Difference between Subsidiary company, Sister concern, Associated company,Joint Venture,Conglomerate and Group of companies
A Subsidiary company can be described as an enterprise, the management of which is controlled by a parent company. The parent company is one which has one or more subsidiaries. In all cases the parent company will hold more than half of the voting power of the subsidiary company and controls financial and operating policy…
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New directions to NBFC-Micro Finance Institutions
In the backdrop of Andhra Pradesh -MFI crisis, RBI had made modifications to its earlier directions to NBFC-MFIS to regulate the credit system in the country. Pursuant to being satisfied that the sector has largely moved forward since then, RBI now amended the Non-Systemically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve…
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How CRR and SLR impact on bank credits?
Edited on 20.10.2022 Every commercial bank in India has to maintain reserves under statutory provisioning norms. The change in SLR and CRR either increases or decreases the money supply to commercial banks. This, in turn, affects the lendable resources of banks. Therefore ups and downs of the money supply to the market caused due to…
Read article What is bank rate?
Bank rate is actually the rate of interest at which Reserve Bank of India is lending to commercial banks. Reserve Bank of India is prepared to buy or re-discount bills of exchange or other eligible commercial paper from commercial banks. Bank rate is governed by Section 49 of Reserve Bank of India Act 1934.The effect of…
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What is the difference between Garnishee order & I.T. Attachment order
(This article explains how the garnishee order and IT attachment orders are different and explains the method of disposal by the Bank branches when they receive such orders from the authorities.) Garnishee order & I.T. Attachments are two different types of attachment orders. The Garnishee order is an order issued by the Court to Garnishee…
General Anti-Avoidance Rules (GAAR):
GAAR is a short form of General Anti-Avoidance Rules. The tax avoidance by the individuals and companies is a common fact all over the world. In order to realize more revenues and reduce the revenue loss due to avoidance of tax, the Governments of different countries enact various rules in their country or territory. The…
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