BANK AUDITS (DEPOSITS)

[saahil]

i have two questions in relation to bank audits.

1. can bank offer different mark up rates on same kind of deposits to different parties.

2. if one bank MAINTAIN DEPOSIT ACCOUNT IN OTHER BANK THAN WILL TAHAT BE TREATED AS DEPOSIT OR BORROWING?

& CAN WE TREAT IT AS DEPOSIT DESPITE THE FACT THAT DIFFERENT MARK UP RATE IS BEING PAID ON SAID DEPOSITS?

quoting of circularS/book reference in this regard will be helpful?

saahil



ranjeet

[KK]

Bank dont offer different rates to different customers under the same deposit schenme

the bank with which deposit account is being maintained will be treated as agent of the depositing bank and the account will be reated as deposit account by the bank where as the depositing bank will treat this account as balances with other banks

yes it wil still be treated as deposit account as agent account are always maintained on the basis of special agreement between two banks and dont come under normal deposit schemes therefore different rates can be offered to diff banks


KK.




Edited by - kk on Jul 17 2003 024100 AM

[geo]

1)No, banks cant give different markup on same deposits.
But sometimes bank use the same name for deposits but due to the maturity period rates are different e.g. capital growth certificates of MCB.

2)Banks deposit in other bank is treated as deposit not borrowings.