As explained at Question No. 31, with effect from June 1, 1997, there is no TDS upon interest payable on Government Security. 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 Bonds, 2003 (Taxable) with effect from June 1, 2007. Accordingly, there is no TDS upon interest payment in respect of Relief/Savings Bonds other than 8% Savings Bonds, 2003 (Taxable).

Disinvestment of holding in a JV/WOS abroad requires prior approval of the Reserve Bank of India for which the holder will have to submit an application furnishing the reasons /justifications for such disinvestment along with a Chartered Accountant’s valuation certificate, latest audited financial statements of the JV/WOS, Board Resolution approving the disinvestment and Chartered Accountant’s certificate regarding position of dues of the WOS and total amount to be received by parent company on disinvestment.

The Scheme does not restrict such transactions, provided the transactions are within the limit of USD 25,000 per calendar year and is otherwise in order.

An Indian Party will have to comply with the following: -receive share certificates or any other documentary evidence of investment in the foreign entity to the satisfaction of the Reserve Bank within six months, failing which an application for extension of time citing reasons for non-receipt will have to be made to the Reserve Bank.repatriate to India, all dues receivable from the foreign entity, like dividend, royalty, technical fees etc., within 60 days of its falling due, or such further period as the Reserve Bank may permit.submit to the Reserve Bank every year within 60 days from the date of expiry of the statutory period as prescribed by the respective laws of the host country for finalisation of the audited accounts of the Joint Venture/Wholly Owned Subsidiary outside India an Annual Performance Report in form APR in respect of each Joint Venture or Wholly Owned Subsidiary outside India set up or acquired by the Indian party. This APR should inevitably be accompanied byCopies of FIRCs in support of inward remittances on account of dividend, royalty, etc.Audited Financial Statements of the overseas venture.CA’s certificate in support of realization of export proceeds.A note on the working of the JV/WOS during the previous year highlighting the ups and downs, reasons for non-performance, etc. in monetary terms. In case the promoter company is unable to submit APRs within the stipulated time, an application on the due date should be made to the Reserve Bank of India seeking extension, giving reasons for the same.

సమాధానం. పిపిఐ ఇష్యూయర్లు, కస్టమర్ ఫిర్యాదులను పరిష్కరించుటకు బాహాటంగా వెల్లడిస్తూ, సక్రమమైన వ్యవస్థను నెలకొలపాలి. . నోడల్ అధికారిని నియమించి, ఫిర్యాదు పరిష్కారం కానిపక్షంలో వారు సంప్రదించగల ఉన్నతాధికారుల వివరాలు ‘ఎస్కలేషన్ మ్యాట్రిక్స్’, మరియు ఫిర్యాదు పరిష్కారానికి పట్టే సమయం ప్రకటించాలి. ఫిర్యాదుల పరిష్కార వ్యవస్థ, కనీసం ఈక్రింది అంశాలు కలిగి ఉండాలి.

1. కస్టమర్ రక్షణ మరియు పిపిఐ ఇష్యూయర్ యొక్క ఫిర్యాదుల పరిష్కార పాలసీకి సంబంధించిన సమాచారాన్ని సరళ భాషలో ప్రసారం చేయుట.
2. ఫిర్యాదు పరిష్కారానికి నోడల్ అధికారి వివరాలతో సహా పిపిఐ ఇష్యూవర్ యొక్క కస్టమర్ కేర్ సంప్రదింపు వివరాలను వెబ్ సైట్, మొబైల్ యాప్స్, మరియు కార్డులపై స్పష్టంగా సూచించాలి.
3. పిపిఐ ఇష్యూయర్ యొక్క ఏజెంట్లు, పైన (బి) లో తెలిపిన విధంగా, కస్టమర్ కేర్ సంప్రదింపు వివరాలను ప్రదర్శించాలి.
4. ఫిర్యాదు స్టేటస్ ని కస్టమర్ తెలుసుకునే సదుపాయంతో పాటు దాఖలు చేసిన ఫిర్యాదులకు నిర్దిష్ట ఫిర్యాదు నంబర్లు కేటాయించాలి.
5. వేగంగా, 48 గంటల లోపు, కస్టమర్ ఫిర్యాదు/గ్రీవెన్స్ ని పరిష్కరించేందుకు చర్య తీసుకొనుట మరియు ఫిర్యాదు అందిన తేదీ నుంచి 30 రోజులకు మించకుండా దీనిని పరిష్కరించుట.
6. వెబ్ సైట్/మొబైల్ యాప్ లో పిపిఐ ఇష్యూయర్ యొక్క అధిక్రుత/నియుక్త ఏజెంట్ల (పేరు, ఏజెంట్ ఐడి, చిరునామా, సంప్రదింపు వివరాలు, తదితరవి) జాబితాను ప్రదర్శించుట.
7. పిపిఐలకు సంబంధించి తరచు అడిగే ప్రశ్నలకు (ఎఫ్ఎక్యూలు) వెబ్ సైట్/మొబైల్ యాప్ లో సమాధానాలు కూడా ఇవ్వాలి.

A. No. No non-resident shareholder, directly or indirectly, individually or in group through subsidiary, associate or joint venture will be permitted to hold 5 per cent or more in the paid up voting equity capital of the bank for a period of 5 years from the commencement of the business of the bank. [ para 2 (F) of the guidelines ]

Yes. The facility to create pledge, hypothecation or lien against Relief/Savings Bonds is available as in case of other Government securities as explained at Question Nos. 33 & 34. The Government of India has amended the notifications relating to 7% Savings Bonds, 2002, 6.5% Savings Bonds, 2003 (Non-Taxable) and 8% Savings (Taxable) Bonds, 2003 schemes allowing for pledge or hypothecation or lien of these bonds as collateral for obtaining loans from the scheduled banks with effect from August 19, 2008. However, such collateral facility is available only for the loans to be availed by the holders of the bonds and not in respect of the loans availed by third parties.

Banks including those not having operational presence in India are required to obtain prior approval from Reserve Bank for soliciting deposits for their foreign/overseas branches or for acting as agents for overseas mutual funds or any other foreign financial services company.

No. Banks are prohibited from making any short sales of share

Reserve Bank takes a serious view on non-submission of such reports and can take such measures against the delinquent company as it deems fit including reference to Enforcement Directorate.

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.

The title to Relief/Savings Bonds of a deceased sole holder or joint holder may be recognised as per the simplified procedure explained at Question No. 16.

సమాధానం. కనీసం గత 6 నెలల వ్యవధికి అకౌంట్ స్టేట్మెంట్లు జెనరేట్ చేయడానికి/పొందడానికి పిపిఐ హోల్డర్స్ కి, పిపిఐ ఇష్యూయర్స్ అవకాశం కల్పిస్తారు. అకౌంట్ స్టేట్మెంట్ లో కనీసంగా, లావాదేవీ తేదీ, డెబిట్/క్రెడిట్ సొమ్ము, నికర బ్యాలెన్స్ మరియు లావాదేవీ వివరాలు లాంటి వాటిని ఇవ్వాలి. ఇంకా, పిపిఐ ఇష్యూయర్స్ కనీసం 10 లావాదేవీల యొక్క చరిత్ర ఇవ్వాలి.

A. No.It is not envisaged that all the companies in the Promoter Group have to set up the wholly owned NOFHC. As provided in para 2(C)(iii) of the guidelines, only the non-financial services companies/entities and non-operative financial holding companies in the Promoter Group and individuals belonging to Promoter Group, conforming to the stipulation in para 2(C)(ii)(a) and (b), will be allowed to hold the shares of NOFHC. Further, para 2(C)(vii) requires that all the regulated financial services entities, in which the Promoter Group has ‘significant influence’ or ‘control’, (as defined in Accounting Standard 23) shall be held by the NOFHC, and that, such entities cannot hold shares in the NOFHC [para 2 (C) (iii) & (vii)].

It has been decided in public interest that all banks, both Indian and foreign, including those not having an operational presence in India, should seek prior approval from Reserve Bank for the schemes being marketed by them in India to Indian residents either for soliciting foreign currency deposits for their foreign/overseas branches or for acting as agents for overseas mutual funds or any other foreign financial services company.

Resident individuals in India can acquire foreign securities without prior approval in the following cases: -by way of gift from a person outside India; orissued by a company incorporated outside India under Cashless Employees Stock Option Scheme which does not involve any remittance from India; orby way of inheritance from a person whether resident in or outside India; orpurchase of foreign securities out of funds held in the Resident Foreign Currency Account maintained in accordance with the Foreign Exchange Management (Foreign Currency Account) Regulations, 2000; orbonus shares on the foreign securities already held by them; orResident individuals are permitted to make overseas investments without any limit in listed overseas companies that have at least 10% share in an Indian company listed in a recognized stock exchange in India as on 1st January of the year of investment.

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.

Yes.  Relief/Savings Bonds, like other Government securities, can be transferred by execution of transfer forms as explained at Question No. 14. However, the specific Government loan notifications issued for the 7% Savings Bonds, 2002, 6.5% Savings Bonds, 2003 (Non taxable) and 8% Savings Bonds, 2003 (Taxable) have prescribed the specific conditions subject to which such transfers may take place. While all the three Savings Bonds are transferable to the nominee in case of death of the holder, the 7% Savings Bonds, 2002 and 6.5% Savings Bonds, 2003 (Non taxable) are also transferable by way of gift to a "relative" as defined in section 6 of the Indian Companies Act, 1956. Section 6 of the Indian Companies Act, 1956 defines "relative" as under:

A person shall be deemed to be a relative of another if and only if,

a) they are members of a Hindu undivided family; or
b) they are husband and wife; or
c) the one is related to the other in the manner indicated in Schedule 1A of the Indian Companies Act, 1956.

Apart from the above, the three Savings Bonds shall also be transferable in favour of the pledgee/creditor, if the pledgee/creditor invokes the pledge, hypothecation or lien as per Regulation 21 (3) of the G S Regulations.

Ans. In case of PPIs issued by banks and non-banks, customers have recourse to the Reserve Bank - Integrated Ombudsman Scheme, 2021 for grievance redressal. This scheme is available on the RBI website at the link - https://cms.rbi.org.in.

A. The Promoters/Promoter Group cannot set up a bank directly. They have to first set up a wholly owned NOFHC, which will hold the bank and other regulated financial services entities/companies in which the Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard-23).NOFHC could be set-up with equity participation by a sub-set of non-financial services companies/entities/individuals and non-operative financial holding companies in the Promoter Group provided the equity participation is in conformity with the stipulation at para 2 (C) (ii) of the guidelines.

No ratings or guidelines have been prescribed under the Liberalised Remittance Scheme of USD 25,000 on the quality of the investment an individual can make. However, the individual investor is expected to exercise due diligence while taking a decision regarding the investments which he or she proposes to make.

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.

The bank shall compensate the investors for the above mentioned financial loss at a fixed rate of 8% per annum (with effect from April 10, 2012).

జవాబు. పిపిఐ ఇష్యూయర్ ఈ కింది రెండు రకాల్లో ఏదైనా ఒకదానిని కస్టమర్ కి జారీచేయవచ్చు:
ఎ) అతితక్కువ వివరాలుగల సెమీ- క్లోజ్డ్ పిపిఐ;
బి) కెవైసి అనుసరించిన సెమీ- క్లోజ్డ్/ఓపెన్ సిస్టమ్ పిపిఐ;

A. The Promoters/Promoter Group have to first set up a wholly owned NOFHC for holding the bank. They cannot set up a bank directly. In case, some entities/companies in the Promoter Group having ‘significant influence’ or ‘control’ (as defined in Accounting Standard-23) in regulated or unregulated financial services activities do not wish to participate in the voting equity of the NOFHC, they can do so. However, the regulated financial services entities, in which the companies in the Promoter Group have ‘significant influence’ or ‘control’ (as defined in Accounting Standard-23), have to come under the NOFHC. The unregulated financial services activities/entities of the Promoter Group cannot come under the NOFHC. [para 2 (C) (i), (ii), (iii) & (vii) of the guidelines]

Banks may take necessary steps in the matter based on the settled legal position regarding enforcement of the declaration in case the remittance is made on behalf of a minor.

Yes, a person resident in India, being an individual, who is an employee or a director of Indian office or branch of a foreign company or of a subsidiary in India of a foreign company or of an Indian company in which foreign equity holding is not less than 51 per cent, may purchase the equity shares offered by the said foreign company: -Provided that the shares are offered at a concessional price.

Yes, Reserve Bank has given general permission to a person resident of India to acquire foreign security to the extent of the minimum number of qualification shares required to be held for holding the post of Director and this amount shall not exceed 1% of the paid-up capital of the company subject to a limit of USD 20,000 in a calendar year.

సమాధానం.

పైన పేర్కొన్న రకాలలో, వివిధ కారణాలతో (అంటే అనేక సహ- బ్రాండింగ్ భాగస్వాములు ఉండటం; వాలెట్లు/కార్డులు లాంటి రూపాలలో పిపిఐని జారీచేయడం) ఒకే కస్టమర్ కి పిపిఐ ఇష్యూయర్ అనేక పిపిఐలను జారీచేస్తుంటే, కేంద్రీయ డేటాబేస్/మేనేజ్మెంట్ సమాచార వ్యవస్థ (ఎంఐఎస్) ద్వారా పరిమితులను పిపిఐ ఇష్యూయర్ పర్యవేక్షించాలి.

ఉదాహరణకు, ₹1,00,000 పరిమితి, పిపిఐ ఇష్యూయర్ వివిధ ఏర్పాట్లు/రూపాలలో కస్టమర్ కి జారీచేసిన అన్ని ‘కెవైసి అనుసరించిన పిపిఐల్లో’ విలువను కలిపి లెక్కకట్టబడుతుంది.

అలాగే, పిపిఐ ఎండిలో, పేరాగ్రాఫ్ 9.1 (1)లో పేర్కొన్న ₹10,000 పరిమితి, అన్ని ‘కనీస వివరాలుగల పిపిఐలకు’ (వివిధ ఏర్పాట్లు/రూపాలలో పిపిఐ ఇష్యూయర్ జారీచేసినవి) కలిపి లెక్కించబడుతుంది.

అయితే, పరిమితులలో పిపిఐ-ఎండిలోని పేరాగ్రాఫ్ 10లో పేర్కొన్న రెండు కేటగిరిలు కలపబడవు [గిఫ్ట్ ఇన్స్ట్రుమెంట్లు మరియు మాస్ ట్రాన్సిట్ సిస్టమ్స్ పీపీఐలు (పిపిఐ-ఎంటిఎస్)]

A. Yes. All the regulated financial services entities in which the Promoter Group has ‘significant influence’ or ‘control’ (as defined in Accounting Standard 23) will have to be brought under the NOFHC as subsidiaries, or associates or joint ventures. [para 2 (C) (iii) & (vii) of the guidelines]

No. The Scheme does not envisage extension of credit facility against the security of the deposits.

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.

Yes, Reserve Bank on an application may permit a person resident in India to acquire foreign securities by way of rights shares issued by a company incorporated outside India up to an amount not exceeding US$ 20,000 in a block of five calendar years in case the existing shares were held in accordance with the provisions of the law.

Shares/debentures/bonds should be valued at prevailing market prices when they are lodged as security for advances.

Ans. Interoperability is the technical compatibility that enables a payment system to be used in conjunction with other payment systems. Interoperability has been allowed in PPIs through circular dated October 16, 2018 and it has been made mandatory vide circular dated May 19, 2021.

A. The overall track record of the Promoters/Promoter Group for at least 10 years will be seen in all its activities both financial and non-financial. If some, but not all, companies forming part of the Promoter Group have been in existence for less than 10

No. Banks in India can not open a foreign currency account in India for residents under the Scheme.

Yes, Reserve Bank on an application will permit the individual employees/directors of an Indian promoter company engaged in the field of software for acquisition of shares of a JV/WOS abroad provided -the consideration for purchase does not exceed US$ 10,000 or its equivalent per employee in a block of five calendar years,the shares so acquired do not exceed 5% of the paid-up capital of the Joint Venture or Wholly Owned Subsidiary outside India, andafter allotment of such shares, the percentage of shares held by the Indian promoter company, together with shares allotted to its employees is not less than the percentage of shares held by the Indian promoter company prior to such allotment.Further, Reserve Bank may also on an application made to it by an Indian company engaged in the field of software allow its resident employees (including working directors) to purchase foreign securities under the ADR/GDR linked stock option scheme provided the consideration for purchase does not exceed US$ 50,000 or its equivalent in a block of five calendar years.

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.

సమాధానం. అధిక్రుత బ్యాంక్ లేదా నాన్- బ్యాంక్ పిపిఐ ఇష్యూయర్ ఎవరైనా పిపిఐ ‘ఇంటర్ఆపరబిలిటి’ సదుపాయం కల్పించవచ్చు.

No. For the purpose of the Scheme, an OBU in India is not treated as an overseas branch of a bank in India.

A. The requirement that Promoters / Promoter Group should have a past record of sound credentials and integrity as a part of ‘Fit and Proper’ criteria is a matter of overall judgment and no indicative criteria can be spelt out. [para 2 (B) of the guidelines]

Reserve Bank has given general permission to mutual funds approved by SEBI to purchase foreign securities, subject to such terms and conditions as may be stipulated.

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.

Ans. Yes, it is mandatory for a PPI issuer to allow interoperability. It is mandatory for the PPI issuer to give the holders of full-KYC PPIs interoperability through authorised card networks and UPI. All modes of acceptance (including QR codes) and PPI issuance are required to be interoperable by March 31, 2022.

A. No. NOFHC is to be wholly-owned by the Promoters/Promoter Group. Therefore, it cannot be a listed company. [para 2 (C) (i) of the guidelines]

A uniform margin of 40% has been stipulated for all advances against shares.

సమాధానం. కెవైసిని అనుసరించిన పిపిఐలకు మాత్రమే ఇంటర్ఆపరబిలిటి అనుమతించబడుతుంది.