Publications

RBI June 2014

By July 16, 2014 December 20th, 2019 No Comments
Notification/Circular
no.		 Date Subject Amendment
RBI/2013-14/624
A.P. (DIR Series) Circular No.138		 03-Jun-14 Liberalised Remittance Scheme
(LRS) for resident individuals-Increase in the limit from USD 75,000 to USD
125,000 		 The existing limit of USD 75,000
per financial year (April-March) under the LRS has been incxresed to USD
125,000
RBI/2013-14/629
A.P. (DIR Series) Circular No.139		 05-Jun-14 Foreign investment in the
Insurance Sector – Amendment to the Foreign Direct Investment Scheme		 Effective from February 4, 2014,
foreign investment by way of FDI, investment by FIIs/FPIs and NRIs up to 26%
under automatic route shall be permitted in insurance sector subject to the
conditions specified in the Press Note 2 (2014 Series) dated February 4,
2014.
RBI/2013-14/632
A.P. (DIR Series) Circular No.140 		 06-Jun-14 Foreign investment in India –
participation by registered FPIs, SEBI registered long term investors and
NRIs in non-convertible/redeemable preference shares or debentures of Indian
companies		 Registered Foreign Institutional
Investors (FIIs), Qualified Foreign Investors (QFIs) deemed as registered
Foreign Portfolio investors, registered Foreign Portfolio Investors (FPIs),
long term investors registered with SEBI – Sovereign Wealth Funds (SWFs),
Multilateral Agencies, Pension/ Insurance/ Endowment Funds, foreign Central
Banks are permitted to invest on repatriation basis, in
non-convertible/redeemable preference shares or debentures issued by an
Indian company and listed on recognized stock exchanges in India, within the
overall limit of USD 51 billion earmarked for corporate debt. Further, NRIs
may also invest, both on repatriation and non-repatriation basis, in
non-convertible/redeemable preference shares or debentures as above.
RBI/2013-14/633
A.P. (DIR Series) Circular No.141		 06-Jun-14 Pledge of shares for business
purposes in favour of NBFCs		  RBI has delegated its powers to the AD
Category – I banks to allow pledge of equity shares of an Indian company held
by non-resident investor/s in accordance with the FDI policy, in favour of
the Non – Banking Financial Companies (NBFCs) – whether listed or not, to
secure the credit facilities extended to the resident investee company for
bona-fide business purposes / operations, subject to compliance with certain
prescribed conditions 
RBI/2013-14/634
BOD.AML.BC. No. 119/14.01.001/2013-14		 09-Jun-14 Know Your Customer (KYC)
Norms/Anti-Money Laundering (AML) Standards/ Combating of Financing of
Terrorism (CFT) /Obligation of banks under Prevention of Money Laundering Act
(PMLA), 2002 – Clarification on Proof of Address		 Customers may submit only one
documentary proof of address (either current or permanent) while opening a
bank account or while undergoing periodic updation. In case the address
mentioned as per ‘proof of address’ undergoes a change, fresh proof of address
may be submitted to the branch within a period of six months.

In case the proof of address furnished by the customer is not the local
address or address where the customer is currently residing, the bank may
take a declaration of the local address on which all correspondence will be
made by the bank with the customer. No proof is required
to be submitted for such address for correspondence/local address. This address may be verified by the bank through ‘positive
confirmation’ such as acknowledgment of receipt of (i) letter, cheque books,
ATM cards; (ii) telephonic conversation; (iii) visits; etc. In the event of
change in this address due to relocation or any other reason, customers may
intimate the new address for correspondence to the bank within two weeks of
such a change.
RBI/2013-14/640
A.P. (DIR Series) Circular No.142		 12-Jun-14 Transfer of assets of Liaison
Office (LO) / Branch Office (BO) / Project Office (PO) of a foreign entity
either to its Wholly Owned Subsidiary (WOS) / Joint Venture (JV) / Others in
India– Delegation of powers to AD Banks.		 Presently Authorised Dealers are
delegated with powers to allow closure of the accounts of LO/BO and
repatriate the surplus balances subject to submission of prescribed closure
documents. With a view to smoothen the entire process of closure of LO/BO/PO,
RNI has delgated the powers relating to transfer of assets of LO/BO/PO to AD
Category-I banks subject to compliance with certain prescribed conditions.
RBI/2013-14/653
DBOD.No.BAPD.BC.122/22.01.009/2013-14		 24-Jun-14 Financial Inclusion by Extension
of Banking Services – Use of Business Correspondents		 As per extant instructions,
Non-banking Finance Companies (NBFCs) are not allowed to be appointed as
Business Correspondents (BCs) by banks. RBI has now permitted Banks to engage
non-deposit taking NBFCs (NBFCs-ND) as BCs, subject to prescribed conditions.
RBI/2013-14/669
A.P. (DIR Series) Circular No.151		 30-Jun-14 Remittances to non-residents –
Deduction of Tax at Source		 Reserve Bank of India has
reviewed the policy relating to issue of instructions under Foreign Exchange
Management Act, 1999 (FEMA), clarifying tax issues. It has now been decided
that Reserve Bank of India will not issue any instructions under the FEMA, in
this regard. It shall be mandatory on the part of Authorised Dealers to
comply with the requirement of the tax laws, as applicable.

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