• As per extant RBI’s guidelines, banks will be free to decide interest rate on loans against these securities, subject to the condition that such interest rate is to be at base rate or above.

The price of gold for the relevant tranche will be published on RBI website two days before the issue opens.

The appellate authority may:dismiss the appeal; orallow the appeal and set aside the Award; orsend the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper; ormodify the Award and pass such directions as may be necessary to give effect to the modified award; orpass any other order as it may deem fit.

Reinvestment deposits are those deposits where interest (as and when due) is reinvested at the same contracted rate till maturity which is withdrawable with the principal amount on maturity date. It is also applicable to domestic deposits.

Answer: No.

Yes, a company can make investment beyond the stipulated limit after exhausting the available limit by obtaining a specific permission from Reserve Bank under a block allocation

• Like other G-Secs, coupon on IIBs would be paid on half yearly basis.

• Fixed coupon rate would be paid on the adjusted principal.

Ans. The credits to the account should represent the funds received from head office through normal banking channels for meeting the expenses of the office and/or the rupee amounts receivable if any, under the contract and no other amount should be credited without prior permission of the Reserve Bank. Similarly debits to this account could be raised only for meeting the local expenses of the office and intermittent remittances pending winding up / completion of the project.

For the intermittent remittances, the AD bank should be satisfied with the bonafides of the transaction and ensure submission of the following documents:

a. An Auditors’ / Chartered Accountants’ Certificate to the effect that sufficient provisions have been made to meet the liabilities in India including Income Tax, etc.

b. An undertaking from the PO that the remittance will not, in any way, affect the completion of the project in India and that any shortfall of funds for meeting any liability in India will be met by inward remittance from abroad.

Ans : User institutions enjoy many benefits from the ECS Debit Scheme like,

• Savings on administrative machinery and costs of collecting the cheques from customers, presenting in clearing, monitoring their realisation and reconciliation.

• Better cash management because of realisation / recovery of dues on due dates promptly and efficiently.

• Avoids chances of loss / theft of instruments in transit, likelihood of fraudulent access to the paper instruments and encashment thereof.

• Realisation of payments on a uniform date instead of fragmented receipts spread over many days.

• Cost effective.