An illustrative list of Intermediary Agencies is as under: 1. State sponsored organizations for on-lending to Weaker Sections.@ 2. Distributors of agricultural inputs/implements. 3. State Financial Corporations (SFCs)/State Industrial Development Corporations (SIDCs) to the extent they provide credit to weaker sections. 4. National Small Industries Corporation (NSIC). 5. Khadi and Village Industires Commission (KVIC). 6. Agencies involved in assisting the decentralized sector. 7. Housing and Urban Development Corporation Ltd. (HUDCO). 8. Housing Finance Companies approved by National Housing Bank (NHB) for refinance. 9. State sponsored organization for SCs/STs (for purchase and supply of inputs to and/or marketing of output of the beneficiaries of these organizations). 10. Micro Finance Institutions/Non-Government Organisations (NGOs) on-lending to SHGs. @ ‘Weaker Sections’ in Priority Sector includes following: Small and marginal farmers with land holdings of 5 acres and less, landless labourers, tenant farmers and share-croppers; Artisans, village and cottage industries where individual credit requirements do not exceed Rs.25,000/-. Small and marginal farmers, sharecroppers, agricultural and non-agricultural labourers, rural artisans and families living below the poverty lines are the beneficiaries. The family income should not exceed Rs. 11,000/- per annum. Scheduled Castes and Scheduled Tribes. Beneficiaries are persons whose family income from all sources does not exceed Rs.7200/- per annum in urban or semi urban areas or Rs.6,400/- per annum in rural areas. They should not own any land or the size of their holding does not exceed one acre in the case of irrigated land and 2.5 acres in the case of unirrigated land ( land holding criteria do not apply to SC/ST). Beneficiaries under Scheme of Liberation and Rehabilitation of Scavengers (SLRS). Advances granted to Self-Helf Groups (SHGs) for reaching the rural poor.

An application for direct investment in a JV/WOS may be made in form ODI to:The Chief General Manager,Overseas Investment Division,Exchange Control Department,Reserve Bank of India, Central Office,Amar Building, Sir P.M.Road,Mumbai 400 001.

The NDS-OM system ensures that orders place by a GAH will not match with its Primary Member. Similarly orders placed by two GAH of the same Primary Member will not match.

No. It will not be mandatory for the retail investor to maintain a constituent subsidiary general ledger (CSGL) account with a bank or a primary dealer (PD) through whom it proposes to participate in the auction. It will, however, be convenient for the investor to have such an account.

Response

Yes. Such customers should give their consent in writing and they should be informed of the features and extent of services available in BSBDAs.

Yes.  Government securities, as per eligibility, can be stripped separately for interest and principal and reconstituted as well.

At the time of making applications, the Promoters/Promoter Group will have to furnish a road map and methodologies they would adopt to comply with all the requirements of the corporate structure indicated in para 2 (C)(ii) and (iii) of the guidelines and realign the business between the entities to be held under the NOFHC [para 2(C)(iv) of the guidelines] within a period of 18 months. After the ‘in-principle approval’ is accorded by RBI for setting up of the bank, the actual setting up of NOFHC and the bank, re-organization of the Promoter Group entities to bring the regulated financial services entities under the NOFHC as well as realignment of business among the entities under the NOFHC have to be completed within a period of 18 months from the date of in-principle approval or before commencement of banking business, whichever is earlier.

Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be the same as applicable to ordinary gold loan prescribed by RBI from time to time. Granting loan against SGBs would be subject to decision of the bank/financing agency, and cannot be inferred as a matter of right.

The Deputy Ombudsman can reject a complaint only on the following grounds:

1. the complaint is non-maintainable under Clause 10 of the RB-IOS, 2021;

2. the complaint is in the nature of offering suggestions or seeking guidance or explanation.

Ans. Yes, the RE shall intimate its customer, in advance, to comply with the requirement of periodic updation of KYC. Subsequent to the due date, RE shall also give reminders to such customer who has still not complied with the requirements, despite advance intimations.

ಉತ್ತರ. ಡಿಸೆಂಬರ್ 31,2018ರ ಮೊದಲು ಅಸ್ತಿತ್ವದಲ್ಲಿರುವ ಎಲ್ಲಾ ಮ್ಯಾಗ್ನೆಟಿಕ್ ಸ್ಟ್ರೈಪ್ ಕಾರ್ಡ್ಗಳನ್ನು ಇಎಮ್ವಿ ಚಿಪ್ ಹಾಗೂ ಪಿನ್ಕಾರ್ಡ್ಗಳಾಗಿ ಪರಿವರ್ತಿಸಲು ಬ್ಯಾಂಕ್ಗಳಿಗೆ ಸೂಚನೆ ನೀಡಲಾಗಿದೆ. ಕಾರ್ಡ್ದಾರರು ಅವನ/ಅವಳ ಮ್ಯಾಗ್ನೆಟಿಕ್ ಸ್ಟ್ರೈಪ್ ಕಾರ್ಡ್ ಅನ್ನು ಇಎಮ್ವಿ ಚಿಪ್ ಹಾಗೂ ಪಿನ್ಕಾರ್ಡ್ಗೆ ಬದಲಾಯಿಸಿರುವ ಕಾರ್ಡ್ ಅನ್ನು ಪಡೆಯದಿದ್ದರೆ, ಅವನು/ಅವಳು ಬದಲಿ ಕಾರ್ಡ್ ಅನ್ನು ಪಡೆಯಲು ಅವನ/ಅವಳ ಶಾಖೆಯನ್ನು ತಕ್ಷಣ ಸಂಪರ್ಕಿಸಬೇಕು.

ಉತ್ತರ. ಪಿಪಿಐ ಬ್ಯಾಲೆನ್ಸ್ಗಳಲ್ಲಿ ಯಾವುದೇ ಬಡ್ಡಿಯನ್ನು ಪಾವತಿಸಲಾಗುವುದಿಲ್ಲ.

Requests under the normal route are considered by taking into account the prima facie viability of the proposal, business track record of the promoters, experience and expertise of the promoters, benefits to the country, etc.

The Primary Member has the right to cancel/hold or release any outstanding order of the GAH. For instance, in case of any connectivity issues at the GAH end, the GAH can request the Primary Member to either cancel or hold his orders. Orders held by the Primary Member can only be released by the Primary Member. Orders placed by the GAH cannot be modified by the Primary Member. Trades once concluded on the NDS OM Web Module cannot be cancelled.

Persons resident in India are permitted to maintain foreign currency accounts in India under following two Schemes: EEFC Accounts:- To avoid exchange loss on conversion of foreign exchange into Indian Rupee & Rupee into foreign exchange, residents can retain upto 50% of foreign currency remittances received from abroad in a foreign currency account, viz., EEFC account, with an authorised dealer in India. Funds held in EEFC account can be utilised for current account transactions and also for approved capital account transactions as specified by the extant Rules/Regulations/Notifications/Directives issued by the Government/RBI from time to time. RFC Accounts :- Returning Indians, i.e., those Indians, who were non-residents earlier, and are returning now for permanent stay, are permitted to open, hold and maintain with an authorised dealer in India a Resident Foreign Currency (RFC) Account to keep their foreign currency assets. Assets held outside India at the time of return can be credited to such accounts. The foreign exchange (i) received or acquired as gift or inheritance from a person referred to sub-section (4) of section 6 of FEMA,1999 or (ii) referred to in clause (c) of section 9 of the Act or acquired as gift or inheritance therefrom may also be credited to this account. The funds in RFC account are free from all restrictions regarding utilisation of foreign currency balances including any restriction on investment outside India. The facility is also available to residents provided foreign exchange to be credited to such account is received out of certain specified type of funds/accounts. c. RFC (Domestic)Account:- A person resident in India can open, hold and maintain with an authorized dealer in India, a Resident Foreign Currency (Domestic) Account, out of foreign exchange acquired in the form of currency notes, Bank notes and travellers cheques from any of the sources like, payment for services rendered abroad, as honorarium, gift, services rendered or in settlement of any lawful obligation from any person not resident in India. The account may also be credited with/opened out of foreign exchange earned like proceeds of export of goods and/or services, royalty, honorarium, etc., and/or gifts received from close relatives (as defined in the Companies Act) and repatriated to India through normal banking channels by resident individuals.

Yes, the PD/ bank through whom the application is made must clearly indicate such mode of crediting the securities.

Yes. In respect the following categories the banks have freedom to charge interest rate without reference to PLR:Loans covered by refinance schemes of term lending institutions.Interest rates on bank lending to intermediary agencies.Bill discounting by banks.Advances/overdrafts against domestic/NRE/FCNR(B) deposits.Banks are also free to determine the rates of interest without reference to PLR for the following categories:a. Loans for purchase of consumer durables.b. Loans to individuals against shares and debentures /bonds.c. Other non-priority sector personal loans.However, it is not the intention to allow any concessionality in case of such loans and therefore banks should not charge rates below PLR,regardless of the size of the loan amount.

Ans. The Reserve Bank is authorized to issue directions to a payment system or system participant to cease or desist from engaging in any act, omission or course of conduct or direct it to perform any acts as well as issue general directions in the interests of the smooth operation of the payment system (Section 17 and 18 of the PSS Act, 2007).

STRIPS is the acronym for 'Separate Trading of Registered Interest and Principal of Securities'. These are basically "zero-coupon" securities where the investor receives a payment at maturity only. STRIPS allow investors to hold and trade the individual interest and principal components of eligible Government securities as separate securities of varying tenure. They are popular with investors who want to receive a known payment on a specific future date and want to hold securities of desired maturity.

At the time of making applications, the Promoters/Promoter Group will have to furnish a road map and methodologies they would adopt to comply with all the requirements of the corporate structure indicated in para 2 (C)(ii) and (iii) of the guidelines and realign the business between the entities to be held under the NOFHC [para 2(C)(iv) of the guidelines] within a period of 18 months. After the ‘in-principle approval’ is accorded by RBI for setting up of the bank, the actual setting up of NOFHC and the bank, re-organization of the Promoter Group entities to bring the regulated financial services entities under the NOFHC as well as realignment of business among the entities under the NOFHC have to be completed within a period of 18 months from the date of in-principle approval or before commencement of banking business, whichever is earlier.

Interest on the Bonds will be taxable as per the provisions of the Income-tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long terms capital gains arising to any person on transfer of bond.

If the Ombudsman is satisfied that there is deficiency of service on the part of the RE and the complaint is not settled by agreement within a specified period as allowed by the Ombudsman, the RBI Ombudsman may pass an Award, if applicable. Before passing an Award, the Ombudsman provides a reasonable opportunity to the complainant and the RE to present their case.

The complainant may accept the Award in full and final settlement or reject it. However, if he wishes to accept the Award, it is mandatory that the complainant submits his letter of acceptance to the RE concerned within 30 days, failing which, the Award will lapse.

Ans. Prevention of Money-Laundering (Maintenance of Records) Rules, 2005 enable the REs to obtain the identity records (including updated records of identity) from the customers, failing which the RE shall close the account of the customers after giving due notice.

ಉತ್ತರ. ಪಿಪಿಐಗಳನ್ನು ಕಾರ್ಡ್ಗಳು ,ವಾಲೆಟ್ಗಳು, ಹಾಗೂ ಪಿಪಿಐಗೆ ಪ್ರವೇಶಾವಕಾಶಪಡೆಯಲು ಹಾಗೂ ಅದರಲ್ಲಿರುವ ಮೊತ್ತವನ್ನು ಬಳಸಲು ಯಾವುದೇ ಅಂತಹ ರೂಪ/ಉಪಕರಣದಂತೆ ನೀಡಬಹುದು. ಕಾಗದದ ರಸೀದಿಗಳ ರೂಪದಲ್ಲಿ ಇನ್ನು ಮುಂದೆ ನೀಡಲಾಗುವುದಿಲ್ಲ.

Ans. The PSS Act 2007 defines “netting” and legally recognizes settlement finality. It states that a settlement, whether gross or net, will be final and irrevocable as soon as the money, securities, foreign exchange or derivatives or other transactions payable as a result of such settlement is determined, whether or not such money, securities or foreign exchange or other transactions is actually paid. In case a system participant is declared insolvent, or is dissolved or is wound up, no other law can affect any settlement which has become final and irrevocable and the right of the system provider to appropriate the collaterals contributed by the system participants towards settlement or other obligations.

This Act also legally recognizes the loss allocation among system participants and payment system, where the rules provide for this mechanism

Yes. At the instance of the investor, subsequent conversion to the physical form is allowed.

Yes. The banks may announce different PLRs for credit limits over Rs. 2 lakhs for different maturities provided the transparency and uniformity of treatment originally envisaged continues to be maintained. The banks, which have moved over to declaration of tenor-linked PLRs should always indicate the specific tenor for which the declared PLR is applicable. Banks may announce a separate Prime Term Lending Rate (PTLR) for term loans of three years and above. Banks may also prescribe separate PLRs and spreads over PLRs for loan component and cash credit component.

Proposals under the normal route are approved by the Special Committee on Indian Direct Investment Abroad, which consists of the representatives of the Ministry of Finance, Ministry of External Affairs and Ministry of Commerce of the Government of India and the Reserve Bank of India.

The Primary Member being responsible for the settlement of the trades done by the GAH on the NDS OM Web Based Module, will have a view of the Orders placed by the GAH as well as the trades done by the GAH.

In terms of sub-section 4, of Section (6) of the Foreign Exchange Management Act, 1999, a person resident in India is free 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 by such person when he was resident outside India or inherited from a person who was resident outside India. (Please also refer to the Liberalised Remittance Facility of USD 25,000 discussed below).

At the time of making applications, the Promoters/Promoter Group will have to furnish a road map and methodologies they would adopt to comply with all the requirements of the corporate structure indicated in para 2 (C)(ii) and (iii) of the guidelines and realign the business between the entities to be held under the NOFHC [para 2(C)(iv) of the guidelines] within a period of 18 months. After the ‘in-principle approval’ is accorded by RBI for setting up of the bank, the actual setting up of NOFHC and the bank, re-organization of the Promoter Group entities to bring the regulated financial services entities under the NOFHC as well as realignment of business among the entities under the NOFHC have to be completed within a period of 18 months from the date of in-principle approval or before commencement of banking business, whichever is earlier.

TDS is not applicable on the bond. However, it is the responsibility of the bond holder to comply with the tax laws.

Yes.   A fee of Rupees twenty is payable for renewal, conversion or sub-division of Government security and a fee of Rupees One hundred is payable for issue of a duplicate Government security. However, no fee is payable for conversion of GPN into SC and SGL/CSGL or SC into SGL/CSGL, consolidation of Government securities and renewals due to filling up of interest cages at the back of the GPN or filling up of transfer endorsement cages at the back of the SC.

In case the RE does not comply with the decision of the RBI Ombudsman within a reasonable time as may be decided by the RBI Ombudsman, the Ombudsman can pass an Award, if there are obvious deficiencies in service. An Award has to be complied with by the RE, unless appealed, within 30 days of the complainant accepting the Award.

Ans. The customer shall exercise utmost caution before clicking links embedded in such SMS/ email as these may be suspicious/ fraudulent. The public is advised not to fall prey to frauds being perpetrated in the name of KYC updation. Please refer to the Press Release dated September 13, 2021 on RBI cautions against frauds in the name of KYC updation.

Yes, requests for direct investment outside India in a JV/WOS by way of share swap arrangement are considered under the Normal Route.

Ans. The PSS Act, 2007 lays down the duties of the system provider. The system provider is required to operate the payment system in accordance with the provisions of the Act and the Regulations, the terms and conditions of authorization and the directions given by the Reserve Bank from time to time. The system provider is also required to act in accordance with the contract governing the relationship among the system participants and the rules and regulations which deal with the operation of the payment system. The Act requires the system provider to disclose the terms and conditions including the charges, limitations of liability etc., under the payment system to the system participants. The Act also requires the system provider to provide copies of all the rules and regulations governing the operation of the payment system and other relevant documents to the system participants. The system provider is required to keep the documents and its contents, provided to it by the system participants, as confidential and is prohibited from disclosing the same, except in accordance with the provisions of law.(Sections 20 to 22 of the Act)

This is a new facility extended to all resident individuals under which they may freely remit upto USD 25,000 per calendar year for any permissible current or capital account transaction or a combination of both.

RBI will issue the securities to the bank or PD that has bid on behalf of non-competitive bidder against payment made by the bank or PD on the date of issue itself.The non-competitive bidder will make payment to the bank or the PD through which he has put the bid and receive his securities from them.In other words, the RBI will issue securities to the bank or the PD against payment received from the bank or the PD on the date of issue irrespective of whether the bank or the PD has received payment from their clients.

The banks have freedom to offer all loans on fixed or floating rates subject to conformity to Asset Liability Management (ALM) Guidelines. However, they should ensure that the PLR stipulations as applicable are complied with. The nature of alignment with PLR i.e. whether it is at the time of sanction or disbursement of the loan, should be made explicit at the time of sanction of the loan. However, for small loans upto Rs. 2 lakhs, the stipulation of 'not exceeding PLR' (for relevant maturity) would be applicable.

On the NDS-OM Web Module, the GAH has access to real time quotes on various securities as available on the main NDS-OM system. The GAH is able to view the best bid/offer (Market Watch) in various securities as well as the best 10 bid and offers (Market By Price / Market By Order). The GAH also has access to the total Trade information (Trade Watch) as well as half hourly movement of each security. (Market Movement). Further details are available in the User Manual.

ಉತ್ತರ. ಪಿಪಿಐ ನೀಡಿಕೆದಾರರು ಉಪಕರಣವನ್ನು ನೀಡುವಾಗ ಪಿಪಿಐದಾರರಿಗೆ ಸ್ಪಷ್ಟವಾಗಿ ಹಾಗೂ ಸರಳ ಭಾಷೆಯಲ್ಲಿ ಎಲ್ಲಾ ಪ್ರಮುಖ ನಿಯಮಗಳು ಹಾಗೂ ನಿಬಂಧನೆಗಳನ್ನು ಬಹಿರಂಗ ಪಡಿಸಬೇಕು. ಈ ಪ್ರಕಟಣೆಗಳು ಈ ಕೆಳಗಿನವುಗಳನ್ನು ಒಳಗೊಂಡಿರುತ್ತದೆ;

1. ಉಪಕರಣದ ಬಳಕೆಯೊಂದಿಗೆ ಸಂಬಂಧಿಸಿದ ಎಲ್ಲಾ ವೆಚ್ಚಗಳು ಹಾಗೂ ಶುಲ್ಕಗಳು
2. ಮುಕ್ತಾಯದ ಅವಧಿ ಹಾಗೂ ಉಪಕರಣದ ಮುಕ್ತಾಯಕ್ಕೆ ಸಂಬಂಧಿಸಿದ ನಿಯಮಗಳು ಹಾಗೂ ನಿಬಂಧನೆಗಳು .

 

Yes.  The liability of the Government in respect of any interest payment due on a Government security shall terminate on the expiry of six years from the date on which the amount due by way of interest became payable, i.e., investors are expected to claim interest on their Government security within six years from the date it becomes payable and Government may refuse to pay such unclaimed interest payment after six years. However, Government may allow a bonafide claim for payment of interest even after the expiry of the limitation period of six years.

At the time of making applications, the Promoters/Promoter Group will have to furnish a road map and methodologies they would adopt to comply with all the requirements of the corporate structure indicated in para 2 (C)(ii) and (iii) of the guidelines and realign the business between the entities to be held under the NOFHC [para 2(C)(iv) of the guidelines] within a period of 18 months. After the ‘in-principle approval’ is accorded by RBI for setting up of the bank, the actual setting up of NOFHC and the bank, re-organization of the Promoter Group entities to bring the regulated financial services entities under the NOFHC as well as realignment of business among the entities under the NOFHC have to be completed within a period of 18 months from the date of in-principle approval or before commencement of banking business, whichever is earlier.

The issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents through which these securities have been purchased will provide other customer services such as change of address, early redemption, nomination, grievance redressal, transfer applications etc.

Cases that look similar prima-facie may vary in terms of facts and circumstances. However, to bring greater consistency in decisions, deliberations among Ombudsmen are held regularly.

Ans. Demand Draft/ Payment Order/ Travellers Cheques for amount less than ₹50,000 can be purchased against cash. However, such instrument for ₹50,000 and above can be issued only by way of debiting the customer’s account or against cheques.

ಉತ್ತರ. ಪಿಪಿಐ ನೀಡಿಕೆದಾರರು, ತಮ್ಮ ಏಜಂಟರುಗಳನ್ನು ಒಳಗೊಂಡು, ಇತರ ಪಿಪಿಐಗಳು/ಬ್ಯಾಂಕ್ ಖಾತೆಗಳಿಗೆ ನಗದು-ಆಧಾರಿತ ಹಣರವಾನೆಗಾಗಿ, ಪ್ರತಿ ಸಲ ಹೊಸ ಪಿಪಿಐಗಳನ್ನು ರಚಿಸಬಾರದು. ಅದೇ ವ್ಯಕ್ತಿಯಿಂದ ಹಿಂದಿನ ಹಣರವಾನೆಗಾಗಿ ರಚಿಸಿರುವ ಪಿಪಿಐಗಳನ್ನು ಬಳಸಬಹುದು.