RBI’s disclaimer note on merger of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance Limited (IBHFL)
Reserve Bank of India (RBI) in its press release announced that it has learnt merger of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance Limited (IBHFL)through media. As per media news above entities have made a merger announcement on April 5, 2019 with approval of their respective Boards. RBI’s disclaimer said that a section of…
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Life Insurance policy under Married Women’s Property Act
Under section 6 Married Women’s Property (MWP) Act, all the properties belonging to the women, including insurance policy in the name of the husband purchased under MWPA, gets insulated from court attachments or any income tax attachments. For example, if husband were to default on his loan or personal guarantee provided by him, the properties…
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What is investment reserve account (IRA)?
Banks are required to make provisions for depreciation on investment as a ‘below the line’ item, after arriving at the profit for the period. Whenever provisions so created on AFS and HFT categories is in excess of requisite amount in any year, such excess amount can be credited to the profit and loss account and…
Read article RBI reduces Repo rate by 25 basis points
Reserve Bank of India (RBI) has today (April 4, 2019)announced its first Bi-Monthly Monetary Policy Rates for 2019-20 in Mumbai. The Monitory Policy Committee (MPC) of Reserve Bank of India On the basis of an assessment of the current and evolving macroeconomic situation at its meeting decided to reduce the policy repo rate under the…
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What is Large Exposures Framework (LEF)?
A bank’s exposures to its counterparties may result in a concentration of its assets to a single counterparty or a group of connected counterparties. To address this concentration risk RBI has fixed limits on bank exposures to an individual business concern and to business concerns of a group. As per current guidelines of RBI a…
What is Investment Fluctuation Reserve (IFR)?
Banks are required to build up of adequate reserves for mark to market (MTM) losses on investments held in AFS and HFT with effect from the year 2018-19. The provisioning for each of these quarters may be spread equally over up to four quarters, commencing with the quarter in which the loss is incurred. The…
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