What is Section 42 of the RBI Act?
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Section 42 of the Reserve Bank of India (RBI) Act, 1934, is a pivotal provision that mandates all Scheduled Commercial Banks (SCBs) to maintain a specific amount of cash reserves with the RBI. This requirement is commonly known as the Cash Reserve Ratio (CRR).
What is Section 42 of the Reserve Bank of India Act?
In terms of Section 42 (1) of the Reserve Bank of India Act, 1934 the Reserve Bank having regard to the needs of securing the monetary stability in the country, prescribes the CRR for Scheduled Commercial Banks (SCBs) without any floor or ceiling rate.
What is Section 42 of the Negotiable Instrument Act?
An acceptor of a bill of exchange drawn in a fictitious name and payable to the drawer's order is not, by reason that such name is fictitious, relieved from liability to any holder in due course claiming under an indorsement by the same hand as the drawer's signature, and purporting to be made by the drawer.
What does CRR stand for as per section 42 of the Reserve Bank of India Act 1934?
The Cash Reserve Ratio (CRR) is a key monetary policy tool used by the Reserve Bank of India (RBI) to regulate liquidity and ensure financial stability. It refers to the portion of a bank's total deposits that must be maintained as cash with the RBI, without earning any interest.
What is Section 42 of the Companies Act 2013?
-- "private placement" means any offer or invitation to subscribe or issue of securities to a select group of persons by a company (other than by way of public offer) through private placement offer-cum-application, which satisfies the conditions specified in this section.
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What is the purpose of Section 42?
A section 42 enquiry relates to the duty of the Local Authority to make enquiries, or have others do so, if an adult may be at risk of abuse or neglect. This happens whether or not the authority is providing any care and support services to that adult.
What is a section 42 transaction?
So, what does s 42 actually require? The definition of 'asset-for-share transaction' 'means any transaction … in terms of which a person disposes of an asset … in exchange for the issue of an equity share …'. The definition, if taken literally, requires a single share to be issued for each asset.
Which banks are exempted from CRR?
Cash Reserve Ratio (CRR) is the amount of funds that all Scheduled Commercial Banks (SCB) excluding Regional Rural Banks (RRB) are required to maintain without any floor or ceiling rate with RBI with reference to their total net Demand and Time Liabilities (DTL) to ensure the liquidity and solvency of Banks (Section 42 ...
What is rule 7 of the RBI?
It is a provision under which the government can give directions to the RBI to take certain actions in the public interest. This provision has been built into the law governing not just the RBI but also regulatory bodies in other sectors.
What is a good SLR ratio?
The snow-to-liquid ratio (SLR) is the amount of snow produced by a given amount of liquid water. It's typically expressed as the number of inches of snow per inch of water, with the commonly cited ratio being 10:1 (10 inches of snow for every inch of water).
What is certificate under section 42 of the Indian Stamp Act?
Section 42 requires that civil courts shall certify by endorsement on every instrument admitted in evidence under section 35 of that the proper duty and penalty have been levied in respect thereof, and shall also state the name and residence of the person paying them.
What is Section 42 of the Indian Evidence Act?
Description. Judgments, orders or decrees other than those mentioned in section 41, are relevant if they relate to matters of a public nature relevant to the enquiry, but such judgments, orders or decrees are not conclusive proof of that which they state.
What is Section 42 of the Indian Contract Act 1872?
When two or more persons have made a joint promise, then, unless a contrary intention appears by the contract, all such persons, during their joint lives, and, after the death of any of them, his representative jointly with the survivor or survivors, and, after the death of the last survivor, the representatives of all ...
Does RBI pay interest on CRR?
CRR is the percentage of total deposits banks must keep with RBI in cash. RBI does not pay any interest on CRR balances held by banks. Higher CRR reduces the funds available for banks to lend, causing interest rates to rise. Statutory Liquidity Ratio (SLR) differs as banks earn interest on SLR investments.
What is the minimum holding of government in Nationalised banks?
Ans. In India, the government minimum shareholding is 25% for public sector banks on the verge of privatization.
What are the powers of the RBI?
Key Powers of RBI
Regulating banking licenses and operations. Setting interest rates like repo rate and reverse repo rate. Controlling inflation and money supply. Managing foreign exchange and forex reserves.
What are the new rules of RBI in 2025?
*RBI's New Bank Rules Effective from 20 November 2025* According to the Reserve Bank of India, the new rules are designed in line with global banking standards and to enhance customer service. The main changes include: * Three types of bank accounts will be closed: Dormant, Inactive, and Zero Balance Accounts.
What are the 7 P's of banking?
Xaviers' College Service Marketing. This document discusses the 7 Ps of banking services - Product, Price, Place, Promotion, People, Physical Evidence, and Process.
What is the new RBI rule?
RBI New Bank Rules Effective from 20 December 2025
The major changes include: Three types of bank accounts may be closed: Dormant, Inactive, and Zero Balance accounts. Up to four nominees allowed per account (earlier, only one nominee was permitted) Dual nomination system: Simultaneous and Successive nomination.
What are category 4 banks?
Category IV, others banks with $100bn to $250bn total assets; Other, $50bn to $100bn total assets.
What is the 60/40 rule of RBI?
Risk weights for undrawn portion of cash credit limits
The guidelines will be effective from April 1, 2019 covering both existing as well as new relationships. The 40 percent loan component will be revised to 60 percent, with effect from July 1, 2019.
Why is SLR 18%?
Put simply, if a bank has ₹100 in deposits, and the SLR is 18%, the bank must maintain ₹18 in liquid assets—not loan out that portion, this rule plays a crucial role in maintaining liquidity, mitigating inflation, and ensuring that banks have sufficient resources to meet withdrawal demands.
What is the section 42 act?
Under Section 42 of the Care Act, local authorities must make enquiries, or cause others to do so, if they reasonably suspect an adult who meets the criteria is, or is at risk of, being abused or neglected.
What is the meaning of section 42?
Residency. The Section 42 housing program refers to that section of the Internal Revenue Tax Code which provides tax credits to investors who build affordable housing. Investors receive a reduction in their tax liability in return for providing affordable housing to people with fixed or lower income.
What is the deduction under section 42?
Section 42 of the Income Tax Act provides special deductions to businesses involved in the exploration, extraction, or production of mineral oil, including petroleum and natural gas.