HYPOTHECATION

    Hypothecation   Hypothecation is defined in Section 2 of SARFAESI Act. Hypothecation is also done on moveable property like stocks. In case of hypothecation both ownership as well as possession remains with the borrower i.e. neither ownership nor possession is transferred to the bank. The charge created in Hypothecation is equitable charge. When stocks are hypothecated to the

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PLEDGE

    Pledge   Pledge is defined in section 172 of Indian Contract Act. Pledge is the bailment of goods as a security for payment of a debt or performance of a promise. Bailment is defined in Indian Contract Act. Bailment means delivery of goods with some purpose and with the condition that when the purpose is accomplished the goods

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Repurchase transactions (repos) in India 2018

Repurchase transactions (repos) in India 2018 These Directions shall not apply to repo/ reverse repo transactions under the Liquidity Adjustment Facility and the Marginal Standing Facility, which would continue to be regulated as per the existing regulations. Definitions (1) In these Directions, unless the context otherwise requires- (a) “Corporate bonds and debentures” mean non-convertible debt securities issued in India which create or

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New Update on Kisan Credit Card (KCC) Scheme

Kisan Credit Card (KCC) Scheme   Introduction The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production

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Priority Sector Lending – Targets and Classification: Lending to non-corporate farmers – System wide average of last three years

  The system-wide average of the last three years achievement with regard to overall direct lending to non-corporate farmers will be notified in due course, and thereafter, at the beginning of each year.the system-wide average of the last three years achievement with regard to overall direct lending to non-corporate farmers will be notified in due course, and thereafter, at the

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NON PERFORMING ASSETS

The prudent guidelines were first issued by RBI in the year 1991 implemented wef 01.04.1992 on recommendations of Narasimham committee covering, income recognition, asset classification and provisioning. Prudential norms prescribed by RBI include norms relating to Accounting, Exposure, and Capital Adequacy. Prudential accounting norms are income recognition, asset classification and provisioning. Term Loan If Interest and/ or instalment of principal

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