FINANCIAL NEWS OF 2017-18
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NEW ARTICLES ON
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA )
ARTICLE ON
TAX PLANNING FOR FY 2019-20 ( AY 2020-21 )
Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation
CLICK HERE TO READ
FINANCIAL NEWS AND UPDATES OF 2017-18
RBI REPORT SUGGESTS DISMAL PERFORMANCE OF INDIAN BANKING INDUSTRY IN FY 2017-18
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 .
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 ) .
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 .
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 .
The number of banking outlets in villages also got reduced from 598,093 to 569,547 during the period .
( 1 billion = 100 CRORES ) .
For the overall glance of the RBI report , CLICK HERE
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 .
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 ) .
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 .
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 .
The number of banking outlets in villages also got reduced from 598,093 to 569,547 during the period .
( 1 billion = 100 CRORES ) .
For the overall glance of the RBI report , CLICK HERE
For the RBI Report on Trend and Progress in Banking in India 2017-18 , CLICK HERE
RESERVE BANK OF INDIA CONSTITUTES COMMITTEE TO EXAMINE ECF
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 .
The committee has been asked to examine following issues :
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
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;
The committee is expected to come out with its report in 90 days .
To go through the press release of RBI dated 26.12.2018 , CLICK HERE
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 .
The committee has been asked to examine following issues :
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
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;
The committee is expected to come out with its report in 90 days .
To go through the press release of RBI dated 26.12.2018 , CLICK HERE
BREAKING NEWS : MR SHAKTIKANTA DAS APPOINTED AS THE NEW GOVERNOR OF RBI
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 .
Source : Various media
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 .
Source : Various media
Dr Urjit Patel
BREAKING NEWS : DR URJIT PATEL RESIGNS AS THE GOVERNOR OF RBI
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 .
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 .
For Statement of dr Urjit Patel , CLICK HERE
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 .
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 .
For Statement of dr Urjit Patel , CLICK HERE
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 .
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 .
For Press release of SEBI dated 03.12.2018 , CLICK HERE
HALF OF ATMS TO CLOSE DOWN BEFORE 31ST MARCH 2019 : CATMi
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 .
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 .
we hope RBI and government will intervene and find viable solution for smooth functioning of the cash management operations of banks in India
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 .
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 .
we hope RBI and government will intervene and find viable solution for smooth functioning of the cash management operations of banks in India
RESERVE BANK OF INDIA TO CONSTITUTE COMMITTEE TO EXAMINE ECF
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 ) .
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 .
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 .
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 ) .
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 .
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 .
For RBI press release on the subject , CLICK HERE
ARE ATMS HAVING SLOW DEATH IN INDIA ?
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 .
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 .
Is overall picture pointing towards extinction of once revered Any Time Money machines ?
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 .
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 .
Is overall picture pointing towards extinction of once revered Any Time Money machines ?
RESERVE BANK OF INDIA BARS BANDHAN BANK FROM EXPANSION : MEDIA
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 .
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 .
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 .
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 .
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.
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 ) .
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.
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
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 .
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 .
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 .
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 .
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 .
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 .
NO REPLENISHMENT OF ATMS AFTER 9.00 PM : HOME MINISTRY
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 .
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 .
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 .
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 .
Source : Various Media Reports
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 .
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 .
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 .
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 .
Source : Various Media Reports
PUNE BASED COSMO BANK LOSES RS 94 CRORES ON CYBER ATTACK : MEDIA
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 .
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 .
As a precautionary measure , the bank has closed the operation of its ATM , internet banking and mobile banking facilities for the present
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 .
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 .
As a precautionary measure , the bank has closed the operation of its ATM , internet banking and mobile banking facilities for the present
PARLIAMENTARY COMMITTEE ASKS RBI TO RESTORE LOU : MEDIA
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 .
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 .
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 .
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 .
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 .
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 .
FRDI BILL TO BE SCRAPPED : MEDIA
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 .
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 .
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 .
With the scrapping of the bill , depositors who were worried about the bill may feel relieved .
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 .
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 .
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 .
With the scrapping of the bill , depositors who were worried about the bill may feel relieved .
NAME OF THE PURCHASER TO BE INCORPORATED IN DEMAND DRAFTS
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 .
For RBI Notification dated 12.07.2018 , CLICK HERE
PAN IS NOW MANDATORY FOR MAKING ALL FOREIGN REMITTANCES
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 .
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 .
For RBI Statement dated 06.06.2018 , CLICK HERE
To know full details of LRS Scheme , CLICK HERE
NUMBER OF ON-SITE ATMS IN INDIA SHOW DECLINING TREND
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 .
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 .
For RBI statistics dated 08.05.2018 , CLICK HERE
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 .
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 .
For RBI statistics dated 08.05.2018 , CLICK HERE
STATE BANK OF INDIA ALLOWS ITS POS MACHINES TO DRAW CASH
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 .
The above facility has made available by SBI in more than 4,80,000 POS machines spread across the country .
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 .
The above facility has made available by SBI in more than 4,80,000 POS machines spread across the country .
RBI / GOVERNMENT ALLAYS FEARS OVER CASH CRUNCH
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 .
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 .
For RBI Press Release dated 17.04.2018 , CLICK HERE
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 .
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 .
For RBI Press Release dated 17.04.2018 , CLICK HERE
BANK BRANCHES WITH GOVT TRANSACTIONS TO REMAIN OPEN TILL 8 .00 PM 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 day
For RBI Notification , CLICK HERE
RBI DISALLOWS USAGE OF LETTER OF UNDERTAKINGS ( LOU ) AND LETTER OF COMFORT ( LOC )
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 .
However letter of credits and guarantees may continued to be issued by A.D Category banks as per earlier permission . .
For RBI Notification , CLICK HERE
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 .
However letter of credits and guarantees may continued to be issued by A.D Category banks as per earlier permission . .
For RBI Notification , CLICK HERE
STATE BANK OF INDIA REDUCES MINIMUM BALANCES CHARGES
Dated 13.03.2018 : State Bank of India has reduced Minimum Balance Charges on the savings accounts balances with effect from 01.04.2018 .
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 .
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 .
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 .
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 COMPLIANT
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 .
Hence to get full service from your wallet , kyc compliance is must
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 .
Hence to get full service from your wallet , kyc compliance is must
RBI FORMS COMMITTEE TO SUGGEST WAYS TO PREVENT FRAUDS IN BANKS
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 .
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 )
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 .
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 )
Foe RBI Press release , CLICK HERE
A COMMON PLACE WHERE YOU CAN LODGE ALL YOUR COMPLAINTS :
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 .
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 ,
By CLICKING HERE , you may go to the link and lodge your compliant to the appropriate regulator .
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 .
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 ,
By CLICKING HERE , you may go to the link and lodge your compliant to the appropriate regulator .
STANDARD AND POOR'S RETAINS INDIAN SOVEREIGN RATING :
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 "
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 "
MOODY'S UPGRADES INDIAN SOVEREIGN RATING :
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 "
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 .
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 .
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 "
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 .
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 .
RBI DIRECTS BANKS TO EASE BANKING FACILITIES FOR SENIORS AND 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 :
1. Dedicated counters for senior citizens / differently abled persons
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 systems
3. Banks to issue minimum of 25 cheque leaves every year free of charge , without insisting on customer presence .
4. Banks to change status of account automatically on reaching of the age as per KYC submitted
5. Banks to allow operations of accounts by visually impaired persons with the help of two independent witnesses and authorisation
6. Banks to provide 15G/15H forms to enable the customers submit the same
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 .
Banks have been advised to implement the directions before 31.12.2017 .
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 :
1. Dedicated counters for senior citizens / differently abled persons
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 systems
3. Banks to issue minimum of 25 cheque leaves every year free of charge , without insisting on customer presence .
4. Banks to change status of account automatically on reaching of the age as per KYC submitted
5. Banks to allow operations of accounts by visually impaired persons with the help of two independent witnesses and authorisation
6. Banks to provide 15G/15H forms to enable the customers submit the same
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 .
Banks have been advised to implement the directions before 31.12.2017 .
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 .
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 .
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 .
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 .
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 "
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 .
. 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 .
OUR OPINION :
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 .
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 "
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 .
. 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 .
OUR OPINION :
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 .
RECORDING OF ADEQUATE DETAILS IN PASSBOOKS
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 .
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 .
For RBI Notification , CLICK HERE
RECORDING OF PPO NUMBERS ON PENSIONER'S PASSBOOKS
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 .
For RBI Notification , CLICK HERE
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AND TRANSACTIONS ABOVE RS 50,000
DATED 17.06.2017 : Government of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. Those who have already bank accounts have to link them with their Aadhar numbers before 31st , Dec , 2017 , failing which accounts will become invalid .
If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months . Small accounts can be opened without Aadhar with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
These rules are made effective through an amendment to The Prevention of Money Laundering ( Maintenance of Records ) Rules of 2005 . NOTE :
1. Reports do not indicate effects of these amendments to opening and operation of Non Resident accounts in Banks
2. While PAN Number or Form 60 was necessary for conducting transactions above Rs 50, 000 earlier , now Aadhar is required in lieu .
3. With linking of Aadhar , PAN and Bank accounts , it will be easy to monitor high value financial transactions for the government .
Dated 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 .
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 .
For RBI Notification , CLICK HERE
RECORDING OF PPO NUMBERS ON PENSIONER'S PASSBOOKS
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 .
For RBI Notification , CLICK HERE
AADHAR IS MANDATORY FOR OPENING BANK ACCOUNTS AND TRANSACTIONS ABOVE RS 50,000
DATED 17.06.2017 : Government of India made Aadhar mandatory for opening accounts with banks and also conducting any transactions with banks for more than Rs 50,000. Those who have already bank accounts have to link them with their Aadhar numbers before 31st , Dec , 2017 , failing which accounts will become invalid .
If you do not hold Aadhar card , you have to at least submit proof of enrollment of Aadhar for opening the bank accounts and submit the Aadhar number within six months . Small accounts can be opened without Aadhar with bank branches having core banking only and such small account holders have to furnish their Aadhar numbers within 24 months . However such accounts will be monitored very closely by the authorities against any suspicious overseas money transfers . Small accounts are the Savings Bank accounts with less than a turn over of Rs 1.00 lakh in a year , less than withdrawals and transfers Rs 10,000 per month and balance not exceeding Rs 50,000 at any time . For corporate accounts , authorised signatories of the accounts have to produce their Aadhar numbers .
These rules are made effective through an amendment to The Prevention of Money Laundering ( Maintenance of Records ) Rules of 2005 . NOTE :
1. Reports do not indicate effects of these amendments to opening and operation of Non Resident accounts in Banks
2. While PAN Number or Form 60 was necessary for conducting transactions above Rs 50, 000 earlier , now Aadhar is required in lieu .
3. With linking of Aadhar , PAN and Bank accounts , it will be easy to monitor high value financial transactions for the government .
ISSUE OF NEW BATCH OF 500 RUPEE VALUE CURRENCY NOTES WITH INSET LETTER " A "
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 .
For full details and press release dated 13.06.2017 , CLICK HERE
and Press Release dated 08.11.2016 , CLICK HERE
ISSUE OF NEW ONE RUPEE VALUE CURRENCY NOTES
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 of
1. Ashoka Pillar in the window without words " Satyameva Jayate " in Devanagari
2. Hidden Numeral " 1 " in centre
3. Hidden word " Bharat" in Devanagari vertically arranged on right side .
The colour of the note will be predominantly Pink Green in obverse and reverse in combination with others .
For full details and press release , CLICK HERE
TAX ON BANKING AND INSURANCE SERVICES TO GO UP UNDER NEW GST PROPOSAL
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 .
Further bank branches are to be registered State wise for GST purpose. earlier banks were registering their branch at their head quarters .
MORE FREQUENT NEFT SETTLEMENTS
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
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 .
For full details and press release dated 13.06.2017 , CLICK HERE
and Press Release dated 08.11.2016 , CLICK HERE
ISSUE OF NEW ONE RUPEE VALUE CURRENCY NOTES
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 of
1. Ashoka Pillar in the window without words " Satyameva Jayate " in Devanagari
2. Hidden Numeral " 1 " in centre
3. Hidden word " Bharat" in Devanagari vertically arranged on right side .
The colour of the note will be predominantly Pink Green in obverse and reverse in combination with others .
For full details and press release , CLICK HERE
TAX ON BANKING AND INSURANCE SERVICES TO GO UP UNDER NEW GST PROPOSAL
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 .
Further bank branches are to be registered State wise for GST purpose. earlier banks were registering their branch at their head quarters .
MORE FREQUENT NEFT SETTLEMENTS
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
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 .
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 .
