The share capitals of a company are of two types namely Equity Shares and Preference Shares. Equity shares are non-refundable to shareholders during the lifetime of the company. Unlike preference shares, there will be no fixed rate of dividend to be paid to the equity shareholders and this rate may vary from year to year.…
On the subject of the use of Aadhaar to facilitate delivery of social welfare benefits by direct credit to the bank accounts, Reserve Bank of India vide its circular RBI/2015-16/289/FIDD.CO.LBS.BC. No.17/02.01.001/2015-16 dated January 14, 2016 had clarified that the use of Aadhaar Card and seeding of bank accounts with Aadhaar numbers is purely voluntary and…
Reserve Bank of India on Wednesday (14th August 2019) in its notification to all Scheduled Commercial Banks including Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Small Finance Banks, Payment Banks, White Label ATM Operators clarified that banks should not count failed transactions at ATMs due to technical reasons and…
The Statement on Developmental and Regulatory Policies released by RBI yesterday set out various developmental and regulatory policy measures in the areas of Financial Markets; Payment and Settlement Systems; Banking Regulation, Financial Inclusion and Credit flow to NBFCs. Highlight of policies statement are as follows; Payment and Settlement Systems: As cited in the Payment System…
RBI decided to cut interest rate by 35 basis points. With this cut RBI reduced Repo rate for the fourth time in a row. The Monitory Policy Committee (MPC) of RBI released its third Bi-Monthly Monetary Policy Rates for 2019-20 today (August 7, 2019). The revised key policy rates are as under. CRR (Cash Reserve…
Reserve Bank of India on Friday (August 02, 2019) reminded all the commercial banks that they are not permitted to charge foreclosure charges / pre-payment penalties on home loans / all floating rate term loans sanctioned to individual borrowers. The above norm of prohibiting banks charging foreclosure charges/pre-payment penalties on floating rate loan is already…
The Consumer Protection Bill, 2019 was passed in Lok Sabha on Tuesday July 30, 2019. The Bill proposes setting up of the Consumer Disputes Redressal Commission (CCPA) and forums at the District, State and National levels for adjudicating consumer complaints. The above Bill once becomes law (after passing in Rajya Sabha and President of India’s…
In the macroeconomic sense an expansionary monetary policy is a form of monetary policy used by central banks that aims to surge the rate of monetary expansion to stimulate the growth during a recession or in anticipation of a recession. When interest rates are already high, the central bank focuses on increasing the money supply,…
Open market operations (OMO) refer to buying and selling of government securities and treasury bills in the open market by the central bank of the country in order to expand or contract the amount of money in the banking system. The primary aim of open market operations is to regulate the money supply in the…
Banks & Financial Institutions are generally free to determine the lending rates on loans and advances. The method to arrive at Lending Rate has changed drastically over the last decade. The Lending Rate like BPLR, Base Rate, and MCLR internal benchmark rates are used by individual banks to determine the interest rates on their credits.…