All posts by Tina Saha - 375. page

Professional Tax Consultant and Article Writer

Asset Classification Norms The asset classification norms for sale/purchase of NPAs are as follows: (i) The non-performing financial asset purchased, may be classified as ‘standard’ in the books of the […]

Guidelines on Sale/Purchase of NPAs The Master Circular on Advances require the Board of Directors of the banks to lay down policy in respect of the aspects relating to sale/ […]

Securitisation of Standard Assets After the enactment of the Securitization and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002, banks have got significant power to possess the […]

Spread (i) Banks should have a Board approved policy delineating the components of spread charged to a customer. It should be ensured that any price differentiation is consistent with bank’s […]

System of Base Rate and Interest Rate The RBI vide its Circular No. DBR.No.Dir.BC.9/13.03.00/2015-16 dated April 1, 2015and DBR.No.Dir.BC.67/13.03.00/2015-16 dated December 17, 2015 on “Interest Rates on Advances” required the […]

Sectoral Distribution Advances are required to be classified, inter alia, into those in India and those outside India, with further sub-classification under each category. One such sub-classification that merits discussion […]

Regulatory Limit A. Solo Basis The aggregate exposure of a bank to the capital markets in all forms (both fund based and non-fund based) should not exceed 40 per cent […]

Statutory limit on shareholding in companies No banking company is permitted to hold shares in any company, whether as pledgee, mortgagee or absolute owner, of an amount exceeding 30 percent […]

Financing of Joint Ventures Banks are allowed to extend credit/non-credit facilities (viz. letters of credit and guarantees) to Indian Joint Ventures/Wholly-owned Subsidiaries abroad and step-down subsidiaries which are wholly owned […]

Lending for Real Estate Banks are required to frame comprehensive prudential norms relating to the ceiling on the total amount of real estate loans, single/group exposure limits for such loans, margins, […]