RBI:
RBI with a view to liberalizing & expanding the options of securities and consolidating various provisions related to creation of charge over securities for ECB at one place, it has been decided that AD Category-I banks may allow creation of charge on immovable assets, movable assets, financial securities and issue of corporate and / or personal guarantees in favour of overseas lender / security trustee, to secure the ECB to be raised / raised by the borrower subject to certain conditions. These amendments to the ECB guidelines shall come into force with immediate effect, subject to review from time to time. All other provisions related to raising of ECB remain unchanged.
RBI:
RBI has reviewed Know your Customer (KYC) Norms & Obligations for NBFCs under Prevention of Money laundering Act (PMLA), 2002, in the light of practical difficulties/constraints expressed in obtaining/submitting fresh KYC documents at frequent interval. Accordingly, it has been decided to amend the instructions and now NBFCs would need to continue to carry out on-going due diligence with respect to the business relationship with every client, Full KYC exercise will be required to be done at least every two years for high risk individuals and entities and at least every ten years for low risk and at least every eight years for medium risk individuals and Fresh photographs will be required to be obtained from minor customer on becoming major.
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