RBI directs banks to verify authenticity of notes of Rs100 and above

“Banks should now re-align their cash management in such a manner so as to ensure that cash receipts in the denominations of Rs100 and above should not be put into re-circulation without the notes being machine processed for authenticity,” RBI said in a notification

Mumbai: In a step to check circulation of counterfeit notes, the Reserve Bank of India (RBI) on Wednesday asked all banks to ensure authenticity of notes of Rs100 and above denomination before re-circulation, reports PTI.

“In light of Para 127 of the Monetary Policy Statement 2012-13... banks should now re-align their cash management in such a manner so as to ensure that cash receipts in the denominations of Rs100 and above should not be put into re-circulation without the notes being machine processed for authenticity,” RBI said in a notification.

RBI further said that banks should use such machines in all bank branches with average daily cash receipt of Rs50 lakh and above, within a definite time frame.

In its Monetary Policy 2012-13 on 17th April, RBI had said that banks must ensure authenticity of notes received on their counters before re-circulation.

It had also asked banks to streamline their system which will make them bear the risk of counterfeit bank notes rather than the common man who ‘unknowingly’ comes in possession of such notes.

“The above instructions shall come into effect immediately and are applicable to all bank branches, irrespective of the volume of daily cash receipt,” RBI said.

Any non-compliance will be construed as violation of the above mentioned directive issued by the RBI, it added further.

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RBI tightens norms for utilisation of foreign currency FDs

FCNR (B) funds can be only used for the rupee working capital or capital expenditure needs of exporters or corporates who have a natural hedge or a risk management policy for managing the exchange risk, the RBI said in a notification

Mumbai: In bid to check outflow of forex, the Reserve Bank of India (RBI) on Wednesday tightened norms for utilisation of the foreign currency fixed deposit funds, reports PTI.

The funds could be used by banks for lending to only those entities with risk management policy for managing the exchange rate volatility.

“Accordingly, it has been decided that the FCNR(B) funds representing deposit liabilities may be utilised for making loans to resident constituents for meeting their foreign exchange requirements,” RBI said in a notification.

It can be only used for the rupee working capital or capital expenditure needs of exporters or corporates who have a natural hedge or a risk management policy for managing the exchange risk, it said.

It is subject to the prudential and interest-rate norms, credit discipline and credit monitoring guidelines in force, it said.

The notification assumes significance as rupee touched an all-time low against dollar.

The rupee closed at all-time low of 53.84 losing a hefty 72 paise against dollar due to sustained demand for the US currency which rose sharply against major rivals after poll results in Greece and France fuelled fresh Eurozone worries.

Last week, the RBI had raised the interest rate ceiling on NRI deposits in foreign currencies by up to 3% to attract inflows.

“Interest rate ceiling on Foreign Currency Non-Resident FCNR (B) deposits of banks has been raised from 125 basis points (bps) above the corresponding LIBOR or Swap rates to 200 bps for maturity period of one year to less than three years, and to 300 bps for maturity period of three to five years,” RBI had said.

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News channels want TRAI to issue directions on placement fee

Following protests by News Broadcasters Association, TRAI chairman JS Sarma had in interviews to TV channels said while he expected “carriage fee” to remain within reasonable levels, there was no provision for placement fee

New Delhi: In order to address the concerns of several leading television news channels over the latest cable rules, broadcasters expect the Telecom Regulatory Authority of India (TRAI) would in the coming days issue further guidelines concerning the issue of “placement fee”, reports PTI.

After TRAI had issued the guidelines for the cable industry last month, the News Broadcasters Association (NBA) had protested against the decision to allow “carriage fee”.

Carriage fee is the money that Multi System Operators (MSOs) and cable operators charge from TV channels to carry their content on their networks to the viewers.

Following protests by NBA, TRAI chairman JS Sarma had in interviews to TV channels said while he expected “carriage fee” to remain within reasonable levels, there was no provision for placement fee.

Mr Sarma had also said channels will be listed as per the Electronic Place Guide (EPG) and as per genre and there would be no provision of placement fee.

Sources said NBA now expected that TRAI would issue certain directions which would clearly spell out these, banning of placement fee and use of EPG for listing channels.

A delegation consisting of leading broadcasters also met information and broadcasting minister Ambika Soni on Wednesday in this regard, sources said.

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