Know Your Customer Guidelines (Updated up to September 02, 2016) (This is a summarised and simplified version of the Reserve Bank of India’s Know Your Customer guidelines.) Q1. What is KYC? Why is it required? Response: KYC means “Know Your Customer”. It is a process by which banks obtain information about the identity and address […]
Updated Know Your Customer (KYC) guidelines issued by RBI Read More »
The Reserve Bank of India vide its Notification No RBI/2014-15/363 DBR.RRB.BC.No.55/03.05.33/2014-15 dtd Dec 22 , 2014 has notified additional guidelines to RRBs with regard to levy of penal charges on non-maintenance of minimum balances in savings bank accounts. According to this notification, the RRBs shall adhere to the following guideline for levy of penal charges for non-maintenance
New RBI notification for RRB regarding charges on Minimum Balance in Savings Accounts Read More »
The Real Time Gross Settlement (RTGS) has become an intergral part of todays business irrespective of the size of the Business. Due to growing usage of the same and demand from the market, the RBI has decided to advance the RTGS Business hours to 8:00 hours from 9.00 hours and extend closing time of RTGS to 20.00
Extension of RTGS Time window – New initiative by RBI Read More »
The Reserve Bank of India vides its Notification No RBI/2013-14/634 DBOD.AML.BC. No. 119/14.01.001/2013-14 dtd 9th June 2014 has further simplified the KYC norms for opening/maintenance of bank accounts. As per this circular, the simplified requirement is as follows :- 1) Any one Address Proof (either Permenant or Present) is required to be submitted. When there is a
RBI further simplifies KYC Norms for Bank Accounts Read More »
The Reserve Bank of India had recently issued two important Circulars regarding the following :- 1) Levy of penal charges on non-maintenance of minimum balances in inoperative accounts. 2) Levy of foreclosure charges/pre-payment penalty on Floating Rate Term Loans. As per the above circulars, the RBI has instructed the banks as follows :- 1) No
Two Important notifications from RBI Read More »
The Reserve Bank of India vide its RBI/2013-14/490 A.P. (DIR Series) Circular No. 102 dtd 11th Feb 2014, has amended the form for reporting the Foreign Direct Investment (FDI) . The new form requires the following additional details of the investments :- 1) Brownfield/Greenfield investments 2) Date of Incorporation of investee company Henceforth , the new reporting
New FCGPR form for FDI Reporting notified Read More »
The Reserve Bank of India vide its Notification No DBOD. No. Dir. BC.107/13.03.00/2011-12 dtd 5th June 2012 has issued a new directive to all banks with regard to charge of foreclosure/prepayment penalties in respect of Home loans taken on floating rate method. As per the above notification, the banks will not be permitted to charge foreclosure charges/pre-payment
Fore-closure charges ,Pre-payment penalties on Home loans abolished Read More »
Exchange Earners Foreign Currency Account (EEFC) Account holders were permitted to retain 100% of their Forex earnings in EEFC Account with any Authorised Dealers in India. This scheme has been reviewed now and it has been revised as follows :- 1) 50% of the balances lying in the EEFC Account should be transferred to Indian
New RBI regulation on EEFC Account Forex Conversion. Read More »
The Reserve Bank of India vide its Notification No RBI/2011-12/536 A. P. (DIR Series) Circular No.117 dtd 07 05 2012 has notified certain changes in the regulations with regard to transfer of funds from Non-Resident Ordinary (NRO) Account to Non Resident External (NRE) Account. As per this notification, henceforth , NRIs shall be eligible to transfer funds from NRO
New RBI Regulation on transfer of funds from NRO Account to NRE Account Read More »
The Reserve Bank of India vide its Notification No DBOD.AML. BC. No. 97/14.01.001/2011-12 dtd 27th April 2012 has given new guidelines in respect of procedures to be followed for transfer of Bank Accounts from one branch to another branch of the same bank. As per this Notification , the banks should not insist on opening a
New RBI regulation on Intra-bank Deposit Accounts Portability Read More »
The Reserve Bank of India vide its Notification No DBOD. AML.BC. No 93 /14.01.001/2011-12 dtd April 17, 2012 has given new guideline in respect of acceptance of Know Your Customer (KYC) documents in respect of Proprietary Concerns. As per the above guideline, the following documents are also to be accepted as KYC documents in addition to the
New RBI guideline on KYC Documents of Proprietary Concerns Read More »
The Reserve Bank of India vide its Monetary Policy statement has announced the reduction of repo rate by 50 basis points. Consequent to this announcement, it is likely that the banks shall reduce the rate of interest on Car,Housing and other loans which are offered under the Floating rate of Interest.
RBI reduces rate by 50 basis points Read More »
Nowadays,large number of NBFC’s have started giving loans against the Gold Jewellery and the size of the Loan Portfolio is in increasing trend day by day. In order to regulate the same and as a prudential measure , the reserve bank of India vide its Notification dtd 21st March 2012 has imposed certain restrictions on
RBI Restriction on Gold Loans given by NBFC Read More »
The Reserve Bank of India vide its Circular No A.P. (DIR Series) Circular No. 82 dtd 21/02/2012 has liberalised the payment of foreign exchange upto 5000 USD on account of Imports. The relevant circular is reproduced below :- [gview file=”http://bssridhar.com/blog/wp-content/uploads/2012/02/rbifeb12.pdf”]
Liberalisation of payment of Foreign exchange for Imports. Read More »
The Reserve Bank of India vide its Notification No RBI/2011-12/303 DTD 16.12.2011 has deregulated the Interest rates on Non-Resident (External) , Rupee (NRE) Deposits and Non-Resident (NRO) Accounts. In view of the above, the banks are now free to determine the rate of Interest payable on these deposits. However the rate of interest offered on
Deregulation of Interest rates on NRE & NRO Deposits Read More »
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