Sharings

 




 




SEBI Notifications

  • 21 Jul 2017 08:00:02 +0530


  • Order in respect of MCX Biz Solutions and its Proprietor Mr. Sayed Sadaq  (20 Jul, 2017 +0530)

    Order in respect of MCX Biz Solutions and its Proprietor Mr. Sayed Sadaq


    Order in respect of Shri Balaji Investments and Others  (20 Jul, 2017 +0530)

    Order in respect of Shri Balaji Investments and Others


    Adjudication Order in the matter of Hansu Control Ltd  (20 Jul, 2017 +0530)

    Adjudication Order in the matter of Hansu Control Ltd


    Adjudication Order in respect of 9 entities in the matter of Symphony Limited  (20 Jul, 2017 +0530)

    Adjudication Order in respect of 9 entities in the matter of Symphony Limited


    Investments by FPIs in Corporate Debt  (20 Jul, 2017 +0530)

    Investments by FPIs in Corporate Debt


    Adjudication Order in respect of Bajrang Das Agarwal in the matter of Vikas Granaries Ltd  (20 Jul, 2017 +0530)

    Adjudication Order in respect of Bajrang Das Agarwal in the matter of Vikas Granaries Ltd


    SEBI signs a bilateral Memorandum of Understanding with The European Securities and Markets Authority  (20 Jul, 2017 +0530)

    SEBI signs a bilateral Memorandum of Understanding with The European Securities and Markets Authority


    Adjudication Order in respect of VRP Financial Services Pvt. Ltd. in the matter Out of City Travel Solutions Ltd.  (20 Jul, 2017 +0530)

    Adjudication Order in respect of VRP Financial Services Pvt. Ltd. in the matter Out of City Travel Solutions Ltd.


    Adjudication Order in respect of Insight Multitrading Pvt. Ltd. in the matter Out of City Travel Solutions Ltd  (20 Jul, 2017 +0530)

    Adjudication Order in respect of Insight Multitrading Pvt. Ltd. in the matter Out of City Travel Solutions Ltd


    Adjudication Order in respect of Lakhi Prasad Kheradi in the matter Out of City Travel Solutions Ltd.  (20 Jul, 2017 +0530)

    Adjudication Order in respect of Lakhi Prasad Kheradi in the matter Out of City Travel Solutions Ltd.


    Order in the matter of Swaraj Automotives Limited  (19 Jul, 2017 +0530)

    Order in the matter of Swaraj Automotives Limited


    Adjudication Order dated July 19, 2017 against Sungold Capital Limited, Smt. Shilpa Amit Kotia, Smt. Shwetha Dhaval Kotia, Shri Ravi Rajiv Kotia and Smt. Seema Rajiv Kotia in the matter of Sungold Capital Limited.  (19 Jul, 2017 +0530)

    Adjudication Order dated July 19, 2017 against Sungold Capital Limited, Smt. Shilpa Amit Kotia, Smt. Shwetha Dhaval Kotia, Shri Ravi Rajiv Kotia and Smt. Seema Rajiv Kotia in the matter of Sungold Capital Limited.


    Settlement order in respect of Kiran Vyapar Limited and Maharaja Shree Umaid Mills Limited in the matter of The Peria Karamalai Tea & Produce Co. Limited  (18 Jul, 2017 +0530)

    Settlement order in respect of Kiran Vyapar Limited and Maharaja Shree Umaid Mills Limited in the matter of The Peria Karamalai Tea & Produce Co. Limited


    Order in the matter of Green Buds Agro Farms Ltd.  (18 Jul, 2017 +0530)

    Order in the matter of Green Buds Agro Farms Ltd.


    Order in the matter of Singhania Media Solutions Private Limited  (18 Jul, 2017 +0530)

    Order in the matter of Singhania Media Solutions Private Limited


    Order in respect of Smt. Sadhana Rai in the matter of Wellesley Corporation Limited  (18 Jul, 2017 +0530)

    Order in respect of Smt. Sadhana Rai in the matter of Wellesley Corporation Limited


    Disclosure of divergence in the asset classification and provisioning by banks  (18 Jul, 2017 +0530)

    Disclosure of divergence in the asset classification and provisioning by banks


    Settlement Order in respect of Enarjee Consultancy and Trading Company LLP in the matter of Gujarat Reclaim & Rubber Products Limited  (17 Jul, 2017 +0530)

    Settlement Order in respect of Enarjee Consultancy and Trading Company LLP in the matter of Gujarat Reclaim & Rubber Products Limited


    Adjudication Order in respect of Shri Umesh Khariwala in the matter of Kolar Biotech Ltd  (17 Jul, 2017 +0530)

    Adjudication Order in respect of Shri Umesh Khariwala in the matter of Kolar Biotech Ltd


    Adjudication Order in respect of 4 entities in the matter of Kansal Fibres Ltd.  (17 Jul, 2017 +0530)

    Adjudication Order in respect of 4 entities in the matter of Kansal Fibres Ltd.


    Adjudication Order in respect of Kansal Fibres Ltd  (17 Jul, 2017 +0530)

    Adjudication Order in respect of Kansal Fibres Ltd


    Appeal No. 2727 of 2017 filed by Mr. Yogeshchandra T. Joshi  (14 Jul, 2017 +0530)

    Appeal No. 2727 of 2017 filed by Mr. Yogeshchandra T. Joshi


    Appeal No. 2726 of 2017 filed by Mr. Chandresh Thakkar  (14 Jul, 2017 +0530)

    Appeal No. 2726 of 2017 filed by Mr. Chandresh Thakkar


    Appeal No. 2725 of 2017 filed by Ms. Anushya Shyamsundar Kasera  (14 Jul, 2017 +0530)

    Appeal No. 2725 of 2017 filed by Ms. Anushya Shyamsundar Kasera


    Appeal No. 2724 of 2017 filed by Mr. Pankaj Jain.  (14 Jul, 2017 +0530)

    Appeal No. 2724 of 2017 filed by Mr. Pankaj Jain.


    Order in respect of Past Directors of MARS Agrofarm Developers Limited  (14 Jul, 2017 +0530)

    Order in respect of Past Directors of MARS Agrofarm Developers Limited


    SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 - last amended on July 13, 2017  (14 Jul, 2017 +0530)

    SEBI (Stock Brokers and Sub-brokers) Regulations, 1992 - last amended on July 13, 2017


    Securities and Exchange Board of India (Issue and Listing of Debt Securities) (Amendment) Regulations, 2017  (13 Jul, 2017 +0530)

    Securities and Exchange Board of India (Issue and Listing of Debt Securities) (Amendment) Regulations, 2017


    SEBI (Employees' Service) (Third Amendment) Regulations, 2017  (13 Jul, 2017 +0530)

    SEBI (Employees' Service) (Third Amendment) Regulations, 2017


    SEBI (Debenture Trustees) (Amendment) Regulations, 2017  (13 Jul, 2017 +0530)

    SEBI (Debenture Trustees) (Amendment) Regulations, 2017


     




    RBI Notifications



  • Master Circular – Detection and Impounding of Counterfeit Notes  (Thu, 20 Jul 2017 17:00:00)

    RBI/2017-18/26
    DCM (FNVD) G – 4/16.01.05/2017-18

    July 20, 2017

    The Chairman/ Managing Director /Chief Executive Officer
    All Banks and
    Director of Treasuries of all States

    Dear Sir / Madam,

    Master Circular – Detection and Impounding of Counterfeit Notes

    Please refer to the Master Circular DCM (FNVD) G-6/16.01.05/2016-17 dated July 20, 2016 consolidating the instructions issued till July 20, 2016, relating to Detection and Impounding of Counterfeit Notes. The Master Circular has since been updated by incorporating the instructions issued till date and has been placed on the RBI website www.rbi.org.in.

    The Master Circular is a compilation of the instructions contained in the circulars issued by RBI on the above subject which are operational as on the date of this Circular.

    Yours faithfully,

    (P Vijaya Kumar)
    Chief General Manager
    Encl: Master Circular


    INDEX

    CONTENTS
    Para No Particulars
    1 Authority to Impound Counterfeit Notes
    2 Detection of counterfeit notes
    3 Impounding of Counterfeit notes
    4 Issue of Receipt to tenderer
    5 Detection of counterfeit notes – Reporting to Police and other bodies
    6 Examination of Banknotes Before Issuing over Counters, Feeding ATMs and Remitting to Issue Offices of RBI
    7 Designating Nodal Bank Officer
    8 Establishment of Forged Notes Vigilance Cell at Head Office of Bank
    9 Provision of Ultra-Violet Lamp and Other Infrastructure
    10 Reporting of Data to RBI
    11 Preservation of Counterfeit Notes Received from Police Authorities
    12 Detection of Counterfeit Notes - Training of Staff
      Annex I
      Annex II
      Annex III
      Annex IV
      Annex V
      Annex VI
      Annex VII

    RESERVE BANK OF INDIA
    DEPARTMENT OF CURRENCY MANAGEMENT
    MASTER CIRCULAR – 2017-18

    Detection and Impounding of Counterfeit Notes

    Para 1- Authority to Impound Counterfeit Notes

    The Counterfeit Notes can be impounded by-

    (i) All Banks
    (ii) All Treasuries and Sub-Treasuries.
    (iii) Issue Offices of Reserve Bank of India.

    Para 2 - Detection of counterfeit notes

    Banknotes tendered over the counter / received directly at the back office / currency chest through bulk tenders should be examined for authenticity through machines.

    No credit to customer’s account is to be given for counterfeit notes, if any, detected in the tender received over the counter or at the back-office / currency chest.

    In no case, the counterfeit notes should be returned to the tenderer or destroyed by the bank branches / treasuries. Failure of the banks to impound counterfeit notes detected at their end will be construed as wilful involvement of the bank concerned in circulating counterfeit notes and penalty will be imposed.

    Para 3 - Impounding of counterfeit notes

    Notes determined as counterfeit shall be stamped as "COUNTERFEIT NOTE" and impounded in the prescribed format (Annex I). Each such impounded note shall be recorded under authentication, in a separate register.

    Para 4 - Issue of Receipt to Tenderer

    When a banknote tendered at the counter of a bank branch/back office and currency chest or treasury is found to be counterfeit, an acknowledgement receipt in the prescribed format (Annex II) must be issued to the tenderer, after stamping the note as in Paragraph 2 ibid. The receipt, in running serial numbers, should be authenticated by the cashier and tenderer. Notice to this effect should be displayed prominently at the offices / branches for information of the public. The receipt is to be issued even in cases where the tenderer is unwilling to countersign it.

    Para 5 - Detection of Counterfeit Notes - Reporting to Police and other bodies

    The following procedure should be followed while reporting incidence of detection of counterfeit note to the Police:

    For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a consolidated report in the prescribed format (Annex III) should be sent by the Nodal Bank Officer to the police authorities or the Nodal Police Station, along with the suspect counterfeit notes, at the end of the month.

    For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, the counterfeit notes should be forwarded by the Nodal Bank Officer to the local police authorities or the Nodal Police Station for investigation by filing FIR in the prescribed format (Annex IV).

    A copy of the monthly consolidated report / FIR shall be sent to the Forged Note Vigilance Cell constituted at the Head Office of the bank (only in the case of banks), and in the case of the treasury, it should be sent to the Issue Office of the Reserve Bank concerned.

    Acknowledgement of the police authorities concerned has to be obtained for note/s forwarded to them both as consolidated monthly statement and FIR. If the counterfeit notes are sent to the police by insured post, acknowledgement of receipt thereof by the police should be invariably obtained and kept on record. A proper follow-up of receipt of acknowledgement from the police authorities is necessary. In case, any difficulty is faced by the Offices / Branches due to reluctance of the police to receive monthly consolidate statement / file FIRs, the matter may be sorted out in consultation with the Nodal Officer of the police authority designated to coordinate matters relating to investigation of counterfeit banknotes cases. The list of Nodal Police Station may be obtained from the respective Regional Office of Reserve Bank.

    In order to facilitate identification of people abetting circulation of counterfeit notes, banks are advised to cover the banking hall / area and counters under CCTV surveillance and recording and preserve the recording.

    Banks should also monitor the patterns / trends of such detection and suspicious trends / patterns should be brought to the notice of RBI /Police authorities immediately.

    The progress made by banks in detection and reporting of counterfeit notes to Police, RBI, etc. and problems thereof, should be discussed regularly in the meetings of various State Level Committees viz. State Level Bankers’ Committee (SLBC), Standing Committee on Currency Management (SCCM), State Level Security Committee (SLSC), etc.

    The data on detection of counterfeit Indian notes at bank branches & treasuries should be included in the monthly Returns forwarded to the Reserve Bank Issue Offices as indicated in para 10 below.

    The definition of 'counterfeiting' in the Indian Penal Code covers currency notes issued by a foreign government authority as well. In case of suspected foreign currency note received for opinion from the police and government agencies, etc., they should be advised to forward the case to the Interpol Wing of the CBI, New Delhi after prior consultation with them.

    The Government of India has framed Investigation of High Quality Counterfeit Indian Currency Offences Rules, 2013 under Unlawful Activities (Prevention) Act (UAPA), 1967. The Third Schedule of the Act defines High Quality Counterfeit Indian Currency Note. Activity of production, smuggling or circulation of High Quality Counterfeit Indian Notes has been brought under the ambit of UAPA, 1967.

    Para 6 - Examination of the Banknotes before Issuing over Counters, Feeding ATMs and Remitting to Issue Offices of the Reserve Bank

    The banks should re-align their cash management in such a manner so as to ensure that cash receipts in the denominations of ₹ 100 and above are not put into re-circulation without the notes being machine processed for authenticity. The said instructions shall be applicable to all bank branches, irrespective of the volume of daily cash receipt. Any non-compliance will be construed as violation of the Directive No.3158/09.39.00 (Policy)/2009-10 dated November 19, 2009 issued by the Reserve Bank.

    In order to obviate complaints regarding receipt of counterfeit notes through ATMs, and to curb circulation of counterfeits, it is imperative to put in place adequate safeguards/checks before loading ATMs with notes. Dispensation of counterfeit notes through the ATMs would be construed as an attempt to circulate the counterfeit notes by the bank concerned.

    Detection of counterfeits in chest remittances is also liable to be construed as wilful involvement of the chest branches concerned in circulating Counterfeit Notes and may attract special investigation by police authorities, and other action like suspending the operation of the chest concerned.

    Penalty at 100% of the notional value of counterfeit notes, in addition to the recovery of loss to the extent of the notional value of such notes, will be imposed under the following circumstances:

    a) When counterfeit notes are detected in the soiled note remittance of the bank.

    b) If counterfeit notes are detected in the currency chest balance of a bank during Inspection / Audit by RBI

    In terms of circular No.DPSS.CO.PD2298/02.10.002/2011-12 dated June 20, 2012, the responsibility of ensuring the quality and genuineness of cash loaded at White Label ATMs would be that of the Sponsor Bank.

    Para 7 - Designating Nodal Bank Officer

    Each bank should designate Nodal Bank Officer, district-wise and notify the same to the concerned Regional Office of RBI and Police Authorities. All cases of reporting of counterfeit note detection as indicated in Para 5 should be through the Nodal Bank Officer. The Nodal Bank Officer will also serve as the contact point for all counterfeit note detection related activities.

    Para 8 - Establishment of Forged Notes Vigilance Cell at Head Office of Bank

    Each bank shall establish at its Head Office, a Forged Note Vigilance Cell to undertake the following functions:

    1. Dissemination of instructions issued by the Reserve Bank on counterfeit notes to bank’s branches. Monitoring the implementation of these instructions. Compilation of data on detection of counterfeit notes, and its submission to Reserve Bank, FIU-IND and National Crime Records Bureau as per extant instructions. Follow-up of cases of counterfeit notes, with police authorities / designated nodal officer.
    2. Sharing of the information thus compiled with bank’s CVO and report to him / her all cases of acceptance / issue of counterfeit notes over the counters.
    3. Conducting periodic surprise checks at currency chests where shortages/ defective /counterfeit notes etc. are detected.
    4. Ensuring operation of Note Sorting Machines of appropriate capacity at all the currency chests / back offices and closely monitoring the detection of Counterfeit Notes and maintaining the record of the same. Ensuring that only properly sorted and machine examined banknotes are fed into the ATMs / issued over the counters and to put in place adequate safeguards, including surprise checks, both during the processing and in transit of notes.

    Forged Note Vigilance Cell shall submit status report on a quarterly basis covering the aforesaid aspects to the Chief General Manager, Department of Currency Management, Reserve Bank of India, Central Office, Amar Building, Fourth Floor, Sir P. M. Road, Fort, Mumbai 400 001/to (mail) and to the Issue office of the Regional office of Reserve Bank under whose jurisdiction the FNV Cell is functioning, within a fortnight from the conclusion of the quarter under report. The said report should be sent by mail. No hard copy need be sent.

    In order to update the record of the addresses of the Forged Note Vigilance Cells, the bank shall furnish by e-mail, in the prescribed format (Annex V), the address etc. particulars to the Reserve Bank every year, as on 1st July. No hard copy need be sent.

    Para 9 - Provision of Ultra-Violet Lamp and Other Infrastructure

    With a view to facilitating the detection of counterfeit notes, all bank branches / identified back offices should be equipped with ultra-violet lamps / other appropriate banknote sorting / detection machines. In addition, all currency chest branches should be equipped with verification, processing and sorting machines and should be used to their optimum capacity. Such machines should conform to the guidelines on 'Note Authentication and Fitness Sorting Parameters' prescribed by the Reserve Bank in May 2010.

    The banks shall maintain a daily record of the notes processed through the Note Sorting machines, including the number of counterfeits detected.

    The banks should also consider providing at least one counting machine (with dual display facility) for public use at the counter.

    Para 10 - Reporting of Data to RBI

    By All Bank branches

    Data on counterfeit notes detected by all the branches of the bank shall be reported in the prescribed format, on a monthly basis. A statement (Annex VI) showing the details of counterfeit notes detected in the bank branches during the month shall be compiled and forwarded to the Issue Office of Reserve Bank concerned so as to reach them by 7th of the next month.

    Under Rule 3 of Prevention of Money Laundering Rules, 2005, Principal Officers of banks are also required to report information on cash transactions where forged notes have been used as genuine note to The Director, FIU-IND, Financial Intelligence Unit- India, 6th Floor, Hotel Samrat, Chanakyapuri, New Delhi-110021, within seven working days, by uploading the information on the FINnet Portal. Similarly, data on FICN detection is also to be uploaded on the web-enabled software of National Crime Records Bureau at their website.

    A “nil “report may be sent in case no counterfeit has been detected during the month.

    Para 11- Preservation of Counterfeit Notes Received from Police Authorities

    All Counterfeit Notes received back from the police authorities/courts may be carefully preserved in the safe custody of the bank and a record thereof be maintained by the branch concerned. Forged Note Vigilance Cell of the bank shall also maintain a branch-wise consolidated record of such Counterfeit Notes.

    These Counterfeit Notes at branches should be subjected to verification on a half-yearly basis (on 31st March and 30th September) by the Officer-in- Charge of the bank office concerned. They should be preserved for a period of three years from the date of receipt from the police authorities.

    They may thereafter be sent to the concerned Issue Office of Reserve Bank of India with full details.

    Counterfeit notes, which are the subject matter of litigation in the court of law should be preserved with the branch concerned for three years after conclusion of the court case.

    Para 12 - Detection of Counterfeit Notes - Training of Staff

    It is necessary to ensure that the cash handling staff in banks and treasuries / sub-treasuries is fully conversant with the security features of a banknote.

    With a view to educating the branch staff on detection of counterfeit notes, the design and security features of all the banknotes shown in Annex VII have been supplied to all the banks / treasuries with instructions to display them prominently at the branches for information of the public. Posters of the 2005-06 series of banknotes have also been supplied to bank branches for display at the branches. Details of security features of the New Design banknotes of ₹ 2000 and ₹ 500 are available at the link https://www.paisaboltahai.rbi.org.in/

    Details of other banknotes are also available under ‘Know your Banknotes’ at that link.

    The Controlling Offices / Training Centers should also organise / conduct training programmes on the security features of banknotes for members of staff to enable detection of counterfeit notes at the point of receipt itself. The banks should ensure that all bank personnel handling cash are trained on features of genuine Indian bank notes. The Reserve Bank will also provide faculty support and training materials.


    Annex I
    (Paragraph 3)

    Each banknote, which, on examination of various security features / parameters, is determined as a counterfeit one, shall be branded with a stamp "COUNTERFEIT BANKNOTE". For this purpose, a stamp with a uniform size of 5 cm x 5 cm with the following inscription may be used.

    COUNTERFEIT BANKNOTE IMPOUNDED

    BANK / TREASURY/ SUB-TREASURY

    BRANCH / CURRENCY CHEST

    SIGNATURE

    DATE


    Annex II
    (Paragraph 4)

    Format – Acknowledgement Receipt to be issued to the tenderer of counterfeit notes

    Name of the Bank / Treasury/ Sub-treasury:
    Address:

    Serial Number of the Receipt:
    Date:

    The note (s) described below received from…………………………….(Name and Address of the tenderer) is/are counterfeit and has/have therefore been impounded and stamped accordingly.

    Serial number of the note deemed as counterfeit Denomination Parameter on which the note is deemed as counterfeit
         

    Total number of counterfeit notes:

    (Signature of the Tenderer)

    (Signature of the counter staff)


    Annex III
    (Paragraph 5)

    Consolidated Monthly Reporting for the month of ________

    1. Name of the Bank / District:

    2. Name and Address of the Nodal Officer:

    3. Detail of counterfeit notes:

    Date of detection Name of branch / currency chest Details of tenderer Denominations / pieces / serial numbers Security features breached
             
             

    4. The counterfeit notes are enclosed.

    5. Kindly acknowledge receipt.

    (Authorised signatory)

    Encl:


    Annex- IV
    (Paragraph 5)

    Name of the Bank:
    District:
    Name and Address of the Nodal Bank Officer:
    Ref. No. Date:

    The Sr. Inspector of Police
    ___________Police Station,

    Dear Sir,

    Detection of counterfeit note/s – Request for investigation

    We enclose the following counterfeit notes detected in our office on ________. The details of the counterfeit notes are furnished below.

    2. As the printing and/or circulation of forged Indian Currency Notes is an offence under Sections 489A to 489E of the Indian Penal Code, we request you to lodge FIR and conduct the necessary investigation. In case it is decided to file criminal proceedings in the court of law, you may first arrange to send the notes to any of the Note Printing Presses, Forensic Science Laboratories etc. in terms of the provisions of Section 292(1) and 292(3) of the Code of Criminal Procedure) for examination. The expert opinion furnished may be produced in the court as evidence under Section 292 of the Criminal Procedure Code. The forged notes may please be returned to us after the completion of the investigation and/or proceedings in the court of law along with the detailed report of the investigation / decision of the court.

    Denominations/ Number of pieces Serial number Notional Value Details of tenderer Name & address of the branch /currency chest where detection took place Bank’s Entry No.
               

    3. The counterfeit notes are enclosed.

    4. Please acknowledge receipt.

    Yours faithfully,

    Authorised Signatory
    Encl :


    Annex V
    (Paragraph 8)

    FORMAT FOR FURNISHING ADDRESS ETC. PARTICULARS OF FORGED NOTE VIGILANCE CELL (FNVC) TO RBI

    (TO BE FURNISHED BY E-MAIL ON 1ST JULY EVERY YEAR)

    REF: MASTER CIRCULAR DATED JULY1, 2012 ISSUED BY RBI

    NAME OF THE BANK ADDRESS OF FNVC (WITH PIN CODE) NAME AND DESIGNATION OF OFFICER-IN-CHARGE TELEPHONE NO (WITH CODE). FAX NO. (WITH CODE) E-mail Address of the FNVC
               

    We note to intimate immediately the changes, if any, in the particulars furnished above

    Name of Authorised Official:
    Designation
    Date:

    NB: The completed format should be transmitted by e-mail, in MS-Excel on the following address-

    E-mail

    (No hard copy need be sent)


    Annex VI
    (Paragraph 10)

    Name of the bank /District:

    Statement showing the details of counterfeit banknotes detected in the
    _______________ during the month of _______________

    A. Details of counterfeit notes detected:

    Name of branch / currency chest Type of detection Denomination-wise Details in pieces     Total pieces
    10 20 50 100 500 Old 500 New 1000 2000  
                         
      FIR                  
      Non-FIR                  
      Pieces of notes processed                  

    B) Details of cases filed with police:

      Pending with Police at the beginning of the month Sent to Police during the month under report Returned by the Police Pending with the Police at the end of the month
    No. of cases        
    No. of pieces        

    NB: Each FIR lodged comprises one case. The total number of forged notes covered by the FIR may be indicated in each of the columns above.

    Forwarded to: -

    1. The General Manager/Deputy General Manager, Reserve Bank of India, Issue

    Department, ____________
    (Signature)

    Name & Designation of the Authorised Official



    Auction of Government of India Dated Securities  (Mon, 17 Jul 2017 18:15:00)

    RBI/2017-18/25
    Ref. No. IDMD/126/08.02.032/2017-18

    July 17, 2017

    All Scheduled Commercial Banks
    All State Co-operative Banks/All Scheduled Primary
    (Urban) Co-operative Banks /All Financial Institutions/
    All Primary Dealers.

    Dear Sir/Madam,

    Auction of Government of India Dated Securities

    Government of India has offered to sell (re-issue) four dated securities for notified amount of Rs 15,000 crore as per the following details:

    Sr No Security Notified Amount
    (in Rs crore)
    GoI Notification Auction Date Settlement date
    1 6.84% GS 2022 3,000 4(7)-W&M/2017
    dated July 17, 2017.
    July 21, 2017
    (Friday)
    July 24, 2017
    (Monday)
    2 6.79% GS 2029 7,000 4(7)-W&M/2017(i)
    dated July 17, 2017.
    3 6.57% GS 2033 2,000 4(7)-W&M/2017(ii)
    dated July 17, 2017.
    4 6.62% GS 2051 3,000 4(7)-W&M/2017(iii)
    dated July 17, 2017.
      Total 15,000      

    The auction for securities will be price based using multiple price method. The Reserve Bank of India at Mumbai will conduct the auctions. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the notifications (copies enclosed), which should be read along with the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    2. We wish to draw your attention, in particular, to the following:

    (i) The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs 10,000/- thereafter.

    (ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities. Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. Allotment under the non-competitive segment to the bank or PD will be at the weighted average rate of yield/price that will emerge in the auction on the basis of the competitive bidding.

    (iii) Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 21, 2017. Bids in physical form will not be accepted except in extraordinary circumstances. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    (iv) An investor can submit more than one competitive bid at different prices in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system. However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

    (v) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

    (vi) The result of the auctions will be announced on July 21, 2017 (Friday). and payment by successful bidders will be on July 24, 2017 (Monday).

    (vii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

    (viii) The Government Stocks will be repaid at par on December 19, 2022; December 26, 2029; December 5, 2033, and November 28, 2051 respectively.

    (ix) The Stocks will qualify for the ready forward facility.

    (x) The Stocks will be eligible for “When Issued” trading during the period July 18 - July 21, 2017, in accordance with guidelines on ‘When Issued’ transactions in Central Government Securities issued by Reserve Bank of India vide circular No.RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

    Yours faithfully

    (Latha Vishwanath)
    General Manager



    Auction for Sale (Re-issue) of 6.84 per cent Government Stock 2022  (Mon, 17 Jul 2017 17:50:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated July 17, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of 6.84 per cent Government Stock 2022

    F.No.4(7) W&M/2017: Government of India hereby notifies sale (re-issue) of ‘6.84 percent Government Stock 2022’ (hereinafter called 'the Stock') for an aggregate amount of ₹ 3,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Method of Issue
    2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.

    Allotment to Non-competitive Bidders
    3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on July 21, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 21, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Tenure
    6. The Government Stock will be of ‘6 years, 3 months and 7 days’ tenure commencing from September 12, 2016. The Stock will be repaid at par on December 19, 2022.

    Date of issue and payment for the stock
    7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on July 21, 2017. The payment by successful bidders will be on July 24, 2017 i.e. the date of re- issue. The payment of the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e. June 19, 2017 to July 23, 2017.

    Interest
    8. Interest at the rate of 6.84 per cent per annum will accrue on the nominal value of the Stock from date of last coupon payment and will be paid half-yearly on December 19 and June 19.

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India



    Auction for Sale (Re-issue) of 6.79 per cent Government Stock 2029  (Mon, 17 Jul 2017 17:40:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated July 17, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of 6.79% Government Stock 2029

    F. No.4 (7) W&M/2017(i): Government of India hereby notifies sale (re-issue) of 6.79 percent Government Stock 2029 for an aggregate amount of ₹ 7,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Method of Issue
    2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.

    Allotment to Non-competitive Bidders
    3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on July 21, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 21, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Tenure
    6. The Government Stock will be of ’13 year’ tenure commencing from December 26, 2016. The Stock will be repaid at par on December 26, 2029.

    Date of issue and payment for the stock
    7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on July 21, 2017. The payment by successful bidders will be on July 24, 2017 i.e. the date of re-issue. The payment of the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e. June 26, 2017 to July 23, 2017.

    Interest
    8. Interest at the rate of 6.79 per cent per annum will accrue on the nominal value of the Stock from the date of last coupon payment and will be paid half-yearly on December 26 and June 26.

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India



    Auction for Sale (Re-issue) of 6.57 per cent Government Stock 2033  (Mon, 17 Jul 2017 17:35:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated July 17, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of 6.57% Government Stock 2033

    F. No.4 (7) W&M/2017(ii): Government of India hereby notifies sale (re-issue) 6.57 percent Government Stock 2033 of for an aggregate amount of ₹ 2,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Method of Issue
    2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.

    Allotment to Non-competitive Bidders
    3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on July 21, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 21, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Tenure
    6. The Government Stock will be of ’17 year’ tenure commencing from December 05, 2016. The Stock will be repaid at par on December 05, 2033.

    Date of issue and payment for the stock
    7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on July 21, 2017. The payment by successful bidders will be on July 24, 2017 i.e. the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of the last coupon payment i.e. June 5, 2017 to July 23, 2017.

    Interest
    8. Interest at the rate of 6.57 per cent per annum will accrue on the nominal value of the Stock from the date of coupon payment and will be paid half-yearly on December 5 and June 5.

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India



    Auction for Sale (Re-issue) of 6.62 per cent Government Stock 2051  (Mon, 17 Jul 2017 17:30:00)

    Government of India
    Ministry of Finance
    Department of Economic Affairs
    Budget Division

    New Delhi, dated July 17, 2017

    NOTIFICATION

    Auction for Sale (Re-issue) of 6.62 per cent Government Stock 2051

    F. No.4 (2) W&M/2017(iii): Government of India hereby notifies sale of 6.62 per cent Government Stock 2051 (hereinafter called “The Stock”) for an aggregate amount of ₹ 3,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

    Method of Issue
    2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using multiple price auction method.

    Allotment to Non-competitive Bidders
    3. The Government Stock up to 5% of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).

    Place and date of auction
    4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on July 21, 2017. Bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on July 21, 2017. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

    When Issued Trading
    5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.

    Tenure
    6. The Government Stock will be of ’35 year’ tenure commencing from November 28, 2016. The Stock will be repaid at par on November 28, 2051.

    Date of Issue and Payment for the Stock
    7. The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on July 21, 2017. The payment by successful bidders will be on July 24, 2017 i.e. the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e. May 28, 2017 to July 23, 2017.

    Interest
    8. Interest at the rate of 6.62 per cent per annum will accrue on the nominal value of the Stock from the date of last coupon payment and will be paid half yearly on November 28 and May 28.

    By Order of the President of India

    (Prashant Goyal)
    Joint Secretary to the Government of India



    Recording of Details of Transactions in Passbook/Statement of Account by Co-operative Banks  (Thu, 13 Jul 2017 17:00:00)

    RBI/2017-18/24
    DCBR.BPD.(PCB/RCB).Cir.No.02/12.05.001/2017-18

    July 13, 2017

    The Chief Executive Officer
    All Primary (Urban) Co-operative Banks/
    All State Co-operative Banks/
    All District Central Co-operative Banks

    Dear Sir/Madam,

    Recording of Details of Transactions in Passbook/Statement of Account by Co-operative Banks

    Please refer to our circular UBD.CO.BPD.(PCB).No.18/12.05.001/2010-11 dated October 26, 2010 and para 4.6.3 of Annex to our circular RPCD.CO.RCB.BC.No.36/07.51.010/2014-15 dated October 22, 2014, advising co-operative banks to avoid inscrutable entries in passbooks / statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks / statements of account with a view to avoiding inconvenience to depositors.

    2. It has come to our notice that many banks still do not provide adequate details of the transactions in the passbooks and / or statements of account to enable the account holders to cross-check them. In the interest of better customer service, it has been decided that banks shall at a minimum provide the relevant details in respect of entries in the accounts as indicated in the Annex. The list of the transactions mentioned in the Annex is indicative and not exhaustive.

    3. Co-operative Banks shall also incorporate information about ‘deposit insurance cover’ along with the limit of coverage, subject to change from time to time, upfront in the passbooks.

    Yours faithfully

    (Neeraj Nigam)
    Chief General Manager


    Annex

    Illustrative narrations to be recorded in the Statement of Account / Passbook

    I. Debit entries
    a. Payment to third parties (i) Name of the payee

    (ii) Mode - Transfer, clearing, inter-branch, RTGS/ NEFT, cash, cheque (number)

    (iii) Name of the transferee bank, if the payment is made through clearing/inter-branch transaction/ RTGS/NEFT
    b. Payment to 'self' (i) Indicate "Self" as payee

    (ii) Name of the ATM/branch if the payment is made by ATM / another branch
    c. Issuance of drafts / pay orders / any other payment instrument  (i) Name of the payee (in brief / acronym)

    (ii) Name of the drawee bank/branch/service branch
    d. Bank charges (i) Nature of the charges - fee/commission/fine/ penalty etc.

    (ii) Reasons for the charges, in brief - e.g. return of cheque (number), commission/ fee on draft issued /remittance (draft number), cheque collection charge (number), issuance of cheque book, SMS alerts, ATM fees, additional cash withdrawals, etc.
    e. Reversal of wrong credits  (i) Date of the original credit entry reversed

    (ii) Reasons for reversal, in brief
    f. Recovery of installments of a loan/interest on loan (i) Loan account number

    (ii) Name of the Loan account holder
    g. Creation of fixed deposit/ recurring deposit (i) Fixed Deposit/Recurring Deposit Account/Receipt number

    (ii) Name of the Fixed Deposit/Recurring Deposit Account holder
    h. Transactions at POS (i) Transaction date, time and identification number

    (ii) Location of the POS
    i. Any other (i) Provide adequate details on the same lines as mentioned above.
    Note: In case of single debit in account with multiple credits, the payee name/account number/branch/bank shall not be recorded. However, the fact of "multiple payees" will be indicated.

    II. Credit Entries
      a. Cash deposit (i) Indicate that it is a "cash deposit"

    (ii) Name of the depositor - self/third party
    b. Receipt from third parties (i) Name of the remitter/ transferor

    (ii) Mode - Transfer, inter-branch, RTGS/NEFT, cash, etc.

    (iii) Name of the transferor bank, if the payment is received through inter-branch transaction, RTGS /NEFT
    c. Proceeds of clearing/ collection / draft etc. paid (i) Name of the draft issuing bank

    (ii) Date and number of the cheque/draft
    d. Reversal of wrong debits (including charges) (i) Date of the original debit entry reversed

    (ii) Reasons for reversal, in brief
    e. Interest on deposits (i) Mention if it is interest paid on the Savings Account/Fixed Deposit

    (ii) Mention the respective Fixed Deposit Account/ Receipt Number if it is interest paid on Fixed Deposit(s)
    f. Maturity proceeds of fixed deposit / recurring deposit (i) Name of the Fixed Deposit/Recurring Deposit holder

    (ii) Fixed Deposit/Recurring Deposit account/receipt number

    (iii) Date of maturity
    g. Loan proceeds (i) Loan account number
    h. Any other (i) Provide adequate details



    Financial Literacy by FLCs (Financial Literacy Centres) and rural branches - Revision in funding limits, Audio-visual content and provision of hand held projectors  (Thu, 13 Jul 2017 17:00:00)

    RBI/2017-18/23
    FIDD.FLC.BC.No.11/12.01.018/2017-18

    July 13, 2017

    To Chairman/MD & CEO
    Scheduled Commercial Banks
    (Including RRBs & Small Finance Banks)

    Dear Sir/Madam,

    Financial Literacy by FLCs (Financial Literacy Centres) and rural branches - Revision in funding limits, Audio-visual content and provision of hand held projectors

    Please refer to our circular FIDD.FLC.BC.No.22/12.01.018/2016-17 dated March 2, 2017 on policy review of guidelines for FLCs and rural branches of banks. In terms of this circular, banks were advised that FLCs and rural branches are eligible for funding support from the Financial Inclusion Fund for the financial literacy camps to the extent of 60% of the expenditure of the camp subject to a maximum of ₹ 15,000/- per camp.

    2. On a review, the FIF Advisory Board has revised the funding support available to banks to the extent of 60% of the expenditure of the camp subject to a maximum of ₹ 5,000/- per camp. For details on funding, banks may refer to circular No. 107/DFIBT-24/2017 dated May 4, 2017 issued by NABARD.

    3. Audio visual content and provision of handheld projectors: In order to improve the effectiveness of the financial literacy camps, it has been decided to encourage FLCs and rural branches of banks to use hand held projectors to show Audio-visuals and posters on financial awareness messages. Funding for handheld projectors and speakers would be provided from FIF to the extent of 50% of the cost incurred on purchase of hand held projector and portable speaker (both put together) subject to a maximum of ₹ 5000 per rural branch / FLC on a reimbursement basis. For details on funding, banks may refer to circular No. 105/DFIBT-22/2017 dated May 4, 2017 issued by NABARD.

    4. Further, the National Centre for Financial Education (NCFE) supported by the financial sector regulators has prepared audio visuals on the Financial Awareness Messages provided by RBI. The First Audio-visual covers the basic financial awareness messages such as address proof declaration under KYC norms, Use of Business correspondents, Electronic payment systems NEFT/RTGS and not falling prey to fictitious emails/calls and Ponzi schemes. The Second Audio-visual explains the process of using the Unified Payment Interface through BHIM and the third audio visual explains the various ways of going digital and cashless. FLCs and rural branches of banks are advised to use the audiovisuals while conducting financial literacy camps.

    Yours faithfully,

    (Uma Shankar)
    Chief General Manager-in-Charge



    Interest rates for Small Savings Schemes  (Thu, 13 Jul 2017 17:00:00)

    RBI/2017-18/22
    DGBA.GBD. 69/15.02.005/2017-18

    July 13, 2017

    The Chairman/Chief Executive Officer
    Agency Banks handling Public Provident Fund, Kisan Vikas Patra- 2014,
    Sukanya Samriddhi Account, Senior Citizen Savings Scheme-2004

    Dear Sir

    Interest rates for Small Savings Schemes

    Please refer to our circular DGBA.GAD.2618/15.02.005/2016-17 dated April 6, 2017 on the above subject. The Government of India, had vide their Office Memorandum (OM) No.F.No.01/04/2016–NS dated June 30, 2017 advised the rate of interest on various small savings schemes for the second quarter of the financial year 2017-18 (copy enclosed).

    2. The contents of this circular may be brought to the notice of the branches of your bank operating Government Small Saving Schemes for necessary action. These should also be displayed on the notice boards of your branches for information of the subscribers to these Schemes.

    Yours faithfully

    (V. S. Prajish)
    Assistant General Manager
    Encl : as above



    Investment in plant and machinery for the purpose of classification as Micro, Small and Medium Enterprises – documents to be relied upon  (Thu, 13 Jul 2017 17:00:00)

    RBI/2017-18/21
    FIDD.MSME & NFS.BC.No.10/06.02.31/2017-18

    July 13, 2017

    All Scheduled Commercial Banks
    (Excluding Regional Rural Banks)

    Dear Sir / Madam,

    Investment in plant and machinery for the purpose of classification as Micro, Small and Medium Enterprises – documents to be relied upon

    Please refer to our Master Direction FIDD.MSME&NFS.3/06.02.31/2016-17 dated July 21, 2016 on ‘Lending to Micro, Small & Medium Enterprises (MSME) Sector’ together with notification No. S.O. 1722(E) dated October 5, 2006 issued by Ministry of MSME, GoI, New Delhi. In terms of para 2 of the said notification, while calculating the investment in plant and machinery, the original price thereof, shall be taken into account, irrespective of whether the plant and machinery are new or second hand.

    2. In this regard, Ministry of MSME, GoI, vide their Office Memorandum (OM) F. No. 12(4)/2017-SME dated March 8, 2017, have clarified that for ascertaining the investment in plant and machinery for classification of an enterprises as Micro, Small and Medium, the following documents could be relied upon:

    (i) A copy of the invoice of the purchase of plant and machinery; or

    (ii) Gross block for investment in plant and machinery as shown in the audited accounts; or

    (iii) A certificate issued by a Chartered Accountant regarding purchase price of plant and machinery.

    3. Further, the Ministry has clarified that for the investment in plant and machinery for the purpose of classification of an enterprise as Micro, Small or Medium, the purchase value of the plant and machinery is to be reckoned and not the book value (purchase value minus depreciation).

    4. In terms of OM F. No. 12(4)/2017 – SME dated May 31, 2017, issued by the Ministry, the effective date for the above provision would be from the date MSMED Act, 2006 came into force and not prospectively. Further, the above provisions would be applicable to section 7 (1) (a) and section 7 (1) (b) of the MSMED Act, 2006 i.e. enterprises engaged in manufacturing of goods and rendering of services as well.

    Yours faithfully

    (Uma Shankar)
    Chief General Manager-In- Charge