The RBI, reviewed the extant norms for RCBs on the issue and regulation of capital funds. Now RCBs are permitted to raise share capital by way of (i) issue of shares to persons within their area of operation, and (ii) issue of additional shares to the existing members. RCBs can raise capital by issuing preference shares and debt instruments. Further, RCBs are permitted to refund the share capital to their members, nominees/heirs of deceased members, on demand subject to certain conditions.The RBI, reviewed the extant norms for RCBs on the issue and regulation of capital funds. Now RCBs are permitted to raise share capital by way of (i) issue of shares to persons within their area of operation, and (ii) issue of additional shares to the existing members. RCBs can raise capital by issuing preference shares and debt instruments. Further, RCBs are permitted to refund the share capital to their members, nominees/heirs of deceased members, on demand subject to certain conditions.taxmann.com Latest Statutory HappeningsRead More
