The basic functions of RBI (Reserve Bank of India) are “to regulate the issue of Bank Notes and keeping of reserves to secure monetary stability in India and generally to operate the currency and credit system of the country to its advantage.”In addition, to control the supply of portable money circulation, Reserve Bank of India…
Insider trading refers to the use of price-sensitive information by the insider/s of the company to make private gains or avert private losses at the cost of investors not having access to such information. The insider means a person who may reasonably be expected to have unpublished price sensitive information in respect of securities of…
(This article explains how the garnishee order and IT attachment orders are different and explains the method of disposal by the Bank branches when they receive such orders from the authorities.) Garnishee order & I.T. Attachments are two different types of attachment orders. The Garnishee order is an order issued by the Court to Garnishee…
GAAR is a short form of General Anti-Avoidance Rules. The tax avoidance by the individuals and companies is a common fact all over the world. In order to realize more revenues and reduce the revenue loss due to avoidance of tax, the Governments of different countries enact various rules in their country or territory. The…
“Trust Receipt” under the contract of pledge In “trust receipt” under the contract of pledge, the borrower gets his assets/goods released from the pledge, only on full payment of his dues which automatically terminates contract of pledge. However in case of Key cash Credit or Key Loan, if bank desire to release the assets/goods retained…
Pledge is only a special kind of bailment where the object of the delivery of assets/goods is to provide a security for a loan or for the fulfillment of an obligation. Section 148 of the Indian Contract Act, 1872 defines the” bailment”. Section 172 to 176 of the Indian Contract Act, 1872 deals with pledge…
When the rights, title and interest in debts due or accruing due to a person are transferred to another person, it is called assignment and actionable claim means any claim other than the debt to mortgage of immovable property or hypothecation or pledge of goods and receivables. Transfer of Life Insurance Policy, National Saving Certificates, Supply bills…
(This post provides details about Purchase of export bills, Discount of Export Bills, Negotiation of Export bills, Advance against Undrawn Balances on Export Bills, Advance against Retention Money, Advance against Duty Draw Back, Advance against Deemed Exports, Advance against export of Goods for Exhibition and Sale) Post-shipment Export credit facility in banks means finance made to an exporter…
In accounting parlance window dressing in the balance sheet is the technique by which financial statement is made to reveal a better picture than the actual position. Let us study here how a balance sheet can be window dressed. Window dressing in balance-sheet: Date of balance sheet coinciding with the end of the season instead of 31st March.…
Commercial Banks extend varieties of credit facilities to different types of customer viz. Individual, Sole Proprietor, Partnership firm, HUF, Trust, Club, Societies, Association, Limited Company, Public Sector Undertaking, Consortium advance etc. Depending upon type of borrower and nature of credit facilities required, bank will call for certain non-financial papers to examine along with financial papers.…