What are unencumbered approved securities?

What are unencumbered approved securities?

`unencumbered approved securities’ or `unencumbered securities’ includes the securities lodged by the company with another institution for an advance or any other arrangement to the extent to which such securities have not been drawn against or availed of or encumbered in any manner.

Is unencumbered approved securities a liquid asset?

Unencumbered Liquid Assets means cash, cash equivalents and/or publicly traded/quoted marketable securities acceptable to Bank in its sole discretion, free of any lien or other encumbrance. Account assets held in a fiduciary capacity by Borrower shall not qualify as Unencumbered Liquid Assets.

What are the eligible securities for SLR?

The eligible assets for SLR mainly include cash, gold and approved securities by the RBI. Most banks keep the SLR in the form of government approved securities specifically – central government bonds and treasury bills as they give a reasonable return.

What are approved securities?

approved securities means securities of any State Government or of the Central Government and such bonds, both the principal whereof and the interest whereon shall have been fully and unconditionally guaranteed by any such Government; Sample 1.

What does Uncumbered mean?

Unencumbered refers to an asset or property that is free and clear of any encumbrances, such as creditor claims or liens. An unencumbered asset is much easier to sell or transfer than one with an encumbrance.

What is statutory liquidity ratio?

Statutory Liquidity Ratio or SLR is a minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities. It is basically the reserve requirement that banks are expected to keep before offering credit to customers.

What does unencumbered liquidity mean?

Unencumbered Liquidity means the sum of the Borrowers’ cash and Cash Equivalents (determined as of the last day of each month based on the average daily balance thereof during such month) held in deposit accounts and securities accounts maintained at a bank reasonably acceptable to the Administrative Agent, in which …

What is the statutory liquidity ratio SLR at present?

18\%
Currently, the statutory liquidity ratio rate is 18\%. (As on August 27, 2020). RBI has kept 40\% as the maximum limit for SLR. SLR is calculated as a percentage of all the deposits held by the bank.

What are government securities examples?

Government securities are a type of debt obligation, such as a bond, that is issued by a government to investors. Examples of federally issued securities include treasury bills, treasury notes, treasury bonds, TIPS, I savings bonds, and EE/E savings bonds.

What are different type of securities?

There are four main types of security: debt securities, equity securities, derivative securities, and hybrid securities, which are a combination of debt and equity.

What is the difference between encumbered and unencumbered?

As adjectives the difference between unencumbered and encumbered. is that unencumbered is not burdened with worries, cares or responsibilities while encumbered is weighted down, loaded sufficiently to make slow.