Which of the following is incorrect in relation to issuance of Bank Guarantee?
Banks may issue guarantees favoring other banks/ FIs/ other lending agencies for the loans extended by the latter, subject to strict compliance with the following conditions. (i) The Board of Directors should reckon the integrity/ robustness of the bank’s risk management systems and, accordingly, put in place a well-laid out policy in this regard. The Board approved policy should, among others, address the following issues: Prudential limits, linked to bank’s Tier I capital, up to which guarantees favouring other banks/FIs/other lending agencies may be issued Nature and extent of security and margins Delegation of powers Reporting system Periodical reviews (ii) The guarantee shall be extended only in respect of borrower constituents and to enable them to avail of additional credit facility from other banks/FIs/lending agencies. (iii) The guaranteeing bank should assume a funded exposure of at least 10% of the exposure guaranteed. (iv) Banks should not extend guarantees or letters of comfort in favour of overseas lenders including those assignable to overseas lenders. However, AD banks may also be guided by the provisions contained in Notification No. FEMA 8/2000-RB dated May 3, 2000 and subsequent amendments thereof. (v) The guarantee issued by the bank will be an exposure on the borrowing entity on whose behalf the guarantee has been issued and will attract appropriate risk weight, as per the extant guidelines. (vi) Of late, certain banks have been issuing guarantees on behalf of corporate entities in respect of non-convertible debentures issued by such entities. It is clarified that the extant instructions apply only to loans and not to bonds or debt instruments. Guarantees by the banking system for a corporate bond or any debt instrument not only have significant systemic implications but also impede the development of a genuine corporate debt market. Banks are advised to strictly comply with the extant regulations and in particular, not to provide guarantees for issuance of bonds or debt instruments of any kind. However, banks are permitted to provide partial credit enhancement (PCE) to bonds issued by corporates /special purpose vehicles (SPVs), NBFC-ND-SIs and Housing Finance Companies (HFCs)
Which of the following section provides for Establishment of Central Consumer Protection Authority.
The terms "Pledge", "Pawnor" and "Pawnee" has been defined under which section of the Contract Act?
The Rent controller shall be not below the rank of:
Any person who has entered into an agreement with any depository for availing its services shall surrender ………..
Indian Evidence Act, 1872 was enforced on :
An application for initiating pre-packaged insolvency resolution process under the IBC, 2016 _____________________
Interim measures can be ordered by Court as per which section of Arbitration and Conciliation Act, 1996?
Under the Aircraft Act, what authority does the Central Government have in making rules for the prevention of danger to public health related to aircra...
Any grievance of persons relating to their service matters shall be put up before____ under ____.
According to Section 36(4) of the Code on Wages, 2019, what is the purpose of carrying forward excess allocable surplus or minimum bonus to the succeed...