PLAN  N MANAGE BANK ACCOUNTS 

  FOR NEWS ON DEMONETISTION AND NEW CURRENCY FEATURES  CLICK HERE  

FOR BANKING NEWS ,  CLICK HERE       FOR INCOME TAX NEWS   CLICK HERE 
​
  ALL ABOUT AADHAR  , CLICK HERE            INVESTMENT ALTERNATIVES FOR RETIREES    

​FINANCIAL PLANNING FOR YOUNG           HOW TO LINK AADHAR     WITH PAN , CLICK HERE 

BANK ACCOUNTS

TO KNOW BEST YIELDING FIXED DEPOSITS  , CLICK HERE   

  FOR LATEST BANKING NEWS   , CLICK HERE 

​New  Updated Article 
            
 TAX PLANNING FOR FY 2022-23 ( AY 2023-24 ) 
Comprehensive   Article on Income tax changes in Rules, Rates , Slabs , Rebates  and Estimation 

CLICK HERE TO READ ​

Savings Bank accounts 

RBI AMENDS ITS  INSTRUCTIONS ON KYC : 

Dated 18.10.2023 :  All banks are  expected to follow KYC rules set by Reserve Bank of India   before opening a customer account with them or during the maintenance of the account .  RBI had issued one such Master Direction on 25.02.2016 .  Subsequently RBI has made various  amendments to its instruction   . Once again on 17th October 2023 , RBI has made fresh amendments   .  
The amendments are as follows : 

(a) Update certain instructions considering amendments to the PML Rules vide Government notifications dated September 4, 2023 and October 17, 2023;
(b) Update Annex II of the MD considering the changes to Government of India Order related to Unlawful Activities (Prevention) Act (UAPA), 1967, vide corrigendum dated August 29, 2023;
(c) Update Annex III of the MD by replacing the Government of India Order dated January 30, 2023, related to Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (WMD Act, 2005) with the Government of India Order dated September 1, 2023 (which has been issued by the Government in suppression of the earlier WMD Act Order dated January 30, 2023), on the matter;
(d) Update certain instructions in accordance with the FATF Recommendations;
(e) Add a new Section 55A, on FCRA, in the MD on KYC; and
(f) Update certain other instructions post review.
The changes carried out in the MD in this regard are provided in Annexure.
Now amending those instruction  , RBI has issued fresh  direction and the Amended  direction  is to be followed by the banks .  
( CLICK HERE to read the latest amended Master Direction . )

NO SAVINGS BANK ACCOUNTS FOR THE GOVERNMENTS : RBI 

Dated 17.09.2022 :  Reserve Bank of India ( RBI )  made it clear now that no bank ,including   co-operative banks  , can open a  Savings Bank Account (  SB )     in the name of Government departments / bodies depending upon budgetary allocations for performance of their functions / Municipal Corporations or Municipal Committees / Panchayat Samitis / State Housing Boards / Water and Sewerage / Drainage Boards / State Text Book Publishing Corporations / Societies / Metropolitan Development Authority / State / District Level Housing Co-operative Societies, etc. or any political party or any trading/business or professional concern, whether such concern is a proprietary or a partnership firm or a company or an association and entities other than individuals, Karta of HUF, and organisations / agencies approved by the RBI . 

​  To read RBI Notification in this regard   , CLICK HERE 

Charges on Digital Payments

CHARGES LEVIED BY BANKS ON DIGITAL PAYMENTS 

Dated 22.08.2022 :  Now a days  in India ,  customers  can use   various  digital modes to make  transfer to an another account in the same bank    or   any other , payment of    merchant transactions   . Usually such transfers take place via   NEFT or RTGS for transfers   and Debit cards ,   credit cards    or wallets  for  all payments  .  Customers are charged  for the service rendered by the banks and other financial intermediaries . 
Now with a  view to streamline  charges   levied  on  payment systems in India , Reserve  Banks of India ( RBI )  has brought out a discussion paper   on    the issue and requests public to offer    their opinions on the various issues involved  with regard to the charges    .  

Presently RBI is not charging for the RTGS  transactions and wants    a  feedback on the issue of charging on it also     . Some of the specific questions posed by the  RBI on the   RTGS are  : 

1. Should RBI review the policy of not levying charges on members for RTGS transactions?
2. Should the time-variable charges be re-introduced?
3. For RTGS transactions, should RBI prescribe the charges that can be levied on customers by members, or should they be market driven?

Similarly  the discussion paper poses questions on various other modes    of Digital payment systems    . 

On NEFT  ,  RBI is charging following charges  : 

1. For transactions up to ₹10,000: ₹2.50/-;
2. For transactions above ₹10,000 up to ₹1 lakh: ₹5/-;
3. For transactions above ₹1 lakh and up to ₹2 lakhs: ₹15/-; and
4. For transactions above ₹2 lakhs: ₹25/-

The questions   asked by RBI on the issue  are  

​

1. Should RBI charge member banks for transactions processed through NEFT?
2. Should banks be permitted to charge customers for NEFT transactions, whether initiated online or otherwise?
3. Should RBI prescribe charges for NEFT transactions to be levied by banks on their customers, or should they be market driven?

CHARGES LEVIED BY BANKS ON DIGITAL PAYMENTS ​  ( Continued ) 

On the issue of charges    on Debit card payments , RBI has raised the following  issues : 

1. Should debit card transactions be charged as normal funds transfer transactions?
2. Should MDR for debit cards be uniform across merchants (irrespective of turnover)?
3. Should RBI regulate interchange for debit card transactions?
4. Should RBI deregulate MDR for debit card transactions and let stakeholders decide on optimum level of MDR and interchange?
5. Should MDR for debit cards be a percentage of the transaction value or should it be a fixed amount irrespective of the transaction value?
6. Should RuPay cards be treated differently from other debit cards affiliated to international card networks in terms of MDR?
7. Among the two options (waiving / reducing MDR, or giving incentive to cardholders), which is more effective for increasing use of digital payments?

Again on the issue   of charges   on CREDIT CARD PAYMENTS   , RBI has raised the following points : 

1. Are credit card MDR charges reasonable?
2. Should RBI regulate MDR for credit cards?
3. Instead of MDR, should RBI regulate interchange for credit card transactions?
4. Should RBI regulate both MDR and interchange for credit cards?

Similarly   RBI has posed questions on wallet payments , UPI etc     and you can go through the  following paragraph   about the qusetions posed    by RBI   .  One can also  read   the  discussion paper   , by clicking here   

You may send   Specific feedback by way of response to the above questions, including other inputs and suggestions relevant to the topic under discussion  through (email) on or before October 3, 2022.

Questions posed by RBI on other   payment methods : 

PPIs

Should RBI regulate MDR for PPI transactions?

Given that no credit is extended in case of PPIs, is it reasonable to charge high MDR (in sync with MDR levied on credit card transactions) for PPI transactions?

Should the charges structure for merchant payments done using PPIs be akin to that of debit cards?

Should charges for cash withdrawal using PPIs be regulated?

UPI

In the context of zero charges, is subsidising costs a more effective alternative?

If UPI transactions are charged, should MDR for them be a percentage of transaction value or should a fixed amount irrespective of the transaction value be levied?

If charges are introduced, should they be administered (say, by RBI) or be market determined?

Intermediaries

Should intermediaries be transparent in the way charges are levied by them?

Should the various charges levied by intermediaries be unbundled and charged separately?

Should these charges be subjected to regulation?

Surcharging

Are surcharges justified? Are they desirable?

Should merchants be allowed to levy surcharge on customers?

Should surcharging be regulated? By whom?

Convenience Fee

Should convenience fee be regulated? By whom?

Should such charges be the same irrespective of the number of seats / tickets booked?

Should such charges be based on value of a transaction?

Other Aspects

Should the levy of charges for a digital payment transaction be independent of the value of the transaction?

Should the levy of charges for a digital payment transaction be the same irrespective of the number of seats / tickets booked?

Should the levy of charges by merchants be marginal cost-based, meaning that only the additional costs incurred by them for facilitating a digital payment transaction should be recovered from the users?

Should the charges for digital payment transactions be market determined – based on demand and supply – without any regulatory or sovereign intervention?

What more transparency could be brought in for such charges?

RBI ASKS  BANKS TO ROLL OUT ICCW SCHEME FOR CARDLESS CASH WITHDRAWAL : 

Dated  20.05.2022 :  Reserve Bank of India ( RBI )  asked all banks /  ATM operators /  White Label ATM operators  to provide options to their customers  to withdraw cash   , without using cards ,   from their ATM networks  . Cash should be made available   from ATMs  of  any  member organization . 

RBI has asked    NPCI to facilitate Unified Payments Interface (UPI) integration with all banks and ATM networks. While UPI would be used for customer authorisation in such transactions, settlement would be through the National Financial Switch (NFS) / ATM networks. The on-us / off-us ICCW transactions shall be processed without levy of any charges other than those prescribed for other payments . Withdrawal limits for ICCW transactions shall be in-line with the limits for regular on-us / off-us ATM withdrawals.  

​To read RBI Notification in this regard  , CLICK HERE 

  INTEROPERABLE CARDLESS CASH WITHDRAWAL   ( ICCW ) AT ATMS   
Withdraw cash  without a Debit / credit card 

Dated 08.04.2022 :  Some banks are    offering Card-less cash withdrawal through ATMs for their customers at their own ATM  . 

The absence of need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning, device tampering, etc. To encourage card-less cash withdrawal facility across all banks and all ATM networks / operators,  RBI has  proposed now a  system that enables customer authorisation    of cash withdrawal  from an ATM  through the use of Unified Payments Interface (UPI)  . 
With the help of the new proposed plan ,   a bank customer can withdraw cash from an ATM without  using his debit / credit card  . 

RBI will come out with detailed  scheme shortly 

Refer : RBI Statement dated 08.04.2022 

---

KYC UPDATATION IS NOT MANDATORY FOR THE PRESENT :  RBI 

UPDATE  Dated 31.12.2021     :    The deadline is extended up to 31.03.2022 by RBI now  . 
​
Dated 06.05.2021 : Banks  are expected to conduct KYC updation of their account holders  periodically and they may  stop or restrict the operations of an account , if  they are unable to  review present KYC status  of the account holders . 

Now Reserve Bank of India ( RBI )  , keeping in view of  present conditions prevalent in the  country , has asked the banks and other financial  institutions   not to restrict the operations in any account till 31st, December  2021   for  the sake of  non-compliance of KYC updation  as on date . 

However  banks  may restrict operations in an account on the orders of  regulating authorities , enforcement agencies or courts of law   . 

​To  read the RBI Notification  , CLICK HERE

 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 . 

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 . 

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 

LATEST GUIDELINES  ON KYC FOR OPENING ACCOUNTS WITH BANKS 
​
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  

 

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 . 
​

 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  ) 
 

AVOID PAYING MINIMUM BALANCE CHARGES 

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 . 

 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 ​

   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 . 
​ 
​Finally   you decide which accounts to keep  and which are the accounts can be closed  / shifted . 

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.