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,
Answered on 5/18/16, 9:22 pm
FDRs already assigned cannot be collateral security for another loan/advance.
Answered on 5/19/16, 5:43 am
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