Insights
The RBI's recent circular designates Sovereign Green Bonds issued in fiscal year 2023-24 as 'specified securities' under the Fully Accessible Route (FAR) for non-resident investors. This allows unrestricted access to these bonds, aligning with the RBI's commitment to broaden investment opportunities in Government Securities. Effective immediately.
This circular reminds Authorized Dealer Category – I (AD Category – I) banks of the permission granted in A.P. (DIR Series) Circular No.04 dated May 25, 2022, allowing remittance of advance payments by Qualified Jewellers for gold imports through India International Bullion Exchange IFSC Ltd (IIBX). It extends this provision to include silver imports, as per DGFT Notification No.35/2023 dated October 11, 2023, subject to specified conditions. AD Category-I banks are instructed to inform their constituents and customers accordingly. The directions are issued under FEMA, 1999.
The circular highlights amendments to the Master Direction on Know Your Customer (KYC), emphasizing Regulated Entities' obligation to avoid accounts for individuals/entities on the UN Security Council's suspected terrorist links list. It provides details on listed individuals/entities, advising strict compliance with KYC procedures and forwarding delisting requests to the Ministry of Home Affairs. Updated lists are available on the UNSC website.
Bulk deposit limits for banks have been revised: Scheduled Commercial Banks and Small Finance Banks now accept deposits of 2 crore or more, while Regional Rural Banks accept deposits of 1 crore or more. For RRBs, the limit is 15 lakhs and above.
Entities eligible for the Account Aggregator ecosystem must serve as both Financial Information Users (FI-U) and Financial Information Providers (FIP) if they hold relevant financial data to ensure efficient utilization of the system.
District Central Co-operative Banks (DCCBs) must obtain RBI approval to open new branches or ATMs. Clarifications have been provided for shifting branches within the same locality and closing unprofitable branches by DCCBs in compliance with the 2020 amendment to the Banking Regulation Act.
RBI extended PCA Framework to Govt NBFCs, effective Oct 1, 2024, based on March 31, 2024, financials for better oversight.
e-Kuber will process government transactions on a specified non-working day to ensure accurate fiscal records for the year.
Circular from 2014 allowed UCBs to offer gold loans up to ₹2.00 lakh. In 2023, the limit increased to ₹4.00 lakh for UCBs meeting PSL targets.
Operation of Pre-Sanctioned Credit Lines at Banks through Unified Payments Interface (UPI). The scope of UPI is now being expanded by the inclusion of credit lines as a funding account.
Reserve Bank of India Act, 1934 - Section 42(1A) - Requirement for maintaining additional CRR. The incremental CRR (I-CRR) has been decided to be discontinued in a phased manner.
Reserve Bank of India (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) Directions, 2023 have been issued.
Responsible Lending Conduct – Release of Movable / Immovable Property Documents on Repayment/ Settlement of Personal Loans.
Maintaining multiple bank accounts? Now, get single-view access to all transactions- Introduced via Internet banking & mobile app- By ICICI bank & Axis Bank.
Axis and ICICI Bank customers can now access a consolidated view of all their transactions with through new account aggregator enabled facility.
Bank loans to grow at 13-13.5% in FY23-24, says CareEdge Ratings. This may result in expansion of overall economy leading to strong demand for loans
The credit rating agency is confident that banks possess sufficient capital to absorb the repercussions of the Reserve Bank of India's measures on anticipated credit losses and unsecured personal loans.
In business and finance, due diligence and audit are two critical processes organizations undertake to ensure transparency, compliance, and risk management. Though they may seem similar initially, they serve distinct purposes and operate in different contexts. This article sheds light on the differences between due diligence and audit, offering an in-depth comparison to clarify their roles and significance in the corporate landscape.
A: The duration of a due diligence process can vary depending on the transaction's complexity and information availability. It may take several weeks to a few months to complete.
Q2: Is an audit mandatory for all companies?A: Audits are generally required for publicly traded companies to comply with regulatory requirements. Private companies may not be obligated to conduct audits unless specified by lenders, investors, or industry regulations.
Q3: What happens if significant issues are uncovered during due diligence?A: If significant issues are discovered during due diligence, the acquiring party may renegotiate the terms of the deal, request corrective actions from the target company, or even abandon the transaction altogether.
Q4: Can a company fail an audit?A: A company can "fail" an audit if material misstatements or irregularities are found in the financial statements. In such cases, the company must rectify the issues and may be subject to penalties or legal consequences, depending on the severity of the findings.
Q5: How does due diligence contribute to successful M&A transactions?A: Due diligence provides valuable insights into the target company's financial and operational health, helping the acquiring party make informed decisions. It reduces the chances of surprises post-transaction and facilitates smoother integration.
In conclusion, due diligence and audit are distinct processes, each serving a unique purpose in the corporate world. Due diligence is a comprehensive investigation conducted during M&A and other significant business transactions, while an audit is an annual examination of a company's financial records for compliance and accuracy. Understanding the differences between these two critical processes can help organizations navigate the complexities of business transactions and maintain financial transparency and accountability.Banking facilitates economic growth and stability in today's fast-paced and dynamic financial landscape. With the ever-increasing complexities of banking operations, ensuring transparency, accuracy, and accountability becomes paramount. One essential tool banks employ to achieve this is - Concurrent audit to ensure real-time, simultaneous examination of financial transactions and processes within a bank, performed continuously. This article explores the importance of concurrent auditing in banks, highlighting its benefits, challenges, and the value it adds to the overall financial system.
ESG has evolved from a niche concept to a critical business framework. As society becomes increasingly concerned about sustainability and ethical practices, companies that integrate ESG principles stand to gain a competitive edge, foster innovation, and build lasting relationships with stakeholders. By understanding ESG, recognizing its importance, and taking deliberate steps to integrate it into business operations, companies can navigate the complex challenges of our modern world while creating a positive impact on the planet and society.