Execution of Loan Documents: The manager must remember these 29 important points
The main concern of a bank is that security available to it should be good enough to fall back upon, in the event of adverse circumstances. The role of loan documentation in the bank is to establish a legal relationship between the lender and the borrower when the dispute goes to a court of law.…
Read article
How do banks determine ‘Spread’ in respect of interest on advances?
The interest rate on advance levied by banks comprises the BPLR, Base rate, MCLR rate, or external benchmarks like Repo-linked lending of the respective bank, and the ‘Spread’ over the cost of lending is decided by the bank’s Board. The determination of ‘Spread’ varies on each category of advance depending upon the tenure of the…
Read article
Implementation of Ind AS: Recognition of unrealised income by ARCs in their financial statements
RBI on Monday, in its notification, observed that consequent to the implementation of Ind AS, some Asset Reconstruction Companies (ARCs) have been recognising management fees even though the said fee had not been realised for more than 180 days. In view of the above the notification said that ARCs preparing their financial statements as per…
Read article
Right of set-off and the important requirement to initiate the same
The banker’s right to combine different accounts of a person against the debt it holds against the same person is called the right to set off. The right of set-off is available to the bank only when the money owed to the bank is a certain sum, which should be due at the time of…
Read article
Income tax slabs and rates for FY 2023-24(AY 2024-25) under old and new regimes
Before listing out the new slabs in the budget 2023, the finance minister announced that the Old Tax Regime will only be available on request now, and what was known as the New Tax Regime so far will thus be considered the default regime. The taxpayers can choose the regime while filing income tax returns.…
All inbound travelers with Int’l mob no. will have UPI access for merchant payments in India
India’s central bank on Wednesday announced that all inbound travelers to India are permitted to access UPI for their merchant payments (P2M) using their international mobile numbers, while they are in the country. This is an enhancement to the earlier provision of UPI access to non-resident Indians who have international mobile numbers linked to their…
Read article