₹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Recently, banknotes in the denomination of ₹500 and ₹1000 issued under the Mahatma Gandhi Series have been withdrawn from circulation with effect from the midnight of November 08, 2016, and are, therefore, no more legal tender.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, -

1. not more than ten notes in total, irrespective of the denomination; or

2. 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 - https://rbi.org.in/web/rbi/currency-management/all-you-wanted-to-know-about-sbns.

Ans: Yes, as they are regulated by RBI, they would require prior approval from Department of  Regulation (DoR) for making investments in the financial sector. However, a registered CIC making investments in the non-financial sector need not obtain prior approval from the Department of Regulation (DoR), RBI. The registered CICs will only need to report such investments to the Department within 30 days of such investment.

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:

• discounting future cash flows to the present value using a market rate of interest and

• using market prices of financial assets and liabilities that are similar.

The new classification norms shall come into effect on the basis of NBFCs Balance Sheet as on March 31, 1999. The classification of an NBFC into a specific sub-group is decided on the basis of its principal business as disclosed in its latest audited Balance Sheet and Profit & Loss Account.

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).

In respect of deposit accepted in the name of –

1. member or a retired member of the bank’s staff, either singly or jointly with any other member or members of his/ her family, or

2. the spouse of a deceased member or a deceased retired member of the bank’s staff,

the bank may, in its discretion, allow additional interest at a rate not exceeding one per cent per annum over and above the rate of interest stipulated, subject to the condition that overall ceiling prescribed for FCNR(B) deposits is not breached,

Provided that –

1. the depositor or all the depositors of a joint account is/ are non-resident/s of Indian nationality or origin, and

2. the bank shall obtain a declaration from the depositor concerned that the moneys so deposited or which may, from time to time, be deposited, shall be moneys belonging to the depositor as stated in clause (a) and (b) above.

Explanation: The word “family” shall mean and include the spouse of the member/ retired member of the bank’s staff, his/her children, parents, brothers and sisters who are dependent on such a member/ retired member but shall not include a legally separated spouse.