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.

RBI will issue the securities to the bank or PD that has bid on behalf of non-competitive bidder against payment made by the bank or PD on the date of issue itself.The non-competitive bidder will make payment to the bank or the PD through which he has put the bid and receive his securities from them.In other words, the RBI will issue securities to the bank or the PD against payment received from the bank or the PD on the date of issue irrespective of whether the bank or the PD has received payment from their clients.

The banks have freedom to offer all loans on fixed or floating rates subject to conformity to Asset Liability Management (ALM) Guidelines. However, they should ensure that the PLR stipulations as applicable are complied with. The nature of alignment with PLR i.e. whether it is at the time of sanction or disbursement of the loan, should be made explicit at the time of sanction of the loan. However, for small loans upto Rs. 2 lakhs, the stipulation of 'not exceeding PLR' (for relevant maturity) would be applicable.

Yes, requests for direct investment outside India in a JV/WOS by way of share swap arrangement are considered under the Normal Route.

ഉത്തരം. ഇൻസ്ട്രുമെന്‍റ് വിതരണം ചെയ്യുമ്പോൾ പിപിഐ ഇഷ്യു ചെയ്യുന്നവർ എല്ലാ സുപ്രധാന നിബന്ധനകളും വ്യവസ്ഥകളും വ്യക്തവും ലളിതവുമായ ഭാഷയിൽ ഉടമകൾക്ക് വെളിപ്പെടുത്തും. ഈ വെളിപ്പെടുത്തലുകളിൽ ഇനിപ്പറയുന്നവ ഉൾപ്പെടും:

1. ഉപകരണത്തിന്‍റെ ഉപയോഗവുമായി ബന്ധപ്പെട്ട എല്ലാ ചാർജ്ജുകളും ഫീസുകളും.
2. കാലഹരണപ്പെടൽ കാലയളവും ഇൻസ്ട്രുമെന്‍റിന്‍റെ കാലഹരണവുമായി ബന്ധപ്പെട്ട നിബന്ധനകളും വ്യവസ്ഥകളും.

The issuing banks/SHCIL offices/Post Offices/Designated stock exchanges/agents through which these securities have been purchased will provide other customer services such as change of address, early redemption, nomination, grievance redressal, transfer applications etc.

Yes.  The liability of the Government in respect of any interest payment due on a Government security shall terminate on the expiry of six years from the date on which the amount due by way of interest became payable, i.e., investors are expected to claim interest on their Government security within six years from the date it becomes payable and Government may refuse to pay such unclaimed interest payment after six years. However, Government may allow a bonafide claim for payment of interest even after the expiry of the limitation period of six years.

On the NDS-OM Web Module, the GAH has access to real time quotes on various securities as available on the main NDS-OM system. The GAH is able to view the best bid/offer (Market Watch) in various securities as well as the best 10 bid and offers (Market By Price / Market By Order). The GAH also has access to the total Trade information (Trade Watch) as well as half hourly movement of each security. (Market Movement). Further details are available in the User Manual.

This is a new facility extended to all resident individuals under which they may freely remit upto USD 25,000 per calendar year for any permissible current or capital account transaction or a combination of both.

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.

Yes, there is a specific scheme, which permits acquisition by an eligible entity of shares of a foreign company engaged in a similar activity in exchange of issue of its own ADR/GDRs to the latter on an automatic basis.

ഉത്തരം. മറ്റ് പി‌പി‌ഐ / ബാങ്ക് അക്കൗണ്ടുകളിലേക്ക് പണം അടിസ്ഥാനമാക്കിയുള്ള പണമയയ്ക്കൽ സുഗമമാക്കുന്നതിന് പി‌പി‌ഐ ഇഷ്യു ചെയ്യുന്നവർ, അവരുടെ ഏജന്‍റുമാർ ഉൾപ്പെടെ, ഓരോ തവണയും പുതിയ പി‌പി‌ഐകൾ സൃഷ്ടിക്കില്ല. ഒരേ വ്യക്തി മുമ്പത്തെ പണമയയ്‌ക്കലിനായി സൃഷ്‌ടിച്ച പി‌പി‌ഐകൾ ഉപയോഗിക്കണം.

Payment can be made through cash (upto ₹ 20000)/cheques/demand draft/electronic fund transfer.

As per clause (iv) of Section 193 of the Income Tax Act, 1961, no tax shall be deducted from any interest payable on any security of the Central Government or a State Government effective from June 1, 1997. However, as per Finance Act, 2007 and Government of India Notification No. F.4(10)-W&M/2003 dated May 31, 2007, tax has to be deducted at source on the interest exceeding Rupees ten thousand payable during a financial year on 8% Savings (Taxable) Bonds, 2003 with effect from June 1, 2007.

The GAH has an online view of the various orders placed by him which are outstanding, the orders which got executed, the net funds position as well an activity log which provides an audit trail of each order placed by the GAH. The transactional user will be able to view his own orders/trades whereas the View User will be able to view orders/trades done by various transactional users under the same client.

The facility is available to resident individuals only.

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.

The bank or the PD can recover upto six paise per Rs.100 as commission for rendering this service to their clients.

Yes. The banks are required to invariably incorporate following proviso in the loan agreements in the case of all advances, including term loans, enabling banks to charge the applicable interest rate in conformity with the directives issued by RBI, except in case of Fixed Rate Loans."Provided that the interest payable by the borrower shall be subject to the changes in interest rates made by the Reserve Bank from time to time."

The bank or the PD can build this cost into the sale price or it can recover separately from the clients.

No. Charging a rate of interest below prevailing PLR where a bank has not contracted a fixed rate loan, to any borrower at any time would be deemed as violation of our directives. It would not be in order to provide rebate resulting into actual interest rates charged to any borrower working out lower than the PLR. However, there is no objection to allowing a rebate, as long as the effective interest rate is not below the PLR. The spirit behind the advice to banks to declare PLR with the approval of their ALCO/Board is to make it applicable uniformly at all branches and to impart transparency in the matter of lending rates.

The norms for investment under the ADR/GDR stock swap scheme are as follows:the Indian party has already made an ADR and/or GDR issue and such ADRs/GDRs are currently listed on any stock exchange outside India;such investment by the Indian party does not exceed the higher of the following amounts, namely: -amount equivalent of US$ 100 mn. oramount equivalent to 10 times the export earnings of the Indian party during the preceding financial year as reflected in its audited balance sheet, inclusive of all investments made under the automatic route in the same financial year.the ADR and/or GDR issue for the purpose of acquisition is backed by underlying fresh equity shares issued by the Indian party;the total holding in the Indian party by persons resident outside India in the expanded capital base, after the new ADR and/or GDR issue, does not exceed the sectoral cap prescribed under the relevant regulations for such investment;the valuation of the shares of the foreign company is made: -as per the recommendations of the Investment Banker if the shares are not listed on any stock exchange; orbased on the current market capitalisation of the foreign company arrived at on the basis of monthly average price on any stock exchange abroad for the three months preceding the month in which the acquisition is committed and over and above, the premium, if any, as recommended by the Investment Banker in its due diligence report in other cases.

ഉത്തരം. ഉവ്വ്..പി‌പി‌ഐ ഇഷ്യു ചെയ്യുന്നവർ‌ക്ക് പി‌പി‌ഐകൾ‌ സോളോ അടിസ്ഥാനത്തിലോ ‌ മറ്റൊരു എന്‍റിറ്റിയുമായി കോ-ബ്രാൻ‌ഡഡ് അടിസ്ഥാനത്തിലോ നൽകാം.

Yes, nomination facility is available as per the provisions of the Government Securities Act 2006 and Government Securities Regulations, 2007. A nomination form is available along with Application form. An individual Non - resident Indian may get the security transferred in his name on account of his being a nominee of a deceased investor provided that:

1. the Non-Resident investor shall need to hold the security till early redemption or till maturity; and

2. the interest and maturity proceeds of the investment shall not be repatriable.

Yes.  RBI or its agent may permit grant of information or inspection of document relating to Government security on being satisfied that the security in question has stood in the name of the applicant or of a person in whom the applicant has a representative/bonafide interest.

There is no change in the settlement current settlement procedure. The trades concluded by GAH on the NDS-OM Web Module will flow directly in an STP manner to CCIL for settlement. The Primary Member will continue to be responsible for the settlement of such trades as well as maintenance of adequate margins with CCIL in respect of such trades.

Resident individuals can avail of the remittance facility under the Scheme once in a calendar year.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

Modalities for obtaining payment from clients towards the cost of securities, accrued interest, wherever applicable and commission will have to be worked out by the bank or the PD and clearly stated in the contract made for the purpose with the client.

No. The banks need not charge a uniform rate of interest even under a consortium arrangement. Each member bank should charge rate of interest on the portion of the credit limits extended by them to the borrowers subject to their PLR.

An applicant company satisfying the above norms may make such investment on an automatic basis and subsequently report the same in form ODG to the Reserve Bank.

ഉത്തരം. കമ്പനി ആക്റ്റ്, 1956 / കമ്പനി ആക്റ്റ്, 2013 പ്രകാരം രജിസ്റ്റർ ചെയ്തിട്ടുള്ള, ഇന്ത്യയിൽ സ്ഥാപിച്ച ഒരു കമ്പനിയായിരിക്കണം. കോ-ബ്രാൻഡിംഗ് പങ്കാളി. ഒരു ബാങ്കാണെങ്കിൽ, അത് റിസർവ് ബാങ്ക് ലൈസൻസുള്ള ബാങ്കായിരിക്കണം. ഒരു ബാങ്കും ബാങ്ക്-ഇതര സ്ഥാപനവും തമ്മിലുള്ള കോ-ബ്രാൻഡിംഗ് ക്രമീകരണത്തിന്‍റെ കാര്യത്തിൽ, ബാങ്ക് പിപിഐ ഇഷ്യൂവർ ആയിരിക്കും. രണ്ട് സ്ഥാപനങ്ങളും ബാങ്കുകളല്ലാത്തവരാണെങ്കിൽ, അവയിലൊന്ന്, അവർക്കിടയിൽ ഇഷ്യു ചെയ്യുന്നയാളുടെ പങ്ക് മുൻകൂട്ടി നിശ്ചയിക്കും,

Yes. The bonds can be held in demat account. A specific request for the same must be made in the application form itself. Till the process of dematerialization is completed, the bonds will be held in RBI’s books. The facility for conversion to demat will also be available subsequent to allotment of the bond.

A trade concluded on the NDS-OM Web Module need not be reported again on the PDO-NDS Module.

This facility is available for making remittance/s for any permissible current or capital account transaction or a combination of both. It is not available for purposes specifically prohibited (Schedule I) or regulated by the Government of India (Schedule II) of Foreign Exchange Management (Current Account Transactions) Rules, 2000.

Yes. Pledge, hypothecation or lien may be created in respect of Government securities held in the form of SC, BLA, SGL/CSGL and the holder of Government securities in such forms may avail of loan facility by keeping such securities as collateral towards loan, subject to the stipulation mentioned in Question No. 34. However, Government securities issued in the form of GPN and bearer bonds are not eligible for creation of pledge, hypothecation or lien.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

Yes, such requests are considered by the Special Committee on case-to-case basis. Indian companies desirous of making such investment are required to submit an application in form ODB to Reserve Bank for the purpose.

ഉത്തരം. രണ്ട് പങ്കാളികൾ‌ക്കിടയിൽ‌, ഒരാളെ പി‌പി‌ഐ ഇഷ്യു ചെയ്യുന്നയാളായി നിയമിക്കും, അവർ‌ കോ-ബ്രാൻ‌ഡഡ് പി‌പി‌ഐയുമായി ബന്ധപ്പെട്ട എല്ലാ ഉപഭോക്തൃ സേവന വശങ്ങളും അഭിസംബോധന ചെയ്യുന്നതിന് ഉത്തരവാദിയായിരിക്കും.

Yes. Individuals are free to use this Scheme to acquire and hold immovable property, shares or any other asset outside India without prior approval of RBI.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

No. The bank or the PD is not permitted to build any other cost, such as funding cost, into the price. In other words, the bank or the PD cannot recover any other cost from the client other than accrued interest as indicated in Q21 and Q23 and commission(Q31)

Banks can offer loans below the PLR rates to exporters or other credit worthy borrowers including public enterprises in accordance with a transparent and objective policy approved by their respective Board of Directors.

No. The facility to create pledge, hypothecation or lien against Government securities is not available for those loans which, as per the specific Government Loan Notification, are non-transferable or not eligible for collateral to avail of loan facility.

The bonds are tradable from a date to be notified by RBI. (It may be noted that only bonds held in de-mat form with depositories can be traded in stock exchanges) The bonds can also be sold and transferred as per provisions of Government Securities Act, 2006. Partial transfer of bonds is also possible.

The company will have to make an application to the Reserve Bank of India in form ODI along with necessary documents under the Normal Route.

In the event of default, the banks may charge penal interest in the borrowal accounts. Penal rate represents additional interest charged over and above the normal interest rates charged to the borrowers. The penal interest should not be levied on adhoc limits since the limits are generally granted pending regular sanction of loans and the rate of interest thereon should be subject to the maximum spread over PLR. With effect from 10.10.2000, the bank’s boards have been empowered to take decision on whether or not penal interest that should be levied for reasons such as default in repayment, non-submission of financial statements, etc. The policy should be governed by well accepted principles of transparency, fairness, incentive to service the debt and due regard to genuine difficulties of customers.

ഉത്തരം. അംഗീകൃത ഡീലർ കാറ്റഗറി -1 ബാങ്കുകൾ നൽകുന്ന കെ‌വൈ‌സി കംപ്ലയന്‍റ് റീലോഡബിൾ സെമി-ക്ലോസ്ഡ്, ഓപ്പൺ സിസ്റ്റം പി‌പി‌ഐകൾ, ഫെമയ്ക്ക് കീഴിൽ അനുവദനീയമായ കറന്‍റ് അക്കൗണ്ട് ഇടപാടുകൾക്കായി, ഉദാ. ചരക്കുകളുടെയും സേവനങ്ങളുടെയും വാങ്ങൽ പോലുള്ള ക്രോസ്-ബോർഡർ ഇടപാടുകളിൽ ഉപയോഗിക്കാൻ അനുവദിക്കും. ഒരു പി‌പി‌ഐ ഉടമയുടെ വ്യക്തമായ അഭ്യർത്ഥന പ്രകാരം മാത്രമേ ഈ സൗകര്യം പ്രവർത്തനക്ഷമമാക്കുകയുള്ളു. ഇടപാട് പരിധികൾ: ഓരോ ഇടപാട് പരിധിയും ₹ 10,000/- കവിയരുത്.
പ്രതിമാസ പരിധി ₹ 50,000/- കവിയാൻ പാടില്ല.
അനുവദനീയമായ ഇടപാടുകൾ: ഫോറിൻ എക്സ്ചേഞ്ച് മാനേജ്മെന്‍റ് ആക്ട് (ഫെമ) പ്രകാരം അനുവദനീയമായ കറന്‍റ് അക്കൗണ്ട് ഇടപാടുകൾ. ഉദാ.ചരക്കുകളുടെയും സേവനങ്ങളുടെയും വാങ്ങൽ. അത്തരം ഇടപാടുകളെ നിയന്ത്രിക്കുന്ന നിലവിലുള്ള മാനദണ്ഡങ്ങൾ പാലിക്കുന്നതിന് വിധേയമായി. അനുവദനീയമല്ലാത്ത ഇടപാടുകൾ:

1. എ. അതിർത്തി കടന്നുള്ള ഏതെങ്കിലും പുറംരാജ്യത്തേക്കുള്ള ഫണ്ട് കൈമാറ്റം ഒപ്പം / അല്ലെങ്കിൽ ലിബറലൈസ്ഡ് റെമിറ്റൻസ് സ്കീമിന് കീഴിൽ പണമയയ്ക്കുന്നതിന്.
2. ബി. ഓൺലൈൻ വ്യാപാരിയുടെ അക്കൗണ്ടിലേയ്ക്ക് പ്രീ-ഫണ്ടിംഗ്.

The nominee/nominees to the bond may approach the respective Receiving Office with their claim. The claim of the nominee/nominees will be recognized in terms of the provision of the Government Securities Act, 2006 read with Chapter III of Government Securities Regulation, 2007. In the absence of nomination, claim of the executors or administrators of the deceased holder or claim of the holder of the succession certificate (issued under Part X of Indian Succession Act) may be submitted to the Receiving Offices/Depository. It may be noted that the above provisions are applicable in the case of a deceased minor investor also. The title of the bond in such cases too will pass to the person fulfilling the criteria laid down in Government Securities Act, 2006 and not necessarily to the Natural Guardian.

Pledge towards Government securities will be created/noted by RBI or its agent, as the case may be, maintaining the account in respect of such security, i.e., in case of SC, BLA & SGL for which the records and accounts are maintained by RBI, the pledge will be noted in the books of RBI while in case of BLAs issued by Agency Banks or securities held in a CSGL account, the pledge will be noted by the concerned Agency Bank or CSGL Account holder respectively.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

Yes. Individuals are free to open, hold and maintain foreign currency accounts with a bank outside India for making remittances under the Scheme without the prior approval of RBI. The account can be used for putting through any transaction connected with or arising from remittances under the Scheme.

PDs and banks will furnish information relating to the Scheme to the Reserve Bank of India as and when called for. RBI can also review the guidelines. If and when the guidelines are revised, RBI will notify the modified guidelines.December 15, 2001

Partnership firms engaged in providing professional services, such as chartered accountancy, legal practice and related services, information technology and entertainment software related services and medical and healthcare services are eligible for investment abroad on an automatic basis by filing form ODA with the AD without prior approval of the Reserve Bank up to an amount of US$ 1 million. Partnership firms, which do not conform to the above parameters, are required to obtain specific approval of the Reserve Bank by filing an application in form ODI (to the extent applicable).

ഉത്തരം. അംഗീകൃത ഓവർസീസ് പ്രിൻസിപ്പലിന്‍റെ (ഒപി) ഇന്ത്യൻ ഏജന്‍റുമാരായ ബാങ്കുകൾക്കും ബാങ്ക്-ഇതര പിപിഐ ഇഷ്യു ചെയ്യുന്നവർക്കും റിസർവ് ബാങ്കിന്‍റെ മണി ട്രാൻസ്ഫർ സർവീസ് സ്കീം (എംടിഎസ്എസ്) പ്രകാരം ആഭ്യന്തര പണമടയ്ക്കൽ ഗുണഭോക്താക്കൾക്ക് കെവൈസി കംപ്ലയന്‍റ് പിപിഐ നൽകാൻ അനുവാദമുണ്ട്. ഈ പ്രവർത്തനം ഏറ്റെടുക്കുന്ന സ്ഥാപനത്തിന് അംഗീകൃത പിപിഐ ഇഷ്യുവും എം‌ടി‌എസ്‌എസിന് കീഴിലുള്ള ഒരു ഇന്ത്യൻ ഏജന്‍റും (ഫോറിൻ എക്സ്ചേഞ്ച് ഡിപ്പാർട്ട്മെന്‍റ്, ആർ‌ബി‌ഐ അംഗീകാരമുള്ളത്) ആവശ്യമാണ്. വ്യക്തിഗത ആഭ്യന്തര എം‌ടി‌എസ്‌എസ് പണമടയ്ക്കൽ ₹ 50,000 - വരെയുള്ള തുക ഗുണഭോക്താക്കൾക്ക് നൽകുന്ന പി‌പി‌ഐകളിൽ ലോഡ് ചെയ്യാനോ വീണ്ടും ലോഡ് ചെയ്യാനോ അനുമതിയുണ്ട്. ₹ 50,000/- ൽ കൂടുതലുള്ള ഏതെങ്കിലും ഇടപാട് തുക ഒരു ബാങ്ക് അക്കൗണ്ടിലേക്ക് ക്രെഡിറ്റ് വഴി അടയ്ക്കും.

Yes, part holdings can be redeemed in multiples of one gm.

An investor in Government securities, held in the form of SC, BLA and SGL/CSGL, can avail of the facility of automatic redemption, i.e., the maturity proceeds along with the interest accruing thereon will be credited to the investor's bank account on due date and the investor need not submit physical discharge in respect of such securities provided the investor has furnished his/her bank account details to the RBI or its agent (A model format is given at the end of these FAQs). However, in case, the investor does not submit his/her bank details to the RBI or the Agency Bank, he/she would be required to submit physical discharge towards the Government securities to receive the redemption proceeds.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

The facility under the Scheme is in addition to those already available under Foreign Exchange Management (Current Account Transactions) Rules, 2000.

Direct housing loans to individuals upto Rs.5 lakhs in rural/semi-urban area and Rs.10 lakhs in urban/metropolitan area and loans upto Rs.50,000/- for repairs to damaged houses by individuals are treated as priority sector advances. The rate of interest will be determined according to size of the credit limit. As such the loans upto Rs.2 lakhs should be charged interest as per size of limit i.e. ‘not exceeding PLR’. Loans above Rs. 2 lakhs and upto Rs. 5 lakhs in rural/semi-urban area or Rs.10 lakhs in urban/metropolitan area should be charged interest subject to PLR and the spread announced by the bank concerned. Loan above Rs.5 lakhs in rural/semi-urban area and above Rs.10 lakhs in urban/metropolitan area will fall under category ‘Other non-priority sector personal loans’ in which case banks are free to determine the rates of interest without reference to PLR.37. Consequent on the deregulation of interest rate on advances over Rs. 2 lakhs with effect from October 18, 1994, how banks will bear DICGC Guarantee fee in respect of priority sector advance?As regards DICGC Guarantee fee, the banks have discretion to absorb or to pass on the guarantee fee to the borrower in case of advances over Rs.25,000/- excluding advances to weaker sections. Banks should bear DICGC guarantee fees in respect of advances upto Rs.25,000/- and all advances to weaker sections.38.Whether banks can charge rate of interest beyond the spread announced by them on advances granted to Non-Banking Finance Companies (NBFCs)?Banks have freedom to charge interest rate beyond the declared 'spread' on advances granted to NBFCs for onlending for consumer credit.39. Whether interest on loans and advances could be charged at varying periods ranging from monthly rests to yearly rests?With effect from April 1, 2002 the interest rates on loans and advances should be charged with monthly rests except in the case of agricultural advances( including short term loans and other allied activities) where the existing practice would continue. However the banks should compound the interest at monthly intervals only from April 1, 2003.40. What rate of interest is chargeable on loans/ advances granted to Staff Member/Staff Co-operative Credit Societies?The interest rate directives on bank advances will not be applicable to loans or advances or other financial accommodation made or provided or renewed by a scheduled bank, inter alia, to its own employees. Where the advances are provided by the bank to co-operative credit societies formed by the bank’s staff members for lending to constituents ( i.e. Staff of the bank ) the interest rate directives of the RBI will not apply to such advances.IV. Advances against shares and debentures41. Whether banks can sanction loans to Trust and Endowments against the security of shares and debentures?No.42. Whether banks can sanction loans against the equity shares of the banking company to its directors?No.43. Whether any ceiling has been stipulated regarding the banks exposure to the capital markets?Thetotalexposure including both fund based and non-fund based, to capital market by a bank in all forms covering direct investment by a bank in equity shares, convertible bonds and debentures and units of equity oriented mutual funds; Advances against shares to individuals for investment in equity shares (including IPOs ), bonds and debentures, units of equity-oriented mutual funds etc and secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers should be restricted to 5 % of the outstanding advances as on March 31 of the previous year. (including Commercial Paper). Further, for computing the ceiling on exposure to capital market, direct investment in shares by banks will be calculated at cost price of the shares.44. Whether banks can indulge in short sales of shares?No. Banks are prohibited from making any short sales of share45. Whether banks can invest in their subsidiaries?Banks can invest in their subsidiaries. However, such investments will be outside the purview of 5%of the outstanding advances of the previous year and subject to compliance of Section 19 of the Banking Regulation Act, 1949.46. Which of the bills should not be discounted by the banks?The bills covering payment of electricity charges, customs duty, hire purchase/lease rental instalments, sale of securities and other types of financial accommodation should not be discounted by banks.47. Whether banks can invest in Fixed Deposits of non-banking non-financial companies?There is no prohibition on banks' placing of funds with non-banking non-financial companies under their Public Deposit Scheme. However, such investment in the Public Deposit Scheme should be classified by banks as loans/advances in their balance sheet and returns under the Banking Regulation Act, 1949 and fortnightly returns by scheduled commercial banks under Reserve Bank of India Act , 1934.48. Whether banks can purchase letter of allotment in respect of PSU Bonds?Banks can purchase letter of allotment in respect of PSU bonds subject to following conditions.1. The transaction (other than inter bank transaction) should be undertaken only through recognised Stock Exchanges and registered brokers.2. While purchasing the security, the bank should ensure that it gets a clear title to the security and the security is traded in the secondary market.The bank should formulate their own internal guidelines with the approval of the Board for undertaking such transaction.49. What should be the method of valuation for advances against shares/debentures /bonds?Shares/debentures/bonds should be valued at prevailing market prices when they are lodged as security for advances.50. Whether the banks can sanction bridge loans to companies?Yes. For a period not exceeding one year against the expected equity flows/issues as also against the expected proceeds of Non-convertible Debentures, External Commercial Borrowings, Global Depository Receipts and/or funds in the nature of Foreign Direct Investments, provided the bank is satisfied that the borrowing company has made firm arrangements for raising the aforesaid resources/funds. Such loans are required to be accommodated within the ceiling of 5% of outstanding advances of the previous year.51. What is the quantum of loans to individuals against security of shares, debentures and PSU bonds if held in physical form and in dematerialized form?The loans to individuals against the security of shares, debentures and PSU bonds if held in physical form should not exceed the limit of Rs.10 lakhs per borrower and Rs.20 lakhs if the securities are held in dematerialized form. The maximum amount of finance that can be granted to an individual for IPOs is Rs.10 lakh. The corporates should not be extended finance for investment in other companies’ IPOs and NBFCs should not be provided finance for further lending to individuals for IPOs. Finance extended by a bank for IPOs should be reckoned as an exposure to capital market.52. What is the margin stipulated for advances against shares held in physical form and dematerialized form?A uniform margin of 40% has been stipulated for all advances against shares.V. Donations53. Whether banks can make donations?Yes, the profit making banks can make donations during a financial year, aggregating upto one per cent of the published profit of the bank for previous year inclusive of donations made earlier under exempted category and donations to National funds and other funds. Banks should not make donations in excess of prescribed ceiling of one per cent as stated above. Unutilised amount of the permissible limit in a year should not be carried forward to the next year for the purpose of making donations.54. Whether loss-making banks can make donations?Yes, loss making banks can make donations totaling Rs.5 lakhs only in a financial year.55. Whether overseas branches of the banks can make donations abroad?Yes, the overseas branches of the banks can make donations abroad, provided the banks do not exceed the prescribed ceiling of one per cent of their published profit of the previous year.VI. Premises Loan56. What are the norms and procedure laid down by RBI for acquisition of accommodation on lease/rental basis by commercial banks for their use i.e. for office and residence of staff?i) Boards of Directors of the banks should lay down policy and formulate detailed operational guidelines separately in respect of metropolitan, urban, semi-urban and rural areas covering all areas in respect of acquiring premises on lease/rental basis for the bank's use including delegation of powers at various levels. The decision of surrender or shifting of premises other than at rural centres is taken at central office level by a committee of senior executives.ii) Banks' Boards should lay down a separate policy in respect of loans granted to landlords who provide to them premises on lease/rental basis. The rate of interest to be charged on such loans should be fixed as per the lending rate directives issued by RBI with minimum PLR for the loans above Rs. 2 lakhs. The rate of interest may be simple rate or compound rate as per the usual practice of the bank as applicable to other term loans.iii) Banks should evolve a suitable machinery for dealing with genuine grievances of the landlord for expeditious disposal.iv) In case of negotiated contracts in respect of advances to landlords and rental (including taxes etc. and deposits of Rs.25 lakhs and above) in respect of premises taken on lease/rental basis by public sector banks, the cases will be reported to Central Bureau of Investigation as per the extant Government instructions. This requirement is not applicable to banks in the private sector.VII Service charges57. Are there any limit prescribed by the RBI on service charges to be levied by the banks?The banks have been given the freedom to determine the service charges to be levied from their customers and the RBI has not prescribed any ceilings in this regard.

As regards DICGC Guarantee fee, the banks have discretion to absorb or to pass on the guarantee fee to the borrower in case of advances over Rs.25,000/- excluding advances to weaker sections. Banks should bear DICGC guarantee fees in respect of advances upto Rs.25,000/- and all advances to weaker sections.

The investing firm will have to be the member of the respective all-India professional organisation / body and the investment amount should not exceed US$ 1 million. or its equivalent in one financial year.

ഉത്തരം. ഇല്ല, പി‌പി‌ഐകളിൽ‌ ഫണ്ടുകൾ‌ ലോഡ് ചെയ്യുമ്പോൾ‌ ക്രെഡിറ്റ് വിഭജനം അനുവദിക്കില്ല. ഇടപാടിന്‍റെ തുക ₹50,000/- ൽ കൂടുതലായതിനാൽ, മുഴുവൻ തുകയും ബാങ്ക് അക്കൗണ്ടിലേക്ക് ക്രെഡിറ്റ് ചെയ്യണം.

A dedicated e-mail has been created by the Reserve Bank of India to receive queries from members of public on Sovereign Gold Bonds. Investors can mail their queries to this email id.

Yes.  In case the maturity proceeds of a Government security exceeds Rupees One lakh,  the investor(s) should furnish the PAN details in advance so as to avail the facility of automatic redemption and receive the maturity proceeds along with the accruing interest thereon in his/her account on due date.

Remittance cannot be made directly or indirectly to Bhutan, Nepal, Mauritius or Pakistan. The facility is also not available for making remittances directly or indirectly to countries identified by the Financial Action Task Force (FATF) as ‘non-co-operative Countries or Territories' viz., Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Phillippines and Ukraine. Further, remittance under the facility cannot be made to individuals and entities identified as posing significant risk or committing acts of terrorism as advised to banks by RBI from time to time.

All regulated financial services entities of the Promoters/Promoter Group in which the Promoters/Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) have to be held by a NOFHC. Regarding financial groups setting up banks, the existing NBFC must transfer all regulated financial services business to a new company and shares in that new company must be held by the NOFHC. Conversion of the NBFC into a non operating holding company would enable meeting the requirement of para 2(C)(iii) of the guidelines provided the listed non operating holding company meets the requirement of para(C)(ii)(b) of the guidelines i.e. the public hold not less than 51 percent voting equity shares in the company.

Banks have freedom to charge interest rate beyond the declared 'spread' on advances granted to NBFCs for onlending for consumer credit.

A partnership firm which fulfills the conditions stipulated under the automatic route may make the investment without prior approval and submit a report containing the following details through an authorised dealer with in 30 days of making such investments –Name and full address and registration of partnership.Full details of investment abroad.Date and amount of remittance/amount of capitalisation of fees/other entitlements due.Name and address of the foreign concern together with its line of activities.Identification number (if already allotted by the Reserve Bank)

ഉത്തരം. പി‌പി‌ഐ ഉപയോഗിച്ചുള്ള തുടർച്ചയായുള്ള എല്ലാ പേയ്‌മെന്‍റ് ഇടപാടുകളും വ്യക്തമായ ഉപഭോക്തൃ സമ്മതത്തോടെ സാധൂകരിക്കേണ്ടതുണ്ട്. അതുപോലെ, കാർഡുകളുടെ രൂപത്തിൽ (ഫിസിക്കൽ അല്ലെങ്കിൽ വെർച്വൽ) ഇഷ്യു ചെയ്യുന്ന പിപിഐകൾക്ക് ഡെബിറ്റ് കാർഡുകൾക്ക് ആവശ്യമായ അധിക സാധൂകരണ ഘടകം (എഎഫ്എ) ഉണ്ടായിരിക്കണം, പിപിഐ-എംടിഎസിന് കീഴിൽ ഇഷ്യൂ ചെയ്‌ത പിപിഐകൾക്ക് ഒഴികെ.

A. Under all circumstances at least 51 per cent of the voting equity shares of the NOFHC shall be held by companies in the Promoter Group, in which public shareholding is not less than 51 percent.[para 2 (C) (ii) (b) of the guidelines]

RBI may call for information from any agent or SGL/CSGL account holder and cause an inspection or scrutiny to be made of any agent or SGL/CSGL account holder. Further, RBI may issue directions to the SGL/CSGL account holders, agents and to any other person dealing with the Government securities.

The individual will have to designate a branch of an AD through which all the remittances under the Scheme will be made. He has to furnish an application-cum-declaration in the specified format regarding the purpose of the remittance and declare that the funds belong to him and will not be used for purposes prohibited or regulated under the Scheme.

With effect from April 1, 2002 the interest rates on loans and advances should be charged with monthly rests except in the case of agricultural advances( including short term loans and other allied activities) where the existing practice would continue. However the banks should compound the interest at monthly intervals only from April 1, 2003.

Partnership firms, which are not eligible under the Automatic Route, are required to make an application in form ODI to the Reserve Bank for necessary approval.

ഉത്തരം. എല്ലാ പി‌പി‌ഐകൾ‌ക്കും പി‌പി‌ഐയിൽ‌ അവസാനമായി ലോഡ് ചെയ്യുന്ന / വീണ്ടും ലോഡ് ചെയ്യുന്ന തീയതി മുതൽ‌ ഒരു വർഷത്തെ കുറഞ്ഞ സാധുതാ കാലയളവ് ഉണ്ടായിരിക്കും. എങ്കിലും, കൂടുതൽ‌ സാധുതയുള്ള പി‌പി‌ഐകൾ‌ നൽ‌കാൻ‌ പി‌പി‌ഐ നൽ‌കുന്നവർ‌ക്ക് സ്വാതന്ത്ര്യമുണ്ട്. പി‌പി‌ഐ ഇഷ്യു ചെയ്യുന്ന സമയത്ത് ഉപഭോക്താവിന് പി‌പി‌ഐയുടെ കാലഹരണപ്പെടൽ കാലയളവ് ഇഷ്യു ചെയ്യുന്നവർ വ്യക്തമായി മനസ്സിലാക്കിത്തരും.

A. Non-voting equity shares are not a part of the guidelines, but are subject to relevant laws/ SEBI guidelines. Non-voting capital will not be reckoned for the purpose of calculation of promoter shareholding in the NOFHC/ bank.

If any person, for the purpose of obtaining for himself or any other person any title to a Government security, makes false statement then he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both. Further, RBI may impose on any person who contravenes any provision of the G S Act, or contravenes any regulation, notification or direction issued under the G S Act, or violates the terms and conditions for opening and maintenance of SGL/CSGL account a penalty not exceeding five lakh rupees and where such contravention is a continuing one, further penalty, which may extend to five thousand rupees for every day after first day during which the contravention continues.

FAQs in respect of Relief/Savings Bonds

As mentioned above, Relief/Savings Bonds are Government securities and they are issued in the form of Stock and BLA by RBI and in the form of BLA by the Agency banks. The provisions of the G S Act and the G S Regulations also apply to them. For the convenience of the Relief/Savings Bonds holders, certain specific aspects have been elaborated here.

The investor is free to book profit or loss abroad and to invest abroad again. He is under no obligation to repatriate the funds sent abroad.

It will be in order for individual partners to hold shares for and on behalf of the firm in overseas JV/WOS provided the entire funding for the investment is done by the firm and if the host country regulations or operational requirements warrant such holding.

ഉത്തരം. തുടർച്ചയായ ഒരു വർഷത്തേക്ക് സാമ്പത്തിക ഇടപാട് ഇല്ലാത്ത ഒരു പിപിഐയിൽ പിപിഐ ഉടമയ്ക്ക് നോട്ടീസ് അയച്ചതിനുശേഷം അതിനെ നിഷ്‌ക്രിയമായി കണക്കാക്കും. മൂല്യനിർണ്ണയത്തിനും ബാധകമായ പരിശോധനയ്ക്കും ശേഷം മാത്രമേ അതിനെ വീണ്ടും സജീവമാക്കാനാൻ കഴിയൂ.

The entities/individuals belonging to the Promoters/Promoter Group, which would participate in the voting equity shares of the NOFHC, would have to provide theMemorandum and Articles of Association, financial statements for past ten years and IT returns for last three years, as appropriate, at the time of submission of their application. The last available financial statements in respect of other Group entities, which do not participate in the voting equity shares of the NOFHC will also have to be furnished. The details of the Promoters’ direct and indirect interest in various entities/companies/industries and details of credit/other facilities availed by the Promoters/Promoter Group would be required of all entities. [ para 3 of Annex II to the guidelines]

Yes.  As Relief/Savings Bonds are Government securities, nomination facility is available for these as explained at Question Nos. 17, 18, 19, 20, 21 & 22 above.

Once a remittance is made for an amount upto USD 25,000 during the calendar year, he would not be eligible to make any further remittances under this route, even if the proceeds of the investments have been brought back into the country.

The interest rate directives on bank advances will not be applicable to loans or advances or other financial accommodation made or provided or renewed by a scheduled bank, inter alia, to its own employees. Where the advances are provided by the bank to co-operative credit societies formed by the bank’s staff members for lending to constituents ( i.e. Staff of the bank ) the interest rate directives of the RBI will not apply to such advances.

No.

ഉത്തരം. ഏതെങ്കിലും കാരണത്താൽ പദ്ധതി തകരാറിലാകുകയോ അല്ലെങ്കിൽ നിർത്തലാക്കാൻ റിസർവ് ബാങ്ക് നിർദ്ദേശം നൽകുകയോ ചെയ്താൽ, അത്തരം പിപിഐകളുടെ ഉടമകൾക്ക് പിപിഐയിലെ ബാലൻസ് വീണ്ടെടുക്കാൻ അനുവാദമുണ്ട്.

The entities/individuals belonging to the Promoters/Promoter Group, which would participate in the voting equity shares of the NOFHC, would have to provide theMemorandum and Articles of Association, financial statements for past ten years and IT returns for last three years, as appropriate, at the time of submission of their application. The last available financial statements in respect of other Group entities, which do not participate in the voting equity shares of the NOFHC will also have to be furnished. The details of the Promoters’ direct and indirect interest in various entities/companies/industries and details of credit/other facilities availed by the Promoters/Promoter Group would be required of all entities. [ para 3 of Annex II to the guidelines]

Indian parties which have majority share holding in a foreign entity abroad are required to seek specific approval of Reserve Bank of India for setting up of a second generation company in case:the foreign entity has been in operation for a period of less than two years; orthe Indian party has not repatriated the amount of dividends, fees and royalties due to it from the foreign entity; orproceeds of exports to the foreign entity have not been realised in accordance with the Foreign Exchange Management (Export of Goods and Services) Regulations, 2000; oradditional capital contribution is required from India.

The remittances can be in any currency equivalent to USD 25,000 in a calendar year.

Yes.  The facility of automatic redemption, i.e., the facility to receive maturity proceeds along with interest accruing thereon on due date without the hassle of visiting the RBI/Agency Bank and submitting physical discharge in respect of the maturing Relief/Savings Bonds is available to all the Relief/Savings Bond investors as explained at Question Nos. 36 & 37 above.

No.

The stipulation that investors could invest in equities of overseas listed firms that hold at least 10% in a listed Indian firm which was made in terms of our A.P.(DIR Series) Circular No.66 dated January 13, 2003 continues as an additional facility. Under the current Liberalised Remittance Scheme, no such stipulation has been made.

ഉത്തരം. പരാജയപ്പെട്ട / മടങ്ങിയ / നിരസിച്ച / റദ്ദാക്കിയ ഇടപാടുകളുടെ റീഫണ്ടുകൾ ഉടനടി ബന്ധപ്പെട്ട പിപിഐയ്ക്ക് ബാധകമാകും, തുടക്കത്തിൽ പിപിഐയിലേക്കുള്ള ഡെബിറ്റ് വഴിയാണ് പേയ്‌മെന്‍റ് നടത്തിയതെങ്കിൽ അത്തരം ഫണ്ടുകൾ തിരികെ നൽകുന്നത് അത്തരം പിപിഐ വിഭാഗത്തിനുള്ള നിശ്ചിത പരിധി കവിയുകയാണെങ്കിൽ പോലും.

Relief/Savings Bonds provide the investors to opt for cumulative/non-cumulative interest payment. In case of cumulative bonds, the interest is payable along with the principal at the time of redemption. However, in case of non-cumulative bonds, the same is paid at half-yearly intervals. If an investor requires regular income flow then it is suggested that he/she should opt for non-cumulative mode of interest payment. Interest can be paid through interest warrants delivered through registered post or can be credited to the investor's bank account on due date, in case the investor has submitted the bank details as per the ECS Mandate form available in the offices of RBI and the Agency Banks. (A model format is given at the end of these FAQs).

The shares of a JV/WOS can be pledged as a security for availing fund based or non-fund based facility for the concerned entity or for the JV/WOS from an authorised dealer/ public financial institution in India.

A. The NOFHC has to be wholly owned by a single Promoter/Promoter Group ( as per the definition given in the Annex I to the guidelines) and the pattern of shareholding would be as per the provisions laid down at para 2 ( C ) ( ii ) & ( iii) of the guidelines. Two or more separate Groups cannot combine together to set up a NOFHC.

The total exposure including both fund based and non-fund based, to capital market by a bank in all forms covering direct investment by a bank in equity shares, convertible bonds and debentures and units of equity oriented mutual funds; Advances against shares to individuals for investment in equity shares (including IPOs ), bonds and debentures, units of equity-oriented mutual funds etc and secured and unsecured advances to stockbrokers and guarantees issued on behalf of stockbrokers and market makers should be restricted to 5 % of the outstanding advances as on March 31 of the previous year. (including Commercial Paper). Further, for computing the ceiling on exposure to capital market, direct investment in shares by banks will be calculated at cost price of the shares.

ഉത്തരം. മറ്റേതെങ്കിലും പേയ്‌മെന്‍റ് ഇൻസ്ട്രുമെന്‍റ് ഉപയോഗിച്ച് പരാജയപ്പെട്ട / മടങ്ങിയ / നിരസിച്ച / റദ്ദാക്കിയ ഇടപാടുകളുടെ റീഫണ്ടുകൾ ഒരു പിപിഐയിലേക്ക് ക്രെഡിറ്റ് ചെയ്യരുത്, അതേ പേയ്‌മെന്‍റ് ഇൻസ്ട്രുമെന്‍റിലേക്ക് തിരികെ ക്രെഡിറ്റ് ചെയ്യണം.

A. A Group which does not have any company or which will not be able to have a company with public shareholding of not less than 51 per cent cannot apply for banking licence, since at least 51 per cent of the voting equity shares of the NOFHC have to be held by companies in the Promoter Group, in which public hold not less than 51 per cent of the voting equity shares. If the Promoter Group has a company in which public holding is not less than 51 per cent, at least 51 per cent of the voting equity shares of the NOFHC is required to be held by that company. It is not necessary that all Group companies in which public shareholding is not less than 51% should be shareholders of the NOFHC [para 2 (C) (ii)(b) of the guidelines].