinance Loans may require additional time for drafting of new policies, getting board-level approvals, making changes in technology systems, training of staff, etc. Whether the timeline for complete rollout of these directions may be extended, while keeping the effective date as April 1, 2022? +

Ans. The effective date of these directions is April 1, 2022. However, in view of implementation related difficulties expressed by some regulated entities (REs), REs are advised to implement these directions completely at the earliest on best effort basis, but not later than October 1, 2022.

Disclaimer:

These FAQs are for general guidance purpose only. In case of any inconsistency(ies) between FAQ and FEMA, 1999, Rules/Regulations/Directions/Permissions issued thereunder, the latter shall prevail.

read-more

Q 1: How is the Special Rupee Vostro Account (SRVA) different from the already existing Rupee Vostro Account provided for under Foreign Exchange Management (Deposit) Regulations, 2016?

Answer: The settlement of International trade through Indian Rupees (INR) is an additional arrangement to the existing system of settlement. SRVA requires prior approval before opening unlike Rupee Vostro account.

Disclaimer:

These FAQs are for general guidance purpose only. In case of any inconsistency(ies) between FAQs and FEMA, 1999 and Rules/Regulations/Directions/Permissions issued thereunder, the latter shall prevail.

read-more

Q1. Can a resident person undertake forex transaction? +

Answer: 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).

Resident persons undertaking forex transactions with unauthorised persons and for purposes other than those permitted under FEMA shall render themselves liable for penal action under the Act.

1. What is Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 +

Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 is a scheme notified by the Government of India on December 16, 2016 which is applicable to every declarant under the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

Note: a) Since SNRR account has been allowed to be used for specified transactions in trade, foreign investments, External Commercial Borrowings, etc., in lieu of sending inward/outward remittances by a person resident outside India in a convertible foreign currency for each transaction with a resident or vice-versa, all precautions need to be taken by Authorized Dealer (AD) banks to ensure identification of the counterparty of such transactions. Some of such precautions are listed out in FAQs below. The onus of ensuring the use and identification of SNRR transactions as per guidelines falls on the AD banks.

b) The provisions of these FAQs will not apply to the SNRR accounts of FPIs, FVCIs and Depository Receipt / FCCB conversion accounts which are operated by a custodian and fall under para 7.1 (i) of Part II of the Master Directions on Deposits and Accounts.

read-more

1. What are the processes to be adopted for transactions undertaken through SNRR A/c? +

Payments initiated to the debit of SNRR Accounts: While handling INR payments to the debit of SNRR A/c favouring a person resident in India, AD Bank shall ensure that the transaction is communicated as SNRR transaction (including purpose code and country details, if applicable) to the recipient bank, either through electronic means or manually.
Payments received for credit to SNRR Accounts: AD Bank holding SNRR account shall ensure that any domestic inward remittance received for credit to SNRR account should be confirmed as SNRR transaction as at A above.
AD banks shall ensure compliance with various FEMA provisions as contained in the FEMA or the Rules or Regulations framed thereunder or directions issued thereunder in respect of all such transactions involving SNRR accounts.

1. Why was the Scheme of Withdrawal of Legal Tender Character of the old Bank Notes in the denominations of ₹ 500 and ₹ 1000 introduced ? +

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw legal tender character of the old Bank Notes in the denominations of ₹ 500 and ₹ 1000 was introduced.

1. What is Indo-Nepal Remittance Facility Scheme under NEFT ecosystem? +

Ans: The Indo-Nepal Remittance Facility (INRF, Scheme) is a cross-border remittance scheme to transfer funds from India to Nepal (one-way only), enabled under the NEFT ecosystem. The scheme was launched by the Reserve Bank of India (RBI) in May 2008 to provide a safe and cost-efficient avenue to migrant Nepalese workers in India to remit money back to their families in Nepal.

In August 2021, the Scheme was enhanced to boost the trade payments between the two countries, and to facilitate payments relating to retirement, pension, etc., to our ex-servicemen who have settled / relocated in Nepal.

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the Regulations made or directions issued thereunder may be referred to. The relevant principal regulations are the Foreign Exchange Management (Remittance of Assets) Regulations, 2016 issued vide Notification No. FEMA 13 (R)/2016-RB dated April 01, 2016. The directions issued are consolidated in the Master Direction No 13 on Remittance of Assets.

read-more

1. What is meant by Remittance of Assets? +

Answer: ‘Remittance of assets' means remittance outside India of funds representing

a deposit with a bank or a firm or a company of:

provident fund balance
superannuation benefits
amount of claim or maturity proceeds of Insurance policy
sale proceeds of shares, securities, immovable property or any other asset held in India

Government securities offer the benefit of safety, liquidity and attractive returns to investors. With the enactment of the Government Securities Act, 2006 Government securities, including the Relief/Savings Bonds issued by the Government of India, have become more investor friendly. Investors of such bonds will particularly benefit from such changes in the Act. To create public awareness in this regard and as a customer friendly measure, the following Frequently Asked Questions (FAQs) along with the answers have been released by the Reserve Bank of India (RBI).

read-more

1. What does one mean by Government security? +

Government security (G-Sec) means a security created and issued by the Government for the purpose of raising a public loan or any other purpose as notified by the Government in the Official Gazette and having one of the following forms.

a Government Promissory Note (GPN) payable to or to the order of a certain person; or
a bearer bond payable to a bearer; or
a stock; or
a bond held in a Bond Ledger Account (BLA).

1. Query What is the definition of 'Basic Savings Bank Deposit Account' (BSBDA)?

Response

All the existing ‘No-frills’ accounts opened pursuant to guidelines issued vide circular RPCD.RF.BC.54/07.38.01/2005-06 dated December 13, 2005 and RPCD.CO.No.RRB.BC.58/ 03.05.33(F) / 2005-06 dated December 27, 2005 and converted into BSBDA in compliance with the guidelines issued in circular RPCD.CO.RRB.RCB.BC.No.24/07.38.01/2012-13 dated August 22, 2012 as well as fresh accounts opened under the said circular should be treated as BSBDA. Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDAs.

1. What are the pre-conditions for the FCNR (B) deposits mobilised by a bank for being eligible to be swapped with RBI under the swap window ? +

Only fresh FCNR (B) deposits mobilized in any of the permitted currencies after September 6, 2013 with a minimum three years maturity and having a lock in period of one year are permissible deposits under the swap window.

Banks are free to mobilise other types of permitted FCNR (B) deposits as specified in the RBI Master Circular on Interest Rates on FCNR (B) Deposits dated July 1, 2013 read with Circular DBOD.Dir.BC. 38/13.03.00/2013-14 dated August 14, 2013. However, such deposits will not qualify as eligible deposit for the purpose of swap with RBI. Banks are advised to maintain separate ledgers for FCNR (B) deposits mobilised under both the schemes along with proper audit trail of transactions.

1. What is LEI and what is its purpose ? +

Ans. The Legal Entity Identifier (LEI) is a 20-character alpha-numeric code used to uniquely identify parties to financial transactions worldwide. It has been implemented to improve the quality and accuracy of financial data reporting systems for better risk management. It is used to create a global reference data system that uniquely identifies every legal entity in any jurisdiction that is party to a financial transaction. It can be obtained from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier Foundation (GLEIF), the body tasked to support the implementation and use of LEI. In India, LEI can be obtained from Legal Entity Identifier India Ltd. (LEIL) (https://www.ccilindia-lei.co.in/), which is also recognised as an issuer of LEI by the Reserve Bank of India (RBI).

1. What is the inflation index to which inflation rate will be linked? +

Inflation rate will be based on the final combined Consumer Price Index [(CPI) base: 2010=100].
The final combined CPI will be used as reference CPI with a lag of three months. For example, the final combined CPI for September 2013 will be used as reference CPI for whole of December 2013.

1. What is Sovereign Gold Bond (SGB)? Who is the issuer? +

SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.

1. When did Payment and Settlement Systems Act, 2007 (PSS Act, 2007) came into effect? +

Ans. The PSS Act, 2007 received the assent of the President on 20th December 2007 and it came into force with effect from 12th August 2008.

These FAQs attempt to put in place the common queries that users have on the subject in easy to understand language. However, for conducting a transaction, the Foreign Exchange Management Act, 1999 (FEMA) and the Regulations made or directions issued thereunder may be referred to. The relevant Principal Regulations are the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 issued vide Notification No. FEMA 22(R)/2016-RB dated March 31, 2016. The directions issued are consolidated in Master Direction on Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) or any other place of business in India by foreign entities.

read-more

Q.1. What action the AD is required to take in case of any adverse reporting in Annual Activity Certificate (AAC) of LO/BO or non-submission of AACs? +

Ans. In case the designated AD Category I bank notices any adverse findings by the auditor in respect of LO/BO or the LO/BO is defaulting in submission of AACs, then the same should be immediately reported to the Reserve Bank.

1. একটি অটোমেটেড টেলার মেশিন কি (এটিএম)?

উত্তর. এটিএম হচ্ছে একটি কম্পিউটারকৃত মেশিন যেটি ব্যাংকের গ্রাহকদের নিজেদের খাতা ব্যবহার করে টাকা বিতরণ বা অন্যান্য আর্থিক বা অনার্থিক লেনদেনের সুবিধা করে দেয় ব্যাংকের শাখায় না গিয়েই ।

1. Query: Are banks required to obtain RBI approval to participate in the Gold Monetization Scheme, 2015?

Response: No. However, banks should submit to RBI the implementation details including names of the Collection and Purity Testing Centres (CPTCs) and refiners with whom they have entered into tripartite agreement and the branches operating the scheme. Banks should also report the amount of gold mobilised under the scheme by all branches in a consolidated manner on a monthly basis in the prescribed format.

1. Which banks are insured by the DICGC ? +

Commercial Banks : All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.

Cooperative Banks : All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI are covered under the Deposit Insurance Scheme. At present all co-operative banks are covered by the DICGC.

Primary cooperative societies are not insured by the DICGC.

1. What is RBI's role with regard to conduct of Government's banking transaction? +

In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union. Further, as per Section 21 of the said Act, RBI has the right to transact Government business of the Union in India.

State Government transactions are carried out by RBI in terms of the agreement entered into with the State Governments in terms of section 21 A of the Act. As of now, such agreements exist between RBI and all the State Governments except Government of Sikkim. Thus, the legal provisions vest Reserve Bank of India with both the right and obligation to function as banker to the government.

To encourage retail participation in the primary market for Government Securities, the facility of non-competitive bidding in Dated Government Securities and Treasury Bills auctions has been introduced. This will enable the investor to purchase a specified number of securities at the weighted average rate of the accepted competitive bids.

read-more

1. Who can participate in the Scheme? +

Participation in the Scheme of non-competitive bidding is open to retail investors. Retail investor is any person including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts and any other entity as prescribed by RBI.

Automated Data Flow (ADF) from banks to Reserve Bank of India

The Reserve Bank of India has placed on its website an Approach Paper describing the goals and objectives of Automated Data Flow (ADF) and advised the banks to implement Automated Data Flow. The approach paper can be accessed through the link Home >> Press Releases >> November 11, 2010. Banks have been individually seeking clarification from RBI officials on ADF. Consolidated questions and responses are presented as FAQs on ADF.

read-more

1. WHAT IS THE BACKGROUND FOR ADF? +

In several of its functions, Reserve Bank of India relies on data submitted by banks and quality of data is of great importance. In order to meet the need for correct and consistent data, the Reserve Bank of India has initiated the project on Automated Data Flow (ADF).

In providing the clarifications, an attempt has been made to assist potential applicants in understanding the terms of the guidelines. The clarifications are specific to the queries and must be read in the overall context of the guidelines.

read-more

Q.1. Is it compulsory for the NOFHC to have individuals as promoters? +

It is not necessary that individual alongwith his related parties have shareholding in the NOFHC. However, if any individual belonging to the Promoter Group chooses to become a promoter of the NOFHC, he along with his relatives (as defined in Section 6 of the Companies Act 1956) and along with entities in which he and / or his relatives hold not less than 50 per cent of the voting equity shares can hold voting equity shares not exceeding 10 per cent of the total voting equity shares of the NOFHC. [para 2 ( C ) (ii) (a) of the guidelines]

The Reserve Bank of India issued a directive vide circular DPSS.CO.OD.No 2785/06.08.005/2017-18 dated April 06, 2018 on ‘Storage of Payment System Data’ advising all system providers to ensure that, within a period of six months, the entire data relating to payment systems operated by them is stored in a system only in India.

Payment System Operators (PSOs) have sought clarification on certain implementation issues, from time to time, from Reserve Bank. The FAQs are intended to provide clarity on those issues to facilitate and ensure expeditious compliance by all PSOs.

read-more

1. Applicability of the direction +

The directions are applicable to all Payment System providers authorised / approved by the Reserve Bank of India (RBI) to set up and operate a payment system in India under the Payment and Settlement Systems Act, 2007.
Banks function as operators of a payment system or as participant in a payment system. They are participants in (i) payment systems operated by RBI viz., RTGS and NEFT, (ii) systems operated by CCIL and NPCI, and (iii) in card schemes. The directions are, therefore, applicable to all banks operating in India.
The directions are also applicable in respect of the transactions through system participants, service providers, intermediaries, payment gateways, third party vendors and other entities (by whatever name referred to) in the payments ecosystem, who are retained or engaged by the authorised / approved entities for providing payment services.
The responsibility to ensure compliance with the provisions of these directions would be on the authorised / approved PSOs to ensure that such data is stored only in India as required under the above directions.

1. Does QA 22 Account continue under Foreign Exchange Management Act, 1999? +

1. Should an AD bank obtain a valid LEI for transactions less than INR 50 crore even if the customer has not done any transaction of INR 50 crore or above on or after October 1, 2022? +

Ans. An AD bank must record valid LEI for cross border transactions of INR 50 crore and more undertaken through it on or after October 01, 2022. Post this, the AD bank must report the valid LEI for all cross border transactions, irrespective of the value of the transactions. However, if the AD bank already has a valid LEI of the entity, it must report it for all transactions irrespective of whether the entity has undertaken a transaction of INR 50 crore or above through it.

1. The guidelines specify that MCLR calculated using methodology prescribed shall correspond to the tenor of funds in the single largest maturity bucket provided it is more than 30% of the entire funds reckoned for determining the MCLR. But my bank does not have a single time bucket which has more than 30% share of the funds reckoned for MCLR. In such a case, the MCLR calculated as per the methodology indicated shall correspond to which tenor? +

Let’s assume a bank has following maturity profile of borrowings:

Sr. No.	Original Maturity	Balance outstanding as a percentage of total funds (other than equity)	Cumulative weightage
1	5 years & above	15.1%	15.1%
2	3 years & above but less than 5 years	11.8%	26.9%
3	2 years & above but less than 3 years	9.3%	36.2%
4	1 year & above but less than 2 years	16.9%	53.1%
5	6 months & above but less than 1 year	24.3%	77.4%
6	91 days & above but less than 6 months	10.5%	87.9%
7	Up to 90 days	12.1%	100%
	Total	100%

In this case, the MCLR shall correspond to the weighted average of tenor of the first three time buckets.

Frequently Asked Questions on Partial Credit Guarantee offered by Government of India (GoI) to Public Sector Banks (PSBs) for purchasing high-rated pooled assets from financially sound Non-Banking Financial Companies (NBFCs) / Housing Finance Companies (HFCs) – vide its notification dated August 10, 2019

read-more

1. Whether the Partial Credit Guarantee (PCG) Scheme of Government of India covers Securitisation transactions and / or Transactions involving Transfer of Assets through Direct Assignment ? +

The scheme is applicable for the transactions involving transfer of Assets through Direct Assignment.

1. What is an EEFC Account and what are its benefits? +

Exchange Earners' Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category - I bank i.e. a bank authorized to deal in foreign exchange. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 per cent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimizing the transaction costs.

1. Inflation Indexed Bonds (IIBs) were issued in the name of Capital Indexed Bonds (CIBs) during 1997. How is the new product of IIBs different from earlier CIBs? +

The CIBs issued in 1997 provided inflation protection only to principal and not to interest payment.
New product of IIBs will provide inflation protection to both principal and interest payments.

Q1. What is an Infrastructure Debt Fund (IDF)? +

Ans : IDFs are investment vehicles which can be sponsored by commercial banks and NBFCs in India in which domestic/offshore institutional investors, specially insurance and pension funds can invest through units and bonds issued by the IDFs. IDFs would essentially act as vehicles for refinancing existing debt of infrastructure companies, thereby creating fresh headroom for banks to lend to fresh infrastructure projects. IDF-NBFCs would take over loans extended to infrastructure projects which are created through the Public Private Partnership (PPP) route and have successfully completed one year of commercial production. Such take-over of loans from banks would be covered by a Tripartite Agreement between the IDF, Concessionaire and the Project Authority for ensuring a compulsory buyout with termination payment in the event of default in repayment by the Concessionaire.

Sr.No.1 What is the meaning of the word ‘person’ mentioned at para 4(1)(iv) of the NBFC-P2P Directions, 2017? Would it also include banks/NBFCs? +

Ans: For the purposes of para 4(iv) of the Directions, the term ’person’ shall include an individual, a body of individuals, a HUF, a firm, a society or any artificial body, whether incorporated or not.

Q.1. What is Factoring ? +

The Factoring Act, 2011 defines the ‘Factoring Business’ as “the business of acquisition of receivables of assignor by accepting assignment of such receivables or financing, whether by way of making loans or advances or in any other manner against the security interest over any receivables”. However, credit facilities provided by banks in the ordinary course of business against security of receivables and any activity undertaken as a commission agent or otherwise for sale of agricultural produce or goods of any kind whatsoever and related activities are expressly excluded from the definition of Factoring Business. The Factoring Act has laid the basic legal framework for factoring in India.

1. As per Para 2.1, the compliance function is expected to ensure compliance to all applicable statutory provisions, apart from other rules, regulations and code of conducts. As different groups/departments in the banks are responsible to ensure compliance to different statutory requirements, what would be the exact expectations from the compliance functions? +

Banks need to ensure compliance to all applicable statutory provisions, rules and regulations, various codes of conducts (including the voluntary ones) and their own internal rules, policies and procedures. It is, however, reiterated that compliance is a shared responsibility of the business units and the compliance function. Therefore, adherence to applicable statutory provisions and regulations needs to be the responsibility of each staff member of the bank and it is the work of the compliance function to ensure the same.

In some banks, there may be separate departments looking after compliance to different statutory and other requirements while the compliance function may be responsible for monitoring compliance with the regulations, internal policies and procedures and reporting to Management. The concerned departments would hold the prime responsibility for their respective areas, which should be clearly outlined, while compliance function would need to ensure overall oversight. If serious gaps are observed in such compliances, the compliance function should take necessary action to correct the compliance culture. There should also be appropriate mechanisms for co-operation among departments and with the Chief Compliance Officer.

1. What is Cheque Truncation? +

Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch. In its place an electronic image of the cheque is transmitted to the paying branch through the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Cheque truncation thus obviates the need to move the physical instruments across bank branches, other than in exceptional circumstances for clearing purposes. This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing.

One of the services rendered by banks as part of their normal banking operations is collection of cheques deposited by their customers, some of which, could also be drawn or payable on banks that are outside the country. Such cheques are called foreign currency cheques and, presently, a significant part of these cheques are US-Dollar denominated payable by banks in the United States of America.

In the interest of better public awareness, the following FAQs have been prepared for cheques denominated in US-Dollars.

read-more

1. I have received a cheque denominated in US Dollars. How does such a cheque differ from the usual Rupee cheques as an instrument of payment? +

Cheques denominated in currencies other than Indian Rupees such as Euro (€), Pound Sterling (£), US Dollar ($), Yen (¥), etc., are called foreign currency cheques. Foreign currency cheques include demand drafts, personal cheques, banker’s cheques, cashier’s cheques, traveller’s cheques, etc. Since such cheques are not payable in India they are, therefore, required to be sent to the country concerned for realization of proceeds.

1. Who can undertake remittance transactions between India and Singapore through the UPI-PayNow linkage? +

Account-holders of the participating banks and financial institutions in India and Singapore can do the cross-border remittance transactions through the UPI-PayNow linkage.

1. In Paragraph 4 of the Annex to the Resolution Framework, it is stated that the reference date for the outstanding amount of debt that may be considered for resolution shall be March 1, 2020. Does this mean that only debt outstanding as on March 1, 2020 can be resolved under the Resolution Framework? +

The stipulation at Paragraph 4 of the Annex to the Resolution Framework is a general clause regarding the date on which the eligibility criteria for resolution under the Resolution Framework may be assessed. The specific application of the reference date with respect to deciding the eligibility of accounts for resolution under Part A and Part B of the Annex to the Resolution Framework have been separately specified in Paragraphs 6 and 13 respectively, i.e, the requirement that the borrowers should be classified as standard, but not in default for more than 30 days with any lending institution as on March 1, 2020. The actual debt that may be considered for resolution will be the outstanding as on the date of invocation.

Q 1. Whether banks can accept interest-free deposits?

Ans. Banks can accept interest free deposits only in current account in terms of paragraph 29.5 of Master Direction- Reserve Bank of India (Interest Rate on Deposits) Directions, 2025.

Reserve Bank of India (RBI) integrated its three erstwhile Ombudsman Schemes viz. (i) the Banking Ombudsman Scheme, 2006, (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018, and (iii) the Ombudsman Scheme for Digital Transactions, 2019, into one Scheme - ‘The Reserve Bank - Integrated Ombudsman Scheme, 2021 (the Scheme / RB-IOS, 2021)’ with effect from November 12, 2021. The Scheme simplifies the grievance redress process at RBI by enabling the customers of Regulated Entities (REs) like banks, Non-Banking Financial Companies (NBFCs), Payment System Participants (PSPs) and Credit Information Companies to register their complaints at one centralised reference point. The objective of the Scheme is to resolve the customer grievances involving ‘deficiency in service’ on part of REs in a speedy, cost-effective and satisfactory manner. These FAQs provide information on RB-IOS, 2021 and related aspects.

read-more

1. What is RB-IOS, 2021? +

The Reserve Bank - Integrated Ombudsman Scheme, 2021 (RB-IOS, 2021/ the Scheme) was launched on November 12, 2021. It integrates the erstwhile three Ombudsman schemes of RBI namely, (i) the Banking Ombudsman Scheme, 2006; (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019. These schemes had limited and different grounds of complaints and limited coverage of REs, apart from jurisdiction related restrictions. RB-IOS, 2021 provides for cost-free redress of customer complaints involving deficiency in services rendered by entities regulated by RBI, if not resolved to the satisfaction of the customers or not replied to within a period of 30 days by the RE.

In addition to integrating the three existing schemes, the Scheme also includes under its ambit additional REs, namely, Non-Scheduled Primary (Urban) Co-operative Banks with a deposit size of ₹50 crore and above and Credit Information Companies. The Scheme adopts ‘One Nation One Ombudsman’ approach by making the RBI’s Ombudsman mechanism jurisdiction neutral.

[Master Directions on Fraud Risk Management in REs were issued on July 15, 2024]

read-more

Q.1 The Master Directions on Fraud Risk Management inter alia require Regulated Entities (REs) to constitute a Special Committee of the ‘Board for Monitoring and Follow-up of cases of Frauds’ (SCBMF) or a ‘Committee of the Executives’ (CoE), as the case may be. What should be the threshold amount of fraud for placing the cases before such Committee?

Ans: As mentioned under Chapter II of the Master Directions, the coverage and periodicity of reviews conducted by SCBMF / CoE shall be decided by the Board of the REs. Accordingly, the threshold amount of fraud cases to be placed before the SCBMF / CoE shall be decided by the Board of the REs, after duly taking into account the scale and complexity of their operations.

General Instructions

The Reserve Bank’s survey on Foreign Liabilities and Assets (FLA) of Mutual Fund (MF) companies and their Asset Management Companies (AMCs) in India is conducted annually. It collects the information from MF companies and AMCs on their external financial liabilities and assets as at end-March of the latest financial year (FY). The information collected from this survey are used in the compilation of India’s Balance of Payments (BoP), International Investment Position (IIP) and other related external sector statistics which provide comprehensive account of the country’s international financial transactions and exposures, in a globally comparable statistical framework.

Confidentiality Clause: The Reserve Bank releases the survey results only at the aggregate level and the institution-wise data furnished in the schedule are kept confidential.

Note: The respondent company should fill-up the survey schedule in excel format (*.xls format), which is available on RBI website. Respondents are requested to read the instruction sheet (available in survey schedule) carefully before filling the survey schedule.

Important Points: The respondent company should follow the below-mentioned points while filling and submitting the survey schedule:

(i) The company must use the latest survey schedule, which is in .xls format, without incorporating any macros.

(ii) The company is required to save the survey schedule in Excel 97-2003 workbook, i.e., in .xls format by following the below-mentioned steps:

Go to Office Button / File → Save As → Save As type
Select “Excel 97-2003 Workbook” and save the survey schedule in .xls format.

(iii) The company is requested not to incorporate any macro in the survey schedule while submitting the same.

(iv) Survey schedule submitted in any other format (other than .xls format) will be rejected by the system.

(v) Ensure that all information furnished in the survey schedule are complete and no information is missed out.

(vi) After filling sections I and II, the company has to fill the declaration sheet, which helps in validating that the information entered by the company are reconfirmed before submission to RBI. This helps to avoid data entry errors, missed data and other errors.

read-more

1. In which month does RBI launch the MF survey ? +

Ans.: The RBI launches the MF survey during the month of June every year with previous financial year ended end-March as the reference date.

Q1. Who is an NRI ? +

Answer: A ‘Non-resident Indian’ (NRI) is a person resident outside India who is a citizen of India.

1. What is UDGAM portal?

ANS: UDGAM refers to Unclaimed Deposits-Gateway to Access inforMation, which is an online portal developed by RBI. It facilitates the registered users to search unclaimed deposits/accounts across multiple banks at one place in a centralised manner.

[Guidelines on Default Loss Guarantee in Digital Lending were issued vide Circular DOR.CRE.REC.21/21.07.001/2023-24 dated June 08, 2023]

read-more

Q.1 As per Para 6 of the Guidelines on Default Loss Guarantee (DLG) in Digital Lending dated June 08, 2023, RE shall ensure that total amount of DLG cover on any outstanding portfolio which is specified upfront shall not exceed five per cent of the amount of that loan portfolio. How to ensure that the portfolio on which DLG has been given is specified upfront?

Ans: The portfolio over which DLG can be offered shall consist of identifiable and measurable loan assets which have been sanctioned (the ‘DLG set’). This portfolio will remain fixed for the purpose of DLG cover and is not meant to be dynamic. Kindly see illustrations at the end.

1. What should a customer do if a credit card is issued without his/her consent (unsolicited card)?

Response: Card issuers are prohibited from issuing unsolicited credit cards and are required to seek prior and explicit consent from the customer before issuing a card. However, if the customer receives an unsolicited card, he/she should refrain from activating or providing consent for activation of card through OTP or any other means. If no consent is received for activating the card, the card-issuer is required to close the credit card account without any cost to the customer within seven working days from the date of seeking confirmation from the customer and shall also intimate the customer that the credit card account has been closed. Subsequent to receiving the intimation from the card-issuer that the card account has been closed, the customer shall destroy the card. Further, the customer may file a complaint with the card-issuer against the issuance of unsolicited card and escalate it to the RBI Ombudsman as per Integrated Ombudsman Scheme (please refer to the response of query 17 below).

Q.2. Who can apply for compounding? +

Ans. Any person who contravenes any provision of the FEMA, 1999 [except section 3(a)] or contravenes any rule, regulation, notification, direction or order issued in exercise of the powers under this Act or contravenes any condition subject to which an authorization is issued by the Reserve Bank, can apply for compounding to the Reserve Bank. Applications seeking compounding of contraventions under section 3(a) of FEMA, 1999 may be submitted to the Directorate of Enforcement (DOE).

2. What is the frequency of this ITES survey ? +

Ans.: Annual.

2. What is the frequency of this survey ? +

Ans.: The survey is conducted annually.

2. Whether banks can pay interest on savings bank accounts quarterly ? +

Banks can pay interest on savings bank accounts at quarterly or longer rests.

2. What is non-competitive bidding for dated Government securities ? +

Non-competitive bidding means the bidder would be able to participate in the auctions of dated government securities without having to quote the yield or price in the bid. Thus, he will not have to worry about whether his bid will be on or off-the-mark; as long as he bids in accordance with the scheme, he will be allotted securities fully or partially.

2. Who is a Banking Ombudsman ? +

The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services covered under the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017).

2. What are the variants of ECS? In what way are they different from each other? +

Primarily, there are two variants of ECS - ECS Credit and ECS Debit. ECS Credit is used by an institution for affording credit to a large number of beneficiaries (for instance, employees, investors etc.) having accounts with bank branches at various locations within the jurisdiction of a ECS Centre by raising a single debit to the bank account of the user institution. ECS Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution. ECS Debit is used by an institution for raising debits to a large number of accounts (for instance, consumers of utility services, borrowers, investors in mutual funds etc.) maintained with bank branches at various locations within the jurisdiction of a ECS Centre for single credit to the bank account of the user institution. ECS Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.

2. Will non-competitive bidding be allowed in all auctions? +

The availability of non-competitive bidding facility in an auction will be announced along with the respective press release and the information is made available on Reserve Bank’s website.

2. How does Reserve Bank of India discharge its statutory obligation of being 'Banker to Government'? +

RBI carries out the general banking business of the governments through its own offices and commercial banks, both public and private, appointed as its agents. Section 45 of the Reserve Bank of India Act, 1934, provides for appointment of scheduled commercial banks as agents at all places or at any place in India, for purposes that it may specify, “having regard to public interest, convenience of banking, banking development and such other factors which in its opinion are relevant in this regard”.

Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments at its Central Accounts Section, Nagpur. It has put in place a well-structured arrangement for revenue collection as well as payments on behalf of Government across the country. A network comprising the Government Banking Divisions of RBI and branches of agency banks appointed under Section 45 of the RBI Act carry out the government transactions. At present all the public sector banks and select private sector banks act as RBI's agents. Only designated branches of agency banks can conduct government banking business.

Q 2. Who are authorized by the Reserve Bank to sell foreign exchange for travel purposes? +

Ans. Foreign exchange can be purchased from any authorised person, such as an AD Category-I bank and AD Category II. Full-Fledged Money Changers (FFMCs) are also permitted to release exchange for business and private visits.

2. What is the objective behind allowing FFMCs to do business? +

To widen the access of foreign exchange facilities to residents and tourists while ensuring efficient customer service through competition.

2. What are the advantages of using NEFT system? +

Ans: NEFT offers the following advantages for funds transfer or receipt:

Round the clock availability on all days of the year.
Near-real-time funds transfer to the beneficiary account and settlement in a secure manner.
Pan-India coverage through large network of branches of all types of banks.
The beneficiary need not visit a bank branch for depositing the paper instruments. Remitter can initiate the remittances from his / her home / place of work using internet banking, if his / her bank offers such service.
Positive confirmation to the remitter by SMS / e-mail on credit to beneficiary account.
Penal interest provision for delay in credit or return of transactions.
No levy of charges by RBI from banks.
No charges to savings bank account customers for online NEFT transactions.
The transaction charges have been capped by RBI.
Besides funds transfer, NEFT system can be used for a variety of transactions including payment of credit card dues to the card issuing banks, payment of loan EMI, inward foreign exchange remittances, etc.
The transaction has legal backing.
Available for one-way funds transfers from India to Nepal.

Q2. Who is a PIO ? +

Answer: A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions:

Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955); or
Who belonged to a territory that became part of India after the 15th day of August, 1947; or
Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause (a) or (b); or
Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause (a) or (b) or (c)

A PIO will include an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955. Such an OCI Card holder should also be a person resident outside India.

Q.2: On which amount will the cap of five per cent be calculated?

Ans: The cap is applicable on the total amount disbursed out of the DLG set at any given time (read with answer to Q.1 above). Kindly see illustrations at the end.

2. What are the salient features of INRF Scheme? How much money can I remit under INRF? +

Ans: One can remit upto ₹2 lakhs per transaction to the beneficiary residing in Nepal; provided the sender maintains account with any NEFT enabled bank branch in India.

Walk-in / Non-customer can remit upto ₹50,000 per transaction to Nepal residing beneficiary.

2. Is it mandatory to obtain and validate the LEI of the non-resident counterparty as well? Does the stipulation of reporting LEI for all transactions of an entity, irrespective of transaction size, once the entity has obtained an LEI number apply for non-residents as well? +

Ans. As regards the non-resident counterparty/ overseas entities, AD bank may be guided by the instructions contained in paragraph 2 of the circular.

2. Briefly explain the entire process flow in Cheque Truncation System (CTS). +

In CTS, the presenting bank (or its branch) captures the data (on the MICR band) and the images of a cheque using their Capture System (comprising of a scanner, core banking or other application) which is internal to them and meeting the specifications and standards prescribed for data and images under CTS.

To ensure security, safety and non-repudiation of data / images, end-to-end Public Key Infrastructure (PKI) has been implemented in CTS. As part of the requirement, the collecting bank (presenting bank) sends the data and captured images duly signed digitally and encrypted to the central processing location (Clearing House) for onward transmission to the paying bank (destination or drawee bank). For participating in the clearing process under CTS, the presenting and paying banks use either the Clearing House Interface (CHI) or Data Exchange Module (DEM) that enables them to connect and transmit data and images in a secure and safe manner to the Centralised Clearing House (CCH).

The Clearing House processes the data, arrives at the settlement, and routes the images and requisite data to the paying banks. This is called presentation clearing. The paying banks through their CHI / DEM receive the images and data from the CCH for further processing.

The paying bank’s CHI / DEM also generates the return file for unpaid instruments, if any. The return file / data sent by the paying banks are processed by the Clearing House in the return clearing session in the same way as presentation clearing and return data is provided to the presenting banks for processing.

The clearing cycle is treated as complete once the presentation clearing and the associated return clearing sessions are successfully processed. The entire essence of CTS technology lies in the use of images of cheques (instead of the physical cheques) for payment processing.

2. What is the Government Securities Act, 2006? +

The Government Securities Act, 2006 (G S Act) is an Act to consolidate and amend the laws relating to Government securities and its management by the RBI and for matters connected therewith.

2. What is de-tokenisation? +

Ans. Conversion of the token back to actual card details is known as de-tokenisation.

2. Are all the farm credit as listed in Paragraph 6.1 of Master Direction FIDD.CO.Plan.1/04.09.01/2016-17 dated July 7, 2016 (as updated) ineligible under the Resolution Framework? Are the JLG loans provided to farmer households by MFIs are eligible for resolution plan under the Resolution Framework?

All the farm credit exposures of all lending institutions, including NBFCs, of the nature listed in Paragraph 6.1 of Master Direction FIDD.CO.Plan.1/04.09.01/2016-17 dated July 7, 2016 (as updated), except for loans to allied activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture are excluded from the scope of the Resolution Framework. Subject to the above, loans given to farmer households would be eligible for resolution under the Resolution Framework if they do not meet any other conditions for exclusions listed in the Resolution Framework.

2. Is there any limit on the amount of cash that can be withdrawn under this facility? +

Ans. Yes. Under this facility, a cardholder can withdraw cash up to ₹2,000 per transaction within an overall monthly limit of ₹10,000.

2. How many Ombudsman for Digital Transactions have been appointed and where are they located ? +

As on date, 21 Ombudsman for Digital Transactions have been appointed with their offices located mostly in state capitals. The addresses and contact details of the offices of the Ombudsman for Digital Transactions is provided under Annex I of the Scheme.

2. Query Whether the guidelines issued on ‘no-frills’ account with 'nil' or very low minimum balances will continue even after the introduction of ‘Basic Savings Bank Deposit Account’? +

Response

No. In supersession of instructions contained in circular RPCD.RF.BC.54/07.38.01/2005-06 dated December 13, 2005 and RPCD.CO.No.RRB.BC.58/03.05.33(F)/2005-06 dated December 27, 2005 on No Frill accounts, banks have now been advised to offer a 'Basic Savings Bank Deposit Account' to all their customers vide RPCD.CO.RRB.RCB.BC.No.24/07.38.01/2012-13 dated August 22, 2012 which will offer minimum common facilities as stated therein. Banks are required to convert the existing 'no-frills' accounts’ into 'Basic Savings Bank Deposit Accounts'.

(ii) If a borrower becomes a ‘specified borrower’ during the last quarter of the FY 2016-17, say on March 31, 2017, then what will be the date of application of the disincentive mechanism? +

As the disincentive mechanism will be applicable from the FY succeeding the FY in which a borrower becomes a ‘specified borrower’, the disincentive mechanism will be applicable from April 1, 2017 for any borrowing from the banking system beyond the NPLL.

2. RTGS-এর মাধ্যমে প্রদান করা অংক কি অপরিবর্তনীয় ?

উত্তর. যেহেতু নিধি নিষ্পত্তি ভারতীয় রিজার্ভ ব্যাংকের খাতার মাধ্যমে হয় সুতরাং দেয় টাকা চূড়ান্ত এবং অপরিবর্তনীয় ।

2. Can a card be issued to other loan accounts such as overdraft facility, cash credit facility, working capital loan, etc.?

Response: Yes, paragraphs 7(b) and 7(c) of the MD have enabled issuance of various types of credit cards which can be customized to access the limits available in different loan accounts, duly aligned to the terms and conditions stipulated for the concerned loan account. For example, a customer availing an overdraft facility from a bank can be issued a type of credit card to access the funds available under the facility. The terms of usage of this credit card (interest charged, repayment schedule, penalty, cash withdrawal limit etc.,) shall correspond to the terms and conditions applicable to the overdraft facility.

Further, para 7(c) provides adequate flexibility to the card-issuers to design Business Credit Cards as envisaged in their Credit Card policy. However, it may be noted that banks cannot issue debit cards to cash credit/loan accounts

2. Are all banks part of the UDGAM portal? What percentage of the unclaimed deposits they represent?

ANS: No. As on March 4, 2024, there are 30 banks, which are part of UDGAM portal, and they cover around 90% of unclaimed deposits (in value terms) in Depositor Education and Awareness (DEA) Fund of RBI. The list of these banks is available on home page of UDGAM (https://udgam.rbi.org.in/unclaimed-deposits/#/login) and in the RBI Press Release dated October 5, 2023 (https://rbi.org.in/en/web/rbi/-/press-releases/money-market-operations-as-on-december-15-2023). The remaining banks are in the process of getting on-boarded.

2. Which are the amounts credited to DEA Fund?

ANS: The amounts credited to the DEA Fund are the credit balances in any deposit account maintained with banks (Commercial Banks, Co-operative Banks), which have not been operated upon for 10 years or more by the depositor, or any amount remaining unclaimed for 10 years or more, and includes the following:
(a) savings bank deposit accounts;
(b) fixed or term deposit accounts;
(c) cumulative/recurring deposit accounts;
(d) current deposit accounts;
(e) other deposit accounts in any form or with any name;
(f) cash credit accounts;
(g) loan accounts after due appropriation by the banks;
(h) margin money against issue of Letter of Credit/Guarantee etc., or any security deposit;
(i) outstanding telegraphic transfers, mail transfers, demand drafts, pay orders, bankers cheques, sundry deposit
accounts, vostro accounts, inter-bank clearing adjustments, unadjusted National Electronic Funds Transfer (NEFT) credit balances and other such transitory accounts, unreconciled credit balances on account of Automated Teller Machine (ATM) transactions, etc.;
(j) undrawn balance amounts remaining in any prepaid card issued by banks but not amounts outstanding against travellers cheques or other similar instruments, which have no maturity period;
(k) rupee proceeds of foreign currency deposits held by banks after conversion of foreign currency to rupees in accordance with extant foreign exchange regulations; and
(l) such other amounts as may be specified by the Reserve Bank from time to time.

2. Do assets already sold need to be displayed on the website? When shall the secured asset possessed be removed from the list published on the website?

Ans: No, the assets possessed and already sold under SARFAESI Act, 2002 need not be displayed on the website.

The secured assets possessed by the REs shall be removed from the website in the event of the following circumstances:

(i) When the secured asset is sold; or

(ii) When the secured creditor receives the outstanding amount (which includes the principal, interest and any other dues payable by the borrower to the secured creditor) or after payment of the agreed settlement amount from the borrower.

2. Trade credit and structured obligations have been excluded from applicability of the circular. Whether Penal interest can be charged on these products, given the deletion of provision related to Penal interest from existing RBI guidelines on “Interest rates on advances”?

The instructions as contained in the circular are not applicable to products covered under the RBI Master Direction - External Commercial Borrowings, Trade Credits and Structured Obligations dated March 26, 2019 (as amended from time to time) and the banks may be guided by the relevant instructions contained in the aforesaid Master Direction.

2. How will inflation protection be provided to both principal and interest rate? Whether inflation component will be paid along with interest? +

Inflation component on principal will not be paid with interest but the same would be adjusted in the principal by multiplying principal with index ratio (IR). At the time of redemption, adjusted principal or the face, whichever is higher, would be paid.
Interest rate will be provided protection against inflation by paying fixed coupon rate on the principal adjusted against inflation.
An example of cash flows on IIBs is furnished below.

Example 1 (For illustration purpose)
Year	Period	Real Coupon	Inflation Index	Index Ratio	Inflation adjusted principal	Coupon Payments	Principal Repayment
I	II	III	IV	V_ti=(IV_ti/IV_t0)	VI=(FV*V)	VII=(VI*III)	VIII
0	28-May-13	1.50%	100	1.00	100.0
1	28-May-14	1.50%	106	1.06	106.0	1.59
2	28-May-15	1.50%	111.8	1.12	111.8	1.68
3	28-May-16	1.50%	117.4	1.17	117.4	1.76
4	28-May-17	1.50%	123.3	1.23	123.3	1.85
5	28-May-18	1.50%	128.2	1.28	128.2	1.92
6	28-May-19	1.50%	135	1.35	135.0	2.03
7	28-May-20	1.50%	138.5	1.39	138.5	2.08
8	28-May-21	1.50%	142.8	1.43	142.8	2.14
9	28-May-22	1.50%	150.3	1.50	150.3	2.25
10	28-May-23	1.50%	160.2	1.60	160.2	2.40	160.2
Example 2 (For illustration purpose)
0	28-May-13	1.50%	100.0	1.00	100	1.50
1	28-May-14	1.50%	106.0	1.06	106	1.59
2	28-May-15	1.50%	111.0	1.11	111	1.67
3	28-May-16	1.50%	104.0	1.04	104	1.56
4	28-May-17	1.50%	98.0	0.98	98	1.47
5	28-May-18	1.50%	99.0	0.99	99	1.49
6	28-May-19	1.50%	105.5	1.06	105.5	1.58
7	28-May-20	1.50%	110.2	1.10	110.2	1.65
8	28-May-21	1.50%	106.5	1.07	106.5	1.60
9	28-May-22	1.50%	104.2	1.04	104.2	1.56
10	28-May-23	1.50%	99.2	0.99	99.2	1.49	100

2. Can one obtain additional foreign exchange for medical treatment outside India?
+

A person visiting abroad for medical treatment can also obtain foreign exchange upto the amount recommended by the doctor or hospital abroad for his treatment. This exchange is to meet the expenses involved in treatment and in addition to the amount referred to in paragraph 1 above.

2. What credits can be made to such accounts ? +

Funds remitted from outside India or those obtained by sale of foreign exchange brought by the tourists to India can be credited to the NRO account.

2. Can foreign nationals resident in India open resident account ? +

Yes. Foreign nationals resident in India can open and maintain resident Rupee account in India.

Who has the authority to permit remittance to Foreign Satellite Channels in respect of advertisement aired on its channel with effect from June 1, 2000? +

Authorised dealers can permit such remittance, subject to the position stated for Question 1 above, after netting of the commission of local advertisement agent, as also local television channel agent and applicable taxes. Authorised dealers are required to satisfy themselves about the applicant's eligibility to advertise, bonafides of the transactions, and that they are in compliance with the Government of India Notification No.G.S.R.381(E) dated May 3, 2000 and S.O.301(E) dated March 30, 2001.

2. WHAT IS THE OBJECTIVE OF ADF? +

ADF seeks to ensure submission of correct and consistent data from the banks straight from their systems to Reserve Bank without any manual intervention.

2. What is the objective of the PSS Act, 2007? +

Ans. The PSS Act, 2007 provides for the regulation and supervision of payment systems in India and designates the Reserve Bank of India (Reserve Bank) as the authority for that purpose and all related matters. The Reserve Bank is authorized under the Act to constitute a Committee of its Central Board known as the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), to exercise its powers and perform its functions and discharge its duties under this statute. The Act also provides the legal basis for “netting” and “settlement finality”. This is of great importance, as in India, other than the Real Time Gross Settlement (RTGS) system all other payment systems function on a net settlement basis.

2. What happens if cheques / instruments are lost in transit / in clearing process? +

If cheques are lost in transit or in the clearing process or at the paying bank's branch under physical instrument delivery clearing, the bank should immediately bring the same to the notice of the presenting customer (beneficiary)’s notice so that the customer can inform the drawer to record stop payment and can also take care that other cheques issued anticipating the credit arising out of the lost cheque are not dishonoured due to non-credit of the amount of the lost cheques / instruments.

It may however be noted that the probability of losing the physical instrument in the hands of paying bank is remote in the locations covered by CTS as clearing is undertaken on the basis of images. If the instrument is lost after lodging with the collecting bank but before truncating the same for sending through image-based clearing, the presenting bank should follow the procedure indicated above.

The customer is entitled to be reimbursed by banks for related expenses for obtaining duplicate instruments and interest for reasonable delays in obtaining the same.

Q.2 What legal forms can IDF be set up as and who will be the regulators? +

Ans : Infrastructure Debt Funds (IDFs), can be set up either as a Trust or as a Company. A trust based IDF would normally be a Mutual Fund (MF), regulated by SEBI, while a company based IDF would normally be a NBFC regulated by the Reserve Bank.

Q.2. What are the exposure limits for NBFC-IFCs?

Ans. Under scale-based regulations (SBR) for NBFCs, an NBFC-IFC can be in the middle layer or the upper layer (and not in the base layer), as the case may be. Depending on the layer under which an NBFC-IFC is placed, the exposure limits are given below:

	Exposure limits for the NBFC- IFCs in the middle layer (as a % of Tier 1 capital)	Exposure limits for NBFC-IFCs in the upper layer as per large exposure framework (as % of eligible capital base)
Single borrower	30%	25% (additional 5% with Board approval)
Single group of borrowers	50%	35%

2. What is NDS-OM Web Module? +

To further enhance the access of such Gilt Account Holders (herein after referred to as GAHs) to NDS-OM, an internet based web application is provided to such clients who can now have direct access to NDS –OM, the system owned by RBI. The internet based utility permits GAH to directly trade (buying and selling) in Government Securities (G-Sec) in the secondary market. The access is however, subject to controls by respective Primary Member (PM) with whom GAHs have gilt account and current account.

2. What is an application ? +

An application can be any application, addressed to any department of RBI, through which members of the public can apply (except such applications for which specific instructions have been given regarding mode of submission, etc.)

Q.2. What is the status of lending by banks to this sector ? +

Bank’s lending to the Micro, Small and Medium enterprises as under is eligible to be reckoned for priority sector advances:

(i) The definition of MSMEs will be as per Government of India, Gazette Notification S.O. 2119 (E) dated June 26, 2020 read with circulars FIDD.MSME & NFS.BC.No.3/06.02.31/2020-21 dated July 2, 2020, FIDD.MSME & NFS. BC. No.4/06.02.31/2020-21 dated August 21, 2020, FIDD.MSME & NFS.BC.No.13/06.02.31/2021-22 dated July 07, 2021 and updated from time to time.

(ii) Further, such MSMEs should be engaged in the manufacture or production of goods, in any manner, pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of any service or services. All bank loans to MSMEs conforming to the above guidelines qualify for classification under priority sector lending.

Detailed guidelines on lending to the Micro, Small and Medium enterprises are available in our Master Direction FIDD.MSME & NFS.12/06.02.31/2017-18 dated July 24, 2017. The instructions issued by RBI, to banks, on various matters are available on our website www.rbi.org.in.

2. Is it permissible for REs to offer differential interest rates on green deposits? Whether there is any bearing on the interest rate payable by REs to depositors, if the funds raised under the framework remain unallocated/ unutilized towards the green activities or projects? Is there any restriction on premature withdrawal of green deposits?

(a) The extant guidelines as detailed below do not permit REs to offer differential rate of interest on green deposits:

(b) The REs shall pay interest on green deposits to their customers as per agreed terms and conditions and aforesaid directions irrespective of allocation/ utilisation of proceeds.

(c) There is no restriction on premature withdrawal of green deposits, however, the REs, shall adhere to the extant guidelines referred to above. Further, premature withdrawal would not have any bearing on the activities/ projects undertaken using the proceeds of green deposits.

2. RBI may please clarify the treatment of MTM appreciation /depreciation of the IIBs, whether this would form a separate classification or a part of the Government Securities ‘classifcation’ and the appreciation/depreciation netted out with other G.Secs under this classification. +

Ans: IIBs are government securities and as such should be classified accordingly as indicated in para 2 (i) of Master circular on investments:

Classification

i) The entire investment portfolio of the banks (including SLR securities and non-SLR securities) should be classified under three categories

viz. 'Held to Maturity',

'Available for Sale' and 'Held for Trading'

* However, in the balance sheet, the investments will continue to be disclosed as per the existing six classifications:

viz. a) Government securities,

b) Other approved securities,

c) Shares,

d) Debentures & Bonds,

e) Subsidiaries / joint ventures and

f) Others (CP, Mutual Fund Units, etc.).

2. What can I read for further guidance on RTGS and NEFT payment systems? +

Ans. Following links can be perused for understanding RTGS and NEFT systems: -

RTGS System Regulations

NEFT Procedural Guidelines

FAQs on RTGS

FAQs on NEFT

Master Guidelines on Access Criteria for Payment Systems

Q2. Who are the members of the ACU? +

Ans. The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently the members of the ACU.

2. What does the DICGC insure ? +

The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits
Deposits of foreign Governments;
Deposits of Central/State Governments;
Inter-bank deposits;
Deposits of the State Land Development Banks with the State co-operative bank;
Any amount due on account of and deposit received outside India
Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India

Q.2. At how many centres and bank branches is the EFT facility available? +

Ans The EFT system presently covers all the branches of the 27 public sector banks and 55 scheduled commercial banks at the 15 centres (viz., Ahmedabad, Bangalore, Bhubneshwar, Kolkata, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthpuram). Funds transfer is possible from any branch of these banks at these centres to other branch of any bank at these centres both inter-city and intra-city.

2. What is a foreign currency account? +

Answer: A Foreign Currency Account is an account held or maintained in currency other than the currency of India or Nepal or Bhutan.

2. ‘শূন্য’ বা অত্যন্ত ন্যূনতম ব্যালান্স সহ ‘নো-ফ্রিলস’ অ্যাকাউন্টে ইস্যুকৃত নির্দেশিকা চালু থাকবে কি না এমনকি ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ চালু হওয়ার পরও?

না। নো-ফ্রিল অ্যাকাউন্টের ওপর সার্কুলার DBOD.No.Leg. BC.44/09.07.005/2005-06 তারিখ 11 নভেম্বর 2005-এ নির্দেশিকা বলে, ব্যাংকগুলিকে এখন পরামর্শ দেওয়া হয়েছে তাদের সব গ্রাহককে একটি ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ অফার করতে DBOD.No.Leg.BC.35/09.07.005/20012-13 তারিখ 10 আগস্ট 2012-তে, যা অফার করবে ন্যূনতম সাধারণ সুবিধা যেমন বলা হয়েছে। ব্যাংকগুলির এখন স্থায়ী ‘নো-ফ্রিল’ অ্যাকাউন্টকে ‘বেসিক সেভিস ব্যাংক ডিপোজিট অ্যাকাউন্ট’-এ রূপান্তর করা দরকার।

2. PPIগুলি কি ? +

উত্তর. PPI হচ্ছে একটি দলিল যা দিয়ে বস্তু এবং পরিষেবা ক্রয় করা যায়, আর্থিক পরিষেবা, টাকা প্রেরণের সেবা ইত্যাদির সঙ্গে, সেইসকল মূল্যের বিনিময়ে যা জমাছে এই দলিলে । PPI, যা একটি দেশে জারি করা যেতে পারে তা তিনটি ধরণে বিভক্ত : ক. বন্ধ ব্যবস্থার PPI খ. অর্ধেক-বন্ধ ব্যবস্থা PPI গ. খোলা ব্যবস্থার PPI

2. হোয়াইট লেভেল এটিএমগুলি (WLA ) কি?

উত্তর. এটিএম যেটি স্থাপন করা, চালানো ইত্যাদি যদি অ-ব্যাংক দ্বারা হয় তবে তাঁদের ডব্লিউএলএ বলা হয়। অ-ব্যাংক এটিএম চালকরা অনুমোদিত হয় ভারতীয় রিজার্ভ ব্যাংকের (আরবিআই) পরিসেবা ও নিষ্পত্তি ব্যবস্থা আইন 2007 এর মাধ্যমে। WLA অনুমোদিত চালকদের তালিকা উপলব্ধ আছে আরবিআই-এর ওয়েবসাইটে যার লিংক হচ্ছে https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043

2. Which transactions should include LEI information ? +

Ans. All single payment transactions of ₹50 crore and above undertaken by entities (non-individuals) should include remitter and beneficiary LEI information. This is applicable to transactions undertaken through the NEFT and RTGS payment systems.

In case of RTGS, both customer payment and inter-bank transactions meeting the above criterion should include LEI information.

2. Who is responsible for FEMA compliance for trade transactions? +

A. For Debit to SNRR A/c (for onward credit domestically)

In case of receipt of Export proceeds by an Indian party by debit to SNRR account of the overseas buyer:

As in case of any inward remittance received for export payment, the AD bank handling the export documents shall ensure compliance with all export related rules/regulation/ guidelines prescribed under FEMA.
The AD bank maintaining SNRR account shall be responsible for performing due diligence of the overseas client and related FEMA compliances. Further, it shall, while transferring the funds to the AD bank of the Indian exporter (beneficiary’s bank), provide complete KYC details of the account holder (Name, address, country etc.), purpose of remittance, currency and amount of remittance, name and account number of the beneficiary etc. so as to enable the latter to close the entries in EDPMS with the respective remittance.

B. For Credit to SNRR A/c (received from a domestic account)

In case of payment for Imports by an Indian party by credit to the SNRR account of the overseas seller:

As in case of any outward remittance sent for import payment, the AD bank handling import documents and remitting funds (Importer’s Bank) shall ensure compliance with all related import rules/regulations/guidelines prescribed under FEMA.
It shall also communicate all details related to the importer as required by the AD bank maintaining the SNRR account of the overseas client.

C. Similarly, in case of ECB, Trade credits, foreign investments, etc., the designated AD bank maintaining the resident customer’s A/c will be responsible for ensuring compliance with FEMA provisions, including issuance of FIRC, wherever applicable, on the same lines as it would have done in case of money received in freely convertible currency through an inward remittance. Further, the banks involved in the transaction shall be responsible for sharing of the details of the transactions on similar lines as above.

2. Who are the participants in TReDS ? +

Ans. Sellers, buyers and financiers are the participants on a TReDS platform.

2. Can foreign nationals resident in India open resident account? +

Yes. Foreign nationals resident in India can open and maintain resident Rupee account in India.

Q 2: What is new in this arrangement?

Answer: The settlement through Indian Rupees (INR) is an additional arrangement to the existing system that uses freely convertible currencies and will work as a complimentary system. This will reduce dependence on hard (freely convertible) currency.

2. Whether Model Education Loan Scheme, 2022, is applicable to Regional Rural Banks, Cooperative Banks, NBFCs, Fintech companies, etc.?

No. Model Education Loan Scheme, 2021 is currently applicable to Scheduled Commercial Banks (SCBs) only. The list of SCBs is available here.

Q 2. Whether all members of a household are mandatorily required to become borrowers of a microfinance loan? +

Ans. The directions require assessment of income and indebtedness at household level. There is no requirement of treating all members of the household as applicants/ borrowers of a loan which can be provided to an individual member. Board-approved policies of REs may include the methodologies/ operational frameworks to assess income and indebtedness of all members of the household.

Q2. Who are authorised persons? +

Answer: An authorised person is an entity authorised by the Reserve Bank of India to deal in forex. It can be an authorised dealer, money changer, off-shore banking unit or any other person for the time being authorised under Sub-Section (1) of Section 10 of FEMA. The list of authorised persons is available here.

2. In para 2.4 of the circular, the age limit of not more than 55 years is mentioned as one of the eligibility criteria for appointment as CCO. What would be the reference point for considering the age limit? +

The age-limit in para 2.4 of the aforesaid circular was given with the objective of ensuring that the responsibilities associated with CCO are treated as a specialised and core function. Keeping in view the above principle, if a person identified as CCO is above the age of 55 years, however, she/he has had continuous association with the compliance function either as CCO or otherwise, the age limit of 55 years may be taken as the date from when the continuous association with the compliance function started for the identified CCO. Illustratively, if a person identified for CCO role has age more than 55 years but she/he has been continuously associated with the compliance function prior to completing the age of 55 years, the person would be eligible for such appointment.

2. Where should the payment data be stored? +

The entire payment data shall be stored in systems located only in India, except in cases clarified herein.

Q 2. What is an NBFC-Factor ? +

Ans. NBFC- Factor means a non-banking financial company fulfilling the Principal business criteria i.e. whose financial assets in the factoring business constitute at least 75 percent of its total assets and income derived from factoring business is not less than 75 percent of its gross income, has Net Owned Funds of Rs. 5 crore and has been granted a certificate of registration by RBI under section 3 of the Factoring Regulation Act, 2011.

2. What is this scheme ? +

The legal tender character of the bank notes in denominations of ₹ 500 and ₹ 1000 issued by the Reserve Bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. The Specified Bank Notes (SBNs) were allowed to be exchanged for value at RBI Offices till December 30, 2016 and till November 25, 2016 at bank branches/Post Offices and deposited at any of the bank branches of commercial banks/Regional Rural Banks/Co-operative banks (only Urban Co-operative Banks and State Co-operative Banks) or at any Head Post Office or Sub-Post Office during the period from November 10, 2016 to December 30, 2016.

2. Who is eligible to deposit in PMGKS? +

The deposit under this Scheme shall be made by any person who declares undisclosed income under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016.

2.What are the assets out of/ from which funds may be remitted and by whom? +

Answer:

A foreign national of non-Indian origin (other than Nepal/ Bhutan/ PIO)	An NRI/ PIO	Indian entity	A branch or office established in India by a person resident outside India
1. The person has retired from employment in India. 2. Inherited assets from a person referred to in Sec 6(5)¹ of FEMA 3. The person is a non-resident widow/ widower and has inherited assets from her/ his deceased spouse who was an Indian national resident in India. May remit up to USD 1 Million in a financial year	1. From the balances of NRO account – subject to declaration* 2. Sale proceeds of assets 3. Assets acquired from legacy/ inheritance/ deed of settlement May remit up to USD 1 Million in a financial year *Where the remittance is to be made from the balances held in the NRO account, the Authorised Dealer should obtain an undertaking from the account holder stating that “the said remittance is sought to be made out of the remitter’s balances held in the account arising from his/ her legitimate receivables in India and not by borrowing from any other person or a transfer from any other NRO account and if such is found to be the case, the account holder will render himself/ herself liable for penal action under FEMA.”	Its contribution towards PF/ superannuation fund/ pension for expatriate employee who are resident but not permanently resident.	Remit its winding up proceeds after submission of requisite documents

2. Who can open an EEFC account? +

All categories of foreign exchange earners, such as individuals, companies, etc., who are resident in India, may open EEFC accounts.

2.From where one can buy foreign exchange? +

Foreign exchange can be purchased from any authorised dealer. Besides authorised dealers, full-fledged money changers are also permitted to release exchange for business and private visits.

Q.2 Who is eligible to make overseas investment ? +

Resident corporate entities and partnership firms registered under the Indian Partnership Act, 1932 are eligible to make investment abroad in Joint Ventures/ Wholly Owned Subsidiaries. Resident individuals may also invest abroad as detailed in Q.3.

2. RBI has advised banks to frame their own Cheque Collection Policy covering various aspects relating to collection of Rupee cheques. Are there similar guidelines for collection of foreign currency cheques as well? +

Cheques denominated in US Dollars (USD cheques) constitute a major share of foreign currency cheques deposited by customers for realisation. In order to make the USD cheque collection process more efficient and transparent, RBI has advised banks to refine their USD cheque collection procedures and frame their own USD Cheque Collection Policy covering aspects like mode of collection, collection period, charges for collection, etc. This policy shall be made part of their regular Cheque Collection Policy.

Q.2. Where the promoter of NOFHC meets with condition of 2(C)(ii)(b), whether individual promoter/ his relatives / entities in which they hold more than 50 per cent shares must hold equity shares in NOFHC [refer 2(C)(ii)(a)]. +

Q.2. Can LO/BO maintain more than one account in India? +

Ans. No, if an LO/BO wants to open more than one account it has to obtain prior permission of the Reserve Bank through its AD Category I bank justifying the reason for additional account.

2. Why should I buy SGB rather than physical gold? What are the benefits? +

The quantity of gold for which the investor pays is protected, since he receives the ongoing market price at the time of redemption/ premature redemption. The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form. The bonds are held in the books of the RBI or in demat form eliminating risk of loss of scrip etc.

Q 2. What are the prohibited items under the Scheme? +

Ans. The remittance facility under the Scheme is not available for the following:

Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
Remittance for trading in foreign exchange abroad.
Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time.
Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
Gifting by a resident to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.

2. How many NBFC Ombudsman have been appointed and where are they located ? +

As on date, four NBFC Ombudsman have been appointed with their offices located at Chennai, Kolkata, New Delhi and Mumbai. The addresses, contact details and territorial jurisdiction of the Ombudsman is provided in the Annex I of the Scheme.

Sr.No. 2 Would electronic platforms serving as Direct Service Agents (DSA)/ Business Correspondents for banks and/ or NBFCs fall under the purview of the NBFC-P2P Directions ? +

Ans: Electronic Platforms that assist only banks, NBFCs and other regulated AIFIs to identify borrowers are not to be treated as P2P platforms. However, in cases where, apart from banks or NBFCs or AIFIs, other retail lenders use the platform for lending, the platform will have to register separately as an NBFC-P2P.

2. Whether the tenor premium charged will be for contractual tenor or residual tenor? +

Since floating rate loans are subject to periodic resets, the tenor premium will be the appropriate premium for the residual period up to the next reset date.

2. What is Clean Note Policy? +

It is a policy adopted by RBI to ensure availability of good quality banknotes to the members of public.

2. Which are the participating banks in India for receiving remittances through the UPI-PayNow linkage? +

Currently, participating banks in India for receiving remittances through the UPI-PayNow linkage are:

Axis Bank
DBS Bank India
ICICI Bank
Indian Bank
Indian Overseas Bank
State Bank of India

2. Whether the guidelines on Minimum Holding Period (MHP) and Minimum Retention Requirement (MRR) prescribed for Direct Assignment Transactions are applicable to the scheme ? +

MHP & MRR requirements are not applicable to the transactions under the PCG Scheme.

2. What is the nature of swap offered by RBI ? +

The swap is in the nature of a simple buy/sell foreign exchange swap from the RBI side covering just the principal portion of the deposits and not the interest component.

2. Who is eligible to invest in the Inflation Indexed National Saving Securities-Cumulative (IINSS-C)? +

Only retail investors would be eligible to invest in these securities. The retail investors would include individuals, Hindu Undivided Family (HUF), charitable institutions registered under section 25 of the Indian Companies Act and Universities incorporated by Central, State or Provincial Act or declared to be a university under section 3 of the University Grants Commission Act, 1956 (3 of 1956).

2. As per Para B (iv) of Annex I, if any partner of a Chartered Accountant firm is a director in any Entity, the said firm shall not be appointed as SCA/SA of any of the Group Entities of that Entity. Whether this stipulation is applicable to all the Entities in the Group or the RBI Regulated Entities in the Group ? +

The Group Entities here refer to the RBI Regulated Entities in the Group, which fulfill the definition of Group Entity, as provided in the Circular. Therefore, if any partner of a Chartered Accountant firm is a director in an RBI Regulated Entity in the Group, the said firm shall not be appointed as SCA/SA of any of the RBI Regulated Entities in the Group. However, if an audit firm is being considered by any of the RBI Regulated Entities in the Group for appointment as SCAs/SAs, whose partner is a director in any of the Group Entities (which are not regulated by RBI), the said audit firm shall make appropriate disclosures to the ACB as well as Board /LMC.

2. Who issues these cards? +

Ans: Debit cards are issued by banks and are linked to a bank account. Credit cards are issued by scheduled commercial banks (excluding Payments banks), Regional Rural Banks (in collaboration with other banks), and Urban Cooperative Banks, Non-Bank Financial Companies (subject to approval from RBI). Prepaid cards are issued by eligible banks and authorised non-banks.

Q2: Clause 15 of MD-TLE, which leaves it to the discretion of the contracting parties to decide upon the distribution of the principal and interest income from the transferred loans, and Clause 34, which requires consideration to be paid upfront, appear contradictory.

Ans: The provisions of Clause 34, that require the transfer to be only on cash basis at the time of transfer of loans, shall be without derogation of the provisions of clause 15, which pertains to retained economic interest. However, it is reiterated that any retention of economic interest under clause 15 by the transferor must not result in credit enhancement.

Q 2: Whether any service provider to whom RE has outsourced some of its credit intermediation activities would fall within the definition of Lending Service Provider (LSP) even if the lending transaction in question does not fall under the definition of ‘Digital Lending’? +

Ans: Para 1 of the Annex I to the Circular dated September 02, 2022 specifies that these Guidelines are applicable to ‘Digital Lending’. Hence, only if a lending transaction qualifies under the definition of ‘Digital Lending’, will the service provider facilitating such lending be designated as LSP.

Q.2 In terms of paragraph 2(i) and paragraph 4 of the circular, REs have been advised to communicate to the borrowers the impact of interest rate reset on EMI, in a floating rate personal loans, both at the time of sanction as well as during the tenure of the loan. In this context, when and at what frequency shall REs communicate with the borrower? What will be the content of the communication?

Ans: Communications to borrowers envisaged in the circular are:

(a) At the time of sanction:

Annualised rate of interest/ Annual Percentage Rate (APR), as applicable, shall be disclosed in the Key Fact Statement (KFS) and the loan agreement.
The possible impact of change in benchmark interest rate on the loan.

(b) During the tenure of the loan:

Subsequently, any increase in the EMI/tenor on account of the external benchmark rate shall be communicated; and
Quarterly statements shall be provided disclosing at the minimum, the principal and interest recovered till date, EMI amount, number of EMIs left and annualized rate of interest for the tenor of the loan.

2. How can e₹ be held and used?

Ans: e₹ can be held and transacted through e₹ wallets offered by banks and non-banks for person-to-person payments or person-to-merchant transactions. One can start using the e₹ wallet by downloading the e₹ app from the Play Store or the App Store and by following the App instructions. Detailed instructions on using the e₹ wallet can be checked with the banks and non-banks providing the wallet. Payments to merchants can be made by scanning either the CBDC QR code or the UPI QR code available at the respective merchant location.

2. Query: Who is eligible to make a deposit? +

Response: Resident Indians [Individuals, HUFs, Proprietorship & Partnership firms, Trusts including Mutual Funds/Exchange Traded Funds registered under SEBI (Mutual Fund) Regulations, Companies, charitable institutions, Central Government, State Government or any other entity owned by Central Government or State Government].

2. When is the pension credited to the pensioner's account by the paying branch?

The pension paying banks credit the pension amount in the accounts of the pensioners based on the instructions given by the Pension Paying Authorities.

RESERVE BANK OF INDIA
FINANCIAL MARKETS OPERATION DEPARTMENT

Average of Working Days	INR To 100 USD
1945-46	332.25
1946-47	331.96875
1947-48	331.75
1948-49	331.75
1949-50	407.4375
1950-51	477.50
1951-52	478.15625
1952-53	478.25
1953-54	476.25
1954-55	477.78125
1955-56	478.9375
1956-57	479.22
1957-58	478.32
1958-59	476.54
1959-60	476.80
1960-61	476.82
1961-62	477.20
1962-63	477.20
1963-64	478.29

Average of Working Days	1 USD to INR 100
1960-61	20.97
1965-66	20.90
1966-67	20.86 / 13.20
1967-68	13.22
1968-69	13.12
1969-70	13.26
1970-71	13.23

Q 2. What is meant by Reinvestment Deposit?

Ans. In terms of paragraph 4.22 of Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2025, reinvestment deposits are those deposits where interest (as and when due) is reinvested at the same contracted rate till maturity which is withdrawable with the principal amount on maturity date.

2. What is the RBI Alternate Grievance Redress (AGR) Framework? +

The AGR Framework of RBI comprises of RBI Ombudsmen (RBIOs), Consumer Education and Protection Cells (CEPCs) and CEPD. The RBIOs function under the framework of RB-IOS, 2021. The CEPCs take up complaints against REs not falling under the ambit of RB-IOS, 2021. CEPD provides assistance to the Appellate Authority (AA) under the RB-IOS and processes the appeal cases.

Q.2 Is discretion available to REs for reporting of incidents of frauds to the Law Enforcement Agencies (LEAs), especially in case of small value frauds? Or whether banks are mandatorily required to report small value frauds to police under Master Directions on Fraud?

Ans: Paragraph 5.1 of the Master Directions requires Regulated Entities (REs) to immediately report incidents of fraud to Law Enforcement Agencies (LEAs), subject to applicable laws. Under Section 33 of Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), a person is not mandatorily required to report to LEAs information on commission of all offences, but only on those offences which are listed in that Section. REs are, however, advised to mandatorily report incidents of fraud involving an amount of ₹1 lakh or more to LEAs.

3. How does the NEFT system operate? +

Ans: Following is the step-wise flow of NEFT transaction.

Step-1: An individual / firm / corporate willing to transfer funds through NEFT can use the internet / mobile banking facility offered by his / her bank for initiating online funds transfer request. The remitter has to provide details of beneficiary such as, name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number, etc. for addition of the beneficiary to his / her internet / mobile banking module. Upon successful beneficiary addition, the remitter can initiate online NEFT funds transfer by authorising debit to his / her account. Alternatively, the remitter can also visit his / her bank branch for initiating NEFT funds transfer through branch / off-line mode. The customer has to fill-in the beneficiary details in NEFT application form available at the bank branch and authorise the branch to debit to his / her account to the extent of the amount requested in NEFT application form.

Step-2: The originating bank prepares a message and sends the message to its pooling centre, also called the NEFT Service Centre.

Step-3: The pooling centre forwards the message to the NEFT Processing Centre, operated by the RBI, to be included for the next available batch.

Step-4: The Processing Centre sorts the funds transfer transactions beneficiary bank-wise and prepares accounting entries to receive funds from the originating banks (debit) and give the funds to the beneficiary banks (credit). Thereafter, bank-wise remittance messages are forwarded to the beneficiary banks through their pooling centre (NEFT Service Centre).

Step-5: The beneficiary banks receive the inward remittance messages from the Processing Centre and pass on the credit to the beneficiary customers’ accounts.

Q.3 When should one apply for compounding? +

Ans. When a person is made aware of the contravention of the provisions of FEMA, 1999 by the Reserve Bank or any other statutory authority or the auditors or by any other means, she/he may apply for compounding. One can also make an application for compounding, suo mo-to, on becoming aware of the contravention.

3. What is the timeline for the submission in ITES Survey ?

Ans.: The respondent companies/LLPs/proprietorship firms can submit their responses on or before July 15 of every year.

3. Which entities are required to participate in the survey?

Ans.:MF companies in India are required to participate in this survey.

3. Whether banks can pay interest on term deposits monthly ? +

Interest on term deposits is payable at quarterly or longer rests. Banks can pay interest monthly by discounting the quarterly interest accrued.

3. What are the advantages of the non-competitive bidding facility ? +

The non competitive bidding facility will encourage wider participation and retail holding of government securities.It will enable individuals , firms and other mid segment investors who do not have the expertise to bid competitively in the auctions.Such investors will have fair chance of assured allotments at the rate which emerges in the auction.Scope of the scheme

3. How many Banking Ombudsmen have been appointed and where are they located ? +

As on date, twenty Banking Ombudsmen have been appointed with their offices located mostly in state capitals. The addresses and contact details of the Banking Ombudsman offices have been provided under Annex I of the Scheme.

3. At how many places in the country is ECS Scheme available? +

Ans : Based on the geographical location of branches covered, there are three broad categories of ECS Schemes – Local ECS, Regional ECS and National ECS.These schemes are either operated by RBI or by the designated commercial banks. NACH is also one of the form of ECS system operated by NPCI and further details about NACH is available at NPCI web site under the link http://www.npci.org.in/clearing_faq.aspx.

Local ECS – this is operating at 81 centres / locations across the country. At each of these ECS centres, the branch coverage is restricted to the geographical coverage of the clearing house, generally covering one city and/or satellite towns and suburbs adjoining the city.

Regional ECS – this is operating at 9 centres / locations at various parts of the country. RECS facilitates the coverage all core-banking-enabled branches in a State or group of States and can be used by institutions desirous of reaching beneficiaries within the State / group of States. The system takes advantage of the core banking system in banks. Accordingly, even though the inter-bank settlement takes place centrally at one location in the State, the actual customers under the Scheme may have their accounts at various bank branches across the length and breadth of the State / group of States.

National ECS – this is the centralized version of ECS Credit which was launched in October 2008. The Scheme is operated at Mumbai and facilitates the coverage of all core-banking enabled branches located anywhere in the country. This system too takes advantage of the core banking system in banks. Accordingly, even though the inter-bank settlement takes place centrally at one location at Mumbai, the actual customers under the Scheme may have their accounts at various bank branches across the length and breadth of the country. Banks are free to add any of their core-banking-enabled branches in NECS irrespective of their location. Details of NECS Scheme are available on the website of Reserve Bank of India at http://www.rbi.org.in/scripts//en/web/rbi/-/national-electronic-clearing-service-procedural-guidelines-2345

The list of centres where the ECS facility is available has been placed on the website of Reserve Bank of India at http://www.rbi.org.in/Scripts/ECSUserView.aspx?Id=26. Similarly, the centre-wise list of bank branches participating at each location is available on the website of Reserve Bank of India at http://www.rbi.org.in/scripts/ECSUserView.aspx?Id=27

3. What type of instruments can be presented for clearing through CTS? What is CTS-2010 Standard Cheque? +

Only CTS-2010 standards compliant instruments can be presented for clearing through CTS.

CTS-2010 standards contain certain benchmarks towards achieving standardization of cheques issued by banks across the country. These include provision of mandatory minimum-security features on cheque forms like quality of paper, watermark, bank’s logo in invisible ink, void pantograph, etc., and standardisation of field placements on cheques. The minimum-security features and standardisation help presenting banks while scrutinising / recognising cheques of drawee banks in an image-based processing scenario.

3. What would be the amount offered for non-competitive bidding? +

In the specified auctions of Government of India Dated Securities and T-Bills, non-competitive bids up to 5 per cent of the notified amount will be allowed within the notified amount. That is, if the notified amount is Rs.1,000 crore, the amount reserved for non-competitive bidders would be Rs.50 crore and the remaining Rs.950 crore will be put up for competitive auctions.

3. How payment into government account is made? +

All monies for credit to government account like taxes or other remittances can be made by filling the prescribed challans of the Government/Department concerned. The tax payers are encouraged to pay dues to Government electronically by login in to respective government portals. However, if they prefer to pay dues by way of cash, cheque, demand draft, these are required to be tendered with the authorized agency bank branches along with requisite challan

3 Who is a Resident? +

Ans. Resident as defined in Sec 2(v) ² of FEMA, 1999. Further, the onus is on the individual to prove his/ her residential status, if questioned by any authority.

Q 3. How much foreign currency can be carried in cash for travel abroad? +

Ans. Travellers going to all countries other than (a) and (b) below are allowed to purchase foreign currency notes / coins only up to USD 3000 per visit. Balance amount can be carried in the form of store value cards, travellers cheque or banker’s draft. Exceptions to this are (a) travellers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency notes and coins not exceeding USD 5000 or its equivalent per visit; (b) travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States who can draw entire foreign exchange (up-to USD 250,000) in the form of foreign currency notes or coins.

For travellers proceeding for Haj/ Umrah pilgrimage, full amount of entitlement (USD 250,000) in cash or up to the cash limit as specified by the Haj Committee of India, may be released by the ADs and FFMCs.

3. Whether a licence is mandatory for carrying out money changing business? +

Yes. Money changing business can be undertaken by entities authorised by the Reserve Bank under Section 10 of the Foreign Exchange Management Act, 1999. No person shall carry on money changing business without the possession of a valid licence issued by the Reserve Bank. Any person found undertaking money changing business without a valid licence is liable to be penalised under the Act ibid.

Q.3 In case DLG is invoked due to a default occurring in portfolio, can the subsequent recoveries made from the borrowers on the defaulted amount be added back to the DLG cover?

Ans: No. DLG amount once invoked by the RE cannot be reinstated, including through loan recovery. Please also refer to our answer to Q.1. Kindly see illustrations at the end.

3. Is there any limit on number of such transactions? How many such remittances can be sent in a year? +

Ans: There is no limit on remittances if the sender is maintaining account with any NEFT enabled bank-branch in India. Walk-in / Non-customers are allowed to remit 12 remittances in a year with ceiling of ₹50,000 per remittance.

3. Is it mandatory to obtain LEI in case of transactions to and from a non-resident’s account with an AD bank in India? +

Ans. Any debit from or credit to a non-resident’s account in India as a result of a transaction with a resident will attract the provisions of Foreign Exchange Management Act, 1999 (FEMA) and hence, the provisions contained in the circular shall apply.

3. Query Can an Individual have any number of 'Basic Savings Bank Deposit Account' in one bank? +

Response

No. An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank.

Q.3. What is the prescribed risk weight for calculating the regulatory capital corresponding to the assets covering public private partnership (PPP) and post commercial operations date (COD) infrastructure projects in existence over a year of commercial operations?

Ans: 50%

3. Why are the benefits to the GAH over the existing NDS-OM system? +

The GAH will have access to the same order book of NDS-OM as the Primary Members. GAH will be in a better position to control their orders (place/modify/cancel/hold/release) and will have access to real time live quotes in the market. Since notifications of orders executed as well as various queries are available online to the GAH, they are better placed to manage their positions. Web based interface that leverages on the gilt accounts already maintained with the custodian Banks/PDs therefore provides an operationally efficient system to retail participant.

3. Clarification regarding data that needs to be stored in India +

The data should include end-to-end transaction details and information pertaining to payment or settlement transaction that is gathered / transmitted / processed as part of a payment message / instruction. This may, interalia, include - Customer data (Name, Mobile Number, email, Aadhaar Number, PAN number, etc. as applicable); Payment sensitive data (customer and beneficiary account details); Payment Credentials (OTP, PIN, Passwords, etc.); and, Transaction data (originating & destination system information, transaction reference, timestamp, amount, etc.).

3. What is the benefit of tokenisation? +

Ans. A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing.

3. As per Para 6.4, whether the Entities are required to look back for one year (regarding any non-audit works for the Entities or any audit/non-audit works for the Group Entities) before appointment of an audit firm as SCAs/SAs for FY 2021-22 ? +

Before appointment of an audit firm as SCA/SA of the RBI Regulated Entity, there should be a time gap of minimum one year between this appointment and completion of the assignment of any non-audit works given to the same audit firm in that RBI Regulated Entity or completion of any audit/non-audit works in other RBI Regulated Entities in the Group. This stipulation shall be applicable prospectively, i.e. from FY 2022-23. Therefore, if an audit firm is involved in some non-audit work with the Entity and/or any audit/non-audit work in other RBI Regulated Entities in the Group and completes or relinquishes the said assignment prior to the date of appointment as SCA/SA of the Entity for FY 2021-22, the said audit firm would be eligible for appointment as SCA/SA of the Entity for FY 2021-22.

It is reiterated that the time gap between any non-audit works by the SCAs/SAs for the Entities or any audit/non-audit works for its Group Entities should be at least one year after completion of the audit assignment as SCA/SA.

3. What are the charges for availing this facility? +

Ans. Charges, if any, levied on cash withdrawals shall not exceed 1% of the transaction amount.

(iii) Is there any restriction on borrowers tapping the market mechanism for their funding needs before they reach the ASCL? +

Borrower are free to raise their funding needs from any source at any level.

3. আরটিজিএস ব্যবহার করার লাভ কি আছে ?

উত্তর. RTGS অন্যান্য নিধি স্থানান্তরের যে সকল অন্য ব্যবস্থা আছে তাদের চেয়ে বেশি সুবিধা দিয়ে থাকে :

এটি নিধি স্থানান্তরের একটি সুরক্ষিত ও নিরাপদ ব্যবস্থা
RTGS লেনদেনের / স্থানান্তরের কোন টাকা প্রেরণের আবদ্ধতা থাকে না
এই ব্যবস্থা সকল দিনের জন্য বহাল থাকে যখন বেশিরভাগ ব্যাংক বা শাখাগুলি খোলা থাকে, এমনকি শনিবার পর্যন্ত ।
হিতাধিকারীর খাতায় প্রকৃত সময়ে নিধি স্থানান্তর হয়ে যায় এই ব্যবস্থায়।
টাকার প্রেরক একটি কাগজের চেক বা দর্শনী হুণ্ডি ব্যবহার করতে হয় না ।
হিতাধিকারী কোন ব্যাংকের শাখায় যেতে হয় না কোন কাগজ বা নথি দাখিল করতে ।
হিতাধিকারী কোন কাগজ বা নথির ক্ষতি / চুরি ইত্যাদি থেকে শঙ্কিত হতে হয় না অথবা কোন প্রতারণার মাধ্যমে টাকা উঠিয়ে নেওয়ার থেকেও শঙ্কিত হতে হয় না ।
যিনি টাকা পাঠাবেন তিনি তার প্রেরিত অর্থ নিজে / নিজের ঘর / কর্মস্থান এসব জায়গা থাকে আন্তর্জালের ব্যাঙ্কিংএর মাধ্যমে পাঠাতে পারেন, যদি তার ব্যাংক এই ধরনের পরিষেবার অফার দিয়ে থাকে ।
এই লেনদেনের খরচ আরবিআই দ্বারা আবদ্ধ করা আছে
এই লেনদেনের আইনগত সমর্থন আছে

Q3: Clause 77 of the MD-TLE stipulates the valuation of investment by a transferor in SRs backed by stressed loans transferred by it. Whether this treatment will be applicable for the entire investments holding or only for SR investments that are made subsequent to the release of the MD-TLE on September 24, 2021?

Ans: It is clarified that treatment advised in the relevant clause (revised clause 77A) for investment by a transferor in SRs backed by stressed loans transferred by it are applicable to all SR investments outstanding as on the date of issuance of the MD. However, lenders other than specified at clause 3(a) & (e) shall be guided by the proviso added to the clause 77A.

3. What can be considered as activation of credit card?

Response: Customer-initiated process indicating intent to use a credit card such as PIN generation, modification of transaction control, Interactive Voice Response, recorded call to the customer care centre and SMS may be considered as activation. However, if the card is not activated by the cardholder for more than 30 days from the date of issuance, card-issuers shall seek One Time Password (OTP) based consent in line with para 6(a)(vi) of the MD.

3. What are the types of deposits/accounts covered in UDGAM portal?

ANS: All unclaimed deposits/accounts that are part of Depositor Education and Awareness (DEA) Fund of RBI can be searched in UDGAM portal. [Please refer to FAQs on DEA Fund scheme, 2014].

3. When are the above specified amounts credited to the DEA Fund?

ANS: The banks are required to transfer the credit balance in the accounts referred in Q No 2 above, to the DEA Fund on the last working day of the month subsequent to the month of completing 10 years of its continuous inoperative or unclaimed status.
For example, the deposits becoming due to be transferred to DEA Fund (i.e., unclaimed for 10 years), in the month of April shall be transferred to the DEA Fund on the last working day in the month of May.

3. Should the display on the website be limited to physically possessed assets, or should it encompass both symbolically and physically possessed assets?

Ans: The SARFAESI Act, 2002 does not classify possession as symbolic or physical, and these are conventions that have evolved. Accordingly, the REs shall display information on secured assets possessed under Section 13 (4) of the SARFAESI Act, 2002. This includes the display of both symbolically and physically possessed assets on the website of REs.

3. The guidelines on penal charges are applicable in case of non-compliance with the material terms and conditions of loan contract by the borrower. What could be termed as material terms and conditions?

The material terms and conditions may be defined, if not already done, as per the credit policy of the bank and they may vary from one category of loan to another, and also, from lender to lender based on their own assessment.

3. What are the different types of EEFC accounts? Can interest be paid on these accounts? +

An EEFC account can be held only in the form of a current account. No interest is payable on EEFC accounts.

3. How much exchange is available for studies outside India?
+

Release of foreign exchange for studies abroad up to the estimate given by an institution abroad or US$30,000 per academic year, whichever is higher, does not require prior permission from the Reserve Bank.

Q.3 Can an individual invest in an overseas entity ? +

Resident individuals are permitted to make overseas portfolio investments without any limit in listed overseas companies that have at least 10% share in an Indian company listed in a recognized stock exchange in India as on 1st January of the year of investment.

3.Can the NRO account be used for making local payments ? +

Yes, the tourists can freely make local payments by debit to the NRO account.

3. Should banks have a separate system to monitor resident accounts maintained by foreign nationals in the absence of QA 22 account ? +

From exchange control point of view, no monitoring is required. However, the banks are free to put in place such administrative arrangements as considered necessary for a smooth conduct of accounts, especially in cases where it is likely that a request for repatriation of funds outside India will be made.

In case of non-eligible advertisers who have obtained prior approval of RBI to advertise on Foreign Satellite Channels, whether the ADs have the authority to remit the money, without further reference to RBI +

Authorised dealers can continue to effect remittances upto the amount approved by RBI and within the validity period, as indicated in the RBI approval, provided no changes have been made in the relevant guidelines and/or regulations, after issuance of the RBI approval.

3. My bank charges me a large sum of money for cheque collection. Is there any remedy? +

Local cheque collection charges are decided by the concerned bank from time to time and communicated to customer through their CCP as part of the Code of Bank’s Commitment to Customers.

Banks cannot charge more than the following for outstation cheques:

Up to and including Rs.5,000 – Rs.25 per instrument + service tax; Above Rs.5,000 and up to and including Rs.10,000 – not exceeding Rs.50 per instrument + service tax; Above Rs.10,000 and up to and including Rs.1,00,000 – not exceeding Rs.100 per instrument + service tax; Above Rs.1,00,000 – left to the banks to decide. No additional charges such as courier charges, out of pocket expenses, etc., should be levied.

It may be noted, no outstation cheque collection charges to be levied if the collecting bank and the paying bank are located within the jurisdiction of the same CTS grid even though they are located in different cities.

3. What are the Government Securities Regulations, 2007? +

Government Securities Regulations, 2007 (G S Regulations) have been framed by the RBI to carry out the purposes of the G S Act.

Q3. Who can sponsor IDF-MFs and IDF-NBFCs? +

Ans : IDF-MFs can be sponsored by banks and NBFCs. Only banks and Infrastructure Finance companies can sponsor IDF-NBFCs.

3. How can the ATS be accessed ? +

A link to ATS has been provided in the RBI website http://www.rbi.org.in.

Q 3. What are the entry point norms for NBFC-Factor ? +

Ans, Every company registered under Section 3 of the Companies Act 1956 seeking registration as NBFC-Factor shall have a minimum Net Owned Fund (NOF) of Rs. 5 crore. Existing companies seeking registration as NBFC-Factor but do not fulfil the NOF criterion of Rs. 5 crore may approach the Bank for time to comply with the requirement.

Q.3. Whether retail and wholesale trade can be classified under MSME ? +

The Ministry of Micro, Small and Medium Enterprises vide Office Memorandum (OM) No. 5/2(2)/2021-E/P & G/Policy dated July 2, 2021 has allowed Udyam registration for retail and wholesale trade. Detailed guidelines are available in our circular FIDD.MSME & NFS.BC.No.13/06.02.31/2021-22 dated July 07, 2021.

3. As per the framework, unallocated proceeds of green deposits can be invested in liquid instruments with maturity up to one year only. What are these "liquid instruments"? Is there a requirement that temporary allocation of proceeds is only for a period of one year? Will there be any penalty if the REs are not able to allocate the proceeds of green deposits?

The liquid instruments are Level 1 High Quality Liquid Assets as per the extant guidelines.
The REs can temporarily park proceeds of green deposits, pending allocation towards green activities/ projects, in liquid instruments with maximum maturity upto one year (This will have to be specified under the Financing Framework).
The framework does not envisage any penalty for non-allocation of proceeds towards green activities/ projects; however, it shall be subject to supervisory review.

3. As the ‘Principal’ (Face Value) would change in the secondary market trades , the methodology for accounting the change in the ‘Principal’ (Face Value) due to Inflation Indexation needs to be clearly spelt out. +

Ans: IIBs classified under AFS and HFT may be valued at clean price quoted in the market at the time of acquisition. At the time of subsequent mark to market, the clean price quoted in the market as available from trades/quotes or clean price provided by FIMMDA may be treated as market value. Once this market value has been determined, the standard accounting procedures as applicable to HFT/AFS may be applied.

3.Who is an authorized dealer? +

An authorized dealer is normally a bank specifically authorized by the Reserve Bank under Section 10(1) of FEMA,1999, to deal in foreign exchange or foreign securities.

3. What is the maximum deposit amount insured by the DICGC ? +

Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount 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.

Q.3. What is the funds availability schedule for the beneficiary? +

Ans The remitting bank transmits the funds transfer message to RBI so as to reach NCC, before the cut off time for the settlement, the receiving bank’s account is credited by RBI at the destination centre and beneficiary gets credit on the same day.

3. Whether capital protection will be provided? +

Yes, capital protection will be provided by paying higher of the adjusted principal and face value (FV) at redemption.
If adjusted principal goes below FV due to deflation, the FV would be paid at redemption and thus, capital will get protected.

3. Are there any risks in investing in SGBs? +

There may be a risk of capital loss if the market price of gold declines. However, the investor does not lose in terms of the units of gold which he has paid for.

3. কে একটি PPIজারিকর্তা হতে পারে? +

উত্তর. উত্তর: PPI জারিকর্তা একটি অস্তিত্ব যারা করে / অংশগ্রহণ করে একটি পরিশোধ ব্যবস্থায়, PPI কোন ব্যক্তিকে / সংস্থাকে জারি করার জন্য । যা টাকা সংগ্রহ হয় সেটি ব্যবহার করে ব্যবসায়ীদের পরিশোধ করার জন্য ঐ অস্তিত্ব দ্বারা, যারা ঐ প্রস্তাবটির গ্রহণকারী এবং নিধি স্থানান্তর তরান্বিত / টাকা পাঠানোর পরিষেবা দেয় ।

3. একজন গ্রাহক হিসেবে সুবিধা পাবার ক্ষেত্রে ব্যাংক এটিএম বা ডব্লিউএলএ এর মধ্যে কি কোনো তফাত আছে?

উত্তর. একজন গ্রাহকের জন্য, একটি ডব্লিউএলএ ব্যবহার করা শুধুমাত্র একটি অন্য যেকোন ব্যাংকের এটিএম ব্যবহার করার মতই (ব্যাংক যারা কার্ড জারি করা ব্যাংক নয়) শুধুমাত্র নাগাদ টাকা জমা দেওয়া এবং কয়েকটি মূল্য জড়িত পরিষেবার সঙ্গে থাকা সুবিধাগুলির ক্ষেত্রে ডব্লিউএলএতে অনুমোদিত নয়।

3. কোনো ব্যক্তির কি একটি ব্যাংকে যত খুশি সংখ্যক ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ থাকতে পারেন? +

না। একজন ব্যক্তির একটি ব্যাংকে মাত্র একটিই ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ থাকতে পারে।

3. Is LEI required for Central Government or State Governments or Departments and Ministries thereunder ? +

Ans. It is not necessary for Governments or their Departments / Ministries to obtain LEI or mention LEI number for payment transactions in NEFT and RTGS. However, Corporations / Undertakings, including those fully owned by the Government, shall need to obtain LEI. All single payment transactions of ₹50 crore and above of Government Undertakings and Corporations, through NEFT / RTGS, shall include remitter and beneficiary LEI information.

3. Para 2.4 prescribes that the CCO shall have an overall experience of at least 15 years in the banking or financial services out of which minimum 5 years shall be in the Audit / Finance / Compliance / Legal / Risk Management functions. Whether any other category of experience would also be relevant for considering the minimum 5 years-experience? +

The principle behind this requirement is that the identified CCO is a well experienced official so that she/he discharges the mandated functions independently and effectively. Accordingly, in line with the above, Risk Management functions shall also include control functions within the business lines. Therefore, if a regional/zonal/business head had the requisite responsibility/experience on the control functions of the business lines for 5 years or more, she/he shall be eligible for the post of CCO under this condition.

3. Whether A2 reporting has to be undertaken by bank remitting the funds? +

Yes, any underlying transaction by a domestic Indian party, which requires A2 reporting for remittance overseas will require the same in case of a domestic remittance for credit to an SNRR Account.

3. Who can participate as a seller in TReDS ? +

Ans. Only MSMEs can participate as sellers in TReDS.

Q3. Where are the instructions, relating to the ACU, available? +

Ans. The detailed procedural instructions issued by RBI are contained in the A.P.(DIR Series) Circular No. 22 dated March 17, 2020 and in Master Direction No.16/2015-16 dated January 1, 2016 on Export of Goods and Services, as amended from time to time.

3. Whether, the originating NBFCs/HFCs can offer credit enhancement for the pooled assets made available under the scheme ? +

Yes, the originating NBFCs/HFCs can offer credit enhancement. However, for such credit enhancement, they need to maintain capital as per the capital requirements prescribed for NBFCs/HFCs by the Bank.

Q 3: Whether RBI approval is required for opening such Special Rupee Vostro Accounts?

Answer: Yes, for opening of Special Rupee Vostro Account, prior approval of RBI would be required. The bank willing to open Special Rupee Vostro Account for bank of the partner country should have a good level of business resilience and financial health. Second, they need to have experience in facilitating trade/investment transactions and capability to provide other financial services. Third, AD banks should have good correspondent relationships with banks in partner countries.

3. Can education loans be availed from banks without collateral?

RBI issued circular RPCD.SME&NFS.BC.No.69/06.12.05/2009-10 dated April 12, 2010, on Collateral Free Loans - Educational Loan Scheme, making it mandatory that banks must not obtain collateral security in the case of education loans upto ₹4 lakh.

Q 3. Whether loans for consumption (i.e., for buying gadgets, meeting expenses on ceremonies, etc.) without collateral would be treated as microfinance loans? +

Ans. All collateral-free loans to individual/s belonging to low-income households, i.e., households having annual income up to ₹3,00,000 are treated as microfinance loans.

3. Which are the non-bank entities enjoying access to CPS presently? +

Ans. Non-bank entities with access to CPS are standalone primary dealers, clearing corporations of stock exchanges, central counterparty (CCIL), retail payment system organisation (NPCI), select financial institutions (NABARD, EXIM Bank) and DICGC.

Q3. Can a resident person undertake forex transactions on internet / electronic trading portals? +

Answer: Permitted forex transactions executed electronically should be undertaken only on electronic trading platforms (ETPs) authorised for the purpose by the Reserve Bank of India (RBI) or on recognized stock exchanges (National Stock Exchange of India Ltd. (NSE), BSE Ltd. (BSE) and Metropolitan Stock Exchange of India Ltd. (MSE)) as per the terms and conditions specified by RBI from time to time. The list of authorised ETPs is available here. As per FEMA, resident persons are not permitted to undertake forex transactions on unauthorised ETPs.

Resident persons undertaking forex transactions on unauthorised ETPs shall render themselves liable for penal action under FEMA.

3. What is the interest rate on these securities? +

There will be two parts in the interest rate. One, fixed rate of 1.5% per annum and second, inflation rate.
For example, if inflation rate during the six months is 5%, then interest rate for this six months would be 5.75% (i.e. fixed rate -0.75% and inflation rate -5%).

Sr.No. 3 How is leverage defined in case of NBFC-P2P lending platform ? +

Ans: Leverage ratio refers to outside liabilities on the balance sheet of an NBFC-P2P Platform that it can raise divided by its owned funds. Customers’ funds lent/borrowed by using the platform is not reckoned as outside liability of the platform.

3. In real estate sector and other sectors where a company typically may have multiple projects financed through multiple instruments, can the ICA, escrow account and the financial parameters including the prescribed thresholds be made applicable at the project level rather than the legal entity to which the lending institutions may have exposure? +

The requirement of ICA in respect of the entity to which lending institutions have exposure is a basic feature of Prudential Framework for Resolution of Stressed Assets dated June 7, 2019, and consequently that of the Resolution Framework. There is sufficient flexibility to the lending institutions to formulate ICAs in respect of a legal entity to which they have exposure that address the specific requirements of each borrowers on a case to case basis, including designing different resolution approaches for different projects under the same borrower within an ICA. Similarly, apart from the escrow account required to be set up at the legal entity level as required by the Resolution Framework, there is no prohibition in setting up additional separate escrow accounts at each project level, if the lenders desire so. Only in respect of borrowers belonging to real estate sector, and have both residential and commercial real estate business, the prescribed thresholds for the financial parameters may be applied at the project level.

3. Should banks have a separate system to monitor resident accounts maintained by foreign nationals in the absence of QA 22 account? +

3. It is now clear that USD cheques are payable in USA and are required to be sent there for realisation. But are there different modes of collecting such cheques? +

Yes. There are various ways of collecting (realising) USD denominated cheques. The collection process followed by banks (presenting banks) varies depending on the institutional arrangements put in place by them. There are basically three types of arrangements adopted by banks–

i. Cash Letter Arrangement (CLA): Cheques are sent by the presenting banks in India to their correspondent banks (CBs) in USA for domestic clearing. Funds are collected (realised) by the CBs and credited to the account of the presenting bank maintained in US. Such accounts are known as NOSTRO accounts. For cheques sent under CLA the CB gives provisional credit to the bank on a pre-determined date (which varies from 7 to 9 days after tendering of cheque to the CB). However, the provisional credit will be subjected to a cooling period. After the cooling period, the customer’s account with the presenting bank in India is credited. In case of secured collection facility, the CB provides a guaranteed credit but at an additional cost.

(Cooling period is the time up to which banks wait after receiving provisional credit for the amount of cheque in their Nostro account for possible return of the cheque under provisions of the laws of USA by the drawee bank, before giving credit to the customers. More details are available under Question 9.)

(Secured Collection is a facility extended by the CBs. Under this facility, the CBs provide guaranteed final credit without recourse within a confirmed time period unlike normal collection service. Hence the collection time period is better under this facility. CBs offering this facility normally fix a cap for the amount of individual cheques collected under the arrangement. The CBs absorb any subsequent recall of payment by the drawee bank as per US laws. The bank offering such service charge an additional amount for giving credit without recourse.)

ii. Direct Collection Arrangement (DCA) : Cheques are sent by the banks in India directly to the drawee banks in USA for collection. Usually collection services ensure receipts of clear funds i.e., risk of return is almost eliminated. Therefore, high value cheques are generally sent under collection though the time taken may be more.

iii. Final Credit Services (FCS) : These services are offered by some CBs. The CB offering the service guarantees confirmed credit against the instrument. Under this arrangement banks receive final credit in their Nostro accounts without any recourse. This service normally does not have any cooling period as the cooling period is factored by the CBs before releasing the clear funds.

iv. Check-21 Facility : The System has been facilitated under Check-21 Legislation. It works more or less like CTS. When using check 21 facility, dealings are cleared utilizing the exchange of check images from bank to bank. It saves time in transit.

Q.3. Are LO/BO/PO required to register/report with Police authorities? +

Ans. Only applicants from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong, Kong, Macau and Pakistan shall have to register with the State Police authorities. Copy of approval letter for persons from these countries shall be marked by the AD Category I bank to the Ministry of Home Affairs, Internal Security Division – I, Government of India, New Delhi for necessary action and record. All other countries are exempted from registering with the State Police authorities.

3. What are the Regulations made under the PSS Act, 2007 and when did they come into force? +

Ans. Under the PSS Act, 2007, two Regulations have been made by the Reserve Bank of India, namely, the Board for Regulation and Supervision of Payment and Settlement Systems Regulations, 2008 and the Payment and Settlement Systems Regulations, 2008. Both these Regulations came into force along with the PSS Act, 2007 on 12th August 2008.

3. What are the usages of debit cards? +

Ans: The debit cards can be used to withdraw cash from an ATM, purchase of goods and services at points of sale (PoS) terminals or e-commerce (online purchase). They can be used domestically, or internationally.

3. Can the maturing FCNR (B) deposits be renewed and construed as fresh deposits for the purpose of swap ? +

Yes. However, only such deposits which are renewed on maturity for a minimum tenor of three years and having a lock in period of one year would qualify as eligible deposits for undertaking swap with RBI.

3. In what form will the deposits under this scheme be held? +

The Deposits shall be held at the credit of the declarant in Bond Ledger Accounts (BLA) maintained with Reserve Bank of India.

3. Which are the NBFCs covered under the Scheme ? +

NBFCs, as defined in Section 45-I (f) of the Reserve Bank of India Act, 1934 and registered with the RBI under Section 45-IA of the Reserve Bank of India Act, 1934, which (a) are authorised to accept deposits; or (b) have customer interface, with assets size of one billion rupees or above, as on the date of the audited balance sheet of the previous financial year, or of any such asset size as the RBI may prescribe, are covered under the Scheme. The Scheme initially covers NBFCs authorized to accept deposits, and would be gradually extended to cover other identified NBFCs.

3. What is the Specified Bank Notes (Cessation of Liabilities) Act 2017 ? +

On February 27, 2017 Government of India notified the Specified Banknotes (Cessation of liabilities) Act 2017. The Act repealed the Specified Banknotes (Cessation of liabilities) Ordinance 2016 providing for cessation of liabilities for the Specified Banknotes (SBNs) and for matters connected therewith and incidental thereto, with effect from December 31, 2016. The SBNs cease to be the liabilities of the Reserve Bank under Section 34 of the RBI Act and cease to have the guarantee of the Central Government.

A grace period has been provided during which the Specified Bank Notes can be deposited at five RBI Offices (Mumbai, New Delhi, Chennai, Kolkata, and Nagpur by Indian citizens who make a declaration that they were outside India between November 9 and December 30, 2016, subject to conditions or any class of persons for reasons that may be specified by notification by the Central Government. The Reserve Bank, if satisfied after making the necessary verifications, that the reasons for failure to deposit the notes till December 30, 2016 are genuine, will credit the value of notes in the KYC (Know Your Customer) compliant bank account of the tenderer.

The grace period for resident Indians expired on March 31, 2017. For non- resident Indians (Indian passport holders), the grace period is till June 30, 2017.

For details on the exchange counter timings at the five aforesaid Regional Offices of RBI, please click here.

Any person aggrieved by the refusal of the Reserve Bank to credit the value of notes as mentioned above may make a representation to the Central Board of the Reserve Bank within 14 days of the communication of such refusal to him/her.

In terms of Section 6 of the Act, whoever knowingly or wilfully makes any false declaration shall be punishable with a fine which may extend to 50,000 INR or five times the amount of the face value of the SBNs tendered whichever is higher.

In terms of Section 5 of the Act, with effect from December 31, 2016 no person shall knowingly or voluntarily hold, transfer or receive any specified banknotes. After the expiry of grace period, holding of not more than 10 notes in total, irrespective of denomination or not more than 25 notes for the purpose of study/ research/ numismatics is permitted. Also, nothing contained in this section shall prohibit the holding of specified banknotes by any person on the direction of a court in relation to any case pending in the court. For deposit of confiscated SBNs, GoI has notified Specified Ban Notes (Deposit of Confiscated Notes) Rules 2017 on May 12, 2017.

In terms of Section 7, contravention of Section 5 shall be punishable with fine which may extend upto 10,000 INR or five times the face value of the SBNs involved in the contravention, whichever is higher.

In case the contravention/default in terms of Sections 6 and 7 is by a company, every person who was in charge of and responsible to the company at the time of contravention/ default shall deemed to be guilty and will be liable to be proceeded against and punished. If the offence is proved to be attributable to the conduct by any director/manager/secretary/officer/employee of the company, such person shall also be deemed to be guilty of the offence and will be liable to be proceeded against and punished accordingly.

3. What will be the denominator used for arriving at the operating cost for computing MCLR? +

Banks may calculate all operating costs as a percentage of marginal cost of funds for computing MCLR.

Q.3. Where a promoter is an individual and his relatives and entities in which they hold more than 50% shares, is it necessary that the promoter, his relatives, entities in which they hold more than 50% shares must hold equity shares in NOFHC [refer 2(C)(ii)(a)]. In other words, is holding shares by individual promoters / their relatives / their entities a pre-requisite? +

3. Does the legal tender status of ₹2000 banknotes remain? +

Yes. The ₹2000 banknote will continue to maintain its legal tender status.

3. Which are the banks in India presently enabled for sending remittances through the UPI-PayNow linkage? +

Banks in India presently enabled for sending remittances through the UPI-PayNow linkage are:

ICICI Bank
Indian Bank
Indian Overseas Bank
State Bank of India

3. Which are the Entities covered under the Scheme ? +

The Scheme has been made applicable to System Participants as defined in Clause 3 (11) of the Scheme.

3. WHY IS ADF THOUGHT OF NOW? +

With CBS in banks, it is felt that time has come to utilize CBS system capabilities to meet requirements like MIS, ADF, etc, in addition to regular transactional activities.

Q 3. What are the purposes under FEM (CAT) Amendment Rules, 2015, under which a resident individual can avail of foreign exchange facility? +

Ans. Individuals can avail of foreign exchange facility for the following purposes within the LRS limit of USD 2,50,000 on financial year basis:

Private visits to any country (except Nepal and Bhutan)
Gift or donation
Going abroad for employment
Emigration
Maintenance of close relatives abroad
Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up
Expenses in connection with medical treatment abroad
Studies abroad
Any other current account transaction which is not covered under the definition of current account in FEMA 1999.

The AD bank may undertake the remittance transaction without RBI’s permission for all residual current account transactions which are not prohibited/ restricted transactions under Schedule I, II or III of FEM (CAT) Rules, 2000, as amended or are defined in FEMA 1999. It is for the AD to satisfy themselves about the genuineness of the transaction, as hitherto.

Q 3: Whether all LSPs need to appoint Grievance Redressal Officers? +

Ans: Only those LSPs which have an interface with the borrowers would need to appoint a nodal Grievance Redressal Officer. However, it may be reiterated that the RE shall remain responsible for ensuring resolution of complaints arising out of actions of all LSPs engaged by them.

Q.3 In terms of paragraph 4 of the circular, REs have been advised to intimate the different options available to address the increase in EMI in a rising interest rate scenario. What are the different options available to borrowers during a rising interest rate cycle in respect of equated installment based personal loans?

Ans: Whenever there is a reset of interest rates for an entire class of borrowers in a particular loan category, say home loan, due to increase in the reference benchmark; the RE shall provide the following options to the borrowers:

Either enhancement in EMI or elongation of number of EMIs, keeping the EMI unchanged or a combination of both options;
Switch to fixed interest rate for the remaining portion of the loan; and
To prepay, either in part or in full, at any point during the residual tenor of the loan.

3. What are the major foreign currency accounts that can be opened in India by a resident individual? +

Some of the foreign currency accounts that can be opened by resident individuals with an Authorised Dealer bank in India, along with their features are given below:

Particulars	Exchange Earners Foreign Currency (EEFC) Account	Resident Foreign Currency (Domestic) [RFC(D)] Account	Resident Foreign Currency (RFC) Account
Who can open the account	Exchange Earners	Individuals	Individuals
Joint account	Jointly with eligible persons; or With resident relative(s) on former or survivor’ basis. Relative as defined under Companies Act, 2013 (viz. members of HUF, spouse, parents, step-parents, son, step-son, daughter-in-law, daughter, son-in-law, brother/sister, step-brother/ step-sister) Relative joint account holder cannot operate the account during the life time of the account holder	Jointly with any person eligible to open the	Same as EEFC
Type of Account	Current only	Current only	Current/ savings/ term deposits
Interest	Non-interest earning	Non-interest earning	De-regulated (As decided by the AD bank)
Permitted Credits	1) 100% of foreign exchange received on account of export transactions. 2) advance remittance received by an exporter towards export of goods or services 3) Repayment of loans given to foreign importers 4) Disinvestment proceeds on conversion of ADR/ GDR 5) professional earnings like director’s/ consultancy/ lecture fees, honorarium and similar other earnings received by a professional by rendering services in his individual capacity 6) Interest earned on the funds held in the account 7) Re-credit of unutilised foreign currency earlier withdrawn from the account 8) Payments received in foreign exchange by an Indian startup arising out of sales/ export made by the startup or its overseas subsidiaries	1) Foreign exchange received as payment/ service/ gift/ honorarium while on visit abroad or from a non-resident who is on a visit to India 2) Unspent amount of foreign exchange acquired from AD for travel abroad 3) Gift from close relative 4) Earning through export of goods/ services, royalty 5) Disinvestment proceed on conversion of shares into ADR/ GDR 6) foreign exchange received as earnings of LIC claims/ maturity/ surrendered value settled in forex from an Indian insurance company	1) Foreign exchange received by him as superannuation/ other monetary benefits from overseas employer 2) Foreign exchange realised on conversion of the assets referred to in Sec 6(4) of FEMA 3) Gift/ inheritance received from a person referred to in Sec 6(4) of FEMA 4) Foreign exchange acquired before the July 8, 1947 or any income arising on it held outside India with RBI permission 6) Foreign exchange received as earnings of LIC claims/ maturity/ surrendered value settled in forex from an Indian insurance company 7) Balances in NRE/ FCNR (B) accounts on change in residential status
Permitted Debits	1) Any permissible current or capital account transaction 2) Cost of goods purchased 3) Customs duty 4) Trade related loans and advances	Can be used for any permissible current/ capital account transactions.	No restrictions on utilisation in/ outside India.

3. What is an e₹ Wallet?

Ans: e₹ wallet is a digital wallet that can be opened on one’s mobile phone/device. e₹ wallet stores the Digital Rupee, similar to the physical wallet/purse that stores the physical currency. e₹ wallets are being currently provided by banks and non-banks, which are part of the retail CBDC pilot.

Q3. What are the major accounts that can be opened in India by a non-resident ?

Particulars	Non-Resident (External) Rupee Account Scheme [NRE Account]		Foreign Currency (Non-Resident) Account (Banks) Scheme [FCNR (B) Account]	Non-Resident Ordinary Rupee Account Scheme [NRO Account]
(1)	(2)		(3)	(4)
Who can open an account	NRIs and PIOs Individual/entities of Pakistan and Bangladesh shall requires prior approval of the Reserve Bank of India			Any person resident outside India for putting through bonafide transactions in rupees. Individuals/ entities of Pakistan nationality/ origin and entities of Bangladesh origin require the prior approval of the Reserve Bank of India. A Citizen of Bangladesh/Pakistan belonging to minority communities in those countries i.e. Hindus, Sikhs, Buddhists, Jains, Parsis and Christians residing in India and who has been granted LTV or whose application for LTV is under consideration, can open only one NRO account with an AD bank subject to the conditions mentioned in Notification No. FEMA 5(R)/2016-RB dated April 01, 2016, as updated from time to time. Post Offices in India may maintain savings bank accounts in the names of persons resident outside India and allow operations on these accounts subject to the same terms and conditions as are applicable to NRO accounts maintained with an authorised dealer/ authorised bank.
Joint account	May be held jointly in the names of two or more NRIs/ PIOs. NRIs/ PIOs can hold jointly with a resident relative on ‘former or survivor’ basis (relative as defined in Companies Act, 2013). The resident relative can operate the account as a Power of Attorney holder during the life time of the NRI/ PIO account holder.			May be held jointly in the names of two or more NRIs/ PIOs. May be held jointly with residents on ‘former or survivor’ basis.
Currency	Indian Rupees		Any permitted currency i.e. a foreign currency which is freely convertible	Indian Rupees
Type of Account	Savings, Current, Recurring, Fixed Deposit		Term Deposit only	Savings, Current, Recurring, Fixed Deposit
Period for fixed deposits	From one to three years, However, banks are allowed to accept NRE deposits above three years from their Asset-Liability point of view		For terms not less than 1 year and not more than 5 years	As applicable to resident accounts.
Permissible Credits	Credits permitted to this account are inward remittance from outside India, interest accruing on the account, interest on investment, transfer from other NRE/ FCNR(B) accounts, maturity proceeds of investments (if such investments were made from this account or through inward remittance). Current income like rent, dividend, pension, interest etc. will be construed as a permissible credit to the NRE account. Care: Only those credits which have not lost repatriable character			Inward remittances from outside India, legitimate dues in India and transfers from other NRO accounts are permissible credits to NRO account. Rupee gift/ loan made by a resident to a NRI/ PIO relative within the limits prescribed under the Liberalised Remittance Scheme may be credited to the latter’s NRO account.
Permissible Debits	Permissible debits are local disbursements, remittance outside India, transfer to other NRE/ FCNR(B) accounts and investments in India.			The account can be debited for the purpose of local payments, transfers to other NRO accounts or remittance of current income abroad. Apart from these, balances in the NRO account cannot be repatriated abroad except by NRIs and PIOs up to USD 1 million, subject to conditions specified in Foreign Exchange Management (Remittance of Assets) Regulations, 2016. Funds can be transferred to NRE account within this USD 1 Million facility.
Repatriablity	Repatriable			Not repatriable except for all current income. Balances in an NRO account of NRIs/ PIOs are remittable up to USD 1 (one) million per financial year (April-March) along with their other eligible assets.
Taxabilty	Income earned in the accounts is exempt from income tax and balances exempt from wealth tax			Taxable
Loans in India	AD can sanction loans in India to the account holder/ third parties without any limit, subject to usual margin requirements. These loans cannot be repatriated outside India and can be used in India only for the purposes specified in the regulations. In case of loans sanctioned to a third party, there should be no direct or indirect foreign exchange consideration for the non-resident depositor agreeing to pledge his deposits to enable the resident individual/ firm/ company to obtain such facilities. In case of the loan sanctioned to the account holder, it can be repaid either by adjusting the deposits or through inward remittances from outside India through banking channels or out of balances held in the NRO account of the account holder. The facility for premature withdrawal of deposits will not be available where loans against such deposits are availed of. The term “loan” shall include all types of fund based/ non-fund based facilities.			Loans against the deposits can be granted in India to the account holder or third party subject to usual norms and margin requirement. The loan amount cannot be used for relending, carrying on agricultural/ plantation activities or investment in real estate. The term “loan” shall include all types of fund based/ non-fund based facilities.
Loans outside India	Authorised Dealers may allow their branches/ correspondents outside India to grant loans to or in favour of non-resident depositor or to third parties at the request of depositor for bona fide purpose against the security of funds held in the NRE/ FCNR (B) accounts in India, subject to usual margin requirements. The term “loan” shall include all types of fund based/ non-fund based facilities			Not permitted
Rate of Interest	As per guidelines issued by the Department of Regulation
Operations by Power of Attorney in favour of a resident	Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments or remittance to the account holder himself through normal banking channels.			Operations in the account in terms of Power of Attorney is restricted to withdrawals for permissible local payments in rupees, remittance of current income to the account holder outside India or remittance to the account holder himself through normal banking channels. While making remittances, the limits and conditions of repatriability will apply.
Change in residential status from Non-resident to resident	NRE accounts should be designated as resident accounts or the funds held in these accounts may be transferred to the RFC accounts, at the option of the account holder, immediately upon the return of the account holder to India for taking up employment or on change in the residential status.	On change in residential status, FCNR (B) deposits may be allowed to continue till maturity at the contracted rate of interest, if so desired by the account holder. Authorised dealers should convert the FCNR(B) deposits on maturity into resident rupee deposit accounts or RFC account (if the depositor is eligible to open RFC account), at the option of the account holder.		NRO accounts may be designated as resident accounts on the return of the account holder to India for any purpose indicating his intention to stay in India for an uncertain period. Likewise, when a resident Indian becomes a person resident outside India, his existing resident account should be designated as NRO account.

3. Query: What are the various deposits under the scheme, the duration of such deposits, applicable interest rates, periodicity of interest payments?

Response: The scheme envisages the following types of deposits –

Sr. No.	Type of Deposit	Duration	Minimum Lock-in Period	Applicable Interest Rate	Periodicity of Interest Payment
i.	Short Term Bank Deposit (STBD)	1-3 years	As determined by banks	As determined by banks	As determined by banks
ii.	Medium Term Government Deposit (MTGD)	5-7 years	3 years	2.25% p.a.	Simple Interest annually or cumulative interest at time of maturity compounded annually.
iii.	Long Term Government Deposit (LTGD)	12-15 years	5 years	2.50% p.a.	Simple Interest annually or cumulative interest at time of maturity compounded annually.

It may be noted that consequent to Government of India’s press release ID 2115009 dated March 25, 2025, mobilization of MTGD and LTGD, including renewal of existing deposits, has been discontinued with effect from March 26, 2025.

3. Can the pension paying bank recover the excess amount credited to the pensioner’s account?

(a) Agency banks are requested to seek guidance from respective Pension Sanctioning Authorities regarding the process to be followed for recovery of excess pension paid to the pensioners, if any.

(b) Where excess pension payment has arisen on account of mistakes committed by the bank, the amount paid in excess should be refunded to the Government in lump-sum immediately after detection of the same and without waiting for recovery of any amount from the pensioners.

Q 3. Whether banks can pay additional interest admissible to bank’s staff on the deposit placed in the name of minor child/ children of the deceased member of staff?

Ans. No. In terms of paragraph 9.1.6 of these Directions, children (including minor) are not eligible for additional interest admissible to deceased member of the bank’s staff.

3. Are all REs covered under RB-IOS, 2021? +

RB-IOS, 2021 covers all commercial banks, Non-Banking Financial Companies (NBFCs), Payment System Participants, most Primary (Urban) Cooperative Banks, and Credit Information Companies. The REs covered under the RB-IOS, 2021 are listed under Question 11.

Q.3 Whether REs are required to comply with judgement of the Hon’ble Supreme Court dated March 27, 2023 i.e. whether the compliance to Principles of Natural Justice is required to be adhered to in all cases of frauds or only in cases of advance related frauds?

Ans: The requirement of ensuring compliance to the Principles of Natural Justice is applicable to all Persons / Entities and its Promoters / Whole-time and Executive Directors classified as fraud by the REs. In other words, this requirement is applicable in all cases of fraud classification which may have civil consequences (i.e. penal measures, caution listing) as observed in the Judgement of the Hon’ble Supreme Court dated March 27, 2023 (Civil Appeal No. 7300 of 2022 in the matter of State Bank of India & Ors. Vs. Rajesh Agarwal & Ors.).

Q.4. What is the procedure for applying for compounding?

Ans. A contravener may submit a compounding application form, physically or through PRAVAAH Portal of the Reserve Bank along with the documents/formats provided as Annexure I, Annexure II and Annexure III of the Directions – Compounding of contraventions under FEMA, 1999.

4. What is the reference period of this ITES survey ? +

Ans.: TThe reference period of an ITES survey round is the immediately preceding financial year (April-March)

4. How does the MF company submit the MF survey schedule to the RBI ? +

Ans.:Once the survey is launched, MF companies will receive an email from RBI along with the soft copy of the survey schedule (Schedule-4) in excel format as attachment. The company should use this survey schedule to fill in the details. The filled-in survey schedule (Schedule-4) in excel format (.xls format) should be sent by email to mf@rbi.org.in. No other attachments should be forwarded along with the MF survey schedule.

4. What would be the amount offered for non-competitive bidding ? +

Non-competitive bids will be allowed upto 5 percent of the notified amount in the specified auctions of dated securities.

4. Whether banks can pay differential rates of interest on deposits aggregating Rs.15 lakhs and above ? +

Differential rates of interest can be paid onsingle depositof Rs.15 lakhs and above and not on the aggregate of individual deposits where such total exceeds Rs.15 lakhs.

4. Which are the banks covered under the Banking Ombudsman Scheme, 2006 ? +

All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.

.4. Who can initiate an ECS Credit transaction? +

ECS Credit payments can be initiated by any institution (called ECS Credit User) which needs to make bulk or repetitive payments to a number of beneficiaries. The institutional User has to first register with an ECS Centre. The User has to also obtain the consent of beneficiaries (i.e., the recipients of salary, pension, dividend, interest etc.) and get their bank account particulars prior to participation in the ECS Credit scheme. ECS Credit payments can be put through by the ECS User only through his / her bank (known as the Sponsor bank). ECS Credits are afforded to the beneficiary account holders (known as destination account holders) through the beneficiary account holders’ bank (known as the destination bank). The beneficiary account holders are required to give mandates to the user institutions to enable them to afford credit to their bank accounts through the ECS Credit mechanism.

4. Are non-CTS cheques invalid? +

Banks have been advised to issue only CTS 2010 standard compliant cheques from September 30, 2012. Earlier, there were seprate clearing sessions for non-CTS cheques. However, they were discontinued with effect from December 31, 2018. As of now, non-CTS cheques cannot be presented in CTS. Bank have been advised to withdraw the non-CTS cheques from the customers. However, non-CTS cheques remain to be valid as a negotiable instrument.

Q 4. How much Indian currency can be brought in while coming into India? +

Ans. A resident of India, who has gone out of India on a temporary visit may bring into India at the time of his return from any place outside India (other than Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.25,000. A person may bring into India from Nepal or Bhutan, currency notes of Government of India and Reserve Bank of India notes, in denomination not exceeding Rs.100. Any person resident outside India, not being a citizen of Pakistan and Bangladesh and also not a traveller coming from and going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.25,000 while entering only through an airport.

4. Who can apply for an FFMC licence? +

The applicant has to be a company registered under the Companies Act, 1956/ Companies Act 2013/ Registration of Companies (Sikkim) Act, 1961, having a minimum Net Owned Funds (NOF) of INR 25 lakh to apply for a single-branch FFMC licence and INR 50 lakh to apply for a multiple-branch FFMC licence.

4. What is Indian Financial System Code ? +

Ans: Indian Financial System Code (IFSC) is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. It is a 11-digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

Q.4 Is the name of the RE also required to be published along with the disclosure in terms of Para 11 of the Guidelines?

Ans: No. Not required.

4. Does the beneficiary need to maintain an account with a bank branch in Nepal? +

Ans: No, this is not mandatory. It would, however, be ideal if the beneficiary maintains an account with a bank branch in Nepal to which the credit could be afforded. In Nepal, the INRF Scheme is handled by Nepal SBI Ltd. (NSBL). If the beneficiary does not have a bank account with NSBL or resides in a locality / area in Nepal not serviced by a NSBL bank branch, an arrangement has been entered into by NSBL with a money transfer company in Nepal (called Prabhu Money Transfer) who would make arrangements for delivery of cash (in Nepalese Rupees) to the beneficiary.

4. Does the responsibility to obtain LEI lie with an AD bank acting in the capacity of a correspondent bank? +

Ans. The correspondent bank shall be responsible for the LEI of the non-resident counterpart. However, in this regard it may be guided by the instructions contained in paragraph 2 of the circular.

4. Clarify the definition of short term borrowings. +

A short term borrowing means borrowing of tenor up to but less than one year.

4. When is the receipted challan for payment made into government account made available? +

The receipted challans in case of cash tender are generally handed over to the remitter immediately across the counter. In case of payments made by cheque/DD, the receipted challan is issued only on realization of the instruments based on the clearing cycle of the local Clearing House. In all such cases, a paper token is issued to the depositor indicating the date on which the receipted challan will be ready for delivery. The receipted challan will have to be collected within a specified number of days from the date of delivery, as indicated on the paper token, by surrendering the paper token.

4. Whether purpose code is to be used and who is responsible for FETERS reporting? +

The regulatory reporting under FETERS (R Return) will be undertaken by the Bank maintaining SNRR A/c.
Any credit / debit to / from an SNRR account from / to an offshore account of the non-resident entity holding the SNRR account will be reported under AD bank transfer.
Any credit / debit to / from an SNRR account from / to a domestic (Indian) party will be reported basis underlying transaction (import, export, Trade Credit, services, ECB, etc).

Please note that bank holding SNRR account shall follow the reporting procedure as applicable to other INR Vostro accounts held by it. Please also refer to A.P. (DIR Series) Circular No. 25 March 20, 2019 on Compilation of R-Returns: Reporting under FETERS.

4. The Resolution Framework states that the accounts that do not fulfill the eligibility conditions may continue to be considered under the prudential framework applicable to the specific category of institutions. Does it mean that alternative resolution frameworks available to a specific category of financial institutions such as Paragraph 2(1)(zc)(ii) of the Master Circular – The Housing Finance companies (NHB) Directions, 2010 for housing finance companies, and Paragraph 2.2.7.21 of the Master Circular- Income Recognition, Asset Classification, Provisioning and Other Related Matters – UCBs dated July 1, 2015 for Urban Co-operative Banks would continue to be applicable for non-Covid impacted borrowers?

For the borrowers eligible for resolution under the circular dated August 6, 2020 on Resolution Framework for COVID-19-related Stress, the circular dated August 6, 2020 will be applicable if a resolution process under the circular is invoked. For all other borrowers, the extant instructions as otherwise applicable shall still be in force. However, if any entity is otherwise eligible to be resolved under the Resolution Framework, only Resolution Framework can be used for resolving the stress arising out of the pandemic.

4. Can the existing SCAs/SAs continue if they do not fulfill the eligibility criteria but are yet to complete their original tenure of appointment? Are the Entities required to appoint SCAs/SAs (including as Joint Auditors) immediately or they can be appointed in the ensuing Annual General Meeting (AGM)? +

The existing SCAs/SAs of the Entity can continue (including as Joint Auditors) only if they fulfill the eligibility criteria and have not completed the stipulated tenure of three years as SCAs/SAs of the Entity. Till the appointment of SCAs/SAs for FY 2021-22, as per the requirements of the Circular and applicable statutory provisions, the SCAs/SAs for FY 2020-21 can continue for the Limited Review for Q1, Q2, etc.

4. Which are the authorized agencies where the application and amount of deposit will be accepted? +

Application and amount for the deposit (in the form of Bond Ledger Account) shall be received by any banking company, other than Co-operative Banks, to which the Banking Regulation Act, 1949 (10 of 1949) applies (Authorised Banks).

4. RTGS এর প্রক্রিয়া ন্যাশনাল ইলেকট্রনিক ফান্ড ট্রান্সফার (NEFT) থেকে কিভাবে আলাদা হয় ?

উত্তর. NEFT একটি বৈদ্যুতিন নিধি স্থানান্তর ব্যবস্থা যার মাধ্যমে সেসব লেনদেন যা একটি নির্দিষ্ট সময়ের জন্য পাওয়া গেছে তাদের একটি গোছায় প্রক্রিয়াজাত করা হয়। এর অন্যদিকে, RTGS এ, লেনদেনগুলিকে একটির পর একটি হিসেবে পাঠান হয় অর্থাৎ লেনদেনের পর লেনদেনের হিসেবে, RTGS-এর ব্যবসা সময়ে ।

4. In reference to para 8(b) of the MD, can a credit card be considered as ‘used’ even if no financial transactions have been undertaken?

Response: In addition to financial transactions, any process initiated by the cardholder such as generation of statement, change of PIN, change in transaction controls, etc., shall be considered for treating a card as ‘used’. However, any calls made to the customer care centre, for reasons other than those cited above, shall not be considered towards usage of a card.

4. What inputs are required to search unclaimed deposits of (a) individuals and (b) non-individuals on UDGAM portal?

ANS: A user is required to register on the portal by providing his/her name and mobile number. (The user manual available on the portal (https://udgam.rbi.org.in/unclaimed-deposits/#/login) elucidates the detailed process of registration and use of the portal).
(a) Individuals: For searching unclaimed deposits in individual category, a user has to provide inputs such as name of the account holder, name of the bank (one or more banks can be selected) and any one or more of the five inputs viz., Permanent Account Number (PAN), Driving License Number, Voter ID Number, Passport Number and Date of Birth of the account holder.
(b) Non-Individuals: For searching unclaimed deposits in non-individual category, a user has to provide inputs such as name of the entity, name of the bank (one or more banks can be selected) and any one or more of the four inputs viz., Name of the authorised signatory, PAN, Corporate Identification Number (CIN) and Date of Incorporation.
Even if none of the above-mentioned information is available, the user can type the address of the account holder or the entity (as the case may be), in place of these inputs mentioned above for undertaking the search.

4. Is interest accrued on such amounts as described in Q No: 2 also transferred to the DEA Fund?

ANS: Yes. The banks are required to transfer the entire amount, including the accrued interest, as on the date of transfer to the DEA Fund.

4. Should details of movable assets be uploaded on website along with immovable assets?

Ans: Yes, both movable and immovable secured assets possessed under Section 13 (4) of the SARFAESI Act, 2002, on which the information is already published in the newspapers in terms of Rule 3 (1) or Rule 6 (2) of the Security (Enforcement) Rules of 2002 in case of movable property, and Rule 8 (2) ibid in case of immovable property, shall be displayed on the website of the RE.

4. Whether these guidelines would also be applicable in case of default in repayment by the borrower? If yes, whether the penal charges in such cases shall be based on the default amount or outstanding amount?

Default in repayment by the borrower is also a type of non-compliance of material terms and conditions of loan repayment contract by the borrower and penalty, if charged, for such default may only be levied in the form of penal charges and not penal interest. Such penal charges shall be reasonable and levied by the lenders only on the amount under default in a non-discriminatory manner as per their Board approved policy. Further, it must be ensured that there is no capitalization of the penal charges i.e., no further interest computed on such charges.

4. How much foreign exchange can one buy when going for tourism to a country outside India?
+

In connection with private visits abroad, viz., for tourism purposes, etc., foreign exchange up to US$10,000, in any one calendar year may be obtained from an authorised dealer. The ceiling of US$10,000 is applicable in aggregate and foreign exchange may be obtained for one or more than one visits provided the aggregate foreign exchange availed of in one calendar year does not exceed the prescribed ceiling of US$10,000 {The facility was earlier called B.T.Q or F.T.S.}. This US$10,000 (BTQ) can be availed of by a person alongwith foreign exchange for travel abroad for any purpose, including for employment or immigration or studies. However, no foreign exchange is available for visit to Nepal and/or Bhutan for any purpose.

Q.4 Where can one get the guidelines pertaining to overseas investment ? +

These guidelines have been notified by Reserve Bank of India in its Notification FEMA No.19 dated 3^rd May 2000 as amended from time to time which can be accessed at the Reserve Bank’s website fema.rbi.org.in.

4. Can foreign tourists repatriate the balance held in their NRO account at the time of departure from India ? +

Banks have been allowed to convert the balance in the account at the time of departure of the tourists into foreign currency provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon.

Has any documentation been prescribed by the RBI to ADs for remittance? +

Authorised dealers are free to decide the documentation, as also any other information (including declaration), required by them, to satisfy themselves, before effecting the remittance. They should, however, call for the following documents viz. A certificate from a Chartered Accountant certifying that the applicant exporter satisfies the criteria of having export earning of at least Rs.10 lakhs, during each of the preceding two years, The C.A. certificate as at (a) above is not necessary, in case the export earnings prescribed (i.e. minimum Rs.10 lakhs in each of the previous two years), have been realised through the same authorised dealer, through whom the remittance is sought to be made. A Chartered Accountant’s certificate should also be obtained, certifying that the remittance represents advertisement charges incurred by the advertiser towards telecast in foreign countries and not in India alone. The certificate will have to be obtained for each remittance. Authorised dealers should, before allowing the remittances, obtain from the remitter an undertaking and a C.A. certificate in the format as prescribed in the CBDT circular No.10/2002 dated October 9, 2002. [c.f. A.P. (DIR Series) Circular No.56 dated November 26, 2002).

4. Can ADs (banks) remit proceeds of such accounts on closure ? +

Yes. But ADs (banks) should ensure that the funds to be repatriated outside India were either received from abroad or are of repatriable in nature or are permissible in terms of RBI notification No.FEMA.13/2000 dated 3rd May 2000.

4. WHETHER ANY SPECIFIC APPROACH HAS BEEN RECOMMENDED? +

No specific approach has been recommended for achieving ADF due to the reason that various banks are at different levels of IT and Process maturity. However, the Approach Paper on ADF clearly articulates the common end state for achieving the objectives of ADF.

4. What are the objectives of these two Regulations? +

Ans. The Board for Regulation and Supervision of Payment and Settlement Systems Regulation, 2008 deals with the constitution of the Board for Regulation and Supervision of Payment and Settlement Systems (BPSS), a Committee of the Central Board of Directors of the Reserve Bank of India. It also deals with the composition of the BPSS, its powers and functions, exercising of powers on behalf of BPSS, meetings of the BPSS and quorum, the constitution of Sub-Committees/Advisory Committees by BPSS, etc. The BPSS exercises the powers on behalf of the Reserve Bank, for regulation and supervision of the payment and settlement systems under the PSS Act, 2007.

The Payment and Settlement Systems Regulations, 2008 covers matters like form of application for authorization for commencing/ carrying on a payment system and grant of authorization, payment instructions and determination of standards of payment systems, furnishing of returns/documents/other information, furnishing of accounts and balance sheets by system provider etc.

4. What is a Nostro Account? +

A Nostro account is a bank account established in a foreign country usually in the currency of that country for the purpose of carrying out transactions there. For example most commercial banks maintain US dollar accounts with their correspondent banks in USA in order to facilitate settlement of interbank and customer transactions in US dollar.

4. When did the G S Act and the G S Regulations come into force and to which Government securities do they apply? +

The G S Act and the G S Regulations came into force with effect from December 1, 2007. The G S Act applies to Government securities created and issued by the Central Government or a State Government, whether before or after the commencement of this Act. The G S Act will apply to all Government securities created and issued even prior to December 1, 2007.

4. My bank refuses to accept outstation cheques for collection. Is there any remedy? +

No bank can refuse to accept outstation cheques deposited for collection or refuse to offer its products to customers.

4. In what form can a foreign currency account in India be opened? +

Answer: Unless otherwise specifically stated in the features of the account, a foreign currency account maintained by a person resident in India with an authorized dealer in India can be opened, held and maintained in the form of current or savings or term deposit account in cases where the account holder is an individual, and in the form of current account or term deposit account in all other cases. The account can be held singly or jointly in the name of person eligible to open, hold and maintain such account.

4. Which are the entities permitted to access the NDS-OM Web Module? +

The potential users of the NDS-OM Web Module are GAHs permitted by RBI to access the NDS OM Web Based Module. So far, GAHs have only the indirect access through CSGL route for placing their order/bid feed into NDS-OM. Now in addition to the indirect access, permitted GAHs can directly deal on the NDS-OM Web system, subject to controls set by PM. The access to the GAH to the NDS-OM Web Based Module is granted on a request made on his behalf by its Primary Member.

Q 4. What would happen with the existing companies registered with RBI as NBFCs and conducting factoring business that constitute less than 75 percent of total assets / income ? +

Ans. Such a company shall have to submit to RBI, a letter of its intention either to become a Factor or to unwind the business totally, and a road map to this effect. The company would be granted CoR as NBFC-Factor only after it complies with the twin criteria of financial assets and income. If the company does not comply within the period as specified by the Bank, it would have to unwind the factoring business.

4. Who receives the application ? +

The Department / Office selected by the applicant, while submitting his/her application through ATS, will receive the application.

4. Why will WPI be used for inflation protection? Why CPI has not considered for the same? +

The consumer price index (CPI) reflects the inflation people at large face and therefore, globally CPI or Retail Price Index (RPI) is used for inflation target by the Central Banks as well as for providing inflation protection in IIBs.
In India, all India CPI is being released since January 2011 and it will take some time in stabilizing. Monetary policy has also been continuing to target WPI for its price stability objective. In view of above, it has been decided to consider WPI for inflation protection in IIBs.

4. Are the green deposits raised prior to release of framework covered under it? Whether the REs can finance green activities/ projects first and then later raise green deposits?

The framework is applicable for green deposits raised by REs on or after June 01, 2023.
REs cannot finance green activities/ projects first and raise green deposits thereafter.

4. A confirmation is required that the IIBs will be accounted for as lower of Cost or Market Value. The Market Value being the Principal after the Indexation as on date of the trade, and the price concluded between the Buyer and Seller based upon the “Real Yield”. +

Ans: As to what is market value, please refer to the answer given against Q1 and 3.

4.How much exchange is available for a business trip? +

Authorized dealers can release foreign exchange up to USD 25,000 for a business trip to any country other than Nepal and Bhutan. Release of foreign exchange exceeding USD 25,000 for a travel abroad (other than Nepal and Bhutan) for business purposes, irrespective of period of stay, requires prior permission from Reserve Bank. Visits in connection with attending of an international conference, seminar, specialised training, study tour, apprentice training, etc., are treated as business visits. Visit abroad for medical treatment and/or check up also falls within this category.

4. How will you know whether your bank is insured by the DICGC or not ? +

The DICGC while registering the banks as insured banks furnishes them with printed leaflets for display giving information relating to the protection afforded by the Corporation to the depositors of the insured banks. In case of doubt, depositor should make specific enquiry from the branch official in this regard.

Q4. How the ACU transactions are to be handled by Authorised Dealers in India? +

Ans. All transactions to be settled through the ACU will be handled by AD Category-I banks in the same manner as other normal foreign exchange transactions, through correspondent arrangements.

Q.4. How does the RBI EFT system operate? +

Ans Step-1: The remitter fills in the EFT Application form giving the particulars of the beneficiary (city, bank, branch, beneficiary’s name, account type and account number) and authorises the branch to remit a specified amount to the beneficiary by raising a debit to the remitter’s account. Step-2: The remitting branch prepares a schedule and sends the duplicate of the EFT application form to its Service branch for EFT data preparation. If the branch is equipped with a computer system, data preparation can be done at the branch level in the specified format. Step-3: The Service branch prepares the EFT data file by using a software package supplied by RBI and transmits the same to the local RBI (National Clearing Cell) to be included for the settlement. Step-4: The RBI at the remitting centre consolidates the files received from all banks, sorts the transactions city-wise and prepares vouchers for debiting the remitting banks on Day-1 itself. City-wise files are transmitted to the RBI offices at the respective destination centres. Step-5: RBI at the destination centre receives the files from the originating centres, consolidates them and sorts them bank-wise. Thereafter, bank-wise remittance data files are transmitted to banks on Day 1 itself. Bank-wise vouchers are prepared for crediting the receiving banks’ accounts the same day or next day. Step-6: On Day 1/2 morning the receiving banks at the destination centres process the remittance files transmitted by RBI and forward credit reports to the destination branches for crediting the beneficiaries’ accounts.

4 What is meant by ‘not permanently resident’? +

Ans. Not permanently resident means a person resident in India for employment of a specified duration (irrespective of length) or for a specific job duration which does not exceed three years.

4. কারা একটি PPI-এর ধারক হতে পারে? +

উত্তর. একজন ধারক এক ব্যাক্তি / সংস্থা হয় যারা PPI জারিকর্তার থেকে PPI পায় / ক্রয় করে, কিছু বস্তু বা পরিষেবা পাবার জন্য এবং এতে আর্থিক পরিষেবা, টাকা পাঠানোর সুবিধা ইত্যাদি থাকে। যদিও, একটি উপহার PPI-এর ক্ষেত্রে, লক্ষ্যের হিতাধিকারীও (যদিও একজন ক্রেতা নন) একজন ধারক হতে পারেন ।

4. কোনো ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ হোল্ডারের কি ওই ব্যাংকে অন্য কোনো সেভিং অ্যাকাউন্ট থাকতে পারে? +

কোনো ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ হোল্ডারের কি ওই ব্যাংকে অন্য কোনো সেভিং অ্যাকাউন্ট থাকতে পারে?

4. অ-ব্যাংক সংস্থাদের ডব্লিউএলএ স্থাপিত করতে দেবার জন্য কি কি যুক্তিসঙ্গত কারণ আছে?

উত্তর. অ-ব্যাংক সংস্থাদের হোয়াইট লেবেল এটিএম স্থাপিত করতে দেবার অনুমতির জন্য যুক্তিসঙ্গত কারণগুলি হচ্ছে যেন এটিএমএর ভৌগোলিক বিস্তার বাড়ানো যায় যাতে সে বাড়তি ও উন্নত গ্রাহক পরিষেবা প্রদান করতে পারে, বিশেষ করে অনুন্নত অঞ্চলে ।

4. What are the grounds of complaints ? +

As per Clause 8 of the Scheme, the Ombudsman for Digital Transactions shall receive and consider complaints on deficiency in services against System Participants defined in the Scheme on any of the following grounds:

4.(1) Prepaid Payment Instruments: Non-adherence to the instructions of Reserve Bank by System Participants about Prepaid Payment Instruments¹ on any of the following:

Failure in crediting merchant's account within reasonable time;
Failure to load funds within reasonable time in wallets / cards;
Unauthorized electronic fund transfer;
Non-Transfer / Refusal to transfer/ failure to transfer within reasonable time, the balance in the Prepaid Payment Instruments to the holder’s ‘own’ bank account or back to source at the time of closure, expiry of validity period etc., of the Prepaid Payment Instrument;
Failure to refund within reasonable time / refusal to refund in case of unsuccessful / returned / rejected / cancelled / transactions;
Non-credit / delay in crediting the account of the Prepaid Payment Instrument holder as per the terms and conditions of the promotions offer(s) from time to time, if any;
Non-adherence to any other instruction of the Reserve Bank on Prepaid Payment Instruments.

4. Is LEI required for individual customer transactions ? +

Ans. No, LEI is not required for customer transactions where both remitter and beneficiary are individuals. For transactions, where either or both parties are non-individual/s, LEI will be required.

4. What would be the selection process/reporting line (in terms of para 2.5 and 2.7) in case of Foreign Bank Operating under the Branch Model (FBOBM)? +

The provisions relating to process of selection / removal / qualification, etc. would be fully applicable to foreign banks operating under the branch model (FBOBM). However, in respect of FBOBM, any reference to the Board in terms of para 2.5 of the aforesaid circular detailing the selection process would be treated as equivalent to the Regional or Head Office Compliance. Further, in terms of para 2.7 on detailing the reporting line, any reference to the Board/ACB would be treated as equivalent to Regional or Head Office Compliance in case of FBOBM.

4. Can ADs (banks) remit proceeds of such accounts on closure? +

Q 4: What is Correspondent banking?

Answer: The term correspondent banking relationship acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits and gathering documents on behalf of another bank. Correspondent banks are most likely to be used by domestic banks to service transactions that either originate or are completed in foreign countries. Domestic banks also use correspondent banks to gain access to foreign financial markets and to serve international clients without having to open branches abroad.

Q 4. If a loan is backed by hypothecation of any security (gold, equipment, white goods, underlying assets etc.), will this loan be considered collateral-free and classified as a microfinance loan? +

Ans. Loans backed by hypothecation of any security shall not be treated as microfinance loans.

4. How have non-bank Payment System Providers (PSPs) accessed payment systems previously? +

Ans. Banks have been providing the services to non-banks for their payment and settlement needs.

Q4. What is an Electronic Trading Platform (ETP)? Do they require authorisation from RBI to operate in India? +

Answer: Electronic Trading Platform (ETP) means any electronic system, other than a recognised stock exchange, on which transactions in eligible instruments like securities, money market instruments, foreign exchange instruments, derivatives, etc. are contracted. No entity shall operate an ETP without obtaining prior authorisation of RBI under The Electronic Trading Platforms (Reserve Bank) Directions, 2018. The list of authorised ETPs is available here.

Resident persons operating ETPs without authorisation from RBI, collecting and effecting/remitting payments directly/indirectly outside India shall render themselves liable for penal action under the extant laws and regulations, including the Foreign Exchange Management Act, 1999 and the Prevention of Money Laundering Act, 2002.

4. What are the usages of credit cards? +

Ans: The credit cards can be used for purchase of goods and services at PoS terminals / e-commerce. These cards can be used domestically and internationally (provided they are enabled for such use). Credit cards can also be used to draw cash advances from ATMs, subject to prescribed terms, and conditions.

4. Is there any floor as inflation may turn into deflation at times? +

Yes, fixed rate of 1.5% would act as a floor, which means that 1.5% per annum interest rate is guaranteed if there is deflation.
For example, if inflation rate is (-) 5%, then interest rate should be (-) 3.5% by simple calculation. But in such case, negative inflation will not be recognised and investors would get fixed rate of 1.5% (please see example 2 at 23).

4. Storage of data pertaining to cross-border transactions +

For cross border transaction data, consisting of a foreign component and a domestic component, a copy of the domestic component may also be stored abroad, if required.

4. Who can participate as a buyer in TReDS ? +

Ans. Corporates, Government Departments, PSUs and any other entity can participate as buyers in TReDS.

4. Query Whether a 'Basic Savings Bank Deposit Account' holder can have any other saving account in that bank ? +

Response

Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank. If a customer has any other existing savings account in that bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'.

(iv) Whether ECB and Trade Credit raised from overseas branches of Indian banks be counted towards ASCL? +

Yes, ECB and Trade Credit raised from overseas branches of Indian banks will count towards ASCL.

4. How Indian citizens who were abroad exchange the SBNs ? +

In terms of the Specified Banknotes (Cessation of liabilities) Act 2017, a facility for exchange of SBNs is made available for the resident and non-resident Indian citizens (Indian passport required) who could not avail the facility from November 10 to December 30, 2016 on account of their absence from India during the aforementioned period. The facility was open for residents from January 2, 2017 to March 31, 2017 and for NRIs it will be till June 30, 2017 at five Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur.

The facility can be availed only in individual capacity and only on one occasion during the period. No third party tender is permissible under the facility.

This facility will not be available for Indian citizens resident in Nepal, Bhutan, Pakistan and Bangladesh.

The details of the facility including terms/ conditions and modalities thereof are available in our circular DCM (Plg) No 2170/10.27.00/2016-17 dated December 31, 2016.

Link to tender form for Resident Indians and NRIs (holding Indian passport) available here.

4. Whether the NBFCs/HFCs failing to meet the requirements as per the existing RBI guidelines shall have to maintain capital for the assets sold as if these were still on the books of the originating NBFC/HFC ? +

No, the transactions covered under the PCG scheme adhering to the prescriptions as per Government of India notification dated August 10, 2019 and the clarifications provided herein will be deemed to have met true sale criteria and the originating NBFC/HFC would not be required to maintain any capital after the transfer of the pooled assets to the purchasing PSBs except in the cases where the originating NBFC/HFC provides credit enhancement.

4. How will the swap cost of 3.5 per cent be computed ? +

The swap cost of 3.5 per cent will be compounded semi-annually for the tenor of the swap.

Q4. What does “sponsorship” mean? +

Ans : “Sponsorship” means an equity participation by the NBFC between 30 to 49% of the IDF.

Q.4. What is meant by Priority Sector Lending ? +

Priority sector lending includes only those sectors as part of the priority sector, that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises. Detailed guidelines on Priority Sector Lending are available in our Master Direction on Priority Sector Lending FIDD.CO.Plan.BC.5/04.09.01/2020-21 dated September 04, 2020 and updated from time to time.

Q.4. Can NBFC-IFCs lend to/ invest in infrastructure investment trusts (InvITs) and other trust funds?

Infrastructure Finance Companies can maintain risk weight at 50% for assets covering PPP and post commercial operations date (COD) projects which have completed at least one year of satisfactory commercial operations and which are backed by a buyback guarantee by a designated Project / Statutory authority under a Tripartite Agreement.

4. How can the eligible investors participate in the auctions? +

Eligible investors cannot participate directly. They have to necessarily come through an aggregator or facilitator.

4. How can the tokenisation be carried? +

Ans. The card holder can get the card tokenised by initiating a request on the app provided by the token requestor. The token requestor will forward the request to the card network which, with the consent of the card issuer, will issue a token corresponding to the combination of the card, the token requestor, and the device.

Q.4. Can an LO/BO/PO acquire property for its operation? +

Ans. The BO /PO of a foreign entity, excluding an LO, are permitted to acquire property for their own use and to carry out permitted/incidental activities but not for leasing or renting out the property. However, entities from Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, Nepal, Bhutan, China, Hong Kong and Macau require prior approval of the Reserve Bank to acquire immovable property in India for a BO/PO. BOs/LOs/POs have general permission to carry out permitted/ incidental activities from leased property subject to lease period not exceeding five years.

Q 4. Under LRS are resident individuals required to repatriate the income earned on investments abroad, over and above the principal amount? +

Ans. The investor who has remitted funds under LRS can retain and reinvest the income earned from his investments made under the Scheme. However, the received/realised/unspent/unused foreign exchange, unless reinvested, shall be repatriated and surrendered to an authorised person within a period of 180 days from the date of such receipt/ realisation/ purchase/ acquisition or date of return to India, as the case may be.

Further, any additional repatriation requirement with respect to investments made under Overseas Investments Rules and Regulations 2022 shall also be adhered to.

4. Who is eligible to invest in the SGBs? +

Persons resident in India as defined under Foreign Exchange Management Act, 1999 are eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

4. What are the grounds of complaints ? +

As per Clause 8 of the Scheme, the NBFC Ombudsman can receive and consider any complaint on the following grounds:non-payment or inordinate delay in the payment of interest on deposits;non-adherence to the Reserve Bank directives, if any, applicable to rate of interest on deposits;non-repayment or inordinate delay in the repayment of deposits;non-presentation or inordinate delay in the presentation of post-dated cheques provided by the customer;failure to convey in writing, the amount of loan sanctioned along with terms and conditions including annualised rate of interest and method of application thereof;failure or refusal to provide sanction letter/ terms and conditions of sanction in vernacular language or a language as understood by the borrower;failure or refusal to provide adequate notice on proposed changes being made in sanctioned terms and conditions in vernacular language as understood by the borrower;failure or inordinate delay in releasing the securities/ documents to the borrower on repayment of all dues;levying of charges without adequate prior notice to the borrower/customer;failure to provide legally enforceable built-in repossession clause in the contract/ loan agreement;failure to ensure transparency in the contract/ loan agreement regarding (i) notice period before taking possession of security; (ii) circumstances under which the notice period can be waived; (iii) the procedure for taking possession of the security; (iv) provision of final chance to be given to the borrower for repayment of loan before the sale/ auction of the security; (v) the procedure for giving repossession to the borrower and (vi) the procedure for sale/ auction of the security;non-observance of directions issued by Reserve Bank to the NBFCs;non-adherence to any of the other provisions of Reserve Bank Guidelines on Fair Practices Code for NBFCs.The Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time.

Sr.No. 4 What is the meaning of Investible Funds ? +

Ans: Investible funds refer to capital infused in the business and surplus generated out of business of NBFC-P2P. It does not include funds of lenders and borrowers that flow through the escrow accounts. Customers’ funds lent/borrowed by using the platform cannot be utilised by the platform.

Q.4. Since this guideline mentions that capital structure of NOFHC shall consist of item (a) and item (b), would it be mandatory that a part of NOFHC equity (not exceeding 10%) must be held by any individual belonging to the Promoter Group, along with his relatives / entities in which he and / or his relatives hold not less than 50 per cent of the voting equity shares? +

4. Can ₹2000 banknotes be used for normal transactions? +

Yes. Members of the public can continue to use ₹2000 banknotes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.

4. Which apps / platforms can be used for receiving and sending remittances from India to Singapore through the UPI-PayNow linkage? +

The list of banks in India, their UPI handles and platforms for receiving and sending remittances are tabulated as following:

Receiving Remittances			Sending Remittances
Banks	UPI Handles Enabled	Featuring Apps	Banks	Apps / Internet banking
Axis Bank	@axisbank	Axis Pay	ICICI Bank	Internet banking
DBS Bank India	@dbs	DBS Digibank	Indian Bank	Mobile App (IndOASIS)
ICICI Bank	@icici	ICICI iMobile	Indian Overseas Bank	Internet banking
Indian Bank	@indianbank	IndOASIS	Indian Overseas Bank	Internet banking
Indian Overseas Bank	@iob	BHIM IOB Pay	State Bank of India	Mobile App (BHIM SBI Pay)
State Bank of India	@sbi	BHIM SBI Pay	State Bank of India	Mobile App (BHIM SBI Pay)

4. How much of one’s foreign exchange earnings can be credited into an EEFC account? +

100% foreign exchange earnings can be credited to the EEFC account subject to the condition that the sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments.

4. Is this facility available at all merchant establishments? How will I know if the facility is available at a particular merchant PoS? +

Ans. No. The facility is made available at merchant establishments designated by the acquirer banks (i.e. the banks that deploy the PoS terminals) after a process of due diligence. The designated merchant establishments have to clearly indicate / display the availability of this facility along with the charges, if any, payable by the customer.

Q 4: Will EMI programmes on Credit Card undertaken in accordance with the Master Direction on Credit Card and Debit Card – Issuance and Conduct, 2022 be covered within the ambit on Digital Lending Guidelines?

Ans: EMI programmes on Credit Card are governed specifically by Para 6(b)(iii)¹ of the ‘Master Direction on Credit Card and Debit Card – Issuance and Conduct, 2022’. Such transactions shall not be covered under the Guidelines on Digital Lending. However other loan products offered on Credit Cards which are not covered/ envisaged under the aforesaid para of the Master Direction shall be governed by the stipulations laid down under the Guidelines on Digital Lending. Further, the Guidelines will also be applicable to all loans offered on Debit Card, including EMI programmes.

Q4: Clause 73 permits transfer of fraud accounts to ARCs. Can the fraud accounts be transferred to permitted lenders other than ARCs?

Ans: There is no restriction on transfer of loan accounts classified as fraud by lenders, which was the position even before the issue of MD-TLE, except for ARCs. Lenders can transfer such exposures to permitted transferees as per their board approved policies in compliance with Clause 73.

Q.4 One of the options allowed to the borrower vide paragraph 2(ii) of the circular is the option to switch from a floating interest rate loan to a fixed interest rate as per their Board approved policy. If the REs presently do not have any fixed interest rate product in any loan category, say home loan, then is it mandatory for the RE to introduce such a product?

Ans: Yes, REs have to mandatorily offer fixed interest rate product in all equated installment based personal loan categories. As stated in paragraph 2 (ii) of the circular, REs shall provide the option to the borrowers to switch over to a fixed rate as per their Board approved policy at the time of reset of interest rates.

4. Are e₹ wallets safe?

Ans: e₹ wallets are safe and secure. There is a robust cyber-security framework to ensure that e₹ is kept secure in the user’s wallet. The e₹ stored in the e₹ wallet is safe even if the mobile device on which the e₹ wallet is installed is lost. The e₹ wallet can be recovered using the same phone number / SIM on a new mobile device.

Q4. Can a Bangladeshi/ Pakistani national or an entity owned/ controlled from Bangladesh/ Pakistan have an account in India ? +

Answer: Opening of accounts by individuals/ entities of Pakistan nationality/ ownership and entities of Bangladesh ownership requires prior approval of the Reserve Bank.

However, individuals of Bangladesh nationality can open an NRO account subject to the individual(s) holding a valid visa and valid residential permit issued by Foreigner Registration Office (FRO)/ Foreigner Regional Registration Office (FRRO) concerned.

Further, citizens of Bangladesh/Pakistan belonging to minority communities in those countries, namely, Hindus, Sikhs, Buddhists, Jains, Parsis and Christians residing in India and who have been granted Long Term Visa (LTV) or whose application for LTV is under consideration, are permitted to open only one NRO account with an AD bank in India subject to the conditions mentioned in Notification No. FEMA 5(R)/2016-RB dated April 01, 2016, as updated from time to time. The opening of such NRO accounts will be subject to reporting of the details of the accounts opened by the concerned Authorised bank, to the Ministry of Home Affairs (MHA) on a quarterly basis as instructed vide AP (DIR Series) Circular No. 28 dated March 28, 2019.

4. Query: What is the procedure for a customer to make a deposit under the scheme? Does interest on deposit start accruing from Day 1 of depositing the gold with CPTC/GMCTA/designated branch?

Response: An eligible depositor can open a Gold Deposit Account with any of the designated banks after meeting the KYC norms. Generally, deposits under the scheme shall be made at the CPTC/GMS Mobilisation, Collection & Testing Agent (GMCTA) which would then test the purity of the customers’ gold in their presence and issue deposit receipts of the standard gold of 995 fineness to the depositor and also inform the customers’ respective bank about acceptance of deposit. The designated bank will credit Short-Term Bank Deposit (STBD) account of the customer, as is applicable, either on the same day of receipt of deposit receipt by the depositor or within 30 days of deposit of gold at CPTC/GMCTA (regardless of whether the depositor submits the receipt or not), whichever is earlier.

Thereafter, the interest on deposits will start accruing from date of conversion of gold deposited into tradable gold bars or 30 days after receipt of gold at the CPTC/GMCTA, whichever is earlier.

4. What is the rate of interest applicable for education loan? +

Reserve Bank of India has deregulated interest rates on advances including education loans sanctioned by Scheduled Commercial Banks. The interest rates are determined by banks with the approval of their respective Board of Directors, subject to regulatory guidelines on interest rate on advances contained in RBI’s Master Direction- Reserve Bank of India (Interest Rate on Advances) Directions, 2016 as updated from time to time.

4. Should acknowledgement be given by pension paying banks while accepting Life Certificates from pensioners?

There have been complaints that life certificates submitted over the counter of pension paying branches are misplaced causing delay in payment of monthly pensions. In order to alleviate the hardships faced by pensioners, agency banks were instructed to mandatorily issue duly signed acknowledgements. They were also requested to consider entering the receipt of life certificates in their CBS and issue a system generated acknowledgement which would serve the twin purpose of acknowledgement as well as real time updation of records. Banks may provide digital acknowledgements in respect of digital life certificates submitted by the pensioners.

Q 4. Whether additional interest admissible to bank’s staff can be paid on the compensation awarded by the court to a minor child and deposited in the joint name of minor child and parent?

Ans. No. As the money belongs to the minor child and not the bank’s staff, additional interest cannot be paid, in terms of paragraph 9.1.6 of these Directions.

4. Who is an RBI Ombudsman (RBIO)? +

An RBI Ombudsman is a senior official of RBI appointed by RBI to redress the complaints from customers of the REs against “deficiency in service”, as defined under Clause 3(1)(g) of the RB-IOS, 2021. “Deficiency in service” means a shortcoming or an inadequacy in any financial service or such other services related thereto, which the RE is required to provide statutorily or otherwise, which may or may not result in financial loss or damage to the customer.

Q.4 Whether REs are required to obtain the approval of Whole-time Director (WTD) for withdrawal of Fraud Monitoring Return (FMR), specifically, in cases where fraud classification of Persons / Entities etc. by the REs have been set aside by the Courts?

Ans: In cases where withdrawal of FMR / removal of name(s) of perpetrator(s) is necessitated due to Court directions, REs may arrange to withdraw FMR / remove name(s) of perpetrator(s) immediately. Such cases shall subsequently be placed before the official in the rank of WTD for information.

Q.5. Are any fees required to be paid for seeking compounding? +

Ans. Yes. All compounding applications shall be submitted along with the prescribed fee of ₹10,000/- (plus applicable GST, which at present is 18%) by way of demand draft in favour of “Reserve Bank of India” and payable at the concerned Regional Office/ CO Cell, New Delhi/ Central Office or through National Electronic Fund Transfer (NEFT), or other permissible electronic or online modes of payment. The necessary details for making the payment through electronic mode is provided in Annexure I in Directions – Compounding of contraventions under FEMA, 1999. In case application fee is paid through NEFT or other permissible electronic mode of payment, it may be ensured that intimation of payment of applications fee, to respective RO, CO Cell, or Central Office, as case may be, shall be made as soon as possible but not later than 2 hours from time of payment, through an email as per the template provided in Para B of Annexure I of Directions – Compounding of contraventions under FEMA, 1999.

It may further be noted that in case compounding application is returned for any reason, The application fee, if paid, shall not be returned in case of return of the compounding application. However, in case such applications are re-submitted, then the application fee need not be paid again.

5. What constitutes ‘credit facility’ under the definition of infrastructure loan? +

The term ‘credit facility’ means a term loan, project loan subscription to bonds/ debentures/ preference shares/ equity shares in a project company acquired as a part of project finance package such that such subscription amounts to be “in the nature of advance” or any other form of long term funded facility provided to a borrower company engaged in developing/ operating and maintaining/ developing, operating and maintaining infrastructure facilities, that is a project in any of the sub-sectors as specified in the definition of infrastructure loan.

5. What information should be reported in ITES survey, if balance sheet of the company is not audited before the due date of submission ?

Ans.: If the company’s accounts are not audited before the due date of submission, i.e. July 15, then the ITES survey schedule should be submitted based on unaudited (provisional) account.

5. What if the MF company does not receive the soft copy of the survey schedule by email ?

Ans.: In case MF company does not receive the soft-form of Schedule-4, they may download the same from RBI website under the head 'Regulatory Reporting' → ‘List of Returns’ → ‘FLA Schedule IV - Survey Schedule’ [or under the head 'Forms' (available under ‘More Links’ at the bottom of the home page) and sub-head Survey] or send a request to the e-mail: mfquery@rbi.org.in

5. Will the amount reserved for non-competitive bids be a part of the notified amount ? +

Yes. The reserved amount will be within the notified amount.

5. What are the grounds of complaints ? +

The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services:non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;non-payment or delay in payment of inward remittances ;failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;non-adherence to prescribed working hours ;failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;delays, non-credit of proceeds to parties' accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank ;complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank related matters;refusal to open deposit accounts without any valid reason for refusal;levying of charges without adequate prior notice to the customer;Non-adherence to the instructions of Reserve Bank on ATM / Debit Card and Prepaid Card operations in India by the bank or its subsidiariesNon-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on credit card operationsNon-adherence to the instructions of Reserve Bank with regard to Mobile Banking / Electronic Banking service in India by the bankNon-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;Forced closure of deposit accounts without due notice or without sufficient reason;Refusal to close or delay in closing the accounts;Non-adherence to the fair practices code as adopted by the bank;Non-adherence to the provisions of the Code of Bank's Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ;Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks;Non-adherence to Reserve Bank guidelines on para-banking activities like sale of insurance / mutual fund /other third party investment products by banksAny other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.A customer can also lodge a complaint on the following grounds of deficiency in service with respect to loans and advancesnon-observance of Reserve Bank Directives on interest rates;delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;non-acceptance of application for loans without furnishing valid reasons to the applicant; andnon-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time.

5. How does the ECS Credit Scheme work? +

Ans : The User intending to effect payments through ECS Credit has to submit details of the beneficiaries (like name, bank / branch / account number of the beneficiary, MICR code of the destination bank branch, etc.), date on which credit is to be afforded to the beneficiaries, etc., in a specified format (called the input file) through its sponsor bank to one of the ECS Centres where it is registered as a User.

The bank managing the ECS Centre then debits the account of the sponsor bank on the scheduled settlement day and credits the accounts of the destination banks, for onward credit to the accounts of the ultimate beneficiaries with the destination bank branches.

Further details about the ECS Credit scheme are contained in the Procedural Guidelines and available on the website of Reserve Bank of India at http://www.rbi.org.in/Scripts/ECSUserView.aspx?Id=1

5. What are the benefits of CTS to customers? +

CTS enables fast and cheap realisation of funds to customers as compared to traditional mechanisms. Under grid-based CTS clearing, all cheques drawn on bank branches falling within in the grid jurisdiction are treated and cleared as local cheques. No outstation cheque collection charges to be levied if the collecting bank and the paying bank are located within the jurisdiction of the same CTS grid even though they are located in different cities.

CTS also benefits issuers of cheques. The Corporates if needed can be provided with images of cheques by their bankers for internal requirements, if any.

5. Who is an aggregator or facilitator? +

An aggregator or facilitator means a Scheduled Bank or Primary Dealer or Specified Stock Exchange permitted to aggregate the bids received from the investors and submit a single bid in the non-competitive segment of the primary auction.

5. What if the paper token is misplaced / lost? +

In case of loss of original token, on a specific request and on payment of prescribed fees, the receipted challan is issued.

5. Which are the cases related to Remittance of Assets for which prior approval of RBI is to be sought for effecting the remittance? +

Answer: RBI approval is required if:

(i) Remittance is in excess of USD 1,000,000 (US Dollar One million only) per financial year:

on account of legacy, bequest or inheritance to a citizen of foreign state, resident outside India; and
by NRIs/ PIOs out of the balances held in NRO accounts/ sale proceeds of assets/ the assets acquired by way of inheritance/ legacy.

(ii) Hardship will be caused to a person if remittance from India is not made to such a person.

Q 5. How much foreign exchange can be brought in while visiting India? +

Ans. A person coming into India from abroad can bring with him foreign exchange without any limit. However, if the aggregate value of the foreign exchange in the form of currency notes, bank notes or travellers cheques brought in exceeds USD 10,000 or its equivalent and/or the value of foreign currency alone exceeds USD 5,000 or its equivalent, it should be declared to the Customs Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India.

5. Where can one submit the application for an FFMC licence? +

Application in the prescribed form (as given in Part I: Annex-I of the FED Master Direction No.18/2015-16 on Reporting under FEMA 1999), along with the required documents should be submitted to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank under whose jurisdiction the registered office of the applicant company falls.

5. How can I find the IFSC of a bank-branch? +

Ans: Bank-wise list of IFSCs is available with all the bank-branches participating in NEFT scheme. List of bank-wise branches participating in NEFT and their IFSCs is also available on the website of RBI at /en/web/rbi/-/list-of-neft-enabled-bank-branches-bank-wise-indian-financial-system-code-updated-as-on-june-30-2023-2009-1. All member banks have also been advised to print the IFSC of the branch on cheques issued to their customers.

Q.5 In case an RE functioning as an LSP is providing DLG, does it also need to have a Board approved policy.

Ans: While the Guidelines mandate the REs accepting DLG cover to have a Board approved policy in place, the REs acting as DLG providers shall also put in place Board approved policy as a prudent measure.

5. What are the documents required to be presented by the remitter? +

Ans: If the remitting customer maintains an account with a bank branch in India, there is no need for any additional information, documents or identification. Else, the remitter has to submit documents for proof of identification such as Passport / Permanent Account Number / Driving License / Telephone Bill / Certificate of Identification issued by his employer with photograph and other details. The information will be captured in the NEFT system as part of compliance with Know Your Customer (KYC) requirements. Complete address and telephone / mobile number of the beneficiary in Nepal will also be required.

5. Is there any specific field in the SWIFT message where LEI needs to be captured? +

Ans. The circular does not prescribe any instructions with respect to SWIFT message formats.

5. Whether banks can pay commission for mobilising deposits +

Banks are prohibited from employing / engaging any individual, firm company, association, institution for collection of deposits or selling of deposit linked products on payment of remuneration or fees or commission in any form or manner exceptcommissionpaid to agents employed to collect door to door deposits under a special scheme

5. How does the ATS work ? +

A first time user should register through ATS using his/her valid email id.
A system generated Password will be forwarded to the applicant’s email id.
Thereafter, the applicant can login and submit his/her application and track the same.
As soon as an application is submitted through ATS, a unique application number is generated and forwarded to the applicant by the system.
A mail is sent by the system automatically when the application is disposed of or transferred from one office / department / section to another.

5. As per Para 6.3, whether an audit firm doing audit of any Company/Entity with Large Exposure² to the Entity is prohibited from being appointed as SCA/SA of the Entity?

The Circular does not prohibit an audit firm from doing audit of any Company/Entity with Large Exposure to the Entity from being appointed as SCA/SA of the Entity. It only stipulates that this aspect should also be explicitly factored while assessing independence of the auditor. In this regard, the Board/ACB/LMC shall see that there is no conflict of interest and the independence of auditors is ensured.

5. What are the charges that the customer need to pay for availing this service? +

Ans. The customer need not pay any charges for availing this service.

5. When can one file a complaint ? +

For redressal of grievance, the complainant must first approach the System Participant (as defined in the Scheme) concerned. If the System Participant does not reply within a period of one month after receipt of the complaint, or rejects the complaint, or if the complainant is not satisfied with the reply given, the complainant can file the complaint with the Ombudsman for Digital Transactions within whose jurisdiction the branch or office of the System Participant complained against, is located. For complaints arising out of services with centralized operations, the same shall be filed before the Ombudsman for Digital Transactions within whose territorial jurisdiction the billing / declared address of the customer is located.

5. Where can declarants get the application form? +

Application for the deposit will be available at branches of Authorised Banks. It is also available in the Reserve Bank of India website.

(v) In terms of circular DBOD.No.BP.BC.97/21.04.141/2009-10 dated April 23, 2010 on “Classification of Investments by Banks in Bonds issued by Companies engaged in Infrastructure Activities”, investment by scheduled commercial banks in the long-term bonds issued by companies engaged in executing infrastructure projects and having a minimum residual maturity of seven years may be classified under HTM category. Whether this classification will be available for investments made by banks in bonds issued by infrastructure ‘specified borrowers’ beyond their NPLL?

Ans: Bonds subscribed by banks and which meet the criteria specified in circular dated April 23, 2010 will continue to be classified under HTM category.

5. Are microfinance loans to individuals, including JLG borrowers, eligible for resolution under the Resolution Framework? Similarly, whether Loans sanctioned to Self Help Groups (SHGs) engaged in non-farm activities are eligible to the benefit under the Resolution Framework? +

All loans meeting the eligibility criteria, unless covered by the specific exclusions listed in Paragraph 2 of the Annex to the Resolution Framework subject to the clarification at Sl. No. 2 above fall within the scope of resolution under the framework. These loans, if not falling under any of the categories mentioned in Paragraph 2 of the Annex to the Resolution Framework, is eligible for resolution under Part A of the Annex if they fall within the purview of “personal loans” as defined in the Circular DBR.No.BP.BC.99/08.13.100/2017-18 dated January 4, 2018 on “XBRL Returns – Harmonization of Banking Statistics”, even if they are not explicitly classified as so in any regulatory / supervisory reporting, or under Part B of the Annex otherwise.

5. Whether consent for activation and closure of a business credit card can be obtained from the corporate/business entity instead of the cardholder?

Response: For business credit cards, wherein the cards have been issued based on the application by a corporate or business entity, card-issuers shall seek explicit consent as required under paragraph 6(a)(vi)/send intimation as required under paragraph 8(b) respectively from/to the principal account holder (viz. corporate or business entity) unless specified otherwise in the agreement. Similarly, with regard to retail credit cards too, it is clarified that the requisite consent shall be sought from the principal cardholder and not from the add-on cardholders.

However, for blocking of such credit cards, either the actual cardholder or the principal cardholder can initiate the request.

5. Whether user can settle/ claim his/her unclaimed deposits through UDGAM portal or from RBI?

ANS: No, the UDGAM portal facilitates only (a) the search of unclaimed deposits/accounts across multiple banks at one place and (b) provides information on claim/settlement process of each bank (which will be available in the search result). The unclaimed deposits can be claimed only from the respective bank.

5. Whether customer/depositor can claim a refund of their unclaimed amounts from the DEA Fund?

Ans: Yes, customer/depositor can claim a refund of their unclaimed amounts from their banks. Based on the request of claim made by customer/depositor or legal heirs (in case of deceased depositors), the banks shall repay the customer/depositor along with interest (applicable only in case of Interest-Bearing deposit accounts) and then lodge a claim for a refund from the DEA Fund maintained by the RBI for an equivalent amount paid to the customer/depositor.

5. What does ‘outstanding amount’ include according to the circular?

Ans: The ‘outstanding amount’ to be displayed on the website of the RE shall be as per definition provided under Section 13 (9) (b) of the SARFAESI Act, 2002 i.e. it shall include principal, interest and any other dues payable by the borrower to the secured creditor in respect of secured asset as per the books of account of the secured creditor.

5. Whether the interest charged for the period of default (including in case of unpaid EMI) will also be treated as penal interest or regular/overdue interest?

In terms of para 3(i) of the circular, the prescribed guidelines will not affect the normal procedures for compounding of interest in the loan account. Therefore, REs may charge interest on unpaid interest (including on unpaid EMI) at the contracted rate of interest till the date of remediation, and not at the penal rate of interest.

5. Whether EEFC Account can be opened by Special Economic Zone (SEZ) Units? +

No, SEZ Units cannot open EEFC Accounts. However, a unit located in a Special Economic Zone can open a Foreign Currency Account with an Authorised Dealer in India subject to conditions stipulated in Regulation 4 (D) of Foreign Exchange Management (Foreign Currency Accounts by a person Resident in India) Regulations dated January 21, 2016.

5. How much foreign exchange is available to a person going abroad on employment?
+

Person going abroad for employment can draw foreign exchange upto US$5,000 from any authorised dealer in India.

Q.5 Where can one get clarifications pertaining to the guidelines on overseas investment ? +

Any clarification in respect of specific cases could be obtained from the Reserve Bank’s Central office at the following address:

Overseas Investment Division,
Exchange Control Department,
Central office,
Reserve Bank of India,
Mumbai 400001.
or
e-mail: oid@rbi.org.in

5. What can be done to repatriate the proceeds of an account that has been maintained for more than six months ? +

An application for repatriation of balance may be made on plain paper to the concerned Regional Office of Reserve Bank.

Whether remittance of partly paid invoices/on account payments is permitted? +

Remittance of partly paid invoices is permissible, subject to total remittance not exceeding the amount indicated in the invoice. In terms of the extant guidelines, although the advertisement charges can be accepted in advance, along with the text of the advertising matter, by the Indian channel agent, the remittance can be made by the AD, only after the advertisements are telecast abroad and invoices raised thereafter, and subject to submission of the requisite documents as stated at (4) above such as invoice, tax declaration/deduction certificate, certificate from Chartered Accountant regarding foreign exchange earning in the past 2 years.

5. In the absence of QA 22 account how the salary of foreign nationals be remitted ? +

In terms of GOI notification No.SO.301(E) dated March 30, 2001, banks are free to allow remittance for maintenance of close relatives abroad not exceeding net salary (after deduction of taxes, contribution to provident fund and other deductions) of a person who is resident but not permanently resident in India and is a citizen of a foreign state other than Pakistan. Therefore, independent of QA 22 procedure, they may allow remittance of net salary.

5. What are the different interest rate options offered by banks?

Banks generally offer either of the following loan options: Floating Rate Home Loans and Fixed Rate Home Loans. For a Fixed Rate Loan, the rate of interest is fixed either for the entire tenure of the loan or a certain part of the tenure of the loan. In case of a pure fixed loan, the EMI due to the bank remains constant. If a bank offers a Loan which is fixed only for a certain period of the tenure of the loan, please try to elicit information from the bank whether the rates may be raised after the period (reset clause). You may try to negotiate a lock-in that should include the rate that you have agreed upon initially and the period the lock-in lasts.

Hence, the EMI of a fixed rate loan is known in advance. This is the cash outflow that can be planned for at the outset of the loan. If the inflation and the interest rate in the economy move up over the years, a fixed EMI is attractively stagnant and is easier to plan for. However, if you have fixed EMI, any reduction in interest rates in the market, will not benefit you.

Determinants of floating rate:

The EMI of a floating rate loan changes with changes in market interest rates. If market rates increase, your repayment increases. When rates fall, your dues also fall. The floating interest rate is made up of two parts: the index and the spread. The index is a measure of interest rates generally (based on say, government securities prices), and the spread is an extra amount that the banker adds to cover credit risk, profit mark-up etc. The amount of the spread may differ from one lender to another, but it is usually constant over the life of the loan. If the index rate moves up, so does your interest rate in most circumstances and you will have to pay a higher EMI. Conversely, if the interest rate moves down, your EMI amount should be lower.

Also, sometimes banks make some adjustments so that your EMI remains constant. In such cases, when a lender increases the floating interest rate, the tenure of the loan is increased (and EMI kept constant).

Some lenders also base their floating rates on their Benchmark Prime Lending Rates (BPLR). You should ask what index will be used for setting the floating rate, how it has generally fluctuated in the past, and where it is published/disclosed. However, the past fluctuation of any index is not a guarantee for its future behavior.

Flexibility in EMI:

Some banks also offer their customers flexible repayment options. Here the EMIs are unequal. In step-up loans, the EMI is low initially and increases as years roll by (balloon repayment). In step-down loans, EMI is high initially and decreases as years roll by.

Step-up option is convenient for borrowers who are in the beginning of their careers. Step-down loan option is useful for borrowers who are close to their retirement years and currently make good money.

5. WHETHER ANY PARTICULAR TECHNOLOGY OR PROCESS HAS BEEN RECOMMENDED FOR ADF? +

No specific Technology, Vendor, Service Provider or Process has been recommended for achieving ADF and it has been left to the banks to decide on these issues on the basis of internal requirements.

5. Does the PSS Act, 2007 define what is a “payment obligation”, “payment instruction”, “payment system” and other commonly used terms like “electronic fund transfer”, “gross settlement system”, “netting”, “settlement”, “systemic risk”, “system participant” and “system provider”? +

Ans. Yes, these terms are defined in Section 2 (1) of the PSS Act, 2007.

5. What are the charges levied for the collection of these USD denominated cheques? +

The charges levied by banks for collection of such USD denominated cheques are dependent on the type of collection arrangement chosen by customers and the number of intermediaries (correspondent banks) involved in the collection process. Each of the CBs will levy their own charges for facilitating the process of collection. All these charges will be in turn levied by the collecting banks in India from the customers. The customer’s account is credited net of collection charges (proceeds minus collection charges)

5. Can I know a bank’s Cheque Collection Policy? +

Like in most countries, banks in India also are required to develop their own individual policy / procedures relating to collection of cheques. The customer is entitled to receive due disclosures from the bank on the bank's obligations and the customers' rights.

Broadly, the policies formulated by banks should cover the following areas:

Immediate credit for local / outstation cheques, Time frame for collection of local / outstation instruments and compensation payable for delayed collection.

The CCPs of various banks are made available on the website of respective bank.

Banks are obliged to disclose their liability to customers by way of compensation / interest payments due to delays for non-compliance with the standards set by the banks themselves. The customer has to be compensated by way of compensation/interest payment even if no formal claim is lodged to the effect.

5. What about the applicability of the Public Debt Act, 1944 and the Indian Securities Act, 1920 to the Government securities? +

The Public Debt Act, 1944 shall cease to apply to the Government securities to which the G S Act applies, while the Indian Securities Act, 1920 has been repealed.

Q5. What are the eligibility parameters for NBFCs as sponsors of IDF-MF? +

Ans : NBFCs desirous of sponsoring IDF-MFs are required to comply with the following requirements :

The NBFC should have a minimum Net Owned Funds (NOF) of Rs.300 crore; and Capital to Risk Weighted Assets (CRAR) of 15%;
its net NPAs should be less than 3% of net advances;
it should have been in existence for at least 5 years;
it should be earning profits for the last three years and its performance should be satisfactory;
the CRAR of the NBFC post investment in the IDF-MF should not be less than the regulatory minimum prescribed for it;
The NBFC should continue to maintain the required level of NOF after accounting for investment in the proposed IDF and
There should be no supervisory concerns with respect to the NBFC.

5. What is the procedure for access to NDS-OM Web Module by GAH? +

On behalf of GAH, PM needs to submit an access request form to CCIL. The Request would be formally addressed to RBI. However, CCIL has been authorized to directly receive and process Access Request Form from PM for operational convenience. A detailed operation flow is contained in Annexure I.

Q 5. Is it compulsory for all entities to get registered with RBI to conduct factoring business ? +

Ans. Yes. An entity not registered with the Bank may not conduct the business of factoring unless it is an entity mentioned in Section 5 of the Act i.e. a bank or any corporation established under an Act of Parliament or State Legislature, or a Government Company as defined under section 617 of the Companies Act, 1956.

Q.5. Are there any targets prescribed for lending by banks to MSMEs ? +

A sub-target of 7.5% of Adjusted Net Bank Credit (ANBC) or Credit Equivalent of Off-Balance Sheet Exposure (CEOBE), whichever is higher, towards lending to the Micro-enterprises under overall Priority Sector Lending has been prescribed for Domestic commercial banks, Foreign banks with 20 branches and above, Regional Rural Banks and Small Finance Banks.

5. What is the formula for calculating index ratio? +

Index ratio (IR) will be calculated by dividing the reference WPI on the settlement date with the reference WPI on the issue date.
The formula for the same is as under:

5. Is it permissible to classify the green activities/ projects financed under the framework under priority sector? Are investments made by REs in Sovereign Green Bonds covered under the framework?

Yes, the green activities/ projects financed under the framework can be classified under priority sector if they meet the requirements laid down in priority sector lending (PSL) guidelines of RBI [Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020-21 dated September 04, 2020] as amended from time to time.
As the activities/ projects listed in the framework are the same as indicated in Sovereign Green Bonds (SGrBs) framework, investment by REs in SGrBs are covered under the framework.

5. What would be the methodology for calculating the standardized market risk capital charge for Banks and PDs. +

Ans: Presently market risk capital charge for Government Securities is calculated using Standardized Duration Method. This method is based on the price sensitivity with respect to nominal interest rates (modified duration). This methodology may be made applicable to IIBs also. Nominal interest rates are composed of two factors: real interest rates and inflation expectations. IIBs are exposed to the risk of changes in the real rates only. Therefore, price sensitivity calculated with respect to nominal yields will not provide the true risk of the IIBs. Hence in the case of IIBs, price sensitivity with respect to change in the real yields should be calculated for IIBs.

5. Can one obtain additional foreign exchange for medical treatment outside India? +

Authorized dealers may release foreign exchange upto USD 100,000 or its equivalent to resident Indians for medical treatment abroad on self declaration basis of essential details, without insisting on any estimate from a hospital/doctor in India/abroad. A person visiting abroad for medical treatment can obtain foreign exchange exceeding the above limit, provided the request is supported by an estimate from a hospital/doctor in India/abroad. This exchange is to meet the expenses involved in treatment and in addition to the amount referred to in paragraph 1 above.

Q5. What is the unit of settlement of ACU transactions? +

Ans. The Asian Monetary Units (AMUs) is the common unit of account of ACU and is denominated as ‘ACU Dollar’, ‘ACU Euro’ and ‘ACU Yen’, which is equivalent in value to one US Dollar, one Euro and one Japanese Yen respectively. All instruments of payments under ACU have to be denominated in AMUs. Settlement of such instruments may be made by AD Category-I banks through the ACU Dollar Accounts, ACU Euro Accounts and ACU Yen Accounts, which should be distinct from the other US Dollar, Euro and Japanese Yen Accounts respectively maintained for non ACU transactions. As the payment channel for processing ‘ACU Euro’ is under review, the operations in ‘ACU Euro’ have been temporarily suspended with effect from July 01, 2016 and accordingly, all eligible current account transactions including trade transactions in “Euro” are permitted to be settled outside the ACU mechanism until further notice.

Q.5. How is this RBI EFT System an improvement over the existing facilities? +

Ans The primary modes of funds transfer at present are demand draft, mail transfer and telegraphic transfer. The demand draft facility is paper based. The remitter, after purchasing demand draft from a bank branch, dispatches the same by post/courier to the beneficiary. The beneficiary, in turn, lodges the draft to his/her bank for collection and clearing. The time taken for completing the process is about 10 days. In the case of telegraphic transfer, fund reaches the beneficiary either on the same day or the next; but both the remitter and the beneficiary would have to be account holders of the same bank. If they are customers of different banks, a good deal of paper processing is required. On the other hand, RBI EFT system is an inter-bank oriented system. RBI acts as an intermediary between the remitting bank and the receiving bank and effects inter-bank funds transfer. The customers of banks can request their respective branches to remit funds to the designated customers irrespective of bank affiliation of the beneficiary.

5. RTGS কি 24x7 ব্যবস্থা নাকি এর জন্য কিছু সময় বরাদ্দ হয়ে আছে ?

উত্তর. NEFT একটি বৈদ্যুতিন নিধি স্থানান্তর ব্যবস্থা জ্যার মাধ্যমে সেসব লেনদেন যা একটি নির্দিষ্ট সময়ের জন্য পাওয়া গেছে তাদের একটি গোছায় প্রক্রিয়াজাত করা হয়। এর অন্যদিকে, RTGS-এ, লেনদেনগুলিকে একটির পর একটি হিসেবে পাঠান হয় অর্থাৎ লেনদেনের পর লেনদেনের হিসেবে, RTGS-এর ব্যবসা সময়ে ।

5. What do PPI issuer entities do with the monies collected from PPI holders ? +

Ans. The monies so collected by the PPI issuers are to be used to make payments to merchants who are part of the acceptance arrangement and for facilitating funds transfer / remittance services on behalf of the PPI holders.

5. যেখানো কারো ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ আছে সেখানে কি কোনো ব্যক্তির অন্য ডিপোজিট অ্যাকাউন্ট থাকতে পারে? +

হ্যাঁ। কারো টার্ম ফিক্সড ডিপোজিট, রেকারিং ডিপোজিট প্রভৃতি থাকতে পারে সেই ব্যাংকে যেখানে তার ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ আছে।

5. এটিএম / ডব্লিউএলএ গুলিতে কি কি বিশেষ পরিষেবা পাওয়া যায়?

উত্তর. টাকা বিতরণ ছাড়াও, এটিএমগুলি / ডব্লিউএলএগুলি আরও অনেক পরিষেবা অফার / গ্রাহকদের সুবিধা ইত্যাদি দিতে পারে। এই পরিষেবাগুলির মধ্যে কয়েকটি হচ্ছে :

খাতার হিসেব তথ্য
টাকা জমা দেওয়া (ডব্লিউএলএতে অনুমোদন করা হয়নি )
নিয়মিত বিল পরিশোধ (ডব্লিউএলএ তে অনুমোদিত নয়)
মোবাইলের পুনঃ-ভর ভাউচার কেনার সময় (ডব্লিউএলএ-তে অনুমোদিত নয়)
ছোট / সংক্ষিপ্ত বিবরণ সৃষ্টি করা
পিন পরিবর্তন
চেক বইয়ের জন্য অনুরোধ

5. What is the ‘Fit and Proper’ criteria to be followed in respect of appointment of CCO? +

In terms of para 2 of the circular, CCO is to be selected through a suitable process with an appropriate ‘Fit and Proper’ evaluation/selection criteria. ‘Fit and Proper’ criteria may be examined and reported from the perspectives of competency, integrity and conflict of interest, among others.

5. Who can participate as a financier in TReDS ? +

Ans. Banks, NBFC - Factors and other financial institutions as permitted by the Reserve Bank of India (RBI), can participate as financiers in TReDS.

5. Can the originating NBFCs/HFCs, re-purchase the assets transferred under the provisions of the PCG Scheme ? +

Yes, the originating NBFCs/HFCs have the option to buy back their assets after a specified period of 12 months, as a re-purchase transaction on a right of first refusal basis.

5. Processing of payment transactions +

There is no bar on processing of payment transactions outside India if so desired by the PSOs. However, the data shall be stored only in India after the processing. The complete end-to-end transaction details should be part of the data.
In case the processing is done abroad, the data should be deleted from the systems abroad and brought back to India not later than the one business day or 24 hours from payment processing, whichever is earlier. The same should be stored only in India.
However, any subsequent activity such as settlement processing after payment processing, if done outside India, shall also be undertaken / performed on a near real time basis. The data should be stored only in India.
In case of any other related processing activity, such as chargeback, etc., the data can be accessed, at any time, from India where it is stored.

5. In the absence of QA 22 account how the salary of foreign nationals be remitted? +

Therefore, independent of QA 22 procedure, they may allow remittance of net salary.

Q 5: Will this be a bank to bank arrangement or country to country arrangement?

Answer: This is essentially a bank-to-bank arrangement similar to correspondent banking arrangement.

Q 5. Whether the instructions related to limit of 50 per cent on monthly loan repayment obligations of a household as a percentage of monthly household income apply to non-microfinance loans given to low-income households? +

Ans. Yes, for providing a non-microfinance loan to a low-income household (as defined under the directions), it should be ensured that the limit of 50 per cent on monthly loan repayment obligations of a household as a percentage of monthly household income is not breached. In other words, the limit of 50 per cent shall include both microfinance as well as non-microfinance loans.

5. Why does the Reserve Bank allow non-banks to access CPS directly? +

Ans. Direct participation in CPS can reduce delay in execution of funds transfer instructions of non-banks. Further, if there is any impact in the functioning of the bank, it can cause business disruptions for its non-bank customers as well. Such disruptions, even if temporary, can have the potential to spread instability in the system.

Direct participation to CPS will enable access neutrality between banks and non-banks and facilitate better settlement risk management with increased participation of non-banks.

Q5. Is there information available about the entities not authorised to deal in forex and to operate electronic trading platforms for forex transactions?

Answer: The RBI has published an Alert List containing names of entities neither authorised as ‘authorised persons’ to deal in forex under the FEMA, 1999 nor authorised to operate ETPs under the Electronic Trading Platforms (Reserve Bank) Directions, 2018. The Alert List also contains names of entities/platforms/websites which appear to be promoting unauthorised entities/ETPs, including through advertisements of such unauthorised entities or claiming to be providing training/advisory services. The Alert List is not exhaustive and is based on what was known to RBI at the time of publication. An entity not appearing in the Alert List should not be assumed to be authorised by the RBI. The authorisation status of any person / ETP can be ascertained from the list of authorised persons and authorised ETPs.

5. What are the usages of prepaid cards? +

Ans: By nature, prepaid cards can be (a) Small PPIs and (b) Full-KYC PPIs. The usage depends on the type of PPI and is subject to prescribed limits and conditions. These cards can be issued by both banks and non-banks.

Small PPIs can be used only for purchase of goods and services at a group of clearly identified merchant locations / establishments, which have a specific contract with the issuer (or contract through a payment aggregator / payment gateway) to accept the PPIs as payment instruments.
Full KYC-PPIs can be used for purchase of goods and services, funds transfer or cash withdrawal.

FAQs on Prepaid Payment Instruments (PPIs) give further detailed information on PPIs.

5. When do I get interest? +

Interest will be accrued and compounded in the principal on half-yearly basis and paid along with principal at the time of redemption.

5. Is the facility for exchange of SBNs by NRIs available outside India ? +

No. For NRIs the facility is available from January 2, 2017 to June 30, 2017 at five Reserve Bank offices at Mumbai, New Delhi, Chennai, Kolkata, and Nagpur. The limit of exchange for NRIs will be ₹ 25000/-.

5. Whether service area approach is applicable to sanction of education loans? +

In terms of RBI circular RPCD. MSME&NFS.BC.No.46/06.12.05/2012-13 dated November 09, 2012, banks have been advised not to reject any education loan application for reasons that the residence of the borrower does not fall under the bank's service area.

5. What are the technical guidelines for populating LEI in NEFT and RTGS and messages by member institutions ? +

Ans.

i. In NEFT payment messages, the field 7495 is a free format optional field consisting of 6 lines with 35 characters each with alphanumeric options. The first two lines of this field hall be used for capturing sender and beneficiary customer LEI information, in that order, where applicable and available. When LEI information is captured, narration, remarks, etc., shall be part of last 4 lines of the field. The sender and beneficiary information shall be captured in following format:

7495: line 1 -> SL/20 digit sender LEI/

line 2 -> BL/20 digit beneficiary LEI/

ii. In RTGS customer payment and inter-bank messages, the optional field “<-RmtInf->” has 4 repeat tags with each having 140 characters. The first two loops of this field shall be used for capturing sender and beneficiary customer LEI information, in that order, where applicable and available. When LEI information is captured, narration, remarks, etc., shall be part of last two repeating loops of the field. The sender and beneficiary information shall be captured in following format:

<-RmtInf-> loop 1 -> /SL/20 digit sender LEI/

loop 2 -> /BL/20 digit beneficiary LEI/

5. Is withdrawal of cash using PoS terminals deployed by other banks (i.e. banks other than my card issuer) at designated merchant establishments permitted? +

Ans. Yes. Under this facility, cash can be withdrawn from PoS terminal(s) at designated merchant establishment(s), irrespective of the fact whether the card issuer and the acquiring bank are same or not.

5. What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank ? +

The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount of upto Rupees five lakhs is paid.

Q.5. Can an LO upgraded into BO, continue to have same PAN and bank account? +

Ans. Yes provided the bank account is re-designated as a BO account.

5. When can a bank approach RBI for the swap ? +

As and when the bank mobilizes USD one million or more of FCNR (B) deposits, it may approach RBI. Normally, banks may enter into swap transactions with RBI once in a week in consultation with the Financial Markets Department of RBI.

Q 5. Can remittances under the LRS facility be consolidated in respect of family members? +

Ans. Remittances under the facility can be consolidated in respect of family members subject to the individual family members complying with the terms and conditions of the Scheme. However, clubbing is not permitted by other family members for capital account transactions such as opening a bank account and investment, if they are not the co-owners/co-partners of the investment/ overseas bank account. Remittances for acquiring immovable property outside India from a person resident outside India, may be consolidated in respect of relatives if such relatives, being persons resident in India, comply with the terms and conditions of the Scheme.

5. Whether joint holding will be allowed? +

Yes, joint holding is allowed.

5. When can one file a complaint ? +

For redressal of grievance, the complainant must first approach the concerned NBFC. If the NBFC does not reply within a period of one month after receipt of the complaint, or the NBFC rejects the complaint, or if the complainant is not satisfied with the reply given by the NBFC, the complainant can file the complaint with the NBFC Ombudsman under whose jurisdiction the branch/ registered office of the NBFC falls.

Sr.No. 5: Do applicants of NBFC-P2P registration require to bring in NOF of Rs. 2 crore upfront at the time of making the application ? +

Ans: The applicant should give the list of promoters and the source of funds for the minimum capital of Rs 2 crore. The capital should be infused before issue of CoR. No change in promoters will be allowed in the interregnum.

5. Can components of spread be negative? +

The components of the spread i.e. business strategy and Credit risk premium shall have either a positive value or be zero. In other words, the spread components cannot be negative.

5. Query Can an individual have other deposit accounts where one holds 'Basic Savings Bank Deposit Account’? +

Response

No. An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank.

Yes. One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds 'Basic Savings Bank Deposit Account'.

Q.5. Is it possible that ten independent individuals holding voting equity shares not exceeding 10 per cent each of the total voting equity shares of the NOFHC, be the promoters and set up this NOFHC? +

No. The requirement is that not less than 51 per cent of the voting equity shares of the NOFHC shall be held by companies in the Promoter Group, in which the public hold not less than 51 percent of the voting equity of such companies. If 10 independent individuals form a Group, then such a Group cannot satisfy the above criteria laid down for holding the NOFHC. Additionally, such newly formed Promoter Group would not be able to meet one of the ‘Fit and Proper’ criteria, which requires Promoters/Promoter Groups to have a successful track record of running their business for at least 10 years. Essentially, the intention is that existing groups should set up banks and not groups set up for this purpose. However, it is clarified that individuals belonging to the Promoter Group can participate in the voting equity shares of NOFHC. While any such individual along with his relatives (as defined in Section 6 of the Companies Act 1956) and along with entities in which he and / or his relatives hold not less than 50 per cent of the voting equity shares, can hold voting equity shares not exceeding 10 per cent of the total voting equity shares of the NOFHC, all such individuals (along with their relatives and companies as specified above) irrespective of their numbers, cannot hold more than 49 per cent of the voting equity shares of the NOFHC (since the companies forming part of the Promoter Group whereof companies in which the public hold not less than 51 per cent of the voting equity shares shall hold not less than 51 per cent of the total voting equity shares of the NOFHC).[ para 2 ( C ) (ii) (a) and (b) of the guidelines]

5. What should the public do with ₹2000 denomination banknotes held by them?

Members of the public may approach bank branches for deposit and/or exchange of ₹2000 banknotes held by them.

The facility for deposit into accounts and exchange for ₹2000 banknotes will be available at all banks until September 30, 2023. The facility for exchange will be available also at the 19 Regional Offices (ROs) of RBI having Issue Departments¹ until September 30, 2023.

5. Who are the participating entities in Singapore and their Virtual Payment Address (VPA) handles for sending and receiving remittances? +

The entities from Singapore enabled for the UPI-PayNow linkage and their VPAs are as follows:

Banks / Non-bank	VPA Handles Enabled
DBS Bank Singapore	Registered mobile number
Liquid Group (Non-Bank Financial Institution)	Registered mobile number followed by XNAP (e.g., 123456789XNAP)

Q 5: How to disclose APR in case of floating rate loans? +

Ans: In case of floating rate loans, APR may be disclosed at the time of origination based on the prevailing rate as per the format of KFS. However, as and when the floating rate changes, only the revised APR may be disclosed to the customer via SMS/ e-mail each time the revised APR becomes applicable.

Q5: Chapter III of the MD-TLE advises treatment for loans not in default. For defaults that may happen during few days gap between the date due-diligence is completed and loans transfers, what should be the treatment?

Ans: Ideally, the gap between time of transfer and due-diligence cut-off date should be minimal and the board approved policy should strive to ensure that. However, to account for such scenario and to ensure strict compliance with the stipulation that no loans in default is transferred under provisions of chapter III, lenders are advised to formulate a board approved policy covering all pertinent aspects.

Q.5 Once the customer has exercised option to switch over from floating interest rate loan to a fixed interest rate loan, as allowed vide paragraph 2(ii) of the circular, then is the RE required to give option to the borrower to again switch back to a floating rate loan?

Ans: Yes, the intent of the circular is to allow flexibility to the customer to switch from floating rate loan to fixed rate loan or vice versa subject to applicable charges. The RE is required to specify the number of times a borrower will be allowed to exercise the switch option during the tenor of the loan under its Board approved policy.

5. Which mobile operating system platform does e₹ wallet currently support?

Ans: e₹ wallet is available and supported both on Android and iOS mobile devices.

Q5. What are the accounts that a tourist visiting India can open ? +

Answer: An NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India. The balance in the NRO account may be paid to the account holder at the time of his departure from India provided the account has been maintained for a period not exceeding six months and the account has not been credited with any local funds, other than interest accrued thereon.

5. When can a resident individual open a foreign currency account outside India?

Answer: A resident individual can open a foreign currency account with a bank outside India in the following cases:

1) A resident student who has gone abroad for studies for the period of stay abroad. All credits to the account from India should be made in accordance with FEMA and the rules and regulations made thereunder. On the student’s return to India after completion of studies, the account will be deemed to have been opened under the Liberalised Remittance Scheme (LRS).

2) A resident who is on a visit to a foreign country for the period of stay abroad. The balance in the account should be repatriated to India on return of the account holder to India.

3) A person going abroad to participate in an exhibition/ trade fair for crediting the sale proceeds of goods. The balance should be repatriated to India within one month from the date of closure of the exhibition/ trade fair.

4) A resident individual, being an exporter, for realisation of full export value and receipt of advance remittance by the exporter towards export of goods or services.

5) The following persons for remitting/ receiving their entire salary payable to them in India:

A foreign citizen resident in India, who is an employee of a foreign company and is on deputation to the office/ branch/ subsidiary/ joint venture/ group company in India;
An Indian citizen who is an employee of a foreign company and is on deputation to the office/ branch/ subsidiary/ joint venture/ group company in India; and
A foreign citizen who is a resident in India and is employed with an Indian company.

6) For the purpose of sending remittances under the Liberalized Remittance Scheme.

5. Query: What is the minimum and maximum amount of gold that can be deposited under the scheme?

Response: The minimum deposit at any one time is 10 grams of raw gold (bars, coins, jewellery excluding stones and other metals) and there is no maximum limit for deposit under the scheme. The quantity of gold deposited will be expressed up to three decimals of a gram.

5. Is it possible to submit life certificates without visiting the branch?

Yes, pensioners can submit life certificates without visiting the branch using Jeevan Praman provided the Pension Sanctioning Authority is on boarded on the platform. Further, banks have also been advised to provide super senior citizens (pensioners over 70 years of age) and differently abled or infirm persons (having medically certified chronic illness or disability) including those who are visually impaired, the facility to submit life certificate at the premises/ residence of such customers.

Q 5. Whether banks can give additional rate of interest on term deposits of member / retired member of the bank staff (held jointly with member /members of the family) if the name of the staff is appearing in second or third order?

Ans. No. In terms of paragraph 9.1.6 of these Directions, the benefit of additional interest on term deposits held by bank’s staff member/ retired staff member singly or jointly with family members is only available where the staff member/ retired staff member is the principal account holder.

5. Who is a Deputy Ombudsman? +

A Deputy Ombudsman is a senior officer appointed by RBI to assist the RBI Ombudsman (refer Question 4) in matters of resolution of complaints and in handling certain complaints and the functions entrusted under the Scheme. The Deputy Ombudsman endeavors to promote settlement of a complaint by agreement between the complainant and the RE through facilitation or conciliation or mediation and dispose complaints as discussed in Question 24.

Q.5 Whether the reporting requirement of frauds perpetrated in the group entities of the NBFCs (including HFCs) is applicable to all Group companies?

Ans: The Master Directions require reporting of frauds perpetrated only in the Group entities (subsidiaries / affiliates / joint ventures etc.) belonging to the reporting NBFCs / HFCs. In other words, the reporting requirement is not applicable to the other entities in wider Group to which the reporting NBFC / HFC belongs, which may not be subsidiaries / affiliates / joint ventures etc. of the reporting NBFCs / HFCs.

Sr.No. 6: Will an existing NBFC be able to operate as an NBFC-P2P ?

Ans: No.

Q.6. What are the details required to be filled in the application form? +

Ans. Along with the application in the prescribed format, the applicant may also furnish the details as per the Annexures- relating to Foreign Direct Investment, External Commercial Borrowings, Overseas Direct Investment and Branch Office / Liaison Office, as applicable, (Annexures available in the Directions – Compounding of contraventions under FEMA, 1999, as mentioned in answer to Q. 4 above) along with an undertaking that they are not under investigation of DOE,., a cancelled cheque copy, a copy of the Memorandum of Association while applying for compounding of contraventions under FEMA, 1999. Application submitted to the Reserve Bank must contain contact details i.e., name of the applicant / authorised official or representative of the applicant, telephone/ mobile number and email ID.

6. In case where account closing period of the company is different from reference period (end-March), can it report the information as per account closing period ?

Ans: No. Even if a company’s account closing period is different from reference period (end-March), the ITES survey information should be reported for the survey reference period, based on the company’s internal assessment.

6. What is the timeline for the submission in MF Survey by Mutual Fund companies ? +

Ans.: The mutual fund companies can submit their responses through Schedule-4 (excel format) on or before July 15 of every year.

6. Will non-competitive bidding be allowed in all dated securities auctions ? +

To begin with, non-competitive bidding will be allowed only in select auctions of dated Government of India securities which will be announced as and when proposed to be issued.

6. Whether banks can prematurely repay the term deposit on their own ? +

The term deposit is a contract between the bank and the customer for a definite term and it cannot be paid prematurely at bank's option. Term deposit can be paid prematurely at the request of the customer.

6. When can one file a complaint ? +

One can file a complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month after the bank concerned has received one's complaint, or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank.

6. What is a MICR Code? +

MICR is an acronym for Magnetic Ink Character Recognition. The MICR Code is a numeric code that uniquely identifies a bank-branch participating in the ECS Credit scheme. This is a 9 digit code to identify the location of the bank branch; the first 3 characters represent the city, the next 3 the bank and the last 3 the branch. The MICR Code allotted to a bank branch is printed on the MICR band of cheques issued by bank branches.

6. What is the status of CTS implementation in the country? +

CTS has been implemented in New Delhi, Chennai, and Mumbai with effect from February 1, 2008, September 24, 2011, and April 27, 2013 respectively. After migration of the entire cheque volume to CTS, the traditional mechanisms of cheque clearing have been discontinued across the country. Further, banks have been advised to ensure that all branches are connected to CTS.

Under CTS, cheque processing locations in India are consolidated into the three grids in Chennai, Mumbai and New Delhi.

Each grid provides processing and clearing services to all the banks under its respective jurisdiction. Banks, branches, and customers based at small / remote locations falling under the jurisdiction of a grid would be benefitted, irrespective of whether there exists at present a formal arrangement for cheque clearing or otherwise. The illustrative jurisdiction of the three grids is indicated below:

Chennai Grid : Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nādu, Odisha, West Bengal, Assam and the Union Territory of Puducherry.
Mumbai Grid : Maharashtra, Goa, Gujarat, Madhya Pradesh and Chhattisgarh.
New Delhi Grid : National Capital Region of New Delhi, Haryana, Punjab, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand, Rajasthan and the Union Territory of Chandigarh.

6. What is the minimum/ maximum bidding amount? +

The minimum amount for bidding will be Rs.10,000 (face value) and in multiples in Rs.10,000. The maximum amount for a single non-competitive bid only for the auctions of GOI dated securities should not exceed Rs.2,00,00,000 (face value) per security per auction.

6. What if the Receipted Challan is misplaced? +

No duplicate challan is issued under any circumstances. Instead, a 'Certificate of Credit' is issued on specific request with the requisite particulars and payment of prescribed fee.

6. What are the Tax implications in respect of remittance of assets? +

Ans. All remittances are subject to payment of taxes as applicable in India – Authorised Dealers are to convince themselves on this aspect.

Q 6. Can one pay by cash full rupee equivalent of foreign exchange being purchased for travel abroad? +

Ans. Foreign exchange for travel abroad can be purchased from an authorized person against rupee payment in cash below Rs.50,000/-. However, if the sale of foreign exchange is for the amount equivalent to Rs 50,000/- and above, the entire payment should be made by way of a crossed cheque/ banker’s cheque/ pay order/ demand draft/ debit card / credit card / prepaid card only.

6. How to calculate Net Owned Funds (NOF)? +

Applicant companies should calculate their Net Owned Funds (NOF) of as per the following.

Owned Funds :- (Paid-up Equity Capital + Free reserves + Credit balance in Profit & Loss A/c) minus (Accumulated balance of loss, Deferred revenue expenditure and Other intangible assets)
Net Owned Funds :- Owned funds minus the amount of investments in shares of its subsidiaries, companies in the same group, all (other) non-banking financial companies as also the book value of debentures, bonds, outstanding loans and advances made to and deposits with its subsidiaries and companies in the same group in excess of 10 per cent of the Owned funds.

Q.6 Whether the guidelines on DLG are also applicable for loans sourced by REs under arrangements outside the scope of the Digital Lending Guidelines?

Ans: No.

6. How do the transactions flow from India to Nepal and what are the timelines for completion of the transactions? +

Ans: Remittances under the Scheme for transfer of funds from India to Nepal can be originated from any of the NEFT-enabled bank-branches in India. List of bank-wise branches participating in the NEFT system is available on the website of RBI at http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2009.

The bank branches originating the Indo-Nepal remittance transactions under the NEFT will process it like any other NEFT transaction, the only difference being that these transactions will subsequently be pooled / collected at the designated branch of State Bank of India (SBI) in India. At the end of the day, the remittance information is conveyed electronically by SBI in a secure mode to NSBL. NSBL then makes arrangements for credit to the bank account of the beneficiary if the beneficiary is an account holder of NSBL. Else, NSBL disburses funds in cash to the beneficiary through the authorised money transfer company (Prabhu Money Transfer). The beneficiary has to approach the local branch of the money transfer company, furnish the UTR number (also called as the Unique Transaction Reference number that uniquely identifies a transaction in the NEFT system that can be obtained from the remitter), and produce a photo identity document (generally Nepal Citizenship Certificate) to prove his identity.

If the beneficiary does not approach the money transfer company within a week from the date of the transaction, the money transfer company would make arrangements for return of the remittance to the originator.

6. For transactions involving three parties (e.g., merchanting trade transactions), the AD bank has to obtain LEI for which party/ parties? +

Ans. Each leg of remittance would have only two parties and hence, the AD bank should obtain the LEI accordingly as per the circular.

6. Can a Minor invest in SGB? +

Yes. The application on behalf of the minor has to be made by his/her guardian.

6. As per Para 8.3, whether the limit of audit of four commercial banks, eight UCBs and eight NBFCs for an audit firm in a year is applicable to audit of NBFCs with asset size below Rs. 1,000 crore also ? +

These limits are applicable in respect of audit of all RBI Regulated Entities, irrespective of the asset size.

6. In Paragraph 8 of the Annex to the Resolution Plan, it is stated that resolution under this framework may be invoked not later than December 31, 2020 and must be implemented within 90 days from the date of invocation. What are the meanings of the terms ‘invocation’ and ‘implementation’ in this context? +

The definitions of invocation and implementation in respect of eligible personal loans have been given in Paragraphs 7 and 10 respectively of the Annex to the Resolution Framework. In respect of other eligible loans, invocation shall be as per Paragraphs 14 and 15 of the Annex to the Resolution Framework whereas implementation shall have the meaning as per Paragraphs 14-16 of the circular dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets.

6. What are the use cases (instances / scenarios) for which tokenisation has been allowed? +

Ans. Tokenisation has been allowed through mobile phones and / or tablets for all use cases / channels (e.g., contactless card transactions, payments through QR codes, apps etc.)

6. Is it mandatory for the cardholder to purchase some goods / service from the merchant establishment for availing this facility? +

Ans. No. The facility is available irrespective of whether the card holder makes a purchase or not.

6. When will one's complaint not be considered by the Ombudsman ? +

One's complaint will not be considered under the following circumstances:If the System Participant against whom the complaint is registered, is not covered under the Scheme.If one has not approached the System Participant concerned in the first instance for redressal of the grievance.If the subject matter of the complaint is not pertaining to the grounds of complaint specified under Clause 8 of the Scheme.If one has not made the complaint within one year from the date of receipt of reply from the System Participant; or if no reply is received, and the complaint to the Ombudsman is made after the lapse of more than one year and one month from the date of complaint to the System Participant. In exceptional circumstances as decided by the Ombudsman, a complaint made after the period mentioned above may be accepted by the Ombudsman, provided the complaint is made before the expiry of the period of limitation prescribed under the Indian Limitation Act, 1963 for such claims.If the subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc.If the complaint is for the same subject matter that was settled through the office of the Ombudsman in any previous proceedings.If the complaint is frivolous or vexatious.The complaint falls under the disputes covered under Section 24 of the Payment and Settlement Systems Act, 2007.The complaint pertains to dispute arising from a transaction between customers.

6. When can a declarant make the deposit into the scheme? +

The deposits under this Scheme shall be made in one or more occasions (with effect from February 07, 2017 as per amendment to Pradhan Mantri Garib Kalyan Deposit Scheme, Notification No S.O. 4061 E) in any of the Authorised Banks during normal banking hours on working days [excluding Sundays even if the banking services are offered in select branches on Sundays], till the 31st day of March, 2017.

(vi) Will the additional risk weight on incremental exposure result in change in credit rating also? +

No, additional risk weight on incremental exposure merely on account of borrower being classified as specified borrower, should not normally result in change in credit rating.

6. Is there any minimum / maximum amount stipulation for RTGS transactions? +

Ans. The RTGS system is primarily meant for large value transactions. The minimum amount to be remitted through RTGS is ₹ 2,00,000/- with no upper or maximum ceiling.

Q6: In case of transfer of pools of loans in compliance with clause 36 of the MD-TLE, can prudential norms be applied at the pool level? +

Ans: The treatment in clause 36 is only to facilitate transfer of loans where due to operational or other constraints, the transferee does not conduct a loan level due diligence. This is without prejudice to the requirement under Clause 46 to apply prudential norms at the individual loan level.

6. In case a cardholder makes partial payment, can a card-issuer charge interest/levy late payment charges on the total amount due?

Response: In case a cardholder does not clear the total amount due within the payment due date, interest free credit period will be lost, and interest may be levied from the date of transaction on the outstanding amount (adjusted for payments/refunds/reversed transactions as and when credited) and not on the total amount due. Further, late payment fee and other charges relating to delay in payment shall be levied only on the outstanding amount (adjusted for payments/refunds/reversed transactions as and when credited) after the payment due date and not on the total amount due.

6. What is Unclaimed Deposit Reference Number (UDRN)? +

ANS: UDRN is a unique number generated through Core Banking Solution (CBS) by banks and assigned to each Unclaimed account/ deposit transferred to Depositor Education and Awareness (DEA) Fund of RBI. This number is used so that the account holder or the bank branch where account is maintained, cannot be identified by any third party. The UDRN enables the bank branches to seamlessly settle claims received from the customers/depositors, who have made successful search in UDGAM portal. All the 30 banks on-boarded to the UDGAM portal have put in place necessary requirements to generate UDRN during the development of the portal.

6. Is there a time limit for the customer/ depositor for claiming the amount from the DEA Fund?

Ans: There is no specific time limit prescribed in the Scheme for claiming a refund from the DEA Fund by the customer/ depositor. However, customer/ depositor or the legal heirs (in case of deceased depositor) are encouraged to claim such amounts as soon as they become aware of unclaimed amounts.

6. Should ‘outstanding balance’, ‘asset classification’ and ‘date of asset classification’ be updated on monthly basis?

Ans:No. The ‘outstanding balance’, ‘asset classification’ and ‘date of asset classification’ of the secured assets possessed under Section 13 (4) of the SARFAESI Act, 2002, shall be as per the information published in the newspapers in terms of Rule 3 (1) or Rule 6 (2) of the Security (Enforcement) Rules of 2002 in case of movable property, and Rule 8 (2) in case of immovable property.

6. (a) Can the penal charges be different within the same product category depending upon the amount of loan?

Yes. REs may formulate an appropriate Board approved policy and adopt a suitable structure of penal charges that is ‘reasonable’ and ‘commensurate’ with the non-compliance of material terms and conditions of the loan contract.

6. How much foreign exchange is available to a person going abroad on immigration?
+

Person going abroad for immigration can draw foreign exchange upto US$ 5,000 or the amount prescribed by the country of emigration from an authorised dealer in India. These amount is only to meet the incidental expenses in the country of migration. No amount of foreign exchange can be remitted outside India to become eligible or for earning points or credits for immigration. All such remittances require prior permission of the Reserve Bank.

Q.6 Can overseas investment be made in any activity ? +

An Indian company can make overseas investment in any activity (except those that are specifically prohibited) in which it has experience and expertise. However, for undertaking activities in the financial sector, certain additional conditions specified in Regulation 7 may be adhered to (Please refer to Q.9).

Who is eligible to advertise in Print Media abroad or on Internet? +

Firms/companies/organizations, as well as banks/financial institutions in India, are free to advertise in Print Media abroad, such as overseas newspapers/periodicals or on Internet.

6. What is a “Payment Obligation”? +

Ans. “Payment obligation” is defined as what is owed by one participant in a payment system to another such participant which results from clearing or settlement or payment instructions relating to funds, securities or foreign exchange or derivatives or other transactions.

6. Are US regulations applicable to USD cheque collection? +

The basic legal framework for determining rights, responsibilities and liabilities of the parties in connection with collection of USD denominated cheques drawn on US banks are governed by the legal framework as laid down under the US federal and state laws like Uniform Commercial Code (UCC) etc. However, in the event of return of a counterfeit cheque handled through this process, the drawee bank in the US has the right to recover the proceeds from presenting banks within the period stipulated under US Clearing House guidelines.

6. How bank are supposed to disclose their policies ? +

Customer has the right to know the CCP of the bank before entering into any transaction.

The bank is obliged to disclose the amount up to which immediate credit of outstation cheque is offered in its Comprehensive Notice Board, which is to be displayed at each and every branch of the bank. The bank is also required to disclose time frame for collection of local / outstation instruments and policy for compensation payable for delayed collection. The same will be available in the Information Booklets which should be available at all the bank branches. The customer is also entitled to receive a copy of the bank’s CCP, if (s)he so desires. Banks are also required to put up their CCP on their websites.

Q6. What are the eligibility criteria for IFCs for sponsoring IDF-NBFCs? +

Ans : NBFC-IFC will need to meet the following conditions for sponsoring an IDF-NBFC :

Sponsor IFCs would be allowed to contribute a maximum of 49 percent to the equity of the IDF-NBFCs with a minimum equity holding of 30 percent of the equity of IDF-NBFCs,:
Post investment in the IDF-NBFC, the sponsor NBFC-IFC must maintain minimum CRAR and NOF prescribed for IFCs
There are no supervisory concerns with respect to the IFC.

Q.6. If a company does not fulfill the principal business criteria for factoring and has no intention of getting itself registered as a Factor with the Bank, can it continue to do factoring activities with its group entities. +

Ans : No. As per Section 3 of the Factoring Act 2011, no Factor can commence or carry on the factoring business without a) obtaining a CoR from the Reserve Bank, b) fulfilling the principal business criteria.

6. Can the ATS application be transferred to any other office / department / section ? +

Yes. The applicant will immediately receive a mail conveying details of the original office / department where the application was submitted and the details of the office / department / section to which it has been transferred. The information can also be ascertained through ATS by the applicant under ’My Application’. The entire history will be shown.

Q.6. How do banks assess the working capital requirements of borrowers ? +

Banks have been advised to put in place loan policies governing extension of credit facilities for the MSE sector duly approved by their Board of Directors (Refer circular RPCD.SME & NFS.BC.No.102/06.04.01/2008-09 dated May 4, 2009). Banks have, however, been advised to sanction limits after proper appraisal of the genuine working capital requirements of the borrowers keeping in mind their business cycle and short-term credit requirement. As per Nayak Committee Report, working capital limits to SSI units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of ₹5 crore.

6. Why will final WPI be used with a lag of four months? +

Final monthly WPI will be used as reference WPI for 1st day of the calendar month. The reference WPI for intermittent days, i.e. dates between 1st days of the two consecutive months will be computed through interpolation.
For interpolation, two months final WPI should be available throughout the month. As final WPI is available with a lag of about two and half months (e.g. final WPI February 2013 will be released in mid-May 2013), two months final WPI could be available only with a lag of four months.
In view of above, the four months lag has been chosen for final WPI to be considered as reference WPI for 1st day of the calendar month. For example, December 2012 final WPI will be taken as reference WPI for 1st of May 2013 and January 2013 final WPI will be taken as reference WPI for 1st of June 2013.

6. Can banks allow overdraft facility to customers against Green Deposits?

Banks are allowed to offer overdraft facility to customers against Green Deposits subject to the instructions contained in the Consolidated Circular on Opening of Current Accounts and CC/OD Accounts by Banks dated April 19, 2022, as amended from time to time.

6. The principal for the IIBs is supposed to be indexed to the increase in the inflation as worked out by multiplication of the “Index Ratio” with the face value of the bond. Once the bond starts trading in the market after the auction, the index ratio will be changing daily and so also, the principal amount on which the fixed coupon will be accruing of the bond. Kindly clarify how to account for the principal and the interest for an IIB purchased in the secondary market. +

Ans: Answers as given in Q 1 and Q 3.

6. How much exchange is available for studies outside India? +

Students going abroad for studies are treated as Non-Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA. In addition, they can receive remittances upto USD 100,000 from close relatives from India on self-declaration, towards maintenance, which could include remittances towards their studies also. Educational and other loans availed of by students as resident in India can be allowed to continue. There is no dilution in the existing remittance facilities to students in regard to their academic pursuits.

6. Does the DICGC insure just the principal on an account or both principal and accrued interest ? +

The DICGC insures principal and interest upto a maximum amount of ₹ five lakhs. For example, if an individual had an account with a principal amount of 4,95,000 plus accrued interest of 4,000, the total amount insured by the DICGC would be 4,99,000. If, however, the principal amount in that account was five lakhs, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.

6. Who can avail NEFT system for fund transfer / receipt? +

Ans: Individuals, firms and corporates maintaining accounts with any member bank, participating in the NEFT system, can electronically transfer funds to any individual, firm or corporate having an account with any other bank in the country participating in the NEFT system.

The list of bank-wise branches participating in NEFT is available on the website of RBI at /en/web/rbi/-/list-of-neft-enabled-bank-branches-bank-wise-indian-financial-system-code-updated-as-on-june-30-2023-2009-1.

Q.6. Any limit on the amount of individual transaction? +

Ans There is no value limit for individual transactions.

Q 6. How should credit facilities not having an EMI feature be treated for arriving at total monthly repayment obligations of the household? +

Ans. Board-approved policies of REs should cover such operational aspects. One possible way could be to distribute the annualized repayment obligations over twelve months to estimate monthly outgo of the household towards debt repayment.

6. Are Relief/Savings Bonds also Government securities? Does the G S Act and the G S Regulations apply to them as well? +

Yes. Relief/Savings Bonds are also Government securities. They are issued in the form of Stock Certificate and BLA by the RBI and in the form of BLA by the Agency Banks. All the provisions of the G S Act and the G S Regulations apply to them as well. However, Relief/Savings Bonds may have certain features of their own as per the specific Government Loan Notification announcing their issue. For example, Savings Bonds are not transferable except as explained at Question No. 46 below.

6. Can a resident continue to maintain an account outside India which was opened by him when he was a non-resident? +

Answer: A person resident in India may maintain a foreign currency account outside India if he had opened it when he was resident outside India or inherited it from a person resident outside India.

6. What will I get on redemption? +

On redemption, investors will get principal and compounded interest.

6. আরবিআই দ্বারা কয়টি পিপিআই জারি করার সংস্থা অনুমোদিত হয়েছে ? কোথায় আমি ব্যাংকের দ্বারা অনুমোদিত ব্যাংক এবং অ-ব্যাংক PPI জারিকর্তার তালিকা পেতে পারি? +

উত্তর. আরবিআই ওয়েবসাইটে এই তালিকাটি আছে এই লিংকে : https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=12043 এবং https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2491.

6. ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’ কি খোলা যেতে পারে শুধু নির্দিষ্ট কিছু ব্যক্তির দ্বারা যেমন জনসংখ্যার গরিব ও দুর্বল শ্রেণিভুক্ত মানুষ? +

না। ‘বেসিক সেভিংস ব্যাংক ডিপোজিট অ্যাকাউন্ট’কে একটি স্বাভাবিক ব্যাংকিং পরিষেবা হিসেবে গণ্য করতে হবে শাখাগুলির মাধ্যমে সব গ্রাহকদের জন্য লভ্য রূপে।

6. কি ধরনের কার্ড এটিএম বা ডব্লিউএলএ-তে ব্যবহার করা যায়?

উত্তর. এটিএম / এটিএমের সঙ্গে ডেবিট কার্ড, ক্রেডিট কার্ড এবং প্রিপেড কার্ড, যেমন জারিকর্তার দ্বারা অনুমোদিত, এটিএম / ডব্লিউএলএ-তে বিভিন্ন লেনদেনের জন্য ব্যবহার করা যেতে পারে।

6. Looking at the difficulties being faced by many banks on the issue of appointment of new CCO meeting all requirements, whether the time period allowed for appointment of the CCO may be extended from the prescribed period of six months? +

In view of the difficulties expressed by banks, they may follow the indicated processes for selection of CCO in the above circular within a period of nine months from the date of the circular viz. September 11, 2020 and are free to reappoint the current incumbent as the CCO if she/he meets the requirements.

6. How does TReDS work ? +

Ans. Broadly, following steps take place during financing / discounting through TReDS:

Creation of a Factoring Unit (FU) - standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange - containing details of invoices / bills of exchange (evidencing sale of goods / services by the MSME sellers to the buyers) on TReDS platform by the MSME seller (in case of factoring) or the buyer (in case of reverse factoring);
Acceptance of the FU by the counterparty - buyer or the seller, as the case may be;
Bidding by financiers;
Selection of best bid by the seller or the buyer, as the case may be;
Payment made by the financier (of the selected bid) to the MSME seller at the agreed rate of financing / discounting;
Payment by the buyer to the financier on the due date.

6. When the originating NBFC/ HFC exercise the option to buy back their assets after a specified period of 12 months as a repurchase transaction, are they required to maintain capital for the repurchased assets ? +

Yes, upon buy back of the assets under the PCG scheme, the originating NBFC/ HFC will be required to maintain capital for the re-purchased assets as per the capital requirements prescribed for NBFCs/HFCs by the Bank.

6. Can the data processed abroad be retained abroad till the window for customer dispute resolution / chargeback is available? +

As indicated above, the payment data sent abroad for processing should be deleted abroad within the prescribed time line and stored only in India. The data stored in India can be accessed / fetched for handling customer disputes whenever required.

6. What is the grievance redressal mechanism for borrowers in case of having any specific complaint against bank/s relating to education loan? +

In case of any specific complaint against any bank relating to deficiency in service pertaining to education loan, the same can be filed with the bank concerned. If there is no response to the complaint within one month or non-satisfactory response from the bank, the complaint may be filed under ‘The Reserve Bank - Integrated Ombudsman Scheme, 2021’. Complaints can be filed online through Complaint Management System (CMS) portal of the RBI, at https://cms.rbi.org.in. Complaints can also be filed through the dedicated e-mail or sent in physical mode to the ‘Centralised Receipt and Processing Centre’ set up at Reserve Bank of India, 4th Floor, Sector 17, Chandigarh – 160017, as per the Format provided in the Scheme.

6. What are the advantages of direct access to CPS for non-bank PSPs? +

Ans. Non-banks increasingly and actively offer financial services and direct access to CPS can enable them to leverage technology and offer more choices to their consumers.

Apart from managing settlement risk in payments landscape, expanding access and participation of non-banks is a progressive move and leads to diversity and resiliency of the payments ecosystem.

Q 6: What is the procedure for opening a Special Rupee Vostro Account with an Indian AD bank?

Answer: The AD bank approaching RBI for seeking approval for opening of Special Rupee Vostro Account must submit the following information along with their proposal/request:

The details of the arrangement between AD bank and correspondent bank from the trading partner country along with the funds flow.
A brief write-up on the foreign banks seeking correspondent relationship for Special Rupee Vostro Account.
Copy of the request letter of the correspondent bank to AD bank.
Confirmation from AD bank that the due diligence has been carried out by AD bank which establishes correspondent banking relationship as per our extant guidelines {Master Direction - Know Your Customer (KYC) Direction, 2016 dated Feb 25, 2016) (As amended from time to time)}.
Confirmation from AD bank stating that the correspondent bank is not from a country or jurisdiction in the updated FATF Public Statement on High Risk & Non-Co-operative jurisdictions on which FATF has called for counter measures.
Confirmation from AD bank that they shall ensure that all the transactions taking place in the Special Rupee Vostro Account of the correspondent bank are strictly in adherence to the instructions given in the A.P. (DIR Series) Circular No. 10 dated July 11, 2022.
Financial parameters pertaining to the correspondent bank as required for the proposal may be obtained beforehand by email to fedcotrade@rbi.org.in and the same may be furnished by AD bank along with the proposal.

6. Is there any Cheque facility available? +

Yes, Cheque facility is available for operation of the EEFC account.

6. What are the guidelines governing access to NDS OM Web Module? +

NDS-OM Web Module is only an electronic front end for accessing the main NDS-OM system. All instructions/notifications/circulars/press releases issued by RBI, both current and future, relating to CSGL trades would be binding and applicable. Dealing on NDS-OM Web would also be subject to RBI's NDS-OM Guiding Principles.

Q.6 What is the procedure for settlement of ACU transactions? +

Ans. i) Majority of transactions, as possible, should be settled directly through the accounts maintained by AD Category-l banks with banks in the other participating countries and vice versa; only the spill-overs in either direction are required to be settled by the Central Banks in the countries concerned through the Clearing Union. At all times, the balances maintained in the ACU Dollar, ACU Euro and ACU Yen accounts should be commensurate with requirements of the normal business. With effect from July 01, 2016, all eligible current account transactions including trade transactions in “Euro” are permitted to be settled outside the ACU mechanism until further notice. ii) AD Category-l banks are permitted to settle commercial and other eligible transactions in much the same manner as other normal foreign exchange transactions.

6. HOW DO BANKS ASSESS THEIR LEVEL OF TECHNOLOGY AND PROCESS MATURITY TO IMPLEMENT ADF? +

Banks can refer to the methodology given in the Approach Paper to assess People, Process and Technology maturity and place themselves in a specific cluster which in turn would help in determining the time lines for implementation of ADF.

6. When will one's complaint not be considered by the Ombudsman ? +

One's complaint will not be considered under the following circumstances :If the NBFC against whom the complaint is registered, is not covered under the Scheme.If one has not approached the NBFC concerned in the first instance for redressal of the grievance.If the subject matter of the complaint is not pertaining to the grounds of complaint specified under Clause 8 of the Scheme.If one has not made the complaint within one year from the date of receipt of reply from the NBFC; or if no reply is received, and the complaint to NBFC Ombudsman is made after the lapse of more than one year and one month from the date of complaint to the NBFC.If the subject matter of the complaint is pending for disposal/ has already been dealt with at any other forum like court of law, consumer court etc.If the complaint is for the same subject matter that was settled through the office of the NBFC Ombudsman in any previous proceedings.If the complaint is frivolous or vexatious.

6. Banks grant fixed rate loans to long term projects where initial debt facility consists of loan for a medium term say 5 to 7 years. These loans are then refinanced after the specified period. Will these types of loans be permitted under MCLR system? +

Banks can grant fixed rate loans to long term projects wherein the interest rate are fixed till the loan is due for refinancing. The loan, at the time of refinancing, will be treated as a fresh fixed rate loan with a maturity period equal to the period upto the next date of refinancing. Such fixed rate loans will fall under the directions contained in Section 13(d)(v) of Reserve Bank of India (Interest Rate on Advances) Directions, 2016.

6. Is the facility available to Overseas Citizens of India (OCI)/Persons of Indian Origin (PIO) ? +

No, the facility is not available to people who are not Indian citizens.

6. Query Whether the ‘Basic Savings Bank Deposit Account’ can be opened by only certain types of individuals like poor and weaker sections of the population? +

Response

No. The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches.

Q.6. Can 10 or more unrelated individuals act as promoters each holding not more than 10 per cent shares in NOFHC? +

6. Is there a limit on deposit of ₹2000 banknotes into a bank account? +

Deposit into bank accounts can be made without restrictions subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory / regulatory requirements.

6. Can I receive the remittances in my account with any of the participating banks in India even if my UPI ID is not registered with the same bank? +

Presently, the UPI ID registered with the same bank where account is held can only be used.

Q6. Can a resident individual remit margin overseas under Liberalised Remittance Scheme (LRS) for undertaking online forex trading? +

Answer: No. Remittances under LRS can be made only for permissible current and capital account transactions. All other transactions which are otherwise not permissible under FEMA and those in the nature of remittance for margins or margin calls to overseas exchanges / overseas counterparty are not allowed under the Scheme.

6. How will the tenor of the swap be arrived at ? +

The tenor of the swap will be for three years or more in line with the tenor of the underlying FCNR (B) deposits. Bank desirous of availing the swap window may approach RBI for the swap, indicating the tenor in number of days.

6. What are various methods of using a card at a PoS terminal? +

Ans: A card can be dipped (Chip based card), tapped (Contactless Near Field Communication {NFC} Card) or swiped (Magnetic-Stripe card) at a PoS terminal.

Q 6. Is the AD required to check permissibility of remittances based on nature of transaction or allow the same based on remitters declaration? +

Ans. AD will be guided by the nature of transaction as declared by the remitter in Form A2 and will thereafter certify that the remittance is in conformity with the instructions issued by the Reserve Bank in this regard from time to time. However, the ultimate responsibility is of the remitter to ensure compliance to the extant FEMA rules/regulations.

6. What are the types of accounts for which LEI should be recorded ? +

Ans. LEI shall be recorded for all non-individual NEFT / RTGS messages / transactions. An indicative list of entity types is given by LEIL at https://www.ccilindia-lei.co.in/Documents/FAQs.pdf.

Q.6. Whether credit facility can be provided in foreign currency for PO? +

Ans. Yes, the AD bank should ensure compliance to the extant instructions issued by the Department of Banking Regulation.

Q 6: Is it mandatory to include insurance charges in the calculation of APR? +

Ans: The insurance charges shall be included in the computation of APR only for the insurance which is linked/integrated in loan products as these charges are intrinsic to the nature of such digital loans.

Q6: In case of transfer of pools of loans in compliance with clause 36 of the MD-TLE, can prudential norms be applied at the pool level?

Q.6 Whether the circular intends to cover only those loans which are linked to External Benchmark or the loans linked to Internal Benchmarks (Base Rate/MCLR/BPLR) also?

Ans: It is clarified that the circular covers all equated installment based personal loans, irrespective of whether they are linked to an external benchmark or an internal benchmark.

6. How is Digital Rupee created and issued?

Ans: Creation and issuance of retail e₹ is identical to the arrangement for issuance of paper currency i.e., RBI creates e₹ and issues them to banks and non-banks electronically. Banks and non-banks, thereafter, are responsible for facilitating onboarding and opening e₹ wallets for their customers on their mobile phones. The e₹ issuance, distribution, and usage within the retail segment (for members of the public) is live in pilot mode with effect from December 1, 2022. The users and merchants of identified pilot banks and non-banks across the country can use e₹.

Q6. What is an SNRR account? How is it different from a NRO account?

Answer: A person resident outside India, having business interest in India, may open a Special Non-Resident Rupee Account (SNRR account), with an authorised dealer in India or its branch outside India for the purpose of putting through permissible current and capital account transactions with a person resident in India in accordance with the Act, rules and regulations framed under the Act, and for putting through any transaction with a person resident outside India.

The differences between SNRR account and NRO account are:

Feature	SNRR Account	NRO Account
Who can open	Any person resident outside India, having a business interest in India for putting through bona fide transactions in rupees. Opening of SNRR accounts by Pakistan and Bangladesh nationals and entities incorporated in Pakistan and Bangladesh requires prior approval of Reserve Bank.	Any person resident outside India for putting through bonafide transactions in rupees. Individuals/ entities of Pakistan nationality/ origin and entities of Bangladesh origin require the prior approval of the Reserve Bank of India. However, a citizen of Bangladesh/Pakistan belonging to minority communities in those countries i.e. Hindus, Sikhs, Buddhists, Jains, Parsis and Christians residing in India and who has been granted LTV or whose application for LTV is under consideration, can open one NRO account with an AD bank subject to the conditions mentioned in Notification No. FEMA 5(R)/2016-RB dated April 01, 2016, as updated from time to time.
Type of Account	Non-interest bearing	Current, Savings, Recurring or Fixed Deposit; Rate of interest – as per guidelines issued by Department of Regulation.
Permissible Transactions	Debits and credits specific/ incidental to the business proposed to be done by the account holder	Credits: Inward remittances, legitimate dues in India, transfers from other NRO accounts and any amount received in accordance with the Rules/Regulations/Directions under FEMA, 1999. Debits: Local payments, transfer to other NRO accounts, remittance of current income, settlement of charges on International Credit Cards.
Tenure	Concurrent to the tenure of the contract / period of operation / the business of the account holder.	No such restrictions on tenure.
Repatriability	Repatriable	Not repatriable except for current income; and remittances by NRIs/ PIOs up to USD 1 million per financial year in accordance with the provisions of FEMA 13(R).

6. Query: What changes have been carried out in the Scheme from March 26, 2025 ?

Response: Government of India, vide its press release ID 2115009 dated March 25, 2025 has discontinued the Medium and Long Term Government Deposit (MLTGD) components of GMS. Accordingly, the mobilization of a MLTGD, including renewal, has been discontinued with effect from March 26, 2025. There is no change in the provisions pertaining to STBD under GMS.

6. Can a pensioner withdraw pension from his/ her account when he/she is not able to sign or put thumb/toe impression or unable to be present in the bank?

Yes, instructions have been issued by RBI to pension disbursing banks to allow withdrawal of pension by following certain procedures which are given below:

Withdrawal of pension by old/ sick/ disabled/ incapacitated pensioners

(i) In order to take care of problems/ difficulties faced by sick and disabled pensioners in withdrawal of pension / family pension from the banks, agency banks may categorise such pensioners as under:

(a) Pensioner who is too ill to sign a cheque / unable to be physically present in the bank.

(b) Pensioner who is not only unable to be physically present in the bank but also not even able to put his/her thumb impression on the cheque/ withdrawal form due to certain physical defect / incapacity.

(ii) With a view to enabling such old/sick/incapacitated pensioners to operate their accounts, banks may follow the procedure as under:

(a) Wherever thumb or toe impression of the old/sick pensioner is obtained, it should be identified by two independent witnesses known to the bank, one of whom should be a responsible bank official.

(b) Where the pensioner cannot even put his/her thumb/ toe impression and also would not be able to be physically present in the bank, a mark can be obtained on the cheque/withdrawal form, which should be identified by two independent witnesses, one of whom should be a responsible bank official.

The responsible bank official has to be from the same bank, preferably from the same branch, where the pensioner is having his/her pension account.

Agency banks have been asked to display the instructions issued in this regard on their notice board at the branches so that sick and disabled pensioners can make full use of these facilities.

7. How the payment of Dearness Relief at revised rate is to be paid to the pensioners?

The pension paying agency banks have to revise the Dearness Relief based on the copies of government orders provided by government to them through post, fax, e-mails or by accessing the information from the website of the concerned governments, and authorize their pension paying branches to make payments to the pensioners immediately.

Q 6. Whether banks can levy penalty in case of partial premature withdrawal?

Ans. Provisions related to penalty are contained in paragraph 15 of these Directions. The detailed procedure for premature withdrawal including partial premature withdrawal are determined by the banks in terms of their comprehensive Board approved policy.

6. What are the advantages/ benefits of the RB-IOS, 2021 / AGR Framework? +

RB-IOS, 2021 has simplified the processes, centralized the receipt of physical and email complaints, brought more REs under its ambit, done away with limited grounds of complaints and difference jurisdictions of Ombudsmen and now all complaints involving deficiency in service are covered under RB-IOS. Complainants can lodge their complaints against an RE on the 24x7 online CMS portal at https://cms.rbi.org.in/ or send their complaint in email/physical form to CRPC (refer Question 16). Salient benefits for the complainant arising from the RB-IOS with upgraded CMS portal are as under:

Simplification in the process of filing the complaint on CMS portal;
A complaint can be filed on CMS portal/ CRPC from anywhere in the country irrespective of the address of the complainant, RE or branch involved;
One address and one email for lodging of physical/ email complaints from anywhere in the country;
Automatic acknowledgement to the complainant on registration of online complaint;
Facility for real-time tracking of the status of complaint;
Convenience from ‘One Nation One Ombudsman’ approach;
Facility for online submission of additional documents on the CMS itself;
Detailed letter intimating decision/ closure of complaint;
Facility for online and voluntary feedback submission by the complainant regarding redress provided by RBI.

Q.6 Whether filing / reporting of Monthly Certificate on Frauds, Monthly Central Fraud Registry (CFR) Certificate and Flash Report by banks shall continue?

Ans: In terms of revised Master Directions, banks are not required to submit such certificates / Flash Reports to RBI.

6. (b) With respect to para 3(iv) of the circular, whether the structure of penal charges in the same category of loan/product shall be uniform for all borrowers irrespective of their constitution (individual & non-individual)?

Sr.No.7: Regarding the ‘T+1’ day mandated as per para 9(ii) of the Directions, does the ‘day’ refer to a bank working day?

Ans: Yes, since all fund transfers must be conducted through and from bank accounts, ‘T+1’ day shall be considered as ‘T+1’ bank working day.

Q.7. Where should one apply for compounding? +

Ans. A contravener may submit compounding application form along with relevant documents/ Annexures to the Reserve Bank as provided in paragraphs 2.1, 2.2, 2.3 and 2.4 of Directions – Compounding of contraventions under FEMA, 1999.

7. Which entities are required to participate in the ITES survey?

Ans.: Companies/LLPs/Partnership firms in the business of export of computer software & information technology enabled services are required to participate in this survey.

7. What is the timeline for the submission in MF Survey by Asset Management Companies (AMCs) ? +

Ans.: Asset Management companies (AMCs) are required to submit annual return on Foreign Liabilities and Assets (FLA) through RBI’s online web-based portal ‘FLAIR’ (weblink: https://flair.rbi.org.in) by July 15 of every year.

7. Whether banks can refuse premature withdrawal of term deposits ? +

Banks may not normally refuse premature withdrawal of term deposits of individuals and Hindu Undivided families, irrespective of the size of the deposit. However, the bank at its discretion, may disallow premature withdrawal of large deposits held by entities other than individuals and Hindu Undivided Families. Banks should notify such depositors of its policy of disallowing premature withdrawals in advance i.e. at the time of acceptance of deposits

7. Is the Scheme available for auctions of Treasury Bills? +

No. The scheme is not applicable for Treasury Bills.How to participate in the auction ?

7. When will one's complaint not be considered by the Ombudsman ? +

One's complaint will not be considered if:One has not approached his bank for redressal of his grievance first.One has not made the complaint within one year from the date of receipt of the reply of the bank or if no reply is received, and the complaint to Banking Ombudsman is made after the lapse of more than one year and one month from the date of complaint made to the bank.The subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc.Frivolous or vexatious complaints.The institution complained against is not covered under the scheme.The subject matter of the complaint is not pertaining to the grounds of complaint specified under Clause 8 of the Banking Ombudsman Scheme. If the complaint is for the same subject matter that was settled through the office of the Banking Ombudsman in any previous proceedings.

7. How does a beneficiary participate in ECS Credit Scheme? +

The beneficiary has to furnish a mandate to the user institution giving consent to avail the ECS Credit facility. The mandate contains details of his / her bank branch, account particulars and authorises the user institution to afford credit to his / her account with the destination bank branch.

7. What is “One Nation, One Grid” project? +

Under the One Nation, One Grid project, three CTS grids explained above are to be merged to create a single grid for the nation. Single grid shall benefit customers with faster realisation of outstation cheques. It shall also benefit banks with easier fund management, streamlining of infrastructure and overall efficiency improvements.

7. How many bids can an investor make under this scheme? +

An investor can make only a single bid through an aggregator under this scheme in each specified auction. The aggregator or facilitator through whom the investor bids, will obtain and keep on record an undertaking to the effect that the investor is not making a bid through any other aggregator or facilitator.

7. Are agency banks compensated for conduct of Central/State Government banking? +

The accredited banks are paid remuneration by RBI for conduct of State/Central Government transactions. Such remuneration is called Agency Commission. The rates of agency commission applicable at present (from July 1, 2019) are as under:

No.		Type of Transaction	Unit	Revised Rate
a.	(i)	Receipts – Physical mode	Per transaction	₹ 40/-
a.	(ii)	Receipts – e-mode *	Per transaction	₹ 9/-
b.	(i)	Payments – Pension	Per transaction	₹ 75/-
b.	(ii)	Payments – Other than pension	Per ₹ 100 turnover	6.5 paise
*In this context, it may please be noted that ‘Receipts – e-mode’ indicated against Sl. No. a(ii) in the above table would refer to those transactions involving remittance of funds from the remitter’s bank account through internet banking as well as all such transactions which do not involve physical receipt of cash / instruments.

¹ A person resident outside India may hold, own, transfer or invest in Indian currency, security or any immovable property situated in India if such currency, security or property was acquired, held or owned by such person when he was resident in India or inherited from a person who was resident in India.

² Section 2(v): "person resident in India" means-

(i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include-

(A) a person who has gone out of India or who stays outside India, in either case-

for or on taking up employment outside India, or
for carrying on outside India a business or vocation outside India, or
for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;

(B) a person who has come to or stays in India, in either case, otherwise than-

for or on taking up employment in India, or
for carrying on in India a business or vocation in India, or
for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;

7. Is NOF required to be maintained on an ongoing basis? +

Yes. The prescribed minimum NOF needs to be maintained on an ongoing basis.

7. Is there any limit on funds / amount to be remitted through NEFT system? +

Ans: No, there is no limit imposed by the RBI for funds transfer through NEFT system. However, a member bank may place amount limits based on its own risk perception with the approval of its Board.

7. How much foreign exchange can one buy when going for tourism to a country outside India? +

In connection with private visits abroad, viz., for tourism purposes, etc., foreign exchange up to USD10,000, in any one calendar year may be obtained from an authorised dealer. The ceiling of USD10,000 is applicable in aggregate and foreign exchange may be obtained for one or more than one visit provided the aggregate foreign exchange availed of in one calendar year does not exceed the prescribed ceiling of US$10,000 {The facility was earlier called B.T.Q or F.T.S.}. This limit of USD10,000 can be availed of by a person along with foreign exchange for travel abroad for any purpose, including for employment or immigration or studies. However, no foreign exchange is available for visit to Nepal and/or Bhutan for any purpose.

Q.7 Whether DLG is permitted for loans arranged on the NBFC-P2P platforms?

Ans: No. DLG is not permitted on loans arranged on NBFC-P2P platforms.

7. How does the remitting customer in India know about the branches of NSBL and the outlets of Prabhu Money Transfer? +

Ans: The location and addresses of NSBL and Prabhu Money Transfer are available in the Procedural Guidelines for Indo-Nepal Remittance Facility Scheme as also with the NEFT-enabled branches in India. The Procedural Guidelines for Indo-Nepal Remittance Facility Scheme are available on the website of RBI at /documents/87730/39016390/84489.pdf.

7. In case of non-fund facilities such as Letter of Credit, guarantee, etc., should the LEI validation be done at the issuance stage itself? +

Ans. In case of non-fund facilities, the AD banks need to ensure compliance with LEI requirements at the issuance stage itself.

7. Are all the above forms of Government securities issued by RBI as well as Agency banks? +

Government securities in the form of GPN, bearer bond, stock and BLA are issued by RBI, while the Agency Banks are presently eligible to issue Relief/Savings Bonds in the form of BLA only.

7. Is the Resolution Framework applicable to all exposures, including investment exposures that are credit substitutes like corporate bonds, commercial papers etc.? +

The Resolution Framework may be invoked for resolution of all exposures of lending institutions to eligible borrowers, including investment exposures. However, the Resolution Framework is without prejudice to all applicable guidelines issued by the relevant financial sector regulators and other Departments of the RBI in respect of any particular exposure.

7. Can tokenisation be enabled through a smart watch or such other devices? +

Ans. The feature of tokenisation is available on consumer devices like mobile phones, tablets, laptops, desktops, wearables (wrist watches, bands, etc.), Internet of Things (IoT) devices, etc.

7. Will a receipt be provided for the cash withdrawn at PoS terminal? +

Ans. Yes. The merchant is required to provide a printed receipt generated by the PoS terminal. In case the facility is availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.

7. Is it required to capture counterparty LEI information i.e. Remitter in case of inward and Beneficiary in outward transactions by banks ? +

Ans. The remitting bank should ensure that LEI information for both sender and beneficiary is captured. Any inward transaction with inappropriate or no LEI should not be rejected by beneficiary bank. However, post-credit, both remitting and beneficiary banks should maintain valid and verified LEI information for all payment transactions of ₹50 crore and above.

7. What is the procedure for filing the complaint before the Ombudsman ? +

One can file a complaint with the Ombudsman by writing on a plain paper and sending it to the concerned office of the Ombudsman by post/fax/hand delivery. One can also file it by email to the Ombudsman for Digital Transactions. (For contact details please click here) A complaint form along with the scheme is also available on RBI's website, though, it is not mandatory to use this format.

(vii) Whether borrowers under restructuring will be covered in the framework? Whether additional credit facilities extended during restructuring of stressed borrowers will be included in computing the ASCL? +

Ans: In cases of accounts with ASCL above the cut-off where S4A is implemented, both the sustainable and unsustainable debt (Parts A & B) should be counted towards calculating ASCL.

Restructured accounts where cut-off ASCL is achieved/likely to be achieved due to additional finance under the restructuring package under JLF and other RBI frameworks, should not be subjected to disincentive mechanism for the incremental exposure.

7. What about processing charges / service charges for RTGS transactions? +

Ans. With effect from July 01, 2019, RBI has waived the processing charges levied by it for RTGS transactions. Banks may pass on the benefit to its customers. With a view to rationalise the service charges levied by banks for offering funds transfer through RTGS system, a broad framework of charges has been mandated as under: a) Inward transactions – Free, no charge to be levied. b) Outward transactions – ₹ 2,00,000/- to 5,00,000/-: not exceeding ₹ 25/- (exclusive of tax, if any) Above ₹ 5,00,000/-: not exceeding ₹ 50 (exclusive of tax, if any) Banks may decide to charge a lower rate but cannot charge more than the rates prescribed by RBI.

7. Is the Resolution Framework applicable to all exposures, including investment exposures that are credit substitutes like corporate bonds, commercial papers etc.? +

Q7: Can all cooperative banks sell their stressed assets to Asset Reconstruction Companies (ARC) against Security Receipts (SRs)? +

Ans: In terms of MD-TLE dated September 24, 2021, Primary (Urban) Co-operative Banks (PUCBs), State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs) have been recognised as eligible transferors of stressed loans. The relevant provisions of circular “Guidelines on Sale of Financial Assets to Securitisation Company/Reconstruction Company (SC/RC) by Multi State Urban Cooperative Banks’ dated March 28, 2014, in terms of which only multistate cooperative banks could sell stressed assets to ARCs have been repealed. Accordingly, all cooperative banks are permitted to transfer stressed assets to ARCs in compliance with the provisions of the MD-TLE and other extant regulatory instructions.

7. Whether a credit card-issuer can levy interest on the unpaid taxes/levies/charges?

Response: No, card-issuers shall not capitalize i.e., levy interest or any other charges, on the unpaid taxes/levies/charges. As the provision contained under para 9(b)(ii) of the MD became effective from October 01, 2022, card-issuers shall not capitalize unpaid taxes/levies/charges that have been billed from October 01, 2022.

7. What is the procedure to claim from DEA Fund, if a bank is under liquidation?

ANS:

In the case of a bank under liquidation, the depositor has to approach the Liquidator of the bank for claim and the Liquidator would settle the claim as per the following procedure

Scenario 1: Claim on deposits covered by DICGC - If the deposits of a customer/depositor were covered by DICGC insurance at the time of transfer to the DEA Fund, then the Liquidator can claim an amount equivalent to what could have been claimed from DICGC (i.e., currently up to ₹5 lakh including accrued interest, if applicable, in same right and capacity^[1]), and then make payment to the depositor. If the above deposit amount is more than the insurance cover of DICGC, then the Liquidator shall claim the amount in excess of DICGC insurance cover (i.e., over and above the ₹5 lakh) only on reimbursement basis. (i.e., the Liquidator will pay such amount to the depositor subject to meeting all the applicable requirements and thereafter submit a claim to DEA Fund for reimbursement)

Illustration 1: A customer/depositor had a deposit claim of ₹4 lakh in a bank (including accrued interest), which is now under liquidation. The deposit was insured by DICGC at the time when the said unclaimed deposit was transferred to the DEA Fund. Now, if he/she claims the same during the liquidation process, the following steps shall be followed:

The customer/depositor/ legal heir submits a claim for his/her deposit to the Liquidator.
Liquidator raises an equivalent claim of ₹4 lakh from DEA Fund along with necessary supporting documents.
DEA Fund will pay an amount equal to the insured deposit to the Liquidator. (In this case, i.e., ₹4 lakh, since DICGC insurance cover is available up to ₹5 lakh).
The Liquidator, after receiving the amount from the DEA Fund, will pay to the customer/depositor i.e., ₹4 lakh.

Illustration 2: A customer/depositor had a deposit claim of ₹6 lakh in a bank (including accrued interest), which is now under liquidation. The deposit was insured by DICGC at the time when the unclaimed deposit of his/her was transferred to the DEA Fund. Now, if he/she claims the same during the liquidation process, the following steps shall be followed:

The customer/depositor/legal heir submits a claim for his/her deposit to the Liquidator.
Liquidator raises an equivalent claim of ₹6 lakh from DEA Fund, along with necessary supporting documents.
DEA Fund will pay only an amount equal to the insured deposit to the Liquidator. (In this case, i.e., ₹5 lakh, since DICGC insurance cover is available up to ₹5 lakh).
For the remaining amount (i.e., ₹1 lakh) the Liquidator shall make the payment to depositor subject to meeting all the applicable requirements and then claim for the same from DEA Fund by way of reimbursement.

Scenario 2: Claim on deposits not covered by DICGC: In respect of deposits not covered by DICGC^[2] at the time of transfer to DEA Fund, the payment to the Liquidator by DEA Fund shall be made only on reimbursement basis (i.e., the Liquidator can only seek as a reimbursement after settling the amount to the customer/ depositor) as mentioned in Illustration 2(iv) above.

[1]DICGC - For Depositors - A Guide to Deposit Insurance

[2] As per Sec 2(g) of DICGC Act – viz. foreign Government, the Central Government, a State Government, a corresponding new bank, Regional Rural Bank or a banking company or a co-operative bank)

7. Does the "State" column of the Annex pertain to the branch or that of the borrower?

Ans:The "State" column of the Annex to the circular corresponds to that of the branch, as the borrower's address column inherently captures the State to which the borrower belongs.

7. If penal charges are not paid, whether fresh penal charges can be levied on the earlier outstanding amount of penal charges?

No. Additional penal charges cannot be levied on the earlier outstanding amount of penal charges.

7. What are the permissible credits into this account? +

Ans. i) Inward remittance through normal banking channels, other than remittances received on account of foreign currency loan or investment received from abroad or received for meeting specific obligations by the account holder;

ii) Payments received in foreign exchange by a 100 per cent Export Oriented Unit or a unit in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park for supply of goods to similar such units or to a unit in Domestic Tariff Area;

iii) Payments received in foreign exchange by a unit in the Domestic Tariff Area for supply of goods to a unit in the Special Economic Zone (SEZ);

iv) Payment received by an exporter from an account maintained with an authorised dealer for the purpose of counter trade. (Counter trade is an arrangement involving adjustment of value of goods imported into India against value of goods exported from India in terms of the Reserve Bank guidelines);

v) Advance remittance received by an exporter towards export of goods or services;

vi) Payment received for export of goods and services from India, out of funds representing repayment of State Credit in U.S. Dollar held in the account of Bank for Foreign Economic Affairs, Moscow, with an authorised dealer in India;

vii) Professional earnings including directors’ fee, consultancy fee, lecture fee, honorarium and similar other earnings received by a professional by rendering services in his individual capacity;

viii) Re-credit of unutilised foreign currency earlier withdrawn from the account;

ix) Amount representing repayment by the account holder's importer customer in respect of trade related loan/advances granted by the exporter (subject to compliance with the extant guidelines) holding EEFC account; and

x) The disinvestment proceeds received by the resident account holder on conversion of shares held by him to ADRs/GDRs under the Sponsored ADR/GDR Scheme approved by the Foreign Investment Promotion Board of the Government of India.

7. Is there any purpose for which going abroad requires prior approval from the Reserve Bank or Govt. of India?
+

Dance troupes, artistes, etc., who wish to undertake cultural tours abroad, should obtain prior approval from the Ministry of Human Resources Development, Government of India, New Delhi.

Q.7 What are the prohibited activities for overseas investment ? +

Real estate sector and Banking are the prohibited sectors for overseas investment. However, Indian banks operating in India can set up JV/WOS abroad provided they obtain clearance under the Banking Regulation Act 1949.

Is there any ceiling on advertisements in Print Media abroad or on Internet? +

No. Remittance of the actual cost of advertisement in Print Media abroad or on Internet is permitted by authorised dealers, subject to payment of applicable taxes, if any.

7. What is a “Payment Instruction”? +

Ans. “Payment Instruction” is defined as any instrument, authorization or order in any form, including by electronic means, to effect a payment by a person to a participant in a payment system or from one participant in such a system to another participant in that system.

The payment instruction can be communicated either manually i.e. through an instrument like a cheque draft, payment order etc. or through electronic means, so that a payment can be made by either a person to the participant in such a system or between two participants.

7. Can the customer choose the mode for collecting USD cheques ? +

Yes. Banks have been advised to make their USD Cheque Collection process transparent. Various modes of collection along with the timeframe and charges for collection shall be covered therein. Customers could request for any of the collection modes specified in the USD Cheque Collection Policy based on need, convenience and cost involved.

7. WHAT IS THE MEANING OF ‘DIRECTLY FROM SOURCE SYSTEM WITHOUT ANY MANUAL INTERVENTION’ IN THE CONTEXT OF ADF? +

‘Direct from the source system without any manual intervention’ implies that whatever data and information is available in CBS and other IT systems of the banks would be submitted to the regulator without any manual aggregation, conversion or filling of data. Activities like collecting or collating of data from diverse source systems and compiling them into RBI prescribed formats manually would fall within the meaning of manual intervention.

7. Apart from cheques what are the other means of transfer of funds? +

Reserve Bank of India (RBI) has authorised various types of payment systems to enable transfer of funds. You may refer to the following link on RBI website to get overview of various payment systems available in India:

/en/web/rbi/payment-and-settlements

Q7. Will the NBFCs/IFCs need prior permission from Reserve Bank for sponsoring IDFs? +

Ans : Yes NBFCs and NBFC-IFCs need to take prior approval from the Reserve Bank for sponsoring IDFs.

7. Does RBI have any relationship with GAHs? +

While RBI will facilitate the trading platform for buying and selling of G-Secs, RBI shall not have any relationship, direct or otherwise, with any of the GAH granted access to NDS-OM Web. Further, the RBI has no role in any possible disputes between GAH and PM.

Q.7. Can NBFC-Factors undertake Import and Export Factoring ? +

Ans : Yes, however, such NBFC-Factors will need to obtain the necessary authorization from the Foreign Exchange Department of the Bank under FEMA 1999 as amended and adhere to all the FEMA regulations in this regard.

7. What happens when an application is transferred to another office / department ? +

The application is automatically inwarded in the receiving office/ department and marked to the administrator of that department.

Q.7. Is there any provision for grant of composite loans by banks ? +

A composite loan limit of ₹1 crore can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window in terms of our Master Direction on Lending to the MSME sector dated July 24, 2017. All scheduled commercial banks were advised vide our circular RPCD.SME&NFS. BC.No.102/06.04.01/2008-09 dated May 4, 2009 that the banks which have sanctioned term loan singly or jointly must also sanction working capital (WC) limit singly (or jointly, in the ratio of term loan) to avoid delay in commencement of commercial production thereby ensuring that there are no cases where term loan has been sanctioned and working capital facilities are yet to be sanctioned.

7. What is the formula for interpolation of daily reference WPI? +

For calculating the index ratio for a specific date, daily reference WPI values would be linearly interpolated using ‘Ref WPI’ for the first day of the calendar month and the first day of the following calendar month.
The formula for computing the reference WPI for a particular day is as under:

[Ref WPI_M = Ref WPI for the first day of the calendar month in which Date falls, Ref WPI_M+1 = Ref WPI for the first day of the calendar month following the settlement date, D = Number of days in month (e.g. 31 days in August), and t= settlement date (e.g. August 6)]
An example of daily reference WPI computed through interpolation is furnished below.

Date	Ref WPI (Given)	T-1	D	Ref WPI (Interpolation)
1-May-13	168.8
2-May-13		1	31	168.85
3-May-13		2	31	168.90
4-May-13		3	31	168.95
5-May-13		4	31	168.99
6-May-13		5	31	169.04
7-May-13		6	31	169.09
8-May-13		7	31	169.14
9-May-13		8	31	169.19
10-May-13		9	31	169.24
11-May-13		10	31	169.28
12-May-13		11	31	169.33
13-May-13		12	31	169.38
14-May-13		13	31	169.43
15-May-13		14	31	169.48
16-May-13		15	31	169.53
17-May-13		16	31	169.57
18-May-13		17	31	169.62
19-May-13		18	31	169.67
20-May-13		19	31	169.72
21-May-13		20	31	169.77
22-May-13		21	31	169.82
23-May-13		22	31	169.86
24-May-13		23	31	169.91
25-May-13		24	31	169.96
26-May-13		25	31	170.01
27-May-13		26	31	170.06
28-May-13		27	31	170.11
29-May-13		28	31	170.15
30-May-13		29	31	170.20
31-May-13		30	31	170.25
1-June-13	170.3

7. Are the deposits raised under the above framework covered by Deposit Insurance and Credit Guarantee Corporation (DICGC)?

The deposits raised under the framework are covered by DICGC in accordance with the Deposit Insurance and Credit Guarantee Corporation Act, 1961 and the regulations framed thereunder, as amended from time to time.

7. What would be the SLR treatment for the mark-to-market appreciation in the IIB. Would an increased principal due to MTM be eligible for increase in SLR for the Bank holding the IIB. +

Ans: Valuation methodology for IIBs has been explained above. Other than that no change is considered.

Q.7 Can Authorized Dealer Category-l banks open ACU Dollar, ACU Euro and ACU Yen Accounts in the name of all banks in all member countries including Pakistan without the prior approval of Reserve Bank of India? +

Ans. Yes, this is permissible. With effect from July 01, 2016, all eligible current account transactions including trade transactions in “Euro” are permitted to be settled outside the ACU mechanism until further notice.

7. Can deposit insurance be increased by depositing funds into several different accounts all at the same bank ? +

All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks they would then be separately insured.

7. What are the Know-Your-Customer (KYC) norms? +

Permanent Account Number (PAN) is the KYC document for individuals depositing in the scheme. If a declarant does not hold PAN, he shall apply for PAN and provide the details of such PAN application along with acknowledgement number to the bank while making the application. On receipt of PAN, the details may be updated with the bank from which application was made.

Q.7. What is the procedure for acknowledgment? How would the sending branch know that the remitted amount has been credited to the beneficiary? +

Ans The receiving branch acknowledges every transaction it receives after crediting the beneficiary’s account. The acknowledgment particulars reach the remitting branch as an inward message on Day 3 of the EFT processing cycle. The remitting branch will, therefore, have precise information as to when the beneficiary’s account was credited.

7. সিস্টেম PPI বন্ধ করা কি? +

উত্তর. এই পিপিআইগুলি একটি অস্তিত্ব দ্বারা জারি করা হয় যাতে ঐ অস্তিত্ব থেকেই শুধু বস্তু ও পরিষেবা ক্রয় করা যেতে পারে এবং ক্যাশ টাকা উঠিয়ে নেওয়ার অনুমতি দেয় না। যেহেতু এই দলিলকে ব্যবহার করা যায় না পরিশোধ বা তৃতীয় পক্ষের পরিষেবার নিষ্পত্তির জন্য, সুতরাং জারি করা বা ব্যবহার করার ব্যবস্থা পরিশোধ ব্যবস্থা হিসেবে শ্রেনিভাগ করা হয় না, এবং এতে আরবিআই-এর অনুমোদন লাগে।

7. ব্যক্তির জন্য ব্যাংক দ্বারা বিএসবিডিএ খোলার জন্য বয়স, আয়, পরিমাণ প্রভৃতি শর্তে কোনো বিধিনিষেধ আছে কি? +

না। ব্যাংকগুলিকে পরামর্শ দেওয়া হয়েছে বিএসবিডিএ খোলার জন্য কোনো ব্যক্তির ওপর বয়স ও আয়ের শর্তে কোনো বিধিনিষেধ আরোপ না করতে।

7. একটি এটিএম বা ডব্লিউএলএ-তে লেনদেন করার জন্য কি কি পূর্বশর্ত আছে ? +

উত্তর. একটি এটিএম বা ডব্লিউএলএ-তে লেনদেন করার জন্য, গ্রাহকদের একটি বৈধ কার্ড থাকা প্রয়োজন এবং ব্যক্তিগত পরিচিত নম্বর (পিন) ।

7. What is a Factoring Unit (FU) ? +

Ans. A Factoring Unit (FU) is a standard nomenclature used in TReDS for invoice(s) or bill(s) of exchange. Each FU represents a confirmed obligation of the corporates or other buyers, including Government Departments and PSUs.

7. Can the payment system data be shared with overseas regulators? +

The data may be shared with the overseas regulator, if so required, depending upon the nature / origin of transaction with due approval of RBI.

Q 7: Is the Indian branch of foreign bank eligible to open Special Rupee Vostro Account of headquarter branch/any other branch situated in any foreign country?

Answer: Yes, provided Indian branch of foreign bank is an AD bank. This is subject to approval of Reserve Bank as in the case of other such accounts.

Disclaimer: These FAQs are issued by the Reserve Bank of India for information and general guidance purposes only. The Bank will not be held responsible for actions taken and/or decisions made on the basis of the same. For clarifications or interpretations, if any, one may be guided by the relevant circulars and notifications issued from time to time.

7. Which non-bank PSPs (other than central counterparty and retail payment system organisation) are eligible for direct access? +

Ans. Direct access to CPS for non-banks will be enabled in a phased manner. In the first phase, the following authorised non-bank PSPs will be provided access –

i. Prepaid Payment Instrument (PPI) Issuers,

ii. Card Networks and

iii. White Label ATM Operators.

Q7. Where can a resident person register complaints against unauthorised electronic trading platforms (ETPs) for forex transactions? +

Answer: Complaints regarding unauthorised ETPs for forex transaction may be filed on the National Cyber Crime Reporting Portal (https://cybercrime.gov.in). This portal is an initiative of Government of India to facilitate victims/complainants to report all types of cybercrime complaints online. Complaints reported to the portal are dealt by respective police authorities of States/ UTs based on the information provided by the complainants. Complaints may also be filed with Enforcement Directorate (ed-del-rev@nic.in) and respective police authorities of States/UTs.

7. What are Magnetic Stripe cards, EMV Chip & PIN cards and Contactless NFC cards? +

Ans: The EMV Chip & PIN card stores card data in a chip, while the data in magnetic stripe card is stored on the magnetic stripe present on the card. In a Contactless NFC card, the card is read by keeping the card near the card reader. The EMV Chip & PIN cards and Contactless NFC cards are considered to be safer when compared to Magnetic Stripe cards.

7. An example of cash flows/ compounding of principal for illustration purpose is as under: +

Fixed rate 1.5% per annum
Issue/ Coupon/ maturity date	Fixed rate	CPI	Inflation rate *	Interest rate (Compounding rate)	Principal
Issue/ Coupon/ maturity date	Fixed rate	CPI	Inflation rate *	Interest rate (Compounding rate)	Principal
I	II	III	IV	V=II+IV	VI=VI*V
25-Dec-13		150			5000
25-Jun-14	0.75	160	6.67	7.4	5371
25-Dec-14	0.75	166	3.75	4.5	5613
25-Jun-15	0.75	175	5.42	6.2	5959
25-Dec-15	0.75	185	5.71	6.5	6344
25-Jun-16	0.75	190	2.70	3.5	6563
25-Dec-16	0.75	200	5.26	6.0	6958
25-Jun-17	0.75	210	5.00	5.8	7358
25-Dec-17	0.75	218	3.81	4.6	7693
25-Jun-18	0.75	228	4.59	5.3	8104
25-Dec-18	0.75	235	3.07	3.8	8414
25-Jun-19	0.75	246	4.68	5.4	8870
25-Dec-19	0.75	255	3.66	4.4	9262
25-Jun-20	0.75	265	3.92	4.7	9694
25-Dec-20	0.75	280	5.66	6.4	10316
25-Jun-21	0.75	290	3.57	4.3	10761
25-Dec-21	0.75	305	5.17	5.9	11399
25-Jun-22	0.75	316	3.61	4.4	11895
25-Dec-22	0.75	330	4.43	5.2	12512
25-Jun-23	0.75	340	3.03	3.8	12985
25-Dec-23	0.75	355	4.41	5.2	13655
*Inflation rates are calculated on half yearly basis.

7. Is the facility available to resident Indians ? +

The facility is no longer available to Resident Indians as the grace period has expired on March 31, 2017 except for the confiscated specified banknotes as per the Specified Bank Notes (Deposit of Confiscated Notes) Rules 2017 notified by GoI on May 12, 2017.

¹As per the Footnote 13 of Annex 1 of the Circular.

²As defined in RBI Circular Ref. DBR.No.BP.BC.43/21.01.003/2018-19 dated June 03, 2019 on ‘Large Exposures Framework’

Q 7. Is there any time-frame for a traveller who has returned to India to surrender foreign exchange? +

Ans. On return from a foreign trip, travellers are required to surrender unspent foreign exchange held in the form of currency notes and travellers cheques within 180 days of return. However, they are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes or TCs for future use or credit to their Resident Foreign Currency (Domestic) [RFC (Domestic)] Accounts.

Q.7. Once the PO has been set up in India for executing a specific project in India under general permission, at times, the overseas entity is awarded another project by the same or a different project awarding entity. In view of the same, can maintaining of bank account at entity level, filing of AACs, complying with submission of closure documentations on completion of the project and maintaining of books of accounts at entity level be complied with at PO entity level instead of at specific project level? +

Ans. No

7. Is it necessary to pass on the benefit arising out of the swap to the depositor ? +

Banks would be free to price the deposit within the overall ceiling as per the extant guidelines issued by RBI (c.f. RBI Circular DBOD.Dir.BC. 38/13.03.00/2013-14 dated August 14, 2013).

Q 7. Is it mandatory for resident individuals to have Permanent Account Number (PAN) for sending outward remittances under the Scheme? +

Ans. Yes, it is mandatory for the resident individual to provide his/her Permanent Account Number (PAN) for all transactions under LRS made through Authorized Persons.

7. Where can investors get the application form? +

The application form will be provided by the issuing banks/SHCIL offices/designated Post Offices/agents. It can also be downloaded from the RBI’s website. Banks may also provide online application facility.

7. What is the procedure for filing the complaint before the NBFC Ombudsman ? +

One can file a complaint with the NBFC Ombudsman by writing on a plain paper and sending it to the concerned office of the NBFC Ombudsman by post/fax/hand delivery. One can also file it by email to the NBFC Ombudsman.

A complaint form along with the scheme is also available on RBI's website, though, it is not mandatory to use this format.

7. Will the interest rates on fixed rate loans (or fixed portion of hybrid loans) be based on the date of sanction or disbursement? +

The interest charged on fixed rate loans as well as the fixed portion of hybrid loans will be the interest rate mentioned in the sanction letter.

7. Query Whether there are any restrictions like age, income, amount etc criteria for opening BSBDA by banks for individuals? +

Response

No. Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA.

Q.7. Can 10 individual promoters holding not more than 10% shares each alone can also set up the NOFHC, as mentioned in 2C(ii)(b)? +

7. Is there an operational limit on the amount of ₹2000 banknotes that can be exchanged? +

Members of the public can exchange ₹2000 banknotes upto to a limit of ₹20,000/- at a time.

7. Is there any transaction limit for doing cross-border remittance transactions through the UPI-PayNow linkage? +

There is a daily transaction limit of ₹60,000 in a day (equivalent to around SGD 1,000) for undertaking cross-border remittance transactions through the UPI-PayNow linkage.

Q 7. Can expected income from an asset/ activity financed by a microfinance loan be included for estimation of household income? +

Ans. No.

Q7: Can all cooperative banks sell their stressed assets to Asset Reconstruction Companies (ARC) against Security Receipts (SRs)?

Q 7: Whether the flow of funds between the bank accounts of borrower and lender in a lending transaction can be controlled directly or indirectly by a third-party including LSP? +

Ans: No

Q.7 Whether the instructions in the circular allow REs to levy applicable charges for switching of loan from fixed interest rate to floating interest rate and vice versa?

Ans: Yes, as stated in paragraph 2 (iv) of the circular, RE can levy applicable charges for switching of loans from floating to fixed rate or vice versa and/ or any other service charges/ administrative costs incidental to the exercise of the switchover options and the same shall be transparently disclosed in the sanction letter and also, at the time of revision of such charges/ costs by the RE.

The applicable charges shall be as approved by the board of the RE and shall be displayed on their website as per extant instructions.

7. What do the e₹ pilots aim to achieve?

Ans: The e₹ pilots are a limited scale, controlled roll-out, to test the technology, architecture, scalability, application, features, use-cases and acceptance of e₹. The pilots aim to test the robustness of the entire process of e₹ creation, distribution, usage, etc.

Q 7. What are the deposits that foreign Diplomatic missions/ personnel and their family members in India can hold ? +

Answer: The following accounts are permitted:

Foreign diplomatic missions and diplomatic personnel and their family members in India may open rupee deposits with an AD Bank.
Diplomatic missions and diplomatic personnel can open special rupee accounts namely Diplomatic Bond Stores Account to facilitate purchases of bonded stocks from firms and companies who have been granted special facilities by customs authorities for import of stores into bond, subject to conditions. The funds in the account may be repatriated outside India without the approval of Reserve Bank.
Diplomatic missions, diplomatic personnel and non-diplomatic staff, who are the nationals of the concerned foreign countries and hold official passport of foreign embassies in India can open foreign currency accounts in India. The account may be held in the form of current or term deposit account, and in the case of diplomatic personnel and non-diplomatic staff, may also be held in the form of savings account Such accounts can be credited by way of inward remittances and transfers (which are collected in India as visa fees) from the rupee account of the diplomatic mission in India. Funds held in such account if converted in rupees shall not be converted back into foreign currency. The funds in the account may be repatriated outside India without the approval of Reserve Bank.

7. What is the status of the account held outside India on the demise of the account holder?

Answer: A resident nominee of an account held outside India has to close the account and bring back the proceeds to India through banking channels

Amendments to the Principal Regulations

1. Notification No. FEMA 10 (R)/(1)/2016-RB dated June 1, 2016

2. G.S.R. No.570(E) dated 01.06.2018

3. G.S.R. No.160(E) dated 27.02.2019

4. Notification No. FEMA 10(R)(2)/2019-RB dated February 27, 2019

5. Notification No. FEMA 10(R)(3)/2024-RB dated April 19, 2024

6. Notification No. FEMA 10(R)(5)/2025-RB dated January 15, 2025

7. Query: What will be the impact on existing deposits upon discontinuation of MLTGD from March 26, 2025 ?

Response: The existing MLTGD are not impacted and will continue to be governed by the extant provisions as contained in the Master Direction. These deposits shall run till maturity unless these are prematurely withdrawn (as per the provisions in para 2.2.2. (e), 2.2.2. (f) and 2.2.2. (g) of the Master Direction – Gold Monetization Scheme, 2015).

Q 7. Whether banks can open savings bank account in the name of Government Departments/ Government schemes?

Ans. In terms of paragraph 29.8 of these Directions, savings bank account can be opened in the name of only those Government Department/ Government Schemes given in Schedule-I of Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2025.

7. What is a Centralised Receipt and Processing Centre (CRPC)? +

Centralised Receipt and Processing Centre (CRPC) has been set up at RBI, Chandigarh for receiving complaints through physical mode (letter/post). The CRPC undertakes initial scrutiny and processing of these complaints, uploads them on CMS, which are then assigned to Offices of RBI Ombudsmen (ORBIOs) or CEPCs for redressal. Please refer to Question 15 and 16 for further details.

Q.8. Can an application for compounding be sent to the Reserve Bank pending fulfillment of certain obligations? +

Ans. No. All requisite approvals should be obtained, and compliances should be completed before seeking compounding of contravention. Compounding can be done only after all the necessary administrative action is complete as mentioned in Paragraph 4.2 of Directions – Compounding of contraventions under FEMA, 1999, Copies of approvals and other compliances should be enclosed along with the application.

8. How does an AMC report data / submit the FLA return to the RBI?

Ans.: The submission of Annual Return on FLA is mandatory under the Foreign Exchange Management Act (FEMA), 1999 [vide the RBI Circular: A.P. (DIR Series) Circular No. 45 dated March 15, 2011] for all Indian companies which have received foreign direct investment and/or have made direct investment abroad. Entities can submit the annual return on FLA through the online web-based portal having address https://flair.rbi.org.in.

All the steps for online web-based reporting of annual return on FLA, are provided in user manuals. Entity should read the following documents for further guidance:

(a) User manual on “FLA User Registration Form”.

(b) User manual on reporting of “Annual Return on FLA” for all sections for step-by-step procedure for filing the FLA return.

8. Whether banks can levy penalty for premature withdrawal ? +

Banks have freedom to determine their own penal rates of interest for premature withdrawal of term deposits.

8. What is the procedure for filing the complaint before the Banking Ombudsman ? +

One can file a complaint with the Banking Ombudsman simply by writing on a plain paper. One can also file it online at (“click here to lodge a complaint”) or by sending an email to the Banking Ombudsman. There is a form along with details of the scheme in our website. However, it is not mandatory to use this format.

8. What care should be taken by customers while writing cheques? +

There are three images of each cheque that are taken in CTS – front Gray Scale, front Black and White and back Black and White. Customers should use image friendly coloured ink to write cheques to facilitate clear image of written information. Further, customer should use permanent ink to prevent fraudulent alternation of contents later. However, Reserve Bank of India (RBI) has not prescribed specific ink colors to be used to writing cheques.

Customer should also be aware that cheques with alteration / modification are not accepted under CTS. No changes / corrections can be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), fresh cheque leaves should be used by customers. This would help banks in identifying and controlling fraudulent alterations.

8. Is there an application form? +

Yes. This is available on the RBI website. The aggregator or facilitator through whom the application is made will assist the investor to obtain the form.

8. What is RBI’s role in Goods and Service Tax regime? +

The Reserve Bank of India is the aggregator for accounting of all GST collections in the respective government accounts. Agency banks who collect the GST for challans generated by tax payers online on the GST portal report the collections for settlement to government accounts to RBI. RBI has also facilitated payment of GST by tax payers directly into government accounts at RBI by using NEFT / RTGS payment options provided in GST portal.

Q 8. Should foreign coins be surrendered to an Authorised Dealer on return from abroad? +

Ans. The residents can hold foreign coins without any limit.

8. How much foreign exchange is available to a person going abroad on employment? +

Person going abroad for employment can draw foreign exchange upto USD100,000 from any authorised dealer in India on the basis of self-declaration.

Q.8 Para 12.3 of guidelines require a declaration from DLG provider, certified by the statutory auditor. Whether the same is required to be certified by the statutory auditor of the RE or the DLG provider?

Ans: The declaration has to be certified by the statutory auditor of the DLG provider.

8. How does the remitter get back money if it is not delivered to the beneficiary? +

Ans: The amount of remittance will flow back to the originating bank branch in India through the NEFT system and the bank branch would then communicate to the remitter about return of the remittance. If the remittance was originated by debit to an account, the returned amount will be credited to that account. If the remittance was made by a walk-in customer through a cash deposit, the remitter has to produce evidence of proof of remittance (counterfoil of the remittance application form) for getting refund.

8. How can the eligible investors participate in the auctions ? +

Eligible investors cannot participate directly. They have to necessarily come through a Bank or Primary Dealer (PD) for auction.

8. WHETHER ANY DATA DEFINITION, REPORTING FORMAT, RATIONALISATION OF RETURNS ETC. HAS BEEN PRESCRIBED UNDER ADF PROJECT? +

No. It is clarified that requirement under ADF is restricted to ensuring that data as available in the banks’ source systems is submitted to Reserve Bank without any manual intervention. All returns, statement and reports prescribed by RBI to be submitted by banks fall under the ADF project.

8. Is it necessary for user institutions to collect the mandates from beneficiaries? +

Yes, in addition to the consent of the beneficiaries, the mandate also provides important information related to bank account details etc. which are useful for the user institution to transfer funds to the right accounts . A model mandate form has been prescribed for the purpose and is available in the ECS Credit Procedural Guidelines.