All in one Banking-All about banking just a click away.

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November 04,2024.

Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption due on November 04, 2024 (Series I of SGB 2018-19)

Excerpts:

The next due date of premature redemption of the above tranche shall be November 04, 2024.

The redemption price for premature redemption due on November 04, 2024, shall be Rs7,929/- (Rupees Seven Thousand Nine Hundred and Twenty-Nine only) per unit of SGB.

Read RBI press release.

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October 11,2024.

Monetary Policy Statement, 2024-25 Resolution of the Monetary Policy Committee (MPC) October 7 to 9, 2024.

Excerpts:

The Monetary Policy Committee (MPC) at its meeting today (October 9, 2024) decided to:

Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.

Standing deposit facility (SDF) rate remains unchanged at 6.25 per cent

Marginal standing facility (MSF) rate and the Bank Rate remains unchanged at 6.75 per cent.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.

Read here RBI Press Release dated 09-10-2024.

Latest RBI Policy Rates-Repo Rate, Bank Rate, CRR, SLR etc---
Updated on October 09, 2024.
Details Percentage
Policy Repo Rate 6.50
Standing Deposit Facility Rate(SDFR) 6.25
Marginal Standing Facility Rate 6.75
Bank Rate 6.75
Fixed Reverse Repo Rate 3.35
Cash Reserve Ratio(CRR) 4.50
Statutory Liquidity Ratio(SLR) 18.00


Know more about Repo Rate,Bank Rate,Reverse Repo Rate,
cash Reserve Ratio,Standing Liquidity Ratio etc


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October 10,2024.

We are entering the crucial second half of the financial year 2024-25.
It is the time to reassess our income and investments to reduce our tax liability.
One may make use of the following sections to decide on investments



Inportant sections for claiming deductions from Income
Section 80C: Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

Section 80CCA -Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan.

Section 80CCB-Deduction in respect of investment made under Equity Linked Savings Scheme.

Section 80CCC-Deduction in respect of contribution to certain pension funds.

Section 80CCD-Deduction in respect of contribution to pension scheme of Central Government

Section 80CCE-Limit on deductions under sections 80C, 80CCC and 80CCD.

Section 80CCF:Deduction in respect of subscription to long-term infrastructure bonds.

Section 80CCG-Deduction in respect of investment made under an equity savings scheme.

Section 80D-Deduction in respect of health insurance premia.

Section 80DDB-Deduction in respect of medical treatment, etc.

Section 80E:Deduction in respect of interest on loan taken for higher education. U/S 80E of Income Tax Act 1961

Section 80EE-Deduction in respect of interest on loan taken for residential house property.

Section 80EEA-Deduction in respect of interest on loan taken for certain house property.

Section 80G-Deduction in respect of donations to certain funds, charitable institutions, etc.

Section 80GG-Deductions in respect of rents paid.

Section 80TTA-Deduction in respect of interest on deposits in savings account.

Section 80TTB-Deduction in respect of interest on deposits in case of senior citizens.

Section 87-Rebate to be allowed in computing income-tax.

Section 87A-Rebate of income-tax in case of certain individuals.

Section 89:Relief when salary, etc., is paid in arrears or in advance.

Read more though related to FY 2023-24 .

Caution:Only important sections are taken and subject to change.
It is for personal use only.
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Date:October 08,2024.

Expected DA and Salary for Bank Officers,Customer Service Assistants and Office Assistants from November 2024.
Assuming no change in CPI(IW) for September 2024.

1.Bank Officers.

2.Customer Service Associates (Clerk).)

3.Bank Office Assistants(Sub-Staff).)

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RBI Press Release: Gold loans - Irregular practices observed in grant of loans against pledge of gold ornaments and jewellery

Excerpts:
The major deficiencies include
  • (i) shortcomings in use of third parties for sourcing and appraisal of loans;
  • (ii) valuation of gold without the presence of the customer;
  • (iii) inadequate due diligence and lack of end use monitoring of gold loans;
  • (iv) lack of transparency during auction of gold ornaments and jewellery on default by the customer;
  • (v) weaknesses in monitoring of LTV; and
  • (vi) incorrect application of risk-weights, etc.

    Read here RBI Press Release.

    Illustrative list of deficiencies observed during review of gold loans in select SEs
  • In loans granted through partnership with Fintech entities/ business correspondents (BC), practices such as valuation of gold being carried out in the absence of customer, credit appraisal and valuation done by the BC itself, gold stored in the custody of BC, delayed and insecure mode of transportation of gold to the branch, KYC compliance being done through Fintechs, use of internal accounts for disbursement as well as repayment of loans were observed.
  • Lack of a robust system for periodical LTV monitoring with instances of breach of regulatory LTV ceilings observed in some SEs. System generated alerts, where available, were not pursued actively to address the breach in LTV ceiling.
  • Application of risk weights were at variance with the prudential regulations.
  • End use of funds was usually not verified for non-agriculture loans. Lack of proof or proper documentation obtained and retained in respect of agriculture gold loans.
  • Lack of a specific identifier for top up gold loans in the Core Banking System / Loan Processing System with the SEs mostly to facilitate evergreening of loans. Also, no fresh appraisal was done at the time of sanctioning these top up loans.
  • Many loan accounts were closed within a short time from sanction, i.e. within a few days raising doubts over the economic rationale for such action.
  • Average realisation from auction of gold on default by the customer was low in certain SEs than the estimated value of gold, reflecting among other things, gaps in valuation process.
  • Share of gold loans disbursed in cash to total gold loans disbursed was high in some entities and the statutory limit specified under the Income Tax Act, 1961 on cash mode of disbursal was not adhered to in many cases.
  • Weak governance and transaction monitoring as instances of unusually high number of gold loans being granted to the same individual with the same PAN during a financial year.
  • Practice of rolling over loans at the end of tenor, with only part payment.
  • Non-categorisation of gold loans as NPA in the system, evergreening by renewing overdue loans/issuing a fresh loan, inadequate monitoring by Senior Management/ Board and inadequate or absence of controls over third-party entities.

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    Deposit Interest Rates-Public Sector Banks

    Updated on 30.09.2024.

    Banks 1 Year 3 years
    5 years
    Max Interest
    Bank of Baroda 6.85
    7.15 6.50 7.30-399 days
    Bank of India 6.80
    6.50 6.00 7.30 400d)
    Canara Bank 6.85
    6.80 6.70 7.25-444d
    Central Bank 6.85
    6.75 6.50 7.45 444 days
    Indian Bank 6.10
    6.25 6.25 7.25-400d
    Indian Overseas Bank 7.10
    6.50 6.50 7.30-444d
    Punjab National Bank 6.80
    7.00 6.50 7.25-400d
    Punjab and Sind Bank 6.30
    6.00 6.00 7.30-666d
    UCO Bank 6.50
    6.30 6.20 7.30-333 days
    Union Bank 6.80
    6.70 6.50 7.40-333d
    State Bank of India 6.80
    6.75 6.50 7.10-400d
    IDBI Bank. 6.80
    6.50 6.50 7.35-444d
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Deposit Interest-Private Banks.
    Top Home
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    Deposit Interest Rates-Private Sector Banks

    Updated on 30.09.2024.

    . . . . . . . . . . . . .
    Banks 1 Year 3 years
    5 years
    Max Interest
    Catholic Syrian Bank 5.00
    5.75 5.75 7.75-401 dys
    CityUnion Bank 7.00
    6.50 6.25 7.50-333 dys)
    Dhanalakshmi Bank 6.75
    6.50 7.25 7.25-555 d
    Federal Bank 6.80
    7.00 6.60 7.40-777 dys
    Jammu and kashmir Bank 7.00
    6.75 6.50 7.00 1yr
    Karnataka Bank 7.35
    6.50 6.50 7.50-375 dys
    Ratnakar Bank 7.50
    7.50 7.10 8.10-500 dys
    Karur Vysya Bank 7.00 7.00 7.00 7.50-444 days
    DBS Bank 7.00 6.50 6.50 7.50-376 days
    Nainital Bank 6.70
    6.25 5.75 7.05 400 dys
    South Indian Bank 6.70 6.70 6.00 7.25-400 days
    DCB Bank 7.10 7.55 7.40 8.05-19 months
    HDFC Bank 6.60 7.00 7.00 7.40-4yr 7 Months
    ICICI Bank 6.70 7.00 7.00 7.25-15 months
    Kotak Mahindra Bank 7.10 7.00 6.20 7.40-390 dys
    Axis Bank 6.70 7.10 7.00 7.25-15 Months
    Standard Charted Bank 7.50 7.10 6.75 7.50-1 yr
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Deposit Interest Public Sector Banks.
    Top Home
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    September 24,2024.

    RBI Press Release dated September 20,2024
    Rate of interest on Government of India Floating Rate Bond 2033

    The rate of interest on Government of India Floating Rate Bond 2033 (GOI FRB 2033) applicable for the half year September 22, 2024 to March 21, 2025 shall be 7.93 percent per annum. It may be recalled that FRB 2033 carries a coupon, which has a base rate equivalent to the average of the Weighted Average Yield (WAY) of last three auctions (from the rate fixing day, i.e., September 22, 2024) of 182 Day T-Bills, plus a fixed spread (1.22 percent)

    Read here the press release

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    September 22,2024.

    RBI Bulletin-September 2024


    Read the Bulletin here.

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    September 14,2024.

    Sovereign Gold Bond-Premature Closure.


    What is Sovereign Gold Bond.?

    To know click here.
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    Date : August 27,2024.

    Sovereign Gold Bond (SGB) Scheme Calendar for

    premature redemption during October 2024 – March 2025

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    Dated August 25,2024.

    Government approves " Unified Pension Scheme".

    The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, approved the Unified Pension Scheme (UPS).

    The salient features of the UPS are:

    Assured pension:
    50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years. This pay is to be proportionate for lesser service period upto a minimum of 10 years of service.

    Assured family pension: @60% of pension of the employee immediately before her/his demise.

    Assured minimum pension: @10,000 per month on superannuation after minimum 10 years of service.

    Inflation indexation: on assured pension, on assured family pension and assured minimum pension

    Dearness Relief
    based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees

    lump sum payment at superannuation in addition to gratuity 1/10th of monthly emoluments (pay + DA) as on the date of superannuation for every completed six months of service

    This payment will not reduce the quantum of assured pension

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    August 21,2024.

    Omnibus Framework for recognising Self-Regulatory Organisations (SROs) for Regulated Entities (REs) of the Reserve Bank of India (issued by Department of Regulation on March 21, 2024)
    Read here RBI press release


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    Deposit Interest Rates-Public Sector Banks

    Updated on 15.08.2024.
    Banks 1 Year 3 years
    5 years
    Max Interest
    Babk of Baroda 6.85
    7.15 6.50 7.25-399 days
    Bank of India 6.80
    6.50 6.00 7.30-666d)
    Canara Bank 6.85
    6.80 6.70 7.25-444d
    Central Bank 6.75
    6.50 6.25 7.00-2yr
    Indian Bank 6.10
    6.25 6.25 7.25-400d
    Indian Overseas Bank 7.10
    6.50 6.50 7.30-444d
    Punjab National Bank 6.80
    7.00 6.50 7.25-400d
    Punjab and Sind Bank 6.30
    6.00 6.00 7.30-666d
    UCO Bank
    Union Bank 6.80
    6.70 6.50 7.40-333d
    State Bank of India 6.80
    6.75 6.50 7.10-400d
    IDBI Bank. 6.80
    6.50 6.50 7.35-444d
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Deposit Interest-Private Banks.
    Top Home

    Deposit Interest Rates-Private Sector Banks

    Updated on 17.08.2024.(interest % per annum)
    Banks 1 Year 3 years
    5 years
    Max Interest
    Catholic Syrian Bank 5.00
    5.75 5.75 7.10-750days
    CityUnion Bank 7.00
    6.50 6.25 7.25-400 days
    Dhanalakshmi Bank 6.75
    6.50 7.25 7.25-555 days
    Federal Bank 6.80
    7.00 6.60 7.40-777 days
    Jammu and kashmir Bank 7.00
    6.75 6.50 7.05 1yr
    Karnataka Bank 7.10
    6.50 6.50 7.25-375 days
    Ratnakar Bank 7.50
    7.50 7.10 8.10-500 days
    Karur Vysya Bank 7.00 7.00 7.00 7.60-760 days
    DBS Bank 7.00 6.50 6.50 7.50-376 days
    Nainital Bank 6.70
    6.25 5.75 7.05 400days
    South Indian Bank 6.70 6.70 6.00 7.25-400 days
    DCB Bank 7.10 7.55 7.40 8.05-19 months
    HDFC Bank 6.60 7.00 7.00 7.40-4yr 7months
    ICICI Bank 6.70 7.00 7.00 7.25-15 months
    Kotak Mahindra Bank 7.10 7.00 6.20 7.40-390days
    Axis Bank 6.70 7.10 7.00 7.20-17 Months
    Standard Charted Bank 7.50 7.10 6.75 7.50-2yr
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Deposit Interest Public Sector Banks.
    Top Home
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    August 09,2024.

    Premature redemption under Sovereign Gold Bond (SGB) Scheme- Redemption Price for
    premature redemption due on August 12, 2024 (Series VI of SGB 2018-19)



    Monetary Policy Statement, 2024-25 Resolution of the Monetary Policy Committee (MPC) August 6 to 8, 2024



    Bank Employees-Officers, Clerks and Sub-Staff Revised Dearness Allowance Chart(D.A). From August 2024 to October 2024





    Dearness Allowance slabs and percentage step by step calculations.



    DA to pensioners payable from August 2024.

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    August 05,2024.

    Draft Circular - Regulatory Principles for Management of Model Risks in Credit.


    Excerpts from RBI Circular:
    Regulatory Principles for Management of Model Risks in Credit
  • Regulated Entities (REs) use various models as part of credit management life cycle for borrower selection, credit scoring/ rating, pricing, risk management, credit loss provisions etc. Inherently, model outputs are exposed to uncertainties as they are based on assumptions which may not manifest in the envisaged ways and may take different forms in a real-world scenario. This potentially exposes the REs to model risk, which has implications on prudential aspects of credit risk management, compliance and reputational risk. While the application of technology in models has facilitated faster decision-making under complex scenarios, it also adds complexity to the model risk management framework implying the need for a comprehensive understanding, a robust validation mechanism as well as appropriate governance and oversight.
  • . With a view to ensuring prudence and robustness, in the use of such models, it has been decided to lay down certain broad regulatory principles as provided in the Annex which shall be adopted by the REs
  • The circular shall come into force within three months from the date of issuance. New credit models to be adopted by REs shall follow these guidelines with effect from the above date and the existing models shall be validated in terms of these guidelines within six months from the date of issuance of this circular.

  • Read more
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    RBI Press release dated July 31,2024.Excerpts:

    Draft Framework on Alternative Authentication Mechanisms for Digital Payment Transactions


    Over the years, the Reserve Bank of India has prioritised security of digital payments, in particular the requirement of Additional Factor of Authentication (AFA) for making payments.
    No specific factor was mandated for authentication, but the digital payments ecosystem has primarily adopted SMS-based OTP as AFA.
    While OTP is working satisfactorily, technological advancements have made available alternative authentication mechanisms.
    Therefore, as announced in the Statement on Developmental and Regulatory Policies dated February 08, 2024, RBI has today released a draft “Framework on Alternative Authentication Mechanisms for Digital Payment Transactions” to enable the ecosystem to adopt alternative authentication mechanisms.
    This will widen the choice of authentication factors available to Payment System Operators and users.
    Comments / feedback on the draft framework may be sent by email or by post to the Chief General Manager-in-Charge, Department of Payment and Settlement Systems, Reserve Bank of India, Central Office, 14th Floor, Shahid Bhagat Singh Marg, Mumbai-400001, on or before September 15, 2024.
    Read here RBI press release.

    Aadhaar Enabled Payment System – Due Diligence of AePS Touchpoint Operators - DRAFT DRAFT DIRECTIONS FOR COMMENTS

    Read RBI circular here
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    Budget 2024-New Income Tax Slabs and Rates.
    New Tax Regime FY 2024-25.

    Sl No Income Slabs Tax Rate 
    1 Rs 0 -3,00,000 Nil
    2 Rs3,00,001-7,00,000 5%
    3 Rs7,00,001-10,00,000 10%
    4 Rs10,00,001-12,00,000 15%
    5 Rs12,00,001-15,00,000 20%
    6 Above Rs15,00,000 30%

    Standard Deductions increased from Rs50000 to Rs75000.

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    Date:July 23, 2024.

    Budget 2024


    Budget 2024-Finance Minister Speech.


    Key to Budget Document 2024


    Key Budget Features.


    Finance (No 2) Bill 2024.


    MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2024


    ANNUAL FINANCIAL STATEMENT OF THE CENTRAL GOVERNMENT FOR 2024-2025



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    Date:July 17, 2024.

    Financial Action Task Force (FATF) High risk and other monitored jurisdictions-June 28, 2024

    Read more from RBI Press release
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    July 16, 2024.

    Master Directions on Fraud Risk Management in Commercial Banks (including Regional Rural Banks) and All India Financial Institutions

    RBI press release dated July 15, 2024.
    The Chairman / Managing Director / Chief Executive Officer All Commercial Banks (including Regional Rural Banks) All India Financial Institutions (AIFIs)*

    Madam / Dear Sir,

    Master Directions on Fraud Risk Management in Commercial Banks (including Regional Rural Banks) and All India Financial Institutions

    Please find enclosed as Annex ‘Reserve Bank of India (Fraud Risk Management in Commercial Banks (including Regional Rural Banks) and All India Financial Institutions) Directions, 2024’ issued in exercise of the powers conferred under Chapter III-A and Chapter III-B of the Reserve Bank of India Act, 1934, and Section 21 and Section 35A of the Banking Regulation Act, 1949. These Directions shall supersede the earlier Directions on the subject, namely, the Reserve Bank of India (Frauds - Classification and Reporting by commercial banks and select FIs) Directions 2016 (Ref.DBS.CO.CFMC.BC.No.1/23.04.001/2016-17) dated July 01, 2016 (Updated as on July 03, 2017). Yours faithfully (Rajnish Kumar) Chief General Manager Read more.
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    July 10, 2024.

    Regulation of Foreign Trade under Foreign Exchange Management Act (FEMA), 1999 – DRAFT REGULATIONS AND DIRECTIONS

    RBI Press release dated July 02,2024.
    Over the years, the Reserve Bank has been progressively liberalising policies governing foreign exchange transactions, under FEMA, 1999. In continuation of these efforts, as announced in the Statement on Developmental and Regulatory Policies of June 2024, it has been decided to rationalise regulations that cover export and import transactions. The proposed regulations are intended to promote ease of doing business, especially for small exporters and importers. They are also intended to empower Authorised Dealer banks to provide quicker and more efficient service to their foreign exchange customers. The draft regulations under FEMA and directions to Authorised Dealer banks are available for public response. Comments/feedback on the draft proposals (regulations as well as directions) may be forwarded via email by September 01, 2024, with the subject line "Feedback on draft regulations and directions on export and import under FEMA".

    More

    Draft - Export and Import of Goods and Services

    Draft - Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2024

    Master Direction – Import of Goods and Services (Updated as on March 01, 2024
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    Deposit Interest Rates-Public Sector Banks

    Updated on 07.06.2024.
    Banks 1 Year 3 years
    5 years
    Max Interest
    Babk of Baroda 6.85
    7.25 6.50 7.25->2yr)
    Bank of India 6.80
    6.50 6.00 7.30-666d)
    Canara Bank 6.85
    6.80 6.70 7.25-444d
    Central Bank 6.75
    6.50 6.25 7.00-2yr
    Indian Bank 6.10
    6.25 6.25 7.25-400d
    Indian Overseas Bank 6.90
    6.50 6.50 7.30-444d
    Punjab National Bank 6.75
    7.00 6.50 7.25-400d
    Punjab and Sind Bank 6.20
    6.00 6.00 7.25-444d
    UCO Bank
    Union Bank 6.75
    6.50 6.50 7.25-399d
    State Bank of India 6.80
    6.75 6.50 7.00-2 yr
    IDBI Bank. 6.80
    6.50 6.50 7.00->2 yr
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Deposit Interest-Private Banks.
    Top Home
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    Deposit Interest Rates-Private Sector Banks

    Updated on 07.06.2024.
    Banks 1 Year 3 years
    5 years
    Max Interest
    Catholic Syrian Bank 5.00
    5.75 5.75 7.75-401 dys
    CityUnion Bank 7.00
    6.50 6.25 7.00-400 dys)
    Dhanalakshmi Bank 6.75
    6.50 7.25 7.25-555 d
    Federal Bank 6.80
    7.00 6.60 7.40-400 dys
    Jammu and kashmir Bank 7.05
    6.50 6.50 7.05 1yr
    Karnataka Bank 7.10
    6.50 6.50 7.25-445 dys
    Ratnakar Bank 7.50
    7.50 7.10 8.00-546 dys
    Karur Vysya Bank 7.00 7.00 7.00 7.50-444 days
    DBS Bank 7.00 6.50 6.50 7.50-376 days
    Nainital Bank 6.70
    6.25 5.75 6.70 1yr
    South Indian Bank 6.70 6.70 6.00 7.25-400 days
    DCB Bank 7.10 7.55 7.40 8.05-19 months
    HDFC Bank 6.60 7.00 7.00 7.25-18 Months
    ICICI Bank 6.70 7.00 7.00 7.20-18 months
    Kotak Mahindra Bank 7.10 7.00 6.20 7.30-23 months
    Axis Bank 6.70 7.10 7.00 7.20-17 Months
    Standard Charted Bank 7.15 7.10 6.75 7.15-90 Days
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Deposit Interest Public Sector Banks.
    Top Home
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    June 05, 2024.

    -Effect of Interest change on Home Loan EMI and Loan repayment Period.

    Have you ever thought of the effect of Increse in interest and its effect on Loan repayment period?
    Many might not have thought of this aspect while availing the Home Loan.
    They may be under the impression that whenever increase in Interest rate ,Bank will automatically extend the loan period ,keeping the EMI fixed at the time of sanction of the loan as constant.
    But how long the EMI Period will extend-Do you have any idea ?
    Many may not have any idea on the effect of interest on EMI/LOAN Period. Will you ever imagine that your Loan taken on 20 years may even extend beyond 40 years if the interest is revised upward by mere 1.50 % ? Don't get shocked-Just go through the table to make an informed decision on loan repayment period and EMI.

    Effect of Interest change on Home Loan Period
    Table 1-(Constant EMI Payment 9650 )
    Initial Loan 10,00,000 :Period 20 Yrs :Interest 10 % p.a :EMI 9650
    InterestEMIInt PaymentPrn PaymentPrd Initial (Yrs)Prd Revised (Yrs)Extra EMI Prd (Yrs)
    10.0096508333131720.0020.0000.00
    10.2596508542110820.0021.2001.20
    10.509650875090020.0022.7002.70
    10.759650895869220.0024.6004.60
    11.009650916748320.0027.3007.30
    11.259650937527520.0031.8011.80
    11.50965095836720.0043.4023.40
    11.7596509792-14220.00Perfectual payment as Interest is more than EMI.
    12.00965010000-35020.00
    Effect of Interest change on Home Loan EMI
    Table 2- (Constant Loan Period 20 Years)
    Initial Loan 10,00,000 :Period 20 Yrs :Interest 10 % p.a :EMI 9650
    Interest oldInterest RevisedEMI oldEMI RevisedIncrease in EMI
    10.0010.009650965000.00
    10.0010.2596509816166.00
    10.0010.5096509984334.00
    10.0010.75965010152502.00
    10.0011.00965010322672.00
    10.0011.25965010493843.00
    10.0011.509650106641014.00
    10.0011.759650108371187.00
    10.0012.009650110111361.00

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    June 04, 2024.
    RBI Press release:

    --Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption due on June 04, 2024 (Series X of SGB 2017-18)


    In terms of GOI Notification F.No.4(25) - W&M/2017 dated October 06, 2017 (SGB 2017-18 Series X - Issue date December 04, 2017) on Sovereign Gold Bond Scheme, premature redemption of Gold Bond may be permitted after fifth year from the date of issue of such Gold Bond on the date on which interest is payable. Accordingly, the next due date of premature redemption of the above tranche shall be June 04, 2024.

    2. Further, the redemption price of SGB shall be based on the simple average of closing gold price of 999 purity of previous three business days from the date of redemption as published by the India Bullion and Jewellers Association Ltd (IBJA). Accordingly, the redemption price for premature redemption due on June 04, 2024, shall be ₹7208/- (Rupees Seven Thousand Two Hundred and Eight only) per unit of SGB based on the simple average of closing gold price for three business days i.e., May 30, 31 and June 03, 2024. Ajit Prasad Deputy

    More

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    May 30, 2024.

    Premature redemption under Sovereign Gold Bond (SGB) Scheme- Redemption Price for premature redemption due on May 27, 2024 (Series IX of SGB 2017-18)

    Excerpts from RBI press release dated May 24, 2024.
    The next due date of premature redemption of the above tranche shall be May 27, 2024.
    The redemption price for premature redemption due on May 27, 2024, shall be Rs 7296/-

    The issue price of the above bond was Rs 2964.
    Your return on the investment works out to be 7296-2964=Rs 4332/-(146 %)

    More

    Sovereign Gold Bond Scheme of the Government of India (GoI) - Procedural Guidelines - Consolidated (Updated as on October 04, 2022)

    "Swarna Bharath"-Here find all press releases from RBI on Sovereign Gold Bond Scheme.


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    May 28, 2024

    Archives-our earlier postings.


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    Safe Deposit Locker/Safe Custody Article Facility provided by the banks - Revised Instructions

    Have you exercised your right to nominate for you Bank SB , Deposit and Locker Accounts ? If not do it immediately. If your accounts have a nominee it is easier for your nominee to claim and receive the funds remaining in your account or the articles kept in your locker.With minimum paper work banks will settle the claims. Without nominee , settlement of claim to the legal heirs may require submission of more documents like succession certificate, letter of administration or probate, etc. It will be prudent to add nominee to all your accounts with the bank to avoid complication in future .

    Read More

    List of important sections and maximum deduction permissible

    >
    Section 80C:
    Investments in PF,CPF ,LIC,PPF,ULIP,NSC , NSC Accrued Interest and other admissible deductions
    1,50,000.
    Section 80CCC:
    Deduction in respect of contribution to certain pension funds
    1,50,000.
    Section 80CCD:
    Deduction in respect of contribution to pension scheme of Central Government
    2,00,000. (Including 50,000 deduction available u/s 80CCD(1B)
    Combined Maximum u/s 80C,80CCC and 80CCD1,50,000.
    Section 80CCD(1B)
    National Pension Scheme
    50,000 ( Over and above the ceiling 1,50,000 under secion 80C,80CCC and 80CCD.)
    Section 80D :
    Medical Insurance Premium self(age less <60 )
    max 25000.
    Section 80D :
    Medical Insurance Premium self(senior citizen)
    max 50000.
    Section 80D :
    Medical Insurance Premium Parents (age <60)
    max 25000.
    Section 80D :
    Medical Insurance Premium Parents (senior citizens)
    max 50000.
    Section 80D :
    Insurance Premium children
    max 25000.
    Section 80D :
    Aggregate amount of deduction
    cannot exceed Rs.1,00,000 in any case U/S 80D
    Section 80DD :
    Treatment of Physically Disabled Dependent
    max 125000 for severe disability
    and 75,000 for others
    Section 80DDB:
    Treatment of Specified Diseases
    max 1,00,000 for senior citizen
    and 40,000 for others
    Section 80E:
    Education Loan Interest Paid
    Entire amount of interest paid.
    section 80U:
    Physical disability of tax payer
    max 125000 for severe disability
    and 75,000 for others.
  • The displayed results are indicative in nature and for personal use only.
  • Only important sources of Income and Expenses / Investments are included.
  • Before taking any decision on taxability please refer relevant Rules / Acts or seek the advise of Tax Consultants.
  • Mail your suggestions / comments to ssm_dindigul@yahoo.co.in
  • or send through contact page - "Contact us" ----Subramanian
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  • Date:April 18, 2024.

    Key Facts Statement (KFS) for Loans & Advances

    Excerpts from RBI Circular:

    It has been decided to harmonize the instructions on the subject. This is being done in order to enhance transparency and reduce information asymmetry on financial products being offered by different regulated entities, thereby empowering borrowers for making an informed financial decision. The harmonised instructions shall be applicable in cases of all retail and MSME term loan products extended by all regulated entities (REs). For the purpose of this circular, following terms have been defined:
  • (a) Key Facts of a loan agreement between an RE/a group of REs and a borrower are legally significant and deterministic facts that satisfy basic information required to assist the borrower in taking an informed financial decision.
  • (b) Key Facts Statement (KFS) is a statement of key facts of a loan agreement, in simple and easier to understand language, provided to the borrower in a standardised format.
  • (c) Annual Percentage Rate (APR) is the annual cost of credit to the borrower which includes interest rate and all other charges associated with the credit facility.
  • (d) Equated Periodic Instalment (EPI) is an equated or fixed amount of repayments, consisting of both the principal and interest components, to be paid by a borrower towards repayment of a loan at periodic intervals for a fixed number of such intervals; and which result in complete amortisation of the loan. EPIs at monthly intervals are called EMIs.
  • Read more.

    You may read this also - Master Direction-Reserve Bank of India (Regulatory Framework for Microfinance Loans) Directions, 2022.

    Regulation of Payment Aggregators (PAs) – Draft Directions"


    Date:April 01,2024.

    Master Circular - Disbursement of Government Pension by Agency Banks

    Excerpts:
    Withdrawal of pension by old/ sick/ disabled/ incapacitated pensioners
  • In order to take care of problems/ difficulties faced by sick and disabled pensioners in withdrawal of pension / family pension from the banks, agency banks may categorize such pensioners as under:
  • 1.Pensioner who is too ill to sign a cheque / unable to be physically present in the bank.
  • 2.Pensioner who is not only unable to be physically present in the bank but also not even able to put his/her thumb impression on the cheque/ withdrawal form due to certain physical defect /incapacity.
  • With a view to enabling such old/sick/incapacitated pensioners to operate their accounts, banks may follow the procedure as under:
  • Wherever thumb or toe impression of the old/sick pensioner is obtained, it should be identified by two independent witnesses known to the bank, one of whom should be a responsible bank official.
  • Where the pensioner cannot even put his/her thumb/ toe impression and also would not be able to be physically present in the bank, a mark can be obtained on the cheque/withdrawal form, which should be identified by two independent witnesses, one of whom should be a responsible bank official.
    Read more

  • Amendment to the Master Direction - Credit Card and Debit Card-Issuance and Conduct Directions, 2022

    Excerpts:

    The card-issuers shall put in place an effective mechanism to monitor end use of funds.

    Failure on the part of the card-issuers to complete the process of closure within seven working days shall result in a penalty of ₹500 per calendar day of delay payable to the cardholder, till the closure of the account provided there is no outstanding in the account.

    Card-issuers shall inform the cardholders of the implications of paying only 'the minimum amount due'.

    Card-issuers shall report a credit card account as 'past due' to credit information companies (CICs) or levy penal charges, viz. late payment charges and other related charges, if any, only when a credit card account remains 'past due' for more than three days

    Cardholders shall be provided option to modify the billing cycle of the credit card at least once, as per the cardholders’ convenience.

    Before reporting default status of a credit cardholder to a Credit Information Company (CIC), the card-issuers shall ensure that they adhere to the procedure, approved by their Board, and intimate the cardholder prior to reporting of the status.

    If a complainant does not get satisfactory response from the card-issuer within a maximum period of 30 days from the date of lodging the complaint, he/she will have the option to approach the Office of the RBI Ombudsman under Integrated Ombudsman Scheme for redressal of his/her grievance/s.

    Read here the amended master directions

    Read FAQ on the above subject to answer your queries.



    March 16, 2024.

    Revised Dearness Allowance rates as per 12th Bipartite Settlement/ 9th Joint Note dated 08.03.2024

    IBA released circular giving DA rates from November 2022 to July 2024 under 12th Bipartite Settlement/ 9th Joint Note dated 08.03.2024

    Read the circular here.

    March 14, 2024.

    Exgratia to Bank Officers , Clerks and Sub-Staff as per "12th Bipartite Settlement" / Bank Officers' salary revision "Joint Note 9" Calculator

    Click here for Exgratia Calculator.



    March 02, 2024.

    Master Direction Reserve Bank of India (Bharat Bill Payment System) Directions, 2024.

    Reserve Bank of India today released Master Directions on "Reserve Bank of India (Bharat Bill Payment System) Directions, 2024."
    Read the details here.

    January 10, 2024.

    Are you thinking of investments for Income Tax purpose ?

    Less than three months for the current final year 2023-24 to end. You may be interested to know your tax liability and the ways to invest and reduce your tax
    . Follow the link given below to know the deductions available under various sections of relevant acts.

    Income tax deductions available for FY2023-24

    Date:July 12,2023.

    National Savings Certificates (NSC ) VIII th Issue -
    New Investment and Interest accrued eligible for deduction U/S 80C
    Financial Year 2023-24.

    Click here for calculator


    Which Tax Regime beneficial to you for the current FY 2024-25? - Use this calculator to make your decision.


    February 02,2023.

    Income tax fy 2023-24 (ay 2024-25) finance act and important links


    India Budget Website.

    TAX DEDUCTION FROM SALARIES U/S 192 OF THE INCOME-TAX ACT, 1961 - FINANCIAL YEAR 2022-23.
     

    Some Important Sections


    Deduction u/s 80C in respect of life insurance premia, contributions to provident fund, etc.

    Deduction U/S 80CCA in respect of deposits under National Savings Scheme

    Deduction U/S 80CCB in respect of investment made under Equity Linked Savings Scheme.

    Deduction U/S 80CCC in respect of contribution to certain pension funds.

    Deduction U/S 80CCD in respect of contribution to pension scheme of Central Government.

    Section 80CCE :Limit on deductions under sections 80C, 80CCC and 80CCD.

    Section 80CCF Deduction in respect of subscription to long-term infrastructure bonds. 80CCF

    Section 80CCG-Deduction in respect of investment made under an equity savings scheme.

    Section 80D-Deduction in respect of health insurance premia.

    Section 80DDB-Deduction in respect of medical treatment, etc.

    Deduction U/S 80E in respect of interest on loan taken for higher education.

    Deduction U/S 80EE in respect of interest on loan taken for residential house property.

    Deduction U/S 80EEA in respect of interest on loan taken for certain house property.

    Deduction U/S 80G in respect of donations to certain funds, charitable institutions, etc.

    Deductions U/S 80GG in respect of rents paid.

    Deductions U/S 80TTA CA-Deductions in respect of other incomes -Deduction in respect of interest on deposits in savings account..

    Deductions U/S 80TTB-Deduction in respect of interest on deposits in case of senior citizens. .

    Deductions U/S 80U-Deduction in case of a person with disability..

    Deductions U/S 87-Rebate to be allowed in computing income-tax..

    Deductions U/S 87A-Rebate of income-tax in case of certain individuals..

    Deductions U/S 89-:Relief when salary, etc., is paid in arrears or in advance..
     


    Settlement of Claims of Deceased Depositors:
    Nomination facility simplifies the procedure for settlement of claims of deceased depositors as banks get a valid discharge by making payment of the balance outstanding in a depositor's account at the time of his death or delivering contents of locker or articles kept in safe custody to the nominee.
    A joint account opened as "Either or Survivor" or "Anyone or Survivors" or "Former or Survivor" or "Latter or Survivor" will permit the surviving account holder(s) to have unimpeded access to the credit balance in the account for withdrawal if one of the co-account holders dies.
    Depending on the nature of claimant- Nominee, Survivor, legal heirs etc and amount of claim you may be required to submit among other documents
  • Claim form duly filled in and signed by the claimant.
  • Proof of death of depositor(s) or hirer(s) ,as the case may be.
  • Proof of identification of nominee(s), survivor, legal heirs, as the case may be.
    Nature of documents required to be submitted may not be the same for all banks. You are advised to consult the concerned bank for detailed procedure and documents required to be submitted.

  • To read more on the subject :

    Nomination for bank accounts / Lockers.

    Indian Banks Association -Model Operational Procedure for Settlement of Claims of Deceased Depositors ; Return of Articles in Safe Deposit Lockers/ Safe Custody.

    State Bank of India- FAQ Deceased Accounts.

    Punjab National Bank-Settlement Of Claims Pertaining To Deceased.

    New Pension Scheme for Public Sector Banks and Private Banks in India- Joining Bank on or after 01.04.2010
    Salient features:
  • There shall be no separate Provident Fund for employees joining the services of the bank on or after 01.04.2010.
  • Employees joining on or after 01.04.2010 will be covered under "The Defined Contributory Pension Scheme" as governed by the provisions of New Pension Scheme [NPS] introduced for employees of Central Government w.e.f 01.01.2004, available under "All Citizens Model" and as modified from time to time.
  • The new Pension Scheme will work on defined contribution basis and will have two Tiers i.e. Tier I & II
  • The contribution to Tier I will be mandatory for all the members of the scheme whereas contribution to Tier II will be optional and at the discretion of the employee.
  • The Employees shall contribute 10% of the Basic pay and Dearness Allowance towards the Defined Contributory Pension Scheme and the bank shall make 14% contribution in respect of these employees.
  • The scheme shall be regulated and administered by Pension Fund Regulatory And Development Authority (PFRDA) Contribution in Tier I will be kept in non-withdrawable Pension Account. There will be a Central Record Keeping Agency.
  • There will be three Pension Fund Managers namely : a) LIC Pension Fund Limited b) SBI Pension Fund Limited c) UTI Retirement Solutions Limited
  • The deployment of Funds will be done by NPS Trustees among LIC Pension Fund Limited, SBI Pension Fund Limited and UTI Retirement Solutions Limited.
  • Exit from NPS would be governed by" employer - employee" relation but within the overall rules prescribed for the individual subscribers under ALL CITIZENS MODEL
  • Read more .
    Officers' Settlement-Joint Note 8-Dated 11.11.2020

    11th Bipartite Settlement dt 11.11.2020

    CPI Index New Serious Notes.;

    Sovereign Gold Bond Scheme
    Consolidated Procedural Guidelines.

    Reserve Bank of India response to RTI queries -
    Information pertaining to Department of Regulation.

    Gold Monetization Scheme, 2015 ( (Updated as on April 05, 2021).

    Payment Systems in India-RBI Booklet.

    Master Direction - Know Your Customer (KYC) Direction, 2016 (Updated as on May 10, 2021)

    Amendment to Master Direction (MD) on KYC-centralized KYC Registry


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