Yes, there is a specific scheme, which permits acquisition by an eligible entity of shares of a foreign company engaged in a similar activity in exchange of issue of its own ADR/GDRs to the latter on an automatic basis.

The GAH has an online view of the various orders placed by him which are outstanding, the orders which got executed, the net funds position as well an activity log which provides an audit trail of each order placed by the GAH. The transactional user will be able to view his own orders/trades whereas the View User will be able to view orders/trades done by various transactional users under the same client.

The facility is available to resident individuals only.

Ans. The Act lays down an elaborate mechanism for settlement of disputes between system participants in a payment system, between system participant and system provider and between system providers. The Act requires the system provider to make provision in its rules or regulations for creation of a panel to decide disputes between system participants. Where any system participant is dissatisfied with the decision of the panel, or where disputes arise between system participant and system provider or between system providers, such disputes are required to be referred to the Reserve Bank for adjudication, whose decision shall be final and binding on the parties. In cases where the Reserve Bank, in its capacity either as a system participant or system provider, is itself a party to the dispute, then there is a provision for referring such cases to the Central Government for adjudication. (Section 24 of Act)

The bank or the PD can recover upto six paise per Rs.100 as commission for rendering this service to their clients.

Yes. The banks are required to invariably incorporate following proviso in the loan agreements in the case of all advances, including term loans, enabling banks to charge the applicable interest rate in conformity with the directives issued by RBI, except in case of Fixed Rate Loans."Provided that the interest payable by the borrower shall be subject to the changes in interest rates made by the Reserve Bank from time to time."

As per clause (iv) of Section 193 of the Income Tax Act, 1961, no tax shall be deducted from any interest payable on any security of the Central Government or a State Government effective from June 1, 1997. However, as per Finance Act, 2007 and Government of India Notification No. F.4(10)-W&M/2003 dated May 31, 2007, tax has to be deducted at source on the interest exceeding Rupees ten thousand payable during a financial year on 8% Savings (Taxable) Bonds, 2003 with effect from June 1, 2007.

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.

Payment can be made through cash (upto ₹ 20000)/cheques/demand draft/electronic fund transfer.

Yes, the RB-IOS, 2021 provides for an appellate mechanism for the complainant as well as the RE for complaints closed under appealable Clauses of the Scheme. Any person aggrieved by an Award (except the RE in respect of Awards issued for non-furnishing of appropriate and satisfactory information within the stipulated time) or rejection of a complaint under an appealable clause, i.e. Sub-clauses (c) to (f) of Clause 16(2) of the Scheme, can file an appeal before the Appellate Authority in RBI, within 30 days of the date of receipt of communication of the Award (or acceptance of the award by the complainant¹ in case of RE) or rejection of the complaint.

The powers of Appellate Authority are vested with the Executive Director-in-charge of Department of RBI implementing the Scheme. The address of the Appellate Authority is:

The Appellate Authority
Reserve Bank - Integrated Ombudsman Scheme, 2021
Consumer Education and Protection Department
Reserve Bank of India
First Floor, Amar Building, Fort, Mumbai 400 001.

An appeal can be filed through the CMS Portal (https://cms.rbi.org.in) for a closed complaint. Alternatively, the appeal can also be sent vide e-mail at aaos@rbi.org.in.

Further, if the complainant is not satisfied with the resolution provided by the Ombudsman, he/she is at liberty to explore other recourses and/or remedies available, as per law.

Ans. Payment of cheque/ draft/ pay order/ banker’s cheque, if presented beyond the period of three months from the date of issuance of such instrument, shall not be made by RE.

ಉತ್ತರ. ಹೌದು. ಪಿಪಿಐ ನೀಡಿಕೆದಾರರಿಂದ ಏಕವ್ಯಕ್ತಿ ಆಧಾರದ ಮೇಲೆ ಅಥವಾ ಮತ್ತೊಂದು ಘಟಕದೊಂದಿಗೆ ಸಹಬ್ರ್ಯಾಂಡೆಡ್ ಆಧಾರದ ಮೇಲೆ ಪಿಪಿಐಗಳನ್ನು ನೀಡಬಹುದು.

Ans. Under the PSS Act, 2007, dishonour of an electronic fund transfer instruction due to insufficiency of funds in the account etc., is an offence punishable with imprisonment or with fine or both, similar to the dishonour of a cheque under the Negotiable Instruments Act 1881. Subject to complying with the procedures laid down under the PSS Act, 2007, criminal prosecution of defaulter can be initiated in such cases. This provision was introduced to discourage dishonour of electronic payment instructions. (Section 25 of the Act)

Resident individuals can avail of the remittance facility under the Scheme once in a calendar year.

The bank or the PD can build this cost into the sale price or it can recover separately from the clients.

No. Charging a rate of interest below prevailing PLR where a bank has not contracted a fixed rate loan, to any borrower at any time would be deemed as violation of our directives. It would not be in order to provide rebate resulting into actual interest rates charged to any borrower working out lower than the PLR. However, there is no objection to allowing a rebate, as long as the effective interest rate is not below the PLR. The spirit behind the advice to banks to declare PLR with the approval of their ALCO/Board is to make it applicable uniformly at all branches and to impart transparency in the matter of lending rates.

The norms for investment under the ADR/GDR stock swap scheme are as follows:the Indian party has already made an ADR and/or GDR issue and such ADRs/GDRs are currently listed on any stock exchange outside India;such investment by the Indian party does not exceed the higher of the following amounts, namely: -amount equivalent of US$ 100 mn. oramount equivalent to 10 times the export earnings of the Indian party during the preceding financial year as reflected in its audited balance sheet, inclusive of all investments made under the automatic route in the same financial year.the ADR and/or GDR issue for the purpose of acquisition is backed by underlying fresh equity shares issued by the Indian party;the total holding in the Indian party by persons resident outside India in the expanded capital base, after the new ADR and/or GDR issue, does not exceed the sectoral cap prescribed under the relevant regulations for such investment;the valuation of the shares of the foreign company is made: -as per the recommendations of the Investment Banker if the shares are not listed on any stock exchange; orbased on the current market capitalisation of the foreign company arrived at on the basis of monthly average price on any stock exchange abroad for the three months preceding the month in which the acquisition is committed and over and above, the premium, if any, as recommended by the Investment Banker in its due diligence report in other cases.

There is no change in the settlement current settlement procedure. The trades concluded by GAH on the NDS-OM Web Module will flow directly in an STP manner to CCIL for settlement. The Primary Member will continue to be responsible for the settlement of such trades as well as maintenance of adequate margins with CCIL in respect of such trades.

Yes.  RBI or its agent may permit grant of information or inspection of document relating to Government security on being satisfied that the security in question has stood in the name of the applicant or of a person in whom the applicant has a representative/bonafide interest.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form. An individual Non - resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor provided that:

1. the Non-Resident investor shall need to hold the security till early redemption or till maturity; and

2. the interest and maturity proceeds of the investment shall not be repatriable.

No. Residuary Non-Banking Company cannot forfeit any amount deposited by the depositor, or any interest, premium, bonus or other advantage accrued thereon.

Ans. In case of any change in the OVDs such as change in demographic information or address or other documents submitted by a customer at the time of establishing account-based relationship, the customer shall submit the updated OVD/ other documents to the RE within 30 days of the update/ change/ modification in the documents for the purpose of updating the records at RE’s end. In such case, the RE shall acknowledge the receipt of the KYC documents to the customer.

ಉತ್ತರ. ಸಹ-ಬ್ರ್ಯಾಂಡಿಂಗ್ ಪಾಲುದಾರರು ಭಾರತದಲ್ಲಿ ಸಂಯೋಜಿಸಲ್ಪಟ್ಟ ಹಾಗೂ ಕಂಪನೀಸ್ ಆ್ಯಕ್ಟ್,1956/ಕಂಪನೀಸ್ ಆ್ಯಕ್ಟ್,2013 ಅಡಿಯಲ್ಲಿ ನೋಂದಾಯಿತ ಕಂಪನಿಯಾಗಿರಬೇಕು. ಸಹ-ಬ್ರ್ಯಾಂಡಿಂಗ್ ಪಾಲುದಾರರು ಬ್ಯಾಂಕ್ ಆಗಿದ್ದ ಸಂದರ್ಭದಲ್ಲಿ, ಅದಕ್ಕಾಗಿ ಆರ್ಬಿಐನಿಂದ ಪರವಾನಗಿ ಪಡೆದ ಬ್ಯಾಂಕ್ ಆಗಿರಬೇಕು. ಬ್ಯಾಂಕ್ ಹಾಗೂ ಬ್ಯಾಂಕೇತರ ಘಟಕದ ನಡುವೆ ಸಹ-ಬ್ರ್ಯಾಂಡಿಂಗ್ ವ್ಯವಸ್ಥೆಯ ಸಂದರ್ಭದಲ್ಲಿ, ಬ್ಯಾಂಕ್ ಪಿಪಿಐ ನೀಡಿಕೆದಾರರಾಗಿರಬೇಕು. ಎರಡೂ ಘಟಕಗಳು ಬ್ಯಾಂಕೇತರರಾಗಿದ್ದರೆ, ಮುಂಗಡವಾಗಿ, ತಮ್ಮ ನಡುವೆ ನೀಡಿಕೆದಾರರ ಪಾತ್ರವಹಿಸಲು ,ಅವುಗಳಲ್ಲಿ ಒಂದನ್ನು ಮೊದಲೇ ನಿಯೋಜಿಸಲಾಗುತ್ತದೆ.

An applicant company satisfying the above norms may make such investment on an automatic basis and subsequently report the same in form ODG to the Reserve Bank.

Ans. Under the PSS Act, 2007, operating a payment system without authorization, failure to comply with the terms of authorization, failure to produce statements, returns information or documents or providing false statement or information, disclosing prohibited information, non-compliance of directions of Reserve Bank violations of any of the provisions of the Act, Regulations, order, directions etc., are offences punishable for which Reserve Bank can initiate criminal prosecution. Reserve Bank is also empowered to impose fine for certain contraventions under the Act. (Sections 26 and 30 of the PSS Act, 2007).

This facility is available for making remittance/s for any permissible current or capital account transaction or a combination of both. It is not available for purposes specifically prohibited (Schedule I) or regulated by the Government of India (Schedule II) of Foreign Exchange Management (Current Account Transactions) Rules, 2000.

Modalities for obtaining payment from clients towards the cost of securities, accrued interest, wherever applicable and commission will have to be worked out by the bank or the PD and clearly stated in the contract made for the purpose with the client.

No. The banks need not charge a uniform rate of interest even under a consortium arrangement. Each member bank should charge rate of interest on the portion of the credit limits extended by them to the borrowers subject to their PLR.

A trade concluded on the NDS-OM Web Module need not be reported again on the PDO-NDS Module.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

Yes. The bonds can be held in demat account. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to allotment of the bond.

Yes. Pledge, hypothecation or lien may be created in respect of Government securities held in the form of SC, BLA, SGL/CSGL and the holder of Government securities in such forms may avail of loan facility by keeping such securities as collateral towards loan, subject to the stipulation mentioned in Question No. 34. However, Government securities issued in the form of GPN and bearer bonds are not eligible for creation of pledge, hypothecation or lien.

Ans: Yes, all modes of account opening as mentioned in the reply to Q 13 above, viz. onboarding customer in face-to-face mode; non-face-to-face mode and V-CIP are available to the person with disabilities.

An appeal can be filed against the Award or the decision of the RBI Ombudsman rejecting the complaint closed under appealable clauses, within 30 days of the date of receipt of communication of Award or rejection of the complaint. The Appellate Authority, if satisfied that the applicant had sufficient cause for not making an application for appeal within the specified time, may also allow a period of extension not exceeding 30 days.

ಉತ್ತರ. ಎರಡು ಪಾಲುದಾರರ ನಡುವೆ, ಒಬ್ಬರನ್ನು ಪಿಪಿಐ ನೀಡಿಕೆದಾರರಗಿ ನೇಮಿಸಲಾಗಿರುವಂತೆ ಅವರು ಸಹ-ಬ್ರ್ಯಾಂಡೆಡ್ ಪಿಪಿಐಗೆ ಸಂಬಂಧಿಸಿದ ಎಲ್ಲಾ ಗ್ರಾಹಕ ಸೇವಾ ಅಂಶಗಳನ್ನು ತಿಳಿಸುವದಕ್ಕಾಗಿ ಜವಾಬ್ದಾರರಾಗಿರುತ್ತಾರೆ.

Yes. Individuals are free to use this Scheme to acquire and hold immovable property, shares or any other asset outside India without prior approval of RBI.

Yes, such requests are considered by the Special Committee on case-to-case basis. Indian companies desirous of making such investment are required to submit an application in form ODB to Reserve Bank for the purpose.

No. The bank or the PD is not permitted to build any other cost, such as funding cost, into the price. In other words, the bank or the PD cannot recover any other cost from the client other than accrued interest as indicated in Q21 and Q23 and commission(Q31)

Banks can offer loans below the PLR rates to exporters or other credit worthy borrowers including public enterprises in accordance with a transparent and objective policy approved by their respective Board of Directors.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

No. The facility to create pledge, hypothecation or lien against Government securities is not available for those loans which, as per the specific Government Loan Notification, are non-transferable or not eligible for collateral to avail of loan facility.

The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges) The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006. Partial transfer of bonds is also possible.

The Appellate Authority, after examining the appeal and related documents, may act as given under:

1. dismiss the appeal; or

2. allow the appeal and set aside the Award/order of the RBI Ombudsman; or

3. remand the matter to the RBI Ombudsman for fresh disposal in accordance with such directions as the Appellate Authority may consider necessary or proper; or

4. modify the Award/order and pass such directions as may be necessary to give effect to the order of the RBI Ombudsman or Award so modified; or

5. pass any other order as it may deem fit.

Further, the orders of the Appellate Authority shall have the same effect as the Award passed by the RBI Ombudsman or the order rejecting the complaint, as the case may be.

Ans. REs’ Customer Acceptance Policy shall not result in denial of banking/ financial facility to members of the general public, especially those, who are financially or socially disadvantaged, including the persons with disabilities (PWDs). The decision to reject the application of KYC/ periodic updation of KYC shall not be automated and such decisions on rejection shall be reviewed by an official of RE authorised for the purpose.

The company will have to make an application to the Reserve Bank of India in form ODI along with necessary documents under the Normal Route.

In the event of default, the banks may charge penal interest in the borrowal accounts. Penal rate represents additional interest charged over and above the normal interest rates charged to the borrowers. The penal interest should not be levied on adhoc limits since the limits are generally granted pending regular sanction of loans and the rate of interest thereon should be subject to the maximum spread over PLR. With effect from 10.10.2000, the bank’s boards have been empowered to take decision on whether or not penal interest that should be levied for reasons such as default in repayment, non-submission of financial statements, etc. The policy should be governed by well accepted principles of transparency, fairness, incentive to service the debt and due regard to genuine difficulties of customers.

Yes. Individuals are free to open, hold and maintain foreign currency accounts with a bank outside India for making remittances under the Scheme without the prior approval of RBI. The account can be used for putting through any transaction connected with or arising from remittances under the Scheme.

PDs and banks will furnish information relating to the Scheme to the Reserve Bank of India as and when called for. RBI can also review the guidelines. If and when the guidelines are revised, RBI will notify the modified guidelines.December 15, 2001