RBI issues consolidated circular on opening and operation of current accounts and CC/OD accounts by banks

RBI today (19.04.2022) issued a consolidated circular for opening and operation of current accounts and CC/OD accounts by banks with a view to enforce credit discipline amongst the borrowers as well as to facilitate better monitoring by the lenders. Banks may compute the aggregate exposure of the prospective customers based on the information collected from…

What is a positive pay cheque?

On Thursday (6th August), on the eve of the Statement on Developmental and Regulatory Measures, RBI Governor Mr.Shaktikant Das announced “To enhance safety of cheque payments, it has been decided to introduce a mechanism of Positive Pay for all cheques of value ₹50,000 and above. This will cover approximately 20 per cent and 80 per…

Position of a partnership firm when a partner dies or retires or becomes insolvent

Section 42 of the Indian Partnership Act, 1932 (“Act”) provides for dissolution of partnership on occurrence of certain contingencies which includes ‘death of the partner’ or ‘adjudication of a partner as an insolvent’ or if constituted for a fixed term, by the expiry of that term, etc.as one of those contingencies. However, the partnership need…

Opening of current accounts in banks

A Current account in a bank is a running account (also known as demand deposit) maintained in banks mostly for the purpose of business. The following types of entities are eligible to open current accounts in banks. Individual/Proprietorship Account Hindu Undivided Family (H.U.F) Account Partnership concerns/Limited Liability Partnership (LLP) Limited and Private Companies Trust Account…

Bank Accounts of Government/Semi Government departments:

Government departments or semi Government departments need a bank account to carry out the financial transactions of the departments. Government business like Salary payments, Pension payments,Fee collection, tax collection,PPF, Sukanya samriddhi, Senior citizen savings scheme,etc.are routed through banks.Most of the public sector banks eying for government business as they they get huge amount of deposits…

What is LLP ?

LLP is acronym to the Limited Liability Partnership (LLP). LLP is an entity registered under Limited Liability Partnership Act, 2008. The liability of an LLP is restricted to its assets and partner’s liability is limited to their share contributed in the partnership. Thus partner’s liability in LLP is similar to that of the shareholders of…