Clarification: If there is a decline in credit, the weighted incremental credit will be zero (0). The methodology as given below will be considered for all the districts for which data is reported in ADEPT. The banks are requested to get in touch with our Statistics Division (fiddstats@rbi.org.in) regarding the format for submission of returns under ADEPT, in case the same have not been submitted till date by the bank. Further, based on the methodology detailed above, banks are expected monitor their own PSL achievement during the year taking into account the prescription of differential weights for credit disbursed in identified districts, for the purpose of trading in PSLCs.

* Avg. achievement will be the average of four quarters of a year, as on reporting dates of QPSA. Similar calculations will be done for other PSL targets.

Clarification: For mapping a credit facility to a particular district, the ‘Place of utilization of Credit’ shall be the qualifying criteria.

Clarification: While calculating district-wise incremental credit for assigning weights, the organic credit i.e. only the credit directly disbursed by banks and for which the actual borrower/beneficiary wise details are maintained in the books of the bank will be considered. Credit disbursed through the following inorganic routes shall not be considered for incremental weights.

1. Investments by banks in securitised assets

2. Transfer of Assets through Direct Assignment /Outright purchase

3. Inter Bank Participation Certificates (IBPCs)

4. Priority Sector Lending Certificates (PSLCs)

5. Bank loans to MFIs (NBFC-MFIs, Societies, Trusts, etc.) for on-lending

6. Bank loans to NBFCs for on-lending

7. Bank loans to HFCs for on-lending

Ans: Non-filing of the return on or before due date (July 15 of every year) will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA. For further details on penalty clause, please see the below links:

1. Notification No. FEMA. 395/2019-RB dated October 17, 2019.

2. A.P. (DIR Series) Circular No.16 dated September 30, 2022.

Ans: No, Existing CICs which have been exempted from registration in the past and have an asset size of less than Rs 100 crore are exempted from registration as stated in Notification No. DNBS.(PD) 220/CGM(US)-2011 dated January 5, 2011. As such they are not required to submit any auditor’s certificate that they comply with the requirements of the Notification.

Only for the first arrangement which the AD Category–I bank enters into with the non–resident Exchange Houses for RDA requires RBI permission. Subsequently, AD Category- I banks may enter into RDAs, subject to the prescribed guidelines and inform the Reserve Bank (immediately).

No. The cooling period has been introduced as a general prescription for normal cases of compromise settlements, without prejudice to the penal measures applicable in respect of borrowers classified as fraud or wilful defaulter as per the Master Directions on Frauds dated July 1, 2016 and the Master Circular on Wilful Defaulters dated July 1, 2015, respectively, as mentioned at (2) above.

Ans.: Biennial.

Answer: Tenor of convertible instruments will be guided by the instructions framed under the Companies Act, 2013 and the rules framed thereunder. However, the investee company should ensure that the price/ conversion formula of convertible capital instruments is determined upfront at the time of issue of the instruments. The price at the time of conversion should not in any case be lower than the fair value worked out, at the time of issuance of such instruments, in accordance with the extant FEMA regulations.

All the NBFCs which were incorporated before January 9, 1997 were required to submit their Application for Registration with RBI within 6 months i.e. by July 8, 1997. The companies which failed to make such an application cannot carry on their business of a financial institution. Any violation of this provision would render the companies and their management liable for penal action under the provisions of Reserve Bank of India Act, 1934.