Yours faithfully, Sd/-(B Mahapatra)Chief General Manager MASTER CIRCULAR1. 1.2 Essentially, under the above system the balance sheet assets, non-funded items and other off-balance sheet exposures are assigned weights according to the prescribed risk weights and banks have to maintain unimpaired minimum capital funds equivalent to the prescribed ratio on the aggregate of the risk weighted assets and other exposures on an ongoing basis.
BC.20/ / 2003- 2004September 2, 2003Chief Executives of all Scheduled Commercial Banks(excluding RRBs and LABs)Dear Sir, Master Circular- Prudential Norms on Capital Adequacy Please refer to the Master Circular No. This Master Circular is a compilation of all the instructions contained in the circulars issued by RBI on the above subject, which are operational as on the date of this circular. General1.1 With a view to adopting the Basle Committee framework on capital adequacy norms which takes into account the elements of risk in various types of assets in the balance sheet as well as off-balance sheet business and also to strengthen the capital base of banks, Reserve Bank of India decided in April 1992 to introduce a risk asset ratio system for banks (including foreign banks) in India as a capital adequacy measure.
The guidelines have been notified by the Reserve Bank of India vide Notification No.
FEMA 120/RB-2004 dated July 7, 2004, as amended from time to time, which can be accessed at the Reserve Bank’s website
A Master Direction titled ‘Master Direction on Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad’.
The Master Directions consolidate instructions on rules and regulations framed by the Reserve Bank under various Acts including banking issues and foreign exchange transactions and is available at ‘Notification’ Section on RBI’s website https://
Whether the provisions of Regulation 4 (1) (iii) of Notification No.
Can there be more than one ‘designated Authorised Dealer’ for the same JV/WOS in case the JV/WOS has more than one Indian promoter?
Banks are a particularly important source of funds for small borrowers who often have limited access to other sources of external finance.
The three main interrelated functions of commercial banks are holding of deposits; creating credit through lending and investment activities; and providing a mechanism for payments and transfers of funds for various productive activities.
The loans can be secured by pledge of promoter shareholdings, mortgages and escrow of cash flows during the term of the loan.
You may opt for short term loans or medium term loans as per your business requirements.