FAQ Page 1 - ਆਰਬੀਆਈ

RbiAnnouncementWeb

FAQ DetailPage Breadcrumb

Search Bar

Search Results

Coordinated Portfolio Investment Survey – India

Some important definitions and concepts

Q16. What to report in equity securities?

Ans: Equity consists of all instruments and records that acknowledge claims on the residual value of a corporation or quasi-corporation, after the claims of all creditors have been met. Equity may be split into listed shares, unlisted shares, and other equity. Both listed and unlisted shares are equity securities. Equity securities are commonly called shares or stocks. Other equity is equity that is not in the form of securities.

All you wanted to know about NBFCs

B. Entities Regulated by RBI and applicable regulations

16. What does the term public funds include? Is it the same as public deposits? +

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.Further, indirect receipt of public funds means funds received not directly but through associates and group entities which have access to public funds.

Foreign Investment in India

Q.16: Are the investments and profits earned in India repatriable ? +

Answer: All foreign investments are repatriable (net of applicable taxes) except in cases where the investment is made or held on non-repatriation basis.

FAQs on Non-Banking Financial Companies

Ceiling on deposits

16. Whether a company not complying with the prudential norms can raise public deposits ? +

A. A company not complying with prudential norms cannot accept public deposits.

Annual Return on Foreign Liabilities and Assets (FLA) under FEMA 1999

Eligible entities and requirements to submit the FLA return

Q16. Is it required to submit any financial statements like balance sheet or P&L accounts (audited/ unaudited) along with the FLA return? +

Ans: No, balance sheet or profit and loss (P&L) accounts are not required to be submitted along with the FLA return.

External Commercial Borrowings (ECB) and Trade Credits

F. LEVERAGE CRITERIA AND BORROWING LIMIT

16. Does the equity in “ECB liability to Equity ratio” include non-convertible preference capital? +

No.

Government Securities Market in India – A Primer

16. How do the G-Sec transactions settle? +

Primary Market

16.1 Once the allotment process in the primary auction is finalized, the successful participants are advised of the consideration amounts that they need to pay to the Government on settlement day. The settlement cycle for auctions of all kind of G-Secs i.e. dated securities, T-Bills, CMBs or SDLs, is T+1, i.e. funds and securities are settled on next working day from the conclusion of the trade. On the settlement date, the fund accounts of the participants are debited by their respective consideration amounts and their securities accounts (SGL accounts) are credited with the amount of securities allotted to them.

Secondary Market

16.2 The transactions relating to G-Secs are settled through the member’s securities / current accounts maintained with the RBI. The securities and funds are settled on a net basis i.e. Delivery versus Payment System-III (DvP-III). CCIL guarantees settlement of trades on the settlement date by becoming a central counter-party (CCP) to every trade through the process of novation, i.e., it becomes seller to the buyer and buyer to the seller. 16.3 All outright secondary market transactions in G-Secs are settled on a T+1 basis. However, in case of repo transactions in G-Secs, the market participants have the choice of settling the first leg on either T+0 basis or T+1 basis as per their requirement. RBI vide FMRD.DIRD.05/14.03.007/2017-18 dated November 16, 2017 had permitted FPIs to settle OTC secondary market transactions in Government Securities either on T+1 or on T+2 basis and in such cases, It may be ensured that all trades are reported on the trade date itself.

Business restrictions imposed on Paytm Payments Bank Limited vide Press Releases dated January 31 and February 16, 2024

FASTag issued by Paytm Payments Bank

16. I have a FASTag issued by Paytm Payments Bank. Can I recharge the balance after March 15, 2024? +

No. After March 15, 2024 you will not be able to top-up or recharge your FASTag issued by Paytm Payments Bank. It is suggested that you procure a new FASTag issued by another bank before March 15, 2024 to avoid any inconvenience.

Domestic Deposits

II. Deposits of Non-Residents Indians (NRIs)

16. Whether concessional rate of interest is applicable when loan against FCNR(B) deposit is repaid in foreign currency? +

Banks have freedom to fix the rate of interest chargeable on loans and advances against FCNR(B) deposits to the depositors without reference to their Benchmark Prime Lending Rate (BPLR) irrespective of whether repayment is made in Rupees or Foreign Currency.

Biennial survey on Foreign Collaboration in Indian Industry (FCS)

Some other important points to be noted

Q16. How to identify the reporting company? +

Ans.: Please read the definitions of foreign subsidiary, foreign associate, Pure Technical Collaboration and accordingly select the type of reporting company. Further, if you have chosen “Others” in identification of reporting company, please specify.

Core Investment Companies

Core Investment Companies (CICs)

16. Whether CICs having asset size below Rs. 100 crore are regulated by the Reserve Bank? +

Ans: CICs having asset size of below Rs 100 crore are exempted from registration and regulation from the Reserve Bank, except if they wish to make overseas investments in the financial sector.

Retail Direct Scheme

Know Your Customer (KYC) related queries

16. How does the video KYC process work? +

Upload a scanned copy of your PAN card.
Download the XML version of your Aadhaar from the UIDAI website and upload it. Use the 4-digit pin specified while downloading XML version.
Provide address details, scanned copy of your signature, bank account details and nominee details.
Complete the video KYC by choosing a time slot for later or immediately, depending on the availability at that point of time.
Authenticate the user agreement form by Aadhaar using the OTP sent on your mobile number linked to Aadhaar.

Targeted Long Term Repo Operations (TLTROs)

FAQs pertaining to On Tap TLTRO/ reversal of TLTRO/ TLTRO 2.0 transactions

Q16: Whether banks need to first borrow from RBI under the on tap TLTRO scheme and then disburse under eligible assets or alternatively, can the banks first create eligible assets and then avail funds before 31 March 2021? +

Ans: Banks can use either of the alternatives. However, the request of the bank will be subject to availability of funds as on date of application i.e., funds cannot be guaranteed in case the total amount of ₹1,00,000 crore is already availed.

Housing Loans

16. What are the minimum standards that banks are required to follow when they sell you a home loan? +

At the time of sourcing the loan, banks are required to provide information about the interest rate applicable, the fees / charges and any other matter which affects your interest and the same are usually furnished in the product brochure of the banks. Complete transparency is mandatory.
The banks will supply you authenticated copies of all the loan documents executed by you at their cost along with a copy each of all enclosures quoted in the loan document on request.

A bank cannot reject your loan application without furnishing valid reason(s) for the same.

Indian Currency

B) Banknotes

8. What is non-sequential numbering? +

With a view to enhancing operational efficiency and cost effectiveness in banknote printing, non-sequential numbering was introduced in 2011 consistent with international best practices. Packets of banknotes with non-sequential numbering contain 100 notes which are not sequentially numbered.

Core Investment Companies

Core Investment Companies (CICs)

17. As per the definition of CIC, only investment/loans/debt in group companies is eligible for computing 90% exposure? What treatment is to be given to company’s investment in group’s partnership concerns? +

Ans: CICs are prohibited from contributing capital to any partnership firm or to be partners in partnership firms including Limited Liability Partnerships (LLPs) or any association of person similar in nature to partnership firms.

All you wanted to know about NBFCs

B. Entities Regulated by RBI and applicable regulations

17. What are the various prudential regulations applicable to NBFCs? +

The Bank has issued detailed directions on prudential norms, vide Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 and Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015. Applicable regulations vary based on the deposit acceptance or systemic importance of the NBFC.

The directions inter alia, prescribe guidelines on income recognition, asset classification and provisioning requirements applicable to NBFCs, exposure norms, disclosures in the balance sheet, requirement of capital adequacy, restrictions on investments in land and building and unquoted shares, loan to value (LTV) ratio for NBFCs predominantly engaged in business of lending against gold jewellery, besides others. Deposit accepting NBFCs have also to comply with the statutory liquidity requirements. Details of the prudential regulations applicable to NBFCs holding deposits and those not holding deposits is available in the section ‘Regulation – Non-Banking – Notifications - Master Circulars’ in the RBI website.

Foreign Investment in India

Q.17: What is meant by investment on repatriation basis and investment on non-repatriation basis ? +

Answer: Investment on repatriation basis means an investment, the sale/ maturity proceeds of which are, net of taxes, eligible to be repatriated out of India. The expression investment on non-repatriation basis may be construed accordingly.

FAQs on Non-Banking Financial Companies

Inter-corporate deposits (ICDs)

17. If a company being a shareholder of a public limited NBFC gives deposit or loan to the latter one, whether such a loan is to be treated as public deposit or ICD ? +

The objective of exempting the intercorporate deposits from the purview of Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998 is that the corporate bodies whether a shareholder or a non-shareholder should be able to appraise the loan proposals and ensure the safety of the funds lent. Hence, such loans will be treated as ICDs.