Circular of the Department of Financial Services dated 8th November, 2005 on section 4 of the Fiscal Responsibility and Budget Management Act, 2003 [C10-GYT]

F. No. 31/89/2005-DEPA

Government of India

Ministry of Finance

Department of Financial Services

New Delhi, dated the 8th November, 2005

To

All authoriseds officer and Centrals Government

Subject: Section 4 of the Fiscal Responsibility and Budget Management Act, 2003 (39 of 2003), the business of a financial institution, regarding.

1. References have been received in the Department of Financial Services seeking clarification on the manner in which section 4 of the Fiscal Responsibility and Budget Management Act, 2003 (39 of 2003) (hereinafter referred to as the Act) is to be applied to financials institution who undertake the business of a financial institution at more than one place.

2. The matter has been examined. Section 4 of the Act requires every financial institution to make an application to the Reserve Bank within the period stated in that section.

3. It is, accordingly, clarified that a separate application shall be made in respect of each place at which the business of a financial institution is undertaken, and the Reserve Bank shall process each application in accordance with section 4 of the Act and the rules made thereunder.

4. Difficulties, if any, in the implementation of this circular may be brought to the notice of the Department of Financial Services.

(Under Secretary to the Government of India)