Appraisal: Loan application for construction, alteration, renovation of school building
Term loan application received from educational institutions run by trusts, private management, requires appraisal of the project as well as appraisal of the management. First step of appraisal of project involves verification of whether the institution has the necessary approval from the Government agencies to run the school. Secondly, bank has to verify whether the…
Read article
How to calculate the drawing power of a Cash Credit account?
The Cash Credit limit (known as working capital limit) is sanctioned by banks and financial institutions to industrial and trading establishments for their investment on various types of current assets used in the operating cycle. This facility offers the borrowers flexibility and comfort to withdraw funds from the bank as per their financial requirement from…
Read article
Availability of 24×7NEFT service to the public from Dec’19
The Statement on Developmental and Regulatory Policies released by RBI yesterday set out various developmental and regulatory policy measures in the areas of Financial Markets; Payment and Settlement Systems; Banking Regulation, Financial Inclusion and Credit flow to NBFCs. Highlight of policies statement are as follows; Payment and Settlement Systems: As cited in the Payment System…
Read article RBI slashes Repo rate by 35 Basis points
RBI decided to cut interest rate by 35 basis points. With this cut RBI reduced Repo rate for the fourth time in a row. The Monitory Policy Committee (MPC) of RBI released its third Bi-Monthly Monetary Policy Rates for 2019-20 today (August 7, 2019). The revised key policy rates are as under. CRR (Cash Reserve…
Read article
What is fiscal policy?
Fiscal policy is the government’s use of spending and taxation to influence the economy. Fiscal policy differs from monetary policy. Monetary policy refers to the management of money supply and interest rate and is the demand side economic policy used by the monetary authority of a country, typically the central bank (in India RBI) or…
Certain changes made in the facilities associated with the BSBDA accounts
With effect from September 1, 2019, Banks are required to frame Board approved policy / operational guidelines in respect of certain changes in Basic Savings Bank Deposit (BSBD) Accounts in the interest of better customer service. RBI on August 2, 2019, asked Banks to offer the following basic minimum facilities in the BSBD Account, free…
Read article