Incorporation of company

Delhi I Mumbai I Pune I Kanpur
WEEKLY UPDATES
OCTOBER 7TH – 12TH, 2013
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
SEBI UPDATES
RBI UPDATES
SERVICE TAX UPDATES
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur


CUSTOMS UPDATES
DGFT UPDATES
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
SEBI UPDATES
CIR/MIRSD/ 09/ 2013
1. All Recognized Stock Exchanges
2. Stock Brokers through Recognized Stock Exchanges
3. Depository Participants through Depositories
4. Association of Mutual Funds in India
5. Mutual funds through AMFI
6. Portfolio Managers
7. KYC Registration Agencies (KRAs)
8. Alternative Investment Funds (AIFs)
9. Collective Investment Schemes (CIS)
10. Custodians

Dear Sir/ Madam,
Sub: Know Your Client Requirements

1. Please refer to SEBI circular No. CIR/MIRSD/ 09 /2012 dated August 13, 2012, advising that Aadhaar Letter issued by UIDAI would be admissible as Proof of Address in addition to it being recognized as Proof of Identity. 2. In consultation with Unique Identification Authority of India (UIDAI) and the market participants, it has now been decided to accept e-KYC service launched by UIDAI also, as a valid process for KYC verification. The information containing relevant client details and photograph made available from UIDAI as a result of e-KYC process shall be treated as sufficient proof of Identity and Address of the client. However, the client shall have to authorize the intermediary to access his data through UIDAI system. 3. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets. Yours faithfully, A. S. Mithwani
Deputy General Manager
Email: [email protected]
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
RBI UPDATES
RBI/2013-14/313 RPCD.RCB.BC.No. 42/07.51.014/2013-14 The Chairmen / CEOs All State and Central Cooperative Banks Dear Sir / Madam, Unclaimed Deposits/Inoperative Accounts in banks –
Treatment of certain savings bank accounts opened for credit of Scholarship
amounts and credit of Direct Benefit Transfer under Government Schemes
Please refer to ouron unclaimed deposits / inoperative accounts wherein State and Central Cooperative Banks were advised that a savings or current account should be treated as inoperative/dormant if there are no transactions in the account for over a period of two years and the safeguards to be adopted in dealing with such accounts. 2. State and Central Governments have expressed difficulties in crediting cheques / Direct Benefit Transfer / Electronic Benefit Transfer / Scholarships for students, etc. into Zero Balance Accounts and accounts opened for the beneficiaries under various Central/State Government schemes but had been classified as dormant/inoperative due to non-operation of the account for over two years. 3. Keeping the above in view, State and Central Cooperative Banks are advised that they may take appropriate steps including allotment of a different 'product code' in their CBS to all such accounts opened by them so that the stipulation of inoperative / dormant account due to non-operation does not apply while crediting proceeds as mentioned in para 2 above. 4. In order to reduce the risk of fraud etc., in such accounts, while allowing operations in these accounts, due diligence should be exercised by ensuring the genuineness of transactions, verification of signature and identity, etc. However, it has to be ensured that the customer is not inconvenienced in any manner. Yours faithfully, (A.Udgata) Principal Chief General Manager Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur

RBI/2013-2014/314
FMD.MOAG. No.88/01.18.001/2013-14
October 07, 2013 All Scheduled Commercial Banks (excluding RRBs) Marginal Standing Facility
As announced today, it has been decided to reduce the Marginal Standing Facility (MSF) rate by 50 basis points
from 9.50 per cent to 9.00 per cent with immediate effect.
2. All other terms and conditions of the current MSF scheme will remain unchanged. 3. Please acknowledge receipt. Principal Chief General Manager Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
RBI/2013-14/315 Ref:DBOD.No.Ret.BC. 58/12.01.001/2013-14 October 07, 2013 All Scheduled Commercial Banks & Local Area Banks Bank Rate
As announced in the the Bank Rate stands adjusted by 50 basis points from 9.5 per cent to 9.0 per cent with effect from October 07, 2013. 2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annex. 3. Please acknowledge receipt. Yours faithfully (Sudha Damodar) Chief General Manager Penal Interest Rates which are linked to the Bank Rate
Existing Rate
Revised Rate
(Effective from October 07, 2013)
Penal interest rates on Bank Rate plus 3.0 percentage points (12.50 Bank Rate plus 3.0 percentage shortfalls in reserve per cent) or Bank Rate plus 5.0 percentage points (12.00 per cent) or Bank requirements (depending points (14.50 per cent). Rate plus 5.0 percentage points on duration of shortfalls). (14.00 per cent). Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur

RBI/2013-2014/316
UBD.BPD.(PCB).Cir.No. 28 /16.11.00/2013-14
The Chief Executive Officer All Primary (Urban) Co-operative Banks Madam / Dear Sir, Revision in Bank Rate
Please refer to our circularon the captioned subject. As announced in the the Bank Rate stands adjusted by 50 basis points from 9.5 per cent to 9.0 per cent with effect from October 7, 2013. 2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex. The interest rate on refinance for SSI under Section 17(2)(bb) read with Section 17(4)(c) of the Reserve Bank of India Act, 1934, also stands revised to 9.0 per cent with effect from October 7, 2013 Yours faithfully, (A.K.Bera) Principal Chief General Manager Penal Interest Rates which are linked to the Bank Rate
Revised Rate
Existing Rate
(Effective from October 7, 2013)
Penal interest rates on Bank Rate plus 3.0 percentage Bank Rate plus 3.0 percentage points shortfalls in reserve points (12.50 per cent) or Bank (12.00 per cent) or Bank Rate plus 5.0 requirements (depending on Rate plus 5.0 percentage points percentage points (14.00 per cent). duration of shortfalls). (14.50 per cent). Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
RBI/2013-14/317 RPCD.CO.RRB.RCB.No. 44/03.05.33/2013-14 October 08, 2013 The Chairmen/Chief Executive Officers, All Regional Rural Banks / State and Central Co-operative Banks Bank Rate
As announced in the the Bank Rate stands adjusted by 50 basis points from 9.5 per cent to 9.0 per cent with effect from October 07, 2013. 2. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in Annex. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully (A. Udgata) Principal Chief General Manager Penal Interest Rates which are linked to the Bank Rate
Existing Rate
Revised Rate
(Effective from October 07, 2013)
Penal interest rates on shortfalls in Bank Rate plus 3.0 percentage Bank Rate plus 3.0 percentage points (12.00 reserve requirements (depending points (12.50 per cent) or Bank per cent) or Bank Rate plus 5.0 percentage on duration of shortfalls). Rate plus 5.0 percentage points (14.00 per cent). points (14.50 per cent). Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur

RBI/2013-14/319
FMD.MOAG. No. 89 /01.01.009/2013-14
October 08, 2013 All Scheduled Commercial Banks (excluding RRBs) Term Repo under Liquidity Adjustment Facility
As announced yesterday, it has been decided to conduct auctions for term repos of 7-day and 14-day tenor for a notified amount equivalent to 0.25 per cent of net demand and time liabilities (NDTL) of the banking system through variable rate auction mechanism. The first term repo auction with a tenor of seven days would be conducted on October 11, 2013 (Friday). Thereafter, auctions for term repo of 14 days and 7 days tenor will follow on alternate Fridays subject to conditions set out in the Annexure. 2. The detailed operational guidelines for term repo auction are given in the Annexure. 3. Please acknowledge receipt. Principal Chief General Manager Annexure
Term Repo under the Liquidity Adjustment Facility-Operational Guidelines
 Term Repo under the Liquidity Adjustment Facility (LAF) for 14 days and 7 days tenors will be introduced for banks (scheduled commercial banks other than RRBs) in addition to the existing daily LAF (repo and reverse repo) and MSF.  Term repo auctions will be conducted on CBS (E-KUBER) platform through electronic bidding as is done in the case of OMO auctions.  The total amount of liquidity injected through term repos would be limited to 0.25 per cent of NDTL of the banking system.  While the 14 day term repo of tenor would be conducted every reporting Friday, the 7 day term repo would be conducted on every non-reporting Friday.  In case the notified amount for the 14-day term repo is not fully subscribed, a 7-day term repo would be conducted on the following Friday for the remaining un-subscribed amount. In case of full subscription in the 14-day term repo, there will be no 7 day term repo auction on the following Friday.  Banks would be required to place their bids with the term repo rate that they are willing to pay to RBI for the tenor of the repo expressed in percentage terms up to two decimal places. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
 Once the bidding time is over, all the bids would be arranged in descending order of the term repo rates quoted and the cut-off rate would be arrived at the rate corresponding to the notified amount of the auction. Successful bidders would be those who have placed their bids at or above the cut-off rate. All bids lower than the cut-off rate would be rejected. RBI will, however, reserve the right to (i) inject marginally higher amount than the notified amount due to rounding effects and (ii) inject less than the notified amount without assigning any reasons therefor.  No bids would be accepted at or below the prevailing Repo Rate under LAF.  On the day prior to the auction, RBI will announce the amount to be auctioned under term repo along with its tenor. The minimum bid amount for the auction would be Rupees one crore and multiples thereof. The allotment would be in multiples of Rupees one crore. Term repo auctions would be conducted on Fridays between 2.30 PM - 3.00 PM. In case Friday falls on a holiday, the auction would take place on the preceding working day at Mumbai.  There will be provision of pro-rata allotment should there be more than one successful bid at the cut-off  There will be no restriction on the maximum amount of bidding by individual bidders under term repo.  The reversal of term repo would take place at the „start of day‟ on the day of completion of the term.  The eligible collateral for term repo and the applicable haircuts will remain the same as daily LAF repo  All other terms and conditions as applicable to LAF operations will also be made applicable to term repo mutatis mutandis. These conditions will, however, be subject to review on a periodic basis.  The first such term repo auction will be conducted on October 11, 2013 (Friday) for 7 days. The notified amount for the auction would be communicated to the market on October 10, 2013 (Thursday).  As hitherto, daily LAF for individual banks would be restricted to a certain percentage of their NDTL outstanding as on the last Friday of the second preceding fortnight (currently it is at 0.50 per cent). Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur

RBI/2013-14/318
UBD CO BPD (PCB) MC. No.18/09.09.001/2013-14
The Chief Executive Officer All Primary (Urban) Co-operative Banks Dear Sir / Madam, Revised guidelines on lending to Priority Sector for UCBs
Please refer to our circularand the amendments thereto issued from time to time on the captioned subject, consolidated in It may be recalled that the Reserve Bank of India had set up a Committee to re-examine the existing classification and suggest revised guidelines with regard to Priority Sector lending classification and related issues (Chairman: Shri M.V. Nair). The recommendations of the Committee have been examined based on the interface with various stakeholders and in the light of the comments / suggestions received from Government of India, banks, financial institutions, Non-Banking Financial Companies, Associations of industries, members of public and Indian Banks' Association it has been decided to revise certain existing guidelines (as per Annex) in supersession of the guidelines mentioned in the Master Circular. 2. The revised guidelines will be operational with immediate effect. Priority sector loans sanctioned under the guidelines issued prior to the date of this circular will continue to be classified under priority sector till maturity / renewal. Yours faithfully, (A.K. Bera) Principal Chief General Manager Revised guidelines on lending to priority sector
I. Categories under priority sector
(i) Agriculture (ii) Micro and Small Enterprises (iii) Education Loans (iv) Housing Loans (v) Others Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
The eligible activities under the above categories are specified in paragraph III
II. Targets /Sub-targets for Priority sector
The targets under priority sector lending would be linked to Adjusted Net Bank Credit (ANBC) (total loans and advance minus bills rediscounted with RBI and other approved Financial Institutions plus investments made after August 30, 2007 in non-SLR bonds under HTM category) or Credit Equivalent amount of Off-Balance Sheet Exposures (OBE), whichever is higher, as on March 31 of the previous year. For the purpose of calculation of credit equivalent of off-balance sheet exposures, banks may use current exposure method. Inter-bank exposures including inter-bank off-balance sheet exposures will not be taken into account for the purpose of priority sector lending targets / sub-targets. The targets and sub-targets set under priority sector lending for UCBs are furnished below. The stipulation regarding priority sector lending is not applicable to the Salary Earners' Banks. Total Priority Sector
40 percent of Adjusted Net Bank Credit [ANBC defined in sub paragraph (i) above] or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher. Total agriculture
Micro & Small Enterprises
(i) Advances to micro and small enterprises sector will be reckoned in computing achievement under the overall priority sector target of 40 percent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher. (ii) 40 percent of total advances to micro and small enterprises sector should go to Micro (manufacturing) enterprises having investment in plant and machinery up to 10 lakh and micro (service) enterprises having investment in equipment up to 4 lakh; (iii) 20 percent of total advances to micro and small enterprises sector should go to Micro (manufacturing) enterprises with investment in plant and machinery above 10 lakh and up to 25 lakh, and micro (service) enterprises with investment in equipment above 4 lakh and up to 10 lakh. The targets for Micro Enterprises within the Micro and Small Enterprises segment (MSE) will be computed with reference to the outstanding credit to MSE as on preceding March 31st. Advances to Weaker Sections
10 percent of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher. Note: (i) Banks should not deduct / net any amount like provisions, accrued interest, etc, from ANBC. (ii) With effect from the fortnight beginning August 24, 2013, incremental FCNR (B) deposits as also NRE deposits with reference to base date of July 26, 2013, and having maturity of three years and above, mobilized by banks, will be exempted from the maintenance of CRR / SLR. Advances granted in India against the incremental FCNR (B) / NRE deposits qualifying for exemption from CRR / SLR requirements, as detailed above, will also be excluded from Adjusted Net Bank Credit for computation of priority sector targets. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur

III. Description of the Categories under priority sector
1. Agriculture
1.1. Direct Agriculture
Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers, provided banks maintain disaggregated data on such loans] engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture (up to cocoon stage). Loans to others [such as corporates, partnership firms and institutions] for Agriculture and Allied Activities (dairy, fishery, piggery, poultry, bee-keeping, etc.) up to an aggregate limit of 2 crore per borrower for the following purposes: (i) Short-term loans for raising crops, i.e. for crop loans. This will include traditional/non-traditional plantations, horticulture and allied activities. (ii) Medium & long-term loans for agriculture and allied activities (e.g. purchase of agricultural implements and machinery, loans for irrigation and other developmental activities undertaken in the farm and development loans for allied activities). (iii) Loans for pre-harvest and post-harvest activities viz. spraying, weeding, harvesting, sorting, grading and transporting of their own farm produce. (iv) Loans to farmers up to 50 lakh against pledge / hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months, irrespective of whether the farmers were given crop loans for raising the produce or not. (v) Loans to small and marginal farmers for purchase of land for agricultural purposes. (vi) Loans to distressed farmers indebted to non-institutional lenders, against appropriate collateral. (vii) Export credit for exporting their own farm produce. 1.2. Indirect agriculture
1.2.1. Loans to corporates, partnership firms and institutions engaged in Agriculture and Allied Activities
[dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture (up to cocoon stage)]
If the aggregate loan limit per borrower is more than 2 crore in respect of eligible advances under direct agriculture, the entire loan should be treated as indirect finance to agriculture (i) Short-term loans for raising crops, i.e. for crop loans. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
This will include traditional/non-traditional plantations, horticulture and allied activities. (ii) Medium & long-term loans for agriculture and allied activities (e.g. purchase of agricultural implements and machinery, loans for irrigation and other developmental activities undertaken in the farm, and development loans for allied activities). (iii) Loans for pre-harvest and post-harvest activities such as spraying, weeding, harvesting, grading and sorting. (iv) Loans up to 50 lakh against pledge / hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months, irrespective of whether the farmers were given crop loans for raising the produce or not. (v) Export credit to corporates, partnership firms and institutions for exporting their own farm produce. (vi) Loans upto 5 crore to Producer Companies set up exclusively by only small and marginal farmers under Part IXA of Companies Act, 1956 for agricultural and allied activities. 1.2.2. Other indirect agriculture loans
(i) Loans up to 5 crore per borrower to dealers / sellers of fertilizers, pesticides, seeds, cattle feed, poultry feed, agricultural implements and other inputs. (ii) Loans for setting up of Agriclinics and Agribusiness Centres. (iii) Loans to Custom Service Units managed by individuals, institutions or organisations who maintain a fleet of tractors, bulldozers, well-boring equipment, threshers, combines, etc., and undertake farm work for farmers on contract basis. (iv) Loans for construction and running of storage facilities (warehouse, market yards, godowns and silos), including cold storage units designed to store agriculture produce/products, irrespective of their location. If the storage unit is a micro or small enterprise, such loans will be classified under loans to Micro and Small Enterprises sector. 2. Micro and small enterprises
The limits for investment in plant and machinery/equipment for manufacturing / service enterprise, as notified by Ministry of Micro Small and Medium Enterprises, vide, S.O.1642(E) dated September 29, 2006 are as under:- Manufacturing sector
Enterprises
Investment in plant and machinery
Micro Enterprises Does not exceed 25 lakh Small Enterprises Is more than 25 lakh but does not exceed 5 crore. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
Service Sector
Enterprises
Investment in equipment
Micro Enterprises Does not exceed 10 lakh Small Enterprises Is more than 10 lakh but does not exceed 2 crore. Bank loans to micro and small enterprises both manufacturing and service are eligible to be classified under priority sector as per the following: 2.1. Direct Finance
2.1.1. Manufacturing Enterprises
Loans to the Micro and Small enterprises engaged in the manufacture or production of goods to any industry specified in the first schedule to the Industries (Development and Regulation) Act, 1951 and the activities notified by the Government from time to time are eligible for classification under priority sector. Loans to MSEs engaged in manufacturing or production of goods under MSMED Act 2006 are eligible for classification under priority sector as direct finance to MSEs. 2.1.1.1. Loans for food and agro processing
Loans for food and agro processing will be classified under Micro and Small Enterprises, provided the units satisfy investment criteria prescribed for Micro and Small Enterprises, as provided in MSMED Act, 2006. 2.1.2 Service Enterprises
Bank loans upto 5 crore per unit to Micro and Small Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006. 2.1.3. Export credit to MSE units (both manufacturing and services) for exporting of goods/services produced by
them.
2.1.4. Khadi and Village Industries Sector (KVI)
All loans sanctioned to units in the KVI sector, irrespective of their size of operations, location and amount of original investment in plant and machinery. Such loans will be eligible for classification under the sub-target of 60 percent prescribed for micro enterprises within the micro and small enterprises segment under priority sector. 2.2. Indirect Finance
(i) Loans to persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. (ii) Loans to producers in the decentralised sector viz. artisans, village and cottage industries. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
3. Education
Loans to individuals for educational purposes including vocational courses upto 10 lakh for studies in India and 20 lakh for studies abroad. Loans granted to institutions will not be eligible to be classified as priority sector advances. 4. Micro Credit
Provision of credit and other financial services and products of amounts not exceeding 50,000 per borrower or the maximum permissible limit on unsecured advances whichever is lower. 5. Housing
(i) Loans up to 25 lakh irrespective of location, to individuals for purchase / construction of a dwelling unit per family, excluding loans sanctioned by banks to their own employees. (ii) Loans given for repairs to the damaged dwelling units of families up to 2 lakh in rural and semi- urban areas and up to 5 lakh in urban and metropolitan areas. (iii) Assistance given to any governmental agency for construction of dwelling units or for slum clearance and rehabilitation of slum dwellers subject to a ceiling of loan component of 5 lakh per dwelling unit. (iv) Assistance given to a non-governmental agency approved by the NHB for the purpose of refinance for construction / reconstruction of dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to a ceiling of loan component of 10 lakh per dwelling unit. (v) Investments made by UCBs in bonds issued by NHB / HUDCO on or after April 1, 2007 shall not be eligible for classification under priority sector lending. 6. Others
6.1. Loans, not exceeding 50,000/- per borrower provided directly by banks to individuals; 6.2. Loans to distressed persons [other than farmers-already included under III (1.1) (vi)] not exceeding 50,000/- per borrower to prepay their debt to non-institutional lenders. 6.3. Loans to SHGs / JLGs for agricultural and allied activities would be considered as priority sector advance. Further, other loans to SHGs / JLGs up to 50,000 would be considered as Micro Credit and hence would be treated as priority sector advances. 6.4. Loans sanctioned to State Sponsored Organisations for Scheduled Castes / Scheduled Tribes for the specific purpose of purchase and supply of inputs to and / or the marketing of the outputs of the beneficiaries of these organisations. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur

IV Weaker Sections
Priority sector loans to the following borrowers will be considered under Weaker Sections category:- (a) Small and marginal farmers; (b) Artisans, village and cottage industries where individual credit limits do not exceed 50,000/-; (c) Scheduled Castes and Scheduled Tribes and women; (d) Education loans to persons having monthly income not exceeding 5000/-. (e) Loans to Self Help Groups; (f) Loans to distressed farmers indebted to non-institutional lenders; (g) Loans to distressed persons other than farmers not exceeding 50,000/- per borrower to prepay their debt to non-institutional lenders; (h) Persons from minority communities as may be notified by Government of India from time to time. In States, where one of the minority communities notified is, in fact, in majority, item (h) will cover only other notified minorities. These States / Union Territories are Jammu & Kashmir, Punjab, Sikkim, Mizoram, Nagaland and Lakshadweep. UCBs should initiate steps to enhance / augment flow of credit under priority sector to artisans and craftsmen as also to vegetable vendors, cart pullers, cobblers, etc. belonging to minority communities. The minority communities notified in this regard are Sikhs, Muslims, Christians, Zoroastrians and Buddhists. Within the overall target for priority sector lending and the sub-target of 25 per cent for the weaker sections, sufficient care may be taken to ensure that the minority communities also receive an equitable portion of the credit. V. Priority Sector-Data Reporting System
A robust reporting system with granularity and system generation of priority sector data is of utmost importance for proper monitoring and appropriate policy making. In order to ensure that due emphasis is given to lending under priority sector, it is considered desirable that the performance is reviewed periodically. For this purpose, apart from the usual reviews, which the banks are periodically undertaking, specific reviews by the Board of Directors of the respective banks may be made on half-yearly basis. Accordingly, a memorandum may be submitted to the Board of Directors at half-yearly intervals i.e. as on September 30 and March 31 of each year giving a detailed critical account of the performance of the bank during the period showing increase / decrease over the previous half-year (Statement I). Further, annual review of the performance under priority sector advances as on March 31 may also be placed before the Board (Statement II-part A) by 15th of the following financial year. A copy of the annual review (Statement II, part A to E) complete in all respect as on March 31 may be forwarded to the concerned Regional Office of the Reserve Bank with the Board's observations, indicating the steps taken / proposed to be taken for improving the bank's performance. The report should reach the Regional Office within a period of 15 days from the end of the period to which it relates. The banks should submit Statement III (part A and B) as on March 31 within 15 days thereafter showing the position of direct loan and advances to agriculture and allied activities to the concerned Regional Office of this department under whose jurisdiction they function. In order to facilitate compilation of the relative figures, banks may maintain a register to indicate all the items of priority sector advances and also another register for weaker section advances showing Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
particulars, with separate folios to each activity so that the total of advances to priority sector and weaker sections under each activity and to each type of beneficiary may be available at any given point of time. The proforma of these registers may be on the lines of the annual return to be submitted to RBI. VI. Common guidelines for priority sector loans
Banks should comply with the following common guidelines for all categories of advances under the priority sector. 1. Service charges
No loan related and adhoc service charges/inspection charges should be levied on priority sector loans up to 25,000/-. 2. Receipt, Sanction/Rejection/Disbursement Register
A register/ electronic record should be maintained by the bank, wherein the date of receipt, sanction/rejection/disbursement with reasons thereof, etc., should be recorded. The register/electronic record should be made available to all inspecting agencies. 3. Issue of Acknowledgement of Loan Applications
Banks should provide acknowledgement for loan applications received under priority sector loans. Bank Boards should prescribe a time limit within which the bank communicates its decision in writing to the applicants. VII. Amendments
These guidelines are subject to any instructions that may be issued by the RBI from time to time. VIII. Definitions
Small and Marginal Farmers: Farmers with landholding of up to 1 hectare are considered as Marginal Farmers. Farmers with a landholding of more than 1 hectare but less than 2 hectares are considered as Small Farmers. For the purpose of priority sector loans „small and marginal farmers‟ include landless agricultural labourers, tenant farmers, oral lessees and share-croppers, whose share of landholding is within above limits prescribed for "Small and Marginal Farmer". Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
State-Wise List of Minority Concentrated Districts
(vide para no. IV (h)) Andamans
Maharashtra
Andhra Pradesh
64. Mumbai (suburban) Arunachal Pradesh
72. Churachandpur Meghalaya
76. West Garo Hills Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
Puducherry
North Cachar Hills Rajasthan
Paschim Champaran Uttar Pradesh
91. Muzaffarnagar Himachal Pradesh
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
Jammu and Kashmir
98. Siddharthanagar Jharkhand
100. Jyotiba Phule Nagar 102. Bulandshahar 103. Shahajahanpur Karnataka
Uttaranchal
109 Udham Singh Nagar West Bengal
110. Murshidabad 112. Uttar Dinajpur 114. South 24 - Parganas 116. Dakshin Dinajpur Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
Thiruvananthapuram 118. North 24-Paraganas Madhya Pradesh
List of circulars consolidated in the Master Circular
Circular
10.09.13 Finance for Housing Schemes - Primary (Urban) Co- operative Banks - Loans for Repairs / Additions / Alterations - Enhancement of Limits 27.08.13 Section 42(1) of the Reserve Bank of India Act, 1934 and Section 18 and 24 of the Banking Regulation Act, 1949 (AACS) - FCNR (B) / NRE Deposits - Exemption from Maintenance of CRR / SLR and Exclusion from ABC for Priority Sector Lending 18.05.12 Priority Sector Lending -Indirect Finance to Housing 02.06.11 Financing of Self Help Groups (SHGs) and Joint Liability Groups (JLGs) by Primary (Urban) Co- operative Banks (UCBs) 15.06.10 Advances to MSEs engaged in exports and export credit to agriculture / allied activities 25.03.10 Categorisation of activities under Services Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
Delhi I Mumbai I Pune I Kanpur
30.11.07 Priority Sector lending-Revision of target - UCBs 30.08.07 Revised Guidelines on Lending to Priority Sector for 30.08.07 Priority Sector Advances - List of minority Concentrated Circular
03.05.13 Priority Sector Lending-Targets and Classification- Revision of Limits 31.12.12 Revision in existing investment limits in plant & machinery / equipment for lending to Micro Enterprises in the 40:20 proportion 17.10.12 Priority Sector Lending - Targets and Classification 20.07.12 Priority Sector Lending - Targets and Classification Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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All State and Central Co-operative Banks (StCBs and CCBs) Housing Sector: Innovative Housing Loan Products – Upfront disbursal of housing loans
It has been observed that some banks have introduced certain innovative Housing Loan Schemes in association with developers/builders, e.g. upfront disbursal of sanctioned individual housing loans to the builders without linking the disbursals to various stages of construction of housing project, interest/EMI on the housing loan availed of by the individual borrower being serviced by the builders during the construction period/specified period, etc. This might include signing of tripartite agreements between the bank, the builder and the buyer of the housing unit. These loan products are popularly known by various names like 80:20, 75:25 Schemes. 2. Such housing loan products are likely to expose the banks as well as their home loan borrowers to additional risks e.g. in case of disputes between individual borrowers and developers/builders, default/delayed payment of interest/EMI by the developer/builder during the agreed period on behalf of the borrower, non-completion of the project on time, etc. Further, any delayed payments by developers/builders on behalf of individual borrowers to banks may lead to lower credit rating/scoring of such borrowers by credit information companies (CICs) as information about servicing of loans gets passed on to the CICs on a regular basis. In cases where bank loans are also disbursed upfront on behalf of their individual borrowers in a lump-sum to builders/developers without any linkage to stages of construction, banks run disproportionately higher exposures with concomitant risks of diversion of funds. 3. In view of the higher risks associated with such lump-sum disbursal of sanctioned housing loans and customer suitability issues, StCBs and CCBs are advised that disbursal of housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project/houses and upfront disbursal should not be made in cases of incomplete/under-construction/green field housing projects. 4. It is emphasized that StCBs / CCBs while introducing any kind of product should take into account the customer suitability and appropriateness issues and also ensure that the borrowers/ customers are made fully aware of the risks and liabilities under such products. Yours faithfully (A. Udgata) Principal Chief General Manager Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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RBI/2013-14/321
UBD CO BPD (PCB) Cir. No.29/13.05.000/2013-14
October 10, 2013 The Chief Executive Officers All Primary (Urban) Co-operative Banks Dear Sir / Madam, Unsecured Exposure Norms for UCBs
Please refer to ouron the captioned subject exempting UCBs fulfilling certain conditions from the extant ceiling of 10% of total assets for unsecured loans and advances and permitting them to grant, with the prior approval of Reserve Bank of India, unsecured loans upto 20,000/- in a single account (with or without surety) upto 25% of their total assets. On a review thereof, it has been decided to exempt unsecured loans upto 10,000/- sanctioned by UCBs from the aggregate ceiling on unsecured exposure of 10% of total assets as per audited balance sheet as on March 31 of the previous financial year, subject to the following conditions: a. The individual amount sanctioned should not exceed 10,000/-; b. The loan should be for productive purpose and banks should ensure end use of funds lent; c. The bank should have CRAR of 9% and d. The Gross NPAs of the bank should be less than 10% of gross advances. The unsecured loans so extended by the bank shall not exceed 15% of its total assets. Financial parameters detailed above shall be as on March 31 of the previous year, as assessed by Reserve Bank of India. 2. UCBs which do not meet the above criteria would continue to be governed by the extant guidelines limiting the ceiling on unsecured loans (with or without surety or for cheque purchase) to 10% of total assets as per audited balance sheet as on March 31 of the previous financial year, with individual and group borrower limits ranging from 25,000/- to 5.00 lakhs, depending on the size of Demand and Time Liabilities (DTL) and compliance with CRAR as specified in ouron „Maximum Limit on Unsecured Loans and Advances‟. Yours faithfully, (A.K. Bera) Principal Chief General Manager Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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RBI/2013-14/322 DCM (Plg) No. G - 14/10.65.03/2013-14 October 10, 2013 The Chairman & Managing Director / Chief Executive Officer (All Scheduled Commercial banks including RRBs) Madam/ Dear Sir, Monetary Policy Statement for 2013-14-Distribution of Banknotes and Coins – Alternative Avenues
Please refer toof the Monetary Policy Statement 2013-14 wherein it was stated that "With a view to effectively meeting the growing demand for banknotes and coins in the country, there is a need for identification of alternative avenues for their distribution by banks. For this purpose, banks may explore the possibility of offering these services through Business Correspondents (BC) and consider engaging the services of Cash in Transit (CIT) entities for the purpose of distribution of banknotes and coins, thereby addressing the last mile connectivity issues." 2. We invite attention to ouradvising you to explore the possibility of enlisting the services of BCs for carrying out the various currency management functions. 3. Banks are advised to explore the possibility of engaging the services of Cash in Transit (CIT) entities also for the purpose of distribution of banknotes and coins. 4. Please acknowledge receipt. Yours faithfully (B P Vijayendra) Principal Chief General Manager Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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RBI/2013-14/323
A.P. (DIR Series) Circular No. 61
October 10, 2013 To All Category - I Authorised Dealer Banks Overseas Foreign Currency Borrowings by Authorised Dealer Banks
Attention of Authorised Dealer Category I banks is invited to Regulation no. (4)(2)(i) ofas amended from time to time and A.P.(DIR Series) circular no. 23 dated October 15, 2008 in terms of which, inter alia, AD Category - I banks may borrow funds from their Head Office, overseas branches and correspondents and avail overdraft in the nostro accounts up to a limit of hundred per cent of their unimpaired Tier I capital as at the close of the previous quarter or USD 10 million (or its equivalent), whichever is higher (excluding borrowings for financing of export credit in foreign currency and capital instruments). 2. With a view to providing greater flexibility to AD Category - I banks in seeking access to overseas funds,
Reserve Bank has amended Regulation no. (4)(2)(i) videpublished in the Official Gazette vide G.S.R.No.668 (E) on October 1, 2013. Henceforth, authorised dealers
may borrow from their Head Office or overseas branches or correspondents outside India or any other entity as
permitted by Reserve Bank up to hundred per cent of its unimpaired Tier I capital or USD 10 million, whichever
is higher, subject to such conditions as the Reserve Bank may direct. A copy of the amendment notification is
placed as annex to this circular.
3. Accordingly, permission is hereby granted to AD Category I banks to borrow from international / multilateral financial institutions for a limited period up to November 30, 2013. Such borrowings should be for the purpose of general banking business and not for capital augmentation and shall be subject to the conditions stipulated in the Further, such borrowings shall be eligible for the concessional swap facility of RBI as per A.P. (DIR Series) circulars no. 40, 2013 dated September 10, 2013 and 4. 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 is without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully (Rudra Narayan Kar)
Chief General Manager-in-Charge
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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RBI/2013-14/324
DPSS (CO) RTGS No.801/04.04.017/2013-14
October 11, 2013 The Chairperson / Chief Executive Officer RTGS Members Madam / Dear Sir, Launch of new RTGS System
Please refer to our regarding implementation of new RTGS System conforming to ISO 20022 messaging standard. 2. The new RTGS system will be operationalized on October 19, 2013 and the would come into effect from this date. Hence, the extant RTGS System will no longer be operational. Accordingly,
the RTGS (Membership) Business Operating Guidelines, 2004 and RTGS (Membership) Regulations, 2004 would
cease to exist.
3. All RTGS members are advised to take necessary steps to ensure participation in the new RTGS system. Yours faithfully, (Nilima Ramteke) General Manager Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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SERVICE TAX UPDATES
Circular No.173/8/2013 – ST
F.No.334/3/2013-TRU Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs Tax Research Unit New Delhi, 7th October, 2013 To
Chief Commissioners of Central Excise and Customs (All),
Director General (Service Tax), Director General (Central Excise Intelligence), Director General (Audit),
Commissioners of Service Tax (All)
Commissioners of Central Excise (All),
Commissioners of Central Excise and Customs (All).
Madam/Sir,
Subject: Restaurant Service- clarification -regarding
As part of the Budget exercise 2013, the exemption for services provided by specified restaurants extended
vide serial number 19 of Notification 25/2012-ST was modified vide para 1 (iii) of Notification 3/2013-ST. This
has become operational on the 1st of April, 2013.
2. In this context, representations have been received. On the doubts and questions raised therein clarifications are as follows: In a complex where air conditioned as well Services provided in relation to serving of food or as non-air conditioned restaurants are beverages by a restaurant, eating joint or mess, operational but food is sourced from the having the facility of air conditioning or central air common kitchen, will service tax arise in heating in any part of the establishment, at any the non-air conditioned restaurant? time during the year (hereinafter referred as „specified restaurant‟) attracts service tax. In a complex, if there is more than one restaurant, which are clearly demarcated and separately named but food is sourced from a common kitchen, only the service provided in the specified restaurant is liable to service tax and service provided in a non air-conditioned or non centrally air- heated restaurant will not be liable to service Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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tax. In such cases, service provided in the non air-conditioned / non-centrally air-heated restaurant will be treated as exempted service and credit entitlement will be as per the Cenvat Credit Rules. In a hotel, if services are provided by a Yes. Services provided by specified restaurant in specified restaurant in other areas e.g. other areas of the hotel are liable to service tax. swimming pool or an open area attached to the restaurant, will service tax arise? Whether service tax is leviable on goods If goods are sold on MRP basis (fixed under the sold on MRP basis across the counter as Legal Metrology Act) they have to be excluded part of the Bill/invoice. from total amount for the determination of value of service portion. 3. Trade Notice/Public Notice may be issued to the field formations and taxpayers. Please acknowledge receipt of this Circular. Hindi version follows. Yours sincerely, (S. Jayaprahasam) Technical Officer, TRU Tel: 011-2309 2037 Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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CUSTOMS UPDATES
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No.22/2013-Customs (ADD)
New Delhi, the 10th October, 2013 G.S.R._(E). -WHEREAS in the matter of import of Bulk Drug Cefadroxil Monohydrate (hereinafter referred to as subject goods), falling under Chapter 29 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), (hereinafter referred to as the said Act), originating in or exported from the European Union (hereinafter referred to as subject country), and imported into India, the designated authority in its final findings published in the Gazette of India, Extraordinary, Part I, Section 1, vide notification No. 14/8/2011-DGAD dated 19th July, 2013, has come to the conclusion, inter alia, that – (i) the subject goods have entered the Indian market from the subject country below associated normal value, thus, resulting in dumping of the subject goods; (ii) the domestic industry has suffered material injury in respect of such goods; (iii) the injury to the domestic industry has been caused due to the dumped imports of subject goods from the subject country ; AND WHEREAS, the designated authority has recommended imposition of definitive anti-dumping duty on imports of the subject goods, originating in or exported from the European Union and imported into India, in order to remove injury to the domestic industry; NOW, THEREFORE, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the said Act, read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-
dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after
considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the
description of which is specified in column (3) of the Table below, falling under tariff item of the First Schedule to
the said Act as specified in the corresponding entry in column (2), originating in the country as specified in the
corresponding entry in column (4), and produced by the producer as specified in the corresponding entry in
column (6), when exported from the country as specified in the corresponding entry in column (5), by the
exporter as specified in the corresponding entry in column (7), and imported into India, an anti-dumping duty at
the rate equal to the amount as indicated in the corresponding entry in column (8), in the currency as specified in
the corresponding entry in column (10) and as per unit of measurement as specified in the corresponding entry in
column (9) of the said Table.
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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Sl. Tarif Description Country Country Bulk Drug Europea Europea Bulk Drug Europea Europea Bulk Drug Europea Europea Any combination except at Sl. Bulk Drug Europea Monohydra Europea
2. The anti-dumping duty imposed under this notification shall be levied for a period of five years (unless
revoked, amended or superseded earlier) from the date of publication of this notification in the Gazette of India
and shall be paid in Indian currency.

Explanation. - For the purposes of this notification, rate of exchange applicable for the purposes of calculation of
such anti-dumping duty shall be the rate which is specified in the notification of the Government of India in the
Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by
section 14 of the Customs Act, 1962 (52 of 1962) and the relevant date for determination of the rate of exchange
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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shall be the date of presentation of the bill of entry under section 46 of the said Customs Act. [F.No.354/19/2013 –TRU] Under Secretary to the Government of India Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 23/2013-Customs (ADD)
New Delhi, the, 10th October, 2013 G.S.R. (E). – Whereas, the designated authority, vide its notification No. 15/1006/2012-DGAD, dated the 7th September, 2012, published in Part I, Section 1 of the Gazette of India, Extraordinary, dated the 7th September, 2012, had initiated a review in the matter of continuation of anti-dumping on imports of Ductile iron pipes (hereinafter referred to as the subject goods) falling under tariff items 7303 00 30 or 7303 00 90 of the First Schedule to the Customs Tariff Act 1975, (51 of 1975) (hereinafter referred to as the said Act), originating in, or exported from, People‟s Republic of China (hereinafter referred to as the subject country), imposed vide notification of Government of India, in the Ministry of Finance (Department of Revenue), No. 103/2007-Customs, dated the 14th September, 2007, published in Part II, Section 3, Sub-section (i) of the Gazette of India, Extraordinary, vide G.S.R. No. 599 (E), dated the 14th September, 2007. And whereas, the Central Government had extended the anti-dumping duty on the subject goods, originating in, or exported from, the subject country up to and inclusive of the 12th of September, 2013 vide notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 41/2012 –Customs (ADD) dated the 13th September, 2012, published in Part II, Section 3, Sub-section (i) of the Gazette of India, Extraordinary, vide G.S.R No. 685(E), dated the 13th September, 2012. And whereas, in the matter of review of anti-dumping on import of the subject goods, originating in, or exported from the subject country, the designated authority vide its final findings, No. 15/1006/2012-DGAD, dated the 4th September, 2013, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 4th September, 2013, has come to the conclusion that – (i) There is clear evidence that if the existing duties are allowed to be revoked, the volume of dumped and injurious exports of the subject goods from the subject country to India is likely to increase and likely to cause injury to the domestic industry. The volume of such dumped and injurious exports is significant considering the demand for the product under consideration in India; (ii) there is every likelihood of dumping and consequential injury to the domestic industry from subject country, if the existing duties are allowed to be revoked. and has recommended continued imposition of the anti-dumping duty against the subject goods, originating in, or exported from, the subject country; Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the said Act read with rules 18 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling against tariff items to the said Act as specified in the corresponding entry in column (2), originating in the country as specified in the corresponding entry in column (4), and produced by the producers as specified in the corresponding entry in column (6), and exported from the countries specified in the corresponding entry in column (5) , by the exporters as specified in the corresponding entry in column (7) and, imported into India, an anti-dumping duty at a rate which is equal to the amount specified in the corresponding entry in column (8), in the currency as specified in the corresponding entry in column (10) and per unit of measurement as specified in the corresponding entry in column (9) of the said Table. Exporter Amount Unit of 2. The anti-dumping duty imposed shall be levied for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this notification in the Official Gazette and shall be payable in Indian currency. Explanation. - For the purposes of this notification, - "rate of exchange" applicable for the purposes of calculation of anti-dumping duty shall be the rate which is specified in the notification of the Government of India in the Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers under sub-
clause (i) of clause (a) of sub-section (3) of section 14 of the Customs Act, 1962 (52 of 1962) and the relevant date
for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46
of the said Customs Act.
F No. 354/3/2007/TRU (Pt-I) Under Secretary to the Government of India. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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Circular No. 40/2013-Customs
Government of India Ministry of Finance, Department of Revenue Central Board of Excise & Customs Drawback Division New Delhi, dated the 9th October , 2013 To Chief Commissioners of Customs / Customs (Prev) (All), Chief Commissioners of Central Excise & Customs (All) Directors General of CBEC / Chief Commissioner (AR), CESTAT (All) Commissioners of Customs / Customs (Prev)/ Customs & Central Excise (All) Commissioners of Customs (Appeals)/ Customs & Central Excise (Appeals) (All) Ma‟am/Sir, Subject: Option to close cases of default in Export Obligation (EO) - Notification No. 46/2013-Customs dated
26.9.2013
The Ministry has issued Notification No. 46/2013-Customs dated 26.9.2013 to amend 36 Customs notifications pertaining to Advance License/DEEC/ Advance Authorization/DFIA/ EPCG relating to the Policy periods from 1992-1997 to 2004-2009. This is to implement the Public Notice No. 22 (RE-2013)/2009-2014 dated 12.8.13 notified by DGFT that has provided a procedure, under category of regularization of bona fide defaults, in which all pending cases of the default in meeting EO may be regularized by the authorization holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty, but the interest to be so paid, under this option, shall not exceed the amount of customs duty payable for the default. The authorization holder choosing to avail this procedure must complete the process of payment on or before 31.3.2014. 2. The amendments made by the Notification No. 46/2013-Customs provide that in a case of default in export obligation, when the duty on the goods is paid to regularize the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularization has been dealt in terms of said Public Notice of DGFT. No other change is involved. 3. It may be noted that the cases where export obligation period is yet to be over, are not covered under the Option. Also, normally no refund is envisaged to arise on account of choosing the Option. However, there may be cases of calculation mistakes to be dealt on merits. Also, the DGFT PN No. 22 (RE-2013)/2009-2014 dated 12.8.13 specifies that necessary procedures would be indicated separately. 4. The Commissioners are to ensure that the cases under the Option are monitored and tracked from the initial stages of exporter approaching for paying the duty, etc. so that there is efficient handling and the subsequent actions, for expeditious closure of these older cases of bona fide EO default, take place seamlessly, if infringement of other conditions is not involved. Suitable mechanism for this should be put in place and closely supervised by the Commissioners. Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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5. Each Chief Commissioner of Customs / Customs (Prev) / Central Excise & Customs shall provide by
3rd of the succeeding month (beginning with report for October 2013 and ending with report for March 2014) a
report to the office of Chief Commissioner of Customs Delhi Zone enabling Delhi Customs Zone to prepare and
provide a Zone-wise, all-India monthly report to the Board by 5th of every month in the following format:
All-India report on Option to close cases of default in EO upto MM/YYYY
Note – Every report to contain the previous months‟ figures 6. This Circular may be brought to the notice of all concerned by way of issuance of standing order/instruction/trade notice. Difficulties faced, if any, may please immediately be brought to the notice of the Board. Yours faithfully, (Rajesh Kumar Agarwal) Telefax:23367563/ Email: [email protected] Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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DGFT UPDATES
(To be Published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section (ii))
Government of India Ministry of Commerce & Industry Department of Commerce Notification No 45 (RE – 2013)/2009-2014
New Delhi, Dated : 9th October, 2013
Subject: Amendment in Notification No 22(RE-2012)/2009-14 dated 18th June, 2013 relating to export of edible
S.O.(E) In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) read with Para 1.3 of the Foreign Trade Policy, 2009-2014 (as amended from time to time), the Central Government hereby amends with immediate effect serial no 4 of Notification No 22(RE-2012)/2009-14 dated 18th June 2013 relating to Sl. No. 92 of Schedule 2 of ITC(HS) Classification of Export & Import Items. 2. Export of edible oils in branded consumer packs of upto 5 Kgs is permitted with a Minimum Export Price of USD 1400 per MT. 3. Effect of this notification: MEP on export of edible oils in branded consumer packs of upto 5 Kgs has been reduced to USD 1400 per MT. Earlier it was USD 1500 per MT. (Anup K. Pujari) Director General of Foreign Trade E-mail: dgft[at]nic[dot]in (Issued from F.No.01/91/180/774/AM10/Export Cell) Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015
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PS.: This compilation provides for the updates available on respective websites till
October 12th, 2013.

The materials and information contained herein are a compilation of relevant news update from various official
websites. This effort is being made by BMC to provide general information on a particular subject and is not
exhaustive treatment of such subjects. It should neither be regarded as comprehensive nor sufficient for taking
decisions, nor should it be used in place of professional advice. This update is for private circulation only.
Although our endeavor is to provide accurate & timely information, there can be no guarantee as of the date it is
received or that it will continue to be accurate in future. No representation or warranty (express or implied) is
given as to the accuracy or completeness of the information contained in this presentation, as it is just a
compilation done with an aim to provide assistance and saving time of professionals.
Edited and Compiled By: Team BMC
Corporate Office: 63/12, 1st Floor, Main Rama Road, New Delhi – 110015

Source: http://www.bmcadvisors.in/pdf/Weekly%20Updates%20(October%207th%20-%2012th,%202013).pdf