Page 54 - Banking Finance April 2019

RBI CIRCULAR

office or a project office or any other place of business 2. A copy of the salient features and operational guidelines
in India are to be forwarded to the Reserve Bank for for implementation of the captioned scheme, released
prior approval and be considered in consultation with by the Ministry of Micro, Small and Medium Enterprises
the Government of India. This has since been reviewed (MSME), Government of India, is enclosed. Small
and as notified through Notification No FEMA 22(R)(1), Industries Development Bank of India (SIDBI) is the
it is advised that if such an entity is engaged, partly or single national level nodal implementation agency for
wholly, in any of the activities covered under Foreign the scheme.
Contribution (Regulation) Act, 2010 (FCRA), it shall 3. You are therefore requested to take appropriate action
obtain a certificate of registration under the said Act as envisaged for RBI registered systemically important
and shall not seek permission under FEMA 22(R). non-banking financial companies and issue necessary
3. Accordingly, the Form FNC has also been suitably instructions to your branches /controlling offices for
modified and the following phrase added under the implementation of the scheme.
heading ‘Declaration’ in Part II clause (ii), at the end
of the existing sentence. Yours faithfully,
(Manoranjan Mishra)
“We will not undertake either partly or fully, any
activity that is covered under Foreign Contribution Chief General Manager
Regulation Act, 2010 (FCRA) and we understand that Banking Promotional Exam Sample Questions – Ans. 9
any misrepresentation made or false information
furnished by us in this behalf would render the approval 1. 1) The holder may convert a special crossing into a
granted under the Foreign Exchange Management general crossing or he may cancel a crossing
(Establishment in India of a branch office or liaison office altogether under his signature.
or a project office or any other place of business) 2. 1) Collecting Banker
Regulations, 2016, automatically as void ab initio and 3. 3) Should be paid to a banker only
such approval by the Reserve Bank shall stand 4. 3) Both of 1 &2
withdrawn without any further notice”.
5. 2) General Crossing
4. All other provisions of the LO/BO/PO policy shall 6. 4) Crossing has no meaning
remain unchanged. AD Category - I banks may bring
the contents of this circular to the notice of their 7. 2) 26 QAA
constituents and customers. 8. 2) All the partners should sign the revocation letter
9. 2) Make the payment only to Rajbahadur
5. The Master Direction No. 10 dated January 1, 2016 is
being updated simultaneously to reflect the changes. 10. 2) Goodwill will be given loan without the consent/
discharge by Tang
6. The directions contained in this circular have been
issued under Section 10(4) and 11(2) of the Foreign 11. 1) individual banks
Exchange Management Act, 1999 (42 of 1999) and are 12. 4) No act
without prejudice to permissions / approvals, if any, 13. 1) 1/10/2008
required under any other law. 14. 1) resident
15. 1) 500 & 70000
Yours faithfully
(R. K. Moolchandani) 16. 4) Return of paid cheque to account holder
17. 4) court appointed trustee
Chief General Manager
18. 3) only possible after adjustment of demand loan
Interest Subvention Scheme for MSMEs 19. 3) 9%
20. 4) any day in April
RBI/2018-19/129 21. 2] right of subrogation
February 22, 2019 22. 3] loss asset
23. 2] 9600/-
1. As you are aware, Government of India, on November
2, 2018, has announced ‘Interest Subvention Scheme 24. 4] bank can not allow loan against their own shares
for MSMEs 2018’. 25. 5) c & d

54 | 2019 | APRIL | BANKING FINANCE