FAQ Page 1 - आरबीआय - Reserve Bank of India
Biennial survey on Foreign Collaboration in Indian Industry (FCS)
Some other important points to be noted
Ans.: Please refer to the below table containing the error codes (Fatal error, non-Fatal error) with their descriptions. If you get an acknowledgment of the processed data with any Fatal error codes, then follow the below-mentioned fatal error message/description and revise your data and resubmit it on fcs@rbi.org.in. If you get an acknowledgment of the processed data with any Non-fatal error codes then give justification/clarification on the errors, by sending the same to fcsquery@rbi.org.in.
Sr. No. | Revised- Rejection Criteria | Revised - Error Message/descriptions | Error Code |
Fatal Error | |||
1 | When the year is left blank | The year cannot be left blank. Please specify the reference year and fill the return. | FCS_F_001 |
2 | When the survey year is incorrect | Survey year should be the subsequent survey after the latest closed survey year in the system. Please specify the correct Survey year | FCS_F_001 |
3 | When survey year is null | The survey year cannot be NULL. Please specify the survey year and fill the return. | FCS_F_001 |
4 | When survey year is incorrect | Please specify proper survey year, please fill the form for the survey year | FCS_F_001 |
5 | When survey year is invalid | The year for which the information is pertaining, is invalid survey year. Please mention the reference year for which the return is filled | FCS_F_001 |
6 | When survey year is closed | FCS survey for {year} is closed | FCS_F_001 |
5 | When name of company not provided | Name of company is not provided. Please provide the name of company. | FCS_F_002 |
6 | When CIN Number is not given | CIN number is not provided. Please provide CIN number of the company. | FCS_F_003 |
7 | When telephone number is not given | Please provide the telephone number of contact person. | FCS_F_004 |
8 | When email id is not given | Please provide the email id of the contact person. | FCS_F_005 |
Non-Fatal Error | |||
1 | When type of organization is not given | Please provide the type of organization. | FCS_NF_001 |
2 | Identification of the Reporting company when it is not given | Please specify the Identification of the Reporting company. | FCS_NF_002 |
3 | When economic activity is not given | Please provide the economic activity. | FCS_NF_003 |
4 | Please provide details for country name / equity share. | Please provide details for country name / equity share. | FCS_NF_008 |
5 | When provide details for country name / loan details is not given | Please provide details for country name / loan details. | FCS_NF_009 |
6 | When provide details for country name / amount details is not given | Please provide details for country name / amount details. | FCS_NF_011 |
7 | When the total equity capital of organization is not given | Please provide the total equity capital of the organization. | FCS_NF_004 |
8 | When foreign participation in equity capital cannot be more than total equity capital. | The foreign participation in equity capital cannot be more than total equity capital. | FCS_NF_005_PY |
9 | When foreign participation in equity capital cannot be more than total equity capital. | The foreign participation in equity capital cannot be more than total equity capital. | FCS_NF_005_CY |
10 | When foreign participation in equity capital cannot be more than total equity capital. | The foreign participation in equity capital cannot be more than total equity capital. | FCS_NF_005 |
11 | When Field 2: (2a) cannot be blank for both the years as company is foreign subsidiary. | Field 2: (2a) cannot be blank for both the years as company is foreign subsidiary. | FCS_NF_006 |
12 | When Field 2 cannot be blank for both the years as company is foreign associate. | Field 2 cannot be blank for both the years as company is foreign associate. | FCS_NF_007 |
13 | In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2). | In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2). | FCS_NF_012_PY |
14 | In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2). | In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2). | FCS_NF_012_CY |
15 | In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2). | In part II, block 7, Total value of imports (7.1) cannot be less than sum of imports from foreign parent/associate/collaborator (7.1.1) and imports under collaboration arrangement (7.1.2). | FCS_NF_012 |
16 | In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2). | In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2). | FCS_NF_013_PY |
17 | In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2). | In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2). | FCS_NF_013_CY |
18 | In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2). | In part II, block 7, Exports of goods (7.2.1) cannot be less than sum of export of goods produced under foreign collaboration agreements (7.2.1.1) and exports to/on behalf of/through foreign collaborator/associate (7.2.1.2). | FCS_NF_013 |
19 | In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1). | In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1). | FCS_NF_014_PY |
20 | In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1). | In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1). | FCS_NF_014_CY |
21 | In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1). | In part II, block 7, Export of services and other foreign exchange earnings (7.2.2) cannot be less than exports to foreign collaborator/associate (7.2.2.1). | FCS_NF_014 |
22 | In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2). | In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2). | FCS_NF_015_PY |
23 | In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2). | In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2). | FCS_NF_015_CY |
24 | In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2). | In part II, block 7, Total value of export on f. o. b. basis (7.2) cannot be less than sum of export of goods (7.2.1) and export of services and other foreign exchange earnings (7.2.2). | FCS_NF_015 |
25 | when company has foreign technical collaboration agreements, please provide the number of agreements. | Since your company has foreign technical collaboration agreements, please provide the number of agreements. | FCS_NF_016 |
26 | agreement details by providing information on all fields need to be filled | Please provide the agreement details by providing information on all fields. | FCS_NF_017 |
27 | Incomplete information. Please provide the agreement details for all the foreign technical collaboration agreements mentioned in field 11(b). | Incomplete information. Please provide the agreement details for all the foreign technical collaboration agreements mentioned in field 11(b). | FCS_NF_018 |
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
National Common Mobility Card (NCMC) issued by Paytm Payments Bank
Coordinated Portfolio Investment Survey – India
Some important definitions and concepts
Ans: Debt securities are negotiable instruments serving as evidence of a debt. They include bills, bonds, notes, negotiable certificates of deposit, commercial paper, debentures, asset-backed securities, money market instruments, and similar instruments normally traded in the financial markets.
External Commercial Borrowings (ECB) and Trade Credits
F. LEVERAGE CRITERIA AND BORROWING LIMIT
Retail Direct Scheme
Know Your Customer (KYC) related queries
Domestic Deposits
II. Deposits of Non-Residents Indians (NRIs)
Housing Loans
REVERSE MORTGAGE LOAN
EXAMPLE OF EMI CALCULATION (PURE FIXED LOAN)
|
Amount of Loan |
1,000,000.00 |
|
|
|
Annual Interest Rate |
15.00% |
|
|
|
Number of Payments |
120 |
|
|
|
Monthly Payment |
16,133.50 |
|
|
Number |
Payment |
Interest |
Principal |
Balance |
0 |
|
|
|
1,000,000.00 |
1 |
16,133.50 |
12,500.00 |
3,633.50 |
996,366.50 |
2 |
16,133.50 |
12,454.58 |
3,678.91 |
992,687.59 |
3 |
16,133.50 |
12,408.59 |
3,724.90 |
988,962.69 |
4 |
16,133.50 |
12,362.03 |
3,771.46 |
985,191.23 |
5 |
16,133.50 |
12,314.89 |
3,818.61 |
981,372.62 |
6 |
16,133.50 |
12,267.16 |
3,866.34 |
977,506.28 |
7 |
16,133.50 |
12,218.83 |
3,914.67 |
973,591.62 |
8 |
16,133.50 |
12,169.90 |
3,963.60 |
969,628.02 |
9 |
16,133.50 |
12,120.35 |
4,013.15 |
965,614.87 |
10 |
16,133.50 |
12,070.19 |
4,063.31 |
961,551.56 |
11 |
16,133.50 |
12,019.39 |
4,114.10 |
957,437.46 |
12 |
16,133.50 |
11,967.97 |
4,165.53 |
953,271.93 |
13 |
16,133.50 |
11,915.90 |
4,217.60 |
949,054.34 |
14 |
16,133.50 |
11,863.18 |
4,270.32 |
944,784.02 |
15 |
16,133.50 |
11,809.80 |
4,323.70 |
940,460.32 |
16 |
16,133.50 |
11,755.75 |
4,377.74 |
936,082.58 |
17 |
16,133.50 |
11,701.03 |
4,432.46 |
931,650.12 |
18 |
16,133.50 |
11,645.63 |
4,487.87 |
927,162.25 |
19 |
16,133.50 |
11,589.53 |
4,543.97 |
922,618.28 |
20 |
16,133.50 |
11,532.73 |
4,600.77 |
918,017.51 |
21 |
16,133.50 |
11,475.22 |
4,658.28 |
913,359.24 |
22 |
16,133.50 |
11,416.99 |
4,716.51 |
908,642.73 |
23 |
16,133.50 |
11,358.03 |
4,775.46 |
903,867.27 |
24 |
16,133.50 |
11,298.34 |
4,835.15 |
899,032.12 |
25 |
16,133.50 |
11,237.90 |
4,895.59 |
894,136.52 |
26 |
16,133.50 |
11,176.71 |
4,956.79 |
889,179.73 |
27 |
16,133.50 |
11,114.75 |
5,018.75 |
884,160.98 |
28 |
16,133.50 |
11,052.01 |
5,081.48 |
879,079.50 |
29 |
16,133.50 |
10,988.49 |
5,145.00 |
873,934.50 |
30 |
16,133.50 |
10,924.18 |
5,209.31 |
868,725.18 |
31 |
16,133.50 |
10,859.06 |
5,274.43 |
863,450.75 |
32 |
16,133.50 |
10,793.13 |
5,340.36 |
858,110.39 |
33 |
16,133.50 |
10,726.38 |
5,407.12 |
852,703.28 |
34 |
16,133.50 |
10,658.79 |
5,474.70 |
847,228.57 |
35 |
16,133.50 |
10,590.36 |
5,543.14 |
841,685.43 |
36 |
16,133.50 |
10,521.07 |
5,612.43 |
836,073.00 |
37 |
16,133.50 |
10,450.91 |
5,682.58 |
830,390.42 |
38 |
16,133.50 |
10,379.88 |
5,753.62 |
824,636.81 |
39 |
16,133.50 |
10,307.96 |
5,825.54 |
818,811.27 |
40 |
16,133.50 |
10,235.14 |
5,898.35 |
812,912.92 |
41 |
16,133.50 |
10,161.41 |
5,972.08 |
806,940.83 |
42 |
16,133.50 |
10,086.76 |
6,046.74 |
800,894.10 |
43 |
16,133.50 |
10,011.18 |
6,122.32 |
794,771.78 |
44 |
16,133.50 |
9,934.65 |
6,198.85 |
788,572.93 |
45 |
16,133.50 |
9,857.16 |
6,276.33 |
782,296.59 |
46 |
16,133.50 |
9,778.71 |
6,354.79 |
775,941.81 |
47 |
16,133.50 |
9,699.27 |
6,434.22 |
769,507.58 |
48 |
16,133.50 |
9,618.84 |
6,514.65 |
762,992.93 |
49 |
16,133.50 |
9,537.41 |
6,596.08 |
756,396.85 |
50 |
16,133.50 |
9,454.96 |
6,678.54 |
749,718.31 |
51 |
16,133.50 |
9,371.48 |
6,762.02 |
742,956.30 |
52 |
16,133.50 |
9,286.95 |
6,846.54 |
736,109.75 |
53 |
16,133.50 |
9,201.37 |
6,932.12 |
729,177.63 |
54 |
16,133.50 |
9,114.72 |
7,018.78 |
722,158.85 |
55 |
16,133.50 |
9,026.99 |
7,106.51 |
715,052.34 |
56 |
16,133.50 |
8,938.15 |
7,195.34 |
707,857.00 |
57 |
16,133.50 |
8,848.21 |
7,285.28 |
700,571.72 |
58 |
16,133.50 |
8,757.15 |
7,376.35 |
693,195.37 |
59 |
16,133.50 |
8,664.94 |
7,468.55 |
685,726.82 |
60 |
16,133.50 |
8,571.59 |
7,561.91 |
678,164.91 |
61 |
16,133.50 |
8,477.06 |
7,656.43 |
670,508.47 |
62 |
16,133.50 |
8,381.36 |
7,752.14 |
662,756.33 |
63 |
16,133.50 |
8,284.45 |
7,849.04 |
654,907.29 |
64 |
16,133.50 |
8,186.34 |
7,947.15 |
646,960.14 |
65 |
16,133.50 |
8,087.00 |
8,046.49 |
638,913.64 |
66 |
16,133.50 |
7,986.42 |
8,147.08 |
630,766.57 |
67 |
16,133.50 |
7,884.58 |
8,248.91 |
622,517.65 |
68 |
16,133.50 |
7,781.47 |
8,352.03 |
614,165.63 |
69 |
16,133.50 |
7,677.07 |
8,456.43 |
605,709.20 |
70 |
16,133.50 |
7,571.37 |
8,562.13 |
597,147.07 |
71 |
16,133.50 |
7,464.34 |
8,669.16 |
588,477.91 |
72 |
16,133.50 |
7,355.97 |
8,777.52 |
579,700.39 |
73 |
16,133.50 |
7,246.25 |
8,887.24 |
570,813.15 |
74 |
16,133.50 |
7,135.16 |
8,998.33 |
561,814.82 |
75 |
16,133.50 |
7,022.69 |
9,110.81 |
552,704.01 |
76 |
16,133.50 |
6,908.80 |
9,224.70 |
543,479.31 |
77 |
16,133.50 |
6,793.49 |
9,340.00 |
534,139.31 |
78 |
16,133.50 |
6,676.74 |
9,456.75 |
524,682.56 |
79 |
16,133.50 |
6,558.53 |
9,574.96 |
515,107.59 |
80 |
16,133.50 |
6,438.84 |
9,694.65 |
505,412.94 |
81 |
16,133.50 |
6,317.66 |
9,815.83 |
495,597.11 |
82 |
16,133.50 |
6,194.96 |
9,938.53 |
485,658.58 |
83 |
16,133.50 |
6,070.73 |
10,062.76 |
475,595.81 |
84 |
16,133.50 |
5,944.95 |
10,188.55 |
465,407.26 |
85 |
16,133.50 |
5,817.59 |
10,315.90 |
455,091.36 |
86 |
16,133.50 |
5,688.64 |
10,444.85 |
444,646.51 |
87 |
16,133.50 |
5,558.08 |
10,575.41 |
434,071.09 |
88 |
16,133.50 |
5,425.89 |
10,707.61 |
423,363.48 |
89 |
16,133.50 |
5,292.04 |
10,841.45 |
412,522.03 |
90 |
16,133.50 |
5,156.53 |
10,976.97 |
401,545.06 |
91 |
16,133.50 |
5,019.31 |
11,114.18 |
390,430.88 |
92 |
16,133.50 |
4,880.39 |
11,253.11 |
379,177.77 |
93 |
16,133.50 |
4,739.72 |
11,393.77 |
367,784.00 |
94 |
16,133.50 |
4,597.30 |
11,536.20 |
356,247.80 |
95 |
16,133.50 |
4,453.10 |
11,680.40 |
344,567.40 |
96 |
16,133.50 |
4,307.09 |
11,826.40 |
332,741.00 |
97 |
16,133.50 |
4,159.26 |
11,974.23 |
320,766.77 |
98 |
16,133.50 |
4,009.58 |
12,123.91 |
308,642.85 |
99 |
16,133.50 |
3,858.04 |
12,275.46 |
296,367.39 |
100 |
16,133.50 |
3,704.59 |
12,428.90 |
283,938.49 |
101 |
16,133.50 |
3,549.23 |
12,584.26 |
271,354.23 |
102 |
16,133.50 |
3,391.93 |
12,741.57 |
258,612.66 |
103 |
16,133.50 |
3,232.66 |
12,900.84 |
245,711.82 |
104 |
16,133.50 |
3,071.40 |
13,062.10 |
232,649.72 |
105 |
16,133.50 |
2,908.12 |
13,225.37 |
219,424.35 |
106 |
16,133.50 |
2,742.80 |
13,390.69 |
206,033.66 |
107 |
16,133.50 |
2,575.42 |
13,558.07 |
192,475.58 |
108 |
16,133.50 |
2,405.94 |
13,727.55 |
178,748.03 |
109 |
16,133.50 |
2,234.35 |
13,899.15 |
164,848.89 |
110 |
16,133.50 |
2,060.61 |
14,072.88 |
150,776.00 |
111 |
16,133.50 |
1,884.70 |
14,248.80 |
136,527.21 |
112 |
16,133.50 |
1,706.59 |
14,426.91 |
122,100.30 |
113 |
16,133.50 |
1,526.25 |
14,607.24 |
107,493.06 |
114 |
16,133.50 |
1,343.66 |
14,789.83 |
92,703.23 |
115 |
16,133.50 |
1,158.79 |
14,974.71 |
77,728.52 |
116 |
16,133.50 |
971.61 |
15,161.89 |
62,566.63 |
117 |
16,133.50 |
782.08 |
15,351.41 |
47,215.22 |
118 |
16,133.50 |
590.19 |
15,543.31 |
31,671.91 |
119 |
16,133.50 |
395.90 |
15,737.60 |
15,934.32 |
120 |
16,133.50 |
199.18 |
15,934.32 |
0.00 |
Loan amount x rpm x (1+pm)
(1+pm)
- rpm= interest per month (rate of interest per year/12)
- n= number of installments
NB: If you have a fixed budget towards EMI you can arrive at loan amount by changing the other variables such as by reducing the rate of interest or by increasing the tenure of loan. This can also be arrived at through EMI calculator by a trial-and-error approach.
Indian Currency
B) Banknotes
The volume and value of banknotes to be printed in a year depends on various factors such as (i) the expected increase in Notes in Circulation (NIC) to meet the growing needs of the public and (ii) the need for replacing soiled/mutilated notes so as to ensure that only good quality notes are in circulation. The expected increase in NIC is estimated using statistical models which consider macro-economic factors such as expected growth in GDP, inflation, interest rates, growth in non-cash modes of payment etc. The replacement requirement depends on the volume of notes already in circulation and the average life of banknotes. The Reserve Bank estimates the volume and value of notes to be printed in a year based on the above factors as well as feedback received from its own Regional Offices and banks regarding expected demand for cash and finalises the same in consultation with the Government of India and the printing presses.
Core Investment Companies
Core Investment Companies (CICs)
Ans: Public funds are not the same as public deposits. Public funds include public deposits, inter-corporate deposits, bank finance and all funds received whether directly or indirectly from outside sources such as funds raised by issue of Commercial Papers, debentures etc. However, even though public funds include public deposits in the general course, it may be noted that CICs/CICs-ND-SI cannot accept public deposits.
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
Foreign Investment in India
FAQs on Non-Banking Financial Companies
Inter-corporate deposits (ICDs)
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Procedure for submission of the FLA return
Ans: Any query regarding filling of FLA return should be sent by email. We will revert back to you within one or two working days.
External Commercial Borrowings (ECB) and Trade Credits
F. LEVERAGE CRITERIA AND BORROWING LIMIT
Government Securities Market in India – A Primer
"When, as and if issued" (commonly known as ‘When Issued’) security refers to a security that has been authorized for issuance but not yet actually issued. When Issued trading takes place between the time a Government Security is announced for issuance and the time it is actually issued. All 'When Issued' transactions are on an 'if' basis, to be settled if and when the actual security is issued. RBI vide its notification FMRD.DIRD.03/14.03.007/2018-19 dated July 24, 2018 has issued When Issued Transactions (Reserve Bank) Directions, 2018 applicable to ‘When Issued’ transactions in Central Government securities.
Both new and reissued Government securities issued by the Central Government are eligible for ‘When Issued’ transactions. Eligibility of an issue for ‘When Issue’ trades would be indicated in the respective specific auction notification. Participants eligible to undertake both net long and short position in ‘When Issued’ market are (a) All entities which are eligible to participate in the primary auction of Central Government securities,(b) However, resident individuals, Hindu Undivided Families (HUF), Non-Resident Indians (NRI) and Overseas Citizens of India (OCI) are eligible to undertake only long position in ‘When Issued’ securities. (c) Entities other than scheduled commercial banks and Primary Dealers (PDs), shall close their short positions, if any, by the close of trading on the date of auction of the underlying Central Government security.
When Issued transactions would commence after the issue of a security is notified by the Central Government and it would cease at the close of trading on the date of auction. All ‘When Issued’ transactions for all trade dates shall be contracted for settlement on the date of issue. When Issued’ transactions shall be undertaken only on the Negotiated Dealing System-Order Matching (NDS-OM) platform. However, an existing position in a ‘When Issued’ security may be closed either on the NDS-OM platform or outside the NDS-OM platform, i.e., through Over-the-Counter (OTC) market. The open position limits are prescribed in the directions. All NDS-OM members participating in the ‘When Issued’ market are required to have in place a written policy on ‘When Issued’ trading which should be approved by the Board of Directors or equivalent body.
"Short sale" means sale of a security one does not own. RBI vide its notification FMRD.DIRD.05/14.03.007/2018-19 dated July 25, 2018 has issued Short Sale (Reserve Bank) Directions, 2018 applicable to ‘Short Sale’ transactions in Central Government dated securities. Banks may treat sale of a security held in the investment portfolio as a short sale and follow the process laid down in these directions. These transactions shall be referred to as ‘notional’ short sales. For the purpose of these guidelines, short sale would include 'notional' short sale.
Entities eligible to undertake short sales are (a) Scheduled commercial banks, (b) Primary Dealers, (c) Urban Cooperative Banks as permitted under circular UBD.BPD (PCB). Circular No.9/09.29.000/2013-14 dated September 4, 2013 and (d) Any other regulated entity which has the approval of the concerned regulator (SEBI, IRDA, PFRDA, NABARD, NHB). The maximum amount of a security (face value) that can be short sold is (a) for Liquid securities: 2% of the total outstanding stock of each security, or, ₹ 500 crore, whichever is higher; (b) for other securities: 1% of the total outstanding stock of each security, or, ₹ 250 crore, whichever is higher. The list of liquid securities shall be disseminated by FIMMDA/FBIL from time to time. Short sales shall be covered within a period of three months from the date of transaction (inclusive of the date). Banks undertaking ‘notional’ short sales shall ordinarily borrow securities from the repo market to meet delivery obligations, but in exceptional situations of market stress (e.g., short squeeze), it may deliver securities from its own investment portfolio. If securities are delivered out of its own portfolio, it must be accounted for appropriately and reflect the transactions as internal borrowing. It shall be ensured that the securities so borrowed are brought back to the same portfolio, without any change in book value.
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
National Common Mobility Card (NCMC) issued by Paytm Payments Bank
Coordinated Portfolio Investment Survey – India
Some important definitions and concepts
Ans: Debt securities with original maturity of more than one year is classified as long-term debt securities. These include bonds, debentures, and notes that usually give the holder the unconditional right to a fixed cash flow or contractually determined variable money income.
Retail Direct Scheme
Know Your Customer (KYC) related queries
Domestic Deposits
II. Deposits of Non-Residents Indians (NRIs)
Indian Currency
B) Banknotes
All banknotes issued by RBI are backed by assets such as gold, Government Securities and Foreign Currency Assets, as defined in Section 33 of RBI Act, 1934.
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
Foreign Investment in India
Answer: There are no restrictions under FEMA for investment in Rights shares issued at a discount by an Indian company under the provisions of the Companies Act, 2013. The offer on rights basis to the persons resident outside India shall be:
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in case of shares of a company listed on a recognized stock exchange in India, at a price, as determined by the company; and
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in case of shares of a company not listed on a recognized stock exchange in India, at a price, which is not less than the price at which the offer on right basis is made to resident shareholders.
FAQs on Non-Banking Financial Companies
Mutual benefit financial companies (nidhis)
Coordinated Portfolio Investment Survey – India
Some important definitions and concepts
Ans: Debt securities with original maturity of one year or less is classified as short-term debt securities. Examples of short-term securities are treasury bills, negotiable certificates of deposit, bankers’ acceptances, promissory notes, and commercial paper.
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
Merchants using Paytm Payments Bank to receive payments
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Procedure for submission of the FLA return
Ans: Please follow the below given step to revise the FLA return for a previous year:
Visit https://flair.rbi.org.in/fla/faces/pages/login.xhtml → Login to FLAIR → Click on MENU tab on the left-hand side of the homepage → ONLINE FLA FORM → FLA ONLINE FORM → “Please click here to get the approval to fill revised FLA form for current year after due date /previous year” → select "Year" and click on → Click “Request”.
Your request status will be visible in the table below available on the screen. After sending request to RBI through FLA portal, entities need to wait for at least one working day for approval. Entities can check the status of their request in “Multiple Year Enable Screen” under menu on the left corner. Once approved by DSIM, RBI, the entity can revise FLA return for selected year.
External Commercial Borrowings (ECB) and Trade Credits
G. ALL-IN-COST
Government Securities Market in India – A Primer
The time value of money functions related to calculation of Present Value (PV), Future Value (FV), etc. are important mathematical concepts related to bond market. An outline of the same with illustrations is provided in Box II below.
Time Value of Money Money has time value as a Rupee today is more valuable and useful than a Rupee a year later. The concept of time value of money is based on the premise that an investor prefers to receive a payment of a fixed amount of money today, rather than an equal amount in the future, all else being equal. In particular, if one receives the payment today, one can then earn interest on the money until that specified future date. Further, in an inflationary environment, a Rupee today will have greater purchasing power than after a year. Present value of a future sum The present value formula is the core formula for the time value of money. The present value (PV) formula has four variables, each of which can be solved for: Present Value (PV) is the value at time=0 ![]() The cumulative present value of future cash flows can be calculated by adding the contributions of FVt, the value of cash flow at time=t ![]() An illustration Taking the cash flows as;
Assuming that the interest rate is at 10% per annum; The discount factor for each year can be calculated as 1/(1+interest rate)^no. of years The present value can then be worked out as Amount x discount factor The PV of ₹100 accruing after 3 years:
The cumulative present value = 90.91+82.64+75.13 = ₹ 248.69 Net Present Value (NPV) Net present value (NPV) or net present worth (NPW) is defined as the present value of net cash flows. It is a standard method for using the time value of money to appraise long-term projects. Used for capital budgeting, and widely throughout economics, it measures the excess or shortfall of cash flows, in present value (PV) terms, once financing charges are met. Formula Each cash inflow/outflow is discounted back to its present value (PV). Then they are summed. Therefore ![]() Where In the illustration given above under the Present value, if the three cash flows accrues on a deposit of ₹ 240, the NPV of the investment is equal to 248.69-240 = ₹ 8.69 |
Core Investment Companies
Core Investment Companies (CICs)
Ans: Indirect receipt of public funds means funds received not directly but through associates and group entities which have access to public funds.
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
The details are as under:
i. Ashoka Pillar Banknotes:
The first banknote issued by independent India was the one rupee note issued in 1949. While retaining the same designs the new banknotes were issued with the symbol of Lion Capital of Ashoka Pillar at Sarnath in the watermark window in place of the portrait of King George.
The name of the issuer, the denomination and the guarantee clause were printed in Hindi on the new banknotes from the year 1951. The banknotes in the denomination of ₹1000, ₹5000 and ₹10000 were issued in the year 1954. Banknotes in Ashoka Pillar watermark Series, in ₹10 denomination were issued between 1967 and 1992, ₹20 denomination in 1972 and 1975, ₹50 in 1975 and 1981, and ₹100 between 1967-1979. The banknotes issued during the above period, contained the symbols representing science and technology, progress, orientation to Indian Art forms. In the year 1970, banknotes with the legend "Satyameva Jayate", i.e., truth alone shall prevail were introduced for the first time. In October 1987, ₹500, banknote was introduced with the portrait of Mahatma Gandhi and the Ashoka Pillar watermark.
ii. Mahatma Gandhi (MG) Series 1996
The details of banknotes issued in MG Series – 1996 is as under:
Denomination | Month and year of introduction |
₹5 | November 2001 |
₹10 | June 1996 |
₹20 | August 2001 |
₹50 | March 1997 |
₹100 | June 1996 |
₹500 | October 1997 |
₹1000 | November 2000 |
All the banknotes of this series bear the portrait of Mahatma Gandhi on the obverse (front) side, in place of symbol of Lion Capital of Ashoka Pillar, which has also been retained and shifted to the left side next to the watermark window. This means that these banknotes contain Mahatma Gandhi watermark as well as Mahatma Gandhi's portrait.
iii. Mahatma Gandhi series – 2005 banknotes
MG series 2005 banknotes were issued in the denomination of ₹10, ₹20, ₹50, ₹100, ₹500 and ₹1000 and contain some additional/new security features as compared to the 1996 MG series. The year of introduction of these banknotes is as under:
Denomination | Month and year of Introduction |
₹50 and ₹100 | August 2005 |
₹500 and ₹1000 | October 2005 |
₹10 | April 2006 |
₹20 | August 2006 |
The Legal tender of banknotes of ₹500 and ₹1000 of this series was subsequently withdrawn w.e.f. the midnight of November 8, 2016.
iv. Mahatma Gandhi (New) Series (MGNS) – Nov 2016
The Mahatma Gandhi (New) Series, introduced in the year 2016, highlights the cultural heritage and scientific achievements of the country. The banknotes in the series are more wallet friendly, being of reduced dimensions and hence expected to incur less wear and tear. For the first time, designs for banknotes has been indigenously developed on themes reflecting the diverse history, culture and ethos of the country as also its scientific achievements. The colour scheme is sharp and vivid to make the banknotes distinctive.
The first banknote from the new series was introduced on November 8, 2016 and is a new denomination, ₹2000-with the theme of Mangalyaan. Subsequently, banknotes in this series in denomination of ₹500, ₹200, ₹100, ₹50, ₹20 and ₹10 have also been introduced.
Core Investment Companies
Core Investment Companies (CICs)
Ans: Yes, CICs may be required to issue guarantees or take on other contingent liabilities on behalf of their group entities. Guarantees per se do not fall under the definition of public funds. However, it is possible that CICs which do not accept public funds take recourse to public funds if and when the guarantee devolves. Hence, before doing so, CICs must ensure that they can meet the obligation there under, as and when they arise. In particular, CICs which are exempt from registration requirement must be in a position to do so without recourse to public funds in the event the liability devolves. If unregistered CICs with asset size above Rs. 100 crore access public funds without obtaining a Certificate of Registration (CoR) from RBI, they will be seen as violating Core Investment Companies (Reserve Bank) Directions, 2011 dated January 05, 2011.
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
Foreign Investment in India
Answer: No, renunciation of rights shares shall be done in accordance with the instructions contained in Para 6.11 of Master Direction - Foreign Investment in India dated January 4, 2018, read with Regulation 6 of FEMA 20(R).
FAQs on Non-Banking Financial Companies
Mutual benefit financial companies (nidhis)
Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999
Some Useful Definitions
Ans: Direct investment is a category of international investment in which a resident entity in one economy [Direct Investor (DI)] acquires a lasting interest in an enterprise resident in another economy [Direct Investment Enterprise (DIE)]. It consists of two components, viz., Equity Capital and Other Capital.
External Commercial Borrowings (ECB) and Trade Credits
G. ALL-IN-COST
Government Securities Market in India – A Primer
The price of a bond is nothing but the sum of present value of all future cash flows of the bond. The interest rate used for discounting the cash flows is the Yield to Maturity (YTM) (explained in detail in question no. 24) of the bond. Price can be calculated using the excel function ‘Price’ (please refer to Annex 6).
Accrued interest is the interest calculated for the broken period from the last coupon day till a day prior to the settlement date of the trade. Since the seller of the security is holding the security for the period up to the day prior to the settlement date of the trade, he is entitled to receive the coupon for the period held. During settlement of the trade, the buyer of security will pay the accrued interest in addition to the agreed price and pays the ‘consideration amount’.
An illustration is given below;
For a trade of ₹ 5 crore (face value) of security 8.83% 2023 for settlement date Jan 30, 2014 at a price of ₹100.50, the consideration amount payable to the seller of the security is worked out below:
Here the price quoted is called ‘clean price’ as the ‘accrued interest’ component is not added to it.
Accrued interest:
The last coupon date being Nov 25, 2013, the number of days in broken period till Jan 29, 2014 (one day prior to settlement date i.e. on trade day) are 65.
The accrued interest on ₹100 face value for 65 days | = 8.83 x (65/360) |
= ₹1.5943 |
When we add the accrued interest component to the ‘clean price’, the resultant price is called the ‘dirty price’. In the instant case, it is 100.50+1.5943 = ₹102.0943
The total consideration amount | = Face value of trade x dirty price |
= 5,00,00,000 x (102.0943/100) | |
= ₹ 5,10,47,150 |
Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024
Merchants using Paytm Payments Bank to receive payments
Coordinated Portfolio Investment Survey – India
Some important definitions and concepts
Ans: Equity securities should be reported at market prices converted to domestic currency using the exchange rate prevailing at March 31/ September 30, [Year]. For enterprises listed on a stock exchange, the market value of your holding of the equity securities should be calculated using the market price on the main stock exchange prevailing at March 31/ September 30, [Year]. For unlisted enterprises, if a market value is not available at the close of business on March 31/ September 30, [Year], estimate of the market value of your holding of equity securities can be calculated by using one of the six alternatives methods given in Q23.
Debt securities should be recorded at market prices converted to domestic currency, using the exchange rate prevailing at the close of business on March 31/ September 30, [Year]. For listed debt securities, a quoted traded market price at the close of business on March 31/ September 30, [Year], should be used. When market prices are unavailable (e.g., in the case of unlisted debt securities), the following methods for estimating fair value (which is an approximation of the market value of such instruments) should be used:
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discounting future cash flows to the present value using a market rate of interest and
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using market prices of financial assets and liabilities that are similar.
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
₹500, ₹1000 and ₹10000 banknotes, which were then in circulation were demonetized in January 1946. The higher denomination banknotes in ₹1000, ₹5000 and ₹10000 were reintroduced in the year 1954, and these banknotes (₹1000, ₹5000 and ₹10000) were again demonetized in January 1978.
Recently, banknotes in the denomination of ₹500 and ₹1000 issued under the Mahatma Gandhi Series have been withdrawn from circulation with effect from the midnight of November 08, 2016 and are, therefore, no more legal tender.
As regards prohibition on holding, transferring or receiving specified bank notes, Section 5 of The Specified Banknotes (Cessation of Liabilities) Act, 2017 reads as under:
On and from the appointed day, no person shall, knowingly or voluntarily, hold, transfer or receive any specified bank note:
Provided that nothing contained in this section shall prohibit the holding of specified bank notes—
(a) by any person—
(i) up to the expiry of the grace period; or
(ii) after the expiry of the grace period,—
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not more than ten notes in total, irrespective of the denomination; or
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not more than twenty-five notes for the purposes of study, research or numismatics;
(b) by the Reserve Bank or its agencies, or any other person authorised by the Reserve Bank;
(c) by any person on the direction of a court in relation to any case pending in the court
Directions and Circulars issued by RBI from time to time in connection with SBNs are available on our website www.rbi.org.in under Function wise sites>>Issuer of Currency>>All You Wanted Know About SBNs. All You wanted to know from RBI about Withdrawal of Legal Tender Status of ₹ 500 and ₹ 1000 Notes
Core Investment Companies
Core Investment Companies (CICs)
Ans: For the purposes of determining whether a company is a CIC/CIC-ND-SI, ‘companies in the group’ have been exhaustively defined in para 3(1) b of Notification No. DNBS. (PD) 219/CGM(US)-2011 dated January 5, 2011 as “an arrangement involving two or more entities related to each other through any of the following relationships, viz.,Subsidiary – parent (defined in terms of AS 21), Joint venture (defined in terms of AS 27), Associate (defined in terms of AS 23), Promoter-promotee [as provided in the SEBI (Acquisition of Shares and Takeover) Regulations, 1997] for listed companies, a related party (defined in terms of AS 18) Common brand name, and investment in equity shares of 20% and above).”
All you wanted to know about NBFCs
B. Entities Regulated by RBI and applicable regulations
Foreign Investment in India
Answer: Yes, subject to conditions laid down in para 7.11 of the Master Direction on Foreign Investment in 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: It covers (1) foreign equity in branches and all shares (except non-participating preference shares) in subsidiaries and associates; (2) contributions such as the provision of machinery, land & building(s) by a direct investor to a DIE by equity participation; (3) acquisition of shares by a DIE in its direct investor company, termed as reverse investment (i.e. claims on DI).