RBI’s Banking Ombudsman: Appointment, Offices, and the Centralized Grievance Hub
In India’s dynamic financial landscape, trust remains the cornerstone of banking. To safeguard this trust and strengthen customer protection, the Reserve Bank of India (RBI) has established the **Banking Ombudsman framework**—an institutional mechanism to resolve complaints fairly, quickly, and transparently. Appointment of the Banking Ombudsman The Banking Ombudsman is a senior official appointed by the…
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Understanding Charge in Relation to Securities
The term “charge” carries multiple meanings across disciplines. In law, physics, and finance, its interpretation changes with context. However, in the banking and securities domain, a charge has a very specific significance: it is a legal right granted by a borrower to a lender over assets as security for repayment of a loan. This concept…
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The details of how the registration of charges done under companies act
(This post elucidates the entire process of creation of charge or modification of charge and satisfaction of charge and the requirement of information in the form of a resolution passed in the Board meeting) According to Section 77 of the Companies Act, every company that creates a charge shall register the same with the Registrar…
Read article Right of Appropriation and the rule in Clayton’s Case?
In the case of running accounts like current accounts or cash credit accounts, normally there is no specific appropriation of funds to exact debit. In such cases, it is the first item on the debit side that is discharged or reduced by the first item on the credit side. This principle was originally formulated in…
Read article Law Relating to Securities and Modes of Charge: Mortgage and Other Types of Securities
When banks lend money, they need assurance that the loan will be repaid. This assurance often comes in the form of securities—assets pledged by the borrower that the bank can claim if repayment fails. The law relating to securities and modes of charge provides the legal framework for creating, protecting, and enforcing these rights. For…
What is Mortgage Backed Security (MBS)?
A mortgage-backed security (MBS) is a bond type security in which the collateral is provided by a pool of mortgages. For example, A borrows money from Bank ‘B’ mortgaging his house to Bank ‘B’. The Bank ‘B’ sells the mortgage to a company ‘C’ (which may be a government agency or investment bank or private…
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