In the latest advisory issued yesterday, Department of Foreign Affairs and Trade (DFAT) said, "Indian authorities have replaced withdrawn 500 and 1,000 notes with new 500 and 2,000 rupee notes slowly entering circulation."
The Reserve Bank of India has tweaked extant guidelines on ownership and shareholding structure for private sector banks.
In a lecture titled 'Why Banks?' as part of the Marshall Lecture 2015-16 series at Cambridge University yesterday, Rajan said greater demand on banks to hold capital in the post financial crisis scenario has come at a cost.
Included among the suspended services are liquidation of spot positions for clients and some other services related to cross-border, onshore and offshore businesses, the sources said.
Top officials said the regulator is closely looking at possible instances where share prices of companies listed in the domestic stock market are being manipulated through offshore centres of foreign banks.
Citi India Chief Financial Officer Niraj Parekh expressed satisfaction at the performance saying, it comes in spite of the "uneven" and "unpredictable" growth scenario in the economy.
Reserve Bank of India had cut the repo rate by 0.25 percent on January 15 and further by 0.25 percent on March 4.
The Rajya Sabha MP said he had written to the Prime Minster but had received no replies to his complaint.
The report is a recommendation given by a working group, so it is not yet the law. The priority sector used to take away 40 percent of the total loans given and there is a status quo over that.
Jaitley said that the list will be given to the Supreme Court in a sealed envelope. However, he refrained from commenting whether the government is ready open to make the names public.
Government will make public names of only those people against whom there is a prosecutable case in connection with tax evasion through offshore accounts, Finance Minister Arun Jaitley said today, amid the Congress asking for disclosure of all names of black money holders.
After a consultation launched in February this year, the Bank of England has set out stringent limits for branches of foreign banks operating in the United Kingdom. Several Indian banks will feel the impact of these changes, reports CNBC-TV18‘s Sanjay Suri.
The RBI said it was receiving queries from foreign banks regarding capital gains tax and incidence of stamp duty on conversion of existing foreign bank branches into wholly owned subsidiaries.
HSBC India has sounded evasive about converting itself into a locally incorporated entity, saying that changing the holding structure will not have a bearing on its broader strategy of doing business in the country.
The income tax has already notified that the transition to a subsidiary will be neutral on capital gains tax. But bankers say there are yet to receive any forbearance on stamp duty, which is a state subject.
If subsidiaries are set up and the foreign banks want to give competition to Indian banks there are challenges because it is not going to be that easy, says K Venkataraman, MD & CEO, Karur Vysya Bank.
In an interview to CNBC-TV18, Robin Roy, Assoc Dir Fin Services PwC India gave his reading of the guidelines and his outlook for the sector. He says many big banks are interested in setting up their arms in India.
The new framework requires foreign banks to create separate legal entities, having their own capital base and local board of directors.
According to its commitments to the WTO, India allows 12 new foreign bank branches in a year. In India, there were 43 foreign banks operating through a network of 333 branches as of March 2013. Also, 47 foreign banks have representative offices in the country.
The RBI has been seeking to incentivise foreign banks that currently exist in India as branches to become wholly owned subsidiaries. But the move has been stuck because of the huge tax payments involved.
With RBI governor Raghuram Rajan talking about a bigger role for foreign banks, experts feel his condition on reciprocity may be a huge hurdle. They don't think the discussion should just be limited to these banks taking over smaller Indian banks.
In an attempt to resurrect the practice of drawing dollars from NRIs, foreign banks will provide upfront financing for wealthy NRIs and attract them to place bulky dollar deposits.
Chief economic adviser Raghuram Rajan said that all the options were on the table to support the rupee and added that all bankers had shared their feedback with him on supporting the rupee.
The Reserve Bank of India has mandated foreign banks limit themselves to placing hedging-related trades on onshore forward markets on behalf of clients, and not using existing client positions to make other trades
The rupee off the day's low of 57, the lowest since June 28, 2012, and trading at 56.85/86, weaker than its previous close of 56.7250/7350.