What is a Long Form Audit Report (LFAR)? : LFAR (Long Form Audit Report) must be issued by Statutory Auditors apart from the standard audit report that is required as per regulatory requirements. LFAR serves as a vital tool for auditors and their team members, the audit process providing detailed insights into the bank’s operations,…
While opening all new accounts banks should mandatorily obtain photographs of the depositors/account holders who are authorized to operate the accounts in terms of the Master Directions of RBI. The customers’ photographs should be recent and the cost of photographs to be affixed on the account opening forms may be borne by the customers. Only…
The Reserve Bank of India has been issuing statutory guidelines to commercial banks under the Banking Regulation Act 1949. The banks in India accordingly shall follow the terms and conditions as specified in the regulations in respect of deposits accepted by the banks. The detailed guidelines of the banking regulator cover the following matters. Exemptions…
A personal account is a bank account maintained by a natural person for his personal transactional needs. Personal account is a relative term to distinguish it from business accounts. The accounts of other types of bank customers are maintained by artificial persons (legal entities). Personal accounts of individuals in the bank include: SB account, Current…
Finance Minister Nirmala Sitharaman on Friday introduced in the Lok Sabha the Banking Laws (Amendment) Bill, 2024, which seeks the following changes in existing laws. “To improve bank governance and enhance investors’ protection, certain amendments to the Banking Regulation Act, the Banking Companies Act, and the Reserve Bank of India Act are proposed,” FM said…
The Karta is traditionally the senior most male coparcener of the Hindu Undivided Family (HUF). He is the person who takes care of the day-to-day expenses of the family looks after the family and protects the joint family properties. He remains to be Karta even if he becomes aged, infirm, or ailing. Where a senior…
While opening opening Current Accounts of all categories of depositors including proprietors, partners, trustees, settlers, beneficiaries those holding power of attorney, founders, managers, directors, etc. the customers need to submit ‘know your customer’ related official valid documents of the entities and natural persons behind the entities. As per RBI guidelines, in addition to seeking NOC…
RBI on Thursday (August 8, 2024) in its Statement on Developmental and Regulatory Policies announced two major changes in the UPI payment system. It is proposed to introduce a facility for “Delegated Payments” in UPI. This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions up to a…
(Article answers to the questions like whether younger coparcener can be made Karta when an elder sibling is alive, whether Daughters can also become Karta, whether the wife of the Karta can become Karta, whether there can be a HUF within a HUF, When the father was a Karta in his father’s HUF, who will…
The Reserve Bank of India in exercise of the powers conferred by sub-section (1) of section 11 of the Credit Information Companies (Regulation) Act, 2005 (CICRA, 2005), directed that Credit Information Companies (CICs) and Credit Institutions (CIs )shall keep the credit information collected/maintained by them updated regularly on a fortnightly basis (i.e., as on 15th…
