Loans to illiterate persons: Execution of loan documents
Loans must be made available to illiterate customers as are offered to other customers. Their inability to read the contents of document and execution thereof should not be a criterion for sanctioning/denying a loan. As far as execution of documents there is no distinction under law, between a literate and illiterate person. Therefore, the requirements…
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Currency Distribution and Exchange Scheme (CDES) of RBI
Cash management refers to a broad area of finance involving the collection, handling, and usage of cash. Issuance and distribution of cash is one of the important functions of Reserve Bank of India. The RBI has agency arrangements mainly with scheduled commercial banks, under which a currency chest is managed. Bank notes and coins are…
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Dearness Allowance (DA) for Bank employees and officers for the months of May 2016 to July 2016
On the basis of CPI data announced by the Government for the month of Janaury 2016 to March 2016, the DA payable for Bank employees and officers for the months of May 2016 to July 2016 is reduced by 7 slabs at a rate of 0.10% per slab. The DA for the quarter Febraury 2016…
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Dealing in Priority Sector Lending Certificates (PSLCs)
[This post answers many questions like ‘What is a PSL certificate?’, ‘Who needs PSLCs?’, ‘How the limit for issuance of each category of PSLC is decided?’ ‘How the PSLC transactions are computed for the determination of PSL target/sub-targets?’, ‘Is there any expiry date for PSLCs?’, ‘Whether the loan assets or risks of loan defaults are…
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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.…
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…
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