Foreign Currency Accounts of Ship-manning and Crew management agencies
The shipping or airlines company incorporated outside India can open, hold and maintain non-interest bearing foreign currency account with AD category-I bank in India. The balance available in that type of foreign currency account can be used by Shipping or Airlines Company for the purpose of local expenses. The AD banks who open such foreign…
Read article
Difference between Subsidiary company, Sister concern, Associated company,Joint Venture,Conglomerate and Group of companies
A Subsidiary company can be described as an enterprise, the management of which is controlled by a parent company. The parent company is one which has one or more subsidiaries. In all cases the parent company will hold more than half of the voting power of the subsidiary company and controls financial and operating policy…
Read article10 entities got licences to set up Small Banks
RBI on September 16, 2015 granted in-principle approval to 10 entities to set up small finance banks. The in princile approval is valid for 18 months.The entities who got the permission are Ujjivan Financial Service (Bengaluru),Janalakshmi Financial Service ( Bengaluru) Au Financiers (Jaipur), Equitas Holdings (Chennai),Capital Local Area Bank (Punjab), Disha Microfin (Ahmedabad), ESAF Microfinance (Chennai), RGVN (North East)…
Read articleModalities for commission payable to KVP agents at Banks
The authorized agent who canvasses for sale of Kisan Vikas Patra (KVP) is eligible to receive the commission from the bank to which he/she is attached for the purpose.The agent can register at multiple branches of banks in his/her area of operation for the purpose of canvass and purchase of KVP certificates on behalf of…
Read article
How to mitigate Counterparty Risks?
The flows of credit from commercial banks are the major and the most noticeable cause of credit risk. Besides loans there is other type of credit risks in banking operations which is called counterparty risk. Loan has default risk; a derivative has counterparty risk. We are discussing here on Counterparty risks. What is the meaning…
RTGS time window w.e.f September 1, 2015
In view of 2nd and 4th Saturdays of the month declared as public holidays for banks with effect from September 1, 2015, there is a change in RTGS time window. Hereafter, transactions will not take place on 2nd and 4th Saturdays of the month. Further, the process of future value dated transactions under RTGS which…
Read article