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Survey on Foreign Liabilities and Assets (FLA) of Mutual Fund (MF) Companies and their Asset Management Companies (AMCs) in India

3. Which entities are required to participate in the survey?

Ans.:MF companies in India are required to participate in this survey.

3. Which are the banks in India presently enabled for sending remittances through the UPI-PayNow linkage? +

Banks in India presently enabled for sending remittances through the UPI-PayNow linkage are:

ICICI Bank
Indian Bank
Indian Overseas Bank
State Bank of India

3. Does the legal tender status of ₹2000 banknotes remain? +

Yes. The ₹2000 banknote will continue to maintain its legal tender status.

Q.3 In case DLG is invoked due to a default occurring in portfolio, can the subsequent recoveries made from the borrowers on the defaulted amount be added back to the DLG cover?

Ans: No. DLG amount once invoked by the RE cannot be reinstated, including through loan recovery. Please also refer to our answer to Q.1. Kindly see illustrations at the end.

3. Is there any limit on number of such transactions? How many such remittances can be sent in a year? +

Ans: There is no limit on remittances if the sender is maintaining account with any NEFT enabled bank-branch in India. Walk-in / Non-customers are allowed to remit 12 remittances in a year with ceiling of ₹50,000 per remittance.

3. Is it mandatory to obtain LEI in case of transactions to and from a non-resident’s account with an AD bank in India? +

Ans. Any debit from or credit to a non-resident’s account in India as a result of a transaction with a resident will attract the provisions of Foreign Exchange Management Act, 1999 (FEMA) and hence, the provisions contained in the circular shall apply.

3. As per the framework, unallocated proceeds of green deposits can be invested in liquid instruments with maturity up to one year only. What are these "liquid instruments"? Is there a requirement that temporary allocation of proceeds is only for a period of one year? Will there be any penalty if the REs are not able to allocate the proceeds of green deposits?

The liquid instruments are Level 1 High Quality Liquid Assets as per the extant guidelines.
The REs can temporarily park proceeds of green deposits, pending allocation towards green activities/ projects, in liquid instruments with maximum maturity upto one year (This will have to be specified under the Financing Framework).
The framework does not envisage any penalty for non-allocation of proceeds towards green activities/ projects; however, it shall be subject to supervisory review.

3. What are the usages of debit cards? +

Ans: The debit cards can be used to withdraw cash from an ATM, purchase of goods and services at points of sale (PoS) terminals or e-commerce (online purchase). They can be used domestically, or internationally.

Q3. Can a resident person undertake forex transactions on internet / electronic trading portals? +

Answer: Permitted forex transactions executed electronically should be undertaken only on electronic trading platforms (ETPs) authorised for the purpose by the Reserve Bank of India (RBI) or on recognized stock exchanges (National Stock Exchange of India Ltd. (NSE), BSE Ltd. (BSE) and Metropolitan Stock Exchange of India Ltd. (MSE)) as per the terms and conditions specified by RBI from time to time. The list of authorised ETPs is available here. As per FEMA, resident persons are not permitted to undertake forex transactions on unauthorised ETPs.

Resident persons undertaking forex transactions on unauthorised ETPs shall render themselves liable for penal action under FEMA.

3. Can education loans be availed from banks without collateral?

RBI issued circular RPCD.SME&NFS.BC.No.69/06.12.05/2009-10 dated April 12, 2010, on Collateral Free Loans - Educational Loan Scheme, making it mandatory that banks must not obtain collateral security in the case of education loans upto ₹4 lakh.