India Treasury Management Profile 2018 - Together we thrive - HSBC Global Banking and Markets
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India
Treasury Management
Profile 2018
Together we thrive
2 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 3
Contents Introduction and
Purpose
Introduction and Purpose 3 India
This is one of a series of Treasury Management Profiles designed for finance and treasury professionals worldwide. By providing a
Legal and Regulatory 6 snapshot of banking, payments and cash management in selected locations, these profiles can help treasury managers to make
informed decisions, manage risks effectively and take advantage of new opportunities. However, this information is not intended to
Taxation8 be comprehensive and does not constitute financial, legal, tax or other professional advice. Accordingly you should not act upon the
information contained in this document without obtaining your own independent professional advice. The materials contained in this
Banking16
document were assembled in April 2017 (unless otherwise dated) and were based on the law enforceable and information available
Payment Instruments 19 at that time.
Payment Systems 22
Facts and Figures
Cash Management 24
Capital/Other major cities: New Delhi/Mombai, Kolkata, Business hours: 09:30–17:30 (Mon–Fri)
Electronic Banking 27 Chennai, Hyderabad, Bangalore
Banking hours: 10:00–16:00 (Mon–Fri)
Area: 3,287,263km2
Trade Finance 28 Stock exchanges: National Stock Exchange of
Population: 1.34bn India (NSE), Bombay Stock
Useful Websites 30 Exchange (BSE)
Languages: English, Hindi, and 14 other
Indian dialects Leading share index: SENSEX, BSE-100,
S&P CNX Nifty
Currency: Indian rupee (INR)
Sectoral distribution Agriculture 17.4%,
Country telephone code: 91 of GDP (% of GDP): Industry 28.8%,
Source: https://www.cia.gov/library/
Weekend: Saturday and Sunday Services 46.2%
publications/resources/the-world-
factbook/index.html. (2016 estimate)
National holidays: 2018 — 13, 26, 27 Jan, 10, 24
Source: www.goodbusinessday.com. Feb, 1*, 10, 18*, 24, 29*, 30 Mar, * The date shown may vary by plus or minus one day. These dates are derived
by converting from a non‑Gregorian calendar (e.g., Muslim or Hindu) to the
2, 14, 28 Apr, 1, 12, 26, 29*
Gregorian calendar. Some of these dates cannot be determined in advance with
May, 9, 15*, 23 Jun, 14, 28 Jul, absolute accuracy, even by the governing authorities. In the case of Muslim dates
11, 15, 19*, 22*, 25 Aug, 8, 20*, in particular, the feast days are determined by the sighting of a new/full moon.
22 Sep, 2, 13, 27 Oct, 8*, 10,
20*, 24 Nov, 8, 22, 25 Dec
Government Head of state
Legislature Ram Nath Kovind, president since 25 July 2017.
Federal republic with a bicameral national legislature (Sansad)
composed of the Council of States (Rajya Sabha) and the People’s ®® The president is elected every five years.
Assembly (Lok Sabha).
Political leader
®® Rajya Sabha: up to 245 members are elected to serve six-year Narendra Modi, prime minister since 26 May 2014.
terms.
®® The prime minister is elected every five years.
®® Lok Sabha: 545 members are elected to serve five‑year terms.
The next federal elections are scheduled for 2019.
4 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 5
Country credit rating
Fitch Ratings rates India for issuer default as:
Term Issuer Default Rating
Short F3
Long BBB –
Long-term rating outlook Stable
Source: www.fitchratings.com, November 2017.
Exchange rate & Interest rate (%) Consumer inflation & GDP volume growth (%)
Economy
2016 2017
2011 2012 2013 2014 2015 80 80 12 12
Q4 Year Q1 Q2 Q3
Exchange rate* (INR/USD)** 46.670 53.437 58.598 61.030 64.152 67.425 67.195 67.011 64.458 64.288
60 60 9 9
Interest rate (discount rate) (%) 6.00**
9.00 8.75 9.00 7.75 6.75 6.75 6.75 6.50 6.25
Unemployment (%) NA NA NA NA NA NA NA NA NA NA 40 40 6 6
Consumer inflation*** (%) + 8.9 + 9.3 + 10.9 + 6.6 + 4.9 + 3.7 + 4.9 + 3.6 + 2.2 NA
20 20 3 3
GDP volume growth*** (%) + 6.3 + 5.4 + 6.2 + 6.9 + 8.0 + 6.1 + 7.1 + 5.7 NA NA
GDP (INR tr) 90 100 113 125 136 – 152 – – – 0 0 0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
GDP (USD bn) 1,931 1,862 1,924 2,046 2,116 – 2,260 – – –
Exchange rate (INR/USD) Consumer inflation %
GDP per capita (USD) 1,581 1,474 1,504 1,580 1,614 – 1,706 – – –
Interest rate (Discount rate) GDP volume growth %
BoP (goods/services/income) as % GDP – 6.4 – 8.4 – 5.9 – 4.5 – 4.1 – – 3.1 – – –
* Official rate. ** Period average. *** Year on year. Sources: IMF, International Financial Statistics, December 2017 and 2017 Yearbook. Sources: IMF, International Financial Statistics, November 2017 and 2017 Yearbook.
6 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 7
Legal and
Regulatory
Central bank Non-resident residents are permitted to use forward foreign exchange to hedge The RBI has issued additional related Rules and Notifications.
The Reserve Bank of India (RBI) operates in accordance with the Non-resident bank accounts are permitted in domestic currency. their own currency risk. Protection against fluctuations in AED,
Reserve Bank of India Act (1934) and the Banking Regulation Act Non-resident domestic currency accounts are freely convertible AUD, CHF, JPY, EUR, GBP and USD is available from the Export India is a member of the Asia/Pacific Group on Money Laundering
(1949). into foreign currency. Credit Guarantee Corporation of India. (APG) and has observer status with the Financial Action Task
Force (FATF) and the Eurasian Group on Combating Money
Bank supervision NRIs are permitted to hold foreign currency term deposit Residents can remit up to USD 250,000 each financial year for all Laundering and Financing of Terrorism (EAG).
The RBI’s Board for Financial Supervision supervises the banking accounts with local banks, with terms of between one and five capital or current transactions.
sector in India. Regional rural banks and most cooperative banks years. The accounts can be used to repatriate funds in any freely The Financial Intelligence Unit-India (FIU-IND), the country’s
are supervised by the National Bank for Agriculture and Rural convertible currency. Under the automatic route, borrowing without approval financial intelligence unit, is a member of the Egmont Group. The
Development, under the guidance of the RBI. is permitted for amounts between USD 100 million and FIU-IND reports directly to the Economic Intelligence Council
Reporting USD 750 million (USD 500 million for most sectors, which is headed by the Finance Minister.
Resident/non-resident status All foreign exchange transactions between residents and non- USD 750 million for infrastructure and manufacturing,
A company is considered resident in India if it has been registered residents must be reported to the RBI for balance of payments USD 200 million for software development and USD 100 million Account opening procedures require formal identification of the
under the Indian Companies Act 1956 (or other specified acts) or purposes. for micro finance activities). External commercial borrowing account holder and beneficial owners.
is controlled or managed wholly from within India. above these limits is possible with regulatory approval.
Banks are responsible for submitting transactions data to the Occasional customers must be identified for all transactions,
A non-resident company is one that is at least 60% owned by a RBI on behalf of their clients using official forms and supporting The proceeds from all external commercial borrowing domestic and cross-border, of INR 50,000 and above, whether in
non-resident or a Non-Resident Indian (NRI), i.e., someone with documentation. raised abroad for INR expenditure in India are required to be a single transaction, or a series of linked transactions.
Indian citizenship who resides outside India. immediately credited into an INR account with an authorised
Exchange controls Cash transactions exceeding INR 1 million, or its equivalent in
dealer.
Bank accounts India is a member of the Asian Clearing Union (ACU), which foreign currency, must be reported. Cash transactions exceeding
Resident aims to facilitate payments and promote trade among member Foreign exchange can be lent by resident companies to a wholly INR 1 million, or a series of transactions aggregating to a value
Foreign exchange accounts can be held by residents both countries. The ACU comprises Bangladesh, Bhutan, India, Iran, owned subsidiary or joint venture abroad. This is subject to a limit above INR 1 million (within one month), must be recorded and
domestically and abroad with prior approval from the RBI. Myanmar, Maldives, Nepal, Pakistan and Sri Lanka. Transactions of 400% of a company’s net worth. reported to the FIU-IND by the 15th day of the succeeding month.
Foreign exchange accounts held domestically are typically between Indian residents and residents of other ACU member
All export proceeds, including for businesses located within All cross-border wire transfers exceeding INR 500,000, or its
non‑interest‑bearing Resident Foreign Currency (domestic) countries, except Bhutan and Nepal, are carried out in AMU
Special Economic Zones, must be repatriated within nine months equivalent in foreign currency, must be recorded and reported.
accounts. There is no limit to the account balance, as long as dollars (equivalent to USD) or AMU euros (equivalent to EUR).
the account receives foreign exchange resulting from services of the shipment, unless permission has been given by the RBI.
Relationships with shell banks are prohibited.
delivered overseas, or acquired from non‑residents in India as ®® The Indian rupee (INR) is India’s official currency. Exporters are permitted to keep 100% of receipts in foreign
gifts or payments. Resident foreign exchange accounts held currency bank accounts. The Indian government does not regulate the hawala market.
abroad may be used to may remit up to USD 250,000 each year. Foreign exchange controls are administered by the RBI. India has
liberalised its exchange controls; the INR is freely convertible on Anti-money laundering/counter-terrorist financing1 Financial institutions are required to conduct ongoing due
Non-interest-bearing exchange earners’ foreign currency current accounts. India has implemented anti-money laundering legislation. Notable diligence and in the broadest sense must record and report
(EEFC) accounts can be held by residents. EEFC accounts legislation includes: suspicious transactions to the FIU-IND within seven working
may be credited with up to 100% of their foreign exchange Foreign exchange can be traded by authorised banks on a
days.
earnings and enable foreign exchange earners to save on forward basis. Residents are permitted to use forward foreign ®® The Prevention of Money Laundering Act 2002, effective since
conversion/transaction costs while undertaking foreign exchange exchange contracts to hedge foreign exchange risks. However, July 2005, as amended 2013; All records must be kept for at least five years from the cessation
transactions. EEFC accounts are typically used by companies they are only permitted to transact forward up to the eligible limit ®® The Unlawful Activities (Prevention) Order 2009; and of the transactions.
receiving foreign currency and/or making exports traded in (the higher of either the company’s most recent annual turnover ®® The Prevention of Terrorism Act 2003.
foreign currency. or the average of the previous three years’ turnover). 1.
Data as at April 2017.
Overdraft facilities are available to residents. Foreign institutional investors are also permitted to hedge
currency risk using forward foreign exchange transactions. Non-8 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 9
Taxation
1
Taking into account the Resident/non-resident
A company is resident in India in any tax year if it has registered
Corporate taxation
Resident companies are taxed on their worldwide income.
is a resident firm, an additional income tax of 10% (plus the
surcharge and cess) applies on dividend income received on or
under the Indian Companies Act 1956, other specified Acts/laws Foreign companies are chargeable to tax on the income derived after 1 April 2016, if the amount of dividends received exceeds
surcharge and cess, or if, during the relevant tax year, the control and management of
its affairs were situated wholly in India.
from Indian sources. INR 1 million per annum on a gross basis.
Indian-sourced income may include capital gains arising from the Dividends received from a foreign company generally are subject
the highest effective Tax authorities
®® Income Tax Department.
transfer of any share or interest in a company or entity registered
or incorporated outside India if the share or interest directly or
to corporation tax, with credit for any foreign tax paid. However,
dividends received by an Indian company from a foreign
rate is 34.61% for ®® Authority for Advance Rulings. indirectly derives its substantial value from assets located in India. company in which the Indian company holds at least 26% of the
Foreign-sourced income derived by a resident company is subject equity shares, are subject to tax at a reduced base rate of 15% on
Tax year/filing to corporation tax in the same way as Indian income. A branch of the gross income. A surcharge and cess also are imposed.
domestic companies The corporation tax year is based on earnings during the financial
year ending 31 March.
a foreign corporation is taxed as a foreign corporation.
Dividends paid by a domestic company that are liable to DDT
Domestic companies are liable to tax at 30%, and foreign may be reduced by:
and 43.26% for foreign Taxes on income in a fiscal year are usually paid in the next fiscal
year (assessment year). Companies must submit a final return
companies and branches of foreign companies at 40%. A
25% rate, plus surcharge and cess, may be elected by certain ®® The amount of dividends received from a domestic subsidiary
by 30 September (30 November for companies required to file company during the financial year, if the subsidiary has paid
companies.
newly set up (incorporated on or after March 1, 2016) resident
a certificate on international transactions (see Transfer pricing manufacturing companies, if the company does not claim certain DDT; and
section) of the assessment year, stating income, expenses, specified deductions, incentives, etc. The rate is 29%, plus ®® Dividends received from a foreign subsidiary company,
taxes paid and taxes due for the preceding tax year. Returns surcharge and cess, for resident companies whose total turnover provided tax is payable on such dividend income by the
for non-corporate taxpayers, who are required by law to have or gross receipts in the financial year 2015–16 did not exceed domestic company at the reduced base rate of 15%.
their accounts audited, are also due on 30 September. All other INR 50 million.
taxpayers must submit a return by 31 July. Taxpayers claiming tax A Minimum Alternate Tax (MAT) is imposed at 18.5% (plus any
holidays or carrying forward tax losses must file their returns on ®® A 7% surcharge applies to domestic companies whose income applicable surcharge and cess) on the adjusted book profits
or before the due date. exceeds INR 10 million (2% for foreign companies). of corporations whose tax liability is less than 18.5% of their
®® A 12% surcharge applies if income exceeds INR 100 million book profits. As from 1 April 2015, MAT does not apply to
Companies must make four advance payments of their income (5% for foreign companies). certain income of foreign companies, including capital gains
tax liabilities during the accounting year on: 15 June (15% of ®® An additional 3% cess is payable in all cases. on transactions involving securities, interest, royalties and fees
total tax payable), 15 September (45% of total tax payable), for technical services (the government has announced it will
15 December (75% of total tax payable) and 15 March (100% of Taking into account the surcharge and cess, the highest effective retroactively amend the MAT provisions to clarify the applicability
total tax payable). rate is 34.61% for domestic companies and 43.26% for foreign to foreign companies prior to 1 April 2015). A credit is available
companies. for MAT paid against tax payable on normal income, which may
Consolidated returns are not permitted and each company must be carried forward for offset against income tax payable in the
file a separate return. Dividends paid by a domestic company are subject to dividend following ten years.
distribution tax (DDT) at 15% of the aggregate dividend declared,
distributed or paid. The DDT payable is required to be grossed up. Any person other than a corporation (including a Limited Liabililty
The effective rate is 20.3576%, including a 12% surcharge and a Partnership) is liable to an alternate minimum tax (AMT) at 18.5%
3% education cess. Dividends subject to DDT are exempt from (plus any applicable surcharge and cess) of the adjusted total
tax in the hands of the recipient. However, where the recipient income where the normal income tax payable is less than the
1.
All tax information supplied by Deloitte Touche Tohmatsu (www.deloitte.com) and
Deloitte Highlight, 2017.10 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 11
AMT. AMT is also imposed on a person eligible for investment- a slurry pipeline for the transportation of iron ore; and setting up
Withholding tax (subject to tax treaties)
linked incentives. The adjusted total income is the total income and operating a semi-conductor wafer fabrication manufacturing
before giving effect to the AMT provisions as increased by certain unit. Technical
Payments to: Interest Dividends Royalties Branch remittances
deductions claimed in computing the total income, including the service fees
tax holiday claimed by units in a Special Economic Zone (SEZ). A deduction of 150% (reduced to 100% as from financial
year 2017–18) is available for capital expenditure (other than Resident companies 10% None 10% 10% NA
The base for computation of AMT for non-corporate taxpayers
therefore differs from that for computing MAT in the case of expenditure incurred on the acquisition of land, goodwill or Non-resident companies 5%/20% None 10% 10% None
corporations. financial instruments) incurred by businesses on setting up and
operating cold chain facilities or warehousing facilities; building
A credit is available for MAT paid against tax payable on normal and operating a hospital with 100 beds; investing in housing
income, which may be carried forward for offset against income projects under a scheme for affordable housing; or producing Business losses and capital losses may be carried forward for The applicable tax rate on long-term capital gains derived by a
tax payable in the following ten years. fertilisers in India. eight years, with short-term losses offsetting capital gains on both non-resident from the sale of unlisted securities is 10%. Gains on
long-term and short-term assets, and long-term losses offsetting other long‑term assets are taxed at 20% (with the benefit of an
A deduction of up to 200% (restricted to 150% as from financial An investment-linked incentive of a 100% deduction for certain only long-term gains. Other than unabsorbed depreciation (which inflation adjustment).
year 2017–18 and 100% as from financial year 2020–21) is expenditure relating to new infrastructure facilities is available as may be carried forward indefinitely), losses may be carried
available in respect of capital and revenue expenditure on from financial year 2017–18. forward only if the tax return is filed by the due date. Unabsorbed Short-term gains on listed shares and specified securities, which
scientific research conducted in-house by specified industries, depreciation may be offset against any income, whereas business are subject to the STT, are taxed at 15%, and gains from other
and for payments made to specified organisations for Capital expenditure incurred either prior or post-commencement losses may be offset only against business profits. short-term assets are taxed at the normal tax rates. A surcharge
scientific research. of business and actually paid for the right to use spectrum for and cess are also imposed.
telecommunications services (spectrum fees for auction of Advance tax ruling availability
A deduction is available for 15% of the cost of new plant or airwaves) will be allowed as deduction over the period of the right The Authority for Advance Rulings (AAR) issues rulings on the tax An unlisted domestic company is liable to pay an additional tax of
machinery acquired and installed on or before 31 March 2017, to use the spectrum. consequences of transactions or proposed transactions with non- 20% on any income distributed to a shareholder on account of a
where the aggregate cost acquired and installed in a year residents. It is also able to issue rulings in relation to tax liability of buyback of the company’s shares. The distributed income is the
exceeds INR 250 million, in addition to the normal depreciation A deduction of 100% of the profits derived by an eligible start-up residents in prescribed cases. amount of consideration paid by the company on the buyback
allowance. from an eligible business may be elected by the taxpayer for of shares, reduced by the amount received by the company on
any three consecutive assessment years out of the five years From 1 April 2015, the AAR is able to issue rulings on whether account of the issue of the shares. The shareholders will not be
A deduction of 150% is available for expenditure incurred on a beginning from the year of incorporation (for companies set up on an arrangement is an impermissible avoidance arrangement. charged for any income arising from the buyback of shares.
‘notified’ agricultural extension or skill development project. or after 1 April 2016 and before 1 April 2019). Rulings are binding on the applicant and the tax authorities for
the specific transaction(s). Advance pricing agreements (APAs) Withholding tax (subject to tax treaties)
A deduction of 100% is available for capital expenditure (other A patent box regime has been introduced with effect from are also possible. Interest
than expenditure incurred on the acquisition of land, goodwill financial year 2016–17. A concessional tax rate of 10%, plus the Interest paid to a non-resident on a foreign currency borrowing
or financial instruments) incurred by specified businesses, surcharge and cess, is applicable on gross income arising from Capital gains tax or debt is generally subject to a 20% withholding tax, plus the
including laying and operating cross-country natural gas or crude royalties in respect of a patent developed and registered in India The tax treatment depends on whether gains are long or short applicable surcharge and cess. The rate may be reduced under a
or petroleum oil pipeline networks for distribution (including by a person resident in India. No deduction is allowed for any term. Gains are long term if the asset is held for more than three tax treaty.
integral storage facilities); setting up and operating an inland expenditure or allowance in respect of such royalty income. years (one year in the case of shares and specified securities).
container depot or freight station; housing projects under a slum Long-term gains on listed shares and specified securities are Interest paid to a non-resident on an infrastructure debt fund set
redevelopment scheme; building and operating a two-star hotel; Undertakings set up in SEZs are exempt from tax on their export exempt if the transaction is subject to the Securities Transaction up in accordance with guidelines prescribed by the government
beekeeping and associated activities; setting up and operating profits, subject to compliance with other conditions. Other tax Tax (STT). Where such gains are not subject to the STT, a 10% tax is subject to a 5% withholding tax, plus the applicable surcharge
a warehousing facility for storage of sugar; laying and operating holidays are available based on industry and region. applies (without benefit of an inflation adjustment). and cess.12 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 13
Interest paid to a non-resident on debt incurred under a loan Technical service fees The scope of the transfer pricing provisions also covers specified adjustment. The allowable variation in computing the arm’s-
agreement or through the issue of long-term bonds, including Technical services fees paid to a non-resident are subject to a domestic transactions’ (including payments to related parties) length price will be as provided by the government. (See below,
long-term infrastructure bonds issued by an Indian company 10% withholding tax, plus the applicable surcharge and cess. The if the aggregate value of those transactions exceeds INR 200 for application of the transfer pricing rules to transactions
in foreign currency, is subject to a 5% withholding tax, plus the rate may be reduced under a tax treaty. million in one year. involving jurisdictions that do not effectively exchange
applicable surcharge and cess, if the loan agreement is approved information with India.)
by the central government and the funds are borrowed between If a treaty applies, but the non-resident does not have a PAN, The pricing of these transactions must be determined with regard
1 July 2012 and 30 June 2017. The 5% withholding tax (plus tax must be withheld at the applicable tax treaty rate or 20%, to arm’s-length principles, using methods prescribed under India’s APAs may be obtained for a maximum period of five future years,
applicable surcharge and cess) is also applicable to interest paid whichever is higher. transfer pricing rules, which are similar to the methods prescribed with a rollback to the four years preceding the year in which APA
between 1 June 2013 and 31 May 2015 on an INR-denominated in the OECD guidelines, with an additional sixth method, i.e. an becomes effective.
bond of an Indian company, or a government security subscribed Tax treaties/tax information exchange agreements (TIEAs) ‘other method.’ The arm’s-length price is determined based on
for by a foreign institutional investor or a qualified foreign India has double tax agreements in force with several countries multiple‑year data, and based on a range or the arithmetic mean General anti-avoidance and disclosure requirements
investor. that allow qualifying companies the benefit of reduced rates (depending on certain prescribed conditions). To discourage transactions with persons located in jurisdictions
of withholding tax and the mitigation of double taxation. The that do not effectively exchange information with India,
If the non-resident does not have a Permanent Account Number law specifically provides that tax treaties override local tax law The taxpayer is required to maintain detailed information and transactions with persons situated in certain jurisdictions
(PAN), i.e. a tax registration number, tax must be withheld at the wherever they are more beneficial. transfer pricing documents substantiating the arm’s-length nature designated by the government will be subject to the Indian
applicable tax treaty rate or 20%, whichever is higher, unless the of related-party transactions. Companies also may be required to transfer pricing rules and income paid to persons in those
foreign taxpayer provides appropriate documentation. The Finance Act 2013 provides that the condition of the certificate submit a certificate to the tax authorities (in prescribed format) jurisdictions will be subject to a minimum withholding tax of 30%.
containing particulars has been dropped and that the non- from a practising chartered accountant that sets out the details India has designated Cyprus as such a jurisdiction.
If the interest income derived by a non-resident does not fulfil resident should furnish a certificate of residence obtained from of associated enterprises, international transactions, etc., along
certain prescribed conditions for concessional withholding tax the government of that country or specified territory. Further, the with the methods used to determine an arm’s‑length price. The A general anti-avoidance rule is expected to apply to investments
rates, a withholding tax rate of 30% (for individuals and entities Finance Act provides that the non-resident will have to provide certificate must be submitted by the due date for companies made after 1 April 2017.
other than a foreign company) or 40% (for a foreign company), such other documents and information as may be prescribed. required to submit such a certificate to file the annual tax return,
plus the applicable surcharge and cess, will apply. i.e. 30 November. A non-resident with a liaison office in India is required to prepare
Specific measures were introduced with regard to unaccounted financial statements, annual activity certificates, etc. on its
Dividends monies held outside India by resident Indians. The Indian transfer pricing documentation requirements have activities and submit this information to the Indian tax officer
Dividends are not subject to withholding tax. However, the been updated to incorporate the specific reporting regime in within 60 days from the end of the financial year.
company paying the dividends is subject to dividend distribution India has exchange of information relationships with 117 respect of country-by-country reporting and the master file
tax. jurisdictions through 98 double tax treaties and 20 TIEAs. provided for under the OECD/G20 BEPS project. (Under the Stamp duty
BEPS initiative, information will be exchanged between tax Financial instruments, real property and other specified
Royalties Thin capitalisation transactions (including a court order for an amalgamation/
administrations in a number of countries, giving them a single,
Royalties paid to a non-resident are subject to a 10% withholding There are no thin capitalisation rules. demerger) in India attract stamp duties that are levied under the
global picture on some key indicators of economic activity within
tax, plus the applicable surcharge and cess. The rate may be multinational enterprises). Indian Stamp Act and the stamp acts of the various states (with
Transfer pricing rates varying significantly between states).
reduced under a tax treaty.
The transfer pricing regime is influenced by OECD norms,
Where the application of the arm’s-length price would reduce
If a treaty applies, but the non-resident does not have a PAN, although the penalty provisions in India are stringent compared to Real property tax
the income chargeable to tax in India, or increase a loss, no
tax must be withheld at the applicable tax treaty rate or 20%, those in other countries. The definition of ‘associated enterprise’ Each state levies property tax, with rates varying from state to
adjustment will be made to the income or loss. If a taxpayer
whichever is higher, unless the foreign taxpayer provides extends beyond a shareholding or management relationship, as it state.
that benefits from a tax holiday is subject to a transfer pricing
appropriate documentation. includes some deeming clauses.
adjustment, the benefit will be denied to the extent of the14 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 15
Wealth tax (CVD), Special Additional Duty of Customs (SAD), central charges
The 1% wealth tax was abolished from 1 April 2015. and cesses and local state taxes, i.e., Value Added Tax (VAT),
Central Sales Tax (CST), Octroi, Entry Tax, Purchase Tax, Luxury
Transfer tax Tax, Taxes on lottery, betting and gambling, state cesses and
Securities transaction tax is levied on the purchase or sale of surcharges and Entertainment tax (other than the tax levied by
equity shares, derivatives or units in an equity‑oriented fund listed the local bodies).
on a recognised stock exchange of India.
GST will be a dual levy with State/Union territory GST and Central
Customs duty GST. Inter-state supplies will attract an Integrated GST, which
Customs duty is levied on the import of goods into India, would be the sum total of CGST and SGST/UTGST.
although certain exported goods also are liable to custom duties.
Certain incentives (e.g. concessional rates of duty and duty-free There are five GST rates: 0%, 5%, 12%, 18% and 28%.
transactions) are available under various schemes.
Financial transactions/banking services tax
Excise duty Financial transactions such as lending, bill discounting and
Excise duty is payable on the manufacture of excisable goods in financial leasing are subject to service tax. However, tax is
India. The rate of duty applied to a product depends on its excise generally applicable on the up‑front fees, processing charges and
tariff classification. The duty is normally levied on the transaction other service charges levied by the bank or financial institutions,
value, and in specified cases on the retail sales prices. The but excluding the interest element. However, since service tax is
standard rate of excise duty is currently 12.5% (inclusive of cess). a transaction-based tax, it is important to evaluate transactions to
determine the indirect tax implications.
A credit mechanism is available to avoid the cascading effect of
central excise duty. Payroll and social security taxes
There is no payroll tax payable by employers. The employer
Cash pooling generally contributes 12% of eligible wages per month to the
India has no specific tax rules for cash pooling arrangements. It is Provident Fund. From the employer’s contribution, 8.33% of the
understood that notional cash pooling is not available in India, so wages (up to INR 15,000) is applied to the pension fund, with the
cash pooling should involve the actual physical transfer of funds. balance paid to the Provident Fund.
Cash pooling tax issues that may need to be considered include
deemed dividends withholding tax on interest and the application The employer also pays a gratuity to workers who have rendered
of transfer pricing rules to domestic transactions for interest and continuous service for at least five years at the time of retirement,
guarantee fee, if any. resignation, superannuation, etc., at the rate of 15 days’ wages
for every completed year of service (up to a maximum of
Goods and Services Tax (GST) INR 1 million).
A comprehensive dual Goods and Services Tax (GST) replaced
the country’s indirect tax structure from 1 July 2017. The GST is The employee contributes 12% of eligible wages per month to the
a destination-based tax that replaces the current Central taxes Provident Fund.
and duties such as Excise Duty, Service Tax, Counter Vailing Duty16 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 17
Banking
1
The government has Overview
There are 1,719 banks and 1,574 urban cooperative banks
The RBI is also considering offering licences to companies to
set up infrastructure banks to help finance USD 1.5 trillion in
Major banks
operating in India. There are also 46 foreign-owned banks, infrastructure projects. These ‘wholesale and long-term finance’ Total assets (USD millions)
instructed that all
Bank
operating a total of 325 branches, 26 private banks, 25 public banks would be exempted from opening branches in rural areas 31 March 2017
sector banks and 56 rural or regional banks. and would not be obliged to extend loans to the agricultural
State Bank of India 531,122
banks enable mobile
sector.
Regulatory changes permit foreign banks to covert their branches ICICI Bank 152,015
into Indian subsidiaries; at present, just four foreign banks have In 2015, 23 new banks were granted banking licences: two
HDFC Bank 137,569
and online banking
applied to set up wholly owned subsidiaries in India. universal banks (IDFC Bank and Bandham Bank), 11 payment
banks and ten small finance banks (eight of these are micro- Punjab National Bank 113,052
Although India has a diversified financial sector, its banking sector finance institutions). Payment banks are permitted to take
across all accounts. is dominated by state-owned or controlled banks. Three of the
top five banks in India have majority government ownership:
deposits and facilitate transactions only. Small finance banks
operate on the same basis as the larger universal banks, but
Bank of Baroda 110,880
Source: www.accuity.com, November 2017.
State Bank of India (61.6%), Bank of Baroda (54.3%) and Punjab serve the more marginalised sections of India’s population and
In April 2017, mobile National Bank (57.8%). State-run banks control approximately
64% of the banking sector’s total assets.
business. As of December 2017, four of the payment banks had
launched operations: India Post Payments Bank, Airtel Payments
banking services
Bank India-Paytm Payment Bank, and FINO Payment Bank. Eight
There are 142,180 branches operating throughout India; public of the ten small finance banks are operational to date.
sector banks account for approximately 52.6% of these. Fifty per
were provided by
cent of the population is unbanked. Demonetisation and the ambitious push by the government and
RBI towards digital payments, via the Digital India programme, is
In 2016, the RBI ended its policy of issuing bank licences during driving the strategic transformation of the banking sector in India.
240 banks. specific windows, declaring that it would be permanently open to
applications for banking licences. The move comes as the central
The volume of digital transactions increased to
6.38 million, with a value of INR 2,425 crore in March 2017,
bank and government push for greater competition in the banking compared with 280,000 transactions, with a value of INR 101
sector. The Indian government has announced plans to reduce its crore in the nine months to November 2016.
stake in state-run banks as part of general disinvestment plans
across various industries; at present, government holdings in In March 2017, the government instructed that all banks enable
public sector banks are not permitted to fall below 50%. mobile and online banking across all accounts. In April 2017,
mobile banking services were provided by 240 banks.
A major plan to consolidate the number of public sector banks
was announced in 2016, which, if realised, would see the number State Bank of India has announced the launch of SBI Digi Bank,
of such institutions drop from 27 to just six (Canara Bank and a digital-only bank, in late 2017 (it already operates InTouch
Bank of India (BoI), State Bank of India, Punjab National Bank, branches, digital branches for instant account opening and
Union Bank and Bank of Baroda). On 1 April 2017, the State Bank customer advice via video etc.). Paytm, the country’s leading
of India’s five associate banks (State Bank of Bikaner and Jaipur, mobile payments company, launched its digital bank, Paytm
State Bank of Mysore, State Bank of Travancore,State Bank of Payments Bank in May 2017. Airtel Payments Bank launched a
Patiala and SBH State Bank of Hyderabad) were merged into the pilot of its digital bank in November 2016.
parent company.
1.
Reserve Bank of India.18 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 19
Payment
1
Instruments
Payment statistics
Millions of transactions % change Traffic (INR billions) % change
2015–16/ 2015–16/
2014–15 2015–16 2014–15 2014–15 2015–16 2014–15
Cheques 1,196.5 1,096.4 – 8.4 85,434.1 81,860.7 – 4.2
Credit transfers
– high-value* 92.8 98.4 6.0 929,332.9 700,899.8 – 24.6
– low-value** 1,383.2 2,696.0 94.9 63,043.9 88,134.4 39.8
Debit cards 7,804.6 9,247.0 18.5 23,492.7 26,960.6 14.8
Credit cards 619.4 791.7 27.8 1,922.6 2,437.0 26.8
Direct debits 226.0 224.7 – 0.6 1,739.8 1,651.5 – 5.1
e-Money 314.5 748.0 137.8 213.4 487.6 128.5
* Customer transactions via RTGS. Source: Reserve Bank of India, Payment System Indicators.
** ECS CR, NEFT and NACH transactions.
Cash
Credit transfers
Cash remains the most important payment medium in India,
All credit transfers in India are automated.
particularly for low‑value and medium-value retail transactions.
®® High-value (greater than INR 200,000) and urgent credit
The Indian government is keen to establish a cashless society and
transfers are cleared and settled via the national RTGS system,
is pursuing an ambitious digital payments plan in order to achieve
in near real time.
this. In November 2016, it launched a demonetisation policy
which removed 86% of the currency in value terms overnight. ®® Low-value, non-urgent and high-volume credit transfers are
A limit on cash withdrawals from ATMs further reduced how processed via the ECS on a same-day or next-day basis. Low-
much cash was in circulation. The limits on cash withdrawals value credit transfers include payroll, supplier and third-party
were removed on 13 March 2017, and, despite a surge in digital payments.
payments, the volume of cash withdrawals at ATMs remains high. ®® Low-value and high-volume credit transfers can also be
processed via the NACH on a same-day basis. The NACH’s
In its 2017–18 budget, the government stipulated that all cash Aadhaar Payments Bridge System (APBS) connects banks
transactions exceeding INR 300,000 would be prohibited. with a number of government departments to facilitate
the distribution of financial benefits via electronic credit
transfer. From 1 May 2016, NACH mandates replaced all ECS
mandates for all recurring payments such as credit card and
utility bills.20 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 21
®® One-to-one electronic payments can be made via the ECS, the % volume of all % value of all The volume of pre-paid card transactions has increased threefold
NACH or NEFT for same‑day or next-day value. cashless payments 2015-16 cashless payments 2015-16 since demonetisation although the value of transactions has
fallen as card use habits have changed: cards are increasingly
Credit transfers accounted for just 10.3% of the volume of all used to purchase low-value items such as groceries, rather than
cashless payments in 2015–16, but 88.7% of the value. more luxury items. In December 2016, the RBI permitted pre-
Credit Transfers 10.3% Credit Transfers 88.7% paid card issuers to issue cards in bulk to companies in order to
Direct debits replace cash salaries with electronic payments and encourage
Direct Debits 1.7% Direct Debits 1.0%
Direct debits are available in India for low-value recurring greater adoption of digital payments.
Debit Cards 68.5% Debit Cards 2.9%
payments such as utility bills.
Credit Cards 5.9% Credit Cards 0.2%
The volume and value of pre-paid card transactions increased
Direct debits are processed through the ECS on a T+1 basis. Cheques 8.1% Cheques 8.0%
143.5% and 143.6% respectively in 2015–16 on the previous
E-Money 5.0% E-Money Negligible
financial year.
In 2015–16, direct debits accounted for just 1.7% of the volume
of all cashless payments, and less than 1% of the value. Source: Reserve Bank of India, Payment System Indicators.
Mobile wallets are available and increasingly popular in India.
There were 603 million mobile wallet transactions in India during
Cheques
the 2015–16 fiscal year, up from 255 million for the previous
The cheque remains a popular cashless payment instrument for Card payments same-day or next‑day basis. The Clearing Corporation of India 12-month period. The value of mobile wallet transactions over the
both retail and commercial payments. Payment cards, particularly debit cards, are a popular (CCIL) is the settlement agency for all transactions routed via same period was INR 205.8 billion, up from INR 82 billion for the
method of payment in India. Credit and debit card payments the NFS. previous 12-month period.
All cheques are truncated into electronic items before being accounted for 5.9% and 68.5% of the volume of all cashless
processed via the CTS. The CTS divides India into three payments respectively in 2015–16; the value of credit and Visa payments are routed via the Visa switch for settlement Mobile wallet transactions have risen dramatically since the
centralised clearing areas (Southern, Western and Northern debit card transactions over the same period was 0.2% and through Bank of America. MasterCard payments are routed government’s demonetisation programme. A lack of POS
Grids). Cheques drawn on bank branches falling within the same 2.9% respectively. through the MasterCard switch before being settled by the terminals to carry out card payments is also fueling mobile wallet
grid jurisdiction are treated and cleared as local cheques and can Bank of India. Visa and MasterCard payments are cleared on a growth. In December 2016, the RBI increased the limit of money
be settled on a same-day basis. There were 29.1 million credit cards and 840 million debit cards next-day basis. that can be stored on a mobile wallet to INR 20,000, up from
in circulation in February 2017. The volume of credit and debit INR 10,000.
Speed Clearing facilitates the processing of non-local ‘outstation’ card payments in the year to February 2017, grew by 41% and There are approximately 235,628 ATMs and
cheques. By removing the need for the physical transportation 140% respectively. The value of payments over the same period 1.5 million POS terminals in India. It is the government’s The Unified Payments Interface (UPI), launched in 2016, enables
of cheques, Speed Clearing has reduced the maximum clearing increased by 38% and 177% respectively. Demonetisation intention to increase the number of Aadhaar POS terminals mobile-to-mobile funds transfers between mobile apps of
time for non-local cheques from 20 days to two days. Non-local and the withdrawal of the service tax on credit and debit card to two million by end 2017. The volume and value of POS different banks. The UPI@PoS app can be used to make retail
cheques that are not subject to Speed Clearing can take between transactions of up to INR 2,000, has resulted in a spike in card transactions via payment card increased 37% and 28.4% in payments in-store. Apps, including BHIM, Samsung Pay, Paytm,
five days and three weeks to clear. payments. 2015–16 on the previous financial year. MobiKwik and BharatQR, among others, are also available.
Banks use courier services for cheque collection in areas where Visa and MasterCard are the principal payment card brands A total of 103 banks participate in the NFS ATM network. A In April 2017, BHIM Aadhaar was launched, enabling transactions
they do not have branch coverage. These cheques are cleared at issued. RuPAY is India’s domestic payment card system operated further 681 banks participate as sub-members. to be made using only the payer’s fingerprint for authentication.
local clearing houses through correspondent or partner banks. by the National Payments Corporation of India (NPCI). There are In the same month, Amazon India secured a licence to operate a
approximately 300 million RuPay debit cards in circulation. Electronic wallets
Cheques accounted for 8.1% of the volume of all cashless mobile wallet.
Electronic money schemes in the form of reloadable pre‑paid
payments in 2015–16, and 8% of the value. Most debit and credit card payments are processed by the cards are available and popular. Pre-paid cards can we used to
National Financial Switch (NFS), operated by the NPCI, on a withdraw funds at ATMs, to make online transactions and at
1.
Reserve Bank of India, Payment System Indicators.
POS terminals. The maximum value that can be stored on a pre-
paid card is INR 50,000. Forty-eight banks offer pre-paid cards.22 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 23
Payment
1
Systems
Type ®® The NACH processed 1,404.08 million transactions in 2015–16, Transaction types processed
Currency centre holidays
The RTGS, India’s national real-time gross settlement (RTGS) with a value of INR 3,801.83 billion, a 312.8% and 211.1% The RTGS system processes high-value (above INR 200,000)
system, is operated by the RBI. More than 120,000 bank increase respectively on 2014–15 figures. and urgent INR-denominated interbank transfers. In addition, the 2018 13, 26, 27 Jan, 10, 24 Feb, 1, 10, 18*,
branches in over 30,000 cities provide RTGS services. RTGS effects the final settlement of participants’ net balances 24, 29*, 30 Mar, 2, 14, 28 Apr, 1, 12, 26,
NEFT (National Electronic Funds Transfer) is a deferred net originating from India’s other clearing houses. 29* May, 9, 15* 23 Jun, 14, 28 Jul,
®® The RTGS processed 98.34 million transactions in 2015–16, settlement system operated by the RBI. NEFT processes 11, 15, 19*, 22*, 25 Aug, 8, 20*, 22 Sep,
with a value of INR 1,035,551.6 billion, a 6.0% and 11% transactions using a standardised financial message format The CTS processes all cheque payments. 2, 13, 27 Oct, 8*, 10, 24 Nov,
increase respectively on 2014–15 figures. known as the Structured Financial Messaging System (SFMS). 8, 22, 25 Dec
Funds are available to beneficiaries on a same or next-day basis, The ECS processes low-value and non-urgent bulk electronic
The CTS (cheque truncation system) processes all cheque credit and debits. There is no value threshold. * The date shown may vary by plus or minus one day. These dates are derived by
depending on the location of both banks. converting from a non-Gregorian calendar (e.g., Muslim or Hindu) to the Gregorian
payments in India. The CTS uses a grid-based system to divide calendar. Some of these dates cannot be determined in advance with absolute
cheque clearing into three centralised areas, removing the need ®® NEFT processed 1,252.9 million transactions in 2015–16, NEFT processes one-off, low-value electronic credit transfers. accuracy, even by the governing authorities. In the case of Muslim dates in particular,
for individual clearing houses, and facilitating the same-day with a value of INR 83,273.1 billion, a 35% and 39% increase Cash-based remittances and individual transfers to Nepal are the feast days are determined by the sighting of a new/full moon.
settlement of cheques drawn on bank branches falling within respectively on 2014–15 figures. restricted to INR 50,000. From 1 May 2016, NACH mandates
Source: www.goodbusinessday.com.
the same grid jurisdiction. Cheques drawn on bank branches in replaced ECS mandates for all recurring payments such as credit
different clearing grids can take as long as three weeks to clear, The Bharat Bill Payment System (BBPS) launched operations card and utility bills.
depending on the participants’ locations and the number of banks in 2016. The BBPS, operated by the NPCI, processes electronic cleared as local cheques and can be settled on a same-day
involved in the transaction. The CTS is operated by the NPCI. GIRO payment throughout India. Bill payments can be made via Operating hours basis.
a number of channels, including online, via mobile, POS terminal The RTGS service window operates 08:00 to 20:00, Monday to ®® The Speed Clearing system, for the collection of outstation
®® The CTS processed 958.4 million transactions in 2015–16, with or ATM. There are 23 banks permitted to operate as Bharat Bill Saturday, except for the 2nd and 4th Saturday of every month cheques, removes the need for the physical transportation
a value of INR 69,889.2 billion. This was a 0.7% decrease in Payment Operating Units. which is a public holiday. of cheques between participating banks (banks which have
volume on 2014–15 figures, but a 4.7% increase in value. networked their branches by implementing Core Banking
The Immediate Payment Service (IMPS) is a 24/7 interbank NEFT operates 08:00 to 19:00, Monday to Saturday, except for the Solutions) and ensures cheques are processed within two
The ECS (Electronic Clearing Services) is a deferred net electronic fund transfer service for payments made via mobile 2nd and 4th Saturday of every month which is a public holiday. working days.
settlement system operated by the RBI. The ECS is divided into phone, the internet or at ATMs. IMPS is operated by the NPCI. ®® Cheques processed between banks in clearing zones that are
two subsystems: ECS‑Credit and ECS‑Debit. Payment instructions See Clearing cycle details for information on the other systems.
not subject to Speed Clearing can take between five days and
are made via a service centre in Mumbai. Funds are available to ®® IMPS processed 220.81 million transactions in
Clearing cycle details three weeks to clear.
beneficiaries on a T+1 basis. 2015–16, with a value of INR 1,622.3 billion, a 181.5% and
178.8% increase respectively on 2014–15 figures. RTGS system
The NG-RTGS system settles transactions in near real time Final settlement takes place across the participants’ accounts
®® The ECS processed 263.75 million transactions in 2015–16, held at the RBI via the RTGS.
with a value of INR 2,691 billion, a 22.7% and 28% decrease Participants (maximum of two hours) either on a gross or offset basis.
respectively on 2014–15 figures. The RTGS has 193 participants. Settlement takes place across participant banks’ correspondent
NEFT
accounts held at the RBI.
NEFT operates 23 settlement batches at half-hourly intervals
The NACH (National Automated Clearing House), is a The CTS has 209 participants.
CTS beginning from 08:30 to 18:30.
centralised electronic clearing system operated by the NPCI.
NACH processes low-value and high-volume direct debit and The ECS has 117 bank participants. Cheques are truncated into electronic items before being
Final settlement takes place across participants’ accounts held at
direct credit transactions on a same-day basis. NACH aims processed in one of four centralised clearing areas across the
NEFT has 187 bank participants at 145,115 branches. the RBI via the NG-RTGS. Funds are available on a same or next-
to consolidate the multiple existing ECS systems operating country.
day basis.
across India.
®® Processing depends on the location of the remitting and
beneficiary banks: same CTS grid jurisdiction are treated and
1.
Reserve Bank of India.24 HSBC Treasury Management Profile 2018 | India HSBC Treasury Management Profile 2018 | India 25
Cash
Management
Regulatory controls Domestic
Notional pooling
Short-term investments
®® Interest can be earned on resident and non-resident demand
The RBI provides depository services for government securities.
The National Securities Clearing Corporation Ltd (NSCCL) carries
Notional pooling is not permitted in India. deposit accounts.
and withholding tax Cash concentration
®® Demand deposit accounts are available in INR or major foreign
currencies.
out clearing and settlement functions. The NSCCL has two
categories of clearing members: trading clearing members and
Cash concentration, and in particular zero balancing, is permitted custodians.
implications make
®® Time deposits are available in INR or major foreign currencies.
between resident and non-resident accounts. However,
Non‑residents may be required to invest for a minimum of one
regulatory controls and withholding tax implications make such Trading members’ proprietary trades become the member’s
year. There are no such restrictions for residents.
cash concentration
arrangements difficult to operate. obligation for settlement. When trading on behalf of clients
®® Certificates of deposit (CDs) are offered by commercial banks, and a custodian is involved, the member flags the trade with a
One or more legal entities may be included, although if the with maturities ranging from one week to 12 months. Most are Custodian Participant code. The custodian is required to confirm
arrangements such as entities have different beneficial ownership structures, rules on issued for 91 days. CDs are issued in multiples of INR 100,000. settlement of these trades on T+1 by 13:00. Non-confirmation by
intercompany lending apply. The minimum investment amount is INR 100,000. CDs can be the custodian devolves the trade obligation on the member who
interest-bearing or issued at a discount. had input the trade for the respective client.
zero balancing difficult Cross-border cash concentration is permitted, but regulatory
controls make such arrangements difficult to operate.
®® Commercial paper is available to residents and non-residents
and is issued with maturities ranging from one week to one Trades in the normal settlement segment are subject to a
year. The minimum investment is INR 500,000. Commercial multilateral netting procedure, under which the clearing member
to operate. Collections
Lockbox services are permitted to speed up cash collections.
paper must be rated by an RBI-specified Indian rating agency.
®® Treasury bills are issued via weekly auction by the RBI
has a net settlement obligation (delivery/receipt of securities
and cash). In the case of securities in the Trade for Trade –
However, the absence of a central cheque clearing system means for maturities of three, six and 12 months. The minimum Surveillance segment and Auction Trades, obligations are
few companies use lockboxes. Instead, where banks do not investment amount is INR 10,000. determined on a gross basis for both funds and securities.
have a physical branch, they use courier or coordinator networks
®® Money market funds are available.
to collect paper-based instruments. These are then deposited BIS Model
®® Inter-corporate deposits are made by companies directly to
as local instruments in the clearing location through their ®® Model 1.
other companies for terms of up to six months.
correspondent or partner banks.
Settlement cycle
Custody and securities settlement1
Cross-border ®® T+2 for equities.
Depositories
Cross-border payment instructions are routed via SWIFT and ®® T+N for bonds.
®® Central Depository Services (India) Limited (CDSL).
settled through accounts held with correspondent banks abroad.
Cross-border transactions are also possible via a foreign currency ®® National Security Depository Limited (NSDL).
demand draft. ®® The Reserve Bank of India (RBI).
Lifting fees The CDSL is a depository company that facilitates the holding
Fees are applied to funds transfers between resident and non- of securities in dematerialised form and transfer of securities
resident accounts. through book entry.
More than 90% of the settlement by value on all stock exchanges
in the country is facilitated through the NSDL.
1.
Data as at April 2017.You can also read
