Page 60 - Banking Finance March 2025

RBI CIRCULAR

Trade Policy of the Government of India and whose Private Placement of Non-Convertible
purchase may be agreed to be financed by the Exim
Bank under this agreement. Debentures (NCDs) with maturity period
2. The Agreement under the LoC is effective from Janu- of more than one year by HFCs – Re-
ary 20, 2025. Under the LoC, the last date for dis- view of guidelines
bursement will be 60 months after scheduled comple-
tion date of the project. January 29, 2025
3. Shipments under the LoC shall be declared in Export
Declaration Form/Shipping Bill as per instructions is- 1. Please refer to Chapter XI of Master Direction – Non-
sued by the Reserve Bank from time to time. Banking Financial Company – Housing Finance Com-
pany (Reserve Bank) Directions, 2021 wherein guide-
4. No agency commission is payable for export under the
above LoC. However, if required, the exporter may lines on private placement of NCDs by HFCs have been
use his own resources or utilize balances in his Ex- prescribed.
change Earners’ Foreign Currency Account for pay- 2. On a review, it has been decided that the Guidelines
ment of commission in free foreign exchange. on Private Placement of NCDs (with maturity more
Authorised Dealer (AD) Category- I banks may allow
than one year) by NBFCs, as contained in para 58 of
such remittance after realization of full eligible value
the Master Direction – Reserve Bank of India (Non-
of export subject to compliance with the extant in-
structions for payment of agency commission. Banking Financial Company – Scale Based Regulation)
Directions, 2023 (as amended from time to time) shall
5. AD Category – I banks may bring the contents of this
be applicable, mutatis-mutandis, to HFCs. Accordingly,
circular to the notice of their exporter constituents
and advise them to obtain complete details of the LoC the existing guidelines under Chapter XI of Master Di-
rection – Non-Banking Financial Company – Housing
from the Exim Bank’s office at Centre One, Floor 21,
World Trade Centre Complex, Cuffe Parade, Mumbai Finance Company (Reserve Bank) Directions, 2021
400 005 or from their website www.eximbankindia.in. stand repealed. The revised guidelines shall be appli-
cable to all fresh private placements of NCDs (with
6. The directions contained in this circular have been is-
sued under section 10(4) and 11(1) of the Foreign Ex- maturity more than one year) by HFCs from the date
change Management Act (FEMA), 1999 (42 of 1999) of this circular.
and are without prejudice to permissions/ approvals, 3. The Master Direction – Non-Banking Financial Com-
if any, required under any other law.
pany – Housing Finance Company (Reserve Bank) Di-
rections, 2021 is being modified as detailed in Annex.
All Agency Banks to remain open for public on
March 31, 2025 (Monday) Change in Bank Rate
February 11, 2025
February 07, 2025
1. The Government of India has made a request to keep
all branches of the banks dealing with Government re- 1. Please refer to our circular DOR.RET.REC.101/
ceipts and payments open for transactions on March 12.01.001/2022-23 dated February 08, 2023 on the
31, 2025 (Monday-Public Holiday) so as to account for captioned subject.
all the Government transactions relating to receipts 2. As announced in the Monetary Policy Statement 2024-
and payments in the Financial Year 2024-25 itself. Ac- 25 dated February 07, 2025, the Bank Rate is revised
cordingly, Agency Banks are advised to keep all their
branches dealing with government business open on downwards by 25 basis points from 6.75 per cent to
March 31, 2025 (Monday). 6.50 per cent with immediate effect.
2. Banks shall give due publicity about the availability of 3. All penal interest rates on shortfall in reserve require-
above banking services on this day. ments, which are specifically linked to the Bank Rate,
also stand revised.

54 | 2025 | MARCH | BANKING FINANCE