Provisions of section 15 of FEMA, 1999, enable compounding of contraventions and, empowers
the RBI to compound any contravention as defined under section 13 of FEMA, 1999, except
contraventions under section 3 (a) of FEMA, 1999, on an application made by person
committing such contravention.
RBI has come across instances of guarantees (including Standby Letters of Credit [SBLCs] and
/ or performance guarantees) issued by persons resident outside India, favouring persons
resident in India, which are not permitted under extant FEMA regulations.
GOI, vide Trade Notice No.18/2024-2025 dated 30-09-2024, has allowed for an extension of the
Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit ('Scheme') for
three months up to 31-Dec-2024.
The Credit Information Companies (Regulation) Act, 2005 (CICRA) stipulates that only Credit
Institutions (CIs) can furnish credit information to Credit Information Companies (CICs).
ARCs advised to become a member of at least one CIC.
A reference is invited to RBI Master Circular on Customer Service in Banks dated
01-July-2015, containing instructions for scheduled commercial banks to ensure banking
services for Persons with Disabilities.
Nasscom, representing India’s $200 billion
technology industry, advocates in the Union Budget for raising safe harbour eligibility
thresholds in international transactions from the current Rs 200 crore to a minimum of
Rs 2,000 crore.
The government may not tinker with rates under
the old tax regime despite requests to increase the threshold for the highest tax
slab to Rs 20 lakh. This is to ensure that more people are incentivised to move
towards the new regime that discourages exemptions and rebates.
