Being a faculty at a Bankers Training College, many a times I would refer the RBI master circulars for my sessions. Every time I found it a huge task. The language is complicated, Compound sentences were making it difficult to comprehend and above all the circulars are real lengthy. So I started simplifying them for my future consumption.
Why not share my work with others.
So my dear friends enjoy reading.
Acceptance of deposits by Indian companies from a person resident outside India for nomination as Director
section 160 of the Companies Act, 2013, a person who intends to nominate
himself or any other person as a director in an Indian company, is required to
place a deposit with the said company.
Keeping such deposits with an Indian company by
persons resident outside India, is a current account (payment) transaction and,
as such, does not require approval from RBI. All refunds of such deposits,
arising in the event of selection of the person as a director or getting more
than twenty five percent votes, shall be treated similarly.
Based on the RBI notification dated
13/4/2016. For further clarifications refer www.rbi.org.in