A uniform margin of 50% has been stipulated for all advances against shares/ issue of guarantees. Within this 50 percent margin, a minimum cash margin of 25 percent should be maintained in respect of guarantees issued by banks for capital market operation.

No. The holdings in demat account with NSDL/CDSL are separate from the holdings in RDG account. One can maintain both the accounts at the same time.

Twenty five (25) paise coins have been withdrawn from circulation with effect from June 30, 2011 and are, therefore, no more legal tender. Coins of denominations below 25 paise were withdrawn from circulation much earlier. All other denominations of coins of various size, theme and design minted by Government of India under The Coinage Act, 2011 and issued by RBI for circulation from time to time, continue to remain legal tender.

The concept of `past due’ is applicable to the income from loan and other credit facilities viz. receivables, other dues, etc. However, the lease rentals and hire purchase installments have been allowed to accrue upto 12 months and the concept of `past due’ is not applicable in respect of these assets.

Deposits are defined under the RBI Act 1934 as acceptance of money other than that raised by way of share capital, money received from banks and other financial institutions, money received as security deposit, earnest money and advance against goods or services and subscriptions to chits. All other amounts, received as loan or in any form are treated as deposits. Chit Funds activity involves contributions by members in instalments by way of subscription to the Chit and by rotation each member of the Chit receives the chit amount. The subscriptions are specifically excluded from the definition of deposits and cannot be termed as deposits. While Chit funds may collect subscriptions as above, they are prohibited by RBI from accepting deposits with effect from August 2009.E. Depositor Protection Issues

Yes. The profit making banks may make donations during a financial year, aggregating upto one percent of the published profit of the bank for the previous year. However, the contributions/ subscriptions made by banks to Prime Minister’s Relief Fund and to professional bodies/ institutions like Indian Banks’ Association, National Institute of Bank Management, Indian Institute of Bankers, Institute of Banking Personnel Selection, Foreign Exchange Dealers Association of India, during a year will be exempted from the above ceiling. Unutilized amount of the permissible limit of a year should not be carried forward for the next year for the purpose of making donations.

Yes, you can by raising a request on the online portal and the same would be authorized as per RBI’s Value Free Transfer (VFT) guidelines.

RBI has not prescribed any limit for coin deposits by customers with banks. Banks are free to accept any amount of coins from their customers.

1. Each category of quoted investments is to be valued scrip-wise. Category of investment means the different types of securities under each head viz. equity shares, preference shares, debentures, bonds and Government securities. Only quoted investments can be classified as long term or current investments. The long term investments are allowed to be valued as per AS-13 of the ICAI but the current investments are required to be valued at their market price. However, the NBFCs have been permitted under Prudential Norm Directions, the facility of block valuation method for accounting for the investments. The net of depreciation and the appreciation in the value of the current quoted investments, is only required to be charged to the Profit and Loss Account of the current year. The appreciation in the value of current investments in any category cannot be booked as profit. The concept of block valuation is explained below :

Example No. 1

	Name of the scrip	Market value	Book value	Difference (+)/(-)
	A	200	150	(+) 50
	B	210	180	(+) 30
	C	180	240	(-) 60
	D	240	300	(-) 60

Total appreciation Rs. 80/-

Total depreciation Rs. 120/-

Net depreciation Rs. 40/- to be charged to Profit and Loss
	Account as per provisions for Depreciation in investments.

Example No. 2

	Name of the scrip	Market value	Book value	Difference (+)/(-)
	A	150	200	(-) 50
	B	180	210	(-) 30
	C	240	180	(+) 60
	D	300	240	(+) 60

Total appreciation Rs. 120/-

Total depreciation Rs. 80/-

Net appreciation Rs. 40/- to be ignored.

This appreciation in the value of equity shares cannot be adjusted against the depreciation in the value of any other category of securities.

Some of the important regulations relating to acceptance of deposits by NBFCs are as under:

1. The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.

2. NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests.

3. NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.

4. NBFCs should have minimum investment grade credit rating.

5. The deposits with NBFCs are not insured.

6. The repayment of deposits by NBFCs is not guaranteed by RBI.

7. Certain mandatory disclosures are to be made about the company in the Application Form issued by the company soliciting deposits.