Revised guidelines for Merchanting Trade Transactions (MTT)
In the Indian context, when a transaction involves the shipment of goods from one foreign country to another foreign country through an Indian Intermediary it is called merchanting trade or Intermediary trade. Goods involved in the merchanting trade transactions would be the ones that are permitted for exports/imports under the prevailing Foreign Trade Policy (FTP)…
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Permissible activities of IFSC Banking Units (IBUs)
The Reserve Bank of India on Tuesday (21/01/2020) issued directions relating to IFSC Banking Units (IBUs) governed under ‘Currency Futures in International Financial Services Centre (Reserve Bank) Directions, 2020’ which shall come into force with effect from the date of its publication. IFSC is an abbreviation for International Financial Services Centres and IFSC Banking Units…
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FRDI bill comes back as FSDR bill with some modifications
The FRDI Bill launched wild rumours all over the country, sowing seeds of distrust among bank customers over a “bail-in” clause, which theoretically allowed beleaguered banks to scoop up depositors’ money to stop them from going bust. However the ill-conceived FRDI bill was withdrawn by the Government and now replaced the same by a new…
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Card Transactions to be mandatorily disabled for online transactions if not used before
The Reserve Bank of India on Thursday (January 16, 2020) has introduced new rules to enhance the security of card transactions. As per RBI notification, while issuing and reissuing the debit and credit cards, banks must ensure that all the debit cards and credit cards are enabled only for domestic transactions at ATMs and point…
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When a bank guarantee favouring Government and others actually discharges the issuer from liabilities?
Inasmuch as, the legal provisions governing Contract of Guarantee, the guarantees furnished by the banks in favour of Government Departments in the name of the President of India, has validity period of 30 years as per limitation act 1963.In the light of above section of limitation act, many readers are asking the questions whether the…
13th January Bipartite talks between UFBU and IBA breaks down
During the course of the bipartite talks on 13/01/2020, IBA went on the back foot on some of the issues, which was earlier considered positively. Initiating the prelude speech IBA Chairman Shri. Rajnish Kumar narrated the general scenario in the banking sector and the constraints under which all of us were working, particularly in the…
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