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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
Dated 16.01.2020 : Reserve Bank of India ( RBI ) has asked all banks and card issuers to disable all the cards issued by them which are never used for on-line transactions by March 16,2020 . However the facility to use the cards in ATMs and Point of Sales ( POS ) Devices will continue . The card issuers are also asked to review all other existing cards issued and decide whether to continue the facilities in the cards based on risk perception .
RBI has asked all card issuers to issue the new cards ( Fresh / RRe-issue ) enabling only ATM transactions and
POS transactions . However the cards issuers should give a facility to the customers to enable on-line transactions if they desire .
Additionally, the issuers shall provide to all cardholders the facilities to switch on / off and set / modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at PoS / ATMs / online transactions / contactless transactions, etc. The facility should be available on a 24x7 basis through multiple channels - mobile application / internet banking / ATMs / Interactive Voice Response (IVR) . Banks
should maje the facility available at all branches / offices . Banks should send alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.
For RBI Notification , CLICK HERE
BANKERS TO DO VIDEO IDENTIFICATION AND TAKE LIVE PICTURE OF CUSTOMER FOR E-KYC PURPOSE : RBI
DATED 10.01.2020 : Reserve Bank of India has amended Master Direction for KYC , vide their notification dated 09.01.2020 and advised bankers to obtain live pictures of customers for completing the E-KYC process . The notification has identified Digital KYC process as " capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the bank "
Further bankers can do video based customer identification process ( V-CIP ) for KYC verification . However all accounts opened through V-CIP shall be made operational only after being subject to concurrent audit, to ensure the integrity of process.
Bankers have to ensure that the process is a seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt. Bankers shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations. Banks can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification. Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.
Bankers shall ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP and the identification details in Aadhaar/PAN shall match with the details provided by the customer.
As per the notification , customers have to furnish copy of any of the OVD document containing address and identity proofs along with recent photograph .
“Officially Valid Document” (OVD) will mean
a. the Aadhaar number where he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or he decides to submit his Aadhaar number voluntarily to a banking company or any reporting entity notified under first proviso to sub-section (1) of section 11A of the PML Act; or
b. the proof of possession of Aadhaar number where offline verification can be carried out; or
c. the proof of possession of Aadhaar number where offline verification cannot be carried out or
d. any Officially Valid Document (OVD) or the equivalent e-document thereof containing the details of his identity and address; and
such other documents including in respect of the nature of business and financial status of the client, or the equivalent e-documents thereof as may be required by the banker.
1. Passport,
2. Driving licence
3.Proof of possession of Aadhaar number
4. Voter's Identity Card issued by the Election Commission of India
5. Job card issued by NREGA duly signed by an officer of the State Government and letter issued by the
National Population Register containing details of name and address.
Provided that,
a. where the customer submits his proof of possession of Aadhaar number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India.
b. where the OVD furnished by the customer does not have updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:-
i. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
ii. property or Municipal tax receipt;
iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector
Undertakings, if they contain the address;
iv. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
f. the Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962
.Where a customer has provided his Aadhaar number as above for identification and wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Banker .
Where customer has provided PAN card , Banker shall capture a clear image of PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer. The PAN details shall be verified from the database of the issuing authority
As the notification contains various amendments to the KYC process , one may know all the amendments carried out by RBI through Notification dated 09.01.2020 , by CLICKNIG HERE
DATED 10.01.2020 : Reserve Bank of India has amended Master Direction for KYC , vide their notification dated 09.01.2020 and advised bankers to obtain live pictures of customers for completing the E-KYC process . The notification has identified Digital KYC process as " capturing live photo of the customer and officially valid document or the proof of possession of Aadhaar, where offline verification cannot be carried out, along with the latitude and longitude of the location where such live photo is being taken by an authorised officer of the bank "
Further bankers can do video based customer identification process ( V-CIP ) for KYC verification . However all accounts opened through V-CIP shall be made operational only after being subject to concurrent audit, to ensure the integrity of process.
Bankers have to ensure that the process is a seamless, real-time, secured, end-to-end encrypted audiovisual interaction with the customer and the quality of the communication is adequate to allow identification of the customer beyond doubt. Bankers shall carry out the liveliness check in order to guard against spoofing and such other fraudulent manipulations. Banks can use either OTP based Aadhaar e-KYC authentication or Offline Verification of Aadhaar for identification. Further, services of Business Correspondents (BCs) may be used by banks for aiding the V-CIP.
Bankers shall ensure that photograph of the customer in the Aadhaar/PAN details matches with the customer undertaking the V-CIP and the identification details in Aadhaar/PAN shall match with the details provided by the customer.
As per the notification , customers have to furnish copy of any of the OVD document containing address and identity proofs along with recent photograph .
“Officially Valid Document” (OVD) will mean
a. the Aadhaar number where he is desirous of receiving any benefit or subsidy under any scheme notified under section 7 of the Aadhaar (Targeted Delivery of Financial and Other subsidies, Benefits and Services) Act, 2016 (18 of 2016); or he decides to submit his Aadhaar number voluntarily to a banking company or any reporting entity notified under first proviso to sub-section (1) of section 11A of the PML Act; or
b. the proof of possession of Aadhaar number where offline verification can be carried out; or
c. the proof of possession of Aadhaar number where offline verification cannot be carried out or
d. any Officially Valid Document (OVD) or the equivalent e-document thereof containing the details of his identity and address; and
such other documents including in respect of the nature of business and financial status of the client, or the equivalent e-documents thereof as may be required by the banker.
1. Passport,
2. Driving licence
3.Proof of possession of Aadhaar number
4. Voter's Identity Card issued by the Election Commission of India
5. Job card issued by NREGA duly signed by an officer of the State Government and letter issued by the
National Population Register containing details of name and address.
Provided that,
a. where the customer submits his proof of possession of Aadhaar number as an OVD, he may submit it in such form as are issued by the Unique Identification Authority of India.
b. where the OVD furnished by the customer does not have updated address, the following documents shall be deemed to be OVDs for the limited purpose of proof of address:-
i. utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
ii. property or Municipal tax receipt;
iii. pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector
Undertakings, if they contain the address;
iv. letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation;
f. the Permanent Account Number or the equivalent e-document thereof or Form No. 60 as defined in Income-tax Rules, 1962
.Where a customer has provided his Aadhaar number as above for identification and wants to provide a current address, different from the address as per the identity information available in the Central Identities Data Repository, he may give a self-declaration to that effect to the Banker .
Where customer has provided PAN card , Banker shall capture a clear image of PAN card to be displayed by the customer during the process, except in cases where e-PAN is provided by the customer. The PAN details shall be verified from the database of the issuing authority
As the notification contains various amendments to the KYC process , one may know all the amendments carried out by RBI through Notification dated 09.01.2020 , by CLICKNIG HERE
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 .
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 .
- BANKS CAN NOW ACCEPT CURRENT ADDRESS OTHER THAN IN AADHAAR
- Dated 14.11.2019 : As per Gazette notification dated 13.11.2019 , new current address , other than recorded in the Aadhaar card may be provided to authorities by way of self declaration .
- People who migrate to new places on taking up jobs were finding it difficult to open banking accounts as their address in Aadhaar card would be of their permanent residence in their native place and the current address will not match that in Aadhaar card . The rule change will help such persons to open bank accounts in their new places of work by providing current address by self declaration and banks can record current address and communication can be done to the current address .
The changes in rules have been made by amending the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 .
For Gazette Notification dated 13.11.2019 , CLICK HERE
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 )
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
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 .
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 .
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
“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
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
“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.
DATED 27.09.2018 : Reserve Bank of India had Aadhaar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued by them on 20.04.2018 . The direction issued was subject to final outcome of the pending cases in the supreme court with regard to validity of Aadhaar and instructions issued by Central Government / Reserve Bank of India . ( For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE ) .
Now Supreme Court has given the verdict that it is not mandatory to obtain Aadhaar card for opening bank accounts , as the instructions given by the government are not backed by any law . Hence master circular will need amendment now . As a result of court decision , linking of Aadhaar to bank accounts will also not be compulsory . However customers may furnish Aadhaar as an identity proof / address proof like any other OVD ( Official Valid Document ) . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Some of the questions that arise after the verdict are
1. What will be the fate of the accounts that are already linked ?
2. Whether customers , who are not DBT beneficiaries can demand un-linking ?
3. As supreme court says linking was not mandated by law as a reason for striking it down , whether government will enact another law making aadhaar linking mandatory ?
So far , we are yet to hear the government plans in response to court verdict .
We hope Reserve Bank of India will issue fresh guidelines / master guidelines clarifying various issues involved as a result of supreme court verdict and it will be made clear for both banker sand customers for easy transactions.
NEW BLOG ARTICLE ON
HEALTH INSURANCE OPTIONS FOR RETIRED BANKERS
The article explores the alternative avenues for existing health insurance group policy for Retired Bankers
TO READ THE ARTICLE CLICK HERE
HEALTH INSURANCE OPTIONS FOR RETIRED BANKERS
The article explores the alternative avenues for existing health insurance group policy for Retired Bankers
TO READ THE ARTICLE CLICK HERE
BIO-METRIC VERIFICATION RELAXED FOR OLD AGED AND INJURED FOR OPENING BANK ACCOUNTS
21.05.2018 : Finance Ministry , Government of India , through a gazette notification on 16.05.2018 , relaxed rules for bio-metric verification of the identity for opening bank accounts in case the persons are unable to offer bio metric verification due to injury , illness or infirmity due to old age or otherwise . In such cases banks will not be able to verify the identity on the basis of aadhaar card they hold . Such persons can now provide alternate proofs of identity to open bank accounts and to continue banking operations without difficulty .
For Gazette Notification , CLICK HERE
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AS PER NEW KYC GUIDELINES OF RBI
DATED 22.04.2018 : Reserve Bank of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued on 20.04.2018 .
The requirement will not apply to Non- Residents , Residents of Assam , Meghalaya and Jammu & Kashmir . Along with Aadhaar number , one has to furnish PAN number or Form 60 . They have to submit çertified copy of Official Valid Document ( OVD ) containing details of identity and address along with their recent photograph . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
At the time of receipt of Aadhaar card , banks will complete e-KYC authentication either using biometrics or OTP . If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months .
Small accounts can be opened without Aadhar / PAN with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
The instructions issued by RBI are subject to final decision to be given by supreme court on the matter of Aadhaar
For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE
DATED 22.04.2018 : Reserve Bank of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. as per the amended master direction issued on 20.04.2018 .
The requirement will not apply to Non- Residents , Residents of Assam , Meghalaya and Jammu & Kashmir . Along with Aadhaar number , one has to furnish PAN number or Form 60 . They have to submit çertified copy of Official Valid Document ( OVD ) containing details of identity and address along with their recent photograph . OVD includes Passport , Driving licence , Voter's ID , Job card issued by NREGA and letter issued by National Population Registry .
Banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
At the time of receipt of Aadhaar card , banks will complete e-KYC authentication either using biometrics or OTP . If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months .
Small accounts can be opened without Aadhar / PAN with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
The instructions issued by RBI are subject to final decision to be given by supreme court on the matter of Aadhaar
For RBI Master Direction on KYC updated on 20.04.2018 , CLICK HERE
BANKS TO VERIFY COPIES OF DOCUMENTS PRESENTED WITH ORIGINALS
Dated 23.10.2017 : Government has instructed banks and other financial institutions , through a Gazette notification , to verify copies of documents produced with originals and to record the same on the copy by the authorised officers . Hence customers , for the purpose of identity proof and address proof , have to produce original documents to the bankers and financial institutions along with copies of the documents . Bankers may return the originals after making note on the copies of the verification done .
Further Gazette notification permits banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
For the relevant gazette notification . CLICK HERE
.
Dated 23.10.2017 : Government has instructed banks and other financial institutions , through a Gazette notification , to verify copies of documents produced with originals and to record the same on the copy by the authorised officers . Hence customers , for the purpose of identity proof and address proof , have to produce original documents to the bankers and financial institutions along with copies of the documents . Bankers may return the originals after making note on the copies of the verification done .
Further Gazette notification permits banks to accept any of the following documents in cases where valid documents do not contain updated addresses for the limited purpose of address proof :
(a) utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water bill);
(b) property or Municipal tax receipt;
(c) pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
(d) letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation; Provided further that the client shall submit updated officially valid document with current address within a period of three months of submitting the above documents.”.
For the relevant gazette notification . CLICK HERE
.
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
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
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
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 .
Finally you decide which accounts to keep and which are the accounts can be closed / shifted .
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 .
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AND TRANSACTIONS ABOVE RS 50,000
DATED 17.06.2017 : Government of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. Those who have already bank accounts have to link them with their Aadhar numbers before 31st , Dec , 2017 , failing which accounts will become invalid .
If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months . Small accounts can be opened without Aadhar with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
These rules are made effective through an amendment to The Prevention of Money Laundering ( Maintenance of Records ) Rules of 2005 .
NOTE :
1. Reports do not indicate effects of these amendments to opening and operation of Non Resident accounts in Banks
2. While PAN Number or Form 60 was necessary for conducting transactions above Rs 50, 000 earlier , now Aadhar is required in lieu .
3. With linking of Aadhar , PAN and Bank accounts , it will be easy to monitor high value financial transactions for the government .
DATED 17.06.2017 : Government of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. Those who have already bank accounts have to link them with their Aadhar numbers before 31st , Dec , 2017 , failing which accounts will become invalid .
If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months . Small accounts can be opened without Aadhar with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
These rules are made effective through an amendment to The Prevention of Money Laundering ( Maintenance of Records ) Rules of 2005 .
NOTE :
1. Reports do not indicate effects of these amendments to opening and operation of Non Resident accounts in Banks
2. While PAN Number or Form 60 was necessary for conducting transactions above Rs 50, 000 earlier , now Aadhar is required in lieu .
3. With linking of Aadhar , PAN and Bank accounts , it will be easy to monitor high value financial transactions for the government .
Savings Bank 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 .
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
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 .
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
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
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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
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
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
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. 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
- The bank shall obtain a self-attested photograph from the customer.
- 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.
- 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.
- 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.
- 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.
- The entire relaxation provisions shall be reviewed after twenty four months.
- 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.
- 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.
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
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
- 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.
- 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”.
- 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:
- 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;
- Letter issued by a gazette officer, with a duly attested photograph of the person.
- Interest on deposit.
- Accidental insurance cover of Rs.1.00 lac
- No minimum balance required.
- Life insurance cover of Rs.30,000/-
- Easy Transfer of money across India
- Beneficiaries of Government Schemes will get Direct Benefit Transfer in these accounts.
- After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
- Access to Pension, insurance products.
- Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
- 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 .