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RBI CORNER
RBI to issue Rs.5 Coin on RBI for account aggregator NBFC
50th year Anniversary The Reserve Bank of India (RBI) has decided to push the idea of a new kind of
non-banking financial company (NBFC), which would allow
06 Indo-Pak war account aggregation and be regulated as an account-
aggregator NBFC. “This will allow the common man to basi-
The Reserve cally see all his accounts across various insurance companies,
Bank of India pension funds, as well as banks, in a common format and plans
will shortly put are underway for that,” RBI Governor Raghuram Rajan said
into circulation
Rs.5 coins to in Chennai. Earlier, the government had proposed to set up a facility through
memorialize which every individual could see all his accounts across insurance companies,
golden jubilee of pension funds and others, he said.
Indo-Pak War 1965. The coins will
be legal tender as provided in The RBI unhappy about 100% FDI in banks
Coinage Act 2011. Existing coins in
this denomination will also continue The Reserve Bank of India (RBI) has a higher ceiling and investors are also
to be legal tender," RBI announced. turned down a proposal from the gov- hoping for a relaxation. In fact, HDFC
ernment to allow up to 100 per cent Bank (BSE -0.17 %) recently got per-
The new coin in the obverse will foreign direct investment (FDI) in mission for 74 per cent foreign invest-
bear Lion Capital of Ashoka Pillar in banks, a move that may come as a ment and was also found to be in
the centre with Satyamev Jayate damper for several private
inscribed below it, and on the re- sector lenders such as breach of the norms for a
verse it will bear image of 'Amar ICICI Bank(BSE 0.41 %) short period.
Jawan' monument. and HDFC Bank.
A few years ago, in the
Banks can recast crop RBI has not provided a draft norms for new
clear reason to turn down banks, the RBI had sug-
loans : RBI the proposal from the Department of gested limiting FDI to 49
Industrial Policy and Promotion (DIPP) per cent, against the 74 per cent cap.
The RBI has decided to allow State that deals with FDI policy. But in the The finance ministry, however, saw it
Level Bankers' Committees/District past the regulator has seen banking as as a retrograde step and got the regu-
Level Consultative Committee/banks a sensitive sector and opposed allow- lator to stick to the prescribed ceiling.
to take a view on rescheduling of ing significant shareholding by foreign In fact, a few years before that, dur-
loans if the crop loss is 33 per cent institutional investors, who are seen as ing UPAI's tenure, there had been a
or more. short-term investors and can enter or major battle between the finance min-
exit a stock for short durations, largely istry and the RBI on how the FDI norms
This move follows the government to book profits. should be applied, with North Block fi-
reducing the criteria for crop loss nally saying that setting the foreign in-
from 50 per cent to 33 per cent for Private banks are particularly keen on vestment rules was in its domain.
providing input subsidy (compensa-
tion) to the farmers. The RBI said RBI: National Pension Scheme as investment option for
banks may now permit a maximum
period of repayment of up to two NRIs
years (including the moratorium
period of one year) if the loss is be- India has allowed non-residents to invest in the National Pension Scheme to
tween 33 and 50 per cent. provide them an access to old-age income security. Reserve Bank of India al-
lowed NRIs to subscribe to the pension scheme, which is governed and admin-
If the crop loss is 50 per cent or istered by the Pension Fund Regulatory and Development Authority. RBI said
more, the period for repayment the decision has been taken in consultation with the government, which under
may be extended to a maximum of Prime Minister Narendra Modi is going all guns blazing to appease NRIs.
five years (including the moratorium
of one year). A lot of interest has been generated around the new scheme with the Union
Budget 2015 giving additional tax benefits for investments up to Rs 50,000.
However, there is no ceiling on the investment amount.
10 | 2015 | NOVEMBER | BANKING FINANCE
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