Question ID :
Margin Money against Letters of Credit and Bank Guarantees
As per Notes and Instructions given by the Reserve Bank of India (RBI), pursuant to its Circular No.DBOD.No.BP.BC.78C.6861991-92 dated 6th February 1992, prescribing the form and contents of the Bank Balance Sheet cash margins for issuance of LCs and guarantees, should be shown as part of Other Liabilities and not as deposits but banks does not follow this and they continue to show these margins held in the form of Term Deposits in Deposits.. Please guide and provide the copy of circular as quoted above.
CA. TOTLA RAJENDRA P
Mar 26, 2018