In terms Banking Regulation Act, 1949, RBI provides a framework of the rules, regulations, and instructions with regard to bank lending. Accordingly it has issued following directions to scheduled commercial banks on statutory and other restrictions on loans and advances. A bank cannot grant any loans and advances on the security of its own shares.…
Wholesale banking is popularly known as corporate banking, also known as business banking. Wholesale banking or corporate banking refers to the aspect of banking that deals with corporate customers such as trading houses, multinational companies, exceptionally large domestic industrial and business houses, prime public sector companies etc. The above types of clientele opt for the…
The Co-operative Banks in India are primarily registered as cooperative societies under the provisions of either the State Cooperative Societies Act of the State concerned or the Multi State Cooperative Societies Act, 2002 if the area of operation of the bank extends beyond the boundaries of one state. The banking related functions of Urban Co-operative…
The National Bank of Agriculture and Rural Development (NABARD) was initially promoted by the Reserve Bank of India in 1982 under the National Bank of Agriculture and Rural Development Act 1981. By its establishment, NABARD substituted the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India, and…
The confirmed DA for the months of August-October 2017 is @47.80% on ‘pay’ (which includes allowances eligible for DA) @ the rate of 0.10% per slab. It means an increase of 22 slabs over the previous (May –July 2017) level of DA for the Bank employees and officers. Dearness Allowance of Bank Officers Dearness Allowance…
The real Estate (Regulation and Development) Act 2016 (RERA 2016) is passed by Parliament and same is now adapted by the most of the states and union territories. The Act is touted as a key reform measure in the massive real estate sector. Highlights of the RERA 2016: 1. The property buyers need not approach…
In the cases of commodity exports, the exporters have to procure raw material, manufacture the export product and keep the same ready for shipment, in anticipation of export orders from the overseas buyers. This is in view of, seasonal availability of raw materials or when the time taken for manufacture and shipment of goods is…
The weaker sections of our society are the socially backward/ minority communities at national level or the people belonging to economically low income group. Normally, such people may not easily get timely and adequate credit without the priority credit dispensation of RBI. As per RBI’s priority sector approved plan, Banks have to achieve weaker section…
The Reserve Bank of India, has decided to issue Sovereign Gold Bonds 2017-18 – Series II from July 10, 2017. Applications for the bond will be accepted from July 10-14, 2017. The Bonds will be issued on July 28, 2017. The Bonds will be sold through banks, Stock Holding Corporation of India Limited (SHCIL), designated…
The definition of MSMEs revised from July 1, 2020, Please read the following post for latest amendment. New criteria for the classification of MSME effective from July 1, 2020 The new criteria supersede the following article (You may refer following article only for reference to old date details). The MSMED Act 2006 classifies Micro, Small…