Role of ICT, BC and BF in Financial Inclusion
Information and Communication Technology (ICT) includes a wide variety of technologies in many areas, including business, education, and economic growth. ICT can also be used in health, tourism, agriculture, culture, banking, and entrepreneurship. ICT can help improve the quality of teaching and learning, and make education more accessible and equitable. It can also help teachers…
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What is Corporate Debt Restructuring (“CDR”) Scheme
Corporate Debt Restructuring (“CDR”) is typically a voluntary framework, under which financial institutions and banks restructure the debt of companies facing financial difficulties due to various factors, to provide support at the right time for such businesses. It helps a company in financial distress realign its obligations and restore liquidity, avoid bankruptcy, and stay in…
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Loan against security of NSC and KVP
Banks may lend up to 80 to 85 percent of the face value of NSCs or KVPs in the form of a loan or overdraft facility. Process To get a loan, the NSC or KVP holder must pledge the certificates to the lender. On application, the concerned post office where the certificates were purchased will…
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Loans and Advances against Shares, Debentures and Bonds
Banks offer loans against securities for customers’ short-term funding needs. Loans against shares, government bonds, insurance policies, NSCs, and other investments come under this category. For loans against shares, debenture banks are required to strictly observe regulatory restrictions on ‘Exposure Norms’ as explained below. Restrictions on Holding Shares in Companies In terms of Section 19(2)…
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How to calculate compound Interest?
The concept of compound interest or compounding interest is the interest is added back to the principal sum while charging interest for the next period so that interest is earned on that added interest. That is as a result of reinvesting interest, compound Interest (CI) / Cumulative Interest are calculated both on the principal amount…
Advances against book-debts
Book debts are typically made up of sums owed for goods or services supplied or work carried out on credit. Any sum due under a loan may also be treated as a book debt. Book debts in the balance sheet are classified as current assets (Trade Receivables). However, it is important to know that all…
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