The Important Points to be borne in mind while in Execution of Loan Documents
(The article gives the insight of important points to be borne in mind at the time of execution of loan documents with a to z check-list.) The system of obtaining proper documents as per sanction terms is called documentation. Without the proper documents, it is hard to create a legally enforceable charge for the security offered.…
Read article
CCIL is now Trade Repository
The Clearing Corporation of India Limited (CCIL) is now designated as ‘Trade Repository’ for the OTC interest rate and Foreign Exchange Contract. The designated trade repository will be regulated and supervised under section 34(2) of the Payment and Settlement Systems Act, 2007 (PSS Act). Being a Financial Market Infrastructure (FMI), the repository would function under…
Read article
Pradhan Mantri Fasal Bima Yojana (PMFBY)
The Government of India recently approved the repealing of all earlier schemes under existing National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). A new Insurance scheme called “Pradhan Mantri Fasal Bima Yojana (PMFBY) is put in place which replaces the old schemes from Kharif 2016. For all loanee farmers who borrow…
Read articleInterest rate on small savings schemes slashed
In terms of Government announcement on February 2016, the interest rate on small savings schemes will be notified on quarterly basis hereafter, instead of earlier system of announcing for every year. Accordingly the Government h,as announced the interest rates for the following small savings schemes (for the quarter April 2016 to June 2016) wich are…
Read articleMeaning of ‘diversion of funds’ and ‘siphoning of funds’
The diversion of funds means utilization of funds by the borrower in deviation of sanction terms of the lender, including any of the following occurrences. The credit facility extended for the working capital purposes, used by the unit for long term purposes, which is not in conformity with the sanction terms. The unit deploys borrowed…
Do you know that Repo auction framework is different from Repo rate?
Repo rate is the rate at which the RBI lends shotterm money to the banks against the security of all SLR-eligible transferable Government of India- dated Securities, Treasury Bills and State Development Loans (SDL). The repo auction framework is a new regime for liquidity management to keep overnight rates close to the repo rate. Under…
Read article