What are capital budgeting and cash budget system?
Edited and reposted on August 19, 2021 The Capital Budgeting (also known as investment appraisal) is the process of project appraisal to decide whether the big investment in such a long term project is worth pursuing. The long term investment may be needed to a company for technology up gradations, purchase of new machinery, expansion…
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Bank’s liability to locker hirers is limited to 100 times of annual rent: RBI
The Reserve Bank on Wednesday came out with revised guidelines for the hiring of lockers under which the liability of banks will be limited to 100 times its annual rent in case of fire, theft, building collapse, or frauds by bank employees. The banks will have to put in place a Board-approved policy outlining their…
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Rupee loan to an NRI/PIO by a resident individual
A resident individual is permitted to make a rupee loan to an NRI/PIO who is a close relative of the resident individual (‘relative’ as defined in Section 2(77) of the Companies Act, 2013 by way of crossed cheque/ electronic transfer subject to the following conditions: The loan amount shall be within LSR limit of USD…
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Now old/sick/incapacitated persons can send an authorized person to Post Office for withdrawal or closure of the account on their behalf.
With a view to enabling the old/sick/incapacitated account holders, the postal department has allowed senior citizens, differently disabled persons, and persons with physical infirmity to authorize a person to operate their post office accounts such as the Senior Citizens Savings Scheme (SCSS), Post Office time deposits, savings account, etc. Up till now, the above facility…
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Why savings bank deposits are divided into demand liability and time liability?
The cash reserve ratio is a statutory provision regulated by RBI under Section 42(1) of the Reserve Bank of India Act 1934. Every scheduled bank (that includes public and private sector banks, foreign banks, regional rural banks, and co-operative banks) in India requires to maintaining an average balance with the Reserve Bank of India or…
RBI to levy penalty on ATMs that run out of cash
Reserve Bank of India has introduced a ‘scheme of penalty for non-replenishment of ATMs’, effective October 1, 2021, wherein banks and white label ATM operators will be penalised, in the event of cash-outs beyond the permissible time limit. According to the scheme, a penalty of Rs 10,000 per ATM will be levied in the event…
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