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Management Representation Letter

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(To be obtained on branch letter head)

Management Representation Letter

 To,

M/s ___________________,

Chartered Accountants,

_______________,

_______________,

Dear Sir(s),

Sub: Statutory Audit for the year ended March 31, 2014

This representation letter is provided in connection with your audit of the financial statements of _____________ branch of _______________ bank, for the year ended March 31, 2014, for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the state of affairs of ___________ branch of _______________ bank as of March 31, 2014, and of the results of operations for the year then ended. We acknowledge our responsibility for preparation of financial statements, in accordance with the financial reporting framework applicable to the Bank, including the regulatory requirements of the Reserve Bank of India.

We confirm to the best of our knowledge and belief, the following representations:

  1. Accounting Policies – The accounting policies, as approved by the board of directors of the Bank, have been duly followed. There are no changes in the accounting policies followed by the branch during the current year.
  2. Assets

2.1.      The All the assets owned by the bank and transferred to the branch and such other asset/s, as has/have been acquired by the branch, has/have been duly accounted for, and none of the assets is encumbered.

2.2.      The fixed assets held by Branch have been accounted at the Head Office and have been physically verified at the year end. No discrepancies have been noticed on such verification. Depreciation on these assets has been provided at Head Office as per the policy of the bank.

2.3.      In respect of assets other than fixed assets, the same do not have a value lower than realisable value.

2.4.      The branch is operating from a leased premise and there is no dispute with respect to the tenancy and lease charges.

3. Capital Commitments – At the balance sheet date, there were no outstanding commitments for capital expenditure other than those disclosed in the financial statements.

4. Cash and Bank Balances – The cash balances as on March 31, 2014 has been verified by us.

5. Liabilities – The branch has recorded all known liabilities in the financial statements.

6.Contingent Liabilities

6.1.      The branches has disclosed in the notes to the financial statements all;

(a)   Guarantees that we have given to third parties;

(b)   Letter of Credits (Local/Import);

(c)   Letter of Comfort (Local/Import);

(d)   Deferred Payment Credits/Guarantees (Local/Import); and

(e)   All other contingent liabilities.

6.2.      Other than for advances, there are no matters involving the branches in any claims in litigation, arbitration or other disputes in which there may be some financial implications, including for staff claim, branch rentals, municipal taxes, local levies, etc. except for those which have been appropriately included under contingent liabilities.

6.3.      Guarantees, if any are disclosed net of margins as at the year-end, and expired guarantee, if any where the claim year has also expired has been correctly removed from the branches return.

6.4.      None of the contingent liabilities disclosed in the notes are likely to result in a loss, requiring adjustment of assets or liabilities.

7. Provisions for Claims and Losses – Provision has been made in the accounts for all known losses and claims of material accounts.

8. Events after the Balance Sheet Date – There have been no events subsequent to the balance sheet date that require adjustments, or disclosure in, the financial statements or notes thereto.

9. Profit And Loss Account – Except as disclosed in the financial statements, the result for the year were materially affected by:

(a)     circumstances of an exceptional or non-recurring nature;

(b)     changes or credits of prior years;

(c)     changes in accounting policies.

10. Reports – We have made available to you all the following latest reports on the accounts of our branches, and compliance by the branches on the observations contained therein:

(a)     Previous year’s branch audit report;

(b)     Internal inspection reports;

(c)     Concurrent Audit Reports;

(d)     Migration Audit Reports;

(e)     Report on any other Inspection Audit that has been conducted during the course of the year relevant to the financial year 2013-14.

Apart from the above, the branches has not received any show cause notice, inspection advice, etc. from Government of India, Reserve Bank of India, or any other monitoring or regulatory authority of India that could have a material effect on the financial statements of the branch during the year.

11. Balancing of Books – The books of accounts are computerised and hence the subsidiary records are automatically balanced with the relevant control records. In the case of manual sub-ledgers maintained, we confirm that they duly match with the general ledger balances.

12. Overdue/Matured Term Deposits – All overdue/matured term deposits are held as overdue/matured term deposits. No provision of interest on overdue/matured Term Deposits has been made.

13. Advances – In respect of the Advances and income thereon, the income recognition and asset classification (IRAC) norms prescribed by the Reserve Bank of India have been complied with.

14. Outstanding in Suspense/ Sundry Account – The year-wise/ entry-wise break up of amounts outstanding in Sundry deposits/ sundry assets as on March 31, 2014 has already been submitted to you along with explanation of the nature of the amounts in brief and supporting evidence relating to existence of such amounts in the aforesaid accounts.

15. Interest Provisions

15.1.    Interest provision has been made on deposits, etc. except overdue/matured fixed deposits, in accordance with the extant instructions of the Head Office.

15.2.    The interest provision for Head Office Interest shall be made at the Head Office

16. Stationery – Stock of unused stationery like security papers, demand draft book, etc. have been produced for your physical verification and are in order.

17. Long Form Audit Report-Branch Response to the Questionnaire – In connection with the LFAR, complete information as regards each item in the questionnaire has been made available to you in order to enable you to verify the same for the purpose of your audit.

18. Other Certification – Duly authenticated, information as regards other matters which, as per the bank’s letter of appointment, require certification has been made available to you.

19. General – There is no enquiry going on or concluded during the year by CBI or any other vigilance or investigating agency on the branch or on its employees and no cases of frauds or of misappropriation of assets of the branches have come to the notice of the Management during the year other than for amounts for which provisions have already been made in the books of accounts.

  1. Provision for non-performing assets, depreciation, provision for income tax, provision for bonus, gratuity, service tax, etc., is made at Head Office. Therefore, the same has not been provided in the branch accounts.

  2. The financial statements are free of material misstatements, including omissions.

  3. The branch has complied with all aspects of contractual agreements that could compliance. There has been no non-compliance with requirements of regulating authorities that could have a material effect on the financial statements in the event of non-compliance.

  4. We have no plans or intentions that may materially affect the carrying value or classification of assets and liabilities reflected in the financial statements.

  5. The other particulars required have already been given to you and particulars and other representations made to you from time to time are true and correct in all respects.

25. Tax Audit for the year ended March 31, 2014 (Tax Audit in terms of Section 44AB of the Income Tax Act, 1961)

The information required for the tax audit under section 44AB of the Income Tax Act, 1961 for the year ended March 31, 2014 has been made available to you in order to enable you to verify the same for the purpose of your report thereon. We certify the following:

 PART – A

25.1.      Permanent Account No. of the bank is given in Form 3CD.

25.2.      The address as per the jurisdiction of the assessee falls under section 124 of the Income Tax Act, 1961 and given in Form 3CD.

25.3.      The status as defined under the Income tax Act, 1961 is Banking Company.

 PART – B

25.4.      There is no change in nature of business in current year as compared to preceding previous year.

25.5.      The books of accounts maintained by us have been correctly disclosed in clause 9(b) of Form 3CD.

25.6.      Our Profit & Loss account does not include profits and gains assessable on presumptive basis under section 44AD, 44AE, 44AF, 44B, 44BB, 44BBA, 44BBB, 172 of the Income Tax Act, 1961.

25.7.      The method of accounting followed is as per clause 11(a) which has been consistently followed in the immediately preceding previous year. There was no change in the method of accounting employed vis-à-vis the method employed in the immediately preceding previous year.

25.8.      Sum received from employee towards contributions to any provident fund or superannuation fund or any other fund mentioned in section 2(24)(x) which is paid/ not paid with due dates to concerned authorities under section 36(1)(va) are mentioned in Clause 16(b) of our Form 3CD and the same are correct.

25.9.      In clause 17 of Form 3CD, there are no other amounts of such items debited to Profit & Loss Account.

25.10.   No payments are made to persons specified under section 40A(2)(b).

25.11.   There is no amount of profit chargeable to tax under section 41 as disclosed under clause 20 of Form 3CD.

25.12.   Except for the items shown under clause 21(ii)(B), no tax, duty or other sum as referred to under section 43B has been provided as at the year end.

25.13.   No expenditure/ income of an earlier year has been debited/ credited to the Profit & Loss Account except to the extant disclosed under clause 22(b) of Form 3CD.

25.14.   No loans or deposits of Rs.20000/- or more have been repaid in cash other than those specified in the statement of particulars as given in the respective clause of Form 3CD. The details of loans or deposits of Rs.20000/- or more given in the said statement of particulars is true and correct.

25.15.   Section-wise details of deduction admissible under chapter VI-A – No other deduction other than those mentioned in clause 26 of Form 3CD is available to the branch.

25.16.   Details of delay in payment of tax deducted at source to the credit of the Central Government are given in the statement of particulars. Apart from that, there are no other delays in payment of Tax Deducted at Source.

25.17.   The other particulars required have already been given to you and particulars and other representations made to you from time to time are true and correct in all respects.

Thanking you.

 Yours faithfully,

For & on behalf of ________________ Bank

 (Branch Manager)

 Place:

Dated:

 

Good news: belief in God and the supernatural appears to wane

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HUF Creation Deed

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[To be executed on Rs. 100 Stamp Paper in UP]

HUF Creation Deed

DECLARATION OF GIFT MADE BY _____ _____ ____ ____TO THE HINDU UNDIVIDED FAMILY OF ____ _____ ____ ___ ___

I, ____ ____ ______, residing at___ __ ___ __ __ __ ____ ___, do hereby declare and affirm as under:

  1. That out of natural love and affection borne by me towards the Hindu Undivided Family of_______ _____ _______ _______ ____, I have made a gift of Rs.___ ___ (Rupees ___ _____ ____ __only) as per the following details:

2. By Cheque No.__ ___ ___, dated __ ___ __ ___, drawn on Bank _____ __ ___ ___ ___ ____, _ _ ____ __ __ __ ___ Branch, in favour of ___ ___ ___ ____ ____ ____ ___ HUF.

3. The above Gift has been duly accepted by ____ ___ ___ ___ ____ ___ ___, as Karta of his Hindu Undivided Family and has been duly acknowledged hereunder.

  1. This Declaration of Gift is made to record the fact that I have made this Gift in favour of the Donee as above, who now has the absolute right, title and interest in the gifted on said amount.
    Date: ___________, 200__ ____ ___ ___ ____ _____

 (Signature of the Donor)
ACKNOWLEDGEMENT OF GIFT

I, ________________________, hereby acknowledge having received the above gift made to my Hindu Undivided Family by _________________________.

Date: ___________, 200__ ___________________

(Signature of the Donee as Karta of his HUF)

RBI/2013-14/452 Merchanting Trade Transactions

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Date: Jan 17, 2014

RBI/2013-14/452
A.P. (DIR Series) Circular No.95

January 17, 2014

To

All Category – I Authorised Dealer Banks

Merchanting Trade Transactions

Madam / Sir,

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular Nos.106 & 4 dated June 19, 2003 and July 19, 2003 respectively, containing directions relating to merchanting or intermediary trade transactions. In the light of the recommendations of the Technical Committee on Services/Facilities to Exporters (Chairman: Shri G. Padmanabhan) to further liberalise and simplify the procedure, the existing guidelines for merchanting or intermediary trade transactions have been reviewed. Accordingly in supersession of the existing guidelines, the revised guidelines will come into effect immediately.

2. While handling merchant trade transactions or intermediary trade transactions, AD Category – I bank may keep the following guidelines in view:

i.            Goods involved in the merchanting or intermediary trade transactions would be the ones that are permitted for exports / imports under the prevailing Foreign Trade Policy (FTP) of India, at the time of entering into the contract and all the rules, regulations and directions applicable to exports (except Export Declaration Form) and imports (except Bill of Entry) are complied with for the export leg and import leg respectively;

ii.            Both the legs of a merchanting or intermediary trade transaction are routed through the same AD bank. The bank should verify the documents like invoice, packing list, transport documents and insurance documents and satisfy itself about the genuiness of the trade.

iii.            The entire merchanting or intermediary trade transactions should be completed within an overall period of nine months and there should not be any outlay of foreign exchange beyond four months.

iv.            The commencement of merchanting or intermediary trade would be the date of shipment / export leg receipt or import leg payment, whichever is first. The completion date would be the date of shipment / export leg receipt or import leg payment, whichever is the last;

v.            Short-term credit either by way of suppliers’ credit or buyers’ credit will be available for merchanting or intermediary trade transactions including the discounting of export leg LC by an AD bank, as in the case of import transactions

vi.            AD bank should ensure one-to-one matching in case of each merchanting or intermediary trade transaction and report defaults in any leg by the traders to the concerned Regional Office of RBI on half yearly basis in the format as annexed. The deadline for submission of the report would be 15 calendar days after the close of each half year. In case of repeated defaults i.e. three cases or more in a year, ADs should restrain the traders from entering into any further transaction in merchanting or intermediary trade and consider recommending caution listing of the trader, to the Reserve Bank of India;

3. The merchanting traders have to be genuine traders of goods and not mere financial intermediaries. Confirmed orders have to be received by them from the overseas buyers. Authorised Dealer should satisfy itself about the capabilities of the merchanting trader to perform the obligations under the order. The transactions should result in reasonable profits to the merchanting trader.

4. The inward remittance from the overseas buyer should preferably be received first and the outward remittance to the overseas supplier will be made subsequently. Alternatively, an irrevocable Letter of Credit (LC) should be opened by the buyer in favour of the merchant. On the strength of such LC the merchant in turn may open a LC in favour of the overseas supplier. The terms of payment under both the LCs should be such that payment for import LC is required to be made after receipt of payment under export LC. The export LC should be issued in the name of original merchanting trader in India and import LC should be favouring the original supplier. In case export leg payment is received in advance, AD banks need not insist on opening of export LC.

5. In case advance against the export leg is received by the merchanting trader, the advance payment may be held in a separate deposit / current account in foreign currency or Indian Rupees. The amount required for import leg should be earmarked till the payment of import and should not be made available to the merchanting trader for use, other than for import payment or short-term deployment of fund limited to the import payable, with the same AD for the intervening period. If advance for the import leg is demanded by the overseas seller, the same should be paid against bank guarantee from an international bank of repute;

6. Reporting for merchanting or intermediary trade for compilation of R-return should be done on gross basis, against the undernoted codes :

Trade

Purpose Code under FETERS

Description
Export P0108 Goods sold under merchanting /receipt against export leg of merchanting trade
Import S0108 Goods acquired under merchanting /payment against import leg of merchanting trade

7. AD Category-I banks may bring the contents of this circular to the notice of their constituents concerned and note the guidelines for strict compliance.

8. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(C. D. Srinivasan)
Chief General Manager

Third party payments for export / import transactions

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RBI/2013-14/364
A. P. (DIR Series) Circular No.70
November 8 , 2013
To
All Category-I Authorised Dealer Banks
Madam / Sir,.

Third party payments for export / import transactions

Attention of Authorized Dealer Category – I banks is invited to various provisions of FEMA Notification No. 14 dated May 3, 2000 dealing with the manner of receipt & payment for trade transactions. Normally payment for exports has to be received from the overseas buyer named in the Export Declaration Form (EDF) by the exporter and the payment shall be received in a currency appropriate to the place of final destination as mentioned in the EDF irrespective of the country of residence of the buyer. Similarly, the payments for the import should be made to the original overseas seller of the goods and the AD should ensure that the importer furnishes evidence of import, such as, Exchange Control copy of the Bill of Entry to satisfy itself that goods equivalent to the value of remittance have been imported.
2. With a view to further liberalising the procedure relating to payments for exports/imports and taking into account evolving international trade practices, it has been decided as under:
i. EXPORT TRANSACTIONS
AD banks may allow payments for export of goods / software to be received from a third party (a party other than the buyer) subject to conditions as under:
a. Firm irrevocable order backed by a tripartite agreement should be in place;
b. Third party payment should come from a Financial Action Task Force (FATF) compliant country and through the banking channel only;
c. The exporter should declare the third party remittance in the Export Declaration Form;
d. It would be responsibility of the Exporter to realize and repatriate the export proceeds from such third party named in the EDF;
e. Reporting of outstandings, if any, in the XOS would continue to be shown against the name of the exporter. However, instead of the name of the overseas buyer from where the proceeds have to be realised, the name of the declared third party should appear in the XOS; and
f. In case of shipments being made to a country in Group II of Restricted Cover Countries, (e.g. Sudan, Somalia, etc.), payments for the same may be received from an Open Cover Country.
Note: Restricted cover Group II country is country which experiences chronic political and economic problems as well as balance of payment difficulties.
ii. IMPORT TRANSACTIONS
AD banks are allowed to make payments to a third party for import of goods, subject to conditions as under:
a. Firm irrevocable purchase order / tripartite agreement should be in place;
b. Third party payment should be made to a Financial Action Task Force (FATF) compliant country and through the banking channel only;
c. The Invoice should contain a narration that the related payment has to be made to the (named) third party;
d. Bill of Entry should mention the name of the shipper as also the narration that the related payment has to be made to the (named) third party;
e. Importer should comply with the related extant instructions relating to imports including those on advance payment being made for import of goods; and
f. The amount of an import transaction eligible for third party payment should not exceed USD 100,000. This limit will be revised as and when considered expedient.
3. These instructions will come into force with immediate effect.
4. AD Category – I banks may bring the contents of this Circular to the notice of their constituents concerned.
5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,
(C.D Srinivasan)
Chief General Manager

No TDS on Service Tax Component if Shown seperately

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CBDT CIRCULAR NO. 1/2014 [DATED 13-1-2014]
TDS under Chapter XVII-B of the Income-tax Act, 1961 on service tax component comprised in the payments made to residents – clarification regarding
The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as ‘the Act’), on the amount of rent paid/payable without including the service tax component. Representations/letters has been received seeking clarification whether such principle can be extended to other provisions of the Act also.
Attention of CBDT has also been drawn to the judgement of the Hon’ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.
The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.

NHAI public issue of tax-free bonds to open on Wednesday

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NEW DELHI, JAN 14, 2014: THE National Highways Authority of India (NHAI) has announced the public issue of tax free, secured redeemable, non convertible bonds in the nature of debentures of the face value of Rs. 1,000 each (“Bonds”), for an amount of Rs. 1,00,000 lakhs with an option to retain oversubscription up to Rs. 2,69,840 lakhs aggregating to a total of Rs. 3,69,840 lakhs. The proposed Bonds have been rated “CRISIL AAA/Stable” by CRISIL; CARE “AAA” by CARE and “BWR AAA with Stable Outlook” by Brickwork. The issue opens on January 15, 2014 and closes on February 5, 2014 with an option of early closure. The Bonds are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.
The Bonds are offered with two different Series, i.e. with tenor of 10 years and 15 years. The coupon rate for Individual and HUF investors applying for an amount up to Rs. 10 lakhs shall be 8.52% and 8.75% for the Bonds with tenor of 10 years and 15 years, respectively. For all other investors, the coupon rate shall be 8.27% and 8.50%, respectively. As Bonds carry tax benefits under section 10(15) (iv) (h) of the Income Tax Act, 1961, as amended, the income earned by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income.
The minimum application size is 5 Bonds (Rs. 5,000) individually or collectively across both Series of Bonds and in multiples of 1 Bond (Rs. 1,000) thereafter. The investors can download the application form for the Issue from the websites of the Lead Managers at www.edelweissfin.com, www.akcapindia.com, www.axiscapital.co.in andwww.icicisecurities.com and the websites of the stock exchanges at www.bseindia.com and www.nseindia.com.
The Allotment shall be made on first come first serve basis determined on the basis of date of upload of Applications on the electronic Application platform of the stock exchanges. The Allotment of the Bonds shall be in dematerialized form as well as physical form. However, trading in Bonds shall be compulsorily in dematerialised form.

A History Of New Year

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A move from March to January
The celebration of the new year on January 1st is a relatively new phenomenon. The earliest recording of a new year celebration is believed to have been in Mesopotamia, c. 2000 B.C. and was celebrated around the time of the vernal equinox, in mid-March. A variety of other dates tied to the seasons were also used by various ancient cultures. The Egyptians, Phoenicians, and Persians began their new year with the fall equinox, and the Greeks celebrated it on the winter solstice.

Early Roman Calendar: March 1st Rings in the New Year
The early Roman calendar designated March 1 as the new year. The calendar had just ten months, beginning with March. That the new year once began with the month of March is still reflected in some of the names of the months. September through December, our ninth through twelfth months, were originally positioned as the seventh through tenth months (septem is Latin for “seven,” octo is “eight,” novem is “nine,” and decem is “ten.” January Joins the Calendar

The first time the new year was celebrated on January 1st was in Rome in 153 B.C. (In fact, the month of January did not even exist until around 700 B.C., when the second king of Rome, Numa Pontilius, added the months of January and February.) The new year was moved from March to January because that was the beginning of the civil year, the month that the two newly elected Roman consuls—the highest officials in the Roman republic—began their one-year tenure. But this new year date was not always strictly and widely observed, and the new year was still sometimes celebrated on March 1.

Julian Calendar: January 1st Officially Instituted as the New Year In 46 B.C. Julius Caesar introduced a new, solar-based calendar that was a vast improvement on the ancient Roman calendar, which was a lunar system that had become wildly inaccurate over the years. The Julian calendar decreed that the new year would occur with January 1, and within the Roman world, January 1 became the consistently observed start of the new year.

Middle Ages: January 1st Abolished In medieval Europe, however, the celebrations accompanying the new year were considered pagan and unchristian like, and in 567 the Council of Tours abolished January 1 as the beginning of the year. At various times and in various places throughout medieval Christian Europe, the new year was celebrated on Dec. 25, the birth of Jesus; March 1; March 25, the Feast of the Annunciation; and Easter.

Gregorian Calendar: January 1st Restored In 1582, the Gregorian calendar reform restored January 1 as new year’s day. Although most Catholic countries adopted the Gregorian calendar almost immediately, it was only gradually adopted among Protestant countries. The British, for example, did not adopt the reformed calendar until 1752. Until then, the British Empire —and their American colonies— still celebrated the new year in March.

National Savings Securities

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Borrowing and Lending in Rupees – Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds

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Date: Dec 24, 2013
Borrowing and Lending in Rupees – Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds
RBI/2013-14/416
A.P. (DIR Series) Circular No.81

December 24, 2013

To
All Authorised Dealer Category – I Banks

Madam / Dear Sir

Borrowing and Lending in Rupees – Investments by persons resident outside India in the tax free, secured, redeemable, non-convertible bonds

Attention of Authorized Dealer Category – I (AD Category – I) banks is invited to the Regulation No. 6 (2) of Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000 (Notification No. FEMA 4/2000-RB dated May 03, 2000) which imposes restrictions on person resident in India who have borrowed in Rupees from a person resident outside India to the effect that such borrowed funds cannot be used for any investment, whether by way of capital or otherwise, in any company or partnership firm or proprietorship concern or any entity, whether incorporated or not, or for relending.

2. On a review, it has been decided to permit such resident entities / companies in India, authorised by the Government of India, to issue tax-free, secured, redeemable, non-convertible bonds in Rupees to persons resident outside India to use such borrowed funds for the following purposes:

(a) for on lending / re-lending to the infrastructure sector; and

(b) for keeping in fixed deposits with banks in India pending utilization by them for permissible end-uses.

3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.

4. Reserve Bank has since amended the subject Regulations accordingly through the Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2013 which have been notified vide Notification No. FEMA.287/2013-RB dated September 17, 2013, vide G.S.R. No. 645(E) dated September 20, 2013, read with Corrigendum dated October 24, 2013 vide G.S.R.No.741(E) dated November 19, 2013.

5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)
Chief General Manager-In-Charge
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