RBI December 2014

By January 15, 2015 December 20th, 2019 No Comments
Notification/Circulars Date Subject Amendment
RBI/2014-15/330 DNBR (PD).CC. No. 005 /03.10.42/2014-15 December
01, 2014
to Prevention of Money-laundering (Maintenance of Records) Rules, 2013
new definition of Designated Director has been added and other definitions
have undergone changes like Officially Valid Document now includes only the
documents mentioned in the rule or any other document as notified by the
Central Government in consultation with the Regulator so the discretion given
to NBFCs earlier has been withdrawn, definition of transaction and cash
transactions has been broadened, NBFCs now may maintain records of the
identity of clients, and records in respect of transactions with its clients
in hard or soft format and a set of instructions for low risk customers has
been notified. These rules also fill the gaps caused due to non existence of
instructions on relaince on third party due diligence. The amenments have
been made to rules regarding the accounts of an individual, companies,
partnership firms, trusts, foundations and unincorporated association or body
of individuals.
RBI/2014-15/333 DPSS.CO.PD.No.980/02.14.006/2014-15 December
03, 2014
issued for Issuance and Operation of Pre-paid Payment Instruments (PPIs) in
ensuring growth of the prepaid payment industry, the limit of PPI that can be
issued has now been enhanced from Rs. 50,000 to Rs.1,00,000/- but the balance
in the PPI is not to exceed Rs. 1,00,000/- at any point of time, the maximum
validity of gift cards has been enhanced to three years, a new category of
open system prepaid payment instrument has been introduced ‘KYC compliant
bank accounts for dependent/family members’,’Rupee denominated PPIs issued by
banks for visiting foreign nationals and NRIs’, subject to conditions
RBI/2014-15/341 A.P. (DIR Series) Circular No.47 December
8, 2014
of FDI policy for Railway Infrastructure
of Industrial Policy and Promotion (DIPP) has now permitted 100% FDI in
railway Infrastructure sector under automatic route subject to conditions in
certain activities of the Railway
Transport sector like ‘Construction, operation and maintenance of Suburban
corridor projects through PPP, High speed train projects, Dedicated freight
lines, Rolling stock including train sets, and locomotives/coaches
manufacturing and maintenance facilities, Railway Electrification, Signaling
systems, Freight terminals, Passenger terminals, Infrastructure in industrial
park pertaining to
railway line/sidings including electrified railway lines and connectivities
to main railway line and Mass Rapid Transport Systems. Further, FDI beyond 49
of the equity of the investee company in sensitive areas from security point
of view need to be brought before the Cabinet Committee on Security (CCS) for
RBI/2014-15/340 A.P. (DIR Series) Circular No. 46 December
08, 2014
of FDI policy for Defence
list of defence items as finalised by Department of Defence Production,
Ministry of Defence has clarified that items not in the list would not
require industrial license for defence purposes. The Security Manual for
Licensed Defence Industry has been finalised. Further FDI, FIIs, RFPIs, NRIs,
FVCIs and QFIs upto 49% under government route are now permitted subject to
the conditions in Press Note 7 (2014 Series). Portfolio investment
(RFPI/FII/NRI/QFI) and FVCI investment are capped at 24% of the total equity
of the investee company and will be under automatic route. Also, the listed
investee company engaged in defence sector shall immediately allocate limits
for portfolio investment for RFPI (including QFI and FII), NRI (not exceeding
10%) and FVCI within the default portfolio investment limit of 24% being
permitted now and approach Reserve Bank, Central Office, Foreign Investment
Division, Mumbai so that allocated limits can be monitored.
RBI/2014-2015/344 A.P. (DIR Series) Circular No.48 December
09, 2014
Investments by Alternative Investment Funds permitted
a review, it has been decided to permit an Indian Alternative
Investment Fund (AIF), registered with Securities and Exchange Board of
India (SEBI), to invest overseas.
RBI/2014-15/354 DBR.No.BP.BC.53/21.04.132/2014-15 December
15, 2014
Structuring of Existing Long Term Project Loans to Infrastructure and Core
allowed scheduled commercial banks (excluding local area banks
and regional rural banks) to flexibly structure the existing project loans
to infrastructure projects and core industries projects with the option to
periodically refinance these loans as per certain norms.
RBI/2014-15/357 A.P. (DIR Series) Circular No.49 December
16, 2014

Delegation of work to Regional Offices- Submission of Statements / Returns of
Money Transfer Service Scheme
clarification has been issued to a circular issued in July, 2014 [A.P. (DIR
Series) Circular No. 8 of July 18, 2014] that subsequent to delegation of
Money Transfer Service Scheme (MTSS) work, all Authorised Persons, who are
Indian agents under MTSS are required to make all their correspondence with
Reserve Bank including submission of prescribed statements to the Regional
Office of the Foreign Exchange Department of the Reserve Bank, under whose
jurisdiction their registered offices function instead to the Central Office.
RBI/2014-15/360 A.P. (DIR Series) Circular No.51 December
17, 2014
Exchange Management (Deposit) Regulations, 2000
the objective of bringing all the multilateral organisations at par, for
opening of accounts in India, it has been decided to include the exemptions
laid down in Foreign Exchange Management (Deposit) Regulation, 2000
(Notification No. FEMA 5/2000-RB dated May 3, 2000) i.e. deposits held in
accounts maintained with an authorised dealer by any multilateral
organization of which India is a member nation, and its subsidiary/affiliate
bodies in India, and its or their officials in India.
RBI/2014-15/361 FMRD.FMID.01 /14.01.02/2014-15 December
19, 2014
– Counterparty Confirmation waivered
of OTC trades in Commercial Papers, Certificate of Deposits and OTC repo
trades in corporate debt securities, CPs, CDs and non-convertible debentures
(NCDs) of original maturity less than one year on F-TRAC which had to be
physically confirmed by the back offices of the counterparties has been
amended and the requirement of exchange of physical confirmation of trades
matched on F- TRAC has been waived subject to conditions laid down in the
notification. Further, such waiver will also be subject to review in case of
any change in ownership of the F-TRAC platform or reporting arrangements.
RBI/2014-15/362 DBR.No.CID.BC.54/20.16.064/2014-15 December
22, 2014
in classifying/declassifying a non-cooperative borrower and reporting to
Central Repository of Information on Large Credits
measures have been issued for classifying or declassifying a borrower as a
non-cooperative borrower and reporting information on such borrowers to the
Central Repository of Information on Large Credits (CRILC).
RBI/2014-15/371 A.P. (DIR Series) Circular No.54 December
29, 2014
of Overseas Direct Liberalization for Investments by Indian Party
order to grant more flexibility to the Indian party regulations relating to
Creation of charge on shares of JV / WOS / step down subsidiary (SDS) in
favour of domestic / overseas lender, domestic assets in favour of overseas
lenders to the JV / WOS / step down subsidiary, overseas assets in favour of
domestic lender have been liberalized.
RBI/2014-15/372 DBR. AML. No. 9644 /14.07.018/2014-15 December
30, 2014
Agreement with United States of America under Foreign Accounts Tax Compliance
avoid withholding tax, the Government of India has advised that Foreign
Financial Institutions (FFIs) in India need to register with IRS and obtain a
Global Intermediary Identification Number (GIIN) before January 1, 2015. The
FFIs who have registered but have not obtained a GIIN should indicate to the
withholding agents that the GIIN is applied for, which may be verified by the
withholding agents in 90 days.
RBI/2014-15/374 DBR.IBD.No.9745/23.13.001/2014-15 December
31, 2014
format of reporting for Representative Offices of Foreign Banks in India to
the RBI
has been decided that representative offices of foreign banks in India will
now use the revised format of reporting to the Reserve Bank of India.

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