Page 45 - Banking Finance MAY 2017

RBI CIRCULAR

various stakeholders including (SDLs) for the quarter April-June 2017 are proposed to be increased by Rs.
banks, non-bank entities, 110 billion and Rs. 60 billion respectively.
individuals and Government 3. The total increase in limits over the next quarter would, accordingly, be as
Departments / Ministries. The under:
feedback so received are being
examined for rationalisation. Till Rs. Billion
the issuance of final instructions on Central Government State
MDR for debit card transactions, securities Development
the extant instructions issued vide Loans
our circular dated December 16, For all FPIs- Additional Total For all FPIs Aggregate
2016 shall continue. General for Long (including Long
3. The directive is issued under Category Term FPIs Term FPIs)
Section 10(2) read with Section 18 Existing 1520 680 2200 210 2410
of Payment and Settlement Limits
Systems Act 2007 (Act 51 of 2007). Revised 1565 745 2310 270 2580
limits for
Yours faithfully quarter
(Nanda S Dave) April-June,
Chief General Manager-in-charge 2017

Investment by Foreign The revised limits will be effective from April 1, 2017.
Portfolio Investors in 4. The limits for the long term investors remaining unutilized at the end of
March 2017 will be released for investment under the general category in
Government Securities April 2017.

RBI/2016-17/265 5. All other existing conditions, including the security-wise limits, investment
A.P.(DIR Series) Circular No. 43 of coupons being permitted outside the limits and investments being
restricted to securities with a minimum residual maturity of three years,
1. Attention of Authorised Dealer will continue to apply.
Category-I (AD Category-I) banks is 6. The operational guidelines relating to allocation and monitoring of limits
invited to Schedule 5 to the will be issued by the Securities and Exchange Board of India (SEBI).
Foreign Exchange Management 7. AD Category - I banks may bring the contents of this circular to the notice
(Transfer or Issue of Security by a of their constituents and customers concerned.
Person Resident outside India) 8. The directions contained in this circular have been issued under sections
Regulations, 2000 notified vide
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
Notification No. FEMA.20/2000-RB and are without prejudice to permissions/approval, if any, required under
dated May 3, 2000, as amended any other law.
from time to time. The limits for
investment by foreign portfolio Yours faithfully
investors (FPIs) in Government (T. Rabi Sankar)
securities were last increased in
terms of Medium Term Chief General Manager
Framework (MTF) announced vide
A.P. (DIR Series) Circular No. 4 Interest rates for Small Savings Schemes
dated September 30, 2016. RBI/2016-17/267

2. The limits for investment by FPIs in DGBA.GAD.2618/15.02.005/2016-17
Central Government Securities
and State Development Loans 1. Please refer to our circular DGBA.GAD.2012/15.02.005/2016-17 dated

BANKING FINANCE | MAY | 2017 | 45

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