FAQ Page 1 - ಆರ್ಬಿಐ - Reserve Bank of India
External Commercial Borrowings (ECB) and Trade Credits
E. AVERAGE MATURITY PERIOD
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
Paytm Payments Bank Wallet
Coordinated Portfolio Investment Survey – India
What to report under CPIS?
Ans: Reporting entities should report the data in the unit mentioned in the survey schedule (for eg., INR Lakh).
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Eligible entities and requirements to submit the FLA return
Ans: FLA return and Annual Performance Report (APR) for ODI are two different returns and monitored by two different departments of RBI. So, you are required to submit both the returns if these are applicable for your entity. For more information on APR, please refer to the Master Direction – Reporting under Foreign Exchange Management Act, 1999 on RBI’s website.
Biennial survey on Foreign Collaboration in Indian Industry (FCS)
Some important definitions and concepts
Ans.: An Indian company is called as a Foreign Subsidiary if a non-resident investor owns more than 50 per cent of the voting power / equity capital or where a non-resident investor and its subsidiary(s) combined own more than 50 per of the voting power / equity capital of an Indian enterprise.
Government Securities Market in India – A Primer
Retail Direct Scheme
Know Your Customer (KYC) related queries
Housing Loans
Indian Currency
B) Banknotes
The paper currently being used for printing of banknotes in India is made by using 100% cotton.
Government Securities Market in India – A Primer
14.1 The return on a security is a combination of two elements (i) coupon income – that is, interest earned on the security and (ii) the gain / loss on the security due to price changes and reinvestment gains or losses.
14.2 Price information is vital to any investor intending to either buy or sell G-Secs. Information on traded prices of securities is available on the RBI website http://www.rbi.org.in under the path Home → Financial Markets → Financial Markets Watch → Order Matching Segment of Negotiated Dealing System. This will show a screen containing the details of the latest trades undertaken in the market along with the prices. Additionally, trade information can also be seen on CCIL website http://www.ccilindia.com/OMHome.aspx. On this page, the list of securities and the summary of trades is displayed. The total traded amount (TTA) on that day is shown against each security. Typically, liquid securities are those with the largest amount of TTA. Pricing in these securities is efficient and hence UCBs can choose these securities for their transactions. Since the prices are available on the screen they can invest in these securities at the current prices through their custodians. Participants can thus get near real-time information on traded prices and take informed decisions while buying / selling G-Secs. The screenshots of the above webpage are given below:
NDS-OM Market
![NDS-OM Market](/documents/87730/28909807/GOVTSEC20082019_1.jpg)
The website of the Financial Benchmarks India Private Limited (FBIL), (www.fbil.org.in) is also a right source of price information, especially on securities that are not traded frequently.
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
The list of registered NBFCs is available on the web site of Reserve Bank of India and can be viewed at www.rbi.org.in → Sitemap → NBFC List. The instructions issued to NBFCs from time to time are also hosted at www.rbi.org.in → Notifications → Master Circulars → Non-banking, besides, being issued through Official Gazette notifications and press releases.
Domestic Deposits
I. Domestic Deposits
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In the case of term deposit standing in the name/s of a deceased individual depositor, or two or more joint depositors, where one of the depositor has died, the criterion for payment of interest on matured deposits in the event of death of the depositor in the above cases has been left to the discretion of individual banks subject to their Board laying down a transparent policy in this regard.
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In the case of balances lying in current account standing in the name of a deceased individual depositor/ sole proprietorship concern, interest should be paid only from May 1, 1983 or from the date of death of the depositor, whichever is later, till the date of repayment to the claimant/s at the rate of interest applicable to savings deposit as on the date of payment. However, in the case of NRE deposit, if the claimants are residents, the deposit on maturity is treated as domestic rupee and interest is paid for the subsequent period at a rate applicable to the domestic deposit of similar maturity.
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Eligible entities and requirements to submit the FLA return
Ans: If all non-resident shareholders of an entity have transferred their shares to the residents during the reporting period and the entity does not have any outstanding investment in respect of inward and outward FDI as on end-March of the latest FY, then the entity need not submit the FLA return.
External Commercial Borrowings (ECB) and Trade Credits
E. AVERAGE MATURITY PERIOD
Remittances (Money Transfer Service Scheme (MTSS) and Rupee Drawing Arrangement (RDA))
Money Transfer Service Scheme (MTSS)
Core Investment Companies
Core Investment Companies (CICs)
Ans: Exempted CICs desirous of making overseas investment in financial sector shall first need to hold a Certificate of Registration (CoR) from Reserve Bank of India (the Bank) and will have to comply with all the regulations applicable to registered CIC-ND-SI. However, they need not obtain NOC from the Bank if their investments overseas are in the non-financial sector.
FAQs on Non-Banking Financial Companies
Ceiling on deposits
A. As per the new Regulatory framework, there is no overall ceiling on the borrowings of NBFCs. However, limits have been prescribed for acceptance of Public Deposits as indicated here.
Level of credit rating |
Ceiling on public deposits |
|
EL/HP Cos. |
LC/ICs |
|
AAA |
4.0 |
2.0 |
AA |
2.5 |
1.0 |
A |
1.5 |
0.5 |
A - (CRISIL & ICRA) } |
||
BBB (CARE) } |
0.5 |
Nil |
BBB- (DCR India) } |
It is to be noted that there is an in-built ceiling on the total borrowings of the NBFCs accepting deposits from public, because they are required to maintain a capital adequacy ratio of 10 per cent of their risk weighted assets effective from 31.3.1998 and 12 per cent from 31.3.1999. Their capacity to create assets and raise corresponding borrowings will be restricted because of capital adequacy norms.
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
Paytm Payments Bank Wallet
Coordinated Portfolio Investment Survey – India
What to report under CPIS?
Ans: If the responding entity does not have any portfolio investment asset during the reference period, then that entity is required to submit NIL survey schedule to the generic email ID of the Reserve Bank as per the instruction in the survey schedule.