P1ease refer to Section A(III)2
of BCD Circular No..5 dated the 5th July, 1987 read with Section
(2) of BCD Circular Letter No.7/121-00-92 dated the ,4th June,
1992 and Rule 10(iii) Of Rules of Business for NBFI regarding
margin requirement, prescribed for advances against bank deposits
and deposit certificates. It has been decided that encumbrance
or lien of any kind upon any foreign currency deposit I foreign
currency certificate as e. oover against any direct or indirect
liability of the depositors must be removed by July 31st 1998
through set off or direct liquidation of the liabilities so
covered by the borrowers.
2. No new encumbrance or lien should there
after be created against foreign currency deposits/certificates
held on May,8, 1998.
3 All banks/NBFIS are further directed to
give a compliance report to the State Bank within 3 days of
the expiry or the deadline.
Please acknowledge receipt.
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