FAQ Page 1 - ఆర్‌బిఐ

RbiAnnouncementWeb

FAQ DetailPage Breadcrumb

Search Bar

Search Results

FAQs on Non-Banking Financial Companies

Net owned fund

13. The NBFCs have been advised that the definition of Net Owned Fund (NOF) has been modified to include preference shares. Whether the entire preference share capital would be included in the NOF ? It may also be clarified whether the new definition of NOF would be applicable to minimum entry point norm of Rs. 25.00 lakh for Registration . +

The definition of NOF has been provided in Section 45IA of the Reserve Bank of India Act, 1934. This definition would be applicable to the computation of minimum capital fund for the purpose of Statutory Registration of an NBFC with the Reserve Bank of India. For the purpose of acceptance of public deposit and compliance of the prudential norms, the definition of NOF has been modified and it would include the paid up amount of preference shares which are compulsorily convertible into equity. However, the redeemable preference share capital would not be included in the definition of NOF or the Owned Fund.

External Commercial Borrowings (ECB) and Trade Credits

E. AVERAGE MATURITY PERIOD

13. Can door-to-door maturity be used in lieu of average maturity? +

No.

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

Paytm Payments Bank Wallet

13. I have a cashback due in my wallet with Paytm Payments Bank. Can I receive this cashback after March 15, 2024? +

Yes. Refunds and cashbacks are allowed to be credited.

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

Eligible entities and requirements to submit the FLA return

Q13. Is it required to submit Annual Performance Report for ODI if we have submitted FLA Return? +

Ans: FLA return and Annual Performance Report (APR) for ODI are two different returns and monitored by two different departments of RBI. So, you are required to submit both the returns if these are applicable for your entity. For more information on APR, please refer to the Master Direction – Reporting under Foreign Exchange Management Act, 1999 on RBI’s website.

Biennial survey on Foreign Collaboration in Indian Industry (FCS)

Some important definitions and concepts

Q13. What is a foreign subsidiary? +

Ans.: An Indian company is called as a Foreign Subsidiary if a non-resident investor owns more than 50 per cent of the voting power / equity capital or where a non-resident investor and its subsidiary(s) combined own more than 50 per of the voting power / equity capital of an Indian enterprise.

Government Securities Market in India – A Primer

13. Why does the price of G-Sec change? +

The price of a G-Sec, like other financial instruments, keeps fluctuating in the secondary market. The price is determined by demand and supply of the securities. Specifically, the prices of G-Secs are influenced by the level and changes in interest rates in the economy and other macro-economic factors, such as, expected rate of inflation, liquidity in the market, etc. Developments in other markets like money, foreign exchange, credit, commodity and capital markets also affect the price of the G-Secs. Further, developments in international bond markets, specifically the US Treasuries affect prices of G-Secs in India. Policy actions by RBI (e.g., announcements regarding changes in policy interest rates like Repo Rate, Cash Reserve Ratio, Open Market Operations, etc.) also affect the prices of G-Secs.

Retail Direct Scheme

Know Your Customer (KYC) related queries

13. What are the ways of doing my KYC verification for Retail Direct Gilt (RDG) account? +

There are two ways of doing KYC verification – CKYC based and video KYC.

Housing Loans

13. Can you repay your loan ahead of schedule? Is pre-payment of loan allowed? +

Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, many banks charge early repayment penalties up to 2-3% of the principal amount outstanding. Prepayment penalty may vary according to the reasons and source of funds - if you obtain a loan from another bank for pre-payment the charges are usually higher than when you pay from your own sources. However, you may credit more than your EMI amount into your loan account on a periodic basis and bring down your interest burden as and when funds are available with you. Most banks do not charge a pre-payment penalty if you deposit more than your EMI payable on a periodic basis. Please check such stipulations while availing the loan.

Indian Currency

B) Banknotes

5. What is currency paper made up of? +

The paper currently being used for printing of banknotes in India is made by using 100% cotton.

Coordinated Portfolio Investment Survey – India

What to report under CPIS?

Q14. If the responding entity does not have any portfolio investment assets during the reference period, do they need to participate in the survey?

Ans: If the responding entity does not have any portfolio investment asset during the reference period, then that entity is required to submit NIL survey schedule to the generic email ID of the Reserve Bank as per the instruction in the survey schedule.