HUF is the acronym for Hindu Undivided Family. A HUF can be formed by members of a family, wherein the members are lineal ascendants or descendants of Hindus, Buddhists, Jains, and Sikhs religions. The eldest member becomes the Karta of HUF. Other members of the family are called coparceners. The coparceners share equally with the…
KYC is necessary for opening and maintaining current accounts of individuals, proprietorship, partnership firms, corporates, trusts, Associations, societies, clubs etc. When the bank accounts of individuals are opened, banks mainly look into the identity and address proof of the applicant such as official valid documents (OVDs) like Aadhar card, Voter ID, PAN card, Driving License,…
The settlement of claims in respect of missing persons being done under the provisions of Section 107 / 108 of the Indian Evidence Act, 1872. Section 107 deals with the burden of proving whether a missing person is alive or dead and the burden of proving that he is dead is on the person who…
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…
As per the existing RBI guidelines, the banks cannot open the current account of prospective customers without obtaining a ‘No-objection letter’ from the lending banks and in case no response is received from the existing bankers after a minimum waiting period of a fortnight. The Reserve Bank of India in their notification informed that they…
The Government of India has provided additional relaxation for the purpose of address in addition to the relaxation in proof of identity under simplified measures of PML rules. Accordingly RBI has notified that the following additional documents are deemed to be Officially Valid Documents (OVD) for proof of address. Utility bill which is not more…
In case of opening accounts of proprietorship concerns, apart from customer identification procedure as applicable to the proprietor, banks and financial institutions call for and verify the activity proof of the concern. The default rule under KYC is that any two documents, out of following documents listed in paragraph 2.5(h) of RBI Master Circular should…
RBI has been imposing heavy penalties on banks who have not complied or the account opened in contravention of various directions and instruction issued by it, which includes failure to obtain adequate documents for opening accounts, failure to carry out identification procedures, failure to examine control structure of entities. However, with a view to helping…
(This article explains how the garnishee order and IT attachment orders are different and explain 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…
A partnership is that two or more people jointly carry on a business and share its profit or loss. All the partners are jointly and severally liable for the debts of the business. The partnership can be made by partnership deed. Registration of partnership deed is optional. In case, partnership deed is not registered, the…