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Positive Pay System for Cheque Truncation System
AVOID PAYMENT OF ALTERED CHEQUES
02.01.2021 : Positive Pay system has been introduced by banks in India from from January 01, 2021 as per RBI instructions . As per the system , if you issue a cheque for Rs 50,000 or more , you have to provide details of the cheque issued to the drawee bank in advance .
To participate in the system , customer is expected to provide his option to participate or not in the system . If you give your option , you are required to provide the cheque details issued by you (viz. cheque date, 6-digit cheque number, amount, beneficiary name) by visiting your nearest bank branch on the same day as issued by you or before it is handed over to the beneficiary.
If you participate in the system and provide the details of the Cheques which are compliant with the process, such cheques will be accepted under dispute resolution mechanism at the CTS grids . In case the cheque issuance details are not shared with drawee (issuing) bank, the right to raise a complaint under Dispute Redressal Mechanism where an altered cheque is paid from the account will be forfeited . Hence it is prudent to participate in the system to avoid payment of altered cheques and resultant financial consequences .
Banks are yet to make available the facility in their websites and internet banking applications .
What is Positive Pay System for Cheque Truncation System ?
02.01.2021 : Positive Pay system has been introduced by banks in India from from January 01, 2021 as per RBI instructions . As per the system , if you issue a cheque for Rs 50,000 or more , you have to provide details of the cheque issued to the drawee bank in advance .
To participate in the system , customer is expected to provide his option to participate or not in the system . If you give your option , you are required to provide the cheque details issued by you (viz. cheque date, 6-digit cheque number, amount, beneficiary name) by visiting your nearest bank branch on the same day as issued by you or before it is handed over to the beneficiary.
If you participate in the system and provide the details of the Cheques which are compliant with the process, such cheques will be accepted under dispute resolution mechanism at the CTS grids . In case the cheque issuance details are not shared with drawee (issuing) bank, the right to raise a complaint under Dispute Redressal Mechanism where an altered cheque is paid from the account will be forfeited . Hence it is prudent to participate in the system to avoid payment of altered cheques and resultant financial consequences .
Banks are yet to make available the facility in their websites and internet banking applications .
What is Positive Pay System for Cheque Truncation System ?
Positive Pay System for Cheque Truncation System
27.09.2020 : Reserve Bank of India ( RBI ) is going to implement Positive Pay system from from January 01, 2021.
As per the system , if you issue a cheque for Rs 50,000 or more , you have to provide details of the cheque issued to the drawee bank in advance .
What is Positive Pay System for Cheque Truncation System ?
The concept of Positive Pay involves a process of reconfirming key details of large value cheques. Under this process, the issuer of the cheque submits electronically, through channels like SMS, mobile app, internet banking, ATM, etc., certain minimum details of that cheque (like date, name of the beneficiary / payee, amount, etc.) to the drawee bank, details of which are cross checked with the presented cheque by CTS. Any discrepancy is flagged by CTS to the drawee bank and presenting bank, who would take redressal measures.
3. National Payments Corporation of India (NPCI) shall develop the facility of Positive Pay in CTS and make it available to participant banks. Banks, in turn, shall enable it for all account holders issuing cheques for amounts of ₹50,000 and above. While availing of this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for amounts of ₹5,00,000 and above.
4. Only those cheques which are compliant with above instructions will be accepted under dispute resolution mechanism at the CTS grids. Member banks may implement similar arrangements for cheques cleared / collected outside CTS as well.
5. Banks are advised to create adequate awareness among their customers on features of Positive Pay System through SMS alerts, display in branches, ATMs as well as through their web-site and internet banking.
To go through the RBI Notification , CLICK HERE
IPPB LAUNCHES DIGITAL PAYMENT APP - DAK PAY
Dated 17.12.2020 : Department of posts & India Posts Payment Bank unveiled a new mobile App DAK PAY . The App is launched as part of its ongoing efforts to provide Digital Financial inclusion at the last mile across India.
DakPay is a digital payment app and the which has features of digital financial services and also assisted banking services provided by India Post & IPPB through the trusted Postal network across the nation to cater to the financial needs of its customers for sending money (Domestic Money Transfers – DMT), Scan QR code and make merchant payment (Virtual debit card & with UPI), enabling cashless ecosystem through biometrics, providing interoperable banking services to the customers of ANY BANK (AePS) and Utility Bill Payment services.
The launch event Minister was attended by Ravi Shankar Prasad , who appreciated India Post Payments Bank’s efforts during fight against Covid-19 by providing doorstep financial assistance through AePS leading to financial empowerment of the unbanked and the underbanked .
DAKPAY for Android can be downloaded at Google Play Stores OR WITH LINK However many users have complained about the quality of the App .
Dated 17.12.2020 : Department of posts & India Posts Payment Bank unveiled a new mobile App DAK PAY . The App is launched as part of its ongoing efforts to provide Digital Financial inclusion at the last mile across India.
DakPay is a digital payment app and the which has features of digital financial services and also assisted banking services provided by India Post & IPPB through the trusted Postal network across the nation to cater to the financial needs of its customers for sending money (Domestic Money Transfers – DMT), Scan QR code and make merchant payment (Virtual debit card & with UPI), enabling cashless ecosystem through biometrics, providing interoperable banking services to the customers of ANY BANK (AePS) and Utility Bill Payment services.
The launch event Minister was attended by Ravi Shankar Prasad , who appreciated India Post Payments Bank’s efforts during fight against Covid-19 by providing doorstep financial assistance through AePS leading to financial empowerment of the unbanked and the underbanked .
DAKPAY for Android can be downloaded at Google Play Stores OR WITH LINK However many users have complained about the quality of the App .
RTGS WILL BE AVAILABLE 24 X 7 FROM MONDAY
Dated 12.12.2020 : National Electronic Fund Transfer ( NEFT ) was made available round the clock , 7 days a week from 15th , December 2019 . Real Time Gross Settlement ( RTGS ) will also be available round the clock from early morning 3.30 am of the Monday 14th, December 2020 . The large-value RTGS system is currently available for customers from 7.00 am to 6.00 pm on all working days of a week (except 2nd and 4th Saturdays of the month). Funds transfers above Rs 2,00,000 can be made using RTGS facility .
RTGS thus will be available every day from early morning 00.30 hrs ( Start of the Day ) to 11.50 pm in the night ( End of the Day ) . However RTGS will not be available for customer and inter-bank transactions during the interval between ‘end-of-day’ and ‘start-of-day’ processes, whose timings would be duly broadcasted through the RTGS system.
RBI is undertaking the above facility to support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India’s efforts to develop international financial centers and to provide wider payment flexibility to domestic corporates and institutions .
To read complete regulation of RTGS as amended now , CLICK HERE
Dated 12.12.2020 : National Electronic Fund Transfer ( NEFT ) was made available round the clock , 7 days a week from 15th , December 2019 . Real Time Gross Settlement ( RTGS ) will also be available round the clock from early morning 3.30 am of the Monday 14th, December 2020 . The large-value RTGS system is currently available for customers from 7.00 am to 6.00 pm on all working days of a week (except 2nd and 4th Saturdays of the month). Funds transfers above Rs 2,00,000 can be made using RTGS facility .
RTGS thus will be available every day from early morning 00.30 hrs ( Start of the Day ) to 11.50 pm in the night ( End of the Day ) . However RTGS will not be available for customer and inter-bank transactions during the interval between ‘end-of-day’ and ‘start-of-day’ processes, whose timings would be duly broadcasted through the RTGS system.
RBI is undertaking the above facility to support the ongoing efforts aimed at global integration of Indian financial markets, facilitate India’s efforts to develop international financial centers and to provide wider payment flexibility to domestic corporates and institutions .
To read complete regulation of RTGS as amended now , CLICK HERE
LIMIT FOR CONTACTLESS PAYMENT ON CARDS TO BE ENHANCED
Dated 04.12.2020 : Presently you can make payment up to Rs 2,000 in contactless mode on the cards ( Debit / Credit cards ) . Now Reserve Bank of India is proposing to increase the limit to Rs 5,000 from 01st, January 2021 . In the contactless mode , you can make payment without swiping your card , but by just waving at the POS machine . You need not enter the PIN also and hence you need not touch the POS machine which makes transaction safer in the times of spread of pandemic corona .
However the discretion to use the enhanced limit lies with you and you may not avail the facility also . Further you have to be careful not to take your card to nearby POS machine when you have not done any transaction , especially if the merchant has mobile POS machine .
To read the policy statement dated 04.12.2020 of RBI , CLICK HERE
Dated 04.12.2020 : Presently you can make payment up to Rs 2,000 in contactless mode on the cards ( Debit / Credit cards ) . Now Reserve Bank of India is proposing to increase the limit to Rs 5,000 from 01st, January 2021 . In the contactless mode , you can make payment without swiping your card , but by just waving at the POS machine . You need not enter the PIN also and hence you need not touch the POS machine which makes transaction safer in the times of spread of pandemic corona .
However the discretion to use the enhanced limit lies with you and you may not avail the facility also . Further you have to be careful not to take your card to nearby POS machine when you have not done any transaction , especially if the merchant has mobile POS machine .
To read the policy statement dated 04.12.2020 of RBI , CLICK HERE
LVB CUSTOMERS CAN CONTINUE TO BANK WITH THE SAME BENEFITS AS EARLIER :
Dated 01.12.2020 : After taking over the assets , liabilities and management of Lakshmi Vilas Bank , DBS has announced that the customers of LVB can continue to avail banking services as earlier and can resume banking through the Lakshmi Vilas branches and ATM network as usual . The announcement further says
"
1. Existing fixed deposit/s with erstwhile LVB will continue at the interest rates, at which they were originally booked, till the next maturity date
2. The interest rates on savings bank accounts will be governed by the rates offered by erstwhile LVB till further notice .
3. Any new deposits being booked now, will be at rates which were earlier published by erstwhile LVB, till new rate cards are announced. "
DBS Bank will be now working to integrate LVB’s systems and network into DBS over the coming months. During this period, customers of LVB will be able to access all the banking services of erstwhile LVB. Once this is completed, Customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services .
To read announcement of LVB / DBS Bank , CLICK HERE
Dated 01.12.2020 : After taking over the assets , liabilities and management of Lakshmi Vilas Bank , DBS has announced that the customers of LVB can continue to avail banking services as earlier and can resume banking through the Lakshmi Vilas branches and ATM network as usual . The announcement further says
"
1. Existing fixed deposit/s with erstwhile LVB will continue at the interest rates, at which they were originally booked, till the next maturity date
2. The interest rates on savings bank accounts will be governed by the rates offered by erstwhile LVB till further notice .
3. Any new deposits being booked now, will be at rates which were earlier published by erstwhile LVB, till new rate cards are announced. "
DBS Bank will be now working to integrate LVB’s systems and network into DBS over the coming months. During this period, customers of LVB will be able to access all the banking services of erstwhile LVB. Once this is completed, Customers will be able to access a wider range of products and services, including access to the full suite of DBS digital banking services .
To read announcement of LVB / DBS Bank , CLICK HERE
PSBS NOT TO REVISE CHARGES IN NEAR FUTURE : FINANCE MINISTRY
Dated 04.11.2020 : Leading Public sector bank Bank of Baroda had revised their services charges recently , especially in cash handling services and there was a public outcry against it . Further News paper reports had suggested that other public sector banks might follow suit . However Finance Ministry has clarified that no public sector bank is going to revise service charges in near future .
Bank of Baroda , the only PSB that had revised the charges , has since taken back the revision that was effective from 01st, November 2020 .
Finance Ministry has also clarified that No service charge is applicable on the 60.04 crore BSBD accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society, for the free services prescribed by RBI.
To read Finance Ministry's Press Release , CLICK HERE
Dated 04.11.2020 : Leading Public sector bank Bank of Baroda had revised their services charges recently , especially in cash handling services and there was a public outcry against it . Further News paper reports had suggested that other public sector banks might follow suit . However Finance Ministry has clarified that no public sector bank is going to revise service charges in near future .
Bank of Baroda , the only PSB that had revised the charges , has since taken back the revision that was effective from 01st, November 2020 .
Finance Ministry has also clarified that No service charge is applicable on the 60.04 crore BSBD accounts, including 41.13 crore Jan Dhan accounts opened by the poor and unbanked segments of society, for the free services prescribed by RBI.
To read Finance Ministry's Press Release , CLICK HERE
SBI INTRODUCES OTP BASED CASH WITHDRAWALS
Attn SBI customers :
Dated 17.09.2020 : Tomorrow onward you have to carry your mobile to State Bank of India's ATM machine if you want to draw cash of Rs 10,000 or above through your SBI Debit card .
Hence you should have registered your Mobile number with State Bank of India for the particular SB account for which debit card has been issued . You will receive OTP as soon as you attempt to draw cash of Rs 10,000 or above from any SBI ATM machine . Only after successful entry of OTP , cash will be dispensed from the machine .
It is first time in India any bank has introduced such a system .
Attn SBI customers :
Dated 17.09.2020 : Tomorrow onward you have to carry your mobile to State Bank of India's ATM machine if you want to draw cash of Rs 10,000 or above through your SBI Debit card .
Hence you should have registered your Mobile number with State Bank of India for the particular SB account for which debit card has been issued . You will receive OTP as soon as you attempt to draw cash of Rs 10,000 or above from any SBI ATM machine . Only after successful entry of OTP , cash will be dispensed from the machine .
It is first time in India any bank has introduced such a system .
BANKS CAN ACCESS YOUR IT RETURNS FILING STATUS NOW
Dated 04.09.2020 : If you have not submitted your IT returns for the last three years and if you withdraw cash from a bank , post office or co-operative society , following TDS ( Tax deducted at source ) will be collected from you under section 194N of Income Tax Act :
1. If you withdraw more than Rs 2 lakhs and up to Rs 1 crore in a year , 2 % of cash drawn will be collected as TDS
2. If the cash drawn exceeds Rs 1 crore in a year , 5 % of cash drawn will be collected as TDS
If IT Returns have been submitted , a lower rate of 2 % will be collected only if the cash withdrawal amount exceeds Rs 1 crore in the year .
The amount so collected can be claimed by you as Advance tax paid while submitting the returns .
BANKERS CAN CHECK ITR FILING STATUS NOW :
In order to help banks with the information of the customers with regard to status of filing of IT Returns , The Income Tax Department has now released a new functionality “ITR Filing Compliance Check” which will be available to Scheduled Commercial Banks (SCBs) to check the IT Return filing status of PANs in bulk mode. The Principal Director General of Income-tax (Systems) has notified the procedure and format for providing notified information to the Scheduled Commercial Banks.
For detailed guidelines to bankers how to access the information , CLICK HERE
1. If you withdraw more than Rs 2 lakhs and up to Rs 1 crore in a year , 2 % of cash drawn will be collected as TDS
2. If the cash drawn exceeds Rs 1 crore in a year , 5 % of cash drawn will be collected as TDS
If IT Returns have been submitted , a lower rate of 2 % will be collected only if the cash withdrawal amount exceeds Rs 1 crore in the year .
The amount so collected can be claimed by you as Advance tax paid while submitting the returns .
BANKERS CAN CHECK ITR FILING STATUS NOW :
In order to help banks with the information of the customers with regard to status of filing of IT Returns , The Income Tax Department has now released a new functionality “ITR Filing Compliance Check” which will be available to Scheduled Commercial Banks (SCBs) to check the IT Return filing status of PANs in bulk mode. The Principal Director General of Income-tax (Systems) has notified the procedure and format for providing notified information to the Scheduled Commercial Banks.
For detailed guidelines to bankers how to access the information , CLICK HERE
NOW ELECTRONIC CARDS FOR OVERDRAFT / CASH CREDIT ACCOUNTS
Dated 24.04.2020 : Reserve Bank of India ( RBI ) has now permitted all banks to issue Electronic Cards for individuals having overdraft / cash credit facilities . The cards can be issued to persons having overdraft facilities in the nature of personal loans and without any end use restrictions . The cards are to be co-terminated with lapse of the limit . The cards can be used only for on-line / non-cash transactions . . The cards cannot be used for international transactions .
The restriction on cash transaction will not apply to overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
For RBI Notification dated 23.04.2020 , CLICK HERE
Dated 24.04.2020 : Reserve Bank of India ( RBI ) has now permitted all banks to issue Electronic Cards for individuals having overdraft / cash credit facilities . The cards can be issued to persons having overdraft facilities in the nature of personal loans and without any end use restrictions . The cards are to be co-terminated with lapse of the limit . The cards can be used only for on-line / non-cash transactions . . The cards cannot be used for international transactions .
The restriction on cash transaction will not apply to overdraft facility provided along with Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
For RBI Notification dated 23.04.2020 , CLICK HERE
BANKING DURING THE LOCK -DOWN PERIOD
Dated 25.03.2020 : Prime Minister Shri Narendra Modi announced yesterday night total lock down of India for next 21 days . He requested all Indians to follow the government orders issued time to time from concerned authorities to save India from spread of the pandemic Covid -19 . As per subsequent guidelines issued by Ministry of Home Affairs ( MHA ) , the banking services are allowed to operate during the lock down period of 21 days staring from today :.
However inn light of World health Organization ( WHO ) declaring Coronavirus disease ( COVID-19 ) as pandemic ,banks have been asked by RBI to encourage their customers to use digital banking facilities as far as possible . Further Indian Banks' Association has announced the availability of following services only in the bank branches
1. Cash Deposits & withdrawals
2. Clearing of cheques
3. Remittances
4. Government transactions
In order to protect their staff and customers , many banks have taken various steps like providing masks and sanitizers , reducing the number of staff working simultaneously at the branch level and work from home for the administrative staff etc and also curtailed the banking hours . In view of non-availability of public transport and requirement of social distancing , it will be difficult for the customers also to visit the branch and complete the trasactiuons . As banks and RBI have also appealed to the customers to utilse Digital banking facilities available , it will be better for customers to avoid visit of bank branches as far as possible . Customers may uitilize on-line services and Mobile APPS and save themselves from personal visits and safeguard themselves .
We have therefore a page exclusively listing all the major banks in India with links to their websites . Our readers may utilize the facility by CLICKING HERE . They can go to the websites of the banks where they maintain account , register for internet banking if they have not already done . Most of the transactions they can do on-line now and save themselves and others from spreading the virus
Dated 25.03.2020 : Prime Minister Shri Narendra Modi announced yesterday night total lock down of India for next 21 days . He requested all Indians to follow the government orders issued time to time from concerned authorities to save India from spread of the pandemic Covid -19 . As per subsequent guidelines issued by Ministry of Home Affairs ( MHA ) , the banking services are allowed to operate during the lock down period of 21 days staring from today :.
However inn light of World health Organization ( WHO ) declaring Coronavirus disease ( COVID-19 ) as pandemic ,banks have been asked by RBI to encourage their customers to use digital banking facilities as far as possible . Further Indian Banks' Association has announced the availability of following services only in the bank branches
1. Cash Deposits & withdrawals
2. Clearing of cheques
3. Remittances
4. Government transactions
In order to protect their staff and customers , many banks have taken various steps like providing masks and sanitizers , reducing the number of staff working simultaneously at the branch level and work from home for the administrative staff etc and also curtailed the banking hours . In view of non-availability of public transport and requirement of social distancing , it will be difficult for the customers also to visit the branch and complete the trasactiuons . As banks and RBI have also appealed to the customers to utilse Digital banking facilities available , it will be better for customers to avoid visit of bank branches as far as possible . Customers may uitilize on-line services and Mobile APPS and save themselves from personal visits and safeguard themselves .
We have therefore a page exclusively listing all the major banks in India with links to their websites . Our readers may utilize the facility by CLICKING HERE . They can go to the websites of the banks where they maintain account , register for internet banking if they have not already done . Most of the transactions they can do on-line now and save themselves and others from spreading the virus
New Updated Article
TAX PLANNING FOR FY 2020-21 ( AY 2021-22 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
CLICK HERE TO READ
TAX PLANNING FOR FY 2020-21 ( AY 2021-22 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
CLICK HERE TO READ
COVID 19 AND DIGITAL BANKING
Dated 20.03.2020 : In light of World health Organization ( WHO ) declaring Coronavirus disease ( COVID-19 ) as pandemic ,banks have been asked by RBI to encourage their customers to use digital banking facilities as far as possible . In order to protect their staff and customers , many banks have taken various steps like providing masks and sanitizers , reducing the number of staff working simultaneously at the branch level and work from home for the administrative staff etc . They have also appealed to the customers to utilse Digital banking facilities available and to avoid visit of bank branches as far as possible . Social distancing has become one of the important tools to fight the spread of virus . .
We have a page exclusively listing all the major banks in India with links to their websites . Our readers may utilize the facility by
CLICKING HERE . They can go to the websites of the banks where they maintain account , register for internet banking if they have not already done . Most of the transactions they can do on-line now and save themselves and others from spreading the virus .
Dated 20.03.2020 : In light of World health Organization ( WHO ) declaring Coronavirus disease ( COVID-19 ) as pandemic ,banks have been asked by RBI to encourage their customers to use digital banking facilities as far as possible . In order to protect their staff and customers , many banks have taken various steps like providing masks and sanitizers , reducing the number of staff working simultaneously at the branch level and work from home for the administrative staff etc . They have also appealed to the customers to utilse Digital banking facilities available and to avoid visit of bank branches as far as possible . Social distancing has become one of the important tools to fight the spread of virus . .
We have a page exclusively listing all the major banks in India with links to their websites . Our readers may utilize the facility by
CLICKING HERE . They can go to the websites of the banks where they maintain account , register for internet banking if they have not already done . Most of the transactions they can do on-line now and save themselves and others from spreading the virus .
NO MINIMUM BALANCE CHARGES FOR SB ACCOUNTS : SBI
Dated 12.03.2020 : Leading Public sector bank State Bank of India ( SBI ) announced waiver of Minimum Balance Charges for all savings bank accounts held with them effective from January 1, 2020 . All customers of SBI will now enjoy zero balance facility .
Currently Savings Bank customers of SBI need to maintain Average Monthly Balance of Rs 3000, Rs 2000 and Rs 1000 in Metro, Semi Urban and Rural areas respectively. Bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of AMB.
Further the bank has also waived SMS charges being levied by them for communicating account transactions on the mobiles of the customers .
Dated 12.03.2020 : Leading Public sector bank State Bank of India ( SBI ) announced waiver of Minimum Balance Charges for all savings bank accounts held with them effective from January 1, 2020 . All customers of SBI will now enjoy zero balance facility .
Currently Savings Bank customers of SBI need to maintain Average Monthly Balance of Rs 3000, Rs 2000 and Rs 1000 in Metro, Semi Urban and Rural areas respectively. Bank used to levy a penalty of Rs 5 to Rs 15 + taxes on non-maintenance of AMB.
Further the bank has also waived SMS charges being levied by them for communicating account transactions on the mobiles of the customers .
YOUR CARDS WILL BE DISABLED IF YOU HAVE NOT USED THEM ON-LINE SO FAR
Dated 16.01.2020 : Reserve Bank of India ( RBI ) has asked all banks and card issuers to disable all the cards issued by them which are never used for on-line transactions by March 16,2020 . However the facility to use the cards in ATMs and Point of Sales ( POS ) Devices will continue . The card issuers are also asked to review all other existing cards issued and decide whether to continue the facilities in the cards based on risk perception .
RBI has asked all card issuers to issue the new cards ( Fresh / RRe-issue ) enabling only ATM transactions and
POS transactions . However the cards issuers should give a facility to the customers to enable on-line transactions if they desire .
Additionally, the issuers shall provide to all cardholders the facilities to switch on / off and set / modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions, etc. The facility should be available on a 24x7 basis through multiple channels - mobile application / internet banking / ATMs / Interactive Voice Response (IVR) . Banks
should maje the facility available at all branches / offices . Banks should send alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.
For RBI Notification , CLICK HERE
Dated 16.01.2020 : Reserve Bank of India ( RBI ) has asked all banks and card issuers to disable all the cards issued by them which are never used for on-line transactions by March 16,2020 . However the facility to use the cards in ATMs and Point of Sales ( POS ) Devices will continue . The card issuers are also asked to review all other existing cards issued and decide whether to continue the facilities in the cards based on risk perception .
RBI has asked all card issuers to issue the new cards ( Fresh / RRe-issue ) enabling only ATM transactions and
POS transactions . However the cards issuers should give a facility to the customers to enable on-line transactions if they desire .
Additionally, the issuers shall provide to all cardholders the facilities to switch on / off and set / modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions, etc. The facility should be available on a 24x7 basis through multiple channels - mobile application / internet banking / ATMs / Interactive Voice Response (IVR) . Banks
should maje the facility available at all branches / offices . Banks should send alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.
For RBI Notification , CLICK HERE
BANKERS TO DO VIDEO IDENTIFICATION AND TAKE LIVE PICTURE OF CUSTOMER FOR E-KYC PURPOSE : RBI
DATED 10.01.2020 : Reserve Bank of India has amended Master Direction for KYC , vide their notification dated 09.01.2020 and advised bankers to obtain live pictures of customers for completing the E-KYC process . The notification has identified Digital KYC process as " capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the bank "
Further bankers can do video based customer identification process ( V-CIP ) for KYC verification . However all accounts opened through V-CIP shall be made operational only after being subject to concurrent audit, to ensure the integrity of process.
Bankers have to ensure that the process is a seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt. Bankers shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations. Banks can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification. Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.
Bankers shall ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP and the identification details in Aadhaar/PAN shall match with the details provided by the customer.
As per the notification , customers have to furnish copy of any of the OVD document containing address and identity proofs along with recent photograph .
“Officially Valid Document” (OVD) will mean
a. the Aadhaar number where he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or he decides to submit his Aadhaar number voluntarily to a banking company or any reporting entity notified under first proviso to sub-section (1) of section 11A of the PML Act; or
b. the proof of possession of Aadhaar number where offline verification can be carried out; or
c. the proof of possession of Aadhaar number where offline verification cannot be carried out or
d. any Officially Valid Document (OVD) or the equivalent e-document thereof containing the details of his identity and address; and
such other documents including in respect of the nature of business and financial status of the client, or the equivalent e-documents thereof as may be required by the banker.
1. Passport,
2. Driving licence
3.Proof of possession of Aadhaar number
4. Voter's Identity Card issued by the Election Commission of India
5. Job card issued by NREGA duly signed by an officer of the State Government and letter issued by the
National Population Register containing details of name and address.
Provided that,
a. where the customer submits his proof of possession of Aadhaar number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India.
b. where the OVD furnished by the customer does not have updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:-
i. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
ii. property or Municipal tax receipt;
iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector
Undertakings, if they contain the address;
iv. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
f. the Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962
.Where a customer has provided his Aadhaar number as above for identification and wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Banker .
Where customer has provided PAN card , Banker shall capture a clear image of PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer. The PAN details shall be verified from the database of the issuing authority
As the notification contains various amendments to the KYC process , one may know all the amendments carried out by RBI through Notification dated 09.01.2020 , by CLICKNIG HERE
DATED 10.01.2020 : Reserve Bank of India has amended Master Direction for KYC , vide their notification dated 09.01.2020 and advised bankers to obtain live pictures of customers for completing the E-KYC process . The notification has identified Digital KYC process as " capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the bank "
Further bankers can do video based customer identification process ( V-CIP ) for KYC verification . However all accounts opened through V-CIP shall be made operational only after being subject to concurrent audit, to ensure the integrity of process.
Bankers have to ensure that the process is a seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt. Bankers shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations. Banks can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification. Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.
Bankers shall ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP and the identification details in Aadhaar/PAN shall match with the details provided by the customer.
As per the notification , customers have to furnish copy of any of the OVD document containing address and identity proofs along with recent photograph .
“Officially Valid Document” (OVD) will mean
a. the Aadhaar number where he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or he decides to submit his Aadhaar number voluntarily to a banking company or any reporting entity notified under first proviso to sub-section (1) of section 11A of the PML Act; or
b. the proof of possession of Aadhaar number where offline verification can be carried out; or
c. the proof of possession of Aadhaar number where offline verification cannot be carried out or
d. any Officially Valid Document (OVD) or the equivalent e-document thereof containing the details of his identity and address; and
such other documents including in respect of the nature of business and financial status of the client, or the equivalent e-documents thereof as may be required by the banker.
1. Passport,
2. Driving licence
3.Proof of possession of Aadhaar number
4. Voter's Identity Card issued by the Election Commission of India
5. Job card issued by NREGA duly signed by an officer of the State Government and letter issued by the
National Population Register containing details of name and address.
Provided that,
a. where the customer submits his proof of possession of Aadhaar number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India.
b. where the OVD furnished by the customer does not have updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:-
i. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
ii. property or Municipal tax receipt;
iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector
Undertakings, if they contain the address;
iv. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
f. the Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962
.Where a customer has provided his Aadhaar number as above for identification and wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Banker .
Where customer has provided PAN card , Banker shall capture a clear image of PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer. The PAN details shall be verified from the database of the issuing authority
As the notification contains various amendments to the KYC process , one may know all the amendments carried out by RBI through Notification dated 09.01.2020 , by CLICKNIG HERE
- BANKS CAN NOW ACCEPT CURRENT ADDRESS OTHER THAN IN AADHAAR
- Dated 14.11.2019 : As per Gazette notification dated 13.11.2019 , new current address , other than recorded in the Aadhaar card may be provided to authorities by way of self declaration .
- People who migrate to new places on taking up jobs were finding it difficult to open banking accounts as their address in Aadhaar card would be of their permanent residence in their native place and the current address will not match that in Aadhaar card . The rule change will help such persons to open bank accounts in their new places of work by providing current address by self declaration and banks can record current address and communication can be done to the current address .
The changes in rules have been made by amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 .
For Gazette Notification dated 13.11.2019 , CLICK HERE
NEW RULES FOR BASIC SAVINGS BANK DEPOSIT ACCOUNTS ( BSBD )
DATED 11.06 .2019 : Reserve Bank of India has issued new guidelines to banks on 10.06.2019 with regard to opening of Basic Savings Bank Deposit Accounts ( BSBD ) . As per the new notification , banks have to offer following free services without requirement of any minimum balances for their BSBD account holders .
1. The deposit of cash at bank branch as well as ATMs/CDMs
2.Receipt/ credit of money through any electronic channel or by means of deposit /collection of cheques drawn by Central/State Government agencies and departments
3. No limit on number and value of deposits that can be made in a month
4.Minimum of four withdrawals in a month, including ATM withdrawals
5. ATM Card or ATM-cum-Debit Card
Further banks have to make the BSBD account service available to all . However banks may charge service fee if any additional service , like issue of cheque book , is provided to the BSBD a/c holders at their request .
The holders of BSBD Account will not be eligible for opening any other savings bank deposit account in that bank. If a customer has any other existing savings bank deposit account in that bank, he/she will be required to close it within 30 days from the date of opening a BSBD Account. Further, before opening a BSBD account, a bank should take a declaration from the customer that he/she is not having a BSBD account in any other bank.
For RBI Notification dated 10.06.2019 , CLICK HERE
DATED 11.06 .2019 : Reserve Bank of India has issued new guidelines to banks on 10.06.2019 with regard to opening of Basic Savings Bank Deposit Accounts ( BSBD ) . As per the new notification , banks have to offer following free services without requirement of any minimum balances for their BSBD account holders .
1. The deposit of cash at bank branch as well as ATMs/CDMs
2.Receipt/ credit of money through any electronic channel or by means of deposit /collection of cheques drawn by Central/State Government agencies and departments
3. No limit on number and value of deposits that can be made in a month
4.Minimum of four withdrawals in a month, including ATM withdrawals
5. ATM Card or ATM-cum-Debit Card
Further banks have to make the BSBD account service available to all . However banks may charge service fee if any additional service , like issue of cheque book , is provided to the BSBD a/c holders at their request .
The holders of BSBD Account will not be eligible for opening any other savings bank deposit account in that bank. If a customer has any other existing savings bank deposit account in that bank, he/she will be required to close it within 30 days from the date of opening a BSBD Account. Further, before opening a BSBD account, a bank should take a declaration from the customer that he/she is not having a BSBD account in any other bank.
For RBI Notification dated 10.06.2019 , CLICK HERE
AADHAAR IS NO LONGER MANDATORY FOR OPENING BANK ACCOUNTS AS PER SUPREME COURT VERDICT : REPERCUSSIONS
DATED 27.09.2018 : Reserve Bank of India had Aadhaar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued by them on 20.04.2018 . The direction issued was subject to final outcome of the pending cases in the supreme court with regard to validity of Aadhaar and instructions issued by Central Government / Reserve Bank of India . ( For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE ) .
Now Supreme Court has given the verdict that it is not mandatory to obtain Aadhaar card for opening bank accounts , as the instructions given by the government are not backed by any law . Hence master circular will need amendment now . As a result of court decision , linking of Aadhaar to bank accounts will also not be compulsory . However customers may furnish Aadhaar as an identity proof / address proof like any other OVD ( Official Valid Document ) . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Some of the questions that arise after the verdict are
1. What will be the fate of the accounts that are already linked ?
2. Whether customers , who are not DBT beneficiaries can demand un-linking ?
3. As supreme court says linking was not mandated by law as a reason for striking it down , whether government will enact another law making aadhaar linking mandatory ?
So far , we are yet to hear the government plans in response to court verdict .
We hope Reserve Bank of India will issue fresh guidelines / master guidelines clarifying various issues involved as a result of supreme court verdict and it will be made clear for both banker sand customers for easy transactions.
DATED 27.09.2018 : Reserve Bank of India had Aadhaar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued by them on 20.04.2018 . The direction issued was subject to final outcome of the pending cases in the supreme court with regard to validity of Aadhaar and instructions issued by Central Government / Reserve Bank of India . ( For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE ) .
Now Supreme Court has given the verdict that it is not mandatory to obtain Aadhaar card for opening bank accounts , as the instructions given by the government are not backed by any law . Hence master circular will need amendment now . As a result of court decision , linking of Aadhaar to bank accounts will also not be compulsory . However customers may furnish Aadhaar as an identity proof / address proof like any other OVD ( Official Valid Document ) . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Some of the questions that arise after the verdict are
1. What will be the fate of the accounts that are already linked ?
2. Whether customers , who are not DBT beneficiaries can demand un-linking ?
3. As supreme court says linking was not mandated by law as a reason for striking it down , whether government will enact another law making aadhaar linking mandatory ?
So far , we are yet to hear the government plans in response to court verdict .
We hope Reserve Bank of India will issue fresh guidelines / master guidelines clarifying various issues involved as a result of supreme court verdict and it will be made clear for both banker sand customers for easy transactions.
NEW BLOG ARTICLE ON
HEALTH INSURANCE OPTIONS FOR RETIRED BANKERS
The article explores the alternative avenues for existing health insurance group policy for Retired Bankers
TO READ THE ARTICLE CLICK HERE
HEALTH INSURANCE OPTIONS FOR RETIRED BANKERS
The article explores the alternative avenues for existing health insurance group policy for Retired Bankers
TO READ THE ARTICLE CLICK HERE
BIO-METRIC VERIFICATION RELAXED FOR OLD AGED AND INJURED FOR OPENING BANK ACCOUNTS
21.05.2018 : Finance Ministry , Government of India , through a gazette notification on 16.05.2018 , relaxed rules for bio-metric verification of the identity for opening bank accounts in case the persons are unable to offer bio metric verification due to injury , illness or infirmity due to old age or otherwise . In such cases banks will not be able to verify the identity on the basis of aadhaar card they hold . Such persons can now provide alternate proofs of identity to open bank accounts and to continue banking operations without difficulty .
For Gazette Notification , CLICK HERE
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AS PER NEW KYC GUIDELINES OF RBI
DATED 22.04.2018 : Reserve Bank of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued on 20.04.2018 .
The requirement will not apply to Non- Residents , Residents of Assam , Meghalaya and Jammu & Kashmir . Along with Aadhaar number , one has to furnish PAN number or Form 60 . They have to submit çertified copy of Official Valid Document ( OVD ) containing details of identity and address along with their recent photograph . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
At the time of receipt of Aadhaar card , banks will complete e-KYC authentication either using biometrics or OTP . If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months .
Small accounts can be opened without Aadhar / PAN with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
The instructions issued by RBI are subject to final decision to be given by supreme court on the matter of Aadhaar
For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE
DATED 22.04.2018 : Reserve Bank of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued on 20.04.2018 .
The requirement will not apply to Non- Residents , Residents of Assam , Meghalaya and Jammu & Kashmir . Along with Aadhaar number , one has to furnish PAN number or Form 60 . They have to submit çertified copy of Official Valid Document ( OVD ) containing details of identity and address along with their recent photograph . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
At the time of receipt of Aadhaar card , banks will complete e-KYC authentication either using biometrics or OTP . If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months .
Small accounts can be opened without Aadhar / PAN with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
The instructions issued by RBI are subject to final decision to be given by supreme court on the matter of Aadhaar
For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE
BANKS TO VERIFY COPIES OF DOCUMENTS PRESENTED WITH ORIGINALS
Dated 23.10.2017 : Government has instructed banks and other financial institutions , through a Gazette notification , to verify copies of documents produced with originals and to record the same on the copy by the authorised officers . Hence customers , for the purpose of identity proof and address proof , have to produce original documents to the bankers and financial institutions along with copies of the documents . Bankers may return the originals after making note on the copies of the verification done .
Further Gazette notification permits banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
For the relevant gazette notification . CLICK HERE
.
Dated 23.10.2017 : Government has instructed banks and other financial institutions , through a Gazette notification , to verify copies of documents produced with originals and to record the same on the copy by the authorised officers . Hence customers , for the purpose of identity proof and address proof , have to produce original documents to the bankers and financial institutions along with copies of the documents . Bankers may return the originals after making note on the copies of the verification done .
Further Gazette notification permits banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
For the relevant gazette notification . CLICK HERE
.
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AND TRANSACTIONS ABOVE RS 50,000
DATED 17.06.2017 : Government of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. Those who have already bank accounts have to link them with their Aadhar numbers before 31st , Dec , 2017 , failing which accounts will become invalid .
If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months . Small accounts can be opened without Aadhar with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
These rules are made effective through an amendment to The Prevention of Money Laundering ( Maintenance of Records ) Rules of 2005 .
NOTE :
1. Reports do not indicate effects of these amendments to opening and operation of Non Resident accounts in Banks
2. While PAN Number or Form 60 was necessary for conducting transactions above Rs 50, 000 earlier , now Aadhar is required in lieu .
3. With linking of Aadhar , PAN and Bank accounts , it will be easy to monitor high value financial transactions for the government .
DATED 17.06.2017 : Government of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. Those who have already bank accounts have to link them with their Aadhar numbers before 31st , Dec , 2017 , failing which accounts will become invalid .
If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months . Small accounts can be opened without Aadhar with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
These rules are made effective through an amendment to The Prevention of Money Laundering ( Maintenance of Records ) Rules of 2005 .
NOTE :
1. Reports do not indicate effects of these amendments to opening and operation of Non Resident accounts in Banks
2. While PAN Number or Form 60 was necessary for conducting transactions above Rs 50, 000 earlier , now Aadhar is required in lieu .
3. With linking of Aadhar , PAN and Bank accounts , it will be easy to monitor high value financial transactions for the government .
Savings Bank account for an individual is the basic account one needs to have for opening relationship with a bank . All scheduled banks offer the facility of a savings bank . If you approach any branch of a bank near to you , they will be happy to open n Savings Bank account for you . There are separate types of account for Residents and Non residents of India . For residents of India , Following types of account would be offered by most of the banks .
1. Simple Savings Bank a/c with complete KYC formalities.
2. Basic Savings Bank a/c with limited KYC formalities .
3. Premier Savings Bank a/c carrying additional features which also involve additional charges / specified minimum balances .
1. Simple Savings Bank a/c with complete KYC formalities.
2. Basic Savings Bank a/c with limited KYC formalities .
3. Premier Savings Bank a/c carrying additional features which also involve additional charges / specified minimum balances .
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BENEFITS FOR ALL ACCOUNTS
1. Depositing of cash and other financial Instruments , withdrawal by way of cash , cheque.
2. Credit and debit through electronic modes.
3. Statement of Account / Passbook indicating the credits and debits to the account
4. ATM / Debit Card allowing specified free debits per month .
5. Interest on the balance maintained - rate of interest at the discretion of the bank
ADDITIONAL BENEFITS TO PREMIER ACCOUNTS OR TO ANY TYPE OF SAVINGS BANK ACCOUNT
These benefits are offered by individual banks either free or for a charge and bank may insist a minimum relationship
value either for savings bank account or for any other account maintained . Benefits vary from Bank to Bank
1. Depositing of cash and other financial Instruments , withdrawal by way of cash , cheque.
2. Credit and debit through electronic modes.
3. Statement of Account / Passbook indicating the credits and debits to the account
4. ATM / Debit Card allowing specified free debits per month .
5. Interest on the balance maintained - rate of interest at the discretion of the bank
ADDITIONAL BENEFITS TO PREMIER ACCOUNTS OR TO ANY TYPE OF SAVINGS BANK ACCOUNT
These benefits are offered by individual banks either free or for a charge and bank may insist a minimum relationship
value either for savings bank account or for any other account maintained . Benefits vary from Bank to Bank
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FAQ ON kYC
Reserve Bank of Inda has clarified on some of the frequently asked questions on KYC ( Know your Customer ) guidelines . Please click here to read those answers