New Delhi: India and South Korea have signed 5 agreements at the end of delegation level talks between visiting South Korean President and PM Manmohan Singh.
These include an agreement on peaceful use of outer space and on Nalanda University.
Manmohan has said India and South Korea have concluded Double Taxation Avoidance Convention.
Singh also invited more Korean investments.
Both the countries agreed to set up a CEO forum.
India has also agreed to provide visa on arrival to Korean tourists.
Success in my Habit
Saturday, January 18, 2014
Tuesday, January 14, 2014
Bajaj Electricals to set up R&D centre, up rural focus
Pune: Bajaj Electricals Ltd plans to establish an integrated R&D centre that will drive innovation and help it create cutting-edge technology across its three business verticals.
The company, which gets nearly half its top-line from the consumer durables and kitchen appliances business, is also increasing its focus on non-urban centres.
It plans to develop appliances specially aimed at the needs of this market, such as mixers and irons.
Citing the example of Bajaj Auto, which has created its own technology for its motorcycles, Shekhar Bajaj, CMD of Bajaj Electricals, said: “The R&D centre will study market needs and make what the
consumer wants.”
While the location is yet to be finalised, it is likely to be around Mumbai, he said.
Anant Bajaj, JMD, said at a press conference here he wants to move away from the mindset of differentiated quality products (appliances) for the export and domestic markets.
“Cutting-edge technology is the only way for products to remain strong,” he said, adding that the product could then be sold across geographies. At present, exports account for a mere 1 per cent of Bajaj Electricals’ sales, and there is a lot of scope on this front, he said. “We may even have some manufacturing and assembly in export free markets to make exports viable,” he added.
As part of a strategy to increase its focus on rural areas, Bajaj Electricals has set up exclusive showrooms that display its entire range of consumer products.
At present, 50 of 68 Bajaj World outlets are in non-urban locations, and the plan is to grow the total number to 100 in the current year.
Turnover target
The company expects to close the current fiscal with 25 per cent growth to a turnover of Rs 4,200 crore, against Rs 3,400 crore last year.
While the consumer durables and lighting businesses will each grow 15 per cent to Rs 2,100 crore and Rs 900 crore, respectively, the projects vertical will see 70 per cent growth to stand at Rs 1,200 crore (Rs 640 crore).
“We want to execute and hand over older projects and close all the gaps by the year-end. Then we can focus on our new order book,” Anant Bajaj said. The company’s projects order book at the end Q3 14 stood at Rs 1,465 crore, and is expected touch Rs 1,500 crore by the end of the fiscal.
“Cutting-edge technology is the only way for products to remain strong.” Anant Bajaj, JMD, Bajaj Electricals
The company, which gets nearly half its top-line from the consumer durables and kitchen appliances business, is also increasing its focus on non-urban centres.
It plans to develop appliances specially aimed at the needs of this market, such as mixers and irons.
Citing the example of Bajaj Auto, which has created its own technology for its motorcycles, Shekhar Bajaj, CMD of Bajaj Electricals, said: “The R&D centre will study market needs and make what the
consumer wants.”
While the location is yet to be finalised, it is likely to be around Mumbai, he said.
Anant Bajaj, JMD, said at a press conference here he wants to move away from the mindset of differentiated quality products (appliances) for the export and domestic markets.
“Cutting-edge technology is the only way for products to remain strong,” he said, adding that the product could then be sold across geographies. At present, exports account for a mere 1 per cent of Bajaj Electricals’ sales, and there is a lot of scope on this front, he said. “We may even have some manufacturing and assembly in export free markets to make exports viable,” he added.
As part of a strategy to increase its focus on rural areas, Bajaj Electricals has set up exclusive showrooms that display its entire range of consumer products.
At present, 50 of 68 Bajaj World outlets are in non-urban locations, and the plan is to grow the total number to 100 in the current year.
Turnover target
The company expects to close the current fiscal with 25 per cent growth to a turnover of Rs 4,200 crore, against Rs 3,400 crore last year.
While the consumer durables and lighting businesses will each grow 15 per cent to Rs 2,100 crore and Rs 900 crore, respectively, the projects vertical will see 70 per cent growth to stand at Rs 1,200 crore (Rs 640 crore).
“We want to execute and hand over older projects and close all the gaps by the year-end. Then we can focus on our new order book,” Anant Bajaj said. The company’s projects order book at the end Q3 14 stood at Rs 1,465 crore, and is expected touch Rs 1,500 crore by the end of the fiscal.
“Cutting-edge technology is the only way for products to remain strong.” Anant Bajaj, JMD, Bajaj Electricals
Dr Reddy's Laboratories launches anti-hypertension drug
Hyderabad: City-based pharma major Dr Reddy's Laboratories (DRL) on Friday launched Optidoz, a drug for the treatment of hypertension, in the Indian market. "Optidoz is a single pill combination of three anti-hypertensive drugs (Amlodipine 2.5 mg, Telmisartan 20mg and Hydrochlorothiazide 6.25mg) with optimal (half of standard) dose of individual drugs," a company official said.
The drug falls under the cardiovascular segment that fetches DRL around Rs 200-250 crore sales in India. Apart from cardiovascular segment, DRL would be focusing on areas such as diabetes, gastroenterology, oncology, urology and nephrology to boost its domestic business, DRL senior vice-president and India business head for generics Alok Sonig said.
"Around 32% of adult Indian population suffers from high blood pressure and we are looking at tapping 50 -70 million of these total 200 million patients. In the next five to ten years, the product could see sales north of Rs 100 crore," Sonig said.
He pointed out that he expects the company's generic business in India to grow by 8-10% this fiscal. The company along with other pharma players in the country has been under pressure due to the Drug Price Control Order (DPCO) and the number of drug launches too have been less this fiscal, he explained. According to him, DPCO had
eroded 5% of DRL's Indian revenue as nearly 15 to 20 products' prices had to be revised.
DPCO is a government's order under the essential commodities act that allows it to fix the prices of essential drugs and their formulations.
The drug falls under the cardiovascular segment that fetches DRL around Rs 200-250 crore sales in India. Apart from cardiovascular segment, DRL would be focusing on areas such as diabetes, gastroenterology, oncology, urology and nephrology to boost its domestic business, DRL senior vice-president and India business head for generics Alok Sonig said.
"Around 32% of adult Indian population suffers from high blood pressure and we are looking at tapping 50 -70 million of these total 200 million patients. In the next five to ten years, the product could see sales north of Rs 100 crore," Sonig said.
He pointed out that he expects the company's generic business in India to grow by 8-10% this fiscal. The company along with other pharma players in the country has been under pressure due to the Drug Price Control Order (DPCO) and the number of drug launches too have been less this fiscal, he explained. According to him, DPCO had
eroded 5% of DRL's Indian revenue as nearly 15 to 20 products' prices had to be revised.
DPCO is a government's order under the essential commodities act that allows it to fix the prices of essential drugs and their formulations.
NRI deposits swell by $13.71 bn in November
The Reserve Bank of India raised around $25 bn under the swap window facility, which was open till November 30
Mumbai: The Reserve Bank of India’s efforts to attract foreign exchange has paid off, with remittances from non-resident Indians (NRIs) touching $13.71 billion in November.
NRI deposits rose in September to $96.25 billion. Under foreign currency non-resident — banks [FCNR(B)] category, they stood at $38.62 billion at end of November, up from $24.70 billion in October, according to RBI data.
Bankers said the swap facility for FCNR(B) deposits did attract money from overseas Indians.
In August and September 2013
, the RBI took many steps to attract NRI deposits.
On September 4, RBI decided to offer banks a window to swap fresh FCNR(B) dollar funds.
Under the window, banks could swap fresh FCNR(B) dollar funds (deposits with a maturity period of at least three years) at a fixed rate of 3.5 per cent a year. The swap window was open till November 30. The RBI raised about $25 billion under this facility in three months.
The other two categories
of NRI deposits — NRE and NRO — saw net outflows in November.
The outstanding NRE deposit base was $ 49.06 billion ($ 49.21 billion in October) and NRO - $ 8.57 billion ($ 8.62 billion in October).
Meanwhile, the central bank sold net $ 10.08 billion in November. It’s outstanding net forward sales at the end of November stood at $ 32.54 billion, up from $ 14.45 billion at end of October.
Mumbai: The Reserve Bank of India’s efforts to attract foreign exchange has paid off, with remittances from non-resident Indians (NRIs) touching $13.71 billion in November.
NRI deposits rose in September to $96.25 billion. Under foreign currency non-resident — banks [FCNR(B)] category, they stood at $38.62 billion at end of November, up from $24.70 billion in October, according to RBI data.
Bankers said the swap facility for FCNR(B) deposits did attract money from overseas Indians.
In August and September 2013
, the RBI took many steps to attract NRI deposits.
On September 4, RBI decided to offer banks a window to swap fresh FCNR(B) dollar funds.
Under the window, banks could swap fresh FCNR(B) dollar funds (deposits with a maturity period of at least three years) at a fixed rate of 3.5 per cent a year. The swap window was open till November 30. The RBI raised about $25 billion under this facility in three months.
The other two categories
of NRI deposits — NRE and NRO — saw net outflows in November.
The outstanding NRE deposit base was $ 49.06 billion ($ 49.21 billion in October) and NRO - $ 8.57 billion ($ 8.62 billion in October).
Meanwhile, the central bank sold net $ 10.08 billion in November. It’s outstanding net forward sales at the end of November stood at $ 32.54 billion, up from $ 14.45 billion at end of October.
FIIs inflows cross Rs 3,500 crore mark in the Indian debt market
New Delhi: The overseas investors invested over Rs 3,500 crore in the Indian debt market so far in January 2014, when the US Federal Reserve is scheduled to start reducing its monthly bond purchases by US$ 10 billion.
Foreign institutional investors (FIIs) invested Rs 545 crore in the equity market. FIIs also bought debt securities worth Rs 8,155 crore and sold bonds worth Rs 4,609 crore till January 10, 2014, resulting in a net inflow of Rs 3,546 crore, as per data provided by Securities and Exchange Board of India (SEBI).
As of January 10, 2014, the number of registered FIIs in the country stood at 1,724 and the total number of sub-accounts was at 6,400. Their total investment in debt and equity was about Rs 4,091 crore. FIIs inflow in debt market is returning on account of some stability observed in foreign exchange and interest rates, according to market experts.
In 2013, overseas investors retrieved a net amount of Rs 50,847 crore from the bond market, while they infused a net Rs 1,130 billion in equities.
Foreign institutional investors (FIIs) invested Rs 545 crore in the equity market. FIIs also bought debt securities worth Rs 8,155 crore and sold bonds worth Rs 4,609 crore till January 10, 2014, resulting in a net inflow of Rs 3,546 crore, as per data provided by Securities and Exchange Board of India (SEBI).
As of January 10, 2014, the number of registered FIIs in the country stood at 1,724 and the total number of sub-accounts was at 6,400. Their total investment in debt and equity was about Rs 4,091 crore. FIIs inflow in debt market is returning on account of some stability observed in foreign exchange and interest rates, according to market experts.
In 2013, overseas investors retrieved a net amount of Rs 50,847 crore from the bond market, while they infused a net Rs 1,130 billion in equities.
Petrotech 2014: India to showcase 46 oil & gas blocks
New Delhi: The Government will unveil 46 oil and gas blocks on Sunday at Petrotech 2014. The blocks are expected to be auctioned soon under the tenth round of the Government’s New Exploration and Licensing Policy (NELP X).
According to the Ministry of Petroleum and Natural Gas, the explorers would get a view of the geological reserves of the block, while the policy governing the auction would follow in few weeks.
Petrotech 2014, the biennial international oil and gas conference scheduled from January 12, will focus on ‘Vision 2030: The Emerging Global Energy Basket.’ It will discuss the 5Ps (planning, politics, partnership, production and policy) of the E&P (exploration and production) business, said Narendra K. Verma, Chairman, organising and programme committee of Petrotech 2014.
“In this conference, all regulators, national oil companies, private operators, services and ancillary firms, form a combined platform to demonstrate India as a E&P destination,” he said.
Nearly 11 energy ministers from across the world are expected to fly down to the four-day event. Companies from more than 15 countries will participate in the event.
Petrotech 2014 is being jointly organised by the Oil and Natural Gas Corporation Ltd and the PETROTECH Society. The Minister of Petroleum and Natural Gas M. Veerappa Moily is its patron-in-chief.
According to the Ministry of Petroleum and Natural Gas, the explorers would get a view of the geological reserves of the block, while the policy governing the auction would follow in few weeks.
Petrotech 2014, the biennial international oil and gas conference scheduled from January 12, will focus on ‘Vision 2030: The Emerging Global Energy Basket.’ It will discuss the 5Ps (planning, politics, partnership, production and policy) of the E&P (exploration and production) business, said Narendra K. Verma, Chairman, organising and programme committee of Petrotech 2014.
“In this conference, all regulators, national oil companies, private operators, services and ancillary firms, form a combined platform to demonstrate India as a E&P destination,” he said.
Nearly 11 energy ministers from across the world are expected to fly down to the four-day event. Companies from more than 15 countries will participate in the event.
Petrotech 2014 is being jointly organised by the Oil and Natural Gas Corporation Ltd and the PETROTECH Society. The Minister of Petroleum and Natural Gas M. Veerappa Moily is its patron-in-chief.
Ranbaxy inks licensing pact with Epirus Switzerland
New Delhi: Drug maker Ranbaxy Laboratories has entered into a licensing agreement with Epirus Switzerland GmbH, the Swiss arm of Boston-based Epirus Biopharmaceuticals Inc, for introducing a biosimilar version (BOW015) of infliximab, a drug currently sold by Johnson & Johnson under brand Remicade for treatment of rheumatoid arthritis.
According to the agreement, the Swiss firm will develop and supply the product, and upon regulatory approval, Ranbaxy will market the same in India and other emerging markets, the Indian drug maker said in a statement on Thursday. Currently, no biosimilar of Infliximab approved in India. Biosimilar is the generic version of a biotechnology-based product.
According to experts, once Ranbaxy gets an approval and launches the product in India, the drug’s price is expected to come down significantly. The medicine, available in the form of injection, is priced at Rs 82,000 for a single course, sources said.
“We are pleased to partner with Epirus for biosimilar infliximab. We will utilise our strong front-end capabilities in making this product available in India and other parts of the world,” said Sanjeev I Dani, executive vice-president and head (global strategy) at Ranbaxy.
While there have been some domestic companies such as Biocon dedicated towards biotechnology products, recently even pharmaceutical companies such as Cipla, Ranbaxy and Lupin have turned their attention towards the segment.
Recently, Biocon secured approval in India for the first biosimilar version of Roche’s Herceptin, the world’s best-selling breast cancer drug. The biotech company had also jointly developed the product with US-based generic drug maker Mylan Inc.
Experts say some of the recent regulatory developments may have prompted the move. In mid-2012, the Department of Biotechnology along with the Drugs Controller General of India framed the guidelines for biotech products to be developed and marketed in the country. The norms outline data requirements for pre-clinical and clinical trials and also talk about pre-marketing and post-marketing data. Before this, there was no separate set of guidelines for biosimilars in India, and such drugs were approved on the basis of general guidelines.
According to the agreement, the Swiss firm will develop and supply the product, and upon regulatory approval, Ranbaxy will market the same in India and other emerging markets, the Indian drug maker said in a statement on Thursday. Currently, no biosimilar of Infliximab approved in India. Biosimilar is the generic version of a biotechnology-based product.
According to experts, once Ranbaxy gets an approval and launches the product in India, the drug’s price is expected to come down significantly. The medicine, available in the form of injection, is priced at Rs 82,000 for a single course, sources said.
“We are pleased to partner with Epirus for biosimilar infliximab. We will utilise our strong front-end capabilities in making this product available in India and other parts of the world,” said Sanjeev I Dani, executive vice-president and head (global strategy) at Ranbaxy.
While there have been some domestic companies such as Biocon dedicated towards biotechnology products, recently even pharmaceutical companies such as Cipla, Ranbaxy and Lupin have turned their attention towards the segment.
Recently, Biocon secured approval in India for the first biosimilar version of Roche’s Herceptin, the world’s best-selling breast cancer drug. The biotech company had also jointly developed the product with US-based generic drug maker Mylan Inc.
Experts say some of the recent regulatory developments may have prompted the move. In mid-2012, the Department of Biotechnology along with the Drugs Controller General of India framed the guidelines for biotech products to be developed and marketed in the country. The norms outline data requirements for pre-clinical and clinical trials and also talk about pre-marketing and post-marketing data. Before this, there was no separate set of guidelines for biosimilars in India, and such drugs were approved on the basis of general guidelines.
Cold chain logistics biz feasts on quick service restaurants, cos see 15-25% growth: Crisil
Mumbai: A fast-paced lifestyle and changing eating habits are not only fuelling expansion and growth of quick service restaurants (QSRs) across India, but also of the cold chain logistics industry, which helps food reach fast and fresh. With the growing number of QSRs in India, local cold chain companies like Kelvin Cold Chain, Gati, Crystal Logistics and Snowman are seeing their business balloon at a pace of anywhere between 15% and 25%.
"Quick service restaurants are a big opportunity. We have seen a growth of 25-30% in the last few years," said Manish Agarwal, vicepresident at Gati cold chain, which gets 15-20% of its Rs 45.8 crore annual revenue from this segment. It counts Dominos as one of its major clients.
Business coming from these standardised but quality-conscious food chains is expected to fuel tremendous growth in the next two years as Indian and foreign brands expand presence. Cold chain companies distribute and deliver food from centralised kitchens to outlets, where minimal cooking takes place.
Crisil expects the QSR market to double to about Rs 7000 crore in 2015-16 from Rs 3400 crore in 2012-13, driven largely by new store additions in smaller cities. "Expansion is an issue without cold chains. We give a standard experience to everyone across cities, and that is not possible without a strong supply chain network," said K Ramakrishnan, presidentmarketing at Cafe Coffee Day. Restaurateur Anjan Chatterjee, who runs restaurant chains such as Mainland China and Oh! Calcutta, says that cold chain logistics is a backbone of the food industry and is absolute necessity for the expansion of his BSE-listed Speciality Restaurants.
CCD's Ramakrishnan, however, pointed out the availability of good cold chains is limited in smaller towns. The need for cold chains is greater in smaller towns as infrastructure is poorer and maintaining quality is tougher. Currently, metro and mini-metro cities combined form over 90% of the QSR market, according to Technopak. These food chains are penetrating deeper into the country to gain from increasing urbanisation and aspirations of younger generation. Consumer spend on these fast food chains will rise due to rising nuclear families, steady growth in incomes, changing lifestyle and eating patterns.
"New products are being developed. New localised products are coming in. Quick service restaurants are adding more markets and choices for consumers are increasing," said Pankaj Joshi, CEO at Kelvin Cold Chain. The company currently caters to eight clients in the segment, including Papa John's and Baskin Robbins, which contribute to about 40% of the revenue of about Rs 32 crore.
"Quick service restaurants are a big opportunity. We have seen a growth of 25-30% in the last few years," said Manish Agarwal, vicepresident at Gati cold chain, which gets 15-20% of its Rs 45.8 crore annual revenue from this segment. It counts Dominos as one of its major clients.
Business coming from these standardised but quality-conscious food chains is expected to fuel tremendous growth in the next two years as Indian and foreign brands expand presence. Cold chain companies distribute and deliver food from centralised kitchens to outlets, where minimal cooking takes place.
Crisil expects the QSR market to double to about Rs 7000 crore in 2015-16 from Rs 3400 crore in 2012-13, driven largely by new store additions in smaller cities. "Expansion is an issue without cold chains. We give a standard experience to everyone across cities, and that is not possible without a strong supply chain network," said K Ramakrishnan, presidentmarketing at Cafe Coffee Day. Restaurateur Anjan Chatterjee, who runs restaurant chains such as Mainland China and Oh! Calcutta, says that cold chain logistics is a backbone of the food industry and is absolute necessity for the expansion of his BSE-listed Speciality Restaurants.
CCD's Ramakrishnan, however, pointed out the availability of good cold chains is limited in smaller towns. The need for cold chains is greater in smaller towns as infrastructure is poorer and maintaining quality is tougher. Currently, metro and mini-metro cities combined form over 90% of the QSR market, according to Technopak. These food chains are penetrating deeper into the country to gain from increasing urbanisation and aspirations of younger generation. Consumer spend on these fast food chains will rise due to rising nuclear families, steady growth in incomes, changing lifestyle and eating patterns.
"New products are being developed. New localised products are coming in. Quick service restaurants are adding more markets and choices for consumers are increasing," said Pankaj Joshi, CEO at Kelvin Cold Chain. The company currently caters to eight clients in the segment, including Papa John's and Baskin Robbins, which contribute to about 40% of the revenue of about Rs 32 crore.
FY14 marine product exports set to rise 23% to Rs 26,750 crore
Chennai: Export of marine products is expected to touch $4.3 billion (Rs 26,750 crore) in 2013-14, an increase of 23 per cent compared to a year ago. The increase comes despite the US, Canada and Japan’s stringent regulations in recent months. One major contributor to growth is new markets and another value-added products, said an officer at the Marine Products Export Development Authority, under the commerce ministry.
After announcing the 19th edition of the Indian International Seafood Show, January 10-12, in Chennai, Chairman Leena Nair said the Indian seafood sector had grown 20-22 per cent in three years, despite major hurdles. In the last two years, the sector saw the countervailing and anti-dumping duty by the US, as well as quality regulation from Canada and Japan.
N Ramesh, director, marketing, added the $4.3-billion goal during the current financial year was achievable.
Value-added products are gaining momentum, said Nair. These were five per cent of the seafood exports three years ago, but now are 17 per cent. The target is to increase it to 30 per cent and then 50 per cent in three-five years, said Ramesh. Abraham J Tharakan, president, Seafood Exporters Association of India, said over the years the sector had added capacity to export value-added products. India has been exporting these to China and Thailand, where they are converted into ready-to-eat and ready-to-cook products.
Ramesh said in two-three years the sector had entered markets such as Africa, Commonwealth of Independent States and southeast Asia. These form 16 per cent of the export turnover.
After announcing the 19th edition of the Indian International Seafood Show, January 10-12, in Chennai, Chairman Leena Nair said the Indian seafood sector had grown 20-22 per cent in three years, despite major hurdles. In the last two years, the sector saw the countervailing and anti-dumping duty by the US, as well as quality regulation from Canada and Japan.
N Ramesh, director, marketing, added the $4.3-billion goal during the current financial year was achievable.
Value-added products are gaining momentum, said Nair. These were five per cent of the seafood exports three years ago, but now are 17 per cent. The target is to increase it to 30 per cent and then 50 per cent in three-five years, said Ramesh. Abraham J Tharakan, president, Seafood Exporters Association of India, said over the years the sector had added capacity to export value-added products. India has been exporting these to China and Thailand, where they are converted into ready-to-eat and ready-to-cook products.
Ramesh said in two-three years the sector had entered markets such as Africa, Commonwealth of Independent States and southeast Asia. These form 16 per cent of the export turnover.
RBI allows NRIs to operate resident bank a/c on 'either or survivor' basis
An NRI can be a joint holder in more than one account, if she/he is a close relative of all the resident bank account holders
Mumbai: The Reserve Bank of India (RBI) has allowed non-resident Indians (NRIs) to operate resident bank accounts on “either or survivor” basis. According to RBI, banks may include an NRI close relative in existing / new resident bank accounts as joint holder with the resident account holder on “either or survivor” basis, subject to fulfillment of a few conditions.
Such accounts will be treated as resident bank accounts and will be subject to all the regulations applicable to a resident bank account. Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI relative shall not be eligible for credit to this account.
Besides, the NRI relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself. An NRI can be a joint holder in more than one account, if s/he is a close relative of all the resident bank account holders.
If due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorised as Non-Resident Ordinary Rupee (NRO) account according to the extant regulations, RBI said. The onus will be on the non-resident account holder to keep the bank informed to get the account categorised as NRO account and all such regulations as applicable to NRO account shall be applicable.
According to RBI, the joint account holder facility may be extended to all types of resident accounts including savings bank accounts. While extending this facility, the banks should satisfy itself about the actual need for such a facility and also obtain a declaration, duly signed by the non-resident account holder, said RBI.
Mumbai: The Reserve Bank of India (RBI) has allowed non-resident Indians (NRIs) to operate resident bank accounts on “either or survivor” basis. According to RBI, banks may include an NRI close relative in existing / new resident bank accounts as joint holder with the resident account holder on “either or survivor” basis, subject to fulfillment of a few conditions.
Such accounts will be treated as resident bank accounts and will be subject to all the regulations applicable to a resident bank account. Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI relative shall not be eligible for credit to this account.
Besides, the NRI relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself. An NRI can be a joint holder in more than one account, if s/he is a close relative of all the resident bank account holders.
If due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorised as Non-Resident Ordinary Rupee (NRO) account according to the extant regulations, RBI said. The onus will be on the non-resident account holder to keep the bank informed to get the account categorised as NRO account and all such regulations as applicable to NRO account shall be applicable.
According to RBI, the joint account holder facility may be extended to all types of resident accounts including savings bank accounts. While extending this facility, the banks should satisfy itself about the actual need for such a facility and also obtain a declaration, duly signed by the non-resident account holder, said RBI.
Subscribe to:
Posts (Atom)