Search Result for : Reserve Bank Of India Rbi

RBI scraps LoUs, LOCs for trade credit

The Dollar Business Bureau The Reserve Bank of India (RBI) on Tuesday scrapped issuance of guarantees in the form of Letter of Undertaking (LoU) and Letter of Comfort (LoC) by the commercial banks, with immediate effect. The latest regulatory clampdown by the RBI came in the wake of fraud in Punjab National Bank (PNB), as the regulator tries to plug a loophole and improve due diligence in trade credit by banks.  However, the regulator said that the Letters of Credit and bank guarantees may continue to be issued, subject to meeting certain rules. These instruments are a forms of trade finance used by importers for funding their international purchases. “On a review of the extant guidelines, it has been decided to discontinue the practice of issuance of LoUs/LoCs for Trade Credits ...

RBI keeps interest rates unchanged on inflation risks

The Dollar Business Bureau The Reserve Bank of India (RBI), in its sixth bimonthly Monetary Policy Committee meeting, on Wednesday kept the repo rate unchanged at 6%, while hinting on tight monetary conditions due to rising inflation risks. The Bank also increased the Consumer Price Index (CPI) inflation forecast for March-end to 5.1% and estimated that inflation would be in the range of 5.1-5.6% in the first six months of the next fiscal. “On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%,” RBI said in a statement. “Consequently, the reverse repo rate under the LAF remains at 5.75%, and ...

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Auction for Sale (Re-issue) of Government Stock (GS).

Dated 22nd December, 2017 | Copy of | Finance Notification   Auction for Sale (Re-issue) of Government Stock (GS) Government of India (GoI) hereby notifies sale(re-issue) of the following Government Stocks:    Subject to the limit of ` 15000 Cr, being total notified amount, GoI will have the option to retain additional subscription up to ` 1000 Cr against any of the above security. The sale will be subject to the terms and conditions spelt out in this notification (called „Specific Notification). The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 as per the terms and conditions specified in the General Notification F.No.4(13)–W&M/2008, dated October 8, 2008 issued by Government of India. Allotment to Non-competitive Bidders ...

Indias CAD increases two-fold to $7.2 bn in Q2

The Dollar Business Bureau India’s current account deficit (CAD) in the second quarter of this fiscal increased two-fold to $7.2 billion or 1.2% of gross domestic product (GDP) on year-on-year basis, due to higher increase in merchandise imports, mainly oil, according to the Reserve Bank of India (RBI). However, it is narrowed steeply from $15 billion or 2.5% of GDP compared to the preceding quarter of 2017-18. “India’s CAD at $7.2 billion (1.2% of GDP) in Q2 of 2017-18 narrowed sharply from $15 billion (2.5% of GDP) in the preceding quarter, but was substantially higher than $3.4 billion (0.6% of GDP) in Q2 of 2016-17,” the RBI said on Wednesday. “The widening of the CAD on a year-on-year basis was primarily on account of ...

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Investment by Foreign Portfolio Investors (FPI) in Government Securities

Dated 12th December, 2017 | Copy of | RBI A.P.(DIR Series) Circular No.14 |  To,All Authorized Persons Investment by Foreign Portfolio Investors (FPI) in Government Securities Medium Term Framework – Review Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Schedule 5 to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 notified vide Notification No.FEMA.20/2000-RB dated May 3, 2000, as amended from time to time. Revision of Limits for the next quarter Jan - Mar 2018 2. The limits for investment by FPIs for the quarter January – March 2018 is increased by INR 64 billion in Central Government Securities (Central G-Secs) and INR 58 billion in State Development Loans (SDLs). The revised limits are ...

RBI hikes FPI investment limits in Government Securities

The Dollar Business Bureau The Reserve Bank of India (RBI) on Tuesday increased the investment limits for foreign portfolio investors (FPIs) in central government securities (G-Secs) by Rs.64 billion and in State Development Loans (SDLs) by Rs.58 billion. “The limits for investment by FPIs for the quarter January–March 2018 is increased by Rs.64 billion in Central Government Securities (Central G-Secs) and Rs.58 billion in State Development Loans (SDLs),” RBI said in an announcement (A.P. DIR Series Circular No. 14). “The revised limits are allocated as per the modified framework prescribed in the RBI/2017-18/12 A.P. (Dir Series) Circular No.1 dated July 3, 2017,” it added. The total limit of G-Secs will be Rs.2564 billion, of which Rs.1913 billion for general category FPIs and Rs.651 billion ...

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Master Direction - Money Changing Activities

Dated 1st January, 2016 | Copy of | RBI FED Master Direction No.3/2015-16 | 

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Master Direction Export of Goods and Services

Dated 1st January, 2016 | Copy of | RBI FED Master Direction No.16/2015-16 |