FAQ Page 1 - ಆರ್ಬಿಐ - Reserve Bank of India
FAQs on Non-Banking Financial Companies
Classification of NBFCs into sub-groups
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Some Useful Definitions
Ans: An enterprise is said to have a centre of economic interest and to be a resident unit of a country (economic territory) when the enterprise is engaged in a significant amount of production of goods and/or services in that centre or when it owns land or buildings located in that centre. The enterprise must maintain at least one production establishment in the country and must plan to operate the establishment indefinitely or over a long period of time.
Coordinated Portfolio Investment Survey – India
updated: ಡಿಸೆಂ 01, 2023
Special instructions for banks
Ans: No, investments made by branches of your bank located outside India should not be included in CPIS.
External Commercial Borrowings (ECB) and Trade Credits
G. END-USES
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
Money Transfer through UPI/ IMPS
Government Securities Market in India – A Primer
Day count convention refers to the method used for arriving at the holding period (number of days) of a bond to calculate the accrued interest. As the use of different day count conventions can result in different accrued interest amounts, it is appropriate that all the participants in the market follow a uniform day count convention.
For example, the conventions followed in Indian market are given below.
Bond market: The day count convention followed is 30/360, which means that irrespective of the actual number of days in a month, the number of days in a month is taken as 30 and the number of days in a year is taken as 360.
Money market: The day count convention followed is actual/365, which means that the actual number of days in a month is taken for number of days (numerator) whereas the number of days in a year is taken as 365 days. Hence, in the case of T-Bills, which are essentially money market instruments, money market convention is followed.
In some countries, participants use actual/actual, some countries use actual/360 while some use 30/actual. Hence the convention changes in different countries and in different markets within the same country (eg. Money market convention is different than the bond market convention in India).
Core Investment Companies
Core Investment Companies (CICs)
Ans: The NBFC would have to apply to RBI with full details of the plan and exemptions could be considered on a selective basis on the merits of the case.
Retail Direct Scheme
Nomination related queries
Domestic Deposits
II. Deposits of Non-Residents Indians (NRIs)
Indian Currency
C. Different Types of Bank Notes and Security Features of banknotes
Central banks the world over change the design of their banknotes and introduce new security features primarily to make counterfeiting difficult and to stay ahead of counterfeiters. India also follows the same policy.
Core Investment Companies
Core Investment Companies (CICs)
Ans: CICs need not meet the principal business criteria for NBFCs.
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
FAQs on Non-Banking Financial Companies
Classification of NBFCs into sub-groups
Retail Direct Scheme
Investment and Account holdings related queries
While the primary auctions are conducted generally on specified days of the week as given in the table below, these days may differ due to holidays or other considerations. Half yearly indicative calendars are published on RBI website for Government of India’s dated securities and Sovereign Gold Bonds whereas quarterly indicative calendars are published for Treasury Bills and State Development loans. For details visit /en/web/rbi
S. No. | Government security | Primary auction usually held on |
1 | Government of India Treasury Bills (T-Bills) | Wednesdays |
2 | Government of India dated securities (dated G-Sec) | Fridays |
3 | State Development Loans (SDLs) | Tuesdays |
4 | Sovereign Gold Bonds (SGB) | Weekly windows announced by RBI in its press release |
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Some Useful Definitions
Ans:
Foreign Subsidiary: An Indian entity is called as a Foreign Subsidiary if a non-resident investor owns more than 50% of the voting power/equity capital OR where a non-resident investor and its subsidiary(s) combined own more than 50% of the voting power/equity capital of an Indian enterprise.
Foreign Associate: An Indian entity is called as Foreign Associate if non-resident investor owns at least 10% and no more than 50% of the voting power/equity capital OR where non-resident investor and its subsidiary(s) combined own at least 10% but no more than 50% of the voting power/equity capital of an Indian enterprise.
Special Purpose Vehicle: A special purpose Vehicle (SPV) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfil narrow, specific or temporary objectives. SPV have little or no employment, or operations, or physical presence in the jurisdiction in which they are created by their parent enterprises, which are typically located in other jurisdictions (economies). They are often used as devices to raise capital or to hold assets and liabilities and usually do not undertake significant production.
External Commercial Borrowings (ECB) and Trade Credits
G. END-USES
Government Securities Market in India – A Primer
It is calculated as per the following formula
![T- Bill calculated](/documents/87730/28909807/GOVTSEC20082019_2.jpg)
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
Money Transfer through UPI/ IMPS
Coordinated Portfolio Investment Survey – India
updated: ಡಿಸೆಂ 01, 2023
Special instructions for banks
Ans: Yes, it should be included.