RBI advises banks to make sure that each of their branches maintains a minimum stock of one bag of coins in each denomination. RBI has revised the “Currency Distribution & Exchange Scheme (CDES)” for bank branches including currency chests. Under the above scheme, RBI has been providing financial incentives of Rs25 per bag to banks…
Ministry of Finance (Department of Financial Services) in its letter dated 25.08.2021 addressed to the Chief Executive of IBA conveyed the revision of family pension. According to the letter, the payment of Family Pension should be at a uniform rate of 30% of the pay of the deceased employee without any ceiling on family pension…
Finance Minister Nirmala Sitharaman today announced that the Government has cleared the enhancement of Bank family pension to 30 percent without a ceiling. Further, Bank’s contribution to the Pension fund under NPS was enhanced from 10 to 14%. The improvements in family pension to 30 percent of last drawn pay without any ceiling cleared by…
Entiites other than individuals can remit funds outside India for the following purposes which are stipulated under Para 1 of Schedule III to FEM (CAT) Amendment Rules, 2015. AD banks, after their satisfaction with the genuineness of the transaction, are authorized to dispose of all residual current account transactions undertaken by such entities that are…
Liberalised Remittance Scheme is a scheme introduced by RBI as a liberalization measure to facilitate Resident Individuals (RI) to freely remit funds up to USD 2, 50,000/- outside India in a financial year (April to March) for any permissible current or capital account transaction or a combination of both. The remittances can be made in…
Any credit facility provided to a borrower company engaged in an infrastructure facility is known as ‘infrastructure lending’. The activities such as developing, or operating, and maintaining, or developing, operating, and maintaining any infrastructure facility of the following sector are called infrastructure projects. a road, including toll road, a bridge or a rail system; a…
Accounting rate of return (ARR) is a formula that reflects the percentage rate of return expected on an investment, or asset, compared to the initial investment’s cost. ARR calculation can be helpful for a business to determine whether going ahead with a particular investment is the right move. How to calculate ARR? The investing entity…
Edited and reposted on August 19, 2021 The Capital Budgeting (also known as investment appraisal) is the process of project appraisal to decide whether the big investment in such a long term project is worth pursuing. The long term investment may be needed to a company for technology up gradations, purchase of new machinery, expansion…
The Reserve Bank on Wednesday came out with revised guidelines for the hiring of lockers under which the liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse, or frauds by bank employees. The banks will have to put in place a Board-approved policy outlining their…
Reserve Bank of India has framed guidelines for extending working capital finance to the Information Technology and Software Industry, based on the recommendations of the National Taskforce on Information Technology and Software development. However, said guidelines prepared by the central bank are not mandatory for lenders. They are free to modify RBI framed guidelines, built…