Opening of current accounts in banks
A Current account in a bank is a running account (also known as demand deposit) maintained in banks mostly for the purpose of business. The following types of entities are eligible to open current accounts in banks. Individual/Proprietorship Account Hindu Undivided Family (H.U.F) Account Partnership concerns/Limited Liability Partnership (LLP) Limited and Private Companies Trust Account…
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RTGS time window extended
RBI vide its notification RBI/2018-19/189 DPSS (CO) RTGS No. 2488/04.04.016/2018-19 dated 28.05.2019 announced that it has extended the timings for customer transactions (initial cut-off) in RTGS time window from 4:30 pm to 6:00 pm. with effect from June 01.06.2019 which will be asunder. Sr. No. Event Time 1. Open for Business 08:00 hours 2. Customer…
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How a bank charges on early delivery or cancellation of forward contracts?
(This post explains how bank calculate early delivery or cancellation losses of forward contract with examples) Whenever an exporter wants to undertake a Forward (Sale) Contract against his receivable he will do so with a rough idea of the time period in which he can expect his buyer to send the payment. Forward contract is…
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What is NDS-OM Web
NDS-OM Web Module is only an electronic front end for accessing the main NDS-OM system. It is a screen based electronic anonymous order matching system for secondary market trading in Government securities. Earlier, Gilt Account Holders (GAH) who have gilt account with the PMs were permitted to have indirect access to the NDS-OM system i.e…
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Forward Contract explained
A forward contract is a customized contract between two parties to buy or sell an asset at a price agreed upon today on a specified future date. Under forward contract, there is an obligation for the buyer to pay for what has been bought and receive delivery thereof as per the contract, and for the…
RBI-Central Banking glossary on Funds and Investment
CASA deposit and Bulk deposit: CASA stands for Current Account and Savings Account in banking parlance. Besides in India, the term CASA is popularly is used in West Asia and South-east Asia countries. The high-cost deposits or bulk deposits are those deposits which are solicited by banks at rates higher than card rates’. Card rates…
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