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 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 

 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  .  
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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  

 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  . 

   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 . 

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 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 

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  

 

AVOID PAYING MINIMUM BALANCE CHARGES 

Dated 26.11.2019 :   As per  media reports  , Public Sector banks  collected   whooping Rs 1900 crores as Minimum Balance Charges   from their customers  in FY 2018- 19 for not maintaining minimum balances in their Savings Bank (  SB ) accounts  .  It is reported that   it was revealed in parliament recently .  

Banks collect minimum balance charges , if  a agreed minimum  balance is not maintained  by the customers in their savings bank accounts .  Different types of account require different    minimum balance  to be maintained and  the rules  should be  advised  by the bank to the customer at the time of opening accounts  . Banks also  change the terms of conditions of maintaining accounts frequently and may vary such  amount periodically  .  Hence  customers  have to be aware  of the latest rules governing their accounts and it is the duty of the banks  to inform the customers about  the changes in rules made by them .  Yet  people do not maintain required minimum balance ending up paying  minimum balance charges quarter after quarter  . 

REASONS FOR NOT MAINTAINING  MINIMUM BALANCE  

1. Customers   may be totally ignorant of the rules , terms and conditions  of the savings bank accounts maintained by them  .  As charges  like minimum balance charges  was  not levied earlier  , debits  in their accounts  now come as  a surprise .

2. In recent years  , large number of accounts have been opened by the common people especially rural mass   . They may be unaware of the rules and periodic charges or  they have not  been  informed properly by their bankers  . 

3. Even with knowledge  , they may not have enough financial means to maintain the minimum level required  due to poverty , unemployment  or under-employment  . 

4.   Customers   may be having number of accounts   in different banks  , opened  in  different times  for various purposes  .  As  there was no minimum balance charges  levied earlier   , they would have continued such accounts with low balance and low activity  . Now   they are made to pay for such accounts  .    

HOW TO AVOID PAYMENT OF MINIMUM BALANCE CHARGES  ?   

1.  Review all your savings bank accounts  . 
2. Learn the rules , terms and conditions governing them .  websites  of banks would have a page  for services charges where  it would contain  various services charges levied and minimum balance required for each type of account  with  list of penalties levied .  For example  State Bank of  India  customers  can find the charges Here 
3.   If you are having multiple accounts  , check  having all such accounts necessary ? 
4.  If there is low activity  or in dormant status in any account  , close such accounts not required and transfer the balances  to the operative accounts   . You  will increase the balance  in remaining accounts  . 
5. If you  have premium account which requires higher balance   ,   weigh  the pros and cons of   having such accounts   . Whether the additional benefits offered by premium accounts are  really required by you ? Whether  you are using such benefits and the value of such benefits   . If    you do not require  additional benefits , you may downgrade the account to normal account to avoid higher minimum balance . 
6.  Compare  the minimum balance  limits set by different banks and opt  for a bank account which requires the least  . 

However remember not  to put all eggs in one basket  and  keep   more than  one account  . Depending on a  single bank  for all your   needs  is a risky proposition   .    Remember PMC Bank where customers   who had deposited  all their money   suffered   due  to problems  with the bank  .  Your bank may be safe  now ,  you may not be able to get the required  services at the required time . May be technically issues crop up or your accounts are hacked . So  maintain   more than one account and spread your risk . 

1.   BANKS CAN NOW ACCEPT  CURRENT ADDRESS OTHER THAN IN AADHAAR 
2. 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 . 


3. 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 
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 SPECIAL BANKING  FACILITIES TO BE MADE AVAILABLE  FOR SENIORS AND  DIFFERENTLY ABLED :

As per    Reserve Bank of India  notification dated  09.11 2017 , all scheduled banks  are expected  to extend additional facilities to their customers   who are senior citizens or differently abled persons  . The special facilities    include   'Door Step Banking ' to senior citizens  of  more than 70 years and differently abled persons by providing basic facilities of  pick up / delivery of cash , Financial instruments etc .   and   Dedicated counters for senior citizens / differently abled persons    . 

The other facilities  expected to be provided by the banks are 
 
1.  Accept Life certificates  in any branch and update the status in the receiving branch itself : Banks have to make necessary changes  in their  Core Banking systems 
2. Banks to issue minimum of 25 cheque leaves every year  free of charge  , without insisting on customer presence .  
3. Banks to change status of account automatically  on reaching of the age   as per KYC submitted 
4. Banks to allow operations of accounts by visually impaired persons  with the help of two independent witnesses and authorisation 
5. Banks to provide 15G/15H forms  to enable the customers submit the same 

Banks  were  advised  by RBI to implement the directions before 31.12.2017 .  (  ​For RBI Notification ,   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 

BANK ACCOUNT OPENING MADE SIMPLE  

DATED  31.05.2019 :     If you  are an Aadhaar  card holder and if you are willing for bio-metric verification of your  Aadhaar number , you need not submit any other document  including your photograph  for opening an account with  a bank  .    However you may have to submit  a copy of your PAN CARD   or Form 60  along with your application .

Reserve Bank  of India  has amended  Master Direction  for KYC  , vide their notification dated  29.05.2019  and  the procedure for opening account   is made simple  .  Even if you  do not want to share your Aadhaar number with your bank  , you may submit  any one of  the following  OVD ( Officially Valid Document  )   which contain  address proof  along with   your recent photograph  and copy of PAN CARD  / FORM 60 .  

1.  Passport,
2. Driving  licence 
3.  Voter's Identity Card issued by the Election Commission of India
4. 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.

In case your OVD does not contain  your address proof , you may submit any of the following    along with the OVD . 

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;

You may go through the related  news below for further information . 
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AADHAAR  WILL BE ONE OF   THE  OVD FOR  ADDRESS PROOF / IDENTIFICATIN   FOR KYC PURPOSE  : RBI  

DATED  30.05.2019 :     Reserve Bank  of India  has amended  Master Direction  for KYC  , vide their notification dated  29.05.2019  and Aadhaar Number  is added to  OVD documents list ( Officially Valid Document  ) for verifying KYC .  The notification bifurcates    the customers to two types   is DBT ( Direct benefit Transfer  )  Beneficiaries and others . 

As per the notification   , Non DBT  customers have to furnish copy of any of the OVD document   containing address and identity proofs along  with   recent photograph  .  Hence  bio-metric authentication of aadhaar  will not be necessary  
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“Officially Valid Document” (OVD) means 

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;

. The customer shall submit OVD with current address within a period of  three months of submitting the documents specified at ‘b’ above

 However for DBT  beneficiaries , notification says    "  For individual 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, the bank shall obtain the customers Aadhaar and may carry out its e-KYC authentication based on his declaration that he is desirous of receiving benefit/subsidy under the Aadhaar Act, 2016. (Section 16 of the amended MD)  " 

Hence banks  will have to complete bio metric authentication of  Aadhaar  of DBT beneficiaries .   

As per amended  direction of RBI  ,for opening of bank accounts , Banks  have to obtain the following from an individual 
(a) a certified copy of any OVD containing details of his identity and address
(b) one recent photograph
(c) the Permanent Account Number or Form No. 60 as defined in Income-tax Rules, 1962, and
(d) such other documents pertaining to the nature of business or financial
status specified by the banks  in their KYC policy.     
 Banks may carry out Aadhaar authentication/ offline-verification of an individual who voluntarily uses his Aadhaar number for identification purpose. . In cases where successful authentication has been carried out, other OVD and photograph need not be submitted by the customer. 


For RBI Notification dated 29.05.2019  , CLICK HERE  
​Amended Master Direction on KYC  updated on 29.05.2019  , 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.  

 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 ​

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 

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 ​  

 .

Documents Required to Open an Account 

For  Simple   Savings Bank a/c  with  complete  KYC formalities
1. IDENTITY PROOF  . 

AADHAR CARD   IS  MUST FOR OPENING SB ACCOUNTS  
Any one of the following 
(i) Passport 
(ii) PAN card
(iii) Voter's Identity Card
(iv) Driving licence
(v) Identity card (subject to the bank's satisfaction)
(vi) Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank
2. ADDRESS PROOF 
Any one of the following
(i) Telephone bill 
(ii) Bank account statement
(iii) Letter from any recognized public authority
(iv) Electricity bill
(v) Ration card
(vi) Letter from employer (subject to satisfaction of the bank)
(any one document which provides customer information to the satisfaction of the bank will suffice)

3. Self Attested Photograph  
Two copies of attested Passport size  Photograph  along with Full Signature / Thumb Impression 

For  Basic  Savings Bank a/c  with  limited   KYC formalities  
 If an individual is unable to provide  the KYC  documents to the satisfaction of bank  , Bank may open a Basic Savings Bank  account with following restrictions on operations 
 

•       Value of all credits during the financial year not to exceed  Rs.1,00,000, 
•       Day end account balance  not to exceed Rs.50,000

    However   Self Attested Photograph    is  to be provided 
3.  For    Premier Savings Bank a/cs carrying additional features  which also involve additional charges /  specified minimum balances ,Documents  required are the same as     for Simple Savings Bank Accounts. However  Banks may need    additional Income proof   , or relatioships    of minimum value   for opening such premier  accounts 

   REVIEW YOUR SAVINGS BANK ACCOUNTS  

Dated  21.08.2017  :   Recently we have received news reports regarding  savings bank account . One news indicates reduction   of interest rate  by various banks   (  CLICK HERE FOR THE NEWS )  as a follow up of  reduction of REPO rates by  Reserve Bank of India  recently . Other news indicates   indicates increasing of service charges and minimum balances  by banks  . For example go to the website of leading public sector bank   State Bank of India  by CLICKING HERE    .  You can find the revised charges  effective from 24.07.2017 .   It is also reported in news papers  that SBI has collected  more than Rs 235 crores as penalty for non - maintenance of minimum balances  during the first quarter ending June , 2017 .  You may visit  websites of your bankers to check whether any similar measures are taken by your bank . (  For link to websites of various banks  ,  CLICK HERE   .  

In order  not to  ending  up paying   unnecessary charges and penalties to  bankers  for non - maintenance of minimum balances  , we suggest to review your   savings bank ( SB ) accounts  with various banks  and decide whether you can reduce number of accounts if you are having more than one account or  convert your existing accounts in to simple accounts  which attract lesser charges . 

1. Normally account opening charges are free while there would be account closing charges . 

2. Banks usually charge for account maintenance  , cheque book issue , debit card issue / maintenance , cash handling charges ,  ATM charges ,  NEFT/ RTGS charges  etc . Further there will be charges for exceeding free transactions allowed  in various segments  like cash  withdrawal ,  ATM transaction ,  number of total transactions allowed . There will be also penalties for not maintaining stipulated minimum balances . 

3. If you review your statement of accounts / passbooks  from various banks , the total charges paid by you may be substantial . 

4. If you are having more than one account   , check whether you require all the accounts  . Some may be redundant  and might be used  rarely and substantial charges would have been debited to those accounts .  It may be better to close those accounts and   transactions  diverted to other accounts . 

5. Some accounts may be premier accounts which  attract higher charges and  very high  minimum balance  , but with  many   facilities like free cheque collection ,  overseas transactions  / assistance  ,  relationship managers  etc . If you review  your account , you might not have required or used most of those services  . But your account would have been debited higher charges .   You may review  and find out whether you really require such accounts  .   If not required , you may downgrade the account with lesser charges  . 

6. If you close and merge some of the accounts , your balance  would become higher  without attracting penalties for not maintaining  minimum balance . 

7. There are banks paying  higher  interest rates  than the 3.5 % pa received from some . If you are maintaining higher balance  in your present  SB account   with low  interest rate  ,  you may shift it to the higher paying bank .  

8 . Charges may be saved on some of the transactions if we shift  them to cheaper mode . For example    making payment by RTGS/ NEFT   , especially bill payments like telephone,  mobiles ,  electricity etc ,may be cheaper than issuing cheques . 
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​Finally   you decide which accounts to keep  and which are the accounts can be closed  / shifted . 

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 . 
 ​

Savings Bank accounts 

 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 . 

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BENEFITS OF  SAVINGS BANK ACCOUNT 

  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 

SERVICE CHARGES IN BANKS 

Banks do levy various service charges on the accounts one maintains .There is no free lunch .  It is better to know what charges banks levy before opening accounts . Service charges and    charges for non maintenance of minimum balance  vary from bank to bank and among types of accounts.   If you visit  websites of commercial banks , you will get links to service charges they levy . Read them , compare them and then decide  what type of account with which bank you want to open , depending up on your requirements . Below you can get the list of websites of each commercial bank in India . Reserve Bank of India has  published      a page   giving details of courier/postal charges   that are levied by commercial  banks  and for the  link click   Here    .  The charges levied by the banks are liable  to be changed  at the discretion of the banks  and hence  have a look at their websites to   know the latest charges . 

NEWS ALERT :  State Bank of India has revised  upwards   its charges and minimum balance requirement effective from 24.07.2017   . . details of which you may know by  CLICKING   HERE  . It is reported in media that SBI has collected  Rs 235 crores as penalty from its customers for non - maintenance of minimum balances during the first quarter endin June , 2017 . 

COMMERCIAL BANKS IN INDIA WITH WEBSITES 

Many commercial Banks in India have their websites  giving details  of products    and allowing online transactions  for their customers .   For the list of such banks  with link to their websites , click here   
NEW ADDITIONS TO COMMERCIAL BANKS  IN INDIA  :IDFC   gets RBI approval for  starting banking operations  on  23.07.2015 .  
It is expected that  the new bank  , IDFC Bank Ltd , would start operations from Oct 1, 2015 with 20  branches .   In June 2015 ,  Bandhan  Financial Services had obtained similar licence from Reserve Bank of India   and it is expected that their Banking operations would commence in fourth week of August , 2015 . 

New  restricted   business banks  called Payment banks  are given licence on 11.08.2015  by RBI . For details CLICK HERE .
New licences for Small Finance Banks have been issued by RBI . For details  ,  CLICK HERE 

Cake for the Future

HAVE CAKE AND EAT IT TOO 



Plan your Expenses and Credit Card use , Tweak your Bank Accounts 
 and   Earn Extra Income 

Click Here to read   HAVE CAKE AND EAT IT 

CLICK HERE TO READ      TAX ON RETIREMENT
                                                   MORE THAN 2000 VIEWS   IN ITS FIRST WEEK OF PUBLICATION  
     ARTICLE ON     TAX PLANNING        FOR FY 2018-19 RELEASED 
                                               CLICK HERE TO READ ​

WHAT IS NEW ON PLAN N PROGRESS ?      ​

Tips for  opening of  Accounts

1.  Find   a  branch of  a scheduled bank   near by to your  residence / office . Opening an account nearby helps you in  taking a  safe deposit locker facility  for depositing valuables  as you will not be required to carry   valuables for a  long distance unsecured . 
2. Carry    Passport size photos of your self , photo copies of  KYC  documents required  along with originals for verification purpose to enable the bank branch for quick disposal . 
3. Nomination facilities would be available   for the accounts to be opened . You make  a nomination for the account     so that  it will be easy for bank to   to transfer the balance available in case of any misfortune .
4.  Normally  banks encourage you to open  a premier account  with them  , indicating various free services   available for such accounts . Please note that there is no free lunch . Such premier accounts come with requirement of  higher minimum balance , say , keeping a minimum balance of Rs 50,000/-  . Such  minimum balance of Rs 50,000 /_ will cost you  an interest loss of Rs 2,500/- pa , being the interest differential   between the Fixed deposit interest rate  and  Savings bank account interest  is the cost you are paying   for such free services .  Hence weigh cost and rewards and  ponder whether any of such free services you are going to utilise or not and cost of the same . In case  you require those additional services  , go for  a premier account .  Otherwise simple   Savings Bank account would suffice 

 Tips for secured use of debit cards 

Now  a  days , all SB A/C holders are provided with  a Debit card   and  a pin  code for secured  use .  These cards can be used for  withdrawal of cash from ATM,   Making payment at  shopping establishments and internet purchases . Here   is a list of safety precautions : 
1.     Sign the signature panel on the back of your card as soon as you get .
2      Never keep your PIN code in the same place as your card
3      Keep your account number private
4.     Make sure your devices and networks are secure
5.     Shop online only on trusted web sites  
6.      Keep your passwords secret
7.     Have  a tab on your account . Check often   

GUARD YOUR A/C AGAINST PHISHING AND MALWARE 

In the modern days of Digital banking , one must be aware of Risks emanating from Phishing and malwares on their  accounts . 

Phishing is an attempt by fraudsters to cull out or "Fish "out  your personal and confidential information like User ID , Password etc through e-mails . This  data is then used to make unauthorised transaction in your account . Phishing e-mails or websites  try to make you believe  that the sender is genuine official websites of banks  or government agencies . 

Malware is a software used by fraudsters to obtain sensitive information or gain access to computer system .  They may come by way of  links shared on SMS or other applications like whatsapp , asking you to download  some  updates , security patch or certificate   , which appears authentic . 

 To safeguard yourselves from Phishing attempts or Malwares , 

1. Do not click on the links directly . Instead type the authentic website names . 
2. Please transact only on HTTPS  websites which are secure . Do not open attchment on e-mails sent by unknown people . 
3. Always down load applications from  official app stores . 
4. Install and activate personal Firewalls on your computer . 
5. ensure your anti virus and anti spyware applications are up dated regularly . 


HAVE A SAFE BANKING 

SMALL ACCOUNTS 

As per Reserve Bank of India Notification , a SMALL ACCOUNT  is a savings account where  

1. Aggregate of  all credits in a year does not exceed Rs 1 lakh in a financial year 
2. The aggregate of all debits and withdrawals does not exceed Rs 10,000 per month 
3. The balance at any point o time does not exceed Rs 50,000 . 

These accounts can be opened without mandatory documents like Address proof , Identity proof etc .  However  such accounts will be held   operational initially for 12 months during which required KYC  documents are to be produced  . 

Terms &   Conditions for these accounts 

1. The bank shall obtain a self-attested photograph from the customer.
   
2. The designated officer of the bank certifies under his signature that the person opening the account has affixed his signature or thumb impression in his presence.
   
3. Such accounts are opened only at Core Banking Solution (CBS) linked branches or in a branch where it is possible to manually monitor and ensure that foreign remittances are not credited to the account.
   
4. Banks shall ensure that the stipulated monthly and annual limits on aggregate of transactions and balance requirements in such accounts are not breached, before a transaction is allowed to take place.
   
5. The account shall remain operational initially for a period of twelve months which can be extended for a further period of twelve months, provided the account holder applies and furnishes evidence of having applied for any of the OVDs during the first twelve months of the opening of the said account.
   
6. The entire relaxation provisions shall be reviewed after twenty four months.
   
7. The account shall be monitored and when there is suspicion of money laundering or financing of terrorism activities or other high risk scenarios, the identity of the customer shall be established through the production of an OVD and Permanent Account Number or Form No.60, as the case may be.
   
8. Foreign remittance shall not be allowed to be credited into the account unless the identity of the customer is fully established through the production of an OVD and Permanent Account Number or Form No.60, as the case may be.
   

           ​To view RBI NOTIFICATION ,  CLICK HERE 

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 

A SPECIAL NOTE ON  PMJDY  SCHEME   FOR ENSURING BANKING ACCESS TO EVERY HOUSEHOLD IN INDIA

Scheme Details

Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

Account can be opened in any bank branch or Business Correspondent (Bank Mitr) outlet. PMJDY accounts are being opened with Zero balance. However, if the account-holder wishes to get cheque book, he/she will have to fulfill minimum balance criteria.

Documents required to open an account under Pradhan Mantri Jan-Dhan Yojana

1. If Aadhaar Card/Aadhaar Number is available then no other documents is required. If address has changed, then a self certification of current address is sufficient.
2. If Aadhaar Card is not available, then any one of the following Officially Valid Documents (OVD) is required: Voter ID Card, Driving License, PAN Card, Passport & NREGA Card. If these documents also contain your address, it can serve both as “Proof of Identity and Address”.
3. If a person does not have any of the “officially valid documents” mentioned above, but it is categorized as ‘low risk' by the banks, then he/she can open a bank account by submitting any one of the following documents:
   1. Identity Card with applicant's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks and Public Financial Institutions;
   2. Letter issued by a gazette officer, with a duly attested photograph of the person.

Special Benefits under PMJDY Scheme

1. Interest on deposit.
2. Accidental insurance cover of Rs.1.00 lac
3. No minimum balance required.
4. Life insurance cover of Rs.30,000/-
5. Easy Transfer of money across India
6. Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
7. After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
8. Access to Pension, insurance products.
9. Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
10. Overdraft facility upto Rs.5000/- is available in only one account per household, preferably lady of the household.

banking news 

UNIFIED PAYMENT INTERFACE ,   a new interbank payment system has been developed by  National Payments  Corporation of India   ( NPCI )  and has been operationalised  . NPCI  launched on 31.08.2016  a pilot project called    Bharat Bill Payment  System   ( BBPS )   .  BBPS  is a payment system that facilitates Bill payments / Retail Payments   across India  .

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