Statutory Boost

The Reserve Bank of India vide its  Notification dated 4th August 2021 has issued guidelines for implementation of its earlier circular on opening of current accounts by banks. As per the new guidelines, RBI has given banks time until 31st October 2021 to implement the new rules on current accounts issued in 2020 . The regulator had previously set a deadline of 31 July. Banks shall put in place a monitoring mechanism, both at head office and regional/zonal office levels to monitor non-disruptive implementation of the circular and to ensure that customers are not put to undue inconvenience during the implementation process. The RBI has reiterated that, in case of borrowers who have not availed of CC/OD facility from any bank , there is no restriction on opening of current accounts by any bank if exposure of the banking system to such borrowers is less than ₹ 5 crore and In case of borrowers who have not availed of CC/OD facility from any bank and the exposure of the banking system ...

Reserve Bank of India vide Circular No. RBI/2021-22/72 dated 23rd July,2021 , has amended the Master Circular on Loans and Advances – Statutory and Other Restrictions dated 1st July, 2015 . It has increased the threshold limit f or personal loans granted to any director of other bank from ₹ 25 Lakhs to ₹ 5 crores . I t has also increased the threshold limit to ₹ 5 crores for personal loans given to: any relative other than spouse and minor / dependent children of their own Chairman/Managing Directors or other Directors; any relative other than spouse and minor / dependent children of the Chairman/Managing Director or other directors of other banks; any firm in which any of the relatives other than spouse and minor / dependent children as mentioned in (1) & (2) above is interested as a partner or guarantor; and any company in which any of the relatives other than spouse and minor / dependent children is interested as a major shareholder or as a director or as a guarantor or is in co...

Reserve Bank of India has extended the last date for the submission of Foreign Liabilities and Assets (FLA) Returns -2021 till 31st July, 2021 .  Entities which are filing FLA return for the first time or with revised Unique Identification Number (UIN) are required to first register themselves to generate the login credentials. Then they shall proceed with the filing of FLA Return. Entities which have already registered can submit their FLA Return directly using their earlier login credentials. Feel free to contact in case of any query or consultation.                  +91-7417634371     kuldeepdiggiwal@gmail.com

Today, at 10:00 a.m. RBI Governor Mr. Shaktikanta Das made an unscheduled statement. The governor said that economic situation has altered drastically due to COVID 2nd wave. After a brief assessment of the current ongoing situation in the country he announced several measures. Following measures were announced :                 1.     Term Liquidity Facility of ₹50,000 crore to Ease Access to Emergency Health Services a.       On-tap liquidity of ₹ 50,000 crore at repo rate is being opened till March 31, 2022. b.       Under the scheme banks can support entities including vaccine manufacturers, medical facilities, hospitals and also patients. Such lending will get priority sector classification till repayment or maturity. c.       Banks to create a Covid loan book under the scheme. Such banks can park liquidity equal to Covid loan book with t...

Reduction in repo rate by 40 bps – from 4.4% to 4%. Term Loan Moratorium extended by another 3 months till 31 st August, 2020 . A facility of Rs. 15,000 crores of credit for 90 days for US dollar swap facility will be provided to EXIM Bank . This will have a rollover facility to up to one year.  Another 90 days extension for the 90-day term loan facilities to SIDBI . This will provide additional liquidity support to the MSME sector. Maximum permissible period of pre and post shipment of credits increased from 1 year to 15 months. Lending institutions are being permitted to restore the margins for working capital to the origin level by March 31, 2021. Group exposure limit of banks will be increased from 25% to 30%. In order to manage importer's operative cycle, outward remittances against normal imports into India, reduced to 6 months from 12 months. Voluntary retention route for FPIs Voluntary retention route for FPIs announced Extension of 3 months 75% utilisation of inve...