Description
This is a presenation that includes RBI in terms of LEGAL FRAMEWORK, MAIN FUNCTIONS, VARIOUS DEPARTMENTS
LEGAL FRAMEWORK ? MAIN FUNCTIONS OF RESERVE BANK OF INDIA ? FUNCTIONS OF VARIOUS DEPARTMENTS OF RESERVE BANK OF INDIA
?
RESERVE BANK OF INDIA
1/31/2013 1
• • • • • • • •
HILTON YOUNG COMMISSION RECOMMENDATIONS TO REGULATE ISSUE OF BANK NOTES; TO MAINTAIN RESERVES WITH A VIEW TO SECURING MONETARY STABILITY; TO OPERATE CREDIT AND CURRENY SYSTEM… COMMENED OPERATIONS IN 1935 TAKING OVER FUNCTIONS FROM GOVT AND IMPERIAL BANK… PLAYING A SPECIAL DEVELOPMENTAL ROLE - AGRI SET UP DICGC, UTI, IDBI, NABARD, DFHI…………….. SUBSIDIARIES – NHB, NABARD, DICGC, BRBNMPL
THE CENTRAL BANK
1/31/2013 2
•
• • •
“…………. TO REGULATE THE ISSUE OF BANK NOTES AND KEEPING OF RESERVES WITH A VIEW TO SECURING MONETARY STABILITY IN INDIA AND GENERALLY TO OPERATE THE CURRENY AND CREDIT SYSTEM OF THE COUNTRY TO ITS ADVANTAGE.” GOVERNED BY A CENTRAL BOARD OF DIRECTORS CONSTITUTED BY GOVERNMENT OF INDIA CONSISTS OF OFFICIAL AND NON-OFFICIAL DIRETORS APPOINTED BY GOI FOR FOUR YEARS
THE PREAMBLE…
1/31/2013 3
RBI LOCAL BOARDS
• • •
•
4 LOCAL BOARDS – ONE EACH FOR 4 REGIONS WESTERN – MUMBAI, EASTERN - CALCUTTA, SOUTHERN – CHENNAI, NORTHERN – DELHI BOARD CONSISTS OF FIVE MEMBERS EACH AND MEMBERS ARE APPOINTED FOR A TERM OF FOUR YEARS BY THE CENTRAL GOVERNMENT RBI FUNCTIONS UNDER LEGAL FRAMEWORK OF
– UMBRELLA ACTS………………………….. – ACTS GOVERNING SPEIFIC FUNCTIONS…………. – ACTS GOVERNING BANKING OPERATIONS………… – ACTS GOVERNING INDIVIDUAL INSTITUTIONS
1/31/2013 4
THE ACTS
?
UMBRELLA ACTS……………… ACTS GOVERNING SPECIFIC FUNCTIONS………………
? ? ? ? ? RBI ACT 1934. GOVERNING RBI FUNCTIONS… ? BANKING REGULATION ACT 1949… FINANCIAL SETOR
?
?
ACTS GOVERNING BANKING OPERATIONS……………
PUBLIC DEBT ACT, 1944 SECURITIES CONTRACTS (REGULATION) ACT, 1956 INDIAN COINAGE ACT, 1906 FOREIGN EXHANGE REGULATION ACT, 1973 / FEMA, 1999 WHICH GOVERNS FOREX MARKET…………..
? COMPANIES ACT 1956………….. ? BANKING COMPANIES ACT, 1970/1980………
1/31/2013 5
?
ACTS GOVERNING INDIVIDUAL INSTITUTIONS
? ? ? ? ? ? SBI ACT, 1954 IDBI ACT, 2003 IFCI ACT, 1993 NABARD ACT NHB ACT DICGC ACT
? BANKERS? BOOKS OF EVIDENCE ACT, ? BANKERS? SECRECY ACT ? NEGOTIABLE INSTRUMENTS ACT…………..
THE ACTS……….2
1/31/2013 6
MAIN FUNCTIONS OF RBI
•
MAINTENANCE OF PRICE LEVEL
– MONETARY POLIY; LIQUIDITY; CREDIT GROWTH / EXPORT DEMAND; INTEREST RATES; INFLATION…
•
REGULATOR AND SUPERVISOR OF FINL? SYSTEM
– INSPECTION PUBLIC OF BANKS;EFFECTIVE SERVICE TO
• •
MANAGER OF FOREIGN EXCHANGE
– FEX RESERVES; EXPORTS; INVESTMENT; RATES……….
ISSUANCE AND REPLACEMENT OF CURRENCY
– RBI – ORGANISATIONAL STRUCTURE – FORECASTING DEMAND FOR NOTES AND COINS; NOTE REFUND RULES; CLEAN NOTES IN CIRCULATION
1/31/2013 7
VARIOUS DEPTS / FUNCTIONS
URBAN BANKS DEPT 2. RPCD 3. FEX DEPT 4. FINANCIAL SUPERVISION 5. DEPT OF BANKING SUPERVISION 6. DNBS 7. DBOD 8. DEPT OF IT 9. LEGAL DEPT 10. MONETARY POLICY DEPT
1.
1/31/2013 8
DEPTS…2
11. INTERNAL DEBT MANAGEMENT DEPT… 12. DEPT OF EXTERNAL INVESTMENTS & OPERATIONS 13. DEPT OF GOVERNMENT AND BANK ACCOUNTS 14. DEPT OF ECONOMIC ANALYSIS AND POLICY 15. DEPT OF STATISTICAL ANALYSIS AND COMPUTER SERVICES 16. DEPT OF PAYMENT AND SETTLEMENT SYSTEMS
1/31/2013 9
a.
PRINCIPAL
1. ACCEPTING DEPOSITS
1) DEMAND (SAVINGS AND CURRENT ACCOUNTS) 2) TIME (RECURRING AND FIXED DEPOSITS)
2. GRANTING ADVANCES
1) SHORT AND LONG TERM LOANS
3. INVESTMENTS
1) SLR AND OTHERS
b.
ANCILLIARY
Commercial Banking Functions
2/15/2009 10
•
ANCILLIARY FUNCTIONS
1. DISCOUNTING OF BILLS AND CHEQUES 2. COLLECTION OF BILLS AND CHEQUES 3. REMITTANCES – DOMESTIC AND INTERNATIONAL 4. SAFE CUSTODY OF ARTICLES 5. SAFE DEPOSIT LOCKERS 6. ISSUE OF LETTERS OF CREDIT 7. ISSUE OF GUARANTEES 8. DEMAT ACCOUNTS AND 9. OTHER SERVICES LIKE BILL PAYMENTS, ETC…
BANKING FUNCTIONS
2/15/2009 11
•
FUND BASED
1. TERM LOANS 2. WORKING CAPITAL (SHORT TERM LOANS)
a) b) c) d) CASH CREDIT (HYPOTHECATION, PLEDGE) OVERDRAFTS (CLEAN AND SECURED) BILL FINANCE (CLEAN, DOCUMENTARY) EXPORT FINANCE (PRE-SHIPMENT & POSTSHIPMENT)
•
NON-FUND BASED (OR FEE-BASED)
1. ISSUE OF LETTERS OF CREDIT AND GUARANTEES BANKING FACILITIES (LOANS 2. DEFERRED PAYMENT GUARANTEES AND ETC)ACCEPTANCES
2/15/2009 12
1.
1. SAVINGS AND CURRENT AOUNTS………DEPOSITS 2. WORKING CAPITAL, BILLS DISCOUNTED, OVERDRAFTS AND OTHER SHORT TERM LOANS
2.
DEMAND (SHORT TERM) LIABILITIES:
1. FIXED AND RECURRING DEPOSITS 2. TERM LOANS (FOR OVER ONE YEAR)
TIME (MEDIUM & LONG TERM) LIABILITIES:
DIFFERENT TYPES OF ACCOUNTS…1
2/15/2009 13
• •
INDIVIDUAL OR INSTITUTIONAL (PARTNERSHIP FIRM, TRUST, PVT LTD OR PUBLIC LTD COMPANY, ETC………………..)
•
•
DOMESTIC OR NON-RESIDENT ACCOUNTS
SINGLE OR JOINT (EITHER OR SURVIVOR, BOTH OR SURVIVOR, FORMER OR DIFFERENT TYPES SURVIVOR, ALL OR SURVIVOR, LATER OR OF SURVIVOR OR SURVIVORS…) ACCOUNTS…2
2/15/2009 14
o o o o o o o o
HUF Married women Pardanashin lady Illiterate persons Blind persons Insolvent persons Intoxicated persons Executors and Administrators
Chapter 4 : IYENGAR Different Types of Accounts
2/15/2009
Liquidator, Receiver / Assignee o Trusts o Societies / Clubs o Minors o Agent / Attorney o Joint Accounts o Partnership Firms o Joint Stock Companies VIJAYARAGAVAN
o
15
•
•
•
• •
ANCESTRAL / COMMON OWNERSHIP HINDUS, SIKHS & JAINS CAN FORM HUFs MALE MEMBERS BY BIRTH OR ADOPTION ARE COPARCENERS SENIOR MOST IS KARTA NOT GOVERNED BY PARTNERSHIP ACT
DOCUMENTS TO BE SIGNED BY KARTA… • KARTA IS LIABLE PERSONALLY AS ALSO AS KARTA, BUT COPARCENERS ARE NOT… • KARTA CAN NOT REVIVE TIMEBARRED DEBT • COPARENER CANNOT COUNTERMAND A CHEQUE
•
1. HINDU UNDIVIDED FAMILY
2/15/2009 16
•
•
•
DEATH OF A COPARCENER DOES NOT DISSOLVE A HUF – BALANCE TO BE PAID AS A CLAIM CASE… IN CASE OF DEATH, INSOLVENCY OR INSANITY OF A COPARCENER/KARTA, FRESH HUF DELARATION SHOULD BE TAKEN KARTA CAN
– COMPROMISE AND REFER TO ARBITRATION – GIVE VALID DISCHARGE TO DEBT AND MAKE PART PAYMENT – ENTER INTO PARTNERSHIP AND DELEGATE AUTHORITY TO OPERATE THE ACCOUNT TO ANY ONE.
HINDU UNDIVIDED FAMILY…2
2/15/2009 17
• •
• • •
A SEPARATE LEGAL ENTITY SEC 14 OF HINDU SUCCESSION ACT PROVIDES THAT PROPERTY OF A HINDU FEMALE IS HER ABSOLUTE PROPERTY CAN RAISE LOANS AGAINST HER OWN PROPERTY SOLVENCY NOT RELATED TO HER HUSBAND HUSBAND LIABLE FOR HER DEBTS IF: CAN BE AN EXECUTOR OR ADMINISTRATOR 2. MARRIED WOMEN WITHOUT ANY HELP OR GUIDANCE
2/15/2009 18
– HAS CONSENTED AND STANDS SURETY – LOAN IS AVAILED FOR NECESSICTIES OF HER LIFE
•
CONTRACT WITH HER IS NOT FREE FROM DEFECTS ? PRESUMPTION OF UNDUE INFLUENCE ? GENERALLY DISCOURAGE ACCOUNTS IN HER NAME AS HER IDENTITY CAN NOT BE ASCERTAINED ? ABSOLUTE CARE TO BE TAKEN WHILE DEALING WITH HER
?
3. PARDANASHIN LADY
2/15/2009 19
• • • •
•
•
GET INTRODUTION AND WITNESS PHOTOGRAPH TO BE CHANGED EVERY 3 YEARS TAKE IDENTIFICATION MARKS PAYMENT ONLY IN PERSON THROUGH CASHIER ONLY IN CASE OF ANY DISPUTE OR EXPLANATION OF RULES, TAKE INDEPENDENT WITNESS NOTING „ILLITERATE A/C„ TO BE MADE ON THE LEDGER FOLIO AND ACCOUNT OPENING FORM
4. ILLITERATE PERSONS
2/15/2009 20
• • • •
•
• •
GET INTRODUCTION AND WITNESS PHOTOGRAPH TO BE CHANGED EVERY 3 YEARS TAKE IDENTIFICATION MARKS PAYMENT / RECEIPTS TO BE GOT WITNESSED BY AN INDEPENDENT PERSON IN CASE OF ANY DISPUTE OR EXPLANATION OF RULES, TAKE INDEPENDENT WITNESS NOTING “BLIND PERSON” TO BE MADE ON LEDGER FOLIO / ACCOUNT OPENING FORM ADVISED TO OPEN JOINT ACCOUNT
5. BLIND PERSONS
2/15/2009 21
ALL TRANSACTIONS MADE SUBSEQUENT OR DURING LAST SIX MONTHS ARE INVALID • CANNOT OBTAIN CREDIT FOR MORE THAN Rs 50 • MINORS / LUNATICS CANNOT BE DECLARED INSOLVENT • SHOULD BE STOPPED AND BALANCE DISPOSED OFF AS PER INSTRUCTIONS OF OFFICIAL RECEIVER •6. INSOLVENT PERSONS CAN ACT AS AN AGENT UNDER INDIAN CONTRACT ACT – SECTION 201
•
2/15/2009 22
INCAPABLE OF ENTERING INTO CONTRACT ? ON NOTICE, TO BE STOPPED AND BALANCE DISPOSED OFF AS PER COURT DIRECTIONS ? IF TEMPORARY DISORDER, PAYMENTS TO BE MADE AFTER OBTAINING CERTIFICATE FROM TWO APPROVED DOCTORS WHO CERTIFY ABOUT MENTAL SOUNDNESS AT THE TIME OF PAYMENT
?
7. INSANE PERSON
2/15/2009 23
CONTRACTS MADE ARE INVALID ? PAYMENTS MADE TO AN INTOXICATED PERSON TO BE ONLY AFTER TAKING TWO INDEPENDENT WITNESSES REGARDING CONDITION OF THE PERSON
?
8. INTOXICATED PERSON
2/15/2009 24
•
•
• • •
PERSON NAMED IN THE WILL OF THE DECEASED PERSON IS THE EXECUTOR; ACCOUNT CAN BE OPENED ON PRODUCTION OF PROBATE PERSON APPOINTED BY COURT IS CALLED THE ADMINISTRATOR AND MUST PRODUCE LETTER OF ADMINISTRATION PAYMENT CAN BE STOPPED BY ANY ONE….. UPON DEATH OF ONE EXECUTOR, POWERS VESTED IN THE SURVIVING EXECUTOR…. CAN BORROW FOR THE IMMEDIATE NEEDS OF PROPERTY…………..
9. EXECUTORS AND ADMINISTRATORS
2/15/2009 25
• • • •
•
APPOINTED IN CASE OF A COMPANY (IN LIQUIDATION) RECEIVER / ASSIGNEE TO MANAGE THE PROPERTY OF AN INSOLVENT PERSON LETTER OF PROBATE / ADMINISTRATION NEEDED STYLE AND STATUS TO BE MENTIONED IN THE TITLE OF THE ACCOUNT NO LOAN CAN BE GRANTED…
10. LIQUIDATOR, RECEIVER / ASSIGNEE
2/15/2009 26
11. TRUSTS
• • • •
• •
•
TRUST DEED TO BE EXAMINED INSOLVENCY OF TRUSTEE DOES NOT AFFECT TRUST PROPERTY TRANSFER OF FUNDS FROM TRUST TO PERSONAL ACCOUNT OF TRUSTEE TO BE INVESTIGATED… ALLOW LOANS ONLY IF PERMITTED IN THE TRUST DEED AND AFTER TAKING PERSONAL GUARANTEE OF THE TRUSTEE TRUSTEES MUST ACT JOINTLY… NO DELEGATION… ON DEATH OF ONE TRUSTEE, TRUST PROPERTY PASSES TO OTHER TRUSTEES; COURT ORDER NEEDED ANY TRUSTEE CAN STOP PAYMENT…
2/15/2009 27
12. SOCIETIES AND CLUBS
• • • •
•
OBTAIN BY-LAWS AND READ THEM CAREFULLY VERIFY REGISTRATION CERTIFICATE… RESOLUTION TO BE PASSED REG ACCOUNT…. IN CASE OF DEATH OF AN AUTHORISED SIGNATORY, OPERATION STOPPED TILL NEW RESOLUTION… BANK CAN OPEN ACCOUNTS FOR AN UNREGISTERED CLUB, INSTITUTION, SOCIETY, ASSOCIATION, SCHOOL, ETC., AFTER SATISFYING ABOUT REPUTATION, RESPONSIBILITY AND STANDING OF OFFICE BEARERS
2/15/2009 28
13. MINORS
• • • • •
•
ANY CONTRACT WITH MINOR IS VOID AB INITIO A/C CAN BE OPENED UNDER GUARDIANSHIP NO LOAN ALLOWED EVEN AGAINST SECURITY UNDER NI ACT, CAN BIND ALL OTHERS EXCEPT SELF… CAN BE ADMITTED ONLY FOR BENEFITS OF A PARTNERSHIP. UPON BECOMING MAJOR (ATTAINING AGE OF 18 YEARS OR 21 YEARS IF COURT HAD APPOINTED A GUARDIAN), HAS OPTION TO REPUDIATE LIABILITY WITHIN SIX MONTHS… CAN BE APPOINTED AS AN AGENT BUT SHALL NOT BE PERSONALLY RESPONSIBLE TO HIS PRINCIPAL WHO SHALL BE RESPONSIBLE FOR THE ACTS OF MINOR AGENT
2/15/2009 29
14. AGENT / ATTORNEY
?
TERMINATION UPON
? ? ? ? DEATH / INSOLVENCY / INSANITY OF PRINCIPAL IF PRINCIPAL REVOKES AGENT?S AUTHORITY IF AGENT RENOUNCES THE AGENCY IF BUSINESS OF AGENCY IS COMPLETED
2/15/2009
30
15. JOINT ACCOUNTS
?
?
?
? ?
APPOINTMENT OF AGENT SHOULD BE CONFIRMED BY ALL…………. OPERATIONS TO BE STOPPED IN CASE OF DEATH, INSOLVENCY, INSANITY OF ANY ONE. PAYMENT TO BE MADE TO SURVIVORS / LEGAL HEIRS OF THE DECEASED… ANY ONE CAN STOP PAYMENT…………………… ALTERATION IN A CHEQUE SHOULD BE CONFIRMED BY DRAWER ONLY…. NOT OTHERS…
2/15/2009 31
16. PARTNERSHIP FIRMS
•
•
•
• •
MAX NO. OF PARTNERS : 20; IN CASE OF BANKING BUSINESS FIRM : 10 REGISTRATION NOT MANDATORY; BUT ONLY REGISTERED FIRMS CAN FILE SUITS TO ENFORCE A CONTRACT MINOR CAN BE ADMITTED ONLY TO BENEFITS A PARTNER AN BIND THE FIRM BY DOING USUAL BUSINESS ON BEHALF OF THE FIRM A PARTNERSHIP IS NOT TREATED AS A SEPARATE ENTITY FROM THE PARTNERS….
2/15/2009 32
PARTNERSHIPS…2
•
•
DEATH OF A PARTNER / ADMISSION OF A PARTNER…DISSOLVES THE PARTNERSHIP FIRM IMPLIED AUTHORITY OF PARTNER DOES NOT OVER:
1. SUBMISSION OF A DISPUTE TO ARBITRATION 2. OPEN AOUNT IN HIS NAME FOR FIRM?S BUSINESS 3. ……………….. 4. ……………….. 5. ……………….. 6. ……………….. 7. ………………..
2/15/2009 33
17. JOINT STOCK COMPANIES
?
PRIVATE LIMITED COMPANIES
? MIN 2 AND MAX 50 SHAREHOLDERS ? MIN 2 AND MAX 7 DIRECTORS ? NAME MUST END WITH “PRIVATE LIMITED”
?
PUBLIC LIMITED COMPANIES
? MIN 7 AND MAX (NO LIMIT) SHAREHOLDERS ? MIN 3 AND MAX (NO LIMIT) DIRECTORS ? NAME MUST END WITH “LIMITED”
2/15/2009
34
COMPANIES…2
•
GOVERNMENT COMPANIES
– 51% OR MORE SHARE HELD BY GOVT
DOCUMENTS REQUIRED – MOA, AOA, CERTIFICATE OF INCORPORATION AND CERTIFIATE OF COMMENCEMENT (PUBLIC LTD ONLY) THIRD PARTY CHEQUES ISSUED BY COMPANY NOT TO BE COLLETED / CREDITED TO PERSONAL ACCOUNTS OF DIRECTORS INSOLVENCY / DEATH / INSANITY OF A DIRECTOR DOES NOT AFFECT THE FUNCTIONING OF A COMPANY….
2/15/2009
35
doc_527957055.ppt
This is a presenation that includes RBI in terms of LEGAL FRAMEWORK, MAIN FUNCTIONS, VARIOUS DEPARTMENTS
LEGAL FRAMEWORK ? MAIN FUNCTIONS OF RESERVE BANK OF INDIA ? FUNCTIONS OF VARIOUS DEPARTMENTS OF RESERVE BANK OF INDIA
?
RESERVE BANK OF INDIA
1/31/2013 1
• • • • • • • •
HILTON YOUNG COMMISSION RECOMMENDATIONS TO REGULATE ISSUE OF BANK NOTES; TO MAINTAIN RESERVES WITH A VIEW TO SECURING MONETARY STABILITY; TO OPERATE CREDIT AND CURRENY SYSTEM… COMMENED OPERATIONS IN 1935 TAKING OVER FUNCTIONS FROM GOVT AND IMPERIAL BANK… PLAYING A SPECIAL DEVELOPMENTAL ROLE - AGRI SET UP DICGC, UTI, IDBI, NABARD, DFHI…………….. SUBSIDIARIES – NHB, NABARD, DICGC, BRBNMPL
THE CENTRAL BANK
1/31/2013 2
•
• • •
“…………. TO REGULATE THE ISSUE OF BANK NOTES AND KEEPING OF RESERVES WITH A VIEW TO SECURING MONETARY STABILITY IN INDIA AND GENERALLY TO OPERATE THE CURRENY AND CREDIT SYSTEM OF THE COUNTRY TO ITS ADVANTAGE.” GOVERNED BY A CENTRAL BOARD OF DIRECTORS CONSTITUTED BY GOVERNMENT OF INDIA CONSISTS OF OFFICIAL AND NON-OFFICIAL DIRETORS APPOINTED BY GOI FOR FOUR YEARS
THE PREAMBLE…
1/31/2013 3
RBI LOCAL BOARDS
• • •
•
4 LOCAL BOARDS – ONE EACH FOR 4 REGIONS WESTERN – MUMBAI, EASTERN - CALCUTTA, SOUTHERN – CHENNAI, NORTHERN – DELHI BOARD CONSISTS OF FIVE MEMBERS EACH AND MEMBERS ARE APPOINTED FOR A TERM OF FOUR YEARS BY THE CENTRAL GOVERNMENT RBI FUNCTIONS UNDER LEGAL FRAMEWORK OF
– UMBRELLA ACTS………………………….. – ACTS GOVERNING SPEIFIC FUNCTIONS…………. – ACTS GOVERNING BANKING OPERATIONS………… – ACTS GOVERNING INDIVIDUAL INSTITUTIONS
1/31/2013 4
THE ACTS
?
UMBRELLA ACTS……………… ACTS GOVERNING SPECIFIC FUNCTIONS………………
? ? ? ? ? RBI ACT 1934. GOVERNING RBI FUNCTIONS… ? BANKING REGULATION ACT 1949… FINANCIAL SETOR
?
?
ACTS GOVERNING BANKING OPERATIONS……………
PUBLIC DEBT ACT, 1944 SECURITIES CONTRACTS (REGULATION) ACT, 1956 INDIAN COINAGE ACT, 1906 FOREIGN EXHANGE REGULATION ACT, 1973 / FEMA, 1999 WHICH GOVERNS FOREX MARKET…………..
? COMPANIES ACT 1956………….. ? BANKING COMPANIES ACT, 1970/1980………
1/31/2013 5
?
ACTS GOVERNING INDIVIDUAL INSTITUTIONS
? ? ? ? ? ? SBI ACT, 1954 IDBI ACT, 2003 IFCI ACT, 1993 NABARD ACT NHB ACT DICGC ACT
? BANKERS? BOOKS OF EVIDENCE ACT, ? BANKERS? SECRECY ACT ? NEGOTIABLE INSTRUMENTS ACT…………..
THE ACTS……….2
1/31/2013 6
MAIN FUNCTIONS OF RBI
•
MAINTENANCE OF PRICE LEVEL
– MONETARY POLIY; LIQUIDITY; CREDIT GROWTH / EXPORT DEMAND; INTEREST RATES; INFLATION…
•
REGULATOR AND SUPERVISOR OF FINL? SYSTEM
– INSPECTION PUBLIC OF BANKS;EFFECTIVE SERVICE TO
• •
MANAGER OF FOREIGN EXCHANGE
– FEX RESERVES; EXPORTS; INVESTMENT; RATES……….
ISSUANCE AND REPLACEMENT OF CURRENCY
– RBI – ORGANISATIONAL STRUCTURE – FORECASTING DEMAND FOR NOTES AND COINS; NOTE REFUND RULES; CLEAN NOTES IN CIRCULATION
1/31/2013 7
VARIOUS DEPTS / FUNCTIONS
URBAN BANKS DEPT 2. RPCD 3. FEX DEPT 4. FINANCIAL SUPERVISION 5. DEPT OF BANKING SUPERVISION 6. DNBS 7. DBOD 8. DEPT OF IT 9. LEGAL DEPT 10. MONETARY POLICY DEPT
1.
1/31/2013 8
DEPTS…2
11. INTERNAL DEBT MANAGEMENT DEPT… 12. DEPT OF EXTERNAL INVESTMENTS & OPERATIONS 13. DEPT OF GOVERNMENT AND BANK ACCOUNTS 14. DEPT OF ECONOMIC ANALYSIS AND POLICY 15. DEPT OF STATISTICAL ANALYSIS AND COMPUTER SERVICES 16. DEPT OF PAYMENT AND SETTLEMENT SYSTEMS
1/31/2013 9
a.
PRINCIPAL
1. ACCEPTING DEPOSITS
1) DEMAND (SAVINGS AND CURRENT ACCOUNTS) 2) TIME (RECURRING AND FIXED DEPOSITS)
2. GRANTING ADVANCES
1) SHORT AND LONG TERM LOANS
3. INVESTMENTS
1) SLR AND OTHERS
b.
ANCILLIARY
Commercial Banking Functions
2/15/2009 10
•
ANCILLIARY FUNCTIONS
1. DISCOUNTING OF BILLS AND CHEQUES 2. COLLECTION OF BILLS AND CHEQUES 3. REMITTANCES – DOMESTIC AND INTERNATIONAL 4. SAFE CUSTODY OF ARTICLES 5. SAFE DEPOSIT LOCKERS 6. ISSUE OF LETTERS OF CREDIT 7. ISSUE OF GUARANTEES 8. DEMAT ACCOUNTS AND 9. OTHER SERVICES LIKE BILL PAYMENTS, ETC…
BANKING FUNCTIONS
2/15/2009 11
•
FUND BASED
1. TERM LOANS 2. WORKING CAPITAL (SHORT TERM LOANS)
a) b) c) d) CASH CREDIT (HYPOTHECATION, PLEDGE) OVERDRAFTS (CLEAN AND SECURED) BILL FINANCE (CLEAN, DOCUMENTARY) EXPORT FINANCE (PRE-SHIPMENT & POSTSHIPMENT)
•
NON-FUND BASED (OR FEE-BASED)
1. ISSUE OF LETTERS OF CREDIT AND GUARANTEES BANKING FACILITIES (LOANS 2. DEFERRED PAYMENT GUARANTEES AND ETC)ACCEPTANCES
2/15/2009 12
1.
1. SAVINGS AND CURRENT AOUNTS………DEPOSITS 2. WORKING CAPITAL, BILLS DISCOUNTED, OVERDRAFTS AND OTHER SHORT TERM LOANS
2.
DEMAND (SHORT TERM) LIABILITIES:
1. FIXED AND RECURRING DEPOSITS 2. TERM LOANS (FOR OVER ONE YEAR)
TIME (MEDIUM & LONG TERM) LIABILITIES:
DIFFERENT TYPES OF ACCOUNTS…1
2/15/2009 13
• •
INDIVIDUAL OR INSTITUTIONAL (PARTNERSHIP FIRM, TRUST, PVT LTD OR PUBLIC LTD COMPANY, ETC………………..)
•
•
DOMESTIC OR NON-RESIDENT ACCOUNTS
SINGLE OR JOINT (EITHER OR SURVIVOR, BOTH OR SURVIVOR, FORMER OR DIFFERENT TYPES SURVIVOR, ALL OR SURVIVOR, LATER OR OF SURVIVOR OR SURVIVORS…) ACCOUNTS…2
2/15/2009 14
o o o o o o o o
HUF Married women Pardanashin lady Illiterate persons Blind persons Insolvent persons Intoxicated persons Executors and Administrators
Chapter 4 : IYENGAR Different Types of Accounts
2/15/2009
Liquidator, Receiver / Assignee o Trusts o Societies / Clubs o Minors o Agent / Attorney o Joint Accounts o Partnership Firms o Joint Stock Companies VIJAYARAGAVAN
o
15
•
•
•
• •
ANCESTRAL / COMMON OWNERSHIP HINDUS, SIKHS & JAINS CAN FORM HUFs MALE MEMBERS BY BIRTH OR ADOPTION ARE COPARCENERS SENIOR MOST IS KARTA NOT GOVERNED BY PARTNERSHIP ACT
DOCUMENTS TO BE SIGNED BY KARTA… • KARTA IS LIABLE PERSONALLY AS ALSO AS KARTA, BUT COPARCENERS ARE NOT… • KARTA CAN NOT REVIVE TIMEBARRED DEBT • COPARENER CANNOT COUNTERMAND A CHEQUE
•
1. HINDU UNDIVIDED FAMILY
2/15/2009 16
•
•
•
DEATH OF A COPARCENER DOES NOT DISSOLVE A HUF – BALANCE TO BE PAID AS A CLAIM CASE… IN CASE OF DEATH, INSOLVENCY OR INSANITY OF A COPARCENER/KARTA, FRESH HUF DELARATION SHOULD BE TAKEN KARTA CAN
– COMPROMISE AND REFER TO ARBITRATION – GIVE VALID DISCHARGE TO DEBT AND MAKE PART PAYMENT – ENTER INTO PARTNERSHIP AND DELEGATE AUTHORITY TO OPERATE THE ACCOUNT TO ANY ONE.
HINDU UNDIVIDED FAMILY…2
2/15/2009 17
• •
• • •
A SEPARATE LEGAL ENTITY SEC 14 OF HINDU SUCCESSION ACT PROVIDES THAT PROPERTY OF A HINDU FEMALE IS HER ABSOLUTE PROPERTY CAN RAISE LOANS AGAINST HER OWN PROPERTY SOLVENCY NOT RELATED TO HER HUSBAND HUSBAND LIABLE FOR HER DEBTS IF: CAN BE AN EXECUTOR OR ADMINISTRATOR 2. MARRIED WOMEN WITHOUT ANY HELP OR GUIDANCE
2/15/2009 18
– HAS CONSENTED AND STANDS SURETY – LOAN IS AVAILED FOR NECESSICTIES OF HER LIFE
•
CONTRACT WITH HER IS NOT FREE FROM DEFECTS ? PRESUMPTION OF UNDUE INFLUENCE ? GENERALLY DISCOURAGE ACCOUNTS IN HER NAME AS HER IDENTITY CAN NOT BE ASCERTAINED ? ABSOLUTE CARE TO BE TAKEN WHILE DEALING WITH HER
?
3. PARDANASHIN LADY
2/15/2009 19
• • • •
•
•
GET INTRODUTION AND WITNESS PHOTOGRAPH TO BE CHANGED EVERY 3 YEARS TAKE IDENTIFICATION MARKS PAYMENT ONLY IN PERSON THROUGH CASHIER ONLY IN CASE OF ANY DISPUTE OR EXPLANATION OF RULES, TAKE INDEPENDENT WITNESS NOTING „ILLITERATE A/C„ TO BE MADE ON THE LEDGER FOLIO AND ACCOUNT OPENING FORM
4. ILLITERATE PERSONS
2/15/2009 20
• • • •
•
• •
GET INTRODUCTION AND WITNESS PHOTOGRAPH TO BE CHANGED EVERY 3 YEARS TAKE IDENTIFICATION MARKS PAYMENT / RECEIPTS TO BE GOT WITNESSED BY AN INDEPENDENT PERSON IN CASE OF ANY DISPUTE OR EXPLANATION OF RULES, TAKE INDEPENDENT WITNESS NOTING “BLIND PERSON” TO BE MADE ON LEDGER FOLIO / ACCOUNT OPENING FORM ADVISED TO OPEN JOINT ACCOUNT
5. BLIND PERSONS
2/15/2009 21
ALL TRANSACTIONS MADE SUBSEQUENT OR DURING LAST SIX MONTHS ARE INVALID • CANNOT OBTAIN CREDIT FOR MORE THAN Rs 50 • MINORS / LUNATICS CANNOT BE DECLARED INSOLVENT • SHOULD BE STOPPED AND BALANCE DISPOSED OFF AS PER INSTRUCTIONS OF OFFICIAL RECEIVER •6. INSOLVENT PERSONS CAN ACT AS AN AGENT UNDER INDIAN CONTRACT ACT – SECTION 201
•
2/15/2009 22
INCAPABLE OF ENTERING INTO CONTRACT ? ON NOTICE, TO BE STOPPED AND BALANCE DISPOSED OFF AS PER COURT DIRECTIONS ? IF TEMPORARY DISORDER, PAYMENTS TO BE MADE AFTER OBTAINING CERTIFICATE FROM TWO APPROVED DOCTORS WHO CERTIFY ABOUT MENTAL SOUNDNESS AT THE TIME OF PAYMENT
?
7. INSANE PERSON
2/15/2009 23
CONTRACTS MADE ARE INVALID ? PAYMENTS MADE TO AN INTOXICATED PERSON TO BE ONLY AFTER TAKING TWO INDEPENDENT WITNESSES REGARDING CONDITION OF THE PERSON
?
8. INTOXICATED PERSON
2/15/2009 24
•
•
• • •
PERSON NAMED IN THE WILL OF THE DECEASED PERSON IS THE EXECUTOR; ACCOUNT CAN BE OPENED ON PRODUCTION OF PROBATE PERSON APPOINTED BY COURT IS CALLED THE ADMINISTRATOR AND MUST PRODUCE LETTER OF ADMINISTRATION PAYMENT CAN BE STOPPED BY ANY ONE….. UPON DEATH OF ONE EXECUTOR, POWERS VESTED IN THE SURVIVING EXECUTOR…. CAN BORROW FOR THE IMMEDIATE NEEDS OF PROPERTY…………..
9. EXECUTORS AND ADMINISTRATORS
2/15/2009 25
• • • •
•
APPOINTED IN CASE OF A COMPANY (IN LIQUIDATION) RECEIVER / ASSIGNEE TO MANAGE THE PROPERTY OF AN INSOLVENT PERSON LETTER OF PROBATE / ADMINISTRATION NEEDED STYLE AND STATUS TO BE MENTIONED IN THE TITLE OF THE ACCOUNT NO LOAN CAN BE GRANTED…
10. LIQUIDATOR, RECEIVER / ASSIGNEE
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11. TRUSTS
• • • •
• •
•
TRUST DEED TO BE EXAMINED INSOLVENCY OF TRUSTEE DOES NOT AFFECT TRUST PROPERTY TRANSFER OF FUNDS FROM TRUST TO PERSONAL ACCOUNT OF TRUSTEE TO BE INVESTIGATED… ALLOW LOANS ONLY IF PERMITTED IN THE TRUST DEED AND AFTER TAKING PERSONAL GUARANTEE OF THE TRUSTEE TRUSTEES MUST ACT JOINTLY… NO DELEGATION… ON DEATH OF ONE TRUSTEE, TRUST PROPERTY PASSES TO OTHER TRUSTEES; COURT ORDER NEEDED ANY TRUSTEE CAN STOP PAYMENT…
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12. SOCIETIES AND CLUBS
• • • •
•
OBTAIN BY-LAWS AND READ THEM CAREFULLY VERIFY REGISTRATION CERTIFICATE… RESOLUTION TO BE PASSED REG ACCOUNT…. IN CASE OF DEATH OF AN AUTHORISED SIGNATORY, OPERATION STOPPED TILL NEW RESOLUTION… BANK CAN OPEN ACCOUNTS FOR AN UNREGISTERED CLUB, INSTITUTION, SOCIETY, ASSOCIATION, SCHOOL, ETC., AFTER SATISFYING ABOUT REPUTATION, RESPONSIBILITY AND STANDING OF OFFICE BEARERS
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13. MINORS
• • • • •
•
ANY CONTRACT WITH MINOR IS VOID AB INITIO A/C CAN BE OPENED UNDER GUARDIANSHIP NO LOAN ALLOWED EVEN AGAINST SECURITY UNDER NI ACT, CAN BIND ALL OTHERS EXCEPT SELF… CAN BE ADMITTED ONLY FOR BENEFITS OF A PARTNERSHIP. UPON BECOMING MAJOR (ATTAINING AGE OF 18 YEARS OR 21 YEARS IF COURT HAD APPOINTED A GUARDIAN), HAS OPTION TO REPUDIATE LIABILITY WITHIN SIX MONTHS… CAN BE APPOINTED AS AN AGENT BUT SHALL NOT BE PERSONALLY RESPONSIBLE TO HIS PRINCIPAL WHO SHALL BE RESPONSIBLE FOR THE ACTS OF MINOR AGENT
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14. AGENT / ATTORNEY
?
TERMINATION UPON
? ? ? ? DEATH / INSOLVENCY / INSANITY OF PRINCIPAL IF PRINCIPAL REVOKES AGENT?S AUTHORITY IF AGENT RENOUNCES THE AGENCY IF BUSINESS OF AGENCY IS COMPLETED
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30
15. JOINT ACCOUNTS
?
?
?
? ?
APPOINTMENT OF AGENT SHOULD BE CONFIRMED BY ALL…………. OPERATIONS TO BE STOPPED IN CASE OF DEATH, INSOLVENCY, INSANITY OF ANY ONE. PAYMENT TO BE MADE TO SURVIVORS / LEGAL HEIRS OF THE DECEASED… ANY ONE CAN STOP PAYMENT…………………… ALTERATION IN A CHEQUE SHOULD BE CONFIRMED BY DRAWER ONLY…. NOT OTHERS…
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16. PARTNERSHIP FIRMS
•
•
•
• •
MAX NO. OF PARTNERS : 20; IN CASE OF BANKING BUSINESS FIRM : 10 REGISTRATION NOT MANDATORY; BUT ONLY REGISTERED FIRMS CAN FILE SUITS TO ENFORCE A CONTRACT MINOR CAN BE ADMITTED ONLY TO BENEFITS A PARTNER AN BIND THE FIRM BY DOING USUAL BUSINESS ON BEHALF OF THE FIRM A PARTNERSHIP IS NOT TREATED AS A SEPARATE ENTITY FROM THE PARTNERS….
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PARTNERSHIPS…2
•
•
DEATH OF A PARTNER / ADMISSION OF A PARTNER…DISSOLVES THE PARTNERSHIP FIRM IMPLIED AUTHORITY OF PARTNER DOES NOT OVER:
1. SUBMISSION OF A DISPUTE TO ARBITRATION 2. OPEN AOUNT IN HIS NAME FOR FIRM?S BUSINESS 3. ……………….. 4. ……………….. 5. ……………….. 6. ……………….. 7. ………………..
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17. JOINT STOCK COMPANIES
?
PRIVATE LIMITED COMPANIES
? MIN 2 AND MAX 50 SHAREHOLDERS ? MIN 2 AND MAX 7 DIRECTORS ? NAME MUST END WITH “PRIVATE LIMITED”
?
PUBLIC LIMITED COMPANIES
? MIN 7 AND MAX (NO LIMIT) SHAREHOLDERS ? MIN 3 AND MAX (NO LIMIT) DIRECTORS ? NAME MUST END WITH “LIMITED”
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COMPANIES…2
•
GOVERNMENT COMPANIES
– 51% OR MORE SHARE HELD BY GOVT
DOCUMENTS REQUIRED – MOA, AOA, CERTIFICATE OF INCORPORATION AND CERTIFIATE OF COMMENCEMENT (PUBLIC LTD ONLY) THIRD PARTY CHEQUES ISSUED BY COMPANY NOT TO BE COLLETED / CREDITED TO PERSONAL ACCOUNTS OF DIRECTORS INSOLVENCY / DEATH / INSANITY OF A DIRECTOR DOES NOT AFFECT THE FUNCTIONING OF A COMPANY….
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doc_527957055.ppt