Rupee Loan to NRI/PIO by a resident Indian
The resident individuals are permitted to make Rupee loan to their close relative who is a NRI/PIO. U/s 2(77) companies act 2013, ‘‘relative’’, with reference to any person, means anyone who is related to another, if (i) they are members of a Hindu Undivided Family; (ii) they are husband and wife; or(iii) one person is…
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RBI – Central Banking glossary on risk management
Risk management and capital Management are two sides of the same coin. Both of these indicate that the sufficient capital contribution in the business provides stable resources to help the owner to absorb any losses arising from the risks in a business. The objective of Capital management as well as its risk appetite is to…
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Bank ATMs: Outsourcing of Cash Management and Reconciliation of Transactions
As per committee on currency Chest (Chaired :Shri.D.K.Mohanty) recommendation, RBI advised the banks that they shall follow the below procedure. Cash indents by the Service Provider shall be made at least a day in advance (T-1 where T is the day of cash loading), in consultation with the chest / nodal branch. Cash withdrawal points…
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Is registration of a trust statutorily necessary?
Registration of Trust is mandatory in certain cases and not mandatory in some other cases. Let us examine here where the registration of trust is a mandatory requirement. Cases where Registration of Trust is compulsory: The instrument if any, by which the Trust is declared, is called the instrument of Trust or Trust Deed. Section…
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Risks in Foreign Exchange dealings
The business of foreign exchange dealing is confronted with multiple numbers of risks viz. Rate risk, Open Position risk, Maturity Mismatches risk, overtrading risk, Cash Balance Risk, Counterparty risk, Country risk, Fraud Risk, and so on. Nevertheless, like in any other business, risk taking in forex dealing is also inevitable as it also presents possibilities…
Person resident in India VS ordinarily and not ordinarily resident
The terms citizen, nationality and domicile are different to residential status of a person. The residential status of a person in India is based on two different Acts viz. (i) Income Tax Act, 1961, ( I.T. Act) (ii) Foreign Exchange Management Act 1999. Under Income Tax Act, the residential status of a person is decided…
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