Exchange Earners Foreign Currency (EEFC) account is foreign currency-denominated account maintainet with banks dealing wuth foreign exchanges. The Reserve Bank of India introduced this scheme in 1992 to enable exporters and professionals to retain their foreign exchange receipts in banks without converting it into the local currency. Any person residing in India who receives inward remitances in foreign currency or a company with foreign currency earning can open EEFC account but they dont't earn any interest from the deposits and it is a non-interest bearing scheme.
In 2006, the Reserve Bank of India allowed banks to use non-bank intermediaries as business cprrespondents, or business facilitators, to extend banking and other financial services to areas where the banks did not have a brick and mortar branch present. The objective behind it was to aid the process of financial inclusion and consequently take banking to the renotest areas ogf the country and mke them bankable.
How is a bank profit and loss statement different from a manufacturing company's profit and loss account (P&L)?
As the name suggests, a manufacturing campany anufactures a product. The cost involved in the process of manufacturing is the cost of goods. Other incidental codts like salaries, electricity and rent are clubbed under selling, genral and adminidtrative expenses. Upon the sale of the goods, net sales are recorded in the accounts. Unlike a manufacturing company, a bank does not manufacture anything. It's an intermediary between a lender and a borrower.
Nomination is the process of appointing a person to take care of your assets in the event of your death. You can appoint a nominee for your bank account, fixed deposit, account, or even your house. A nominee could be a family member or a friend or any other person whom you trust. However, since it involves finacal matters, you need to choose a nominee with care as person needs to be reliable enough to take care of your assets in the event of your death. So typically, when you open a savings account or fixed deposid with a bank, they will ask you to fill a from where you need to mention the nominee's name.
A double-dip recession refers to a short-lived recovery of an economy from a recession, before it slip vackm into a recession. In economic terms, when the GDP of an economy goes into the negative, after a brief period of showing positive growth, the economy is said to be faced with a double-dip recesssion. According to economists, double-dip recession may also be referred to as 'W'-shaped recession whare the two dips in the 'W' repredpsent the double-dip recession, and the quik incline in the middle is the intermedidate recovery.
An IDR is a receipt, declaring pwnership of sheres of foreign company. These receipts can be listed in India and traded in rupees. Just like overseas investors in the US-listed Americanm Depository Receipts (ADRs) of Infosys and Wipro get receipts against ownership of shares held by an Indian custodian, an IDR is proof of ownership of foreign company"s shares. The IDRs are denominated in Indian currency and are issued by a domestic depository and the underlying equity shares are secured with a custodian. An Indian investor pays in Indian rupees for the IDR whereas a shareholder in the issuer's home country pays in home currency.