What are the conditions apply for loan against FCNR/NRE deposits?
Q: Is there any upper limit for loans against security of NRI’s term deposits like FCNR/NRE? Ans.: Except usual margin requirement, no upper ceiling is prescribed for loans to NRIs or third parties in India against security of FCNR/NRE deposits. However, the loan shall be for the purpose other than the investments specified in FEMA…
Read article
What is a power of attorney (POA)?
A Power of attorney (POA) is a written instruction by which one person is empowered to act on behalf of another. That is to say, to do any lawful act or series of lawful acts on behalf of the principal person by his agent. The Power of Attorney can be made in two types, special…
Read article
What is a mandate?
The mandate and power of attorney are the rights cast upon a third person to act on behalf of the principal person/s. The rights of mandate and power of attorney holders are very similar in the operation of bank accounts but they are issued for different reasons and purposes. A mandate is a simple letter…
Read article
How LIBOR benchmark is calculated?
LIBOR is the acronym for London Interbank Offered Rate. The ‘LIBOR’ serves as the key benchmark rate in calculating interest rates on various loans across the world. Each morning before 11 a.m. (GMT), the sets of major banks that have a significant presence in the London market are asked the rate at which they could…
Read article What is Mibor?
MIBOR stands acronym for ‘Mumbai Inter- bank Outright Rate’, the benchmark of the Indian call money market. It is the rate at which banks borrow unsecured funds from one another in the inter bank market. The bid rate on how much interest banks would pay to borrow money on a short-term basis from other institutions…
What is a strategic alliance?
A strategic alliance is an agreement between two or more independent organizations that agree to share resources to undertake a specific, mutually beneficial objective. The strategic alliance is akin to partnership project, the relation fall short of legally banded partnership. The agreement may be formal or informal in nature, but each party’s responsibilities must be…
Read article