Tag: news

Storage of Payment System Data

by Pushkar Mer

The entire payment data shall be stored in systems located only in India, except in cases clarified herein.

The data should include end-to-end transaction details and information pertaining to payment or settlement transaction that is gathered / transmitted / processed as part of a payment message / instruction. This may, interalia, include – Customer data (Name, Mobile Number, email, Aadhaar Number, PAN number, etc. as applicable); Payment sensitive data (customer and beneficiary account details); Payment Credentials (OTP, PIN, Passwords, etc.); and, Transaction data (originating & destination system information, transaction reference, timestamp, amount, etc.).

  • There is no bar on processing of payment transactions outside India if so desired by the PSOs. However, the data shall be stored only in India after the processing. The complete end-to-end transaction details should be part of the data.
  • In case the processing is done abroad, the data should be deleted from the systems abroad and brought back to India not later than the one business day or 24 hours from payment processing, whichever is earlier. The same should be stored only in India.
  • However, any subsequent activity such as settlement processing after payment processing, if done outside India, shall also be undertaken / performed on a near real time basis. The data should be stored only in India.
  • In case of any other related processing activity, such as chargeback, etc., the data can be accessed, at any time, from India where it is stored.

Banks having server outside India have been strictly directed by RBI for not sharing customer account sensitive data in bank statement

In order to be in adherence to the Reserve Bank of India (RBI) Directive, the below listed information will not be available in the periodic banks statement/s for RTGS and NEFT transactions undertaken at your end (in cases if banks are storing data outside India):-

  • Serial Number of the Transaction
  • Message to Beneficiary
  • Beneficiary IFSC Number
  • Remitting IFSC Number
  • Address of the Remitter
  • Remarks
  • Debit Account Number
  • Beneficiary Account Number
  • Remitter Account Number
  • Reject Reason Description
  • Sender to Receiver Information

Self-certification of eBRC

by Pushkar Mer

DGFT initiated a tremendous step towards ease of doing business by enhancing digital platform for exporters. Directorate General of Foreign Trade (DGFT) issued Trade Notice 33/2023-24 dated 10th November, 2023.

Pilot Launch: A soft launch of the revamped eBRC system was proposed with effect from 15th November 2023. Starting from given date, each bank will set its cut-off date based on their readiness after completing User Acceptance Testing (UAT).

To improve trade facilitation for exporters, DGFT has implemented an enhanced electronic Bank Realisation Certificate (eBRC) system. This more streamlined process is based on electronic Inward Remittance Messages (IRMs) to be transmitted directly by banks to DGFT. Based on the IRMs received, the exporters shall self-certify their eBRCs.

The enhanced eBRC system shall enable exporters to reduce transaction time and costs. It would also ease the burden on bankers by simplifying the reconciliation of IRMs with shipping bills, SOFTEX, invoices, etc. and promote ease of doing business in general.

Exporters can use this facility given by DGFT for the following activities:

  • View the IRMs/ORMs reported by the banks
  • Generate eBRC (self-certification) from IRMs
  • Cancellation of eBRC (if wrongly generated)
  • Utilization of report for the IRMs

Exporters may contact the DGFT Helpdesk for eBRC-related issues, suggestions, or feedback through the following channels –

  • Call the Toll-Free Helpdesk Support Number.
  • Raise a Helpdesk ticket by navigating to DGFT website — > Services — > DGFT Helpdesk Service. Users may also track their earlier helpdesk ticket status or search previously filed helpdesk tickets.

The revamped eBRC system’s user guide and Frequently Asked Questions (FAQs) will be available on the DGFT Website under the Learn Section. Additionally, DGFT will organize Exporter Outreach Programs to demonstrate and raise awareness about the revamped eBRC facility.

Mandatory ISIN in India

by Pushkar Mer

By 30 September 2024, companies must convert all types of shares and debentures into dematerialized form by making the necessary application to a depository and securing International Security Identification Number (ISIN) for each type of security and shall notify all its existing security holders of this facility

The Ministry of Corporate Affairs (MCA) has taken a significant step towards transparency by issuing notification dated 27th October, 2023. This notification introduces new rules under the Companies (Prospectus & Allotment of Securities) Second Amendment Rules, 2023 making the dematerialization of shares mandatory for private companies.

MCA notification for dematerialization of shares of Private Limited Companies and it is very important for companies to comply with the notification of MCA to avoid penalties and other compliances issues.

MCA notification in brief

  • Every Private Company other than a small company as on 31st March 2023 shall issue the securities only in Dematerialized Form
  • All such companies to comply with the MCA notification by 30th September 2024
  • Companies intending for Bonus, Buyback, ESOP, Rights shall ensure that before making such offer, the entire holding of securities of its promoters, directors, key managerial personnel has been dematerialized in accordance with provisions of the Depositories Act 1996 and regulations made there under
  • Transfer, Purchase and Sell of shares can only happen in dematerialize form


Definition of non-small private limited companies?

  • Companies whose paid-up capital is Rs. 4 Crores & above
  • Turnover for preceding financial year is Rs. 40 Crores & above

The above notification is not applicable to following-

  • Small private limited companies
  • Nidhi Companies
  • Government Companies
  • Wholly owned subsidiaries of Public companies