As per committee on currency Chest (Chaired :Shri.D.K.Mohanty) recommendation, RBI advised the banks that they shall follow the below procedure. Cash indents by the Service Provider shall be made at least a day in advance (T-1 where T is the day of cash loading), in consultation with the chest / nodal branch. Cash withdrawal points…
Reverse mortgage loan scheme turn out to be windfall to senior citizen who needs financial help. The scheme also known as ‘RML scheme’ is created from Maintenance of Parents and Senior Citizen Bill 2007, by way of social security measure initiated by the Government of India. The RML scheme is also popular in other developed…
Section 3 of Indian Trust Act 1882 provides that “A Trust is an obligation annexed to the ownership of the property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner”. A trust can be…
Registration of Trust is mandatory in certain cases and not mandatory in some other cases. Let us examine here where the registration of trust is a mandatory requirement. Cases where Registration of Trust is compulsory: The instrument if any, by which the Trust is declared, is called the instrument of Trust or Trust Deed. Section…
In banking parlance ‘Capital charge’ refers to capital requirement (also known as regulatory capital or capital adequacy). The capital charge is usually articulated as a capital adequacy ratio (CAR) of equity that must be held as a percentage of risk-weighted assets. The banking regulator of a country tracks a bank’s CAR to ensure that the…
The business of foreign exchange dealing is confronted with multiple numbers of risks viz. Rate risk, Open Position risk, Maturity Mismatches risk, overtrading risk, Cash Balance Risk, Counterparty risk, Country risk, Fraud Risk, and so on. Nevertheless, like in any other business, risk taking in forex dealing is also inevitable as it also presents possibilities…
In terms of Regulation 2 of FEMA Notification No.13 dated May 3, 2000, Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India. Person of Indian Origin (PIO) means a citizen of any country other than Bangladesh or Pakistan who had (a) at any time held Indian passport or (b)…
The terms citizen, nationality and domicile are different to residential status of a person. The residential status of a person in India is based on two different Acts viz. (i) Income Tax Act, 1961, ( I.T. Act) (ii) Foreign Exchange Management Act 1999. Under Income Tax Act, the residential status of a person is decided…
The Ombudsman Scheme for NBFCs 2018 was launched by RBI on February 23, 2018, for cost-free expeditious complaint redressal against NBFCs registered with RBI under Section 45-IA of the RBI Act, 1934 and covered all deposit-accepting NBFCs to begin with. Further, on April 26, 2019 Reserve Bank extended the coverage of the Ombudsman Scheme to…
The term ‘Gilt’ is of British origin. The British called ‘Gilt edged securities’ to the bonds and the securities issued by the British Government (through Bank of England) on behalf of His/Her Majesty’s Treasury, whose paper certificates had a gilt edge. The term Gilt edged securities is used in India for the Government securities like…