Wednesday, May 31, 2023
English News
  • Hyderabad
  • Telangana
  • Andhra Pradesh
  • India
  • World
  • Entertainment
  • Science and Tech
  • Sport
  • Business
  • ...
    • NRI
    • View Point
    • cartoon
    • Columns
    • Reviews
    • Education Today
    • Property
    • Videos
    • Lifestyle
    • Rewind
E-Paper
  • NRI
  • View Point
  • cartoon
  • Columns
  • Reviews
  • Education Today
  • Property
  • Videos
  • Lifestyle
  • Rewind
Home | India | Rbi To Allow Banks To Infuse Capital In Overseas Branches Without Its Prior Permission

RBI to allow banks to infuse capital in overseas branches without its prior permission

Mumbai: Reserve Bank of India (RBI) on Wednesday said banks will be allowed to infuse capital in their overseas branches as well as repatriate profits without seeking its prior approval, subject to fulfilling of certain regulatory capital requirements. At present, banks incorporated in India can infuse capital in their overseas branches and subsidiaries, retain profits […]

By PTI
Updated On - 12:20 PM, Wed - 8 December 21
RBI to allow banks to infuse capital in overseas branches without its prior permission
whatsapp facebook twitter telegram

Mumbai: Reserve Bank of India (RBI) on Wednesday said banks will be allowed to infuse capital in their overseas branches as well as repatriate profits without seeking its prior approval, subject to fulfilling of certain regulatory capital requirements.

At present, banks incorporated in India can infuse capital in their overseas branches and subsidiaries, retain profits in these centres and repatriate/ transfer the profits with prior approval of the RBI.

“With a view to providing operational flexibility to banks, it has been decided that banks need not seek prior approval of the RBI if they meet the regulatory capital requirements,” RBI Governor Shaktikanta Das said while announcing the bi-monthly monetary policy.

The instructions in this regard are being issued separately, he added.

Extant regulatory instructions on classification and valuation of investment portfolio by scheduled commercial banks are largely based on a framework introduced in October 2000 drawing upon the then prevailing global standards and best practices.

In view of the subsequent significant developments in the global standards on classification, measurement and valuation of investments, the linkages with the capital adequacy framework as well as progress in the domestic financial markets, there is a need to review and update these norms, he said.

As a step in this direction, a discussion paper covering all relevant aspects will be placed shortly on the RBI website for comments, he noted.

In view of the imminent discontinuance of LIBOR, Das said any widely accepted interbank rate or Alternative Reference Rate (ARR) applicable to the currency of borrowing may be used as a benchmark, post discontinuation.

Currently, the benchmark rate for Foreign Currency (FCY) External Commercial Borrowings (ECB)/Trade Credit (TC) is specified as six-month LIBOR rate or any other six-month interbank interest rate applicable to the currency of borrowing.

To take into account the differences in credit risk and term premia between LIBOR and the ARRs, for new foreign currency ECBs and TCs, it is proposed to revise the all-in-cost ceiling from 450 to 500 basis points and from 250 to 300 basis points (bps), respectively, over the ARRs.

To enable transition of existing ECBs and TCs linked to LIBOR, it is proposed to revise the all-in-cost ceiling from 450 to 550 bps and from 250 to 350 bps respectively, over the ARRs.

  • Follow Us :
  • Tags
  • Banks
  • overseas branches
  • Reserve Bank of India

Related News

  • Cash sales at petrol pump spike to 90 per cent as customers rush to use Rs 2,000 notes

    Cash sales at petrol pump spike to 90 per cent as customers rush to use Rs 2,000 notes

  • No forms, ID cards needed to exchange Rs 2000 notes: SBI

    No forms, ID cards needed to exchange Rs 2000 notes: SBI

  • Raj Thackeray slams Centre over RBI’s decision to withdraw Rs 2000 notes

    Raj Thackeray slams Centre over RBI’s decision to withdraw Rs 2000 notes

  • Congress demands fair investigation in withdrawal of Rs 2,000 notes from circulation

    Congress demands fair investigation in withdrawal of Rs 2,000 notes from circulation

  • Centre to get Rs 87,416 crore dividend from RBI

    Centre to get Rs 87,416 crore dividend from RBI

  • RBI withdraws Rs 2000 notes; to continue as legal tender

    RBI withdraws Rs 2000 notes; to continue as legal tender

Latest News

  • Punjab: NCERT removes objectionable content from class 12 Political Science book

    9 mins ago
  • Why can’t daughters get justice: Kharge slams Centre over wrestlers issue

    18 mins ago
  • Congress slams BJP over broken statues at Mahakal temple, demands probe

    28 mins ago
  • TSPSC debars 37 candidates for recruitment exams till further orders

    38 mins ago
  • About 40 medical colleges lose recognition for non-compliance with NMC standards

    6 hours ago
  • Number of Rs 500 fake currency notes rose by 14.6 per cent: RBI

    6 hours ago
  • Opinion: AI and ethical dilemmas

    6 hours ago
  • Editorial: Mammoth task in Manipur

    6 hours ago

company

  • Home
  • About Us
  • Contact Us

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

© Copyrights 2022 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam