An excess of estimated expenditure over the estimated revenue over a specific period of time is known as fiscal deficit. The term deficit financing is generally referred to as a technique used by a government to manage the ‘Fiscal Deficit’ in budgetary situations. Governments across the world normally resort to cover the deficit (the gap…
In the Indian context, when a transaction involves the shipment of goods from one foreign country to another foreign country through an Indian Intermediary it is called merchanting trade or Intermediary trade. Goods involved in the merchanting trade transactions would be the ones that are permitted for exports/imports under the prevailing Foreign Trade Policy (FTP)…
The Reserve Bank of India on Tuesday (21/01/2020) issued directions relating to IFSC Banking Units (IBUs) governed under ‘Currency Futures in International Financial Services Centre (Reserve Bank) Directions, 2020’ which shall come into force with effect from the date of its publication. IFSC is an abbreviation for International Financial Services Centres and IFSC Banking Units…
The FRDI Bill launched wild rumours all over the country, sowing seeds of distrust among bank customers over a “bail-in” clause, which theoretically allowed beleaguered banks to scoop up depositors’ money to stop them from going bust. However the ill-conceived FRDI bill was withdrawn by the Government and now replaced the same by a new…
The Reserve Bank of India on Thursday (January 16, 2020) has introduced new rules to enhance the security of card transactions. As per RBI notification, while issuing and reissuing the debit and credit cards, banks must ensure that all the debit cards and credit cards are enabled only for domestic transactions at ATMs and point…
Inasmuch as, the legal provisions governing Contract of Guarantee, the guarantees furnished by the banks in favour of Government Departments in the name of the President of India, has validity period of 30 years as per limitation act 1963.In the light of above section of limitation act, many readers are asking the questions whether the…
During the course of the bipartite talks on 13/01/2020, IBA went on the back foot on some of the issues, which was earlier considered positively. Initiating the prelude speech IBA Chairman Shri. Rajnish Kumar narrated the general scenario in the banking sector and the constraints under which all of us were working, particularly in the…
Reserve Bank of India under the aegis of the Financial Inclusion Advisory Committee (FIAC) initiated the process of formulation of the National Strategy for Financial Inclusion (NSFI) for the period 2019-2024 and formally released the document on January 10, 2020. The National Strategy for Financial Inclusion (NSFI) report on Friday sets forth the vision and…
On Friday (10.01.2020), RBI notified that the instructions on the processing of e-mandate on cards for recurring transactions to cover Unified Payments Interface (UPI) transactions as well. During August 2019, RBI permitted processing of e-mandate on Credit/debit cards / Prepaid Payment Instruments (PPIs)/wallets for recurring transactions (merchant payments), with Additional Factor of Authentication (AFA) during…
Major Amendments made to KYC Master Direction. In the Gazette Notification G.S.R. 582(E) dated August 19, 2019, and G.S.R. 840(E) dated November 13, 2019, the Government of India has notified amendment to the Prevention of Money-laundering (Maintenance of Records) Rules, 2005. Further RBI has permitted Regulated Entities (REs) Video-based Customer Identification Process (V-CIP) as a…