part 2 Flashcards
Central Board must hold meetings at least_____________________
six times a year and at least once in each quarter.
_____________ Directors can request the Governor to call a meeting of the Central Board at any time.
four
The Bank can accept deposits without interest from
Central Government, State Governments, local authorities, banks, and other persons.
Bank can accept deposits with interest from banks and other persons under
the Standing Deposit Facility Scheme, which is approved by the Central Board. This scheme is likely used for liquidity management purposes.
bills of exchange and promissory notes must arise from genuine commercial or trade transactions.- Maturity Period and Signature Requirement:
For transactions related to the export of goods from India, the maturity period is within 180 days from the date of purchase or rediscount (excluding days of grace).
For other transactions, the maturity period is within 90 days from the date of purchase or rediscount (excluding days of grace).
A scheduled bank, or
A State co-operative bank, or
A financial institution that primarily deals in the acceptance or discounting of such instruments and is approved by the Bank (likely the Reserve Bank of India).
bills of exchange and promissory notes must be drawn or issued for financing production or marketing activities of cottage and small-scale industries that have been approved by the Bank.- Maturity Period and Signature Requirement:
The bills or notes must mature within twelve months from the date of purchase or rediscount, excluding days of grace.
The payment of the principal and interest of these instruments must be fully guaranteed by the State Government.
A State Co-operative Bank, or
A State Financial Corporation, or
Any financial institution primarily engaged in the acceptance or discounting of such instruments and approved by the Bank (likely the Reserve Bank of India).
bills of exchange and promissory notes must be issued or drawn for financing agricultural operations or the marketing of crops.-Maturity Period and Signature Requirement:
The instruments must mature within fifteen months from the date of purchase or rediscount (not including the days of grace).
A scheduled bank, or
A State co-operative bank, or
Any financial institution predominantly engaged in accepting or discounting such instruments, which is approved by the Bank (likely the Reserve Bank of India).
bills of exchange and promissory notes must be issued or drawn for the purpose of holding or trading in securities of:
The Central Government, or
A State Government.– Maturity Period and Signature Requirement:
The bills or notes must mature within ninety days from the date of purchase or rediscount, excluding days of grace.
signature of a scheduled bank.
bills of exchange (including treasury bills) that are drawn in or on any place in a country outside India which is a member of the International Monetary Fund (IMF).
maturity :
Transaction Participants:
For bills arising from bona fide export transactions of goods from India, the maturity period is within 180 days from the date of purchase or rediscount.
For other transactions, the maturity period is within 90 days from the date of purchase or rediscount.
These transactions (purchase, sale, or rediscount) can only be conducted in India with a scheduled bank or a State co-operative bank.
loans and advances made to scheduled banks or State co-operative banks against their own promissory notes.
These loans are either repayable on _________________
on demand or at the end of fixed periods not exceeding 180 days.
loans and advances can be made to scheduled banks or State co-operative banks against their own promissory notes. The borrowing bank must provide a written declaration confirming that the loans and advances are intended for: ________________
Bona fide commercial or trade transactions.
Financing agricultural operations.
Marketing of crops.
Other agricultural purposes as specified in the declaration.
This provision allows for loans and advances to local authorities, scheduled banks, State co-operative banks, and State Financial Corporations, secured by various forms of collateral, such as stocks, gold, and promissory notes. The loans are generally repayable within _____________, but loans against export-related instruments can have a maturity of up to_______________________ . This structure ensures that loans support legitimate commercial and agricultural activities.
ninety days
one hundred and eighty days
