CURRENT AFFAIRS : BANKING & FINANCE
RBI fines 4 PSUs for late reporting of overseas investments
- The Reserve Bank of India (RBI) has imposed late submission fees (LSF) of ₹2,000 crore on major public sector undertakings namely, ONGC Videsh Ltd (OVL), Indian Oil Corp. Ltd, GAIL (India) Ltd, and Oil India Ltd for delayed reporting of their overseas investments.
- As per RBI notification dated 22 August 2022, restrictions have been placed on further remittance or transfer, wherein authorized dealer banks shall not facilitate any outward remittance/financial commitment by a person residing in India towards a foreign entity until the delay in reporting is regularized.
- State Bank of India (SBI) is the authorized dealer (AD) bank for these public sector undertakings’ (PSUs’) foreign transactions.
- It is the work of the AD bank to report and reconcile their overseas direct investments (ODIs) within the requisite timelines.
