Tuesday 7 March 2017

Types of Bank Accounts - Indian Banking System.



Reserve Bank of  India


CURRENT ACCOUNT:

·         Current accounts are usually for businessmen and daily transactions.
·         It doesn’t serve a purpose of saving  your investments. The transaction facility to this account is so flexible that you can make innumerable transactions in a day.
·        The banks don’t pay any interest on your  amount but it charges certain service charges on such accounts.


SAVINGS ACCOUNT:

·         Savings Accounts are the most popular kind of individual accounts for personal purpose of saving your investments and getting interest rates.
·         Savings account provides cheque facility along with flexibility for deposit and withdrawal of f unds from your account.
·         At present Interest rate is  4% .


FIXED DEPOSIT:

·         Fixed Deposits popularly known as FD are available at various schemes with a tenure from 7 days to 10 years.
·         This account is specially designed who want to deposit their savings for a long term to gain good rate of interest.
·         The interest rate on these accounts varies from bank to bank.
·         Generally ,   interest rate is between 7 % p.a.  to 9 % p.a.


RECURRING DEPOSIT:

·         Recurring deposits also known as RD accounts who wish to invest an average amount of their savings on a monthly basis.
·         These accounts gain interest on the amount available in your account.


Repo Rate and Reverse Repo rates in Indian Banking







Repo Rate :-
  • The rate at which banks borrow money from the RBI by selling their surplus government securities to RBI is known as "Repo Rate.
  • Repo Rate is the rate at which RBI lends money to commercial banks against the pledge of government securities whenever the banks are in need of funds to meet their day-to-day obligations.
  • Banks enter into an agreement with the RBI to repurchase the same pledged government securities at a future date at a pre-determined price. RBI manages this repo rate which is the cost of credit for the bank.
  • If the repo rate is low then banks can charge lower interest rates on the loans taken by us. 

Reverse Repo Rate :-
  • Reverse repo rate is the rate of interest offered by RBI, when banks deposit their surplus funds with the RBI for short periods.
  • When banks have surplus funds but have no lending (or) investment options, they deposit such funds with RBI. Banks earn interest on such funds.


  1. Present   Repo Rate :- 6.25 %
  2. Present  Reverse Repo Rate :- 5.75 %




CRR and SLR in Indian Banking

CRR
CRR means Cash Reserve Ratio  which  is the  percentage  of minimum amount of cash,  the banks have to keep in Current Account of Reserve Bank of India.

CRR at Present :-  4%

SLR
SLR  means  Statutory Liquidity Ratio which  is the  percentage of minimum  cash the banks have to invest  government securities or bonds that are  specified by RBI from time to time.

SLR  at Present :  20.5%


Both SLR and  CRR are  quantitative credit controls  used by RBI.

Sunday 5 March 2017

Section -144 of Companies Act - Cetain services not to be rendered by Auditor.

An auditor appointed under Comanies  Act , 2013  shall provide to the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, but which shall not include any of the following services (whether such services are
rendered directly or indirectly to the company or its holding company or subsidiary company,
namely:—

(a) accounting and book keeping services;

(b) internal audit;

(c) design and implementation of any financial information system;

(d) actuarial services;

(e) investment advisory services;

(f) investment banking services;

(g) rendering of outsourced financial services;

(h) management services; and

(i) any other kind of services as may be prescribed.

Rights of Unpaid Seller

Rights of Unpaid Seller :-   
Ø  Rights of unpaid seller against the goods, and
Ø  Rights of unpaid seller against the buyer personally.
  •  Rights of Unpaid Seller against the Goods.

An unpaid seller has the following rights against the goods notwithstanding the fact that the property in the goods has passed to the buyer:
  •   Right of lien
  •   Right of stoppage of goods in transit
  •   Right of resale.

1. Right of lien.
‘Lien’ is the right to retain possession of goods and refuse to deliver them to the buyer until the price due in respect of them is paid or tendered. An unpaid seller in possession of goods sold is entitled to exercise his lien on the goods in the following cases:
(a)   Where the goods have been sold without any stipulation as to credit;
(b)   Where the goods have been sold on credit, but the term of credit has expired:
(c)     Where the buyer becomes insolvent, even though the period of credit may not have yet expired.

In the case of buyer’s insolvency the lien exists even though goods had been sold on credit and the period of credit has not yet expired. When he goods are sold on credit the presumption is that the buyer shall keep his credit good. If, therefore, before payment the buyer becomes insolvent, the seller is entitled to exercise this right and hold the goods as security for the price.

The unpaid seller’s lien is a possessory lien, i.e., the lien can be exercised as long as the seller remains in possession of the goods. He may exercise his right of lien notwithstanding that he is in possession of the goods as agent or bailee for the buyer

Transfer of property in the goods or transfer of documents of title to the goods does not affect the exercise of this right, provided the goods remain in the actual possession of the seller. In fact when property has passed to the buyer then only retaining of goods is called technically ‘lien.’ Where the property in goods has not passed to the buyer and the title is still with the seller then it is, strictly speaking, anomalous to say that the seller has a lien against his own goods. The seller’s lien when property has not passed to the buyer is termed as ‘a right of withholding delivery.


“Where the property in goods has not passed to the buyer, the unpaid seller has, in addition to his other remedies, a right of withholding delivery similar to and coextensive with his rights of lien and stoppage in transit where the property has passed to the buyer.”

This right of lien can be exercised only for the non-payment of the price and not for any other charges, i.e., maintenance or custody charges, which the seller may have to incur for storing the goods in exercise of his lien for the price. This right of lien extends to the whole of the goods in his possession even though part payment for those goods has already been made. In other words the buyer is not entitled to claim delivery of a portion of the goods on payment of a proportionate price. Further, where an unpaid seller has made part delivery of the goods, he may exercise his right of lien on the remainder, unless such part delivery has been made under such circum­stances as to show an agreement to waive the lien Also, the lien can be exercised even though the seller has obtained a ‘decree’ for the price of the goods.

When lien is lost? As already observed, lien depends on physical possession of goods. Once the possession is lost, the lien is also lost. The unpaid seller of goods loses his lien thereon in the following cases:
(a)  When he delivers the goods to a carrier or other beilee for the purpose of transmission to the buyer without reserving the right of disposal of the goods; or
(b)  When the buyer or his agent lawfully obtains possession of the goods; or
(c)   When the seller expressly or impliedly waives his right of lien. An implied waiver takes place when the seller grants fresh term of credit or allows the buyer to accept a bill of exchange payable at a future date or assents to a sub-sale which the buyer may have made.

2. Right of Stoppage of Goods in Transit:
Meaning of Right of Stoppage of Goods in Transit: The right of stoppage in transit means the right of stopping the goods while they are in transit, to regain possession and to retian them till the full price is paid. Lord Cairns LJ in case of Schotsmans v. Lances and Yorks Rly. Had made the following observation in this regard:

“The essential feature of stoppage in transit is that the goods should be in the possession of a middleman or some other person intervening between the vendor who has parted with and the purchaser who has not received them.”

Conditions under which Right of Stoppage in Transit can be Exercised [Section 50]: The unpaid seller can exercise the right of stoppage in transit only if the following conditions are fulfilled:
(i)   The seller must have parted with the possession of goods, i.e., the goods must not be in the possession of seller.
(ii) The goods must be in the course of transit.
(iii) The buyer must have become insolvent.
Note: The buyer is said to be insolvent when he has ceased to pay his debts in ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not.

Note: The seller’s right of stoppage in transit is based on the principle that one man’s goods shall nto be applied to the payment of other man’s debt.
Duration of Transit :-Goods are deemed to be in course of transit from the time when they are delivered to a carrier or other bailee for the purpose of transmission to the buyer, until the buyer or his agent in that behalf takes delivery of them from such carrier or other bailee.

Note: The carrier must hold the goods in the capacity of an independent person and not in the capacity of an agent for the seller or buyer. If the carrier holds the goods as an agent for the seller, there is no question of exercising the right of stoppage in transit because the seller can exercise his right of lien. If the carrier holds the goods as an agent for the buyer, the seller cannot exercise the right of stoppage in transit because the delivery to the carrier amounts to delivery to buyer..


3. Right of Resale
The right of resale is a very valuable right given to an unpaid seller. In the absence of this right, the unpaid seller’s other rights against the goods, namely, ‘lien’ and ‘stoppage in transit,’ would not have been of much use because these rights only entitle the unpaid seller to retain the goods until paid by the buyer. If the buyer continues to remain in default, then should the seller be expected to retain the goods indefinitely, specially when the goods are perishable? Obviously, this cannot be the intention of the law. The unpaid seller has a limited right to resell the goods in the following cases:

(a)         Where the goods are of a perishable nature; or

(b)   Where such a right is expressly reserved in the contract in case the buyer should make a default;

Link :-

Friday 24 February 2017

List of Railway Headquarters in India.


1
Central Railway    
Mumbai
Bhusawal, Nagpur, Mumbai(CST), Solapur,Pune
2
Eastern Railway
 Kolkata
                Malda, Howarh, Sealdah, Asansol
3
Northern Railway
New Delhi
Ambala, Ferozpur, Lucknow, Moradabad, Delhi
4
North Eastern Railway
Gorakhpur
Lucknow, Varanasi, Izatnagar
5
Northeast Frontier Railway
Guwahati
Katihar, Lumding,Tinsukhia, Alipurduar, Rangiya
6
Southern Railway
Chennai
Chennai, Madurai, Palghat,Trichy, Trivandrum
7
South Central Railway
Secunderabad
Secunderabad, Hyderabad, Guntakal, Vijaywada, Guntur, Nanded
8
South Eastern Railway
Kolkata
Kharagpur, Chakradharpur, Adra, Ranchi
9
Western Railway
Mumbai
Bhavnagar, Mumbai Central, Ratlam, Rajkot, Vadodara, Ahemdabad
10
East Central Railway
Hajipur
Danapur, Dhanbad,Sonepur, Mughalsarai, Samastipur
11
East Coast Railway
Bhubaneswar
Khurda Road, Waltair, Sambalpur
12
North Central Railway
Allahabad
Allahabad, Jhansi, Agra
13
North Western Railway
Jaipur
Bikaner, Jodhpur, Jaipur, Ajmer
14
South East Central Railway
Bilaspur
Nagpur, Bilaspur, Raipur
15
South Western Railway
Hubli
Bangalore, Mysore, Hubli
16
West Central Railway
Jabalpur
Jabalpur, Bhopal, Kot