Loan provisioning process explained with examples
The potential loan losses arise to banks and financial institutions due to default of repayments from borrowers or renegotiated terms of a loan or one time settlement that incur lower than previously estimated repayments. The provision for loan loss is the money banks and financial institutions set aside to cover these potential losses on their…
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Opening of Foreign Currency Accounts by Re-insurance and Composite Insurance brokers
In terms of notification No. FEMA 10(R)(2)/2019-RB dated February 27, 2019, the Reserve Bankof India on April 2019 advised all ategory – I Authorised Dealers and Authorised Banks that they may open interest free foreign currency accounts for reinsurance brokers. A According to the notification, re-insurance and composite insurance brokers registered with IRDA may open…
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Latest interest rate on small saving schemes
The Finance Ministry in its communication said that it has decided to keep the interest rate unchanged on small savings schemes for the three-month period beginning April 1.The announcement covers small-saving schemes such as the Post Office Saving Accounts, Post Office Time Deposits, the National Saving Certificates (NSC), the Public Provident Fund (PPF), the Kisan…
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New rules for setting up Currency Chest
RBI on 08.04.2019 notified new minimum standard for setting up new currency chests as per recommendations of Currency Movement Committee. The Currency Movement Committee headed by Shri. D. K. Mohanty had recommended Reserve Bank that it should encourage banks to open large Currency Chests (CCs) with modern facilities and Chest Balance Limit (CBL) of at…
Read article RBI’s disclaimer note on merger of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance Limited (IBHFL)
Reserve Bank of India (RBI) in its press release announced that it has learnt merger of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance Limited (IBHFL)through media. As per media news above entities have made a merger announcement on April 5, 2019 with approval of their respective Boards. RBI’s disclaimer said that a section of…
Life Insurance policy under Married Women’s Property Act
Under section 6 Married Women’s Property (MWP) Act, all the properties belonging to the women, including insurance policy in the name of the husband purchased under MWPA, gets insulated from court attachments or any income tax attachments. For example, if husband were to default on his loan or personal guarantee provided by him, the properties…
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