Page 59 - Banking Finance June 2025
P. 59
RBI CIRCULAR
3. The Agreement under the LoC is effective from May Route are subject to the short-term investment limit
06, 2025. Under the LoC, the last date for disburse- and the concentration limit as prescribed in paragraphs
ment will be 48 months after scheduled completion 4.4(iii) and 4.4(v) of the Master Direction, respectively.
date of the contract. On a review, and with a view to providing greater ease
4. Shipments under the LoC shall be declared in Export of investment to FPIs, it has been decided to withdraw
Declaration Form/Shipping Bill as per instructions is- the requirement for investments by FPIs in corporate
sued by the Reserve Bank from time to time. debt securities to comply with the short-term invest-
ment limit and the concentration limit.
5. No agency commission is payable for export under the
above LoC. However, if required, the exporter may 3. The directions in this circular are issued with immedi-
use his own resources or utilize balances in his Ex- ate effect.
change Earners Foreign Currency Account for pay- 4. The updated Master Direction is enclosed herewith.
ment of commission in any foreign currency.
5. AD Category-I banks may bring the contents of these
Authorised Dealer (AD) Category-I banks may allow
directions to the notice of their constituents.
such remittance after realization of full eligible value
of export, subject to compliance with the extant in- 6. The directions contained in this circular have been is-
structions for payment of agency commission. sued under sections 10(4) and 11(1) of the Foreign Ex-
change Management Act, 1999 (42 of 1999) without
6. AD Category I banks may bring the contents of this
prejudice to permissions/approval, if any, required un-
circular to the notice of their exporter constituents
der any other law.
and advise them to obtain complete details of the LoC
from the Exim Banks office at Centre One, Floor 21,
World Trade Centre Complex, Cuffe Parade, Mumbai New Pension Rules: PSU Employees
400 005 or from their website www.eximbankindia.in.
Risk Losing Benefits if Dismissed for
7. The directions contained in this circular have been is-
sued under section 10(4) and 11(1) of the Foreign Ex- Misconduct
change Management Act (FEMA), 1999 (42 of 1999) In a significant regulatory update, the Central govern-
and are without prejudice to permissions/ approvals, ment has introduced new pension rules applicable to
employees of Public Sector Undertakings (PSUs), allow-
if any, required under any other law.
ing the forfeiture of retirement benefits if an employee
Investments by Foreign Portfolio Investors in is dismissed for misconduct. The changes, outlined un-
der the Central Civil Services (Pension) Rules, 2021,
Corporate Debt Securities through the General
empower disciplinary authorities to withhold or with-
Route Relaxations draw pension in cases of serious violations.
May 08, 2025 The revised rules specify that employees dismissed, re-
moved, or compulsorily retired due to proven charges
1. Attention of Authorised Dealer Category-I (AD Cat- of corruption, moral turpitude, or grave misconduct
egory-I) banks is invited to the Foreign Exchange Man- may lose part or all of their pension and gratuity en-
agement (Debt Instruments) Regulations, 2019 noti- titlements. Authorities must record clear reasons and
fied vide Notification No. FEMA. 396/2019-RB dated obtain approval from the President or the relevant
October 17, 2019, as amended from time to time; and competent authority before implementing such action.
the Master Direction - Reserve Bank of India (Non-resi- The move aims to enhance accountability, deter unethi-
dent Investment in Debt Instruments) Directions, cal behaviour, and align pension entitlements with ser-
2025 dated January 07, 2025 [hereinafter, Master vice conduct.
Direction]. This step underscores the governments focus on main-
2. At present, investments by Foreign Portfolio Investors taining integrity within public services while tightening
(FPIs) in corporate debt securities through the General disciplinary norms across central and PSU employees.
54 | 2025 | JUNE | BANKING FINANCE
