MCA provided waiver of additional fees on list of forms

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Annual Return of LLP (Form 11) required to be file by July 31, 2021

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DIR-3 KYC form to be filed by September 30, 2021

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RBI to give booster shot to Covid-hit services, MSMEs

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The tax department has launch the much-awaited new portal 2.0

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MCA launches first phase of MCA21 V3.0 portal

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RBI announced to cut the key repo rate, at which it lends to banks, for a third straight time by 25 basis points to 5.75 percent.

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The Reserve Bank of India (RBI) has by its notification dated June 28, 2019 has hereby replaced the email based annual reporting of Foreign Liabilities and Assets (FLA) by a web based form available through the FLAIR System.

The move is consistent with the enhanced information security policy and is expected to further improve the quality of data.

The email based reporting has now been discontinued and the Companies would be required to report the annual return on Foreign Liabilities and Assets through this new portal.

 

Click here for more information

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Annual Return on Foreign Liabilities and Assets Reporting by Indian Companies

Reporting by Indian Companies

Attention of Authorised Dealer Category – I banks is invited to A.P. (DIR Series) Circular No.133 dated June 20, 2012 which stipulated that all Indian companies which have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year, should file the annual return on Foreign Liabilities and Assets (FLA) in the soft form which can be duly filled-in, validated and sent by e-mail to the Reserve Bank by July 15 of every year. The coverage was enhanced to reporting of inward and outward foreign affiliate trade statistics (FATS) and reporting by the limited liability partnerships (LLPs) through the subsequent circulars {A .P. (DIR Series) Circular No. 145 dated June 18, 2014, A.P. (DIR Series) Circular No.22, dated October 21, 2015, and A.P. (DIR Series) Circular No. 29, dated February 02, 2017}.

2. With the objective to enhance the security-level in data submission and further improve the data quality, the present email-based reporting system for submission of the FLA return will be replaced by the web-based system online reporting portal. It would facilitate data submission by eligible entities {including the alternative investment funds (AIF) registered with the Securities and Exchange Board of India (SEBI) as also the reporting of foreign investment in the form of capital/profit share contribution received/transferred in case of LLPs and investment by persons resident outside India in an investment vehicle and as defined in Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations 2017, dated November 7, 2017}.

3. Following are the main features of the revised Foreign Liabilities and Assets Information Reporting (FLAIR) system:

1. Reserve Bank would provide a web-portal interface https://flair.rbi.org.in to the reporting entities for submitting “User Registration Form” (containing entity identification and business user details, where LLPs and AIFs will no longer required to use dummy CIN). The successful registration on web-portal will enable users to generate RBI-provided login-name and password for using FLA submission gateway and would include system-driven validation checks on submitted data.

2. The form will seek investor-wise direct investment and other financial details on fiscal year basis as hitherto, where all reporting entities are required to provide information on FATS related variables (it was mandatory only for subsidiary companies earlier). In addition, the revised form seeks information on first year of receipt of FDI/ODI and disinvestment.

3. Reporting entities will get system-generated acknowledgement receipt upon successful submission of the form.

4. They can revise the data, if required, and view/download the information submitted.

5.Entities can submit FLA information for earlier year/s after receiving RBI confirmation on their request email.

6. The existing mechanism of email-based submission of FLA forms will be discontinued.

7. Indian entities not complying with above, will be treated as non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder.

8. These directions will come into force with immediate effect and would be applicable for reporting of information for the year 2018-19. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

9. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

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The Reserve Bank of India on Friday released fresh guidelines to deal with bad loans after the Supreme Court quashed its 12 February, 2018, circular, which mandated lenders to start resolution even if there was a one-day default. New NPA resolution norms replace all the previous models, the central bank said. Under the new norms, defaults are to be recognized within 30 days, says RBI.

During this review period of 30 days, lenders may decide on the resolution strategy, including the nature of the resolution plan [RP] and the approach for implementation of the RP.

In its prudential framework for resolution of stressed assets, RBI said, "Lenders shall recognise incipient stress in loan accounts, immediately on default, by classifying such assets as special mention accounts."

The circular was struck down by the Supreme Court of India in April after several companies had challenged the guidelines in court arguing the time given by the central bank was insufficient to tackle bad debt.

The RBI has also asked banks to make additional provisions in case of failure to implement a resolution plan within given timelines, the circular showed.

The fundamental principles underlying the regulatory approach for resolution of stressed assets are as under:

*All lenders must put in place board-approved policies for resolution of stressed assets

* It is expected that the lenders initiate the process of implementing a resolution plan [RP] even before a default

* Lenders shall report credit information on all borrowers having aggregate exposure of INR 5 crore and above with them

* In cases where RP is to be implemented, all lenders shall enter into an inter-creditor agreement [ICA]

* Lenders shall submit weekly report of instances of default by all borrowers with aggregate exposure of INR 5 crore and above

* ICA to provide rules for finalisation, implementation of RP for those with credit facilities from more than one lender

RBI said intent to evergreen stressed accounts by lenders will be subjected to stringent actions including higher provisioning & monetary penalties.

"Resolution plans shall provide for payment not less than the liquidation value due to the dissenting lenders," stated RBI in its latest framework.

On accounts with aggregate exposure above a threshold with lenders, resolution plan is to be implemented within 180 days from review period and lenders shall undertake a review of the borrower account within thirty days from default

RBI said resolution plan underway as on date of circular may be pursued by lenders under revised framework subject to meeting specified conditions

 

Read more about RBI Circular 

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RBI scraps NEFT, RTGS Transaction Charges

  • By : abiZa Team
  • June 06, 2019
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The RBI in its meeting on Thursday decided not to levy the NEFT and RTGS charges with a aim to boost the digital transactions.

The Central Bank  levies minimum charges on the Bank as a result the Banks will be required to pass these benefits to their customers and the same will be instructed to the Banks very shortly. 

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The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of 24 NBFC dated April 22, 2019.

 

Click here to see the list of NBFC whose registration stands to be cancelled

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In view of the growing significance of FinTech innovations and their interface with the financial sector as well as financial sector entities, the Financial Stability and Development Council - Sub Committee had decided to set up a Working Group (WG), to look into and report on the granular aspects of FinTech and its implications, so as to review and reorient appropriately the regulatory framework and respond to the dynamics of the rapidly evolving FinTech scenario.

Pursuant to this decision, Reserve Bank of India set up an inter-regulatory WG under the chairmanship of Executive Director, Department of Banking Regulation (DBR) to look into and report on the granular aspects of FinTech, to leverage on the developments in FinTech space. The WG included representatives from RBI, SEBI, IRDA, PFRDA, NPCI, IDRBT, select banks and rating agencies. The ‘Report of the WG on FinTech and Digital Banking’ was placed in public domain in February 2018. One of the key recommendations of the WG was to introduce an appropriate framework for a ‘Regulatory Sandbox’ within a well-defined space and duration.

The Reserve Bank of India today released the draft ‘Enabling Framework for Regulatory Sandbox’. Comments on the draft guidelines are invited from stakeholders by May 08, 2019. Comments/feedback on the draft framework may be sent by email or to the following address with subject line as ‘Feedback on the Draft Enabling Framework for Regulatory Sandbox’:

Chief General Manager-in-Charge,
Department of Banking Regulation,
Reserve Bank of India, Central Office,
12th Floor,
Shahid Bhagat Singh Marg, Fort,
Mumbai – 400001

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The auction would be a multiple-price based auction, i.e. successful bids will get accepted at their respective quoted prices for the source and destination securities.

Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 22, 2019 (Monday) between 10.30 a.m. and 12.00 Noon. 

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The Reserve Bank of India (RBI) said it has not yet approved a merger proposal of private-sector lender Lakshmi Vilas Bank Ltd and Indiabulls Housing Finance Ltd.

Responding to media speculation that the presence of two nominee directors of RBI on the board of Lakshmi Vilas Bank implies RBI's indirect approval of the deal, the central bank said the deal does not have its approval at this stage.

"It is also clarified that presence of additional directors nominated by the RBI on the Board of LVB (Lakshmi Vilas Bank) does not imply any approval of the RBI of the merger proposal", the central bank said in a statement on Saturday, adding that the directors have no view on the deal.

It said it will examine the proposal upon receiving it from the parties in line with regulatory guidelines.

The companies had said in a filing on Friday that they will merge operations in a share-swap deal.

Shareholders of the Chennai-based bank will get 0.14 share in Indiabulls for every share held in the lender, according to terms of the deal disclosed on Friday.

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The RBI has slapped a penalty of Rs 2 crore on Punjab National Bank (PNB) for non-compliance of regulatory directions with regard to SWIFT operations, the state-run lender said Tuesday.

SWIFT is a global messaging software used for transactions by financial entities. The massive Rs 14,000-crore fraud perpetrated by billionaire jeweller Nirav Modi and his uncle Mehul Choksi at the PNB was a case of misuse of this messsaging software.

In a regulatory filing, the PNB said the Reserve Bank in a letter dated March 25 has informed the bank about the penalty.

"In the matter of violations of regulatory directions by Punjab National Bank observed during assessment of implementation of SWIFT- related operational controls, the Reserve Bank of India, (imposes) an aggregate penalty of Rs 20 million ... on Punjab National Bank," it said.

Earlier this year, the Reserve Bank had imposed penalties worth Rs 71 crore on 36 public, private and foreign banks for non-compliance with various directions on time-bound implementation and strengthening of SWIFT operations. However, the list did not include PNB.

The major banks which were fined by the regulator included SBI, ICICI Bank, HSBC, Bank of Baroda, Citibank, Canara Bank and Yes Bank. 

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The Reserve Bank of India has sanctioned the Scheme of Amalgamation of the entire undertaking of DBS Bank Ltd., India with DBS Bank India Limited which has been granted licence by the Reserve Bank to carry on the business of banking in India through Wholly Owned Subsidiary (WOS) Mode under section 22(1) of the Banking Regulation Act, 1949. The Scheme has been sanctioned in exercise of the powers contained in sub-section (4) of Section 44A of the Banking Regulation Act, 1949.

The Scheme will come into force with effect from March 01, 2019. All the branches of DBS Bank Ltd. in India will function as branches of DBS Bank India Limited with effect from March 01, 2019.

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The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following 28 companies.

 

Click here to see the notification.

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