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FAQs on Overseas Direct Investment

Q.16 What is core activity ? +

Core activity means activities carried by an Indian party, which constitutes at least 50% of its average turnover in the previous accounting year.

Q.16. If promoter group companies (where public holding is less than 51 per cent) wish to apply for banking license, whether any grace period will be given to such companies to increase public holding to over 51 per cent? +

At the time of making applications, the Promoters/Promoter Group will have to furnish a road map and methodologies they would adopt to comply with all the requirements of the corporate structure indicated in para 2 (C)(ii) and (iii) of the guidelines and realign the business between the entities to be held under the NOFHC [para 2(C)(iv) of the guidelines] within a period of 18 months. After the ‘in-principle approval’ is accorded by RBI for setting up of the bank, the actual setting up of NOFHC and the bank, re-organization of the Promoter Group entities to bring the regulated financial services entities under the NOFHC as well as realignment of business among the entities under the NOFHC have to be completed within a period of 18 months from the date of in-principle approval or before commencement of banking business, whichever is earlier.

16. Whether premature redemption is allowed? +

Yes premature redemption is allowed.
For senior citizens above 65 years, the premature redemption is allowed after one year. For others, it is allowed after 3 years.
Penalty at the rate of half of the last payable coupon will be charged from the investors. For example, if last payable coupon is Rs. 1,000/-, then Rs. 500 would be charged as penalty..

Q 16: Can balances in Special Rupee Vostro account be used for FDI, ECB?

Answer: Balance in SRVA is like foreign exchange inflow converted into INR, hence balance can be used for any permissible current and capital account transaction under the present FEMA framework.

16. If I apply, am I assured of allotment? +

If the customer meets the eligibility criteria, produces a valid identification document and remits the application money on time, he/she will receive the allotment.

These FAQs are issued by the Reserve Bank of India for information and general guidance purposes only. The Bank will not be held responsible for actions taken and/or decisions made on the basis of the same. For clarifications or interpretations, if any, one may be guided by the relevant circulars and notifications issued from time to time by the Bank.

Q 16. How can a borrower find about the current interest rates being charged on the microfinance loans? +

Ans. RBI has made it mandatory for lenders to display the minimum, maximum and average interest rates charged on microfinance loans in all their offices, in the literature (information booklets/ pamphlets) issued by them and details on their website.

Q.16. If the subsidiary of Indian company is not financially sound can they submit a Letter of Comfort from their parent company which is an Indian company? +

Ans. No

16. Can a bank offer loan abroad to the account holder and can the lending institution mark lien on such deposits? +

Please refer to the FAQ (updated as on September 13, 2013) on “Features of various Deposit Schemes available for Non-Resident Indians” available on the RBI website (link: http://www.rbi.org.in/scripts/FAQView.aspx?Id=69). Banks are permitted to extend loans to the FCNR (B) account holders and mark lien on such deposits.

¹ Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram

16. Can there be more than one user under one GAH? +

Yes. Under one GAH, a PM can create as many users as they wish. The users created by the PM will have to be approved by the NDS OM Web Admin at CCIL.

Q.17. What are the processing / service charges levied under ECS Credit?

Ans : The Reserve Bank of India has deregulated the charges to be levied by sponsor banks from user institutions. The sponsor banks are, however, required to disclose the charges in a transparent manner. With effect from 1st July 2011, originating banks are required to pay a nominal charge of 25 paise per transaction to the Clearing house and destination bank respectively. Destination bank branches have been directed to afford ECS Credit free of charge to the beneficiary account holders.

ECS (DEBIT)

"1 A 'person resident in India' is defined in Section 2(v) of FEMA, 1999 as : (i) a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year but does not include- (A) a person who has gone out of India or who stays outside India, in either case- (a) for or on taking up employment outside India, or (b) for carrying on outside India a business or vocation outside India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period; (B) a person who has come to or stays in India, in either case, otherwise than- (a) for or on taking up employment in India, or (b) for carrying on in India a business or vocation in India, or (c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period; (ii) any person or body corporate registered or incorporated in India, (iii) an office, branch or agency in India owned or controlled by a person resident outside India, (iv) an office, branch or agency outside India owned or controlled by a person resident in India."

17. How will the aggregator or facilitator make partial allotment? +

It will be responsibility of aggregator or facilitator to allocate securities to their clients in the same manner (either full or partial) in which they have been allotted the bids.

17. What happens if the complaint is not settled by agreement ? +

If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an Award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the complainant and the bank, to present their case.It is up to the complainant to accept the award in full and final settlement of or to reject it.

17. Whether banks can accept recurring deposits under FCNR(B) Scheme ? +

No. Banks cannot accept recurring deposits under FCNR (B) Scheme.

Q.17 What is financial commitment ? +

Financial commitment means the amount of direct investment outside India by way of contribution to equity and loans and 50% of the amount of guarantee issued by an Indian party to or on behalf of its overseas JV/WOS.

17. Is one permitted to use International Credit Card (ICC) for undertaking foreign exchange transactions?

Use of the International Credit Cards (ICCs) / ATMs/ Debit Cards can be made for making personal payments like subscription to foreign journals, internet subscription, etc., and for travel abroad in connection with various purposes only to the extent of the limits specified above. However, the cards can be freely used in India. Use of these instruments for payment in foreign exchange in Nepal and Bhutan is not permitted.

Q.17. Can there be an appeal against the order of the Compounding Authority? +

Ans. As compounding is based on voluntary admissions and disclosures, there is no provision under the of Foreign Exchange (Compounding Proceedings) Rules, 2000, for an appeal against the order of the Compounding Authority or for a request for reduction of amount imposed or extension of period for payment of the amount imposed.

17. Why are digital certificate and a e-token required for login to the NDS-OM Web Module? +

GAH will be accessing the NDS OM Web Based Module over the internet. To prevent unauthorized access and to ensure non-repudiation, RBI has stipulated that a digital certificate has to be obtained for each GAH User from IDRBT. The digital certificate has to be installed in an e-token which provides the second layer of security. Before a GAH User is created by the PM, the PM has to ensure that the digital certificate and the e-token have been procured for the GAH User.

17. ‘ಕನಿಷ್ಠ ವಿವರ ಪಿಪಿಐ’ ಇನ್ನು ಮುಂದೆ ಅಗತ್ಯವಿಲ್ಲದಿದ್ದರೆ ಹಾಗೂ ಮುಕ್ತಾಯಗೊಳಿಸಬೇಕಾದರೆ ಬಾಕಿ ಇರುವ ಶಿಲ್ಕು ಏನಾಗುತ್ತದೆ? +

ಉತ್ತರ. ಪಿಪಿಐದಾರರು ಯಾವುದೇ ಸಮಯದಲ್ಲಿ ಪಿಪಿಐ ಅನ್ನು ಮುಕ್ತಾಯಗೊಳಿಸುವ ಹಾಗೂ ಕೆವೈಸಿ ಅಗತ್ಯತೆಗಳನ್ನು ಅನುಸರಿಸಿದ ನಂತರ ಅವನ/ಅವಳ ‘ಸ್ವಂತ ಬ್ಯಾಂಕ್ ಖಾತೆಗೆ’ ಬಾಕಿ ಇರುವ ಶಿಲ್ಕನ್ನು ವರ್ಗಾಯಿಸುವ ಆಯ್ಕೆಯನ್ನು ಹೊಂದಿರುತ್ತಾರೆ. ಮುಕ್ತಾಯಗೊಳಿಸುವ ಖಾತೆಯ ಆದಾಯವನ್ನು ವರ್ಗಾಯಿಸಲು ಅಂತಹ ವರ್ಗಾವಣೆಗೆ ಅವಕಾಶ ನೀಡುವ ಮೊದಲು ‘ಪಿಪಿಐ ನೀಡಿಕೆದಾರರಿಂದ ಸರಿಯಾಗಿ ಪರಿಶೀಲಿಸಬೇಕು. ಪಿಪಿಐದಾರರು ಮುಕ್ತಾಯಗೊಳಿಸುವ ಸಮಯದಲ್ಲಿ ‘ಮೂಲಕ್ಕೆ ಹಿಂದೆ’ [ಪಿಪಿಐ ಲೋಡ್ ಮಾಡಿದ ಸ್ಥಳದಿಂದ ಪಾವತಿಯ ಮೂಲಕ್ಕೆ] ಹಣವನ್ನು ವರ್ಗಾಣೆ ಮಾಡಬಹುದು.

17. ವಾರ್ಷಿಕ ಎಟಿಎಮ್ ಡೆಬಿಟ್ ಕಾರ್ಡ್ ಶುಲ್ಕ ವಿಧಿಸಲು ಬ್ಯಾಂಕುಗಳು ಸ್ವತಂತ್ರರೇ? +

ಬ್ಯಾಂಕುಗಳು ಎಟಿಎಮ್ ಡೆಬಿಟ್ ಕಾರ್ಡುಗಳನ್ನು ಉಚಿತವಾಗಿ ಕೊಡಬೇಕು ಮತ್ತು ಅಂತಹ ಕಾರ್ಡುಗಳಿಗೆ ವಾರ್ಷಿಕ ಶುಲ್ಕವನ್ನು ವಿಧಿಸಬಾರದು.

17. ಎಟಿಎಮ್ಗಳಲ್ಲಿ ಕ್ರೆಡಿಟ್ ಕಾರ್ಡ್ಗಳ ಬಳಕೆಗಾಗಿ ಹಾಗೂ ವಿದೇಶದಲ್ಲಿರುವ ಎಟಿಎಮ್ಗಳಲ್ಲಿ ಹಣಹಿಂಪಡೆಯುವುದಕ್ಕಾಗಿ ಆರ್ಬಿಐ ನಿಗದಿಪಡಿಸಿರುವ ಶುಲ್ಕಗಳು ಯಾವುವು? +

ಉತ್ತರ. ಕೆಳಗಿನ ಪ್ರಕಾರದ ನಗದು ಹಿಂಪಡೆಯುವ ವಹಿವಾಟುಗಳಿಗಾಗಿ ಸೇವಾ ಶುಲ್ಕಗಳನ್ನು ಬ್ಯಾಂಕ್ ಸ್ವತಹ ನಿರ್ಧರಿಸಬಹುದು: ಎ) ಕ್ರೆಡಿಟ್ ಕಾರ್ಡ್ಗಳ ಬಳಕೆಯೊಂದಿಗೆ ನಗದು ಹಿಂಪಡೆಯುವಿಕೆ. ಬಿ) ವಿದೇಶದಲ್ಲಿರುವ ಎಟಿಎಮ್ನಲ್ಲಿ ನಗದು ಹಿಂಪಡೆಯುವಿಕೆ.

17. Would the remitting customer get back the money if it is not credited to the beneficiary's account? Is there any time frame prescribed for it? +

Ans. Yes, if it is not possible to credit the funds to the beneficiary customer’s account for any reason, the funds received by the RTGS member bank will be returned to the originating bank within one hour of receipt of the payment at the Payment Interface (PI) or before the end of the RTGS Business day, whichever is earlier. Once the money is received back by the remitting bank, the original debit entry in the customer's account needs to be reversed.

Q17: Whether there is any restriction, with respect to Primary/Secondary market investments for funds availed under on Tap TLTRO scheme, should a bank desire to opt for acquiring specified securities issued by entities in specified sectors?

Ans: There is no restriction with respect to primary/ secondary market investments in specified securities under the on Tap TLTRO scheme.

17. Will the following categories of loans be classified as personal loans:

“Loan Against Property” loans which are availed for business purpose but are secured by immovable assets

Loans granted to individuals where the property is in name of individual and a related company/non individual entity has been taken as co-borrower on the loan structure to supplement the income for repayment of loan.

If not, where would such set of customers would be covered for Covid-19 related stress?

In terms of the circular DBR.No.BP.BC.99/08.13.100/2017-18 dated January 4, 2018, the above exposures do not qualify as personal loans. In such cases, the resolution of eligible borrowers may be undertaken under Part B of the Annex to the Resolution Framework.

17. What do you do if you have a grievance?

If you have a complaint against only scheduled bank on any of the above grounds, you can lodge a complaint with the bank concerned in writing in a specific complaint register provided at the branches as per the recommendation of the Goiporia Committee or on a sheet of paper. Ask for a receipt of your complaint. The details of the official receiving your complaint may be specifically sought. If the bank fails to respond within 30 days, you can lodge a complaint with the Banking Ombudsman. (Please note that complaints pending in any other judicial forum will not be entertained by the Banking Ombudsman). No fee is levied by the office of the Banking Ombudsman for resolving the customer’s complaint. A unique complaint identification number will be given to you for tracking purpose. (A list of the Banking Ombudsmen along with their contact details is provided on the RBI website).

Complaints are to be addressed to the Banking Ombudsman within whose jurisdiction the branch or office of the bank complained against is located. Complaints can be lodged simply by writing on a plain paper or online at www.bankingombudsman.rbi.org.in or by sending an email to the Banking Ombudsman. Complaint forms are available at all bank branches also.

Complaint can also be lodged by your authorised representative (other than a lawyer) or by a consumer association / forum acting on your behalf.

If you are not happy with the decision of the Banking Ombudsman, you can appeal to the Appellate Authority in the Reserve Bank of India.

17. When will the customers be issued Holding Certificate? +

The customers will be issued Certificate of Holding on the date of issuance of the SGB. Certificate of Holding can be collected from the issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents or obtained directly from RBI on email, if email address is provided in the application form.

These FAQs are issued by the Reserve Bank of India (hereinafter referred to as “Bank”) for information and general guidance purposes only. The Bank will not be held responsible for actions taken and / or decisions made on the basis of the same. For clarifications or interpretations, if any, one may be guided by the relevant circulars, guidelines and notifications issued from time to time by the Bank.

17. Is there any further recourse available if one rejects the Ombudsman’s decision ? +

Yes, the Scheme provides the appellate mechanism for the complainant as well as the System Participant.Any person aggrieved by an Award issued under Clause 12 or by the decision of the Ombudsman rejecting the complaint for the reasons specified in sub-clause (d) to (g) of Clause 13 of the Scheme, can approach the Appellate Authority.The Appellate Authority is vested with a Deputy Governor-in-Charge of the department of the RBI implementing the Scheme. The address of the Appellate Authority is:The Appellate AuthorityOmbudsman Scheme for Digital TransactionsConsumer Education and Protection DepartmentReserve Bank of IndiaFirst Floor, Amar Building, Fort, Mumbai 400 001.The complainant also has the option to explore other recourse and/or remedies available as per the law.

17. Whether the G S Act provides for nomination facility? +

Yes. The G S Act provides for nomination facility for a Government security other than in the form of GPN and bearer bond. The sole holder or all the joint holders of such a Government security may nominate one or more persons, who in the event of death of the sole holder or the death of all the joint holders, would become entitled to the Government security and payment thereon.

17. Can the BLA be gifted/transferred to a relative or friend on some occasion? +

No, the BLAs cannot be gifted/transferred to any relative or friend. Transferability of the Bond Ledger Account shall be limited to nominee or to the legal heir of an individual holder, only in the event of death of the declarant.

17. Query: Can banks hedge their gold exposures arising from operation of GMS? +

Response: Yes.

17. What will be the day count for IIBs? +

Like other G-Secs, the day count for IIBs would 30/360.

Q.17. How does the committee resolve the stress in the accounts under the Framework ? +

The Committee may explore various options to resolve the stress in the account. The Committee shall not endeavour to encourage a particular resolution option and may decide the CAP as per the specific requirements and position of each case. The options under CAP by the Committee may include:

(i) Rectification;

(ii) Restructuring;

(iii) Recovery

For more details you may refer to circular no. FIDD.MSME & NFS.BC.No.21/06.02.31/2015-16 dated March 17, 2016.

17. Is one required to surrender foreign coins also to an authorised dealer? +

There is no restriction on residents holding foreign coins.

17. What is the Help Desk / Contact point at the RBI? +

Ans: The NEFT Help Desk / Contact point of the RBI can be approached at nefthelpdeskncc@rbi.org.in.

17. What are the processing / service charges levied under ECS Credit? +

The Reserve Bank of India has deregulated the charges to be levied by sponsor banks from user institutions. The sponsor banks are, however, required to disclose the charges in a transparent manner. With effect from 1st July 2011, originating banks are required to pay a nominal charge of 25 paise per transaction to the Clearing house and destination bank respectively. Destination bank branches have been directed to afford ECS Credit free of charge to the beneficiary account holders.

17. What will be the Corporation's liability to the banks on de-registration. +

The Corporation has deposit insurance liability on liquidation etc. of "Insured banks" i.e. banks which have been de-registered (a) on account of prohibition on receiving fresh deposits or (b) on cancellation of license or it is found that license cannot be granted. The liability of the Corporation in these cases is limited to the extent of deposits as on the date of cancellation of registration of bank as an insured bank.

On liquidation etc. of other de-registered banks i.e. banks which have been de-registered on other grounds such as non payment of premium or their ceasing to be eligible co-operative banks under section 2(gg) of the DICGC Act, 1961, the Corporation will have no liability.

Notice: Information given above is to convey the basic provisions of the deposit insurance scheme of the Corporation. The information is of a non-technical nature and is not intended to be a legal interpretation of the deposit insurance scheme.

17. How do I redeem these securities? +

In case of redemption prematurely before the maturity date, investors can approach the concerned bank few days before the coupon date and apply.
In case of redemption on maturity, the investor will be advised one month before maturity regarding the ensuing maturity of the bond advising them to provide a Letter of Acquaintance, confirming the NEFT account details, etc.
If everything is in order, the investor has to be paid immediately on the maturity date for payments through electronic mode and within maximum five days for any payment through physical instruments.

Q.17. Where the Promoter Group is required to make changes to its existing organization/ investment structure, would the RBI consider a transition period, during which regulations would be waived on a case by case basis so that the existing entity is afforded an easy transition without impacting the stakeholders and for ease of operations? +

Illustration

(Please refer to the answer to the Question No. 8 above)

A. At the time of entering into a sell/buy swap with RBI A bank enters into a swap deal with RBI for a swap tenor for 1235 days on 19 September 2013.
Near/Spot leg		23 Sep 2013
Far Leg (Spot leg plus tenor of 1235 days)		09 Feb 2017
	Near leg (Buy for RBI)	Far Leg (Sell for RBI)
Value Dates	23 Sep 2013	09 Feb 2017
Swap Amount (Principal)	USD 1 million	USD 1 million
USD-INR Rates	62.6390	70.4419*
* Computed by compounding the near leg rate of 62.6390 at 3.5 per cent semi-annually for the tenor of the swap, i.e. 1235 days. Transaction with RBI: On September 19, 2013, the bank will enter into a sell/buy swap with RBI for USD one million at 62.6390/70.4419. The sell leg is undertaken at that day’s RBI reference rate. B. At the time of cancellation/ termination of the swap consequent upon premature withdrawal of the underlying FCNR (B) deposits If the swap is terminated after 756 days, the residual tenor of the swap would stand at 479 days. The swap cost would be re-fixed as under: Revised swap cost to be applied for the completed tenor of the swap (756 days) would be equal to 14.9 % (3.5%+4.0%+7.4%). It is assumed that the prevailing USDINR swap rate for residual tenor of 469 days at the time of cancellation is 7.4%. The revised swap cost would be adjusted in the first leg of the new swap transaction (buy/sell) to be undertaken by the bank with RBI.
New Swap to be undertaken at the time of cancellation of existing swap	Near leg (Sell for RBI)	Far Leg (Buy for RBI)
Value Dates	19 Oct 2015	09 Feb 2017
Rates	84.3561	70.4419
Transaction with RBI: On October 15, 2015, the bank will enter into a buy/sell swap with RBI for USD one million at 84.3561/70.4419.

Q.17. Can AD bank approve for extension of the project account after the tenure of the project for genuine reasons like completion of warranty period, statutory works like Income tax assessments, VAT assessments, Service tax assessments, to make arrangements for the sale of assets etc. +

Ans. Yes, under intimation to Reserve Bank, FED, CO Cell, Sansad Marg, New Delhi 110 001.

17. QueryAre the banks free to levy Annual ATM Debit Card charges? +

Response

Banks should offer the ATM Debit Cards free of charge and no Annual fee should be levied on such Cards.

17. Is there any further recourse available if one rejects the NBFC Ombudsman’s decision ? +

Yes, the Scheme provides the appellate mechanism for the complainant as well as the NBFC.

Any person aggrieved by an Award issued under Clause 12 or by the decision of the NBFC Ombudsman rejecting the complaint for the reasons specified in sub-clause (c) to (f) of Clause 13 of the Scheme, can approach the Appellate Authority.

The Appellate Authority is vested with a Deputy Governor-in-Charge of the department of the RBI implementing the Scheme. The address of the Appellate Authority is :

The Appellate Authority
Ombudsman Scheme for Non-Banking Financial Companies
Consumer Education and Protection Department
Reserve Bank of India
First Floor, Amar Building
Fort, Mumbai 400 001.

The complainant also has the option to explore other recourse and/or remedies available as per the law.

17. What are the guidelines on provision for training of franchisees? +

Franchisers are expected to impart training to the franchisees as regards operations and maintenance of records.

17. If non-competitive bidding amount is more than the amount reserved, how will the RBI allot the non-competitive bids ? +

In case the aggregate amount bid is more than the reserved amount through non-competitive bidding, allotment would be made on a pro rata basis.

Example:

Suppose, the amount reserved for allotment in non competitive basis is 10 crore. The total amount bid at the auction for Non competitive segment is 12 crore. The partial allotment percentage is =10/12=83.33%.

The actual allocation in the auction will be as follows:

Bidder	Bid Amount	Allotment
Bank1	2 crore	1,66,70,000/-
Bank2	3 crore	2,50,00,000/-
PD1	1 crore	83,30,000/-
PD2	1 crore	83,30,000/-
Bank3	5 crore	4,16,70,000/-

It may be noted that the actual allotment may vary slightly at times from the partial allotment ratio due to rounding off with a view to ensuring that the allotted amounts are in multiples of 10,000/-.

¹ 7.1.5. Issuance of non-credit products shall be with full consent of the borrowers and fee structure for such products shall be explicitly communicated to the borrower in the loan card itself.

² in their offices, on their websites as part of Fair Practices Code and in the loan card issued to the borrower

³ 7.1.1 A FPC based on these directions shall be put in place by all REs with the approval of their boards. The FPC shall be displayed by the RE in all its offices and on its website. The FPC should be issued in a language understood by the borrower.

⁴ 2.1 The provisions of these directions shall apply to the following entities:

All Commercial Banks (including Small Finance Banks, Local Area Banks, and Regional Rural Banks) excluding Payments Banks;
All Primary (Urban) Co-operative Banks/ State Co-operative Banks/ District Central Co-operative Banks; and
All Non-Banking Financial Companies (including Microfinance Institutions and Housing Finance Companies).

⁵ Exemptions from Sections 45-IA3, 45-IB4 and 45-IC5 of the RBI Act, 1934 have been withdrawn for those ‘not for profit’ companies engaged in microfinance activities that have asset size of ₹100 crore and above.

Q 17: What are the different types of investment where surplus balance can be invested?

Answer: Investment in Government Treasury Bills, Government securities is permitted in terms of extant guidelines and prescribed limits. Other than these, avenues of investments can be mutually agreed between the countries subject to compliance with applicable regulatory and statutory guidelines.

Q.18. Who can initiate a ECS Debit transaction?

Ans : ECS Debit transaction can be initiated by any institution (called ECS Debit User) which has to receive / collect amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc. It is a Scheme under which an account holder with a bank branch can authorise an ECS User to recover an amount at a prescribed frequency by raising a debit to his / her bank account.

The User institution has to first register with an ECS Centre. The User institution has to also obtain the authorization (mandate) from its customers for debiting their account along with their bank account particulars prior to participation in the ECS Debit scheme. The mandate has to be duly verified by the beneficiary’s bank. A copy of the mandate should be available on record with the destination bank where the customer has a bank account.

18. What are the guidelines in respect of Reporting, Audit and Inspection of franchisees? +

The franchisers, i.e. ADs Category–I Banks / ADs Category–II / FFMCs are expected to put in place adequate arrangements for reporting of transactions by the franchisees to the franchisers on a regular basis (at least monthly). Regular spot audits of all locations of franchisees, at least once in six months, should be conducted by the franchiser. Such audits should involve a dedicated team and incognito visits should also be used to test the compliance level of the franchisees. A system of annual inspection of the books of the franchisees should also be put in place. The purpose of such inspection is to ensure that the money changing business is being carried out by the franchisees in conformity with the terms of the agreement and prevailing Reserve Bank guidelines and that necessary records are being maintained by the franchisees.

18. Is there any further recourse available if one rejects the Banking Ombudsman’s decision ? +

Any person aggrieved by an Award issued under Clause 12 or the decision of the Banking Ombudsman rejecting the complaint for the reasons specified in sub-clause (d) to (g) of Clause 13 of the Banking Ombudsman Scheme 2006 (As amended up to July 1, 2017) can approach the Appellate Authority. The Appellate Authority is vested with a Deputy Governor of the RBI.Other recourse and/or remedies available to him/her as per the law can also be explored. The bank also has the option to file an appeal before the Appellate Authority under the Scheme.

18. And if the amount bid through non-competitive bidding is less than the reserved amount ? +

In case the aggregate amount bid is less than the reserved amount all the applicants will be allotted in full and the shortfall amount will be taken to the competitive portion.

Q.18 Can one extend loan or guarantee to an overseas entity without any equity participation in that entity ? +

No. Loan and guarantee could be extended to an overseas entity only if there is already an equity participation by the Indian party in such entity.

18. While coming into India how much Indian currency can be brought in?
+

A person coming in to India from abroad can bring in with him Indian currency notes within the limits given below: a. upto Rs. 5,000 from any country other than Nepal or Bhutan, and b. any amount in denomination not exceeding Rs.100 from Nepal or Bhutan.

18. Why the Operational Risk Control Parameters? +

Before a GAH User can start dealing on the NDS-OM Web Module, the PM has to set certain operational risk controls as well as limits for each GAH/GAH User, since PM will continue to be responsible for the settlement of trades done by such GAHs. Accordingly PMs have the facility to set operational risk controls in respect of their GAHs who would be given access to NDS-OM Web so as to mitigate risk arising out of their GAH trades. Every order inputted by GAH on NDS-OM Web would be subject to validations against each risk control set by PM before being passed on to the common order book of NDS-OM. Risk Management involves PM’s setting risk limits for GAHs before the GAHs can start trading.

Q.18. What is the timeframe for completing the compounding process? +

Ans. The compounding process is completed within 180 days from the date of receipt of the application complete in all aspects, by the Reserve Bank.

18. ಎಟಿಎಮ್ನಲ್ಲಿನ ಬ್ಯಾಲೆನ್ಸ್ ವಿಚಾರಣೆಯನ್ನು ಬಿಎಸ್ಬಿಡಿಎಯಲ್ಲಿ ಸಿಗುವ 4 ವಿಥ್ಡ್ರಾವಲ್ಗಳಲ್ಲಿ ಸೇರಿಸಬೇಕೆ ? +

ಎಟಿಎಮ್ನಲ್ಲಿನ ಬ್ಯಾಲೆನ್ಸ್ ವಿಚಾರಣೆಯನ್ನು ಬಿಎಸ್ಬಿಡಿಎಯಲ್ಲಿ ಸಿಗುವ 4 ಉಚಿತ ವಿಥ್ಡ್ರಾವಲ್ಗಳಲ್ಲಿ ಸೇರಿಸಬಾರದು.

18. ಇತರ ಬ್ಯಾಂಕ್ ಎಟಿಎಮ್ಗಳು/ಡಬ್ಲ್ಯೂಎಲ್ಎಗಳಲ್ಲಿ ಎಟಿಎಮ್ ವಹಿವಾಟು ವಿಫಲವಾದ ಸಂದರ್ಭದಲ್ಲಿ, ಅವನ/ಅವಳ ಖಾತೆಗೆ ಡೆಬಿಟ್ ಮಾಡಿದಾಗ ಗ್ರಾಹಕರು ಯಾವ ಕ್ರಮವನ್ನು ತೆಗೆದುಕೊಳ್ಳಬೇಕು? +

ಉತ್ತರ. ಸ್ವಂತ ಬ್ಯಾಂಕ್ ಎಟಿಎಮ್/ಇತರ ಬ್ಯಾಂಕ್ ಎಟಿಎಮ್/ಡಬ್ಲ್ಯೂಎಲ್ಎಯಲ್ಲಿ ಕಾರ್ಡ್ ಬಳಕೆಯನ್ನು ಲೆಕ್ಕಿಸದೇ , ಗ್ರಾಹಕರು ಕಾರ್ಡ್ ನೀಡುವ ಬ್ಯಾಂಕ್ಗೆ ಸಾಧ್ಯವಾದಷ್ಟು ಬೇಗನೆ ದೂರು ನೀಡಬೇಕು.

18. Is a customer eligible to get compensation for delay in returning the payment? +

Ans. In case of any delay in returning the failed payment, the originating customer is eligible to receive compensation at current repo rate plus 2%.

18. What are the salient features of a ‘Full-KYC’ PPI ? +

Ans. The salient features of ‘Full-KYC’ PPIs are as follows:

Reloadable in nature;
The amount outstanding shall not exceed ₹2,00,000/- at any point of time;
There are no limits prescribed for total credits or debits during a month; and
They can be used for purchase of goods and services, cash withdrawal and funds transfer.

18. How much time should I expect for receipt of funds by beneficiary? +

Ans: A timeline of two hours from the batch settlement can be expected, within which beneficiary’s account should be credited.

18. Does invocation under the Resolution Framework require the borrowers to submit any specific resolution plan and the lenders to agree on implementation of the same before December 31, 2020?

No. The Resolution Framework does not require any resolution plan in any form to be submitted to the lending institutions at the time of request for invocation. Rather, for invocation, the borrowers are required to merely submit a request to the lending institutions for being considered under the Resolution Framework. Thereafter, the lending institutions will take an in-principle decision – as per their Board approved policy – on invoking the Resolution Framework. After such invocation, the specific contours of resolution plan to be implemented may be decided by the lending institutions, in consultation with the borrower. While for personal loans the resolution plan is to be implemented within 90 days from the date of invocation, for all other loans a period of 180 days from the date of invocation has been prescribed.

18. Can I apply online? +

Yes. A customer can apply online through the website of the listed scheduled commercial banks. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode.

18. Is there any time limit for filing an appeal ? +

One can file appeal against the award or the decision of the NBFC Ombudsman rejecting the complaint, within 30 days of the date of receipt of communication of Award or rejection of the complaint. The Appellate Authority may, if he/ she is satisfied that the applicant had sufficient cause for not making an application for appeal within time, also allow a further period not exceeding 30 days.

Q.18. What are the salient features of Prudential framework for resolution of stressed assets ? +

MSME advances not covered under the Framework for Revival and Rehabilitation of Micro, Small and Medium Enterprises may be restructured by banks as per the instructions contained in the circular DBR.No.BP.BC.45/21.04.048/2018-19 dated June 7, 2019, on ‘Prudential Framework for Resolution of Stressed Assets’, as updated from time to time.

18. Query Whether Balance enquiry in ATMs also should be counted within the four withdrawals permitted under BSBDA? +

Response

Balance enquiry through ATMs should not be counted in the four withdrawals allowed free of charge at ATMs.

18. How much foreign exchange can one send as gift / donation to a person resident outside India? +

Any person resident in India can remit upto USD 5,000 in any one year as a gift to a person residing outside India or as donation to a charitable/educational/religious/ cultural organisation outside India. Remittances exceeding the limit require prior permission from the Reserve Bank.

18. Who can initiate a ECS Debit transaction? +

ECS Debit transaction can be initiated by any institution (called ECS Debit User) which has to receive / collect amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc. It is a Scheme under which an account holder with a bank branch can authorise an ECS User to recover an amount at a prescribed frequency by raising a debit to his / her bank account. The User institution has to first register with an ECS Centre. The User institution has to also obtain the authorization (mandate) from its customers for debiting their account along with their bank account particulars prior to participation in the ECS Debit scheme. The mandate has to be duly verified by the beneficiary’s bank. A copy of the mandate should be available on record with the destination bank where the customer has a bank account.

Q.18. (i) We understand that at the time of making applications for banking license, the applicants will need to submit the proposed structure which meets with RBI guidelines and requirements. The setting up of the NOFHC, Bank and realignment of businesses assets / portfolio into financial services, non-financial services etc. will be done after receiving in-principle approval from RBI and before the final approval of the RBI. RBI may please clarify our above understanding. (ii) Whether formation of NOFHC is required prior to submission of Bank License application, because it requires RBI approval and thus it may not be possible to set up NOFHC prior to deadline, i.e. 01.07.2013. +

18. Who will provide other services to the declarants after deposit in the scheme? +

The banks through which the deposit into this scheme was made will provide other customer services such as change of bank account details, cancellation of nominee etc.

18. Whether these securities transferable? +

Transferability is allowed to the nominee(s) only for individual investors on death of holder.
Transferability is not allowed for other investors

18. Query: Whether interbank lending of gold mobilized under GMS is allowed? +

Response: Yes. Designated banks are allowed to lend gold mobilized under the Scheme to other designated banks for similar use as prescribed under the scheme.

Q.18. Can BO open FCY account for doing normal business transactions? +

Ans. No

18. Is there any time limit for filing an appeal ? +

One can file appeal against the Award or the decision of the Ombudsman rejecting the complaint, within 30 days of the date of receipt of communication of Award or rejection of the complaint. The Appellate Authority may, if satisfied that the applicant had sufficient cause for not making an appeal within prescribed time, may allow a further period not exceeding 30 days.

18. What happens if one of the joint nominees to a Government security dies? +

In such cases where a nomination in respect of a Government security has been made in favour of two or more persons and either or any of the nominees is dead, the surviving nominee or nominees will be entitled to the Government security and payment thereon.

18. Who can fix the interest rates on NRE and FCNR (B) deposits ? +

Board of Directors of banks have been empowered to authorise the Asset-Liability Management Committee to fix interest rates on deposits and advances.

18. What if the payment for the securities is made to the aggregator or facilitator after the date of issue of the security? +

Since the aggregator or facilitator has to make payment on the date of issue itself, in case payment is made by the client after date of issue of the security, the consideration amount payable by the client to the aggregator or facilitator would include accrued interest.

18. Whether issuance of this instrument will be within the Govt market borrowing programme? +

Yes, issuance of IIBs would be within the Govt market borrowing programme of about Rs. 579,000 crore for 2013-14.

Q 18: Whether balances can be transferred from Special Rupee Vostro Account (SRVA)?

Answer: Balance of one Special Rupee Vostro Account (SRVA) can be transferred to SRVA of another bank of the same country only. Transfer from SRVA to Rupee Vostro account of same country is allowed but not vice-versa.

Q.19. How does the ECS Debit Scheme work?

Ans : The ECS Debit User intending to collect receivables through ECS Debit has to submit details of the customers (like name, bank / branch / account number of the customer, MICR code of the destination bank branch, etc.), date on which the customer’s account is to be debited, etc., in a specified format (called the input file) through its sponsor bank to the ECS Centre.

The bank managing the ECS Centre then passes on the debits to the destination banks for onward debit to the customer’s account with the destination bank branch and credits the sponsor bank's account for onward credit to the User institution. Destination bank branches will treat the electronic instructions received from the ECS Centre on par with the physical cheques and accordingly debit the customer accounts maintained with them. All the unsuccessful debits are returned to the sponsor bank through the ECS Centre (for onward return to the User Institution) within the specified time frame.

For further details about the ECS Debit scheme, the ECS Debit Procedural Guidelines – available on the website of Reserve Bank of India at http://www.rbi.org.in/Scripts/ECSUserView.aspx?Id=25 may be referred to.

19. Does a franchisee need to adhere to KYC/AML/CFT Guidelines? +

Franchisees are required to strictly adhere to the AML / KYC/ CFT guidelines, as applicable to ADs Category–I Banks / ADs Category – II / FFMCs.

Note: No licence for appointment of franchisees will be issued to any FFMC / non-bank AD Category - II, against whom any major DoE / DRI / CBI / Police case is pending. In case where any FFMC / non-bank AD Category - II has received one-time approval for appointing franchisees and subsequent to the date of approval, any DoE / DRI / CBI / Police case is filed, the FFMC / non-bank AD Category - II should not appoint any further franchisees and bring the matter to the notice of the Reserve Bank immediately. A decision will be taken by the Reserve Bank regarding allowing the FFMC / non-bank AD Category - II to appoint franchisees.

19. Is there any time limit for filing an appeal ? +

One can file the appeal against the award or decision of the Banking Ombudsman rejecting the complaint within 30 days of the date of receipt of the Award, The Appellate Authority may, if he/ she is satisfied that the applicant had sufficient cause for not making an application for appeal within time, also allow a further period not exceeding 30 days.

19. How will the bank or PD make partial allotment? +

It will be responsibility of the bank or PD to appropriately allocate securities to their clients in a transparent manner.How does the settlement take place?

19. Whether banks are permitted to offer differential rate of interest on NRE / FCNR(B) deposits ? +

Yes. Banks are permitted to offer differential rates of interest on NRE term deposits as in the case of domestic term deposits of Rs. 15 lakh and above. Regarding FCNR(B) deposits, banks are now free to decide the currency wise minimum quantum on which differential rate of interest may be offered subject to the overall ceiling prescribed.

Q.19 Is there any relaxation for making investment out of one’s own foreign exchange resources ? +

Yes, the limit of US$ 100 million will not be applicable in case of investments made out of ADR/GDR proceeds and investments could be made up to the total amount raised out of the ADR/GDR proceeds.

19. While going abroad how much Indian currency can be taken out?

A person going out of India can take out with him Indian currency notes within the limits given below: a. upto Rs.5000 to any country other than Nepal or Bhutan, and b. any amount in denomination not exceeding Rs.100 to Nepal or Bhutan.

Q.19. Where can one get more details about compounding? +

Ans. One can visit the Master Direction on Compounding of Contraventions under FEMA, 1999 available on Reserve Bank’s website.

19. ಬಿಎಸ್ಬಿಡಿಎ ಗ್ರಾಹಕರು ತಮಗೆ ಡೆಬಿಟ್ ಕಾರ್ಡ್ ಬೇಡವೆಂದು ನಿರ್ಧರಿಸಿದಲ್ಲಿ, ಬ್ಯಾಂಕು ಬಲವಂತವಾಗಿ ಎಟಿಎಮ್ ಕಾರ್ಡ್ ಕೊಡಬೇಕೇ ? +

ಬಿಎಸ್ಬಿಡಿಎ ಖಾತೆ ತೆರೆಯುವಾಗ ಗ್ರಾಹಕರು ಲಿಖಿತ ಮೂಲಕ ವಿನಂತಿಸಿದರೆ ಎಟಿಎಮ್ ಕಾರ್ಡ್ಗಳನ್ನು ನೀಡಬಹುದು. ಬ್ಯಾಂಕುಗಳು ಎಟಿಎಮ್ ಕಾರ್ಡ್ಗಳನ್ನು ಬಲವಂತವಾಗಿ ಅಂತಹ ಗ್ರಾಹಕರಿಗೆ ನೀಡುವಂತಿಲ್ಲ.

19. ದೂರು ನೀಡಲು ಗ್ರಾಹಕರು ಸಂಪರ್ಕ ಸಂಖ್ಯೆಗಳನ್ನು ಎಲ್ಲಿಂದ ಪಡೆಯಬಹುದು? +

ಉತ್ತರ. ಬ್ಯಾಂಕುಗಳು ಎಟಿಎಮ್ ಆವರಣಗಳಲ್ಲಿ ಸಂಬಂಧಪಟ್ಟ ಅಧಿಕಾರಿಗಳ ಹೆಸರು/ಗಳುಹಾಗೂ ಸಂಪರ್ಕ್ಸಂಖ್ಯೆ/ಗಳು /ಶುಲ್ಕ ರಹಿತ ಸಂಖ್ಯೆಗಳು / ಹೆಲ್ಪ್ ಡೆಸ್ಕ್ ಸಂಖ್ಯೆಗಳನ್ನು ಪ್ರದರ್ಶಿಸಬೆಕಾಗುತ್ತದೆ. ಅಂತೆಯೇ, ಡಬ್ಲ್ಯೂಎಲ್ಎಗಳಲ್ಲಿ , ವಿಫಲ/ವಿವಾದಿತ ವಹಿವಾಟುಗಳಿಗೆ ಸಂಬಂಧಿಸಿದ ಯಾವುದೇ ದೂರನ್ನು ನೀಡುವುದಕ್ಕಾಗಿ ಅಧಿಕಾರಿಗಳ ಸಂಪರ್ಕ ಸಂಖ್ಯೆಗಳು/ ಶುಲ್ಕ ರಹಿತ ಸಂಖ್ಯೆಗಳು / ಸಹಾಯ ವಾಣಿ ಸಂಖ್ಯೆಗಳನ್ನು ಸಹ ಪ್ರದರ್ಶಿಸಬೆಕಾಗುತ್ತದೆ.

19. ‘ನೀಡಿಕೆದಾರರಿಂದ ಸರಿಯಾಗಿ ಪರಿಶೀಲಿಸಲ್ಪಟ್ಟಿದೆ ’ಎಂದರೇನು? ಪಿಪಿಐದಾರರ ಸ್ವಂತ ಬ್ಯಾಂಕ್ ಖಾತೆ ಎಂದು ಪಿಪಿಐ ನೀಡಿಕೆದಾರರು ಹೇಗೆ ಖಚಿತಪಡಿಸಬಹುದು? +

ಉತ್ತರ. ಪಿಪಿಐನೀಡಿಕೆದಾರರು ಬ್ಯಾಂಕ್ ಖಾತೆಯು ಪಿಪಿಐದಾರರಿಗೆ ಸಂಬಂಧಿಸಿದೆ ಎಂದು ಪರಿಶೀಲಿಸುವದಕ್ಕಾಗಿ ಜವಾಬ್ದಾರಿಯನ್ನುಹೊಂದಿದ್ದು ಅದಕ್ಕಾಗಿ ಸೂಕ್ತವಾದ ಪರಿಶೀಲನಾ ವಿಧಾನಗಳನ್ನು ರೂಪಿಸಬಹುದು .

19. Whom can a customer contact, in case of non-credit or delay in credit to the beneficiary account? +

Ans. The customer can contact his / her bank / branch if there is an issue of delay / non-credit to the beneficiary account. The details of Customer Facilitation Centre of member banks are also available on the website of RBI at https://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2070.

19. In case only term loan facility of a borrower has been restructured, whether a lender having only working capital exposure to the same borrower is required to create provisions under the Resolution Framework, even if working capital exposure has not been restructured?

Para 17 read with para 21 of the Resolution Framework for COVID-19-related Stress dated August 6, 2020 (RF 1.0) makes signing of ICA mandatory for all the lending institutions who have exposure to the concerned borrower (subject to para 19¹). Since the borrower has opted for restructuring as a consequence of stress in the account, all the exposures to the borrower shall be treated as restructured and provisions shall be held on the entire residual debt, including the working capital facility.

19. At what price the bonds are sold? +

The nominal value of Gold Bonds shall be in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity, published by the India Bullion and Jewelers Association Limited, for the last 3 business days of the week preceding the subscription period.

19. How does the Appellate Authority deal with the appeal ? +

The appellate authority may act as given under:dismiss the appeal; orallow the appeal and set aside the Award; orsend the matter to the NBFC Ombudsman for fresh disposal in accordance with such directions as the Appellate Authority may consider necessary or proper; ormodify the Award and pass such directions as may be necessary to give effect to the modified award; orpass any other order as it may deem fit.

19. What are the payment options for depositing in PMGKS? +

The deposit shall be made in the form of cash or draft or cheque drawn in favor of the Authorized Bank accepting such deposit or by electronic transfer.

19. Query If a customer of BSBDA agrees not to have ATM Debit card should the bank give ATM debit card by force? +

Response

ATM debit cards may be offered at the time of opening BSBDA and issued if the customer requests for the same in writing. Banks need not force ATM debit cards on such customers.

19. What will be the maturity of IIBs? +

To begin with, IIBs will be issued for 10 years.
As it is advisable to issue IIBs at various maturity points to have benchmarks and cater to diverse market demands, more maturity points may be explored subsequently.

Q.19. What are the RBI guidelines on One Time Settlement Scheme (OTS) for MSEs for settlement of their NPAs ? +

Scheduled commercial banks have been advised in terms of our circular RPCD.SME&NFS. BC.No.102/06.04.01/2008-09 dated May 4, 2009 to put in place a non -discretionary One Time Settlement scheme duly approved by their Boards. The banks have also been advised to give adequate publicity to their OTS policies.

19. Whether a minor can be a nominee? +

Yes. A minor can be a nominee. However, the sole holder or all the joint holders of a Government security may appoint another individual, not being a minor, to receive the proceeds of the Government security on behalf of the nominee in the event of the death of the sole holder or all the joint holders during the minority of the nominee.