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TMI BlogMonthly Monetary Policy StatementX X X X Extracts X X X X X X X X Extracts X X X X ..... Monthly Monetary Policy Statement - By: - Deepak Aggarwal - Other Topics - Dated:- 7-2-2015 - - Monthly Monetary Policy Statement- 2014-15, dated 03 rd Feb.2015 Important takeaways Reduce the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their NDTL w.e.f. February 7, 2015. Replace the export credit re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finance (ECR) facility with the provision of system level liquidity w.e.f. February 7, 2015. Limit of Foreign exchange remittance under the Liberalised Remittance Scheme (LRS) has increased up to USD 2, 50,000 per person per year including current account transactions. Earlier limit was USD 1, 25,000. Now FPIs will be required to invest in debt market in India with a minimum residual maturit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of three years. Earlier this limitation was for Government securities only. Now FPIs will not be allowed to invest in short maturity liquid/ money market mutual fund schemes. Now stock exchanges are permitted to introduce cash settled Interest Rate Futures (IRF) contracts on 5-7 years and 13-15 years in money and Government securities markets. Earlier IRF contract on 10 year government of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia security was issued and permitted. Now domestic entities and FPIS are allowed to take foreign currency positions in the USD-INR pair up to USD 15 million per exchange without having any underlying exposure in the exchange traded currency derivatives (ETCD) market. They are also permitted to have foreign currency position in EUR-INR, GBP-INR and JPY-INR pairs, all put together up to USD 5 mil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lion equivalent per exchange without having any underlying exposure. Those who want a position exceeding the above limits, required a underlying exposure. Domestic participants who are importers of goods and services, hedging positions in ETCD market will be determined as 100 per cent of the higher of the (i) average of their last three years imports turnover or (ii) the previous year s turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Earlier this limit was 50 per cent.. In case of large projects, to accommodate changes in ownership and management and due to this delay in date of commencement of commercial operations (DCCO), it is being decided to allow flexibility by allowing a extension of DCCO in case of projects where change in ownership take place. Discussions are taken place with SEBI for waiver from ICDR and SA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST regulations in some specific circumstances in case of conversion of debt of listed companies into equity by banking companies. Banks are now allowed to reverse the excess provision on sale of non-performing assets (NPAs) in case cash received from sale is higher than the net book value of the asset, even in respect to NPAs sold prior 26 th Feb.2014. Banks are now permitted to allow non-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allable deposits. Differential rate of interest can be offered on callable or non-callable deposits. Earlier differential rate of interest was allowed only on the basis of some specified amount limit i.e. one crore only. External Advisory Committees (EACs) formed to review applications received for payment banks and small finance banks in response to guidelines issued in this respect dated 27 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Nov.2014. - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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