What is the role of Clearing Corporation of India?

The Clearing Corporation of India Ltd. (CCIL) was set up in 2001 commenced business operations in the securities market on February 15, 2002. CCIL provides an institutional infrastructure for the Clearing and Settlement of transactions by banks, financial institutions and primary dealers, in Government Securities, Money Market instruments, Foreign Exchange and other related products. The…

What is derivative?

In a layman’s language, derivative means profit or loss derived from something. The most common derivative instruments used in financial markets are the forward contract, options, forward rate agreement, futures contract, interest rate swaps etc.  The characteristic and value of these derivative instruments are derived from underlying assets like currencies, Interest rates, stocks indices, precious…

What are CFT and FATF in banking?

CFT is acronym to Combating the Financing of Terrorism (CFT). Financing of terrorism means providing financial support to terrorist or terrorist organizations intended to achieve political, religious, or ideological goals through violence and the threat of violence against civilians.  The flow of funds may reach to those terrorists from legitimate religious or cultural organizations or…

What are the RBI norms for periodical updating of KYC?

Banks are required to periodically update their customers’ KYC details under Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002.  As per latest review and directives of RBI, periodic full KYC exercise will be required to be done for…

How to open NRO account in a Bank?

A Non-Resident Ordinary (NRO) Account is required by many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, or to credit sale proceeds of immovable properties in India, etc.This account also allows you to remit funds from abroad either in Indian or foreign currency. You have to…

What is LLP ?

LLP is acronym to the Limited Liability Partnership (LLP). LLP is an entity registered under Limited Liability Partnership Act, 2008. The liability of an LLP is restricted to its assets and partner’s liability is limited to their share contributed in the partnership. Thus partner’s liability in LLP is similar to that of the shareholders of…