The Government of Kerala State declared the following days as public HOLIDAYS for the year 2024 under Section 25 of the NI Act (Negotiable Instrument Act) 1881. Sr.No Date Day Occasion/Festival Date 1 26.01.2024 Friday REPUBLIC DAY 2 08.03.2024 Friday MAHASHIVARATRI 3 29.03.2024 Friday GOOD FRIDAY 4 01.04.2024 Thursday BANKS’ ANNUAL CLOSING OF ACCOUNTS 5…
Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds. If a cheque is dishonoured because of insufficient funds in the payer’s…
Buyers’ credit finance means finance for payment of imports in India arranged by the importer (buyer) from a bank or financial institution outside India. The suppliers’ credit means credits extended for imports directly by the overseas supplier instead of a bank or financial institution. Although both buyers’ credit and supplier credit are credit facilities to…
The lender’s right to the term “Hypothecation of assets” was not defined anywhere in the statute till the SARFAESI ordinance 2002. Some courts have even compared ‘hypothecation to a mortgage of movables’. Hypothecation occurs when an asset is offered by the borrower to the lender as prime or collateral to secure a loan/credit limit without…
Let us first understand the meaning of a Dormant Account and an Inoperative account. Dormant Account A Savings Bank account or Current account becomes a ‘Dormant Account’ if it is not operated during the previous 12 months. Inoperative Account An SB or Current account becomes a ‘Dormant Account’ if the account has not operated during…
A Savings Bank account (SB Account) is a form of demand deposit account, opened mainly for the purpose of saving and not for any business purpose. Banks are permitted to credit the interest to the account on a regular basis, with regard to the savings bank accounts frozen by the enforcement authorities. The acceptance of…
Regulatory compliance aims to ensure the bank operates within regulation, safeguarding its integrity and industry reputation. The function oversees multiple duties: protecting bank data, avoiding government fines, avoiding tax evasion, complying with KYC guidelines, monitoring and reporting anti-money laundering activities, assessing risks, and ensuring zero violation of banking ethics. Following are the few cases where…
Reserve Bank of India on Tuesday extended the Prompt Corrective Action (PCA) Framework for Government Non-Banking Financial Companies (NBFCs). “Reserve Bank of India introduced the PCA Framework for NBFCs on December 14, 2021. The Framework has since been reviewed and it has been decided to extend the same to Government NBFCs (except those in Base…
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. In this scheme of bank accounts, the exchange earners who are residents of India, such as individuals, companies, etc., SEZ developers (except SEZ Units) can…
An investment made in India by foreign entities, non-resident Indians, and persons of Indian origin in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities, etc., is known as foreign investment in India. Based on the type of foreign Investments, they are classified as below. Foreign Direct Investment (FDI) Foreign Portfolio Investment…