Applicability of Stamp duty when signatories are in different states/abroad
Stamp duty payable on an instrument/document when joint executants are in different state The section 17 of Stamp act 1899 provides that all instruments chargeable to the duty and executed by any person in India shall be stamped before or at the time of execution of the instrument. Section 19A provides that added stamp duty…
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All you need to know about a cheque
(This post explains Legal amount and courtesy amount,Effect of date written in Saka samvat,Cheques written in Regional Language, meaning of e-cheque.) A cheque has three principal parties viz. Drawer; Drawee and Payee. The drawer is the person who issues (draws) the cheque. The drawee is the paying bank whose name and address is printed on…
Read article What is Cheque Truncation System?
The Cheque Truncation System (CTS) is an online Image-based Clearing System (ICS). In this system of clearing, the collecting bank need not present the physical cheque to the drawee branch. The presenting bank captures the cheque images and Magnetic Ink Character Recognition (MICR) data from end-to-end precise scanners by using the Capture System. The electronic…
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What is call money market?
Every commercial bank in India borrow funds from other banks to cover a sudden shortfall in cash on a particular day in the following circumstances. to tide down the temporary requirements of funds due to liquid asset-liability mismatch to meet the mandatory requirement of CRR&SLR or to meet the demand for funds arising out of…
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What is the meaning of Inchoate cheque?
A cheque signed by a drawer of cheque without completing the material particulars such as date, amount or name of the payee, it is known as an inchoate or incomplete cheque. When the drawer of a cheque hands over an inchoate cheque to a payee, prima facie he has given authority to the payee to…
Different types of Repos in money market
Most of you are aware of repurchase options (REPOS) a temporary Liquidity Adjustment Facility (Temporary need by RBI to Indian banks. Repo transactions, transactions also taking place between RBI and primary dealers, banks to banks, banks to other counterparties, primary dealers to primary dealers and primary dealers to other counterparties. In the money market, internationally…
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