Loans and Advances against Shares, Debentures and Bonds
Banks offer loans against securities for customers’ short-term funding needs. Loans against shares, government bonds, insurance policies, NSCs, and other investments come under this category. For loans against shares, debenture banks are required to strictly observe regulatory restrictions on ‘Exposure Norms’ as explained below. Restrictions on Holding Shares in Companies In terms of Section 19(2)…
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Advances against book-debts
Book debts are typically made up of sums owed for goods or services supplied or work carried out on credit. Any sum due under a loan may also be treated as a book debt. Book debts in the balance sheet are classified as current assets (Trade Receivables). However, it is important to know that all…
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What is Document of title to goods?
A document of title to goods is a formal document that proves ownership of goods or property. A document of title to goods is used in the ordinary course of business to prove possession or control of goods. Section 2(4) of the Sale of Goods Act defines a document of title to goods as “A…
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Advantages, Disadvantages of Credit Cards
Credit cards offer several benefits to merchants and cardholders. Benefits to merchants: Credit card transaction processing directly impacts a business’s ability to provide convenient and secure payment options for customers, which can affect sales, customer satisfaction, and overall growth. Enhanced customer experience By offering a simple, convenient credit card payment experience, businesses can meet the…
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Explained: Operational aspects of credit cards
A Credit card holder is the customer, or consumer, who is using the card for payment or cash withdrawal. Credit card holders can also add authorized users to their account. The authorized user can make purchases, but the primary holder is still responsible for the debt. Credit card issuer: Financial institutions, usually banks and NBFCs,…
Interest subvention scheme for women SHGs under DAY-NRLM
Women Self Help Group (SHG) under DAY-NRLM is a group voluntarily formed by 10-15 women. The special SHG can be formed with 5 persons in the difficult area, remote area, or groups with disabled persons, consisting minimum of 5 persons. The other persons with disabilities, the elders, and trans-genders can only form SHG with both…
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