Millennium Post

RBI allows NRIs to invest in chit funds

The Reserve Bank today allowed non-resident Indians (NRIs) to invest in chit funds on <g data-gr-id="29">non-repatriation</g> basis without any ceiling, a move that will encourage <g data-gr-id="30">flow</g> of capital into the country.

However, the subscription to the chit funds should be brought in through normal banking channel, including through an account maintained with a bank in India.

Earlier in May 2000, non-residents were barred from investing in a company or firms engaged in the business of chit fund.

Revising the extant guidelines for <g data-gr-id="27">subscription</g> to the chit funds, RBI said: "It has been decided to permit NRIs to subscribe to the chit funds, without limit, on non-repatriation".

It further said the Registrar of Chits or an officer authorised by the State Government may permit any chit fund to accept subscription from NRIs on non-repatriation basis. RBI said the revision in the guidelines were made in consultation with the government.

RBI extends ECB borrowing window for airlines till March 2016---208
The Reserve Bank today extended the deadline for <g data-gr-id="47">aviation</g> sector to raise funds through external commercial borrowings (ECBs) route by a year till March, a move aimed at providing relief to the cash-crunched sector. “In a review, it has been decided that...<g data-gr-id="31">scheme</g> of raising ECB for working capital for Civil Aviation Sector will continue till March 31, 2016,” the central bank said through a notification.

As per the earlier guidelines, the scheme was valid till March 2015. The overall ECB ceiling for the entire civil aviation sector would be USD 1 billion and the maximum permissible ECB that can be availed by an individual airline company will be USD 300 million, it said.

This limit can be utilised for working capital and also refinancing of the outstanding working capital rupee loan availed from the domestic banking system. 

Pvt bankers to be interviewed for CEO/MD post at 5 large PSBs
 In a first for India's PSU banks, candidates from private sector banks have been shortlisted for next week's interviews for the post of CEO and MD at five large banks including PNB, BOB and Canara Bank. As many as 26 candidates are to appear for the interview on June 15 and 16, sources said. A <g data-gr-id="57">high level</g> search panel headed by RBI Governor Raghuram Rajan will interview candidates, they said. Among the 26 candidates, about 7 existing executive directors of the various public sector banks have been shortlisted for the interview.
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