A. Earning Value :	Average Profit after tax (net of
	dividend on preference shares
	and extra ordinary items ) for
	the last three years		Capitalisation
		X	factor
	Number of equity shares

Hypothetically, the profit after tax for the last three	}	Rs. 100.00 lakhs,
financial years net of dividend on preference shares }		Rs. 120.00 lakhs
and net of extra ordinary items	} &	Rs. 140.00 lakhs
No. of equity shares of the company		10,00,000 shares
The investee company is a predominantly manufacturing
company and the capitalisation factor would be		: 8 per cent
The earning value will be worked out as under :

(100.00+120.00+140.00)		100
	X	---	= Rs.150/-
3 X 10,00,000		8

Yes, loss making banks can make donations upto Rs.5 lakhs only in a financial year.

You can reach us in three ways:

1. Toll free phone number: 1800 267 7955 (between 9 am to 7 pm on any working day).

2. E-mail id: support@rbiretaildirect.org.in

3. Raise a request on the Retail Direct portal.

For additional details on using the Retail Direct portal, you may refer to the User Manual in the Help section of the Retail Direct Portal.

The One Rupee notes issued under the Currency Ordinance, 1940 are legal tender and included in the expression Rupee coin for all the purposes of the Reserve Bank of India Act, 1934. Since the rupee coins issued by Government constitute the liabilities of the Government, one rupee Note is also liability of the Government of India.

A depositor wanting to place deposit with an NBFC must take the following precautions before placing deposits:

1. That the NBFC is registered with RBI and specifically authorized by the RBI to accept deposits. A list of deposit taking NBFCs entitled to accept deposits is available at www.rbi.org.in → Sitemap → NBFC List. The depositor should check the list of NBFCs permitted to accept public deposits and also check that it is not appearing in the list of companies prohibited from accepting deposits, which is available at www.rbi.org.in → Sitemap → NBFC List → NBFCs who have been issued prohibitory orders, winding up petitions filed and legal cases under Chapter IIIB, IIIC and others.

2. NBFCs have to prominently display the Certificate of Registration (CoR) issued by the Reserve Bank on its site. This certificate should also reflect that the NBFC has been specifically authorized by RBI to accept deposits. Depositors must scrutinize the certificate to ensure that the NBFC is authorized to accept deposits.

3. The maximum interest rate that an NBFC can pay to a depositor should not exceed 12.5%. The Reserve Bank keeps altering the interest rates depending on the macro-economic environment. The Reserve Bank publishes the change in the interest rates on www.rbi.org.in → Sitemap → NBFC List → FAQs.

4. The depositor must insist on a proper receipt for every amount of deposit placed with the company. The receipt should be duly signed by an officer authorized by the company and should state the date of the deposit, the name of the depositor, the amount in words and figures, rate of interest payable, maturity date and amount.

5. In the case of brokers/agents etc collecting public deposits on behalf of NBFCs, the depositors should satisfy themselves that the brokers/agents are duly authorized by the NBFC.

6. The depositor must bear in mind that public deposits are unsecured and Deposit Insurance facility is not available to depositors of NBFCs.

7. The Reserve Bank of India does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

No. The Reserve Bank does not guarantee repayment of deposits by NBFCs even though they may be authorized to collect deposits. As such, investors and depositors should take informed decisions while placing deposit with an NBFC.

Yes, the overseas branches of the banks can make donations abroad, provided the banks do not exceed the prescribed ceiling of one per cent of their published profit of the previous year.

Yes. Different designs of ₹10 coins are currently in circulation. All coins of ₹10 denomination minted from time to time by the Government of India (with/without the Rupee symbol) are legal tender. For more details kindly see our Press Release issued in this regard which is available at the following link www.rbi.org.in>>Issuer of currency>>Press Release>>January 17, 2018. /en/web/rbi/-/press-releases/rbi-reiterates-legal-tender-status-of-%E2%82%B9-10-coins-of-different-designs-42887

1. The Prudential Norms have prescribed that the unquoted shares should be valued at break up value. However, an NBFC can also value these shares at fair value, if it so desires.

Break up value and fair value are to be calculated as per the formula given in the Directions. The formula is illustrated as under :

If the paid equity capital of the company is = Rs. 1,00,00,000

The free reserves net of intangible assets

and deferred revenue expenditure = Rs. 3,20,00,000

Number of equity shares = 10,00,000 shares

The break up value will be :	1,00,00,000 + 3,20,00,000	= Rs. 42/-
	10,00,000

If we take the earning value worked out in the previous question, and since we know that the fair value is the mean of the break up value and the earning value, the fair value will be	150+42	= Rs.96/-
	2

In the given case, the company may value its shares at fair value viz, Rs.96/- which is higher than the break up value at Rs.42/- or cost, whichever is lower.

1. The Board of Directors of the banks should lay down the policy and formulate operational guidelines separately in respect of metropolitan, urban, semi-urban and rural areas covering all areas in respect of acquiring premises on lease/ rental basis for the banks’ use. These guidelines should include also delegation of powers at various levels. The decision in regard to surrendering or shifting of premises other than at rural centers should be taken at the central office level by a committee of senior executives.

2. The Board of Directors of the bank should lay down separate policy for granting of loans to landlords who provide them premises on lease/ rental basis. The rate of interest to be charged on such loans should be fixed as per the lending rate directives issued by RBI with BPLR as the minimum lending rate for the loans above Rs.2 lakhs. The rate of interest may be simple or compound, in accordance with the usual practice of the bank, as applicable to other term loans.

3. Banks should provide a suitable mechanism for redressing the genuine grievances of the landlord expeditiously.

4. The details of negotiated contracts in respect of advances to landlords and rental (including taxes etc. and deposits of Rs.25 lakhs and above) on premises taken on lease/ rental by the public sector banks, should be reported to the Central Bureau of Investigation (CBI) as per the extant Government instructions. This requirement will not be applicable to banks in the private sector.