ARR: Accounting Rate of Return-advantages and drawbacks
Accounting rate of return (ARR) is a formula that reflects the percentage rate of return expected on an investment, or asset, compared to the initial investment’s cost. ARR calculation can be helpful for a business to determine whether going ahead with a particular investment is the right move. How to calculate ARR? The investing entity…
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What are capital budgeting and cash budget system?
Edited and reposted on August 19, 2021 The Capital Budgeting (also known as investment appraisal) is the process of project appraisal to decide whether the big investment in such a long term project is worth pursuing. The long term investment may be needed to a company for technology up gradations, purchase of new machinery, expansion…
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Bank’s liability to locker hirers is limited to 100 times of annual rent: RBI
The Reserve Bank on Wednesday came out with revised guidelines for the hiring of lockers under which the liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse, or frauds by bank employees. The banks will have to put in place a Board-approved policy outlining their…
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Rupee loan to an NRI/PIO by a resident individual
A resident individual is permitted to make a rupee loan to an NRI/PIO who is a close relative of the resident individual (‘relative’ as defined in Section 2(77) of the Companies Act, 2013 by way of crossed cheque/ electronic transfer subject to the following conditions: The loan amount shall be within LSR limit of USD…
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Now old/sick/incapacitated persons can send an authorized person to Post Office for withdrawal or closure of the account on their behalf.
With a view to enabling the old/sick/incapacitated account holders, the postal department has allowed senior citizens, differently disabled persons, and persons with physical infirmity to authorize a person to operate their post office accounts such as the Senior Citizens Savings Scheme (SCSS), Post Office time deposits, savings account, etc. Up till now, the above facility…
Why savings bank deposits are divided into demand liability and time liability?
The cash reserve ratio is a statutory provision regulated by RBI under Section 42(1) of the Reserve Bank of India Act 1934. Every scheduled bank (that includes public and private sector banks, foreign banks, regional rural banks, and co-operative banks) in India requires to maintaining an average balance with the Reserve Bank of India or…
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