Business
Business related articles
The Mechanism of a Letter of Credit in ForeignTrade
August 3, 2018
The Mechanism of a Letter of Credit in ForeignTrade
A letter of credit is an arrangement whereby a bank at the request and in accordance with the instructions of…
What are the Risks involved in foreign dealings for a bank
July 29, 2018
What are the Risks involved in foreign dealings for a bank
There are various risks involved in foreign dealings for a bank. The Dealing Room is rightly identified as a profit…
The Structure and Organization of Foreign Exchange Market in India
July 26, 2018
The Structure and Organization of Foreign Exchange Market in India
The foreign exchange market in India is patterned after the markets in the UK and the USA. There is no…
Difference Between Nostro Vostro and Loro Accounts
July 22, 2018
Difference Between Nostro Vostro and Loro Accounts
Nostro, Vostro and Loro Accounts: To facilitate dealings in foreign exchange, a bank in India maintains bank accounts at selected…
Difference Between Dealing Position and Cash Position
July 21, 2018
Difference Between Dealing Position and Cash Position
Foreign exchange is such a sensitive commodity and subject to wide fluctuations in price that the bank which deals in…
What are Swap and Deposit Transactions in Foreign Exchange
July 21, 2018
What are Swap and Deposit Transactions in Foreign Exchange
A ‘swap deal’ is a transaction in which the bank buys and sells the specified foreign currency simultaneously for different…
Cover Deals and Arbitrage Operations in Exchange Dealings
July 8, 2018
Cover Deals and Arbitrage Operations in Exchange Dealings
Cover Deals : Purchase and sale of foreign currency in the market undertaken to acquire or dispose of foreign exchange…
What is Extension of Forward Contracts
July 8, 2018
What is Extension of Forward Contracts
An exporter finds that he is unable to export on the due date but expects to do so in about…
The Exchange Rate Applicable in Case of Cancellation of a Forward Purchase Contracts
July 5, 2018
The Exchange Rate Applicable in Case of Cancellation of a Forward Purchase Contracts
The customer may approach the bank for cancellation when the underlying transaction becomes infructuous, or for any other reason he…
The Formalities to be Complied with Particular Reference to Exchange Control Regulations
July 4, 2018
The Formalities to be Complied with Particular Reference to Exchange Control Regulations
While booking forward contracts for customers, banks are required to observe that the exchange control regulations are complied with. The…