A Special Non-Resident Rupee (SNRR) Account is opened with Authorized Dealer (AD) banks in India for specified transactions related to trade, foreign investments, External Commercial Borrowings (ECBs), and more. It serves as an alternative to executing inward/outward remittances in convertible foreign currency for each transaction with residents in India. This account allows non-residents with business…
The Reserve Bank of India (RBI) has released a Master Direction consolidating guidelines for banks and financial institutions regarding credit information reporting. Issued on January 6, 2025, this directive aims to establish a standardized framework for reporting and disseminating credit information while safeguarding the confidentiality and security of sensitive credit data. Key Highlights of the…
There are two possibilities in a bank account maintained by a customer viz. (i) a deposit account is opened in a bank with a valid nomination or with the survivorship clause like ‘either or survivor’, or ‘anyone or survivor’, or ‘former or survivor’ or ‘latter or survivor’ etc. (ii) A deposit account is opened in…
RBI issued a Master Direction on January 7, 2025 – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 Consolidating all earlier regulatory circular for debt instruments in India. These Directions shall be applicable with immediate effect. These Directions shall be applicable to all transactions by eligible non-residents in debt instruments. The following…
The Reserve Bank of India (RBI) has mandated the implementation of a beneficiary account name verification system for fund transfers via Real-Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) services by April 2025. Currently, payment systems such as the Unified Payments Interface (UPI) and Immediate Payment Service (IMPS) allow remitters to verify the…
The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks and provides a forum for regular cooperation on banking supervisory matters. Its 45 members comprise central banks and bank supervisors from 28 jurisdictions. Basel III reforms are the response of the Basel Committee on Banking Supervision…
In terms of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) read with SEBI circular no. CIR/ CFD/ CMD/4/2015 dated September 09, 2015; the Bank is required to make disclosures of any events or information which, in the opinion of the board of directors is material. Listing Regulation…
Section 5(b) of the Banking Regulation Act of 1949 defines “banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, and order or otherwise”. Deposits accepted by the banking institution are the money received from the people…
A partnership firm is a business owned by two or more people who have agreed to share profits and act on behalf of the business. The people who own the business are called partners, and the name of the business is the firm name. An LLC is a privately held business that combines the characteristics…
The issue of shares refers to the process by which a company raises money by selling ownership stakes in the form of shares of stock to investors for a variety of purposes like expansion plans, repayment of debts, improving liquidity, or a plan to increase the long-term source of capital that helps a company operate…