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Powers to serious fraud investigation office to investigate frauds

2010-03-17T11:05:00.001+05:30

Powers to serious fraud investigation office to investigate frauds

The Government has said that the Serious Fraud Investigation Office (SFIO) forwards the complaints received in its office to the Ministry of Corporate Affairs for appropriate action. The Ministry, after examination and wherever required, after calling the reports from the concerned Registrar of Companies (ROC) under section 234 of the Companies Act, 1956, takes appropriate action and based on the report of the ROC, wherever the situation warrants, investigation orders are issued under section 235 of the Companies Act, 1956 for investigation by the SFIO. Giving this information in written reply to a question in Rajya Sabha, Shri Salman Khurshid, Minister for Corporate Affairs, said that the Government is not considering giving the SFIO the powers to trail money stashed abroad by corporates.

Central Excise Notification No 12/2010 (NT) dated 16th March, 2010 - Amends Notification No.24/2005-Central Excise (N.T.) dated 13th May, 2005

2010-03-17T10:51:00.001+05:30

Amends Notification No.24/2005-Central Excise (N.T.) dated 13th May, 2005

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF EXCISE AND CUSTOMS)

Notification No 12 /2010 Central Excise (N.T.)

New Delhi, the16 March, 2010.

G.S.R. (E) - In exercise of the powers conferred by sub-section (1B) of section 35B of the Central Excise Act, 1944 (1 of 1944), the Central Board of Excise and Customs hereby makes the following further amendment in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 24/2005-Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) ,vide, number G.S.R. 304(E), dated the 13th May, 2005, namely:-

In the said notification, in the Table, against serial number 14, in column (2), in item number (2) for the word “Cochin” , the word “Bangalore” shall be substituted ;.

[F.No.390/39/07-JC]

MOHAN LAL

Under Secretary(Judicial Cell)

Note:- The principal notification No.24/2005-Central Excise (N.T.) was published in the Gazette of India, Part II, Section 3(i),vide, number G.S.R.304(E), dated the 13th May,2005 and was subsequently amended by :-

(i) Notification No. 29/2005- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R.380(E), dated the 8th June, 2005.
(ii) Notification No. 35/2005- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R.661(E), dated the 14th November, 2005.
(iii) Notification No. 4/2007- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R.74(E), dated the 9th February, 2007.

(iv) Notification No. 9/2008- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R.101(E), dated the 21th February, 2008.

(v) Notification No. 3/2009- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 53(E), dated the 28th January, 2009

(vi) Notification No. 08/2009- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 270 (E), dated the 21^st April, 2009

(vii) Notification No. 11/2009- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R.341(E), dated the 19^th May 2009

(viii) Notification No. 1/2010- Central Excise (N.T.) published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 9(E), dated the 06 January2010

Custom Circular No 05/2010 dated 16th March, 2010 - Verification Mechanism and monitoring of export obligation under duty exemption / reward Schemes – reg

2010-03-17T10:47:00.001+05:30

Verification Mechanism and monitoring of export obligation under duty exemption / reward Schemes – reg.

Circular No. 5 /2010-Cus.

F.NO.605/16/2007-DBK (Pt.)

Government of India

Ministry of Finance

Department of Revenue

-----------

New Delhi, the 16^th March, 2010.

To,

All Chief Commissioners of Customs/Central Excise/Customs & Central Excise.

All Commissioners of Customs/Customs (P)/Customs &Central Excise/Central Excise.

All Director Generals of CBEC,

Chief Departmental Representative of Customs Excise & Service Tax Appellate Tribunal.

*****

Sir/Madam,

Sub: Verification Mechanism and monitoring of export obligation under duty exemption / reward Schemes – reg.

*******

I am directed to invite your attention to the above-mentioned subject and to say that, several references have been received, requesting the Board to put in place a verification mechanism in respect of the duty credit scrips issued under Chapter 3 schemes of the Foreign Trade Policy (FTP) and in respect of the Export Promotion Schemes viz. Advance Authorization / Duty Free Import Authorization (DFIA) / Export Promotion Captial Goods (EPCG) schemes.

2. The matter has been examined by the Board in the light of the conditions specified in the notifications regarding monitoring of export obligation in respect of Advance Authorization / DFIA / EPCG schemes. Board has also considered the reports received from the field formations, which indicated discrepancies found having revenue implications during the verification of the duty credit scrips, issued under Chapter 3 schemes of FTP. Accordingly, it has been decided to put in place the following procedures:-

a) In case of EPCG scheme, the Jurisdictional Customs Authorities at the Port of Import shall ensure that the installation certificates are submitted within 6 months of completion of imports as stipulated in the corresponding customs notifications. The correctness of the installation certificates, which are issued by the Chartered Engineers, shall be verified on a random basis through Central Excise divisions. Further, the EPCG notifications stipulate fulfilment of atleast 50% of export obligation within the first block. This shall be verified in detail. In case the same is found satisfactory, the Export Obligation Discharge Certificate issued by the Director General of Foreign Trade (DGFT) at the end of 2^nd block may be accepted without further verification unless there is a specific intelligence suggesting need for detailed verification.

b) In case of Advance Authorization scheme, the Export Obligation Discharge Certificate should normally be accepted unless there is an intelligence suggesting misuse.

c) The Jurisdictional Commissioner of Customs may cause random verification for some of the authorizations issued under EPCG / DFIA / Advance Authorization schemes registered at their port to check the correctness of the address shown on the Authorization. This is important, as the EPCG notification requires installation of the capital goods and the Advance Authorisation scheme (and DFIA scheme in some cases) contemplates actual usage of the imported goods. Such verification may be carried out during the validity of the Authorisation and preferably through the Central Excise divisions.

d) Action to safegaurd customs revenue should be initiated in case the authorization holder does not submit the Export Obligation Discharge Certificate within the time period stipulated in the relevant Customs notifications.

e) As regards the duty credit scrips issued under Chapter 3 of FTP, the verification of genuineness of scrips in terms of Para 3.11.3 of the HBP v.1 shall be done before allowing registration of such scrips. Further, the Commissioner may cause random verification of the shpping bills based on which the said duty credit scrip has been issued to ascertain the genuiness of such shipping bills. A quarterly report on the outcome of the said verification may be forwarded to the Board, which should include inter alia the details of the discrepancies noticed during the verification and the measures taken to redress such discrepancies. This procedure will be reviewed once online transmission of the duty credti scrips issued under Chapter 3 of FTP is operationalized.

f) Wherever the Export Obligation Discharge Certificates issued by DGFT bear the requirement that the Customs department should carry out verification, then such verification should be done. In all cases – EPCG, Advance Authorization, DFIA and Reward Schemes, the Department would retain the right to carry out a complete verification wherever there is specific intelligence available suggesting misuse.

3. The notifications issued under EPCG / Advance Authorization / DFIA schemes provide that the exporter should discharge the export obligation within the specified time period or within such extended period as may be permitted. Further, the notifications issued under EPCG scheme stipulates that in case of non-fulfillment of block-wise export obligation, the importer should pay the proportional duty of unfulfilled portion of export obligation along with specified interest from the date of clearance of the goods and such payment should be made within 3 months from the expiry of said block. Monitoring of export obligation is an integral part of verification mechanism. This would facilitate faster redemption of Bonds / Bank Guarantee executed under the above schemes. In view of above, the Jurisdictional Commissioners of Customs are directed to put suitable systems in place to initiate timely action in all cases of default.

4. The guidelines issued in the past on the subject shall be modified to the above extent.

5. These instructions may be brought to the notice of the trade / exporters by issuing suitable Trade / Public Notices. Suitable Standing orders/instructions may be issued for the guidance of the assessing officers. Difficulties faced, if any, in implementation of the Circular may please be brought to the notice of the Board at an early date.

Receipt of this Circular may kindly be acknowledged.

Yours faithfully,

Sd-

(P.V.K. Rajasekhar)

OSD (Drawback)

CustomNotification No 20/2010 dated 12th March, 2010 (NT) - Amends Notification No. 36/2001 – Customs (N.T.), dated, the 3rd August, 2001

2010-03-17T10:43:00.001+05:30

Amends Notification No. 36/2001 – Customs (N.T.), dated, the 3rd August, 2001

[TO BE PUBLISHED IN PART-II, SECTION-3, SUB-SECTION (ii) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

Government of India

Ministry of Finance

(Department of Revenue)

(Central Board of Excise and Customs)

Notification No. 20/2010 – Customs (N.T.)

New Delhi, 15th March, 2010

24 Phalguna, 1931 (SAKA)

S. O… (E) – In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N. T.), dated, the 3rd August 2001, namely: -

In the said notification, for the Table, the following Table shall be substituted namely:-

“T A B L E

S. No.	Chapter/ heading/ sub-heading/tariff item	Description of goods	Tariff value US $ (Per Metric Tonne)
(1)	(2)	(3)	(4)
1	1511 10 00	Crude Palm Oil	447 (i.e. no change)
2	1511 90 10	RBD Palm Oil	476 (i.e. no change)
3	1511 90 90	Others – Palm Oil	462 (i.e. no change)
4	1511 10 00	Crude Palmolein	481 (i.e. no change)
5	1511 90 20	RBD Palmolein	484 (i.e. no change)
6	1511 90 90	Others – Palmolein	483 (i.e. no change)
7	1507 10 00	Crude Soyabean Oil	580 (i.e. no change)
8	7404 00 22	Brass Scrap (all grades)	3801
9	1207 91 00	Poppy seeds	4256”

[F. No. 467/4/2010-Cus.V]

(M. Satish Kumar Reddy)

Director to the Government of India

Note: - The Principal notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 – Customs (N.T.), dated, the 3^rd August, 2001 (S. O. 748 (E), dated, the 3^rd August, 2001) and was last amended vide Notification No. 19/2010-Customs (N.T.), dated, the 27^th February, 2010 (S. O. 515 (E) dated 27^th February, 2010).

CustomNotification No 33/2010 dated 12th March, 2010 - Amends Notification 21/2002 - Customs, dated 1st March, 2002

2010-03-17T10:39:00.001+05:30

Amends Notification 21/2002 - Customs, dated 1st March, 2002

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

New Delhi, the 12^th March, 2010

Notification No. 33/2010-Customs

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1^st March, 2002 which was published in the Gazette of India, Extraordinary, vide number G.S.R.118 (E), dated the 1^st March, 2002, namely:-

In the said notification, in the Table,-

(i) for S. No 3 and the entries relating thereto, the following shall be substituted, namely:-

S. No.	Chapter or Heading No. or sub-heading No.	Description of goods	Standard rate	Additional duty rate	Condition No.
(1)	(2)	(3)	(4)	(5)	(6)
“3.	0402 10 or 0402 21 00	Goods upto an aggregate of thirty thousand metric tonnes of total imports of such goods in a financial year.	Nil	-	1”.

(ii) after S.No. 3AA and the entries relating thereto, the following S.No. and the entries shall be inserted, namely:-

S. No.	Chapter or Heading No. or sub-heading No.	Description of goods	Standard rate	Additional duty rate	Condition No.
(1)	(2)	(3)	(4)	(5)	(6)
“3AB.	0405	White Butter, Butter oil, Anhydrous Milk Fat upto an aggregate of fifteen thousand metric tonnes of total imports of such goods in a financial year.	Nil	-	1.”

[F.No.354/20/2010-TRU]

(Prashant Kumar)

Under Secretary to the Government of India

Note: The principal notification No.21/2002-Customs, dated the 1^st March, 2002 was published in the Gazette of India, Extraordinary, vide number G.S.R. 118(E), dated the 1^st March, 2002 and was last amended vide notification No. 21/2010-Customs, dated the 27^th February, 2010 published vide number G.S.R.134(E), dated the 27^th February, 2010.

CustomNotification No 32/2010 dated 11th March, 2010 - Amends Notification 36/96 - Customs, dated the 23rd July, 1996

2010-03-17T10:36:00.002+05:30

Amends Notification 36/96 - Customs, dated the 23rd July, 1996

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

New Delhi, the 11^th March, 2010

Notification No. 32/2010-Customs

G.S.R. 184(E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments, in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.39/96-Customs, dated the 23rd July, 1996, G.S.R. 291(E), dated the 23^rd July, 1996, namely:-

In the said notification, in the TABLE, against S.No.18, in column (3), -

i. for the words and letters “duly certified by the Senior Manager” the words and letters “duly certified by the Senior Manager or the Assistant Director” shall be substituted.

ii. in the Explanation, for the words, letters and figures, “the 28^th day of March 2010”, the words, letters and figures, “the 1^st day of January, 2019” shall be substituted.

[F. No. 354/76/2006-TRU]

(Prashant Kumar)

Under Secretary to the Government of India

Note:- The principal notification No.39/96-Customs dated the 23rd July, 1996 was published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) vide number G.S.R. 291 (E), dated the 23rd July,1996 and last amended vide notification No.54/2009-Customs dated the 22^nd May, 2009 , published vide number G.S.R. 355(E), dated the 22^nd May, 2009

RBI Circular dated March 15, 2010 - Additional Disclosures by banks in Notes to Accounts

2010-03-17T10:25:00.001+05:30

Additional Disclosures by banks in Notes to Accounts

RBI/2009-10/347
DBOD.BP.BC.No. 79 /21.04.018/2009-10

March 15, 2010

The Chairmen/Chief Executives of
All Commercial Banks
(excluding RRBs)

Dear Sir,

Additional Disclosures by banks in Notes to Accounts

The Reserve Bank has been taking several steps from time to time to enhance the transparency in the operations of banks by stipulating comprehensive disclosures in tune with the international best practices.

On a review of the existing disclosures, it has been decided to prescribe the following additional disclosures in the ‘Notes to Accounts’ in the banks’ balance sheets, from the year ending March 2010:

Concentration of Deposits, Advances, Exposures and NPAs
Sector-wise NPAs
Movement of NPAs
Overseas assets, NPAs and revenue
Off-balance sheet SPVs sponsored by banks

The prescribed formats are furnished in Annex.

Yours faithfully

(B.Mahapatra)
Chief General Manager

Annex

I. Concentration of Deposits, Advances, Exposures and NPAs

Concentration of Deposits

(Amount in Rupees Crores)

Total Deposits of twenty largest depositors
Percentage of Deposits of twenty largest depositors to Total Deposits of the bank

Concentration of Advances*

(Amount in Rupees Crores)

Total Advances to twenty largest borrowers
Percentage of Advances to twenty largest borrowers to Total Advances of the bank

*Advances should be computed as per definition of Credit Exposure including derivatives furnished in our Master Circular on Exposure Norms DBOD.No.Dir.BC.15/13.03.00/2009-10 dated July 1, 2009

Concentration of Exposures**

(Amount in Rupees Crores)

Total Exposure to twenty largest borrowers/customers
Percentage of Exposures to twenty largest borrowers/customers to Total Exposure of the bank on borrowers/customers

**Exposures should be computed based on credit and investment exposure as prescribed in our Master Circular on Exposure Norms DBOD.No.Dir.BC.15/13.03.00/2009-10 dated July 1, 2009

Concentration of NPAs

(Amount in Rupees Crores)

Total Exposure to top four NPA accounts

II: Sector-wise NPAs

Sl. No.	Sector	Percentage of NPAs to Total Advances in that sector
1	Agriculture & allied activities
2	Industry (Micro & small, Medium and Large)
3	Services
4	Personal Loans

III. Movement of NPAs

Particulars	Amount in Rs. Crores
Gross NPAs* as on 1st April of particular year (Opening Balance)
Additions (Fresh NPAs) during the year
Sub-total (A)
Less:-
(i) Upgradations
(ii) Recoveries (excluding recoveries made from upgraded accounts)
(iii) Write-offs
Sub-total (B)
Gross NPAs as on 31st March of following year (closing balance) (A-B)

*Gross NPAs as per item 2 of Annex to DBOD Circular DBOD.BP.BC.No. 46/21.04.048/2009-10 dated September 24, 2009

IV. Overseas Assets, NPAs and Revenue

Particulars	Amount ( in Rupees Crores)
Total Assets
Total NPAs
Total Revenue

V. Off-balance Sheet SPVs sponsored (which are required to be consolidated as per accounting norms)

Name of the SPV sponsored
Domestic	Overseas

RBI Circular dated March 09, 2010 - Grant of ‘Certificate of Registration’ - For commencing business of credit information – Experian Credit Information Company of India Private Ltd

2010-03-10T11:13:00.001+05:30

Grant of ‘Certificate of Registration’ - For commencing business of credit information – Experian Credit Information Company of India Private Ltd

RBI/2009-10/345
DBOD.No.DL.15214 /20.16.042/2009-10

March 09, 2010

Chairmen / Chief Executive Officers,
All Scheduled Commercial Banks (excluding Regional Rural Banks) &
All India Financial Institutions
Dear Sir,
Grant of ‘Certificate of Registration’ -
For commencing business of credit information –
Experian Credit Information Company of India Private Ltd
Please refer to our circular DBOD No.DL.11590/20.16.034/2007-08 dated February 27, 2008 advising banks/FIs in the context of Credit Information Companies (Regulation) Act, 2005 to urgently initiate steps to build up database and be in readiness for effective exchange of credit information without any loss of time as and when the Credit Information Companies become operational.
2. As you are aware, Credit Information Bureau of India Ltd.(CIBIL) has been functioning as a Credit Information Company (CIC) from January 2001 onwards and banks and Financial Institutions have been reporting data to CIBIL as per our letters DBOD No. DL.BC.111/20.16.001/2001-02 and DBOD No. DL.BC.29 /20.16.002/2002-03 dated June 04, 2002 and October 1, 2002 respectively in this regard.
3. We advise that on February 17, 2010, we have issued ‘Certificate of Registration’ to Experian Credit Information Company of India Private Ltd. to commence the business of credit information.
The address of the company is as follows:
The Director,
M/s Experian Credit Information Company of India Private Ltd
Platina, 9th Floor, C-59, G Block
Bandra Kurla Complex
Bandra East, Mumbai – 400 051
Telephone No.:022-39530851
Fax No.: 022-39530605
Please acknowledge receipt.

Yours faithfully,
(Vinay Baijal)
Chief General Manager

RBI Circular dated March 09, 2010 - RRBs - List of Terrorist Individuals/ Organisations - under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation

2010-03-10T11:02:00.001+05:30

RRBs - List of Terrorist Individuals/ Organisations - under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation

RBI/2009-10/344
RPCD.CO RRB.AML.No 9262/03.05.28(A)/2009-10

March 09, 2010

The Chairman
All Regional Rural Banks (RRBs)
Dear Sir,
List of Terrorist Individuals/ Organisations - under UNSCR 1267(1999) and
1822(2008) on Taliban/Al-Qaida Organisation
Please refer to our circular letter RPCD.CO.RRB.AMLNo. 8864/03.05.28(A)/2009-10 dated February 25,2010. We have since received from Government of India (Ministry of External Affairs) copy of note dated January 26, 2010 (copy enclosed) from the Chairman of UN Security Council's 1267 Committee regarding changes made in the Consolidated List of Individuals and entities linked to Al-Qaida and Taliban.
2. RRBs are required to update the consolidated list of individuals/entities as circulated by Reserve Bank and before opening any new account, it should be ensured that the name/s of the proposed customer does not appear in the list. Further, banks should scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list.
3. RRBs are advised to strictly follow the procedure laid down in the UAPA Order dated August 27, 2009 enclosed to our circular RPCD.CO.RRB.No.39/03.05.33(E)/2009-10 dated November 05, 2009 and ensure meticulous compliance to the Order issued by the Government.
4. As far as freezing of funds, financial assets or economic resources or related services held in the form of bank accounts of the designated individuals/entities are concerned, action should be taken as detailed in paragraph 6 of the circular dated November 05, 2009, mentioned above.
5. The complete details of the said consolidated list are available on the UN website:
http://www.un.org/sc/committees/1267/consolist.shtml
6. Compliance Officer/Principal Officer should acknowledge receipt of this circular letter to our Regional Office concerned.
Yours faithfully,
(C.K.Shah)
Deputy General Manager

Encl: as above

RBI Circular dated March 09, 2010 - Investment Portfolio of Primary Dealers – Extension of HTM Category for PDs

2010-03-10T10:59:00.001+05:30

Investment Portfolio of Primary Dealers – Extension of HTM Category for PDs

RBI/2009-10/343
IDMD.PDRD.No.3843/03.64.00/2009-10

March 9, 2010

All Standalone Primary Dealers
Dear Sir
Investment Portfolio of Primary Dealers – Extension of HTM Category for PDs
Please refer to the circular RBI/2009-10/136- IDMD.PDRD.No.1050/03.64.00/2009-10 dated August 31, 2009 allowing the standalone Primary Dealers (PDs) to categorize a portion of their Government securities portfolio in the Held to Maturity (HTM) category, subject to certain conditions, till March 31, 2010. The above guidelines have been reviewed and it has been decided to permit the PDs to continue holding of Government securities in HTM category until further advice. All other conditions specified in the circular referred to above will continue to apply.
2. Banks undertaking PD activities departmentally may continue to follow the extant guidelines applicable to banks in regard to the classification and valuation of the investment portfolio issued by our Department of Banking Operations and Development.
Yours faithfully
(K.V.Rajan)
Chief General Manager

Custom Notification No 19/2010 Custom (NT) dated 27th February, 2010 - CBEC amends Tariff value of Brass Scrap and Poppy seeds – Amendment in Notification No 36/2001 Cus (NT)

2010-03-03T11:43:00.001+05:30

CBEC amends Tariff value of Brass Scrap and Poppy seeds – Amendment in Notification No 36/2001 Cus (NT)

[TO BE PUBLISHED IN PART-II, SECTION-3, SUB-SECTION (ii) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

Government of India

Ministry of Finance

(Department of Revenue)

(Central Board of Excise and Customs)

Notification No. 19/2010 – Customs (N. T.)

New Delhi, 27th February, 2010

8 Phalguna, 1931 (SAKA)

S. O… (E) – In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Cus (N. T.), dated, the 3rd August 2001, namely: -

In the said notification, for the Table, the following Table shall be substituted namely:-

“T A B L E

S. No.	Chapter/ heading/ sub-heading/tariff item	Description of goods	Tariff value US $ (Per Metric Tonne)
(1)	(2)	(3)	(4)
1	1511 10 00	Crude Palm Oil	447 (i.e. no change)
2	1511 90 10	RBD Palm Oil	476 (i.e. no change)
3	1511 90 90	Others – Palm Oil	462 (i.e. no change)
4	1511 10 00	Crude Palmolein	481 (i.e. no change)
5	1511 90 20	RBD Palmolein	484 (i.e. no change)
6	1511 90 90	Others – Palmolein	483 (i.e. no change)
7	1507 10 00	Crude Soyabean Oil	580 (i.e. no change)
8	7404 00 22	Brass Scrap (all grades)	3732
9	1207 91 00	Poppy seeds	4640”

[F. No. 467/4/2010-Cus.V]

(M. Satish Kumar Reddy)

Director to the Government of India

Note: - The Principal notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 – Customs (N.T.), dated, the 3^rd August, 2001 (S. O. 748 (E), dated, the 3^rd August, 2001) and was last amended vide Notification No. 11/2010-Customs (N.T.), dated, the 15^th February, 2010 (S. O. 353 (E) dated 15^th February, 2010).

FEMA Circular 40/2010 dated March 02, 2010 - External Commercial Borrowings (ECB) Policy – Structured Obligations

2010-03-03T11:32:00.001+05:30

External Commercial Borrowings (ECB) Policy – Structured Obligations

RBI/2009-10/335
A.P. (DIR Series) Circular No. 40

March 02, 2010

All Category - I Authorised Dealer Banks

Madam / Sir,

External Commercial Borrowings (ECB) Policy –
Structured Obligations

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to Notification No.FEMA 29/2000-RB dated September 26, 2000 viz. Payment to person resident outside India on invocation of guarantee, A.P. (DIR Series) Circular No. 28 dated March 30, 2001 and A.P. (DIR Series) Circular No. 5 dated August 1, 2005 relating to External Commercial Borrowings (ECB).

2. Borrowing and lending of Indian Rupees between two persons resident in India does not attract the provisions of the Foreign Exchange Management Act, 1999. In case where a Rupee loan is granted against the guarantee provided by a person resident outside India, there is no transaction involving foreign exchange until the guarantee is invoked and the non-resident guarantor is required to meet the liability under the guarantee. The Reserve Bank vide Notification No. FEMA 29/2000-RB dated September 26, 2000 has granted general permission to a person resident in India, being a principal debtor, to make payment to a person resident outside India, who has met the liability under a guarantee.

3. As per the extant policy, domestic Rupee denominated structured obligations have been permitted to be credit enhanced by non-resident entities under the approval route. In view of the growing needs of funds in the infrastructure sector, the existing norms have been reviewed and it has been decided to put in place a comprehensive policy framework on credit enhancement to domestic debt as indicated below:

4. It has since been decided that the facility of credit enhancement by eligible non-resident entities may be extended to domestic debt raised through issue of capital market instruments, such as debentures and bonds, by Indian companies engaged exclusively in the development of infrastructure and by the Infrastructure Finance Companies (IFCs), which have been classified as such by the Reserve Bank in terms of the guidelines contained in the circular DNBS.PD. CC No. 168 / 03.02.089 / 2009-10 dated February 12, 2010, subject to the following conditions:

credit enhancement will be permitted to be provided by multilateral / regional financial institutions and Government owned development financial institutions;
the underlying debt instrument should have a minimum average maturity of seven years;
prepayment and call / put options would not be permissible for such capital market instruments up to an average maturity period of 7 years;
guarantee fee and other costs in connection with credit enhancement will be restricted to a maximum 2 per cent of the principal amount involved;
on invocation of the credit enhancement, if the guarantor meets the liability and if the same is permissible to be repaid in foreign currency to the eligible non-resident entity, the all-in-cost ceilings, as applicable to the relevant maturity period of the Trade Credit / ECBs, would apply to the novated loan. Presently, the all-in-cost ceilings, depending on the average maturity period, are applicable as follows:

Average maturity period of the loan on invocation	All-in-cost ceilings over 6 month Libor*
Up to 3 years	200 basis points
Three years and up to five years	300 basis points
More than five years	500 basis points
*for the respective currency of borrowing or applicable benchmark

In case of default and if the loan is serviced in Indian Rupees, the applicable rate of interest would be the coupon of the bonds or 250 bps over the prevailing secondary market yield of 5 years Government of India security, as on the date of novation, whichever is higher;
IFCs proposing to avail of the credit enhancement facility should comply with the eligibility criteria and prudential norms laid down in the circular DNBS.PD.CC No.168 / 03.02.089 / 2009-10 dated February 12, 2010 and in case the novated loan is designated in foreign currency, the IFC should hedge the entire foreign currency exposure; and
The reporting arrangements as applicable to the ECBs would be applicable to the novated loans.

5. Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 are being issued separately wherever necessary.

6. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

7. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge

FEMA Circular 39/2010 dated March 02, 2010 - External Commercial Borrowings (ECB) Policy

2010-03-03T11:30:00.001+05:30

External Commercial Borrowings (ECB) Policy

RBI/2009-10/334
A.P. (DIR Series) Circular No.39

March 02, 2010

To
All Category - I Authorised Dealer Banks
Madam / Sir,

External Commercial Borrowings (ECB) Policy

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to the A.P. (DIR Series) Circular No. 5 dated August 1, 2005, A.P. (DIR Series) Circular No. 46 dated January 2, 2009, A.P. (DIR Series) Circular No. 71 dated June 30, 2009 and para 2 (iv) of A.P. (DIR Series) Circular No. 19 dated December 9, 2009 relating to the External Commercial Borrowings (ECB).
2.       As per the extant ECB policy, Non-Banking Finance Companies (NBFCs), which are exclusively engaged in financing of infrastructure sector, are permitted to avail of ECB from the recognized lender category including international banks, under the approval route, for on- lending to the infrastructure sector, as defined in the extant ECB policy.
3.       In view of the thrust given to the development of the infrastructure sector, a separate category of NBFCs viz. Infrastructure Finance Companies (IFCs) has been introduced in terms of the guidelines contained in circular DNBS.PD.CC No. 168/03.02.089/2009-10 dated February 12, 2010. In view of the new category of NBFCs being in place, the dispensation provided in para 2 above is not considered necessary. Accordingly, proposals for ECBs by the IFCs, which have been classified as such by the Reserve Bank, for on-lending to the infrastructure sector, as defined in the extant ECB policy may be considered under the approval route, subject to their complying with the following conditions:
i) compliance with the norms prescribed in the aforesaid DNBS Circular dated February 12, 2010;
ii) hedging of the currency risk in full; and
iii) the total outstanding ECBs including the proposed ECB not exceeding 50 per cent of the Owned Funds.
The AD Category-I bank should certify the compliance with the above conditions by the IFCs.
4.       All other aspects of ECB policy such as USD 500 million limit per company per financial year under the automatic route, eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of existing ECB, reporting arrangements and terms and conditions stipulated in the A.P. (DIR Series) Circulars shall remain unchanged.
5.       AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6.       The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge

FEMA Circular 38/2010 dated March 02, 2010 - External Commercial Borrowings (ECB) Policy – Infrastructure

2010-03-03T11:26:00.001+05:30

External Commercial Borrowings (ECB) Policy – Infrastructure

RBI/2009-10/333
A.P. (DIR Series) Circular No.38

March 02, 2010

To
All Category - I Authorised Dealer Banks
Madam / Sir,

External Commercial Borrowings (ECB) Policy

Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to the A.P. (DIR Series) Circular No. 5 dated August 1, 2005 and A.P. (DIR Series) Circular No. 20 dated October 8, 2008 relating to External Commercial Borrowings (ECB).
2. As per the extant ECB policy, infrastructure sector is defined as (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) sea port and airport, (vi) industrial parks, (vii) urban infrastructure (water supply, sanitation and sewage projects) and (viii) mining, exploration and refining.
3. As announced in para 54 of the Union Budget for the Year 2010-11, it has been decided to expand the definition of infrastructure sector, for the purpose of availing of ECB, to include “cold storage or cold room facility, including for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat”. Accordingly, the infrastructure sector would henceforth be defined to include (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) sea port and airport, (vi) industrial parks, (vii) urban infrastructure (water supply, sanitation and sewage projects), (viii) mining, exploration and refining and (ix) cold storage or cold room facility, including for farm level pre-cooling, for preservation or storage of agricultural and allied produce, marine products and meat.
4. All other aspects of the ECB policy, such as, USD 500 million limit per company per financial year under the automatic route, eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of existing ECB, reporting arrangements and terms and conditions stipulated in the A.P. (DIR Series) Circulars shall remain unchanged.
5. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge

RBI Circular dated March 02, 2010 - Review of bilateral clearing arrangements between banks – Regional Rural Banks

2010-03-03T11:18:00.001+05:30

Review of bilateral clearing arrangements between banks – Regional Rural Banks

RBI/2009-10/332
RPCD.CO RRB.BC.No.58/03.05.33/2009-10

March 2, 2010

The Chairman
All Regional Rural Banks (RRBs)
Dear Sir,
Review of bilateral clearing arrangements between banks – Regional Rural Banks
As you are aware, for convenient, cost-effective and quick processing and settlement of clearing instruments arising out of normal business activities of banks, an elaborate Clearing House infrastructure is in place in the country. Currently operational at most locations across the length and breadth of the country, Clearing Houses facilitate multilateral net clearing and settlement of over four million cheques everyday on a T + 1 basis. In fact, the processing cycle in India for local cheques encompasses both the presentation and return clearing legs, and compares favourably with similar systems around the world.
2. During the recent annual financial inspection of a bank, our Department of Banking Supervision had observed that the bank had entered into bilateral agreements with other banks for processing and clearing of post dated cheques (PDCs) deposited with it and payable by the other banks. Under the agreement, the bank was sending such PDCs directly to the other bank for realisation and receiving proceeds thereof by credit to its current account opened with the other bank. Similar facility was extended to the other bank for clearing PDCs drawn on this bank as well. On our enquiring with a few other banks, it is ascertained that a number of similar bilateral agreements exist between / among banks and in the process, significant volume of instruments was getting exchanged and cleared outside the Clearing House infrastructure.
3. After a detailed review we have concluded that such agreements (also styled as corresponding banking arrangements by some banks) undermine the existence and need of Clearing Houses and do not in any way contribute to the efficiency of the clearing system. In fact, the banks incur higher costs and take longer time to clear the cheques bilaterally. The parallel clearing arrangements vitiate the Clearing House rules, standard, minimum benchmarks and uniform practices. Malpractices and disputes between banks can exacerbate into systemic concerns.
4. Further, bilateral clearing arrangements attract provisions of the Payment and Settlement Systems Act, 2007 (Act) and the regulations framed thereunder. Section 2(i) of the Act defines a payment system as a 'system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchange'. Section 4(1) of the Act stipulates that 'no person other than the Reserve Bank shall commence or operate a payment system except under and in accordance with an authorization issued by the Reserve Bank under provisions of the Act'. Operators of such payment systems are required to seek authorization under the Act, within six months of the commencement of the Act i.e. by February 12, 2009. The bilateral arrangements between banks being inter-bank in nature fall within the ambit of payment systems and require authorization from the Reserve Bank.
5. Bilateral agreements include correspondent banking arrangements, arrangements under cash management services, or any arrangement that envisages routine clearing of cheques drawn on either or both banks without routing them through the Clearing House infrastructure as also agreements for sharing of ATMs, use of electronic clearing products like ECS or any such payment system products. Continuation or commencement of bilateral clearing arrangements without authorization is violative of the provisions of the Act and would invite strict penal action as provided under the Act. Keeping in view the various risks involved, RRBs are advised to immediately discontinue all bilateral clearing arrangements arising out of normal banking transactions.
6. Please acknowledge receipt of the circular to our Regional Office concerned for compliance.
Yours faithfully,
(R.C.Sarangi)
Chief General Manager

RBI Circular dated March 02, 2010 - Report of the High Level Committee to Review Lead Bank Scheme - Implementation of the recommendations

2010-03-03T11:14:00.001+05:30

Report of the High Level Committee to Review Lead Bank Scheme - Implementation of the recommendations

RBI/2009-10/331
RPCD.CO.LBS.HLC.BC.No. 57 /02.19.10/2009-10

March 02, 2010

The Chairmen/ CMDs
All Lead Banks/All Scheduled Commercial Banks

Dear Sir,

Report of the High Level Committee to Review Lead Bank Scheme -
Implementation of the recommendations

Over a period of four decades, since the inception of the Lead Bank Scheme (LBS), several changes have taken place necessitating a relook at the scheme to make it more effective in the changed economic scenario with sharper focus on financial inclusion and recent developments in the banking sector. A High level Committee to review the Lead Bank Scheme was, therefore, constituted by Reserve Bank of India.

2. The Committee recommended that the Lead Bank Scheme is useful and needs to continue. The overarching objective of the Scheme is to enable banks and State Governments to work together for inclusive growth.

3. All the action points emanating from the recommendations of the Committee requiring action to be taken by the Lead Banks/commercial banks are appended at Annex. You are advised to initiate actions for speedy implementation of the recommendations and also closely monitor the progress made by commercial banks in this regard.

4. With a view to improving the efficacy of the LBS, we advise that the various fora under the LBS need to be strengthened. More time of the SLBC/DCC machinery may be utilized to discuss specific issues inhibiting and enabling financial inclusion. At the District Consultative Committee (DCC) level, sub committees as appropriate may be set up to work intensively on specific issues and submit reports to the DCC for its consideration. Illustrative guidelines on the conduct of District Consultative Committee (DCC) meetings are detailed below:

I. Conduct of DCC Meetings

i) District Consultative Committee (DCC) meeting may be convened by the Lead Banks at quarterly intervals as per the extant instructions.

ii) At the District Consultative Committee (DCC) level, sub-committees as appropriate may be set up to work intensively on specific issues and submit reports to the DCC for its consideration.

iii) DCC should give adequate feedback to the SLBC on various issues that needs to be discussed on a wider platform, so that, these receive adequate attention at the State Level.

II. Agenda items

While all Lead Banks are expected to address the problems particular to the concerned districts, some of the important areas which are common to all the districts on which the Lead Banks should invariably discuss in the fora are as under:

monitoring mechanism to periodically assess and evaluate the progress made in achieving the road map to provide banking services within the time frame prescribed.
identification of unbanked/under banked areas for providing banking services in a time bound manner with a view to achieve 100% financial inclusion
the specific issues inhibiting and enabling IT enabled financial inclusion
issues to facilitate 'enablers' and remove/minimise 'impeders' for banking development for inclusive growth
monitoring initiatives for providing 'Credit Plus' activities by banks and State Governments such as setting up of Credit Counselling Centres and RSETI type Training Institutes for providing skills and capacity building to manage businesses.
review of performance of banks under Annual Credit Plan (ACP)
flow of credit to priority sector and weaker sections of the society
assistance under Government sponsored schemes
grant of educational loans
progress under SHG - bank linkage
SME financing & bottlenecks thereof, if any
timely submission of data by banks
review of relief measures (in case of natural calamities wherever applicable)

The above list is illustrative and not exhaustive. The Lead Banks may include any other agenda item considered necessary.

III. Role of LDMs

As the effectiveness of the Lead Bank Scheme depends on the dynamism of the District Collector and the LDM, with supportive role of the Regional/Zonal Office, the office of Lead District Managers (LDMs) should be sufficiently strengthened with appropriate infrastructural support being the focal point for successful implementation of the Lead Bank Scheme. Officers of appropriate level and attitude should be posted as LDMs. Apart from the usual role of LDMs like convening meetings of the DCC and DLRC, periodical meetings of DDM/LDO/ Government officials for resolving outstanding issues etc., the new functions envisaged for LDMs include the following:

drawing up the road map for banking penetration
monitoring implementation of annual credit plan
associate with the setting up of Financial Literacy and Credit Counselling Centres (FLCCs), RSETIs by banks
holding annual sensitisation workshops for banks and government officials with participation by NGOs/Public Relation Institutions (PRIs)
arranging for quarterly awareness and feedback public meetings, grievance redressal etc.

5. Further, we draw your attention the following major recommendations:

I. BANKING PENETRATION

Lead Banks are advised to focus attention on the urgent need for achieving 100% financial inclusion through penetration of banking services in the rural areas. Such banking services may not necessarily be extended through a brick and mortar branch but can be provided through any of the various forms of ICT- based models, including through BCs. However, ICT connectivity should not be an issue of consideration for not pursuing financial inclusion by commercial banks/RRBs. In this connection you may be guided by our Circular RPCD.CO.LBS.HLC.BC.No.43/ 02.19.10/2009-10 dated November 27, 2009.

II. GREATER ROLE FOR PRIVATE SECTOR BANKS

The private sector banks should involve themselves more actively by bringing in their expertise in strategic planning and leveraging on Information Technology. The Lead Banks, on their part, should also ensure that private sector banks are more closely involved in the LBS, both while drawing up and in implementing the ACP.

III. PREPARATION OF DISTRICT CREDIT PLAN/ANNUAL CREDIT PLAN

i) Preparation of Potential Linked Plan (PLP) by NABARD may be advanced to be completed by August every year so that the State Governments may factor in the projection made by the PLP in the state/district plan. While preparing the PLP, the District Development Managers (DDMs) of NABARD along with the Lead District Managers (LDMs) of the Lead Banks may discuss with the concerned development departments of the State Governments and the banks having significant presence in the districts. The District Credit Plan/Annual Credit Plan may be prepared by the LDMs taking into account the PLP for agriculture and allied activities. For other sectors (i.e. other than agriculture and allied activities), the LDM should work out a similar action plan based on the commitments made by the State Government, other stakeholders and banks.

ii) The Zonal/controlling offices of banks, while finalizing their business plans for the year, should take into account the commitments made in the ACP which should be ready well in time before the performance budgets are finalized. It may be ensured that there is little or no divergence between the PLP and the DCP/ACP.

IV. QUARTERLY PUBLIC MEETING AND GRIEVANCE REDRESSAL

The Lead District Manager may convene a quarterly public meeting at various locations in the district, in coordination with the Reserve Bank, banks having presence in the area and other stakeholders to generate awareness of the various banking policies and regulations relating to the common person, obtain feedback from the public and provide grievance redressal to the extent possible at such meetings or facilitate approaching the appropriate machinery for such redressal.

V. FINANCIAL LITERACY & CREDIT COUNSELLING

i) Each Lead Bank is expected to open a Financial Literacy and Credit Counselling Centre (FLCC) in every district where it has lead responsibility by following the recent guidelines issued by RBI in this regard. Suitable grant may be considered out of the Financial Inclusion Fund (FIF) to set up such centres in districts identified as being financially excluded by the Committee on Financial Inclusion.

ii) The State Government machinery may support the efforts made by banks for financial literacy. Towards this, State Governments may proactively provide assistance of the government machinery, especially at the grass root level such as schools, panchayats, etc., for this purpose.

6. All other instructions issued prior to this circular will continue to remain operative /effective.

7. We shall be glad if you will please keep our respective Regional Offices informed of the action taken by you on the various recommendations at quarterly intervals.

8. Please acknowledge receipt.

Yours faithfully

(Deepali Pant Joshi)
Chief General Manager

Encl: As above

Annex

High Level Committee to review Lead Bank Scheme - Action Points for Lead Banks/Commercial Banks

Sr. No.	Reco. No.	Recommendations
1.	1	The Lead Bank Scheme (LBS) is useful and needs to continue. The State Level Bankers Committee (SLBC) and various fora under LBS should focus on addressing the ‘enablers’ and ‘impeders’ in advancing greater financial inclusion and flow of credit to priority sectors, while monitoring Govt. Sponsored Schemes. (Para 3.1, 3.8)
2.	2	Penetration of banking in several parts of the country is still limited. Hence, it is critical that banking services are seen as a public good and are also made accessible to all sections of population and regions of the country at affordable cost. The State development machinery has to ensure the availability of backward and forward linkages to ensure that credit is gainfully deployed and income levels enhanced. (Para 3.3)
3	3	The overarching objective of LBS shall be to enable banks and State Governments to work together for inclusive growth. (Para 3.4)
4	4	It is necessary to broad base the scope of the scheme to cover initiatives for financial inclusion, role of State Governments, financial literacy and credit counselling as also 'credit plus' activities, formulate action plans to facilitate 'enablers' and remove /minimise 'impeders' for banking development for inclusive growth, develop grievance redressal mechanism, etc.(Para 3.7)
5	7	Banks need to take the maximum advantage of available IT solutions. The funding arrangements available under Financial Inclusion Technology Fund (with NABARD) or other options such as the support offered for distribution of Government payments by RBI may be explored for the purpose. However, connectivity should not be an issue of consideration for not pursuing Financial Inclusion by commercial banks/RRBs (Para 3.13)
6	9	Although permitted, Primary Agricultural Credit Societies (PACS) are not being used as BCs. Concerted efforts may be made for using PACS as BCs where such PACS are running well. (Para 3.16).
7	11	State Governments to ensure road/ digital connectivity to all centres where penetration by the formal banking system is required. The achievement of such connectivity may be monitored by a sub-committee of the DCC. Advantage may be taken of the special scheme offered by RBI of satellite connectivity through small V-SATs in remote areas. (Para 3.19)
8	17	Lead banks to open a Financial Literacy and Credit Counselling Centre (FLCC) in every district where they have lead responsibility. (Para 3.25)
9	18	The DLCCs/SLBCs may monitor initiatives for providing 'credit plus' services by banks and State Government. The lead banks would need to take expeditious steps to set up RSETIs as per the plan projections. As recommended by the Working Group on Rehabilitation of Sick SMEs (Chairman: Dr. K.C. Chakrabarty, April 2008), a scheme for utilising specified NGOs for providing training and other services to tiny micro enterprises may be considered by the SLBC convenor banks in consultation with State Governments as per the guidelines contained in RBI circular RPCD.SME&NFS.BC.No. 102/06.04.01/2008-09 dated May 04, 2009. (Para 3.26)
10	23	The present planning process envisages preparation of PLPs by NABARD for all the districts of the country. These plans are to be prepared by October-November every year and provide inputs both to the district planning authorities for preparing their budgetary plans and to the lead banks for preparing the District Credit Plans (DCP), respectively. Preparation of PLP may be advanced to be completed by August every year to enable the State Governments factor in the PLP projections. (Para 3.31)
11	24	While preparing the PLP, NABARD should factor in the suggestions made in the Development plan. NABARD would prepare the PLP for the districts taking into account the firm commitments given by the State Government/ banks/other stakeholders for the year. (Para3.32)
12	25	The Zonal / Controlling offices of banks, while finalising their business plans for the year, should take into account the PLPs prepared by NABARD and plans prepared by the LDMs for sectors other than agriculture and allied activities which should be ready well before the performance budgets are finalised. (Para3.33)
13	26	The Annual Credit Plan would be prepared by the Lead District Manager of the Lead banks concerned taking into account the PLPs. The Annual Credit Plans, among others, should clearly indicate the proposed coverage for SCs/STs, minorities and promotion of SHGs in the district. (Para 3.34)
14	30	Banks should involve themselves actively in the selection of beneficiaries and focus on the bankability and viability of the scheme in the overall interest of ensuring better recovery and ensuring that the subsidy is effectively used for the intended purpose. Governments should evaluate outcomes rather than whether the amounts allocated are fully spent. (Para 3.43)
15	32	The activities of NGOs in facilitating and channelling credit to the low income households are expected to increase in the coming years. Bank's linkage with such NGOs/Corporate houses operating in the area to ensure that the NGOs/Corporates provide the necessary 'credit plus' services can help leverage bank credit for inclusive growth. Success stories could be presented in DCC/SLBC meetings to serve as models that could be replicated.(Para 3.45)
16	33	SLBC/DCC to identify academicians and researchers engaged in research and development studies to be invited occasionally to the meetings of these bodies. (Para 3.46)
17	34	Private sector banks to involve themselves more actively in LBS by bringing in their expertise in strategic planning and leveraging on Information Technology. The Lead banks may involve private sector banks more closely in the LBS while drawing up and implementing the ACP. (Para 3.47)
18	35	State Governments should be able to leverage on the benefits of undertaking government business by banks to incentivize in Government sponsored schemes. Private sector banks may actively involve with the DCC and Action Plans where they have a presence and extend their services through permitted channels in underbanked and unbanked area. (Para 3.49)
19	41	The various fora at lower levels should give adequate feedback to the SLBC on issues needed to be discussed on a wider platform. Important issues/ decisions of the BLBC, DCC and DLRC should be placed before the next meeting of the SLBC, so that these receive adequate attention at the State Level. (Para 4.6)
20	49	A Sub-Committee of DCC may be formed to work intensively on specific issues. There could be different sub-committees to deal with role of SHGs/MFIs, IT based financial inclusion, MSE sector, etc.(Para 4.14)
21	50	The role of LDM should cover convening meetings of the DCC and DLRC, periodical meetings of DDM/LDO/Government officials for resolving outstanding issues, facilitating setting up of Financial Literacy and Credit Counselling Centres (FLCCs), RSETIs by banks, holding annual sensitisation workshops for banks and government officials with participation by NGOs/PRIs, grievance redressal, credit planning at the district level through preparation of one time comprehensive development plan for the district and annual District Credit Plan, and Monitoring implementation of the annual credit plan. (Para 4.15)
22	51	LDM’s office being the focal point for successful implementation of the Lead Bank Scheme, due care should be taken in selecting the incumbent and the posting should be made a coveted one. (Para 4.16(i))
23	53	There is a need for putting in place a mechanism to facilitate greater co-ordination between LDM, LDO and DDM outside the scheduled DCC/DLRC meetings, on an ongoing basis, which will, inter alia, also help in redressal of grievances of the users of banking services. LDMs should be sufficiently empowered and delegated with powers to discharge their responsibilities.RDs/CGMs to review adequacy of support available. (Para 4.16(iv)(v)(vi))
24	54	As soon as Reserve Bank, Government of India, NABARD and IBA’s instructions are placed on their websites, banks may communicate the same to their branches electronically so that the relative instructions come into operation immediately. (Para 5.2)
25	56	Bank officials posted as Lead District Managers may be given two to three weeks attachment at Zilla Parishad/Collectorate for familiarization with government’s role and functioning with regard to the developmental programmes. (Para 5.4)
26	57	Exposure visits may be arranged by the Lead Bank for District Collectors, Block Development Officers, bank officials, SHGs at various levels to leverage upon success stories. (Para 5.5)
27	58	Bank Managers should also visit the SHG meeting places to help understand SHGs better. (Para 5.6)
28	59	Functionaries of PRIs, especially gram panchayats should be familiarized with preparation of bankable schemes, so that budgetary funds for livelihood promotion can be leveraged for promoting financial inclusion and increasing credit absorption capacity. The LDM/ DDM could take initiatives in this regard. (Para 5.7)
29	64	Every quarter, the lead bank may organize an awareness and feedback public meeting in its district. (Para 5.14)
30	65	The LDM may invite the Banking Ombudsman (BO) for such meetings who may attend the same at his/her convenience. (Para 5.15 & 5.16)
31	66	Each lead bank is expected to open a Financial Literacy and Credit Counselling Centre (FLCC) in every district where it has lead responsibility by following the recent guidelines issued by RBI in this regard. The State Government machinery may support the efforts made by banks for financial literacy. Towards this, State Government may proactively provide assistance of the government machinery, especially at the grass root level such as schools, panchayats, etc., for this purpose. (Para 5.18)

RBI Circular dated March 02, 2010 - StCBS/DCCBs - List of Terrorist Individuals/Organisations - under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation

2010-03-03T11:10:00.001+05:30

StCBS/DCCBs - List of Terrorist Individuals/Organisations - under UNSCR 1267(1999) and 1822(2008) on Taliban/Al-Qaida Organisation

RBI/2009-10/330
RPCD.CO.RF.AML.No.8956 /07.02.12/2009-10

March 2, 2010

The Chairmen / CEOs of all State and Central Co-operative Banks

Dear Sir,

List of Terrorist Individuals/Organisations - under UNSCR 1267(1999)
and 1822(2008) on Taliban/Al-Qaida Organisation
Please refer to our circular letter RPCD.CO.RF.AML.No.7031/07.02.12/2009-10 dated December 29, 2009. We have since received from Government of India (Ministry of External Affairs) copy of note dated November 17, 2009 from the Chairman of UN Security Council's 1267 Committee regarding changes made in the Consolidated List of Individuals and entities linked to Al-Qaida and Taliban (copy enclosed).
2. Banks are required to update the consolidated list of individuals/entities as circulated by Reserve Bank and before opening any new account, it should be ensured that the name/s of the proposed customer does not appear in the list. Further, banks should scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list.
3. Banks are advised to strictly follow the procedure laid down in the UAPA Order dated August 27, 2009 enclosed to our circular RPCD.CO.RF.AML.BC. No. 34/07.40.00/ 2009-10 dated October 29, 2009 and ensure meticulous compliance to the Order issued by the Government.
4. As far as freezing of funds, financial assets or economic resources or related services held in the form of bank accounts of the designated individuals/entities are concerned, action should be taken as detailed in paragraph 6 of the circular dated October 29, 2009, mentioned above.

5. The complete details of the said consolidated list are available on the UN website:
http://www.un.org/sc/committees/1267/consolist.shtml
6. Compliance Officer/Principal Officer should acknowledge receipt of this circular letter to our concerned Regional Office.
Yours faithfully,
(S.S.Sahota)
Deputy General Manager
Encl: As above

RBI Circular dated February 26, 2010 - Report of the High Level Committee to Review Lead Bank Scheme - Implementation of the recommendations

2010-02-27T11:41:00.001+05:30

Report of the High Level Committee to Review Lead Bank Scheme - Implementation of the recommendations

RBI/2009-10/329
RPCD.CO.LBS.HLC.BC.No.56 /02.19.10/2009-10

February 26, 2010

CMDs of all SLBC Convenor Banks

Dear Sir,

Report of the High Level Committee to Review Lead Bank Scheme -
Implementation of the recommendations

Over a period of four decades, since the inception of the Lead Bank Scheme (LBS), several changes have taken place necessitating a relook at the scheme to make it more effective in the changed economic scenario with sharper focus on financial inclusion and recent developments in the banking sector. A High Level Committee to review Lead Bank Scheme was, therefore, constituted by Reserve Bank of India.

2. The Committee recommended that the LBS is useful and needs to continue. The overarching objective of the Scheme is to enable banks and State Governments to work together for inclusive growth.

3. All the action points emanating from the recommendations of the Committee requiring action to be taken by the SLBC convenor banks at the state level and lead banks/commercial banks at the district level are appended at Annex I & II respectively. You are advised to initiate actions for speedy implementation of the recommendations and also closely monitor the progress made by the lead banks / commercial banks in this regard.

4. The SLBC plays a very important role in development at state level, There is, therefore, a need for streamlining and strengthening of the same. With a view to improving the efficacy of the Lead Bank Scheme, we advise that the various fora under the Lead Bank Scheme need to be strengthened. We draw your attention specifically to the recommendations of the Committee relating to strengthening of implementation of the Lead Bank Scheme at state and district level. Illustrative guidelines on the conduct of State Level Bankers Committee (SLBC) meetings are detailed below:

I. Conduct of SLBC Meetings

i) The SLBC meetings may be held regularly at quarterly intervals and they should be chaired by the Chairman & Managing Director (CMD) of the convenor bank. Additionally, the SLBC meetings may be co-chaired by Additional Chief Secretary or Development Commissioner of the State concerned.

ii) In view of the large membership of the SLBC, it would be desirable for the SLBC to constitute Sub-Committees for specific tasks. The sub committees may examine the specific issues in-depth and devise solutions/recommendations for consideration of the SLBC. The composition of the sub-committee and subjects/ specific issues impeding/enabling financial inclusion to be deliberated upon, may vary from State to State depending on the specific problems/issues faced by the States.

iii) The secretariat/offices of SLBC should be sufficiently strengthened to enable the SLBC convenor bank to effectively discharge its functions. Each SLBC may have its own website. In each State, a full day sensitisation workshop may be convened by the SLBC convenor bank in April/May every year.

iv) The various fora at lower levels may give adequate feedback to the SLBC on issues that need to be discussed on a wider platform.

v) Several institutions and academicians are engaged in research and studies etc. that have implications for sustainable development in agriculture and MSME sector. Engaging with such research institutions and academicians would be useful in bringing in new ideas for furthering the objectives of the Lead Bank Scheme. The SLBC/DCC may, therefore, identify such academicians and researchers and invite them as 'special invitees' to attend SLBC/DCC meetings occasionally both for adding value to the discussion and also associate them with studies for product formulation appropriate to the State/District. Other 'special invitees' may be invited to attend SLBC meetings depending on the agenda items/issues to be discussed in the meetings.

vi) The activities of NGOs in facilitating and channeling credit to the low income households are expected to increase in the coming years. Several Corporate houses are also engaged in Corporate Social Responsibility activities for sustainable development. Bank's linkage with such NGOs/Corporate houses operating in the area to ensure that the NGOs/Corporates provide the necessary 'credit plus' services can help leverage bank credit for inclusive growth. Success stories could be presented in SLBC/DCC meetings to serve as models that could be replicated.

Agenda Items

While all SLBCs/Lead Banks are expected to address the problems particular to the concerned states, some of the important areas which are common to all States on which the SLBCs/Lead Banks should invariably discuss in the fora are as under:

monitoring mechanism to periodically assess and evaluate the progress made in achieving the road map to provide banking services within the time frame prescribed
identification of unbanked/under banked areas for providing banking services in a time bound manner with a view to achieve 100% financial inclusion
the specific issues inhibiting and enabling IT enabled financial inclusion
issues to facilitate 'enablers' and remove/minimise 'impeders' for banking development for inclusive growth
monitoring initiatives for providing 'Credit Plus' activities by banks and State Governments such as setting up of Credit Counselling Centres and RSETI type Training Institutes for providing skills and capacity building to manage businesses
review of performance of banks under Annual Credit Plan (ACP)
regional imbalances in deployment of credit to various sectors of the economy
Credit - Deposit Ratio of the State
flow of credit to priority sector and weaker sections of the society
assistance under Government sponsored schemes
grant of educational loans
progress under SHG - bank linkage
SME financing & bottlenecks thereof, if any
steps taken for improving land record and recovery mechanism
timely submission of data by banks
review of relief measures (in case of natural calamities wherever applicable) and
issues remaining unresolved at the DCC/DLRC meetings

The above list is illustrative and not exhaustive. The SLBC convenor banks may include any other agenda item considered necessary.

The Chief Minister/Finance Minister and senior level officers of the State/RBI (of the rank of Deputy Governor / Executive Director) may be invited to attend the SLBC meetings.

5. Further, we draw your attention the following major recommendations:

I. BANKING PENETRATION

i) SLBC convenor banks / lead banks are advised to focus attention on the urgent need for achieving 100% financial inclusion through penetration of banking services in the rural areas. Such banking services may not necessarily be extended through a brick and mortar branch but can be provided through any of the various forms of ICT- based models, including through BCs. However, ICT connectivity should not be an issue of constraint for not pursuing financial inclusion by commercial banks/RRBs. In this connection you may be guided by our Circular RPCD.CO.LBS.HLC.BC.No.43/ 02.19.10/2009-10 dated November 27, 2009.

ii) SLBC convenor banks may take up impeders with the State governments as issues of road/digital connectivity, conducive law and order situation, uninterrupted power supply and adequate security etc. for ensuring banking expansion at all centres where penetration by the formal banking system is required. However, these should not inhibit the introduction of financial inclusion initiatives.

II. GREATER ROLE FOR PRIVATE SECTOR BANKS

The private sector banks should involve themselves more actively by bringing in their expertise in strategic planning and leveraging on Information Technology. The Lead banks, on their part, should also ensure that private sector banks are more closely involved in the Lead Bank Scheme, both while drawing up and in implementing the ACP/DCP.

III. PREPARATION OF DISTRICT CREDIT PLAN/ANNUAL CREDIT PLAN

i) NABARD prepares PLPs for all the districts of the country. These plans must be prepared by October-November every year and so as to serve as inputs to the district planning authorities for preparing their budgetary plans and to the lead banks for preparing the District Credit Plans (DCP). Preparation of PLP is to be advanced to be completed by August every year to enable the State Governments to factor in the PLP projections. While preparing the PLP for districts, NABARD should take into account the firm commitments given by the State Government/ banks/other stakeholders for the year.

IV. QUARTERLY PUBLIC MEETING AND GRIEVANCE REDRESSAL

The Lead District Manager may convene a quarterly public meeting at various locations in the district, in coordination with banks having a presence in the area and other stakeholders to generate awareness of the various banking facilities, policies and regulations which impact the common person, obtain feedback from the public and provide grievance redress to the extent possible at such meetings or facilitation for approaching the appropriate machinery for grievance redress.

V. CAPACITY BUILDING/TRAINING/SENSITIZATION PROGRAMMES

i) There is a need for sensitising the District Collectors and CEOs of Zilla Parishads on banks and banking in general as also on the specific scope and role of the Lead Bank Scheme. Such sensitisation should form part of the probationary training of such officers. Further, as soon as they are posted in a district, the SLBC may arrange for exposure visits for the District Collectors to the SLBC convenor’s office for sensitisation and understanding of the Lead Bank Scheme.

ii) Staff at the operational level of banks and government agencies associated with implementation of the Lead Bank Scheme need to be aware of the latest developments and emerging opportunities. There is need for staff sensitisation/ training/seminars, etc. at periodic intervals on an ongoing basis.

VI. LIAISON WITH STATE GOVERNMENT

As the effectiveness of the Lead Banks Scheme depends on the dynamism of the District Collector and the LDM, with supportive role of the Regional/Zonal Office, you are advised to follow up with the respective State Governments for extending necessary support as it may be impossible for the banks to achieve the objective of financial inclusion in its most comprehensive sense.

6. All other instructions issued prior to this circular will continue to remain operative /effective.

7. We shall be glad if you will please keep our respective Regional Offices informed of the action taken by you on the various recommendations at quarterly intervals.

8. Please acknowledge receipt.

Yours faithfully

(Deepali Pant Joshi)
Chief General Manager

Encl: As above

Annex - I

High Level Committee to Review Lead Bank Scheme -Action Points for SLBC Convenor Banks

Sr. No.	Reco. No.	Recommendations
1	1	The Lead Bank Scheme (LBS) is useful and needs to continue. The State Level Bankers Committee (SLBC) and various fora under LBS should focus on addressing the ‘enablers’ and ‘impeders’ in advancing greater financial inclusion and flow of credit to priority sectors, while monitoring Govt. Sponsored Schemes. (Para 3.1, 3.8)
2	3	The overarching objective of Lead Bank Sheme shall be to enable banks and State Governments to work together for inclusive growth. (Para 3.4)
3	4	It is necessary to broad base the scope of the scheme to cover initiatives for financial inclusion, role of State Governments, financial literacy and credit counselling as also 'credit plus' activities, formulate action plans to facilitate 'enablers' and remove /minimise 'impeders' for banking development for inclusive growth, develop grievance redressal mechanism, etc.(Para 3.7)
4	7	Banks need to take the maximum advantage of available IT solutions. The funding arrangements available under Financial Inclusion Technology Fund (with NABARD) or other options such as the support offered for distribution of Government payments by RBI may be explored for the purpose. However, connectivity should not be an issue of consideration for not pursuing Financial Inclusion by commercial banks/RRBs. (Para 3.13)
5	9	Although permitted, Primary Agricultural Credit Societies (PACS) are not being used as BCs. Concerted efforts may be made for using PACS as BCs where such PACS are running well. (Para 3.16)
6	11	State Governments to ensure road/ digital connectivity to all centres where penetration by the formal banking system is required. The achievement of such connectivity may be monitored by a sub-committee of the DCC. Advantage may be taken of the special scheme offered by RBI of satellite connectivity through small V-SATs in remote areas. (Para 3.19)
7	12	State Governments to ensure conducive law and order situation, adequate security, uninterrupted power, water supply and irrigation facilities. (Para 3.20)
8	18	The DLCCs/SLBCs may monitor initiatives for providing 'credit plus' services by banks and State Government. The lead banks would need to take expeditious steps to set up RSETIs as per the plan projections. As recommended by the Working Group on Rehabilitation of Sick SMEs (Chairman: Dr. K.C. Chakrabarty, April 2008), a scheme for utilising specified NGOs for providing training and other services to tiny micro enterprises may be considered by the SLBC convenor banks in consultation with State Governments as per the guidelines contained in RBI circular RPCD.SME&NFS.BC.No. 102/06.04.01/2008-09 dated May 04, 2009. (Para 3.26)
9	31	The educational loans granted by banks may be monitored and progress reviewed in the meetings of the SLBC by evolving a tracking mechanism with the help of state Governments, educational institutions and banks, so as to ensure proper recovery of such loans. (Para 3.44)
10	32	The activities of NGOs in facilitating and channelling credit to the low income households are expected to increase in the coming years. Bank's linkage with such NGOs/Corporate houses operating in the area to ensure that the NGOs/Corporates provide the necessary 'credit plus' services can help leverage bank credit for inclusive growth. Success stories could be presented in DCC/SLBC meetings to serve as models that could be replicated. (Para 3.45)
11	33	SLBC/DCC to identify academicians and researchers engaged in research and development studies to be invited occasionally to the meetings of these bodies. (Para 3.46)
12	37	In States where the Chief Minister or the Finance Minister takes active interest in the SLBC and is present in the meetings, the SLBC has been more effective as a coordination forum. (Para 4.2)
13	39	In view of the large membership of the SLBC, it would be desirable for the SLBC to constitute Sub-Committees for specific tasks. In addition to the Sub-Committees already in existence, these could include IT enabled financial inclusion, financial inclusion in urban areas, action plan for financial literacy, grant of educational loans, improvement in land records/ other evidence for land ownership/occupation, improving recovery systems, measures to deal with downturn, promoting bank/SHG linkage and addressing issues relating to provision of microfinance in the State. (Para 4.4)
14	41	The various fora at lower levels should give adequate feedback to the SLBC on issues needed to be discussed on a wider platform. Important issues/ decisions of the BLBC, DCC and DLRC should be placed before the next meeting of the SLBC, so that these receive adequate attention at the State Level. (Para 4.6)
15	42	The secretariat/offices of SLBC should be sufficiently strengthened and the SLBC convenor bank should have a full fledged secretariat for effective discharge of its functions. (Para 4.7)
16	60	Every SLBC should have its own website where all instructions pertaining to the Lead Bank Scheme as well as other instructions issued by Reserve Bank and other agencies as also in respect of Government Schemes for the benefit of common person are made available. (Para 5.8 & 5.9)
17	62	Each SLBC may have a dedicated Financial Literacy Division to propagate the various instructions. The local media should be encouraged to frequently interact with the Financial Literacy Division and its help taken to reach out to the common persons. (Para 5.11)

Annex II

High Level Committee to review Lead Bank Scheme - Action Points for Lead Banks/Commercial Banks

Sr. No.	Reco. No.	Recommendations
1.	1	The Lead Bank Scheme (LBS) is useful and needs to continue. The State Level Bankers Committee (SLBC) and various fora under LBS should focus on addressing the ‘enablers’ and ‘impeders’ in advancing greater financial inclusion and flow of credit to priority sectors, while monitoring Govt. Sponsored Schemes. (Para 3.1, 3.8)
2.	2	Penetration of banking in several parts of the country is still limited. Hence, it is critical that banking services are seen as a public good and are also made accessible to all sections of population and regions of the country at affordable cost. The State development machinery has to ensure the availability of backward and forward linkages to ensure that credit is gainfully deployed and income levels enhanced. (Para 3.3)
3	3	The overarching objective of LBS shall be to enable banks and State Governments to work together for inclusive growth. (Para 3.4)
4	4	It is necessary to broad base the scope of the scheme to cover initiatives for financial inclusion, role of State Governments, financial literacy and credit counselling as also 'credit plus' activities, formulate action plans to facilitate 'enablers' and remove /minimise 'impeders' for banking development for inclusive growth, develop grievance redressal mechanism, etc.(Para 3.7)
5	7	Banks need to take the maximum advantage of available IT solutions. The funding arrangements available under Financial Inclusion Technology Fund (with NABARD) or other options such as the support offered for distribution of Government payments by RBI may be explored for the purpose. However, connectivity should not be an issue of consideration for not pursuing Financial Inclusion by commercial banks/RRBs (Para 3.13)
6	9	Although permitted, Primary Agricultural Credit Societies (PACS) are not being used as BCs. Concerted efforts may be made for using PACS as BCs where such PACS are running well. (Para 3.16).
7	11	State Governments to ensure road/ digital connectivity to all centres where penetration by the formal banking system is required. The achievement of such connectivity may be monitored by a sub-committee of the DCC. Advantage may be taken of the special scheme offered by RBI of satellite connectivity through small V-SATs in remote areas. (Para 3.19)
8	17	Lead banks to open a Financial Literacy and Credit Counselling Centre (FLCC) in every district where they have lead responsibility. (Para 3.25)
9	18	The DLCCs/SLBCs may monitor initiatives for providing 'credit plus' services by banks and State Government. The lead banks would need to take expeditious steps to set up RSETIs as per the plan projections. As recommended by the Working Group on Rehabilitation of Sick SMEs (Chairman: Dr. K.C. Chakrabarty, April 2008), a scheme for utilising specified NGOs for providing training and other services to tiny micro enterprises may be considered by the SLBC convenor banks in consultation with State Governments as per the guidelines contained in RBI circular RPCD.SME&NFS.BC.No. 102/06.04.01/2008-09 dated May 04, 2009. (Para 3.26)
10	23	The present planning process envisages preparation of PLPs by NABARD for all the districts of the country. These plans are to be prepared by October-November every year and provide inputs both to the district planning authorities for preparing their budgetary plans and to the lead banks for preparing the District Credit Plans (DCP), respectively. Preparation of PLP may be advanced to be completed by August every year to enable the State Governments factor in the PLP projections. (Para 3.31)
11	24	While preparing the PLP, NABARD should factor in the suggestions made in the Development plan. NABARD would prepare the PLP for the districts taking into account the firm commitments given by the State Government/ banks/other stakeholders for the year. (Para3.32)
12	25	The Zonal / Controlling offices of banks, while finalising their business plans for the year, should take into account the PLPs prepared by NABARD and plans prepared by the LDMs for sectors other than agriculture and allied activities which should be ready well before the performance budgets are finalised. (Para3.33)
13	26	The Annual Credit Plan would be prepared by the Lead District Manager of the Lead banks concerned taking into account the PLPs. The Annual Credit Plans, among others, should clearly indicate the proposed coverage for SCs/STs, minorities and promotion of SHGs in the district. (Para 3.34)
14	30	Banks should involve themselves actively in the selection of beneficiaries and focus on the bankability and viability of the scheme in the overall interest of ensuring better recovery and ensuring that the subsidy is effectively used for the intended purpose. Governments should evaluate outcomes rather than whether the amounts allocated are fully spent. (Para 3.43)
15	32	The activities of NGOs in facilitating and channelling credit to the low income households are expected to increase in the coming years. Bank's linkage with such NGOs/Corporate houses operating in the area to ensure that the NGOs/Corporates provide the necessary 'credit plus' services can help leverage bank credit for inclusive growth. Success stories could be presented in DCC/SLBC meetings to serve as models that could be replicated.(Para 3.45)
16	33	SLBC/DCC to identify academicians and researchers engaged in research and development studies to be invited occasionally to the meetings of these bodies. (Para 3.46)
17	34	Private sector banks to involve themselves more actively in LBS by bringing in their expertise in strategic planning and leveraging on Information Technology. The Lead banks may involve private sector banks more closely in the LBS while drawing up and implementing the ACP. (Para 3.47)
18	35	State Governments should be able to leverage on the benefits of undertaking government business by banks to incentivize in Government sponsored schemes. Private sector banks may actively involve with the DCC and Action Plans where they have a presence and extend their services through permitted channels in underbanked and unbanked area. (Para 3.49)
19	41	The various fora at lower levels should give adequate feedback to the SLBC on issues needed to be discussed on a wider platform. Important issues/ decisions of the BLBC, DCC and DLRC should be placed before the next meeting of the SLBC, so that these receive adequate attention at the State Level. (Para 4.6)
20	49	A Sub-Committee of DCC may be formed to work intensively on specific issues. There could be different sub-committees to deal with role of SHGs/MFIs, IT based financial inclusion, MSE sector, etc.(Para 4.14)
21	50	The role of LDM should cover convening meetings of the DCC and DLRC, periodical meetings of DDM/LDO/Government officials for resolving outstanding issues, facilitating setting up of Financial Literacy and Credit Counselling Centres (FLCCs), RSETIs by banks, holding annual sensitisation workshops for banks and government officials with participation by NGOs/PRIs, grievance redressal, credit planning at the district level through preparation of one time comprehensive development plan for the district and annual District Credit Plan, and Monitoring implementation of the annual credit plan. (Para 4.15)
22	51	LDM’s office being the focal point for successful implementation of the Lead Bank Scheme, due care should be taken in selecting the incumbent and the posting should be made a coveted one. (Para 4.16(i))
23	53	There is a need for putting in place a mechanism to facilitate greater co-ordination between LDM, LDO and DDM outside the scheduled DCC/DLRC meetings, on an ongoing basis, which will, inter alia, also help in redressal of grievances of the users of banking services. LDMs should be sufficiently empowered and delegated with powers to discharge their responsibilities.RDs/CGMs to review adequacy of support available. (Para 4.16(iv)(v)(vi))
24	54	As soon as Reserve Bank, Government of India, NABARD and IBA’s instructions are placed on their websites, banks may communicate the same to their branches electronically so that the relative instructions come into operation immediately. (Para 5.2)
25	56	Bank officials posted as Lead District Managers may be given two to three weeks attachment at Zilla Parishad/Collectorate for familiarization with government’s role and functioning with regard to the developmental programmes. (Para 5.4)
26	57	Exposure visits may be arranged by the Lead Bank for District Collectors, Block Development Officers, bank officials, SHGs at various levels to leverage upon success stories. (Para 5.5)
27	58	Bank Managers should also visit the SHG meeting places to help understand SHGs better. (Para 5.6)
28	59	Functionaries of PRIs, especially gram panchayats should be familiarized with preparation of bankable schemes, so that budgetary funds for livelihood promotion can be leveraged for promoting financial inclusion and increasing credit absorption capacity. The LDM/ DDM could take initiatives in this regard. (Para 5.7)
29	64	Every quarter, the lead bank may organize an awareness and feedback public meeting in its district. (Para 5.14)
30	65	The LDM may invite the Banking Ombudsman (BO) for such meetings who may attend the same at his/her convenience. (Para 5.15 & 5.16)
31	66	Each lead bank is expected to open a Financial Literacy and Credit Counselling Centre (FLCC) in every district where it has lead responsibility by following the recent guidelines issued by RBI in this regard. The State Government machinery may support the efforts made by banks for financial literacy. Towards this, State Government may proactively provide assistance of the government machinery, especially at the grass root level such as schools, panchayats, etc., for this purpose. (Para 5.18)

FEMA Circular 37/2010 dated February 25, 2010 - Exim Bank's Line of Credit of USD 25 million to the Government of the Democratic Republic of Congo

2010-02-27T11:38:00.001+05:30

Exim Bank's Line of Credit of USD 25 million to the Government of the Democratic Republic of Congo

RBI/2009-10/328
A.P. (DIR Series) Circular No.37

February 25, 2010

To

All Category – I Authorised Dealer Banks
Madam / Sir,

Exim Bank's Line of Credit of USD 25 million
to the Government of the Democratic Republic of Congo

Export-Import Bank of India (Exim Bank) has concluded an Agreement dated August 27, 2009 with the Government of the Democratic Republic of Congo making available to the latter, a Line of Credit (LOC) of USD 25 million (USD twenty five million) for financing eligible goods, machinery, equipment and services including consultancy services from India for the purpose of installation of hand pumps and submersible pumps in the Democratic Republic of Congo. The goods and services including consultancy services from India for exports under this Agreement are those which are eligible for export under the Foreign Trade Policy of the Government of India and whose purchase may be agreed to be financed by the Exim Bank under this Agreement. Out of the total credit by Exim Bank under this Agreement, the goods and services of the value of at least 85 per cent of the contract price shall be supplied by the seller from India, and the remaining 15 per cent goods and services (other than consultancy services) may be procured by the seller for the purpose of Eligible Contract from outside India.
2. The Credit Agreement under the LOC is effective from January 20, 2010 and date of execution of the Agreement is August 27, 2009. Under the LOC, the last date for opening of Letters of Credit and Disbursement will be 48 months from the scheduled completion date(s) of contract(s) in case of project exports and 72 months (August 26, 2015) from the execution date of the Credit Agreement in case of supply contracts .
3. Shipments under the LOC will have to be declared on GR / SDF Forms as per instructions issued by Reserve Bank from time to time.
4. No agency commission is payable under the above LOC. However, if required, the exporter may use his own resources or utilize balances of his Exchange Earners’ Foreign Currency Account for payment of commission in free foreign exchange. Authorised Dealer Category- l (AD Category-l) banks may allow such remittance after realization of full payment of contract value subject to compliance with the prevailing instructions for payment of agency commission.
5. AD Category-I banks may bring the contents of this circular to the notice of their exporter constituents and advise them to obtain full details of the Line of Credit from Exim Bank’s office at Centre One, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400 005 or log on to www.eximbankindia.in.
6. The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge