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FINANCIAL NEWSÂ OF 2017-18Â
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Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and EstimationÂ
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                                    NEW  ARTICLES ON  Â
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 SMALL FINANCE BANKS                                     PAYMENT  BANKS   Â
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UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
     BHIM APP                                                AADHAR  Â
                              e-INSURANCE  Account (  eIA  ) Â
 ARTICLE ONÂ
         TAX PLANNING FOR FY 2019-20 ( AY 2020-21 )Â
Comprehensive  Article on Income tax changes in Rules, Rates , Slabs , Rebates  and EstimationÂ
CLICK HERE TO READÂ
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FINANCIAL NEWS AND UPDATES OF 2017-18
RBIÂ Â REPORT SUGGESTSÂ DISMAL PERFORMANCEÂ OF INDIAN BANKING INDUSTRYÂ IN FY 2017-18Â Â
DATED 31 .12.2018 :       Recently published Report on Banking by Reserve Bank of India depicts gloomy picture of Indian Banking Industry   in Fy 2017-18 with staggering losses  combined with  poor growth of banking business  while picturing high growth of NPAs during the year and rural banking facilities shrank .Â
 Banks in India   made a combined net loss of Rs 324 Billion  during the Fy 2017-18 , plunging from the previous year profit of Rs 439 billion .  Total deposits from public for the Indian banking system grew just 6.1 % from Rs 111,114 Billions to Rs 117,940 billion in the Financial year April 17 to March 18 ( Corresponding growth rate was 10.1% in previous year )   However  Total  advances  of the Indian banking system grew  better at 7.8 % from Rs 111,114 Billions to Rs 117,940 billion in the Financial year April 17 to March 18 ( Corresponding growth rate was  2.8 % in previous year )  ​.Â
Gross non-performing assets ( NPA )  rose  31.3 % from Rs 7,918 billion to Rs 10,397 billion during the year .
 Net non-performing assets ( NPA )  rose  20.2 % from Rs 4,331 billion to Rs 5,207 billion during the year .Â
  Industrial advances grew abysmal  0.7 %  from Rs 26,798 billion to Rs 26,993 billion during the year .
  Agricultural Advances grew just  3.8 % from Rs 9,924 billion to Rs 10,302 billion during the year . Â
The number of banking outlets in villages also got reduced from 598,093 to 569,547 during the period .Â
(  1 billion = 100 CRORES ) . Â
For the overall glance of the RBI report , CLICK HEREÂ
For the RBI Report on Trend and Progress in Banking in India 2017-18 , CLICK HERE
DATED 31 .12.2018 :       Recently published Report on Banking by Reserve Bank of India depicts gloomy picture of Indian Banking Industry   in Fy 2017-18 with staggering losses  combined with  poor growth of banking business  while picturing high growth of NPAs during the year and rural banking facilities shrank .Â
 Banks in India   made a combined net loss of Rs 324 Billion  during the Fy 2017-18 , plunging from the previous year profit of Rs 439 billion .  Total deposits from public for the Indian banking system grew just 6.1 % from Rs 111,114 Billions to Rs 117,940 billion in the Financial year April 17 to March 18 ( Corresponding growth rate was 10.1% in previous year )   However  Total  advances  of the Indian banking system grew  better at 7.8 % from Rs 111,114 Billions to Rs 117,940 billion in the Financial year April 17 to March 18 ( Corresponding growth rate was  2.8 % in previous year )  ​.Â
Gross non-performing assets ( NPA )  rose  31.3 % from Rs 7,918 billion to Rs 10,397 billion during the year .
 Net non-performing assets ( NPA )  rose  20.2 % from Rs 4,331 billion to Rs 5,207 billion during the year .Â
  Industrial advances grew abysmal  0.7 %  from Rs 26,798 billion to Rs 26,993 billion during the year .
  Agricultural Advances grew just  3.8 % from Rs 9,924 billion to Rs 10,302 billion during the year . Â
The number of banking outlets in villages also got reduced from 598,093 to 569,547 during the period .Â
(  1 billion = 100 CRORES ) . Â
For the overall glance of the RBI report , CLICK HEREÂ
For the RBI Report on Trend and Progress in Banking in India 2017-18 , CLICK HERE
RESERVE BANK OF INDIAÂ Â CONSTITUTESÂ COMMITTEEÂ TO EXAMINE ECFÂ
DATED 27.12.2018 :        The RBI  in consulation with Government of India , has formed an expert committee to examine Economic Capital Framework ( ECF ) . The committee will be headed by  Dr Bimal Jalan , Former Governor of RBI  . The vice chairman of the committee will be Dr Rakesh Mohan , former Deputy Governor of RBI . The other members of the committee are  Shri Bharat Doshi , member of RBI Board , Shri Sudhir Mankad ,  member of RBI Board , Shri S.C.Garg , Secretary of Department of Economic Affairs , Government of India and Shri N.S . Vishwanathan , Deputy Governor of India .Â
The committee has been asked to examine following issues :Â
 1. to review status, need and justification of various provisions, reserves and buffers presently provided for by the RBI; and
2. to review global best practices followed by the central banks in making assessment and provisions for risks which central bank balance sheets are subject to Â
3. To suggest an adequate level of risk provisioning that the RBI needs to maintain;
4. To determine whether the RBI is holding provisions, reserves and buffers in surplus / deficit of the required level of such provisions, reserves and buffers;
5. To propose a suitable profits distribution policy taking into account all the likely situations of the RBI, including the situations of holding more provisions than required and the RBI holding less provisions than required; Â
The committee  is expected to come out with its report in 90 days .Â
​To go through the press release of RBI dated 26.12.2018 ,  CLICK HEREÂ
DATED 27.12.2018 :        The RBI  in consulation with Government of India , has formed an expert committee to examine Economic Capital Framework ( ECF ) . The committee will be headed by  Dr Bimal Jalan , Former Governor of RBI  . The vice chairman of the committee will be Dr Rakesh Mohan , former Deputy Governor of RBI . The other members of the committee are  Shri Bharat Doshi , member of RBI Board , Shri Sudhir Mankad ,  member of RBI Board , Shri S.C.Garg , Secretary of Department of Economic Affairs , Government of India and Shri N.S . Vishwanathan , Deputy Governor of India .Â
The committee has been asked to examine following issues :Â
 1. to review status, need and justification of various provisions, reserves and buffers presently provided for by the RBI; and
2. to review global best practices followed by the central banks in making assessment and provisions for risks which central bank balance sheets are subject to Â
3. To suggest an adequate level of risk provisioning that the RBI needs to maintain;
4. To determine whether the RBI is holding provisions, reserves and buffers in surplus / deficit of the required level of such provisions, reserves and buffers;
5. To propose a suitable profits distribution policy taking into account all the likely situations of the RBI, including the situations of holding more provisions than required and the RBI holding less provisions than required; Â
The committee  is expected to come out with its report in 90 days .Â
​To go through the press release of RBI dated 26.12.2018 ,  CLICK HEREÂ
BREAKING NEWS :Â MR SHAKTIKANTA DASÂ Â APPOINTEDÂ AS THEÂ NEWÂ GOVERNOR OF RBIÂ
Dated 11.12.2018 : Today the Government of India appointed Mr Shaktikant das , a retired IAS officer as the Governor of Reserve Bank of India . Mr Shaktikant Das  is former Economic Affairs Secretery who retired in 2017 . He replaces just resigned  Dt Urjit Patel as 25th Governor of RBI . Mr Das is currently a member of Finance Commission and Government's representative in G20 Summit . Â
Source : Various mediaÂ
Dated 11.12.2018 : Today the Government of India appointed Mr Shaktikant das , a retired IAS officer as the Governor of Reserve Bank of India . Mr Shaktikant Das  is former Economic Affairs Secretery who retired in 2017 . He replaces just resigned  Dt Urjit Patel as 25th Governor of RBI . Mr Das is currently a member of Finance Commission and Government's representative in G20 Summit . Â
Source : Various mediaÂ
BREAKING NEWS :Â DR URJIT PATEL RESIGNS AS THE GOVERNOR OF RBIÂ
Dated 10.12.2018 : Today the Governor of Reserve Bank of India Dt Urjit Patel announced stepping downwith immediate effect  from his post quoting personal reasons .  Â
​The rumour of his resignation was floating in the media for past couple of months due to his differences with the policies of present government .Â
For Statement of dr Urjit Patel ,  CLICK HEREÂ
Dated 10.12.2018 : Today the Governor of Reserve Bank of India Dt Urjit Patel announced stepping downwith immediate effect  from his post quoting personal reasons .  Â
​The rumour of his resignation was floating in the media for past couple of months due to his differences with the policies of present government .Â
For Statement of dr Urjit Patel ,  CLICK HEREÂ
SEBI EXTENDS DEADLINE FOR DEMAT OF SECURITIES
Dated 04.12.2018 :  Security Exchange Board of India ( SEBI )had earlier put December 5 , 2018 as deadline  for effecting transfer of securities in physical forms . It had advised in March 2018 that it would not allow processing of request for transfer of any security if not held in demat form by 5th , December 2018 . Now , through a press release , SEBI has extended the dealine till April 1, 2019 .
Now the persons holding shares and other securities in physical form can continue to have transactions , but they have to get it in to demat form , if they want to hold beyond March 2019 .Â
​
 For Press release of SEBI dated 03.12.2018   , CLICK HERE
Now the persons holding shares and other securities in physical form can continue to have transactions , but they have to get it in to demat form , if they want to hold beyond March 2019 .Â
​
 For Press release of SEBI dated 03.12.2018   , CLICK HERE
 HALF OF ATMS TO CLOSE DOWN BEFORE 31ST MARCH 2019 : CATMiÂ
Dated 22.11.2018 : We had published a posting on this page on 01.10.2018  regarding probability of slow death of ATMs in India  ( read the posting posted earlier below ) . Now as per Confederation of ATM Industy in India ( CATMi ) report , as reported by most of the media , the death is coming faster than we envisaged .  Report says that more than half of the ATMs operating now may close down before 31st , March 2019 due to various reasons .  It is reported that more tah 1,00,000 off-site ATMs and 15,000 white label ATMs may closed down before the end of the financial year .Â
The overall picture looks gloomy for ATM industry as costs of operations are increasing due to tightening security rules , new cash management procedures introduced and casette swap method of cash uploading . The confederation feels  the operations have become unviable . Most of the closures of ATMs are expected in off-site non-urban areas and rural areas . If such an en mass closure takes place , government's financial inclusion programme will be badly hit .Â
we hope RBI and government will intervene and find viable solution for smooth functioning of the cash management operations of banks in IndiaÂ
Dated 22.11.2018 : We had published a posting on this page on 01.10.2018  regarding probability of slow death of ATMs in India  ( read the posting posted earlier below ) . Now as per Confederation of ATM Industy in India ( CATMi ) report , as reported by most of the media , the death is coming faster than we envisaged .  Report says that more than half of the ATMs operating now may close down before 31st , March 2019 due to various reasons .  It is reported that more tah 1,00,000 off-site ATMs and 15,000 white label ATMs may closed down before the end of the financial year .Â
The overall picture looks gloomy for ATM industry as costs of operations are increasing due to tightening security rules , new cash management procedures introduced and casette swap method of cash uploading . The confederation feels  the operations have become unviable . Most of the closures of ATMs are expected in off-site non-urban areas and rural areas . If such an en mass closure takes place , government's financial inclusion programme will be badly hit .Â
we hope RBI and government will intervene and find viable solution for smooth functioning of the cash management operations of banks in IndiaÂ
RESERVE BANK OF INDIAÂ Â TO CONSTITUTE COMMITTEEÂ TO EXAMINE ECFÂ
DATED 20.11.2018 :        The RBI' s Central board  ,which met yesterday , decided to form an expert committee to examine Economic Capital Framework ( ECF ) . The committee will be constituted  jointly by Government of India and Reserve Bank of India and the  terms of reference and membership issues will be also be decided jointly . The meeting which ran for more than 9 hours also discussed the matters relating to restructuring of MSME loans , Basil capital framework ( BCF ) and  Prompt Corrective action ( PCA )  .Â
 The Board also advised RBI to consider a restructuring scheme for stressed loans up ro Rs 25 crores taken by MSME sector . However board left the matter relating to PCA ( prompt corrective action ) on certain banks to be decided by Board for Financial Supervision ( BCF ) of RBI . Â
 There was lot of media attention on the diverse stands taken by finance ministry and RBI on the above matters  , especially on liquidity crisis , transfering RBI reserves to the government  PCA on certail major banks and the result of the meeting is seen as middle path taken by both RBI and government . Â
​For RBI press release on the subject ,  CLICK HERE
DATED 20.11.2018 :        The RBI' s Central board  ,which met yesterday , decided to form an expert committee to examine Economic Capital Framework ( ECF ) . The committee will be constituted  jointly by Government of India and Reserve Bank of India and the  terms of reference and membership issues will be also be decided jointly . The meeting which ran for more than 9 hours also discussed the matters relating to restructuring of MSME loans , Basil capital framework ( BCF ) and  Prompt Corrective action ( PCA )  .Â
 The Board also advised RBI to consider a restructuring scheme for stressed loans up ro Rs 25 crores taken by MSME sector . However board left the matter relating to PCA ( prompt corrective action ) on certain banks to be decided by Board for Financial Supervision ( BCF ) of RBI . Â
 There was lot of media attention on the diverse stands taken by finance ministry and RBI on the above matters  , especially on liquidity crisis , transfering RBI reserves to the government  PCA on certail major banks and the result of the meeting is seen as middle path taken by both RBI and government . Â
​For RBI press release on the subject ,  CLICK HERE
 ARE ATMS HAVING SLOW DEATH IN INDIA ?Â
Dated 01.10.2018 : Economic Times  has reported that India's leading banker State Bank of India has halved the cash withdrawal limit to Rs 20,000 from the present Rs 40,000 for its customers for  using their ATMs.  In August , Home Ministry of Government of India had put up several restrictions  on replenishing cash in the ATMs of the banks  , keeping security in mind .  In May , Reserve Bank of India  had reported static state in number of ATMs in India in recent years , especially  after demonetisation . Actually number of operating ATMs got reduced in the financial year 2017-18 . Mean time many banks  have increased  service charges on usage of ATMS , put up restrictions on cash withdrawals , both in numbers and amount . Â
 Further the instances of ATMs displaying " NO CASH " boards have also increased  , due to restrictions put on replenishment as well as logistic bottlenecks .  Added to  these problems , Customers also would have security concerns  while withdrawing cash from an ATM  .  All these problems have made customers to go in for more and more on-line transactions using e-wallets  and hence number of e- wallets  from various issuers have exponentially increased . Now e-wallets are being issued   from retailers like Amazon ,  mobile operators like Airtel , and taxi companies like Ola .  These wallets  are used from making bill payments to ordering food or groceries  .Â
Is overall   picture pointing towards  extinction of once revered Any Time Money machines ?Â
Dated 01.10.2018 : Economic Times  has reported that India's leading banker State Bank of India has halved the cash withdrawal limit to Rs 20,000 from the present Rs 40,000 for its customers for  using their ATMs.  In August , Home Ministry of Government of India had put up several restrictions  on replenishing cash in the ATMs of the banks  , keeping security in mind .  In May , Reserve Bank of India  had reported static state in number of ATMs in India in recent years , especially  after demonetisation . Actually number of operating ATMs got reduced in the financial year 2017-18 . Mean time many banks  have increased  service charges on usage of ATMS , put up restrictions on cash withdrawals , both in numbers and amount . Â
 Further the instances of ATMs displaying " NO CASH " boards have also increased  , due to restrictions put on replenishment as well as logistic bottlenecks .  Added to  these problems , Customers also would have security concerns  while withdrawing cash from an ATM  .  All these problems have made customers to go in for more and more on-line transactions using e-wallets  and hence number of e- wallets  from various issuers have exponentially increased . Now e-wallets are being issued   from retailers like Amazon ,  mobile operators like Airtel , and taxi companies like Ola .  These wallets  are used from making bill payments to ordering food or groceries  .Â
Is overall   picture pointing towards  extinction of once revered Any Time Money machines ?Â
 RESERVE BANK OF INDIA BARS BANDHAN BANK  FROM EXPANSION :  MEDIA  Â
DATED 29.09.2018 :       Newspapers reported that  Bandhan Bank has been barred from opening new branches by Reserve Bank of India without its approval . It has also frozen the salary  given to its Chief Executive Officer ( CEO ) , as the bank has failed to meet shareholding rules . Â
The promoter Bandhan Financial Holdings Limited is holding 82 % of the shares of the bank . It should have brought down to 40 % within the three years of  commencing the business , which was completed on 23.08.2018 .Â
DATED 29.09.2018 :       Newspapers reported that  Bandhan Bank has been barred from opening new branches by Reserve Bank of India without its approval . It has also frozen the salary  given to its Chief Executive Officer ( CEO ) , as the bank has failed to meet shareholding rules . Â
The promoter Bandhan Financial Holdings Limited is holding 82 % of the shares of the bank . It should have brought down to 40 % within the three years of  commencing the business , which was completed on 23.08.2018 .Â
AADHAAR ISÂ NO LONGERÂ MANDATORY FOR OPENING BANK ACCOUNTS AS PERÂ Â SUPREME COURT VERDICTÂ Â : REPERCUSSIONSÂ
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  )  .Â
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 . Â
Some of the questions that arise after the verdict areÂ
 1. What will be the fate of the accounts that are already linked ?Â
 2. Whether customers , who are not DBT beneficiaries can demand un-linking  ?Â
  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 ?  Â
​ So far , we are yet to hear the government plans in response to court verdict .Â
  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.  ​ Â
To know about requirements of documents for opening a bank account , CLICK HERE
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  )  .Â
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 . Â
Some of the questions that arise after the verdict areÂ
 1. What will be the fate of the accounts that are already linked ?Â
 2. Whether customers , who are not DBT beneficiaries can demand un-linking  ?Â
  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 ?  Â
​ So far , we are yet to hear the government plans in response to court verdict .Â
  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.  ​ Â
To know about requirements of documents for opening a bank account , CLICK HERE
 BANK OF BARODA , VIJAYA BANK AND DENA BANK TO BE MERGED : FINANCE MINISTER  Â
DATED 18.09.2018 :       The Government of India  has proposed to merge  the three public sectors banks Bank of Baroda , Vijaya Bank and Dena Bank in to a single entity which will be the third largest bank of India , as announced by the Finance Minister Mr Arun Jaitley yesterday . This will be the second move of merger of public sector banks , the first one being merger of  group banks of State bank of India . Now the boards of the three banks have to consider the proposal of merger , which will be a just formality . Â
Bank of Baroda , head quarterd Mumbai , is the biggest bank of the three with more than 10 lakh crores of business , 56,000 employees and 5500 branches . Vijaya Bank , head quarterd Bengaluru , has a business mix of 2.80 lakh crores with more than 15,000 staff and 2100 branches . Dena Bank , head quarterd also Mumbai , is the smallest of the three with 1,73 laks of business mix , around 13,000 staff and 1,800 branches . On merger , the combined business of the new entity will be more than  14 lakh crores of business with  85,000 employees and 9,500 branches  . The entity is also expected to have 34 % of total  low cost deposits of the country .  The capital Adequacy ratio ( CAR ) is expected to be 12.25 % , above the regulatory norm of 10.85 % .  It is expected that it might take at least one year before the new entity is established as  merger of different processes and systems have to take place . Â
Financial services Secretary of Government of India Mr Rajiv kumar told the media that the proposed move will help operational efficiency and customer service of the three banks .Â
DATED 18.09.2018 :       The Government of India  has proposed to merge  the three public sectors banks Bank of Baroda , Vijaya Bank and Dena Bank in to a single entity which will be the third largest bank of India , as announced by the Finance Minister Mr Arun Jaitley yesterday . This will be the second move of merger of public sector banks , the first one being merger of  group banks of State bank of India . Now the boards of the three banks have to consider the proposal of merger , which will be a just formality . Â
Bank of Baroda , head quarterd Mumbai , is the biggest bank of the three with more than 10 lakh crores of business , 56,000 employees and 5500 branches . Vijaya Bank , head quarterd Bengaluru , has a business mix of 2.80 lakh crores with more than 15,000 staff and 2100 branches . Dena Bank , head quarterd also Mumbai , is the smallest of the three with 1,73 laks of business mix , around 13,000 staff and 1,800 branches . On merger , the combined business of the new entity will be more than  14 lakh crores of business with  85,000 employees and 9,500 branches  . The entity is also expected to have 34 % of total  low cost deposits of the country .  The capital Adequacy ratio ( CAR ) is expected to be 12.25 % , above the regulatory norm of 10.85 % .  It is expected that it might take at least one year before the new entity is established as  merger of different processes and systems have to take place . Â
Financial services Secretary of Government of India Mr Rajiv kumar told the media that the proposed move will help operational efficiency and customer service of the three banks .Â
 NO REPLENISHMENT OF ATMS AFTER 9.00 PM : HOME MINISTRY  Â
DATED 21.08.2018 :       No  ATM  to be replenished  after 9.00 pm from 8th , February , 2019  as per directive issued by Ministry of Home Affairs , Government of India . The deadline will be 6.00 pm for ATMs situated in rural areas and 4.00 pm for ATMs of Naxal hit areas . A new Standard Operating procedure ( SOP ) introduced  , which will come in to effect from 08.02.2019  , will require private agencies to transit the cash in a more secured way . Cash van should be accompanied by two armed guards along with two ATM officers or custodian  along with the driver . Further cash cannot be loaded before 9.00 am in naxal hit districts . Â
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Further SOP stipulates that one armed guard should sit with the driver and the  another  with cash in the rear portion . During loading / unloading , nature' call or tea break  , one armed guard should necessarily be with the cash  . All cash vans are to be fitted with GPS tracking device and  more than Rs 5.00 crore to be transported at any time per trip . Cash vans should have mini CCTV systems with  afacility to keep records for 5 days . The cash van will be fitted with hooter , fire extinguisher and  emergency lights .Â
 Further cash transporting agencies  shall appoint only those for whom police have checked antecedents  like Aadhaar , residency and  previous employment check . Agencies have been advised to give preference to ex-servicemen for appointments . Â
Presently there are 8,000 privately owned cash vans and more than Rs 15,000 crores are transported every day .  The new guidelines have been issued in the face of increasing attacks of robbery on cash vans . Â
​Source : Various Media ReportsÂ
DATED 21.08.2018 :       No  ATM  to be replenished  after 9.00 pm from 8th , February , 2019  as per directive issued by Ministry of Home Affairs , Government of India . The deadline will be 6.00 pm for ATMs situated in rural areas and 4.00 pm for ATMs of Naxal hit areas . A new Standard Operating procedure ( SOP ) introduced  , which will come in to effect from 08.02.2019  , will require private agencies to transit the cash in a more secured way . Cash van should be accompanied by two armed guards along with two ATM officers or custodian  along with the driver . Further cash cannot be loaded before 9.00 am in naxal hit districts . Â
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Further SOP stipulates that one armed guard should sit with the driver and the  another  with cash in the rear portion . During loading / unloading , nature' call or tea break  , one armed guard should necessarily be with the cash  . All cash vans are to be fitted with GPS tracking device and  more than Rs 5.00 crore to be transported at any time per trip . Cash vans should have mini CCTV systems with  afacility to keep records for 5 days . The cash van will be fitted with hooter , fire extinguisher and  emergency lights .Â
 Further cash transporting agencies  shall appoint only those for whom police have checked antecedents  like Aadhaar , residency and  previous employment check . Agencies have been advised to give preference to ex-servicemen for appointments . Â
Presently there are 8,000 privately owned cash vans and more than Rs 15,000 crores are transported every day .  The new guidelines have been issued in the face of increasing attacks of robbery on cash vans . Â
​Source : Various Media ReportsÂ
 PUNE BASED COSMO BANK LOSES RS 94 CRORES ON CYBER ATTACK  : MEDIA Â
DATED 16.08.2018 :       Cyber thieves have siphoned off Rs 94 crores from Pune based Cosmos Co-operative Bank  Bank by hacking one of its servers , as per media reports . The attack has taken place on Saturday 11th , August just for two hours on its ATM server and hackers have removed an amount of Rs 80 crores through 14, 849 transactions mainly overseas .  Apart from ATM server hacking done through malware attack on ATM server for stealing customer information , attackers also siphoned off another Rs 14 crores through 3 unauthorised SWIFT transactions paid to an Hong Kong entity .( To know what is SWIFT , CLICK HERE )  . The withdrawals have taken place in 28 countries .Â
It is reported that a proxy switch was created by the attackers to permit the fraudulent transactions . However it is advised that the core server of the bank was not attacked and the customer accounts are not affected by the fraudulent transactions . Â
As a precautionary measure , the bank has closed the operation of its ATM , internet banking and mobile banking facilities  for the presentÂ
DATED 16.08.2018 :       Cyber thieves have siphoned off Rs 94 crores from Pune based Cosmos Co-operative Bank  Bank by hacking one of its servers , as per media reports . The attack has taken place on Saturday 11th , August just for two hours on its ATM server and hackers have removed an amount of Rs 80 crores through 14, 849 transactions mainly overseas .  Apart from ATM server hacking done through malware attack on ATM server for stealing customer information , attackers also siphoned off another Rs 14 crores through 3 unauthorised SWIFT transactions paid to an Hong Kong entity .( To know what is SWIFT , CLICK HERE )  . The withdrawals have taken place in 28 countries .Â
It is reported that a proxy switch was created by the attackers to permit the fraudulent transactions . However it is advised that the core server of the bank was not attacked and the customer accounts are not affected by the fraudulent transactions . Â
As a precautionary measure , the bank has closed the operation of its ATM , internet banking and mobile banking facilities  for the presentÂ
 PARLIAMENTARY COMMITTEE ASKS RBI TO RESTORE LOU : MEDIA Â
DATED 07.08.2018 :     The Parliamentary Standing Committee on Commerce has asked Reserve Bank of India to restore Letter of Undertakings ( LOU )  in a report tabled by it in Rajyasabha , as per media reports . Â
 Reserve Bank of India had  disallowed the practice  of issuing LOUs  in March 2018 , in the wake of large scale fraud happened in public sector lender Punjab National Bank . Punjab National Bank lost more than Rs 13,000 crores in the fraud said to be perpetuated by an officer in collusion  with a group of diamond trading companies . Now the committee has noted that the sudden knee jerk reaction of RBI without consulting all the stake holders has raised the cost of credit by 2% to 2.5 % . Committee has alleged that RBI acted in haste without giving much thought and consideration while banning the LOU . Â
​The committee has noted that the efficacy of Letter of Credits ( LC ) and Letter of Undertakings ( LOU ) was unmatched as a source of cheap overseas credit  and  they are accepted worldwide . It also has noted that cost effectiveness of India's imports have been adversely affected by such ban on LOUs .  Further committee has expressed fear over  job loss  specially in MSME sector , because of the move by RBI .  Hence the committee has recommended restoration of LOU with proper safeguards .Â
DATED 07.08.2018 :     The Parliamentary Standing Committee on Commerce has asked Reserve Bank of India to restore Letter of Undertakings ( LOU )  in a report tabled by it in Rajyasabha , as per media reports . Â
 Reserve Bank of India had  disallowed the practice  of issuing LOUs  in March 2018 , in the wake of large scale fraud happened in public sector lender Punjab National Bank . Punjab National Bank lost more than Rs 13,000 crores in the fraud said to be perpetuated by an officer in collusion  with a group of diamond trading companies . Now the committee has noted that the sudden knee jerk reaction of RBI without consulting all the stake holders has raised the cost of credit by 2% to 2.5 % . Committee has alleged that RBI acted in haste without giving much thought and consideration while banning the LOU . Â
​The committee has noted that the efficacy of Letter of Credits ( LC ) and Letter of Undertakings ( LOU ) was unmatched as a source of cheap overseas credit  and  they are accepted worldwide . It also has noted that cost effectiveness of India's imports have been adversely affected by such ban on LOUs .  Further committee has expressed fear over  job loss  specially in MSME sector , because of the move by RBI .  Hence the committee has recommended restoration of LOU with proper safeguards .Â
FRDI BILL TO BE SCRAPPED : MEDIAÂ Â
DATED 20.07.2018 :    The Financial Resolution and Deposit Insurance ( FRDI ) Bill which was introduced in the parliament in August 2017  is going to be scrapped by the government , as per media reports . Â
The bill which was introduced by the Government of India with a view to strengthen the protection and safeguarding the interest of depositors  had come to criticism from several quarters . The bill had proposed to form a Resolution Corporation to monitor financial institutions , anticipate risk of their failure , take corrective steps and work out resolution plan . Further corporation was to take over critically ill financial companies and prepare a resolution plan .Â
The most controversial part of the bill was its Bail - in clause where depositors' money could be used to bail failing financial institutions . This clause created panic in the minds of depositors . Further there was no clarity about the quantum of deposit insurance in the new bill while depositors are presently insured up ro Rs 1.00 lakh presently .Â
With the scrapping of the bill , depositors who were worried about the bill may feel relieved .Â
DATED 20.07.2018 :    The Financial Resolution and Deposit Insurance ( FRDI ) Bill which was introduced in the parliament in August 2017  is going to be scrapped by the government , as per media reports . Â
The bill which was introduced by the Government of India with a view to strengthen the protection and safeguarding the interest of depositors  had come to criticism from several quarters . The bill had proposed to form a Resolution Corporation to monitor financial institutions , anticipate risk of their failure , take corrective steps and work out resolution plan . Further corporation was to take over critically ill financial companies and prepare a resolution plan .Â
The most controversial part of the bill was its Bail - in clause where depositors' money could be used to bail failing financial institutions . This clause created panic in the minds of depositors . Further there was no clarity about the quantum of deposit insurance in the new bill while depositors are presently insured up ro Rs 1.00 lakh presently .Â
With the scrapping of the bill , depositors who were worried about the bill may feel relieved .Â
NAME OF THE PURCHASER TO BE INCORPORATEDÂ IN DEMAND DRAFTSÂ Â
DATED 13.07.2018 :    Demand Drafts , Pay Orders , Banker's cheques issued by banks will carry the name of the purchaser on its face from September 15 , 2018 as per instructions of Reserve Bank of India .
Reserve Bank of India , in a notification issued on 12th , July , 2018 ,  has advised that the step is taken in order to curb the use of DDs for money laundering purpose as  the instruments are presently providing anonymity  to the  purchasers . Â
For RBI Notification dated 12.07.2018 , CLICK HEREÂ
PANÂ ISÂ Â NOWÂ MANDATORY FOR MAKINGÂ ALL FOREIGN REMITTANCESÂ
DATED 08.06.2018 :    Henceforth if you want to remit for your children's education abroad  or you want to send money as gift to your relatives abroad , quoting of PAN number is mandatory , as per a statement issued by RBI . Â
Reserve Bank of India , in a statement made on 6th , June , 2018 , made quoting of PAN Number  mandatory  for  making  all overseas remittance  under Liberalised Remittance Scheme ( LRS ) . Hitherto a remittance up to USD 25,000  could be made by an individual without quoting PAN Number . Under LRS , an individual can remit funds up to USD 250,000  per financial year  to an overseas entity for the purpose of deposit , purchase of immovable property , equity / debt , donation , travel , maintenance of close relatives , medical treatment and for studies apart . Â
For RBI Statement dated 06.06.2018 , CLICK HEREÂ
To know full details of LRS Scheme , CLICK HEREÂ
 NUMBER OF ON-SITE ATMS IN INDIA SHOW DECLINING TREND  Â
Dated 09.05.2018 :  Recent data released by Reserve Bank of India shows declining trend in number of ATMs serving bank customers in India. While Indian banks had 110,116 on-site atms , numbers of have reduced to 106,776 in March , 2018 as per bankwise statistics released by RBI on 8, May 2018 . However off-site ATMs have increased from 98,360 to 100,276 during the same period . Still total number of ATMS serving have come down from 208,476 to 207,052 .Â
Though  reduction of ATMs in banking system is very small , statistics  points out to the static state of banking  facilities available in India in recent times . While there was rapid growth of  alternate cash dispensing facilities  in earlier times , now banks in India are consolidating the existing facilities . With introduction / enhancement of  charges on ATM usage in recent times , customers may be forced to use other methods  like on-line payment , cash wallets , debit cards etc . Otherwise customers may desist  banking channels  . Â
For RBI statistics dated 08.05.2018 ,  CLICK HEREÂ
Dated 09.05.2018 :  Recent data released by Reserve Bank of India shows declining trend in number of ATMs serving bank customers in India. While Indian banks had 110,116 on-site atms , numbers of have reduced to 106,776 in March , 2018 as per bankwise statistics released by RBI on 8, May 2018 . However off-site ATMs have increased from 98,360 to 100,276 during the same period . Still total number of ATMS serving have come down from 208,476 to 207,052 .Â
Though  reduction of ATMs in banking system is very small , statistics  points out to the static state of banking  facilities available in India in recent times . While there was rapid growth of  alternate cash dispensing facilities  in earlier times , now banks in India are consolidating the existing facilities . With introduction / enhancement of  charges on ATM usage in recent times , customers may be forced to use other methods  like on-line payment , cash wallets , debit cards etc . Otherwise customers may desist  banking channels  . Â
For RBI statistics dated 08.05.2018 ,  CLICK HEREÂ
STATE BANK OF INDIAÂ ALLOWS ITSÂ POS MACHINESÂ Â TO DRAW CASHÂ Â Â
Dated 20.04.2018 :  In order to mitigate effects of cash crunch  felt by public , State Bank of India  is now allowing its Point of Sales ( POS ) machines across the country to be used for withdrawing cash by the debit card holders of all banks in India . One can draw Rs 1,000 per day in Tier 1 and Tier 2 cities and can draw up to Rs 2,000 in other places . Service is available free of charge for the present .Â
The above facility has made available by SBI in more than 4,80,000 POS machines spread across the country .Â
Dated 20.04.2018 :  In order to mitigate effects of cash crunch  felt by public , State Bank of India  is now allowing its Point of Sales ( POS ) machines across the country to be used for withdrawing cash by the debit card holders of all banks in India . One can draw Rs 1,000 per day in Tier 1 and Tier 2 cities and can draw up to Rs 2,000 in other places . Service is available free of charge for the present .Â
The above facility has made available by SBI in more than 4,80,000 POS machines spread across the country .Â
RBIÂ / GOVERNMENTÂ ALLAYSÂ FEARS OVER CASH CRUNCHÂ
Dated 18.04.2018 :  In the wake of  widespread news about  out of cash ATMs across the nation , Reserve Bank of India has allayed the fears about cash crunch in Indian economy , akin to the shortage faced by public  after demonetisation of currencies .  It has clarified that currency chests  have sufficient currencies to cater to the needs of public . It has said that shortages might be in some pockets due to logistic problems or re-calibration of ATMs .Â
Newspapers reported that Finance minister Mr Arun Jaitley and Economic secretary Mr Subash Garg have also assured the public that there is no cash crunch and new notes were being printed in sufficient quantity .  However  media is abuzz with cash shortages and "no cash " boards  in ATMs across India . Newspaper reports also suggest that  more than 33,000 ATMs  are unable to dispense cash . It seems problems with PSB ATMs are more acute compared with its private sector peers  and in states of Andhra Pradesh , Telangana , Karnataka , Madhya Pradesh and Bihar .Â
​For RBI Press Release dated 17.04.2018 , CLICK HEREÂ
Dated 18.04.2018 :  In the wake of  widespread news about  out of cash ATMs across the nation , Reserve Bank of India has allayed the fears about cash crunch in Indian economy , akin to the shortage faced by public  after demonetisation of currencies .  It has clarified that currency chests  have sufficient currencies to cater to the needs of public . It has said that shortages might be in some pockets due to logistic problems or re-calibration of ATMs .Â
Newspapers reported that Finance minister Mr Arun Jaitley and Economic secretary Mr Subash Garg have also assured the public that there is no cash crunch and new notes were being printed in sufficient quantity .  However  media is abuzz with cash shortages and "no cash " boards  in ATMs across India . Newspaper reports also suggest that  more than 33,000 ATMs  are unable to dispense cash . It seems problems with PSB ATMs are more acute compared with its private sector peers  and in states of Andhra Pradesh , Telangana , Karnataka , Madhya Pradesh and Bihar .Â
​For RBI Press Release dated 17.04.2018 , CLICK HEREÂ
BANKÂ BRANCHES WITH GOVT TRANSACTIONS TO REMAIN OPEN TILL 8 .00 PMÂ Â ON 31.03.2018
Dated 28 .03.2018 :  As done in previous years   , Reserve Bank of India has asked all bank branches conducting Government transactions to remain open till 8.00 pm on the saturday 31.03.2018 to facilitate  payment of tax and other government transactions . Further  electronics transactions of NEFT and RTGS will be allowed till midnight of the dayÂ
​For RBI Notification , CLICK HEREÂ
​
RBI DISALLOWS USAGEÂ OF LETTER OF UNDERTAKINGS ( LOU ) AND LETTER OF COMFORT ( LOC )Â
Dated 14.03.2018 :  In the wake of SWIFT related frauds occurred in Foreign Exchange Department of Punjab National Bank , Mumbai  using the instrument of Letter of Undertakings ( LOU ) , Reserve Bank of India has withdrawn general permission , given to banks since 01.11.2004 , to issue letter of undertakings and letter of comforts in favour of overseas supplier for trade credit transactions up to USD 1 million per import transaction for a period up to one year . Â
However letter of credits and guarantees may continued to be issued by A.D Category banks as per earlier permission . .Â
​For RBI Notification , CLICK HEREÂ
Dated 14.03.2018 :  In the wake of SWIFT related frauds occurred in Foreign Exchange Department of Punjab National Bank , Mumbai  using the instrument of Letter of Undertakings ( LOU ) , Reserve Bank of India has withdrawn general permission , given to banks since 01.11.2004 , to issue letter of undertakings and letter of comforts in favour of overseas supplier for trade credit transactions up to USD 1 million per import transaction for a period up to one year . Â
However letter of credits and guarantees may continued to be issued by A.D Category banks as per earlier permission . .Â
​For RBI Notification , CLICK HEREÂ
STATE BANK OF INDIA REDUCESÂ Â MINIMUM BALANCES CHARGESÂ Â
Dated 13.03.2018 :  State Bank of India has  reduced Minimum Balance Charges  on the savings accounts balances with effect from 01.04.2018 .Â
For accounts with Metro and urban  branches , new reduced charges will be between Rs 10 to Rs 15 pm against existing Rs 30 to Rs 50 per month  depending upon the quantum of shortfall against the minimum balance requirements of the account . Similarly for accounts with semi urban branches , the new charges will be between Rs 7.50 to Rs 12 pm against existing Rs 20 to Rs 40 per month  . For accounts with rural branches , the new charges will be between Rs 5 to Rs 10 pm against existing Rs 20 to Rs 40 per month . Â
Currently minimum balance requirement is Rs 3000 in urban areas , Rs 2, 000 in semi urban areas and Rs 1,000 in rural areas . However Jan dhan accounts , basic savings bank accounts , pensioners accounts and  accounts for government subsidies are exempted from minimum balance criteria .
Dated 13.03.2018 :  State Bank of India has  reduced Minimum Balance Charges  on the savings accounts balances with effect from 01.04.2018 .Â
For accounts with Metro and urban  branches , new reduced charges will be between Rs 10 to Rs 15 pm against existing Rs 30 to Rs 50 per month  depending upon the quantum of shortfall against the minimum balance requirements of the account . Similarly for accounts with semi urban branches , the new charges will be between Rs 7.50 to Rs 12 pm against existing Rs 20 to Rs 40 per month  . For accounts with rural branches , the new charges will be between Rs 5 to Rs 10 pm against existing Rs 20 to Rs 40 per month . Â
Currently minimum balance requirement is Rs 3000 in urban areas , Rs 2, 000 in semi urban areas and Rs 1,000 in rural areas . However Jan dhan accounts , basic savings bank accounts , pensioners accounts and  accounts for government subsidies are exempted from minimum balance criteria .
WALLETS MAY NOT WORK FULLY FROM TODAY IF THEY ARE NOT KYC COMPLIANTÂ Â
Dated 01.03.2018 :  Reserve Bank of India has refused to extend deadline for allowing only KYC compliant  wallet accounts like PayTM , Mobikwik , Olamoney etc   from 01.03.2018  ( Refer RBI master circular dated 11.10.2017 ) and deadline is already over on 28.02.2018 .  IN terms of the circular ,  all accounts   are to be made KYC complaint before 28.02.2018   . If your account is not KYC compliant ,  you may not be able to load further money in to your wallet and  transfer funds to other wallets . However you will be able to pay for purchases made . IF minimal details are already collected by the wallet -issuers , they may allow limited  operations in the account . As per the circular , the minimum details shall include mobile number verified with One Time Pin ( OTP ) and self declaration of name and unique identification number of any of the "officially valid document " defined under Rule 2 (d ) of the PML Rules 2005 .  Even those accounts opened with minimum details are to be made KYC compliant within 12 months of its opening .  With minimal details  , maximum amount one can load and withdraw is Rs 10,000 per month .Â
Hence to get full service from your wallet ,   kyc compliance is mustÂ
Dated 01.03.2018 :  Reserve Bank of India has refused to extend deadline for allowing only KYC compliant  wallet accounts like PayTM , Mobikwik , Olamoney etc   from 01.03.2018  ( Refer RBI master circular dated 11.10.2017 ) and deadline is already over on 28.02.2018 .  IN terms of the circular ,  all accounts   are to be made KYC complaint before 28.02.2018   . If your account is not KYC compliant ,  you may not be able to load further money in to your wallet and  transfer funds to other wallets . However you will be able to pay for purchases made . IF minimal details are already collected by the wallet -issuers , they may allow limited  operations in the account . As per the circular , the minimum details shall include mobile number verified with One Time Pin ( OTP ) and self declaration of name and unique identification number of any of the "officially valid document " defined under Rule 2 (d ) of the PML Rules 2005 .  Even those accounts opened with minimum details are to be made KYC compliant within 12 months of its opening .  With minimal details  , maximum amount one can load and withdraw is Rs 10,000 per month .Â
Hence to get full service from your wallet ,   kyc compliance is mustÂ
RBI FORMS COMMITTEE TO SUGGEST WAYS TO PREVENT FRAUDSÂ IN BANKSÂ
Dated 22.02.2018 :  In the wake of SWIFT related frauds occurred in Foreign Exchange Department of Punjab National Bank , Mumbai  , Reserve Bank of India has formed a committee under the chairmanship of Mr Y.H.Malegaon , former member of central Board of Directors of RBI to look in to the reasons of increasing incidence of frauds in banks in India  , and to suggest measures to curb and prevent it . Committee will also look in to the high divergence of assets classification reported and provisions made .  The committee will further also look in to the role  and effectiveness of auditors and prevailing auditing system  in mitigating the problems of frauds and wrong classification of assets .Â
The other members pf the committee are Shri Bharat Joshi ( Member of central Board of Directors of RBI ) , Shri S.Raman ( Former of CMD of Canara Bank ) , Shri Nandakumar Saravade ( CEO of ReBIT ) and Shri A.K.Misra ( ED of RBI ) Â
Foe RBI Press release ,  CLICK HERE
Dated 22.02.2018 :  In the wake of SWIFT related frauds occurred in Foreign Exchange Department of Punjab National Bank , Mumbai  , Reserve Bank of India has formed a committee under the chairmanship of Mr Y.H.Malegaon , former member of central Board of Directors of RBI to look in to the reasons of increasing incidence of frauds in banks in India  , and to suggest measures to curb and prevent it . Committee will also look in to the high divergence of assets classification reported and provisions made .  The committee will further also look in to the role  and effectiveness of auditors and prevailing auditing system  in mitigating the problems of frauds and wrong classification of assets .Â
The other members pf the committee are Shri Bharat Joshi ( Member of central Board of Directors of RBI ) , Shri S.Raman ( Former of CMD of Canara Bank ) , Shri Nandakumar Saravade ( CEO of ReBIT ) and Shri A.K.Misra ( ED of RBI ) Â
Foe RBI Press release ,  CLICK HERE
 A COMMON PLACE WHERE YOU CAN LODGE ALL YOUR COMPLAINTS  : Â
Dated 27.11.2017 :  An State Level Co-ordination committee  ( SLCC )  was formed in 2014 by Reserve Bank of India ( RBI ) , security Exchange Board of India ( SEBI ) , Insurance Regulatory and Development Authority ( IRDA ) , National Housing Bank ( NHB ) and Pension Fund Regulatory and Development Authority ( PFRDA ) , in order to address the problem of unauthorized acceptance of funds by unscrupulous entities .Â
Now SLCC has brought a common link , where one can go and lodge a complaint  to various regulators against NBFC , Mutual Funds , Stock Brokers , Insurance companies , Housing Finance companies and pension schemes  ,Â
By CLICKING HERE , you may go to the link and lodge your compliant  to the appropriate regulator .Â
Dated 27.11.2017 :  An State Level Co-ordination committee  ( SLCC )  was formed in 2014 by Reserve Bank of India ( RBI ) , security Exchange Board of India ( SEBI ) , Insurance Regulatory and Development Authority ( IRDA ) , National Housing Bank ( NHB ) and Pension Fund Regulatory and Development Authority ( PFRDA ) , in order to address the problem of unauthorized acceptance of funds by unscrupulous entities .Â
Now SLCC has brought a common link , where one can go and lodge a complaint  to various regulators against NBFC , Mutual Funds , Stock Brokers , Insurance companies , Housing Finance companies and pension schemes  ,Â
By CLICKING HERE , you may go to the link and lodge your compliant  to the appropriate regulator .Â
STANDARD AND POOR'SÂ RETAINSÂ INDIAN SOVEREIGN RATINGÂ :
Dated 24.11.2017  : International Credit rating agency M/S Standard & Poor's  today kept India's sovereign Foreign currency and local long term credit  rating  BBB-  unchanged . The short term rating continues to be at A-3 . The rating corresponds to  the level of " Lower Middle " grade . The outlook remains "Stable " . It is reported that the Standard & Poor's  rating  is based on expectation of " Expectation of continued growth of GDP in next two years and managing sound external accounts of the country  " Â
Dated 24.11.2017  : International Credit rating agency M/S Standard & Poor's  today kept India's sovereign Foreign currency and local long term credit  rating  BBB-  unchanged . The short term rating continues to be at A-3 . The rating corresponds to  the level of " Lower Middle " grade . The outlook remains "Stable " . It is reported that the Standard & Poor's  rating  is based on expectation of " Expectation of continued growth of GDP in next two years and managing sound external accounts of the country  " Â
MOODY'S UPGRADES INDIAN SOVEREIGN RATINGÂ :
Dated 17.11.2017  : International Credit rating agency M/S Moody's Investor Services today upgraded India's sovereign long term rating to Baa2 outlook stable from existing Baa3 . The short term rating continues to be at P2 . The rating corresponds to one level up in " Lower Middle " grade . It is reported that the decision of Moody's to upgrade is based on expectation of " Continued progress on economic and institutional reform will enhance India's high growth potential and a general decline in government debts " Â
Moody's also have India's long term foreign currency bonds to Baa1 from Baa2  and long term currency deposit ceiling to Baa2 from Baa3. Now both short term foreign currency bond ceiling and short term foreign currency deposit ceiling stand at P2 . Earlier short term foreign currency deposit ceiling was at P3 .Â
The rating agency has also warned that rating might be downgraded if fiscal metrics and fiscal consolidation deteriorates materially in future.
​
The immediate impact of the decision of Moody's is felt in the market today with NIFTY raising around 100 points to 10, 324 and Sensex jumping 330 points to 33,440 in the morning trade today . India rupee also improved around 47 paise U S dollar to 64.47 on the trade today  . Further the upgrade is believed to be positive for Indian bond market .Â
Dated 17.11.2017  : International Credit rating agency M/S Moody's Investor Services today upgraded India's sovereign long term rating to Baa2 outlook stable from existing Baa3 . The short term rating continues to be at P2 . The rating corresponds to one level up in " Lower Middle " grade . It is reported that the decision of Moody's to upgrade is based on expectation of " Continued progress on economic and institutional reform will enhance India's high growth potential and a general decline in government debts " Â
Moody's also have India's long term foreign currency bonds to Baa1 from Baa2  and long term currency deposit ceiling to Baa2 from Baa3. Now both short term foreign currency bond ceiling and short term foreign currency deposit ceiling stand at P2 . Earlier short term foreign currency deposit ceiling was at P3 .Â
The rating agency has also warned that rating might be downgraded if fiscal metrics and fiscal consolidation deteriorates materially in future.
​
The immediate impact of the decision of Moody's is felt in the market today with NIFTY raising around 100 points to 10, 324 and Sensex jumping 330 points to 33,440 in the morning trade today . India rupee also improved around 47 paise U S dollar to 64.47 on the trade today  . Further the upgrade is believed to be positive for Indian bond market .Â
RBI DIRECTS BANKS TOÂ Â EASEÂ BANKING FACILITIES FOR SENIORS ANDÂ DIFFERENTLY ABLED :
Dated 10.11.2017  :  Reserve Bank of India today directed all scheduled banks  to extend following additional facilities to their customers  who are senior citizens or differently abled persons : Â
1. Dedicated counters for senior citizens / differently abled persons Â
2. 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 systemsÂ
3. Banks to issue minimum of 25 cheque leaves every year free of charge , without insisting on customer presence . Â
4. Banks to change status of account automatically on reaching of the age  as per KYC submittedÂ
5. Banks to allow operations of accounts by visually impaired persons with the help of two independent witnesses and authorisationÂ
6. Banks to provide 15G/15H forms to enable the customers submit the sameÂ
7 . Banks to provide '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 . Â
Banks have been advised to implement the directions before 31.12.2017 .Â
​Foe RBI Notification ,  CLICK HERE
Dated 10.11.2017  :  Reserve Bank of India today directed all scheduled banks  to extend following additional facilities to their customers  who are senior citizens or differently abled persons : Â
1. Dedicated counters for senior citizens / differently abled persons Â
2. 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 systemsÂ
3. Banks to issue minimum of 25 cheque leaves every year free of charge , without insisting on customer presence . Â
4. Banks to change status of account automatically on reaching of the age  as per KYC submittedÂ
5. Banks to allow operations of accounts by visually impaired persons with the help of two independent witnesses and authorisationÂ
6. Banks to provide 15G/15H forms to enable the customers submit the sameÂ
7 . Banks to provide '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 . Â
Banks have been advised to implement the directions before 31.12.2017 .Â
​Foe RBI Notification ,  CLICK HERE
 ICICI BANK LAUNCHES NEW ' CASHBACK '  HOME LOANS  :
Dated 29.09.2017  :  India's largest Private sector  Bank , ICICI Bank Limited , has launched a new home loans scheme which entitles borrowers a  cashback of 1 %  of EMI paid  on the new  housing loans availed .  The scheme is available for both residents and non-residents who avail  home loans for a tenure of 15 years to 30 years  .  There is no restriction on the amount of home loan to be availed . The cashback  can be availed either to the credit of  principal loan outstanding or to the credit of their savings bank account  . First cashback will be credited after  payment of 36 EMI and their after on completion of 12 EMI subsequently . Â
The announcement is not clear on the interest rate  going to be charged on the new scheme .  Hence while choosing  a home loan , one has to compare the interest rates  offered by various banks and housing finance companies  and decide whether the cashback offer is beneficial vis a vis other bank offerings .Â
To read  ICICI Bank announcement  , CLICK HERE
Dated 29.09.2017  :  India's largest Private sector  Bank , ICICI Bank Limited , has launched a new home loans scheme which entitles borrowers a  cashback of 1 %  of EMI paid  on the new  housing loans availed .  The scheme is available for both residents and non-residents who avail  home loans for a tenure of 15 years to 30 years  .  There is no restriction on the amount of home loan to be availed . The cashback  can be availed either to the credit of  principal loan outstanding or to the credit of their savings bank account  . First cashback will be credited after  payment of 36 EMI and their after on completion of 12 EMI subsequently . Â
The announcement is not clear on the interest rate  going to be charged on the new scheme .  Hence while choosing  a home loan , one has to compare the interest rates  offered by various banks and housing finance companies  and decide whether the cashback offer is beneficial vis a vis other bank offerings .Â
To read  ICICI Bank announcement  , CLICK HERE
 MR MUNDHRA ALLAYS FEARS  OVER WEAK BANKS  :
Dated 19.07.2017 :   In the wake of rumours floating  over  weak banks  , Mr S.S. Mundhra , Deputy Governor of Reserve Bank of India has  recently  urged people  not to fall prey to  falsehood of misleading news   about  the future  of weak banks  .  He has told that notion about  impending collapse  of banks due to poor asset quality  is misleading  and RBI has  included  certain banks for Prompt Corrective Action ( PCA )   for improvement of their asset quality .  He also told "  PCA will not imply that banks will cease normal banking activities  including lending "  Â
The list of bankers under  PCA include IDBI Bank , Central bank of India , Indian Overseas Bank , Bank of  Maharashtra , UCO Bank and Dena Bank  who have higher Non Performing Assets and making losses in recent times .   Banks under PCA  have restrictions on issuing of dividends , opening branches , hiring and  giving loans to companies rated below investment grade .  . However it does not hamper  day to day banking .Â
. The Deputy Governor expressed his displeasure over  social media messages spreading  false news  about the future of some of the banks .Unsubstantiated rumours  around  these banks , mostly carried in social media  , suggest closure of some of the banks or mergers  with other  public sector banks  which has made  customers of these banks panicky .  Some messages have gone to the extent of asking viewers to  withdraw deposits and close their bank accounts  with these banks .  The finance minister had earlier stated  that  India needs  five or six global sized banks  and it is expected that  mergers of some of the Public sector banks  will take place in order to build bigger banks .   Recent merger of State bank group entities in to State Bank of India  is  giving credence  to the possibility of further mergers .  Â
 OUR OPINION :Â
Customers of banks need  not  panic about the rumours as  Reserve Bank of India has not allowed any major bank to fail in recent history .   Even when mergers have taken place , RBI  has taken sufficient steps  to safeguard the interest of the  customers of the weak banks  which were merged with bigger / stronger banks .  We hope the statement of Mr S.S.Mundhra will bring clarity on the situation .Â
Dated 19.07.2017 :   In the wake of rumours floating  over  weak banks  , Mr S.S. Mundhra , Deputy Governor of Reserve Bank of India has  recently  urged people  not to fall prey to  falsehood of misleading news   about  the future  of weak banks  .  He has told that notion about  impending collapse  of banks due to poor asset quality  is misleading  and RBI has  included  certain banks for Prompt Corrective Action ( PCA )   for improvement of their asset quality .  He also told "  PCA will not imply that banks will cease normal banking activities  including lending "  Â
The list of bankers under  PCA include IDBI Bank , Central bank of India , Indian Overseas Bank , Bank of  Maharashtra , UCO Bank and Dena Bank  who have higher Non Performing Assets and making losses in recent times .   Banks under PCA  have restrictions on issuing of dividends , opening branches , hiring and  giving loans to companies rated below investment grade .  . However it does not hamper  day to day banking .Â
. The Deputy Governor expressed his displeasure over  social media messages spreading  false news  about the future of some of the banks .Unsubstantiated rumours  around  these banks , mostly carried in social media  , suggest closure of some of the banks or mergers  with other  public sector banks  which has made  customers of these banks panicky .  Some messages have gone to the extent of asking viewers to  withdraw deposits and close their bank accounts  with these banks .  The finance minister had earlier stated  that  India needs  five or six global sized banks  and it is expected that  mergers of some of the Public sector banks  will take place in order to build bigger banks .   Recent merger of State bank group entities in to State Bank of India  is  giving credence  to the possibility of further mergers .  Â
 OUR OPINION :Â
Customers of banks need  not  panic about the rumours as  Reserve Bank of India has not allowed any major bank to fail in recent history .   Even when mergers have taken place , RBI  has taken sufficient steps  to safeguard the interest of the  customers of the weak banks  which were merged with bigger / stronger banks .  We hope the statement of Mr S.S.Mundhra will bring clarity on the situation .Â
RECORDING OF ADEQUATE DETAILS IN PASSBOOKSÂ
Dated 23.06.2017 :  Reserve bank of India , vide their notification dated  22.06.2017 , has advised all banks to provide adequate , intelligible details  in  the entries made in Passbooks /  Statement of Accounts .  It has advised banks to avoid inscrutable entries  and  and enter brief  relevant particulars  which would enable the depositors to cross-check the entries . It also advised banks to provide  information about " Deposit Insurance Cover "  in upfront of the passbooks . Notification also contains  illustrative list  of narrations to be made by the banks .Â
RBI has also advised banks to provide details of charges  while debiting an account .  It has advised banks not only to provide the nature of charge , but also reasons of charge .  while debiting account for recovery of loan or creation of a deposits , banks have to give respective loan / deposit numbers . Â
​For RBI Notification ,   CLICK HEREÂ
RECORDING OF PPO NUMBERS ON PENSIONER'S PASSBOOKSÂ
Dated  19.06.2017 : Reserve Bank of India , vide their notification dated 08.06.2017  , has advised banks to record PPO Numbers of the pensioners  /  Family pensioners  in their Pension Passbooks  .  This will help Pensioners  to obtain duplicate PPOs in case original is missed  or transfer of pension accounts from one branch to another or for obtaining family pension in case of death of pensioners .
Hence Pensioners may check their passbooks and get their PPO number recorded in case if it has not already been done so far .Â
​For RBI Notification ,        CLICK HERE Â
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AND Â TRANSACTIONS ABOVE Â 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 .Â
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 .Â
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 BanksÂ
2. While PAN Number  or Form 60 was necessary  for conducting transactions above Rs 50, 000 earlier , now Aadhar is required  in  lieu .Â
​3. With linking of Aadhar , PAN and Bank accounts ,  it will be easy to monitor  high value  financial transactions for the government .Â
 ​
Dated 23.06.2017 :  Reserve bank of India , vide their notification dated  22.06.2017 , has advised all banks to provide adequate , intelligible details  in  the entries made in Passbooks /  Statement of Accounts .  It has advised banks to avoid inscrutable entries  and  and enter brief  relevant particulars  which would enable the depositors to cross-check the entries . It also advised banks to provide  information about " Deposit Insurance Cover "  in upfront of the passbooks . Notification also contains  illustrative list  of narrations to be made by the banks .Â
RBI has also advised banks to provide details of charges  while debiting an account .  It has advised banks not only to provide the nature of charge , but also reasons of charge .  while debiting account for recovery of loan or creation of a deposits , banks have to give respective loan / deposit numbers . Â
​For RBI Notification ,   CLICK HEREÂ
RECORDING OF PPO NUMBERS ON PENSIONER'S PASSBOOKSÂ
Dated  19.06.2017 : Reserve Bank of India , vide their notification dated 08.06.2017  , has advised banks to record PPO Numbers of the pensioners  /  Family pensioners  in their Pension Passbooks  .  This will help Pensioners  to obtain duplicate PPOs in case original is missed  or transfer of pension accounts from one branch to another or for obtaining family pension in case of death of pensioners .
Hence Pensioners may check their passbooks and get their PPO number recorded in case if it has not already been done so far .Â
​For RBI Notification ,        CLICK HERE Â
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AND Â TRANSACTIONS ABOVE Â 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 .Â
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 .Â
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 BanksÂ
2. While PAN Number  or Form 60 was necessary  for conducting transactions above Rs 50, 000 earlier , now Aadhar is required  in  lieu .Â
​3. With linking of Aadhar , PAN and Bank accounts ,  it will be easy to monitor  high value  financial transactions for the government .Â
 ​
ISSUE OF NEW BATCH OF Â 500 Â RUPEE VALUE CURRENCY NOTES Â WITH INSET LETTER " A " Â
DATED  13.06.2017 :  As per RBI  Press Release dated 13.06.2017 , RBI will put in to circulation shortly  , New  Batch of Five Hundred  Rupee denominated currency notes with Inset letter  'A '  in both number panels . The note will bear  signature of RBI Governor  Mr  Urjit  R  Patel  with the year of printing 2017 on the reverse . The note will be similar to earlier Rs 500 notes issued with Inset Letter 'E'  vide RBI Press release dated 08.11.2016  . The size of the note will be  6.6cm x  15.3 cms in rectangular shape . The colour of the note will be  Stone grey  .Â
For full details and press release  dated 13.06.2017  , CLICK HERE  Â
and Press Release dated 08.11.2016  , CLICK HERE
ISSUE OF NEW ONE RUPEE VALUE CURRENCY NOTES Â
DATED  30.05.2017 :  As per RBI  Press Release dated 30.05.2017 , RBI will put in to circulation shortly  , One Rupee denominated currency notes printed by Government of India  . The size of the note will be  9.7cm x  6.3 cms in rectangular shape . The currency note will have water marks ofÂ
1.  Ashoka Pillar in the window  without words  " Satyameva Jayate " in DevanagariÂ
2. Hidden Numeral " 1 " Â in centreÂ
3. Hidden word " Bharat" in Devanagari vertically arranged on right side .Â
The colour of the note will be predominantly Pink Green in obverse and reverse in combination with others .Â
​For full details and press release ,    CLICK HEREÂ
​
TAX ON BANKING AND INSURANCE Â SERVICES Â TO GO UP UNDER Â NEW GST PROPOSAL Â
DATED 20.05.2017 : Under new General and services Tax  ( GST ) regime going to be implemented  effective from July 1 , 2017 ,  Taxes on Banking and Insurance services  is bracketed in 18 % slab   along with other services like  Telecom services , IT services , branded garments  , AC hotels that serve liquor  etc . Presently the service tax on banking and insurance charges  is at 15 % of the fees payable by the customers .  Interest income on bank deposits will not be affected as they do not come under service tax , but under Income tax rules .Â
Â
Further  bank  branches are to be registered State wise  for GST purpose. earlier banks were registering their branch at their head quarters .Â
MORE FREQUENT Â NEFT SETTLEMENTSÂ
Dated 09.05.2017 :  Reserve bank of India , will introduce half hourly settlements under National electronic Fund Transfer ( NEFT ) system effective from July 10 , 2017 .  The settlements will take place from 8.00 am to 7.00 pm  on all working days . Participating banks have been advised to carry out required changes in their CBS systems to utilize the additional settlements available to them .  Hence bank customers can expect more efficient , quicker credits for their NEFT payments . ​
​For RBI Notification  ,   CLICK HERE Â
DATED  13.06.2017 :  As per RBI  Press Release dated 13.06.2017 , RBI will put in to circulation shortly  , New  Batch of Five Hundred  Rupee denominated currency notes with Inset letter  'A '  in both number panels . The note will bear  signature of RBI Governor  Mr  Urjit  R  Patel  with the year of printing 2017 on the reverse . The note will be similar to earlier Rs 500 notes issued with Inset Letter 'E'  vide RBI Press release dated 08.11.2016  . The size of the note will be  6.6cm x  15.3 cms in rectangular shape . The colour of the note will be  Stone grey  .Â
For full details and press release  dated 13.06.2017  , CLICK HERE  Â
and Press Release dated 08.11.2016  , CLICK HERE
ISSUE OF NEW ONE RUPEE VALUE CURRENCY NOTES Â
DATED  30.05.2017 :  As per RBI  Press Release dated 30.05.2017 , RBI will put in to circulation shortly  , One Rupee denominated currency notes printed by Government of India  . The size of the note will be  9.7cm x  6.3 cms in rectangular shape . The currency note will have water marks ofÂ
1.  Ashoka Pillar in the window  without words  " Satyameva Jayate " in DevanagariÂ
2. Hidden Numeral " 1 " Â in centreÂ
3. Hidden word " Bharat" in Devanagari vertically arranged on right side .Â
The colour of the note will be predominantly Pink Green in obverse and reverse in combination with others .Â
​For full details and press release ,    CLICK HEREÂ
​
TAX ON BANKING AND INSURANCE Â SERVICES Â TO GO UP UNDER Â NEW GST PROPOSAL Â
DATED 20.05.2017 : Under new General and services Tax  ( GST ) regime going to be implemented  effective from July 1 , 2017 ,  Taxes on Banking and Insurance services  is bracketed in 18 % slab   along with other services like  Telecom services , IT services , branded garments  , AC hotels that serve liquor  etc . Presently the service tax on banking and insurance charges  is at 15 % of the fees payable by the customers .  Interest income on bank deposits will not be affected as they do not come under service tax , but under Income tax rules .Â
Â
Further  bank  branches are to be registered State wise  for GST purpose. earlier banks were registering their branch at their head quarters .Â
MORE FREQUENT Â NEFT SETTLEMENTSÂ
Dated 09.05.2017 :  Reserve bank of India , will introduce half hourly settlements under National electronic Fund Transfer ( NEFT ) system effective from July 10 , 2017 .  The settlements will take place from 8.00 am to 7.00 pm  on all working days . Participating banks have been advised to carry out required changes in their CBS systems to utilize the additional settlements available to them .  Hence bank customers can expect more efficient , quicker credits for their NEFT payments . ​
​For RBI Notification  ,   CLICK HERE Â
Dated 24.03.2017 : As per press release issued by Reserve Bank of India on 20.03.2017 , all branches of  State Bank of Bikaneer and Jaipur ( SBBJ ) , State Bank of Hyderabad ( SBH ) , State Bank of Mysore ( SBM ) , State Bank of  Patiala ( SBP ) and State Bank of Travancore ( SBT )will operate as branches  of State Bank of India ( SBI ) effective from 1st  April , 2017 .  Similarly branches of Bharatiya Mahila Bank will also act as branches of State Bank of India  effective from 1st  April , 2017 , as per another press release of RBI dated  22.03.2017 .Â
Dated 13.03.2017 :  As per earlier RBI Notification dated 08.02.2017 , all restrictions on cash withdrawal  limits from banks and ATMs have been removed effective from 13.03.2017 . Henceforth public can transact  their cash transactions as before Demonetisation . However some banks like  Axis Bank , ICICI  , HDFC  ETC have started levying cash transactions beyond 4 transactions a month.  They charge Rs 5 /- per Rs 1000/- cash transaction  with a minimum of Rs 150/-  per month  . Further some banks have put a limit of RS 50000/-  per day for third party payments . ​
​