RBI-Central Banking glossary on Funds and Investment
CASA deposit and Bulk deposit: CASA stands for Current Account and Savings Account in banking parlance. Besides in India, the term CASA is popularly is used in West Asia and South-east Asia countries. The high-cost deposits or bulk deposits are those deposits which are solicited by banks at rates higher than card rates’. Card rates…
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Bank Guarantee for Import of service
The AD Category-I banks are permitted to issue Bank Guarantee to non-resident service provider on behalf of resident customer of the bank. The maximum limit for issue of such guarantee is fixed up to USD 500,000 (increased from previous limit of USD 100,000) or its equivalent. The above limit is not applicable in the case…
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Rupee Loan to NRI/PIO by a resident Indian
The resident individuals are permitted to make Rupee loan to their close relative who is a NRI/PIO. U/s 2(77) companies act 2013, ‘‘relative’’, with reference to any person, means anyone who is related to another, if (i) they are members of a Hindu Undivided Family; (ii) they are husband and wife; or(iii) one person is…
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RBI – Central Banking glossary on risk management
Risk management and capital Management are two sides of the same coin. Both of these indicate that the sufficient capital contribution in the business provides stable resources to help the owner to absorb any losses arising from the risks in a business. The objective of Capital management as well as its risk appetite is to…
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Bank ATMs: Outsourcing of Cash Management and Reconciliation of Transactions
As per committee on currency Chest (Chaired :Shri.D.K.Mohanty) recommendation, RBI advised the banks that they shall follow the below procedure. Cash indents by the Service Provider shall be made at least a day in advance (T-1 where T is the day of cash loading), in consultation with the chest / nodal branch. Cash withdrawal points…
Is registration of a trust statutorily necessary?
Registration of Trust is mandatory in certain cases and not mandatory in some other cases. Let us examine here where the registration of trust is a mandatory requirement. Cases where Registration of Trust is compulsory: The instrument if any, by which the Trust is declared, is called the instrument of Trust or Trust Deed. Section…
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