RBI in its circular RBI/2017-18/89 /DBR.No.Leg.BC.96/09.07.005/2017-18 dated November 9, 2017 observed that there are occasions when banks discourage or turn away senior citizens and differently abled persons from availing banking facilities in branches. In this regard, Developmental and Regulatory Policies, released by Reserve Bank of India on October 4, 2017 state that notwithstanding the need…
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 an acronym for Combating the Financing of Terrorism (CFT). Financing 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 those terrorists from legitimate religious or cultural organizations or it…
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 by 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 an acronym for the Limited Liability Partnership (LLP). LLP is an entity registered under the Limited Liability Partnership Act, of 2008. The liability of an LLP is restricted to its assets and the partner’s liability is limited to their share contributed in the partnership. Thus partner’s liability in LLP is similar to that…
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.…
A trust is a fiduciary relationship between the trustor and the trustee. A Trustor is just the person who creates and opens a Trust. A trustee is a person or an entity created and entrusted with property/assets to deal with for the benefit of a certain person or persons called ‘beneficiaries’. A trust is created…