Debt market is basically a market where fixed income instruments/securities issued by the central and state governments, Municipal corporations are traded. The fixed reimbursement securities may also be issued by commercial banks, financial institutions as well as corporate bodies. Regulators: The Government securities and bonds issued by banks and financial institutions are regulated by RBI.…
The fair practices code for debt collection framed by the banks is revolved around dignity and respect to customers. The codes are outlined based on recommendations of the Working Group on Lenders’ Liability Laws constituted by the Government of India. Banks security repossession policies were aimed at recovery of dues in the event of default…
When a company plans to raise money from the public, it needs to provide the offer document (prospectus) containing detailed information about the business and financials of the company including details about its promoters, reason for raising money, how the money will be used, risks involved with investing in the company and so on. The…
Selective credit control means control over bank finance against the security of sensitive commodities. In exercise of powers conferred by Section 21 & 35A of the Banking Regulation Act, 1949, the Reserve Bank of India issues directives to commercial banks from time to time, stipulating specific restrictions on bank advances against specified sensitive commodities. The…
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…
