Tuesday, July 30, 2013

RBI's steps to buy redemption for rupee

http://www.indianexpress.com/news/rbis-24-steps-to-buy-redemption-for-rupee/1146078/0

Below is a list of currency-related measures from Indian policy makers this year:

JULY
* RBI further lowers banks' limit on borrowing under daily liquidity adjustment facility (LAF); increases banks' cash reserve ratio requirements, announces 60 billion rupees sale in cash management bills.
* RBI tightens gold imports again, making them dependent on export volumes
* RBI raises the Marginal Standing Facility rate and Bank Rate, caps banks' limit on borrowing under daily LAF and announces sale of 120 billion rupees in debt via open market operations.
* RBI extends relaxation of the all-in-cost ceiling for issuers of external commercial debt
* India's regulators toughen rules for derivatives trading in currency markets
* RBI eases rules for non-bank asset finance companies to raise debt overseas
* RBI introduces provisioning, capital requirements for bank exposed to corporates with unhedged FX

JUNE
* India further tightens gold import rules
* RBI extends buyback time period of foreign currency convertible bonds until Dec. 31
* RBI allows telecommunications companies to refinance rupee loans until March
* RBI tightens gold lending norms for regional rural banks
* RBI eases rules for low-cost builders to access overseas loans, hedge entire borrowing
* RBI relaxes some forex option premium payment rules
* RBI asks exporters to realise dollar earnings and bring them back into the country within one year
* RBI restricts loans against gold coins by co-operative banks
* India fin min says RBI advised banks not to sell gold coins
* India raises gold duty to 8 percent
* RBI extends gold import curbs on nominated and trading agencies
MAY
* RBI mulls easing hedging norms for exporters, importers
* RBI cuts timeframe for exporters to repatriate earnings

Saturday, July 13, 2013

Banks seek lower tenure for non-resident deposits

http://www.thehindubusinessline.com/industry-and-economy/banking/banks-seek-lower-tenure-for-nonresident-deposits/article4905576.ece
To attract more dollars into the domestic market, bankers have requested the Reserve Bank of India to cut the minimum period of investment in Foreign Currency Non Resident (FCNR) and Non Resident External (NRE) account to six months from one year now.

FCNR deposits, which have a minimum tenure of one year and a maximum of five, can be opened by overseas Indians with banks in India.

NRE deposits are also opened with banks in India by non-resident Indians who can convert their dollar investments into rupee at the time of investment.

“We have requested that if the minimum investment period on FCNR and NRE deposits can be reduced to at least six months, it will help us bring some more dollars into the country,” said K.R. Kamath, Chairman and Managing Director, Punjab National Bank.

In the first two months of the current fiscal, FCNR(B) deposits in the banking system nudged up by just $207 million to $15.395 billion as at May-end 2013. FCNR deposits can be opened in US dollar, euro, British pound sterling, Canadian dollar. Australian dollar, Japanese yen, Swiss franc, New Zealand dollar, Danish krone, and Swedish krona.

Monday, July 1, 2013

Muthoot Finance files application for banking licence

http://www.thehindubusinessline.com/industry-and-economy/banking/muthoot-finance-files-application-for-banking-licence/article4869434.ece

Gold loan company Muthoot Finance Ltd today filed an application with the Reserve Bank of India for a banking licence.
Confirming that the non-banking finance company has filed its application, K.P.Padmakumar, Executive Director, said that Muthoot Finance would set up a non-operative financial holding company to conform to the RBI guidelines.
While MFL would hold 90 per cent stake in the holding company, the balance 10 per cent will be held by the promoters.
Padmakumar said that Muthoot Finance knew the "rural heartland " very well and that most of its 4400 branches were located in Tier 2 and Tier 3 cities.
"Our application should be eminently considerable given our existing focus on rural india", Padmakumar said.
He also said that Muthoot Finance had an 18-month period to change its legal structure in line with the RBI requirements, if an in-inprinciple approval is granted by the central bank for the banking foray.