The Negotiable Instruments (Amendment) Act, 2018 (Amendment) received the assent of the President on 2nd August 2018. The Sec 143 A & 148 which have been now inserted in the NI acts is in addition to Section 138 of NI acts which is dealing in cheque bounce cases. Equipped with the newly inserted sections to…
A negotiable certificate of deposit (NCD) is a certificate of deposit issued by the banks and it is freely negotiable unlike non-negotiable CDs which cannot be transferred, sold, bought, or exchanged. The Certificates of Deposit (CDs) were introduced in India in 1989.Minimum amount of a CD should be Rs.1 lakh. In India, CDs in physical…
December 5, 2018: The Monitory Policy Committee (MPC) of Reserve Bank of India in its fifth Bi-Monthly Statement for 2018-19, announced today(December 5,2018) keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent. Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal…
We find many a time, companies struggle to meet their day to day operating expenses, not because they failed to generate adequate money out of their business but they were not able to manage their cash. Cash management speaks of a wide-ranging area of finance involving the collection, handling, and usage of cash. It also…
The liquidity coverage ratio (LCR) refers to highly liquid assets held by financial institutions to meet short-term obligations. LCR forms on traditional liquidity “coverage ratio” methodologies used internally by banks to assess exposure to contingent liquidity events. The LCR guidelines ensure reduction in funding risk over a 30 days horizon by requiring banks to fund…
NSFR or Net Stable Funding Ratio is a significant component on Liquidity Standards of the Basel III reforms. The guidelines in this regard finalized by RBI for implementation will come into effect in India from April 1, 2020. Unlike LCR guidelines which promote short term resilience of a bank’s liquidity profile, the NSFR guidelines ensure…
11th BPS/Joint Note (Talks held on November 30, 2018) In today’s meeting (30.11.2018), IBA improved their offer to 8%. We(UFBU) replied it is far below our expectation and urged upon them to improve their offer. We also demanded full mandate. These issues will be pursued further. Thereafter UFBU meeting decided to go on strike on…
The interest Equalisation Scheme (IES) for pre and post shipment rupee export credit is being implemented by Directorate (DGFT) through commercial banks.The scheme came into effect from 01.04.2015 and is for a period of 5 years.(The scheme was earlier called as ‘interest subvention scheme’ which was existing for the period from August 2010 to 31.03.2015).…
Foreign exchange Management Act (FEMA) 1999 came into effect in India from June 1, 2000 replacing earlier law FERA 1973. FEMA is a regulatory mechanism that enables the Reserve Bank of India to pass regulations and the Central Government to pass rules relating to foreign exchange in tune with the Foreign Trade policy of India.…
Option is an agreement between two parties offering to buy or sell a security (a stock, bond, commodity or other instruments) from or to the other party at a specified price within a specific time period. In option contracts, there is no obligation on the part of buyer or seller to buy or sell the…