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

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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.
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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.
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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

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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 .

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Date April 24,2024.
A comprehensive guide to personal Income Tax FY 2024-25
New financial year 2024-25 has started .
This is the time to make well-informed decision relating to Income Tax.
How to choose Tax Regime -Old Tax Regime or New Tax Regime?
Which one is beneficial ?
How to reduce Tax liability ?
What are the deductions available to minimise income Tax ?
Follow the following links to make well-informed decision.

Click to know your Income tax under Old Tax Regime and New Tax Regime to choose the better one.
  • From the drop down first select "Old Tax Regime".
  • Enter all relevant details to know tax under "Old Tax Regime".
  • Without changing the details already entered , select "New Tax Regime" to know the tax under "New Tax Regime".
  • Choose one among the two .

    Income Tax rates -FY 2024-24.

    Inportant sections for claiming deductions from Income

    List of benefits available to Salaried Persons-FY 2024-25

    Calculator to claim deduction from income for NSC Principal and Accrued Interest-FY 2023-24

    Calculator to claim deduction from income for NSC Principal and Accrued Interest-FY 2024-25
  • 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 10, 2024.

    IBA Model Education Loan Scheme
    -For Pursuing Higher Education in India and Abroad.

    Are you interested in pursuing higher education ? Here is a circular issued by IBA on the subject giving details of Education Loan Scheme. Read to know your eligibilty ,quantum of loan ,repayment etc.

    Read more.

    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 11, 2024.

    12th Bipartite Settlement -Bank Customer Service associates'(Clerk) revised Salary, DA , HRA and other Allowances.

    12th Bipartite Settlement -Bank Office Assistants' (Sub-Staff) revised Salary, DA , HRA and other Allowances.

    Exgratia to Pensioners.

    March 07, 2024.

    Bank Staff 12th Bipartite Settlement and Bank Officers' salary revision Joint Note 9 signed At Mumbai on 8th March, 2024

    Bank Officers' Salary Revision -Joint Note 9 dated 08.03.2024

    Bank Staff 12Th Bipartite Settlement

    Bank Officers' Salary Revision
    -Joint Note 9 dated 08.03.2024 in brief


    Bank Staff Salary Revision
    12th Bipartite salient features


    Bank staff 12th Bipartite Exgratia factors

    12th Bipartite Exgratia


    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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