FAQ Page 1 - RBI - Reserve Bank of India
Content Type:
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
It is illegal for any person/ entity/ financial company to make a false claim of being regulated by the Reserve Bank to mislead the public to collect deposits and is liable for penal action under the Law. Information in this regard may be forwarded to the nearest office of the Reserve Bank and the Police.
Foreign Investment in India
Biennial survey on Foreign Collaboration in Indian Industry (FCS)
Some important definitions and concepts
Ans.: Indian company which has entered into an agreement with a foreign entity in terms of technology transfer, know-how transfer, use of patent, brand name etc, then such type of agreements are treated as Foreign Technical Collaborations (FTC).
Coordinated Portfolio Investment Survey – India
What to report under CPIS?
Ans: The portfolio investment assets are required to be reported on marked to market basis as at the end of the reference period, with the breakups into type of securities viz., equity securities, short-term debt securities (with and original maturity of up to one year) and long-term debt securities (with an original maturity of more than a year) and country of residence of issuer.
Indian Currency
B) Banknotes
The highest denomination note ever printed by the Reserve Bank of India was the ₹10000 note in 1938 which was demonetized in January 1946. The ₹10000 was again introduced in 1954. These notes were demonetized in 1978.
Core Investment Companies
B. Registration and related matters:
Ans: In such a case only C will be registered, provided C is not funding any of the other CICs either directly or indirectly. HCo as well as A and B would not require registration as they neither access public funds directly nor access public funds indirectly through C.
Housing Loans
Targeted Long Term Repo Operations (TLTROs)
FAQs pertaining to TLTRO 2.0
Ans: In terms of the press release 2237/2019-2020 dated April 17, 2020 notifying the TLTRO 2.0 scheme, at least 50 per cent of the total funds availed under the scheme has to be deployed in specified securities issued by small NBFCs of asset size of ₹ 500 crores and below, mid-sized NBFCs of asset size between ₹ 500 crores and ₹ 5000 crores and MFIs. The objective is to ease any liquidity stress and/or impediments to market access that these small and mid-sized entities might be facing. In order to incentivise banks’ investment in the specified securities of these entities, it has been decided that a bank can exclude the face value of such securities kept in the HTM category from computation of adjusted non-food bank credit (ANBC) for the purpose of determining priority sector targets/sub-targets. This exemption is only applicable to the funds availed under TLTRO 2.0.
FAQs on Non-Banking Financial Companies
Net owned fund
Domestic Deposits
I. Domestic Deposits
Savings bank account cannot be opened in the name of the Government Department/ Government Scheme, except in respect of deposits of Government organizations/ agencies listed below:
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Primary Co-operative Credit Society which is being financed by the bank.
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Khadi and Village Industries Boards.
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Agriculture Produce Market Committees.
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Societies registered under Societies Registration Act, 1860 or any other corresponding law in force in State or a Union Territory.
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Companies governed by the Companies Act, 1956 which have been licensed by the Central Government under Section 25 of the said Act, or under the corresponding provision in the Indian Companies Act, 1913 and permitted, not to add to their names the word “Limited” or the words “Private Limited”.
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Institutions other than those mentioned in clause (i) above and whose entire income is exempt from payment of income tax under Income-Tax Act, 1961.
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Government departments/ bodies/ agencies in respect of grants/ subsidies released for implementation of various programmes/ Schemes sponsored by Central Government/ State Governments subject to production of an authorisation from the respective Government departments to open savings bank accounts.
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Development of Women and Children in Rural Areas (DWCRA).
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Self-help Groups (SHGs), registered or unregistered, which are engaged in promoting savings habits among their members.
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Farmers’ Clubs – Vikas Volunteer Vahini (VVV).
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Page Last Updated on: December 10, 2022
