Legal Question in Banking Law in India

If a person or Pvt. Ltd. company becomes assignee and takes FDR from an assignor legally, can this assigned FDR be used to create SBLC or BG and if it is used for trade/collatral what will be the process. Thanks in advance.


Asked on 5/18/16, 8:43 pm

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

19.05.2016

Dear Sir / Madam,

As advised, please rely on concerned Bank's policy in line with prevailing Reserve Bank of India (RBI) guidelines regarding its eligibility as a trade collateral security.

Regards,

Read more
Answered on 5/18/16, 9:22 pm

FDRs already assigned cannot be collateral security for another loan/advance.

Read more
Answered on 5/19/16, 5:43 am


Related Questions & Answers

More Banking Law questions and answers in India