Category Archives: Notifcations

Relaxation of Rules – Foreign Exchange Management Act, 1999 – Import of Rough, Cut and Polished Diamonds

As per A.P.(DIR Series) Circular No.59 dated May 6, 2011, in terms of which AD Category – I banks were permitted to approve Suppliers’ and Buyers’ Credit (Trade Credit), including the usance period of Letters of Credit for import of Rough, Cut and Polished Diamonds for a period not exceeding 90 days from the date of shipment.

In the recent past, representations have been made to Reserve Bank of India, by The Gem & Jewellery Export Promotion Council and Diamond importers that the Clean Credit i.e. credit given by a foreign supplier to its Indian customer/ buyer, without any Letter of Credit (Suppliers’ Credit) / Letter of Undertaking (Buyers’ Credit) / Fixed Deposits from any Indian financial institution for import of Rough, Cut and Polished Diamonds, may be permitted for a period not exceeding 180 days from the date of shipment.

RBI in consultation of Government of India has issued the necessary revised directions vide RBI Lr.No. RBI/2014-15/119 A.P. (DIR Series) Circular No.2 dt.July 7, 2014.

The revised directions will come into force with immediate effect.

It is the responsibility of AD Category – I banks to  ensure that due diligence is undertaken and Know-Your-Customer (KYC) Norms and Anti-Money Laundering (AML) Standards, issued by the Reserve Bank are adhered to while undertaking the import transactions.

Further, any large or abnormal increase in the volume of business should be closely examined to ensure that the transactions are bonafide. RBI has also clarified that all other instructions relating to imports of Rough, Cut and Polished Diamonds shall continue.

The move is expected to benefit a large number of medium Gem importers.

Advertisements

Reserve Bank of India announces rate of Interest on Floating Rate Bonds 2015

 

On 27/06/2014, RBI has announced that the rate of interest on the Floating Rate Bonds, 2015 (FRB, 2015) applicable for the year (July 2, 2014 to July 01, 2015) will be 8.83 percent per annum.

Dated Government securities are long term securities and carry a fixed or floating  coupon (interest rate) which is paid on the face value, payable at fixed time periods (usually half-yearly). The tenor of dated securities can be up to 30 years.

Floating Rate Bonds – Floating Rate Bonds are securities which do not have a fixed coupon rate. The coupon is re-set at pre-announced intervals (say, every six months or one year) by adding a spread over a base rate. In the case of most floating rate bonds issued by the Government of India so far,the base rate is the weighted average cut-off yield of the last three 364- day Treasury Bill auctions preceding the coupon re-set date and the spread is decided through the auction. Floating Rate Bonds were first issued in September 1995 in India.

The rate of interest on the FRB, 2015 was set at a mark-up (as decided in the auction held on July 1, 2004) over and above the variable base rate. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices emerging in the three auctions of Government of India 364 day Treasury Bills immediately preceding the relative annual coupon reset date which worked out to be 8.64 per cent. The mark-up decided in the auction held on July 1, 2004 was (+) 0.19 (plus 0.19) percent. The coupon rate has been fixed at 8.83 per cent per annum accordingly.

Reserve Bank rejects the Licence Application of Birbhum District Central Co-operative Bank Ltd. in West Bengal

 

As  Birbhum DCCB  failed to comply with relaxed licensing conditions set by the Reserve Bank of India by September 30, 2012, in consultation with NABARD, the Reserve Bank of India, on May 15, 2014 delivered the order rejecting licence application to the above mentioned bank for conducting banking business in India.

One of Birbhum’s famous landmarks is Santiniketan, where Shri Rabindranath Tagore spent his last days on earth.

Apart from Santiniketan, Bakreswar and Tarapith complete the cultural tourist circuit of Birbhum.

The latest attraction of Birbhum is B.A.B.L.I