When an insolvency petition has been filed in the Court, in respect of a customer of the bank, the bank shall immediately stop paying cheques drawn by the customer irrespective of cheque dated before or after the date of the petition. While dealing with such accounts, bankers need be to extra careful. Any act of…
CFT is acronym to Combating the Financing of Terrorism (CFT). Financing of terrorism means providing financial support to terrorist or terrorist organizations intended to achieve political, religious, or ideological goals through violence and the threat of violence against civilians. The flow of funds may reach to those terrorists from legitimate religious or cultural organizations or…
Banks are required to periodically update their customers’ KYC details under Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002. As per latest review and directives of RBI, periodic full KYC exercise will be required to be done for…
A Non-Resident Ordinary (NRO) Account is required to many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, or to credit sale proceeds of immovable properties in India etc.This account also allows you to remit funds from abroad either in Indian or foreign currency. You have to…
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…
In partnership businesses all the partners need not actively participate in the business activity of the firm. According to their involvement in the business they are called active partner/ managing partner and sleeping partner/ dormant partner. Active Partner or managing partner: An active partner is the capital investor in the partnership who actively involves himself…
Q: Is there any upper limit for loans against security of NRI’s term deposits like FCNR/NRE? Ans.: Except usual margin requirement, no upper ceiling is prescribed for loans to NRIs or third parties in India against security of FCNR/NRE deposits. However, the loan shall be for the purpose other than the investments specified in FEMA…
Reserve Bank Notification No. FEMA 5/2000-RB, [dated May 3, 2000AP (DIR SERIES) (2002-2003)] 2. RBI circular No. 5 dated 15-7-2002, and 3. A.P. (DIR Series) Circular No. 45, dated May 14, 2002 give guidelines on various debits and credits allowed in NRE accounts. The following are the permitted debits and credits allowed in NRE accounts.…
Karta (Manager) of HUF have sole authority over HUF account and also on every transaction on behalf of HUF account, made by each member of the family. Therefore, it is necessary to appoint a new Karta to allow operation in the account after the death of the Karta to allow further operation in the same…
The Karta is traditionally the senior most male coparcener of the Hindu Undivided Family (HUF). He is the person who takes care of day to day expenses of the family looks after the family and protects the joint family properties. He remains to be Karta even if he becomes aged, infirm or ailing. Where a…