“Delivered at Terminal’ or three letter abbreviation DAT refers to common contractual term used in international trade. The term DAT replaces earlier term ‘Delivered ex quay’. As per ‘Delivered ex quay’ term seller must deliver the goods at a wharf, and was thus applicable to goods delivered via waterways (whether inland or sea). The term…
A restructured or rescheduled account is practically a new loan replacing the older account. The purpose of restructuring of a loan is to accommodate the borrower who is in financial difficulty and unable to repay the loan as per repayment schedule. Restructuring of loans involve modification of terms and conditions of the loan usually with…
Fresh accretion of NPAs during the year or a falling below the current position of standard assets of the bank is a slippage. Let us take an example that the gross NPA of a bank’s last financial year is 12% and in the current financial year it is 15% due to fresh accumulation of bad…
Mr.Yogesh Dayal, Chief General Manger of RBI in his press release dated Apr 20, 2019 clarified that RBI has not issued any direction on 5 days week in banks and the above information appeared in media reports is not factually correct. The reason for the above clarification on press release is necessitated because of certain…
Liberalised Remittance Scheme (LRS) is a scheme introduced by RBI as liberalisation 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. Any resident individual including a minor is…
The Taylor rule was first proposed by economist John B. Taylor in 1993 to provide guidance to the U.S. Federal Reserve* and other central banks for setting short-term interest rates based on economic conditions. John Taylor proposes how Central Banks should alter interest rates in response to changes in economic conditions mainly inflation and economic…
Distress Sale: A distressed sale occurs when the owner of the asset like property, stocks or any other assets, pressed for urgent sale which is usually under disparaging conditions. Distressed sales arises on account of funds tied up in an asset which is needed within a short period of time for dire need of money…
The potential loan losses arise to banks and financial institutions due to default of repayments from borrowers or renegotiated terms of a loan or one time settlement that incur lower than previously estimated repayments. The provision for loan loss is the money banks and financial institutions set aside to cover these potential losses on their…
In terms of notification No. FEMA 10(R)(2)/2019-RB dated February 27, 2019, the Reserve Bankof India on April 2019 advised all ategory – I Authorised Dealers and Authorised Banks that they may open interest free foreign currency accounts for reinsurance brokers. A According to the notification, re-insurance and composite insurance brokers registered with IRDA may open…
The Finance Ministry in its communication said that it has decided to keep the interest rate unchanged on small savings schemes for the three-month period beginning April 1.The announcement covers small-saving schemes such as the Post Office Saving Accounts, Post Office Time Deposits, the National Saving Certificates (NSC), the Public Provident Fund (PPF), the Kisan…