In terms of Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, “Bulk Deposit” means, a Single Rupee term deposit of Rupees two crore and above for Scheduled Commercial Banks (excluding Regional Rural Banks) and Small Finance Banks. For Regional Rural Banks (RRBs), single Rupee term deposits of Rupees fifteen lakhs have…
The Reserve Bank of India (RBI) has issued directives to Credit Information Companies (CICs) to promptly notify clients through SMS or email whenever banks or Non-banking Financing Companies (NBFCs) access their Credit Information Report (CIR). “This move is aimed at fostering transparency and keeping customers informed about the usage of their credit information” it said.…
In terms of extant RBI instructions, banks have been permitted to offer domestic term deposits (TDs) without a premature withdrawal option, provided that all TDs accepted from individuals for an amount of Rupees fifteen lakh and below shall have premature-withdrawal-facility. Moreover, commercial and cooperative banks were permitted to offer differential rates on interest on Term…
The Government of Kerala State declared the following days as public HOLIDAYS for the year 2024 under Section 25 of the NI Act (Negotiable Instrument Act) 1881. Sr.No Date Day Occasion/Festival Date 1 26.01.2024 Friday REPUBLIC DAY 2 08.03.2024 Friday MAHASHIVARATRI 3 29.03.2024 Friday GOOD FRIDAY 4 01.04.2024 Thursday BANKS’ ANNUAL CLOSING OF ACCOUNTS 5…
Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds. If a cheque is dishonoured because of insufficient funds in the payer’s…
Buyers’ credit finance means finance for payment of imports in India arranged by the importer (buyer) from a bank or financial institution outside India. The suppliers’ credit means credits extended for imports directly by the overseas supplier instead of a bank or financial institution. Although both buyers’ credit and supplier credit are credit facilities to…
The lender’s right to the term “Hypothecation of assets” was not defined anywhere in the statute till the SARFAESI ordinance 2002. Some courts have even compared ‘hypothecation to a mortgage of movables’. Hypothecation occurs when an asset is offered by the borrower to the lender as prime or collateral to secure a loan/credit limit without…
Let us first understand the meaning of a Dormant Account and an Inoperative account. Dormant Account A Savings Bank account or Current account becomes a ‘Dormant Account’ if it is not operated during the previous 12 months. Inoperative Account An SB or Current account becomes a ‘Dormant Account’ if the account has not operated during…
A Savings Bank account (SB Account) is a form of demand deposit account, opened mainly for the purpose of saving and not for any business purpose. Banks are permitted to credit the interest to the account on a regular basis, with regard to the savings bank accounts frozen by the enforcement authorities. The acceptance of…
Regulatory compliance aims to ensure the bank operates within regulation, safeguarding its integrity and industry reputation. The function oversees multiple duties: protecting bank data, avoiding government fines, avoiding tax evasion, complying with KYC guidelines, monitoring and reporting anti-money laundering activities, assessing risks, and ensuring zero violation of banking ethics. Following are the few cases where…