The Reserve Bank of India on Febraury 7, 2018 vide its circular DBR.No.BP.BC.100/21.04.048/2017-18, given an instrucion to banks and NBFCs not to down grade the asset classification of accounts of MSME borrowers where the borrower’s account was standard as on August 31, 2017.The accounts shall be treated as standard accounts if the borrower unit is…
The Insolvency and Bankruptcy Code (IBC) 2016 is the bankruptcy law of India, amended as Insolvency and bankruptcy code (amendment) Bill 2017. The new law seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The mounting NPAs in the banking sector and other financial institutions have crippled lending activities…
Both the houses of the Parliament have passed the Insolvency and Bankruptcy Code (Amendment) Bill 2017 and the bill is waiting for assent of the President of India to become a law. The aim of this amendment was to tightening loopholes in existing code and disallows backdoor entry of some existing managements from bidding as…
(This article explains the meaning of contract of Indemnity; features of Indemnity Contract, rights and duties of indemnity holder.) Definition of contract of indemnity: Section 124 of contract Acts defines contract of indemnity as “a contract by which one party promises to save the other from loss caused to him by the conduct of the…
Registration of a partnership firm is not compulsory under law. However, the registration gives the firm a legal status. Section 69 makes claims arising out of a contract unenforceable if the firm is unregistered at the date of the institution of the suit. Thus, the major drawback of the non-registered partnership firm is that it…
Registration of a partnership firm is not compulsory under law. It is left to the partners of the firm to register their firm or not. However,the advantages of registration of a partnership firm are that the registered firm offers an irrefutable legal proof of the existence partnership and the composition of partners, their address,…
Updated 05.01.2021: LEI is a 20-digit unique code to identify parties to financial transactions worldwide. Following the global financial crisis, the Legal Entity Identifier (LEI) code is conceived at the initiative of the ‘Group of 20, financial stability Board’. In the US and Europe, the regulations require the use of LEIs to uniquely identify counterparties…
In terms of RBI guidelines the paying bank should return dishonoured cheques presented through clearing houses strictly as per the return discipline prescribed for respective clearing house in terms of Uniform Regulations And Rules for Bankers’ Clearing Houses. According to RBI circular DBOD.No.BC.74/09.07.001/91-92 dated 28th January 1992, RBI had advised all the banks implement the…
Prevention of Money Laundering Act, 2002 came into force with effect from July 1; 2005. The Government of India has enacted PML Act to prevent money-laundering and to provide for confiscation of property derived from or involved in, money-laundering. The Directorate of Enforcement in the Department of Revenue, Ministry of Finance is responsible for investigating…
The nominations made by locker hirer or there is a survivor clause in joint operation of the locker, such nomination or survivorship would facilitate expeditious release of articles in lockers to hirer’s nominee/s. Here we will go through the procedure (1) where there is survivor / nominee clause (2) where there is no survivor /…