Acceptance of FCNR(B) deposits expands RRBs' foreign deposit services subject to sponsor bank arrangements and regulatory authorisation. RRBs, subject to Regional Office authorisation, may accept FCNR(B) deposits in specified currencies and must enter tie ups with sponsoring banks: foreign currency funds are received to the sponsor's nostro, treated as placements by the RRB, and managed by the sponsor. Sponsors may swap funds with RRBs only if the sponsor assumes all exchange and maturity mismatch risk. Interest, accounting and maturity payment arrangements are by mutual agreement. RRBs report non resident deposit data in CSR format while sponsoring banks report currency transactions in appropriate returns.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Acceptance of FCNR(B) deposits expands RRBs' foreign deposit services subject to sponsor bank arrangements and regulatory authorisation.
RRBs, subject to Regional Office authorisation, may accept FCNR(B) deposits in specified currencies and must enter tie ups with sponsoring banks: foreign currency funds are received to the sponsor's nostro, treated as placements by the RRB, and managed by the sponsor. Sponsors may swap funds with RRBs only if the sponsor assumes all exchange and maturity mismatch risk. Interest, accounting and maturity payment arrangements are by mutual agreement. RRBs report non resident deposit data in CSR format while sponsoring banks report currency transactions in appropriate returns.
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