Shri G. Padmanabhan assumed charge as Executive Director of the Reserve Bank of India today. As Executive Director, Shri Padmanabhan will look after Department of Information and Technology, Department of Payment and Settlement Systems and Foreign Exchange Department.

The Government of India have announced the sale (re-issue) of (i) “8.07 percent Government Stock 2017” for a notified amount of ` 3,000 crore (nominal), (ii) “8.13 percent Government Stock 2022” for a notified amount of ` 6,000 crore (nominal) and (iii) “8.28 percent Government Stock 2027” for a notified amount of ` 3,000 crore (nominal) through price based auctions. The auctions will be conducted using uniform price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on July 8, 2011 (Friday).

Keeping in view the need to provide a window to facilitate refinancing of FCCBs by the Indian companies who may be facing difficulty in meeting the redemption obligations, the Reserve Bank, in consultation with the Government of India, has decided to allow the Indian companies to refinance/ restructure the outstanding FCCBs issued by them. Accordingly, Indian companies are permitted to raise fresh ECB/FCCB as per the extant ECB guidelines under the automatic route to refinance their outstanding FCCBs. Restructuring of FCCBs involving change in the existing conversion price is not permissible. Proposals for restructuring of FCCBs not involving change in conversion price will, however, be considered under the approval route depending on the merits of the proposal. Detailed instructions are contained in A. P. (DIR Series) Circular No.01 dated July 04, 2011 (www.rbi.org.in/scripts/NotificationUser.aspx?Id=6596&Mode=0) issued by the Reserve Bank of India.

The Reserve Bank of India has imposed a monetary penalty of ` 25.00 lakh (Rupees twenty five lakh only) on Citibank N.A., in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) of the Banking Regulation Act, 1949 for contravention of various guidelines and instructions relating to Know Your Bank (KYC)/Anti Money Laundering (AML) issued by the Reserve Bank of India. The failure in following the KYC/AML guidelines while opening accounts led to the perpetration of a fraud at its Gurgaon branch.