Banks should pay interest at the originally contracted rate on the deposit amount for the holiday/Sunday/Non-business working day intervening between the date of expiry of the specified term of the deposit and the date of payment of the proceeds of the deposits on the succeeding working day.

No. General permission has been given to authorised dealers to allow such collectivised remittances, on a periodic basis.

Travellers are allowed to purchase foreign currency notes/coins only up to US$ 2000. Balance amount can be taken in the form of traveller’s cheque or banker’s draft. Exceptions to this are (a) travellers proceeding to Iraq and Libya can draw foreign exchange in the form of foreign currency notes and coins not exceeding US$ 5000 or its equivalent; (b) travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of Commonwealth of Independent States can draw entire foreign exchange released in form of foreign currency notes or coins.

• Extant tax provisions will be applicable on interest payment and capital gains on IIBs.

• There will be no special tax treatment for these bonds.

• These securities will be issued in the form of Bonds Ledger Account (BLA).

• The securities in the form of BLA will be issued and held with RBI and thus, RBI will act as central depository.

• A certificate of holding will be issued to the holder of securities in BLA.

Ans. No. The acquirer banks (other than local area banks) may, based on the approval of their Board, provide cash withdrawal facility at PoS terminals. The local area banks shall require the approval of RBI for providing this facility.

Only an Indian Company engaged in financial sector activities can make investment in the financial services sector provided it fulfills the following norms besides complying with the parameters indicated at Answers to the Question Nos. 14 and 28.has earned net profit during the preceding three financial years from the financial services activities;is registered with the appropriate regulatory authority in India for conducting financial services activities;has a minimum net worth of Rs.15 crores as on the date of the last audited balance sheet; andhas fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India.

The non-competitive bidder will make payment to the aggregator or facilitator through which he has put the bid and receive his securities from them.

Ans. RTGS system enables participants to initiate and receive payments for inter-bank / non-bank / customer transactions. NEFT system allows members to send and receive transactions of retail nature electronically. Membership to NEFT is, however, relevant to non-bank PPI issuers only.

RTGS system also enables eligible members to post MNSB transactions, do Own Account Transfers (OAT) between current account and settlement account in RTGS. In the context of Q.7 above, MNSB transactions are relevant for Card Networks only.

Ans. i) Payment outside India towards a permissible current account transaction [in accordance with the provisions of the Foreign Exchange Management (Current Account Transactions) Rules, 2000] and permissible capital account transaction [in accordance with the Foreign Exchange Management (Permissible Capital Account Transactions) Regulations, 2000].

ii) Payment in foreign exchange towards cost of goods purchased from a 100 percent Export Oriented Unit or a Unit in (a) Export Processing Zone or (b) Software Technology Park or (c) Electronic Hardware Technology Park

iii) Payment of customs duty in accordance with the provisions of the Foreign Trade Policy of the Central Government for the time being in force.

iv) Trade related loans/advances, extended by an exporter holding such account to his importer customer outside India, subject to compliance with the Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000.

v) Payment in foreign exchange to a person resident in India for supply of goods/services including payments for airfare and hotel expenditure.