All in one Banking-All about banking just a click away.
Date:February 12,2025.

Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption due on February 12, 2025 (Series VI of SGB 2018-19)

Excerpts:
  • The next due date of premature redemption of the above tranche shall be February 12, 2025.
  • The redemption price for premature redemption due on February 12, 2025, shall be ₹8,528/- (Rupees Eight Thousand Five Hundred and Twenty Eight only) per unit of SGB.

    Read RBI Press release.

    • Deposit Interest Rates-Public Banks and Private Banks

    Updated on 07.02.2025

    * * *
    Banks 1 Year 3 years 5 years Max Interest
    Bank of Baroda 6.85 7.15 6.80 7.30-400 days
    Bank of India 6.80 6.50 6.00 7.30 400d)
    Canara Bank 6.85 7.40 6.70 7.40-  3 yr
    Central Bank 6.85 7.00 6.75 7.45 444 days
    Indian Bank 6.10 6.25 6.25 7.30-400d
    Indian Overseas Bank 7.10 6.50 6.50 7.30-444d
    Punjab National Bank 6.80 7.00 6.50 7.25-400 days
    Punjab and Sind Bank 6.30 6.00 6.00 7.45-555 days
    UCO Bank 6.50 6.30 6.20 7.30-333 days
    Union Bank 6.80 6.70 6.50 7.30-456d
    State Bank of India 6.80 6.75 6.50 7.25-444d
    IDBI Bank. 6.80 6.50 6.50 7.40-555d
    HDFC Bank 6.60 7.00 7.00 7.40-55 months
    ICICI Bank. 6.70 7.00 7.00 7.25-15 months
    Axis Bank 6.70 7.10 7.00 7.25-15 months
    SCB Bank. 7.50 7.10 6.75 7.50-1 year
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Top Home
    Date: February 07,2025.

    Expected Dearness Allowance -Bank Officers,Clerks and Sub-Staff from February 2025.

    1. Month. CPI(IW)
    Base 2016.
    2. October 2024. 144.50
    3. November 2024. 144.50.
    4. December 2025.(Official data not yet released-November 2024 index taken) 144.50.
    5. Average Index-Current Quarter. 144.50.
    6. Index above 123.03 points 21.47
    7. Dearness Relief (1.00% per point over 123.03 points ). 21.47%
    8. Change in DR (21.47-19.83). 1.64%

    Date : Jan 24, 2025
    Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption due on January 28, 2025 (Series II of SGB 2017-18)

    RBI Press release dated 24.01.2025.
    Excerpts:
  • The next due date of premature redemption of the above tranche shall be January 28, 2025.
  • The redemption price for premature redemption due on January 28, 2025, shall be ₹7,988/- (Rupees Seven Thousand Nine Hundred and Eighty-Eight only) per unit of SGB

    •   January 02,2025.

    Post Office Small Savings Interest Rates-FY 2024-25

    Post office Small Savings Interest Rates for the quarter from January 2025 to March 2025 remains unchanged.
    The rates for the financial year 2024-25 are given below.

    Scheme Name 2024
    Apr-Jun    		 2024
    Jul-Sep    		 2024
    Oct-Dec    		 2025
    Jan-Mar
    Savings Deposit 4.00 4.00 4.00 4.00
    1 Year Time Deposit 6.90 6.90 6.90 6.90
    2 Year Time Deposit 7.00 7.00 7.00 7.00
    3 Year Time Deposit 7.10 7.10 7.10 7.10
    5 Year Time Deposit 7.50 7.50 7.50 7.50
    5 Year Recurring Deposit 6.70 6.70 6.70 6.70
    5yr Senior Citizen's Savings 8.20 8.20 8.20 8.20
    5yr Monthly Income Deposit 7.40 7.40 7.40 7.40
    National Savings Certificate. 7.70 7.70 7.70 7.70
    Public Provident Fund 7.10 7.10 7.10 7.10
    Kisan Vikas Patra 7.50 7.50 7.50 7.50
    Sukanya Samriddhi Account. 8.20 8.20 8.20 8.20


    Know your NSC Accrued Interest eligible for deduction from Income tax for FY 2024-25.


    December 6,2024.

    Monetary Policy Statement, 2024-25 Resolution of the Monetary Policy Committee December 4 to 6, 2024

    Excerpts: Monetary Policy Decisions:
  • Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.
  • The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate 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.

    The revised rates are :
  • Policy Repo Rate : 6.50%
  • Standing Deposit Facility Rate : 6.25%
  • Marginal Standing Facility Rate : 6.75%
  • Bank Rate : 6.75
  • Fixed Reverse Repo Rate : 3.35%
  • CRR : 4.00%
  • SLR : 18.00%



    •  
  • 1.Read RBI Press release.

    2.Read more about Repo Rate/Reverse Repo Rate,Bank Rate,

    CRR- cash Reserve Ratio,SLR-Standing Liquidity Ratio etc

    • December 4,2024.

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

    RBI press release-Excerpts: Due date of premature redemption of the above tranche shall be December 04, 2024.

    The redemption price for premature redemption due on December 04, 2024, shall be Rs 7,646/- (Rupees Seven Thousand Six Hundred and Forty-Six only) per unit of SGB.

    Read More

    Deposit Interest Rates-Public Banks and Private Banks

    Updated on 28.12.2024.

    * * * * * * * * * * * * * * * *
    Banks 1 Year 3 years 5 years Max Interest
    Bank of Baroda 6.85 7.15 6.80 7.30-400 days
    Bank of India 6.80 6.50 6.00 7.30 400d)
    Canara Bank 6.85 7.40 6.70 7.40-  3 yr
    Central Bank 6.85 6.75 6.50 7.45 444 days
    Indian Bank 6.10 6.25 6.25 7.30-400d
    Indian Overseas Bank 7.10 6.50 6.50 7.30-444d
    Punjab National Bank 6.80 7.00 6.50 7.25-400 days
    Punjab and Sind Bank 6.30 6.00 6.00 7.45-555 days
    UCO Bank 6.50 6.30 6.20 7.30-333 days
    Union Bank 6.80 6.70 6.50 7.30-456d
    State Bank of India 6.80 6.75 6.50 7.25-444d
    IDBI Bank. 6.80 6.50 6.50 7.40-555d
    HDFC Bank 6.60 7.00 7.00 7.40-55 months
    ICICI Bank. 6.70 7.00 7.00 7.25-15 months
    Axis Bank 6.70 7.10 7.00 7.25-15 months
    SCB Bank. 7.50 7.10 6.75 7.50-1 year
    Deposit Rates subject to change .
    Confirm rates from respective banks .
    Top Home

    Latest RBI Policy Rates-Repo Rate, Bank Rate, CRR, SLR etc---

    Updated on December 06, 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) 4.00
    Statutory Liquidity Ratio(SLR) 18.00


    Know more about what are

     

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    NOMINATION-A Comprehencive guide.
    Bank Accounts,Locker Account and Safe Custody Accounts :
    Salient features:
  • Nomination facilitates the Banks to pay the dues/ deliver the articles of the deceased depositor to nominees.
  • Nominee not required to submit succession certificate /or legal heir certificate.
  • Nomination is solely for the purpose of simplifying the procedure for settlement of claims of deceased depositor.
  • Nomination does not take away the rights of legal heirs.
  • The Right of successors / legal heirs prevails over Nominee & Joint Account Holder.
  • Nomination facility is available to accountholders operating.
    1. Current accounts.
    2. Savings bank accounts.
    3. Term deposit accounts.
    4. Safe deposit lockers.
    5. Safe custody of articles.
    The Banking Regulation Act allows single or joint deposit holders to appoint a nominee for their deposit.
    Such a nominee can also be appointed for items left in custody of a bank or for a locker hired from a bank.
    The nominee can access the deposit, articles, or locker in case of death of the person who nominated him.
    The The Banking Laws (Amendment) Bill, 2024 allows the appointment of up to four nominees for these purposes.
    For deposits, such nominees can be appointed either successively or simultaneously
    while for other purposes they can be appointed successively.
    In case of simultaneous nominees, the nomination will be effective in a declared proportion.
    For successive nomination, the nominee who has been named higher in the order of nomination will receive priority.

  • In case of minor's account, person lawfully entitled to act on behalf of the minor can make nomination.
  • A minor can be Nominated as "nominee".
  • A non - resident can be nominated as a nominee in a resident account.
  • Nomination is to be filed in the prescribed forms .
  • In Joint Accounts,all the joint Account holders must sign the Nomination Form
  • Thumb-impressions(s) in Nomination Form should be attested by two witnesses.
  • Signatures of the account holders in the nomination form need not be attested by witnesses.
  • Nominee need not sign the Nomination Form
  • Nomination can be changed or cancelled subsequently.


    • Nomination Forms to be used:
  • Nomination - Deposits DA-1
  • Cancellation of Nomination - Deposits DA-2
  • Variation of Nomination - Deposits DA-3
  • Nomination-Safety Locker Sole Hirer SL-1
  • Nomination-Safety Locker (Joint Hirers) SL-1A
  • Cancellation of Nomination-Safety Locker SL-2
  • Variation of Nomination-Safety Locker (Sole Hirer) SL-3
  • Variation of Nomination-Safety Locker (joint Hirers) SL-3A
  • Nomination-Safe Custody Articles SC-1
  • Cancellation of Nomination-Safe Custody Articles SC-2
  • Variation of Nomination-Safe Custody Articles SC-3
    • For details approach your banker.

    1.Read Banking Laws Amendment Bill 2024 for change in nomination rules.

    2.The Banking Companies (Nomination) Rules, 1985 - Clarifications.

    3.Extension of Safe Deposit Locker / Safe CustodyArticle Facility and Access to Safe Deposit Lockers /Return of Safe Custody Articles by banks.


    Home Top

    December 6,2024.

    Monetary Policy Statement, 2024-25 Resolution of the Monetary Policy Committee December 4 to 6, 2024

    Excerpts: Monetary Policy Decisions:
  • Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.
  • The standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate 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.

    The revised rates are :
  • Policy Repo Rate : 6.50%
  • Standing Deposit Facility Rate : 6.25%
  • Marginal Standing Facility Rate : 6.75%
  • Bank Rate : 6.75
  • Fixed Reverse Repo Rate : 3.35%
  • CRR : 4.00%
  • SLR : 18.00%


    • 1.Read RBI Press release.

    2.Read more about Repo Rate/Reverse Repo Rate,Bank Rate,

    CRR- cash Reserve Ratio,SLR-Standing Liquidity Ratio etc


    December 4,2024.

    Student Education Loan-A comprehensive Guide.



    December 4,2024.

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

    RBI press release-Excerpts: Due date of premature redemption of the above tranche shall be December 04, 2024.

    The redemption price for premature redemption due on December 04, 2024, shall be Rs 7,646/- (Rupees Seven Thousand Six Hundred and Forty-Six only) per unit of SGB.

    Read More

    FD-Fixed Deposit Interest Rates-Public Banks and Private Banks

    Updated on 26.11.2024.


    Interest Rates :% per annum * * * * * * * * * * * * * * * *
    Banks 1 Year 3 years
    		5 years
    		 Max Interest
    Bank of Baroda 6.85
    		 7.15 6.80 7.30-400 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 7.30-400d
    Indian Overseas Bank 7.10
    		 6.50 6.50 7.30-444d
    Punjab National Bank 6.80
    		 7.00 6.50 7.25-400 days
    Punjab and Sind Bank 6.30
    		 6.00 6.00 7.45-555 days
    UCO Bank 6.50
    		 6.30 6.20 7.30-333 days
    Union Bank 6.80
    		 6.70 6.50 7.30-456d
    State Bank of India 6.80
    		 6.75 6.50 7.25-444d
    IDBI Bank. 6.80
    		 6.50 6.50 7.35-444d
    HDFC Bank 6.60
    		 7.00 6.50 7.40-55 months
    ICICI Bank. 6.70
    		 7.00 7.00 7.25-15 months
    Axis Bank 6.70
    		 7.10 7.00 7.25-15 months
    SCB Bank. 7.50
    		 7.10 6.75 7.50-1 year
    Deposit Rates subject to change .
    Confirm rates from respective banks .

    November 18,2024.
    All about income tax on salary-Financial Year 2024-25.

    A comprehensive guide.
    Income Tax Calculator- FY 2024-25.

    Income Tax Rates FY 2024-25.

    Income Tax important sections for availing deductions from Income.

    Deduction limits

    Finance Bill 2024

    Memorandum explaining the provisions in Finance Bill 2024.

    Income Tax Act 1961

    NSC VIII th Issue -Interest eligible for deduction U/S 80C .

    NSC Accrued Interest Calculator

    NSC Accrued Interest Chart

    HRA Rebate Calculator.

    Details of deductions allowed -FY 2023-24

    ***************************************************************

    Important points to remember:

    Standard Deductions:
  • Standard Deductions -New Tax Regime Max Rs 75000.
  • Standard Deductions Old Tax Regime Max Rs 50000.
  • Standard Deductions Family Pensioners Max Rs 25000.

    • Section 87A. New Tax Regime
  • A resident individual (whose net income does not exceed Rs. 7,00,000) can avail rebate under section 87A.

  • It is deductible from income-tax before calculating education cess.
  • The amount of rebate is 100 per cent of income-tax or Rs. 25000, whichever is less.


    • Section 87A: Old Tax Regime

  • A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A.

  • It is deductible from income-tax before calculating education cess.

  • The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.


    • Section 80TTA-Interest frrom Savings Bank Account: Old Tax Regime
  • For Individuals other than senior Citizens :Max Rs10000.

  • Interest on Fixed and other deposits not allowed.


    • Section 80TTB-Interest frrom Savings Bank and Fixed Deposit Accounts Account: Old Tax Regime
  • For Senior Citizens :Interest from Savings and Fixed Deposit Accounts: Max Rs50000.

    Thank you for visiting my Website.
  • Your suggestions / Comments will help me improve this page.
  • You may E-mail your suggestions/ comments to "ssm_dindigul@yahoo.co.in"
  • Subramanian S (Retd Manager,United Bank of India.)


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

    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
    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.
      ---23112024---->

    *****************************Edited on 24.11.2024------------
    November 19,2024.

    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.

     




    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.

    ************************************

    September 14,2024.

    Sovereign Gold Bond-Premature Closure.


    What is Sovereign Gold Bond.?

    To know click here.
    *************************************

    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
    *************************
    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

     

    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
    Interest EMI Int Payment Prn Payment Prd Initial (Yrs) Prd Revised (Yrs) Extra EMI Prd (Yrs)
    10.00 9650 8333 1317 20.00 20.00 00.00
    10.25 9650 8542 1108 20.00 21.20 01.20
    10.50 9650 8750 900 20.00 22.70 02.70
    10.75 9650 8958 692 20.00 24.60 04.60
    11.00 9650 9167 483 20.00 27.30 07.30
    11.25 9650 9375 275 20.00 31.80 11.80
    11.50 9650 9583 67 20.00 43.40 23.40
    11.75 9650 9792 -142 20.00 Perfectual payment as Interest is more than EMI.
    12.00 9650 10000 -350 20.00
    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 old Interest Revised EMI old EMI Revised Increase in EMI
    10.00 10.00 9650 9650 00.00
    10.00 10.25 9650 9816 166.00
    10.00 10.50 9650 9984 334.00
    10.00 10.75 9650 10152 502.00
    10.00 11.00 9650 10322 672.00
    10.00 11.25 9650 10493 843.00
    10.00 11.50 9650 10664 1014.00
    10.00 11.75 9650 10837 1187.00
    10.00 12.00 9650 11011 1361.00

    ************************
    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

    ***************************
    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.
     

    *****************************
    May 28, 2024

    Archives-our earlier postings.


    *****************************

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    --240524--
    Excerpts:

    Customers who are not having any other banking relationship with the bank may be given the facilities of safe deposit locker / safe custody article after complying with the CDD criteria under the Master Direction-Know Your Customer (KYC) Directions, 2016

    Banks shall maintain a branch wise list of vacant lockers as well as a wait-list in Core Banking System (CBS) or any other computerized system

    A copy of the locker agreement in duplicate signed by both the parties shall be furnished to the locker-hirer to know his/her rights and responsibilities.

    To ensure prompt payment of locker rent, banks are allowed to obtain a Term Deposit, at the time of allotment, which would cover three years' rent and the charges for breaking open the locker in case of such eventuality. Banks, however, shall not insist on such Term Deposits from the existing locker holders or those who have satisfactory operative account

    The area housing the lockers should remain adequately guarded at all times. The banks shall install Access Control System, if required as per their risk assessment, which would restrict any unauthorized entry and create digital record of access to locker room with time log. As per their internal security policy, banks may cover the entry and exit of the strong room and the common areas of operation under CCTV camera and preserve its recording for a period of not less than 180 days.

    Banks offering electronically accessed lockers should be fully aware of the safety and security features of such lockers satisfying appropriate industry standards. In case the lockers are being operated through an electronic system, the bank shall take reasonable steps to ensure that the system is protected against hacking or any breach of security

    Banks shall ensure that identification Code of the bank / branch is embossed on all the locker keys with a view to facilitating identification of lockers / locker ownership by law enforcement agencies in case of need

    The locker hirer and/or the persons duly authorized by him/ her only shall be permitted to operate the locker after proper verification of their identity and recording of the authorization by the officials concerned of the bank

    There shall be a system of inter change of locks whenever the locker is surrendered by the hirer. The keys of vacant lockers shall be kept in sealed envelopes. The duplicate master keys shall be deposited with another branch of the bank. There shall be proper record of joint custody of master keys. Banks shall conduct surprise periodic verification of surrendered/vacant lockers and their keys by an officer of the bank who is not connected with their custody and proper record shall be maintained as a proof of such verification.

    The banks shall offer nomination facility in case of safe deposit lockers and safe custody of articles, in accordance with the provisions of section 45-ZC to 45-ZF of the Banking Regulation Act, 1949 and Banking Companies (Nomination) Rules, 1985/Co-operative Banks (Nomination) Rules, 1985. In case the nominee is a minor, the same procedure as prescribed for the bank accounts shall be followed by the banks. A passport size photo of the nominee attested by the customer may be obtained from the customers, at his/her option and preserved in the records.

    Banks shall have a Board approved policy for nomination and release of contents of safety lockers / safe custody article to the nominee and protection against notice of claims of other persons

    In order to ensure that the articles left in safe custody and contents of lockers are returned to the genuine nominee, as also to verify the proof of death, banks shall devise their own claim formats,

    If the sole locker hirer nominates an individual to receive the contents in the locker, in case of his death, after verification of the death certificate and satisfying the identity and genuineness of such individual approached, the banks shall give access of the locker to such nominee with liberty to remove the contents of the locker, after an inventory was taken in the prescribed manner.
    In case the locker was hired jointly with the instructions to operate it under joint signatures, and the locker hirer(s) nominates any other individual(s), in the event of death of any of the locker hirers, the bank shall give access of the locker and the liberty to remove the contents jointly to the survivor(s) and the nominee(s) after an inventory was taken in the prescribed manner.
    In case the locker was hired jointly with survivorship clause and the hirers instructed that the access of the locker should be given to "either or survivor", "anyone or survivor" or "former or survivor" or according to any other survivorship clause permissible under the provisions of the Banking Regulation Act, 1949, the banks shall follow the mandate in the event of death of one or more of the joint locker-hirers.
    Banks shall, however, ensure the following before giving access to the contents to nominee / survivor:

    Exercise due care and caution in establishing the identity of the survivor(s) / nominee(s) and the fact of death of the locker hirer by obtaining appropriate documentary evidence;

    Make diligent effort to find out whether there is any order or direction from Courts/Forums restraining it from giving access to the locker of the deceased; and

    make it clear to the survivor(s) / nominee(s) that access to articles in the locker / safe custody articles is given to them only as a trustee of the legal heirs of the deceased locker hirer i.e., such access given to them shall not affect the right or claim which any person may have against the survivor(s) / nominee(s) to whom the access is given.

    Similar procedure shall be followed for return of articles placed in the safe custody of the bank.

    The bank shall obtain a separate statement from the nominee (claimant) or the person competent to receive articles on behalf of the minor, as the case may be, that all the contents in the locker or in the safe custody of the bank, as the case may be, are received and the locker is empty and they have no objection to allotment of the locker to any other customer as per norms.

    While giving access to the survivor(s) / nominee(s) of the deceased locker hirer / depositor of the safe custody articles, banks may avoid insisting on the production of succession certificate, letter of administration or probate, etc., or obtain any bond of indemnity or surety from the survivor(s)/nominee(s), unless there is any discrepancy in nomination.

    In case of attachment and recovery of the contents in a locker of a customer or the articles left by a customer for safe custody of the bank by any Authority acting either under the orders of a Court or any other competent authority vested with the power to pass such orders, the banks shall co-operate in execution and implementation of the orders.

    Banks shall have the discretion to break open any locker following due procedure if the rent has not been paid by the customer for three years in a row. The bank shall ensure to notify the existing locker-hirer prior to any changes in the allotment and give him/her reasonable opportunity to withdraw the articles deposited by him/her.

    Before breaking open the locker, the bank shall give due notice to the locker-hirer through a letter and through email and SMS alert to the registered email id and mobile phone number.
    The locker shall be broken open in the presence of an officer of the bank and two independent witnesses. In case of electronically operated lockers (including Smart Vaults),

    If the locker remains inoperative for a period of seven years and the locker-hirer cannot be located, even if rent is being paid regularly, the bank shall be at liberty to transfer the contents of the locker to their nominees/legal heir or dispose of the articles in a transparent manner, as the case may be.

    The bank shall not be liable for any damage and/or loss of contents of locker arising from natural calamities or Acts of God like earthquake, floods, lightning and thunderstorm or any act that is attributable to the sole fault or negligence of the customer. Banks shall, however, exercise appropriate care to their locker systems to protect their premises from such catastrophes.

    It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. It has the responsibility to ensure that incidents like fire, theft/ burglary/ robbery, dacoity, building collapse do not occur in the bank’s premises due to its own shortcomings, negligence and by any act of omission/commission. As banks cannot claim that they bear no liability towards their customers for loss of contents of the locker, in instances where loss of contents of locker are due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker.

    Read RBI Circular.

    IDBI Bank- settlement of Deceased claims of Locker / Safe Custody Article
    --240524-->
    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.

    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 80CCD 1,50,000.
    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
      Top Home
     
    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

    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


    aiohomepagenewhtml240116

    ****************************Edited on 24.11.2024-------------



    Date:April 20,2023.

    Clarification regarding deduction of TDS under section 192 read with sub-section (IA) of section 115BAC of the Income-tax Act, 1961 - reg.

    We are reproducing the clarifications :
    • F. No.370142/06/2023-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division)
    • Sub: Clarification regarding deduction of TDS under section 192 read with sub-section (IA) of section 115BAC of the Income-tax Act, 1961 - reg.
    • Vide Finance Act, 2023, sub-section (lA) has been inserted in section 115BAC ofthe Income-tax Act, 1961 ( the Act) to provide for a new tax regime with effect from the assessment year beginning on or after the 1st day of April, 2024. This regime applies to an individual or Hindu undivided family or association of persons [other than a cooperative society] or body of individuals, whether incorporated or not, or an artificial juridical person. Under this new regime, the income-tax in respect of the total income of the person shall be computed at the rates provided in sub-section (1A) of section 115BAC, subject to certain conditions, including the condition that the person does not avail of specified exemptions and deductions.
    • 2. The above mentioned new tax regime is the default tax regime applicable to all persons mentioned above. However, under sub-section (6) of section 115BAC of the Act, a person may exercise an option to opt out ofthis tax regime. A person not having income from business or profession can exercise this option every year.
    • 3. Representations have been received expressing concerns regarding tax to be deducted at source (TDS) on salary income of a person under section 192 of the Act as the deductor, being an employer, would not know if the person, being an employee, would opt out from taxation under sub-section (1A) ofsection 115BAC ofthe Act or not.
    • 4. In order to avoid the genuine hardship in such cases, the Board, in exercise of powers conferred under section 119 of the Act, hereby directs that a deductor, being an employer, shall seek information from each of its employees having income under section 192 of the Act regarding their intended tax regime and each such employee shall intimate the same to the deductor, being his employer, regarding his intended tax regime for each year and upon intimation, the deductor shall compute his total income, and deduct tax at source thereon according to the option exercised. Circular No. 04 of 2023 th Dated: 5 April, 2023
    • 5. If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Accordingly, in such a case, the employer shall deduct tax at source, on income under section 192 of the Act, in accordance with the rates provided under sub-section (lA) of section 115BAC of the Act.
    • 6. It is also clarified that the intimation would not amount to exercising option in terms of sub-section (6) of section 115BAC of the Act and the person shall be required to do so separately in accordance with the provisions ofthe sub-section.
    • 7. This circular is in supersession of Circular No. Cl of2020 dated 13.04.2020 and shall be applicable for TDS during the financial year 2023-24 and subsequent years.
      '




    Date:April 20,2023.

    Master Circular-Housing Finance


    Excerpts from RBI Circular:
    • This Master Circular consolidates instructions on the above matter issued up to March 31, 2023.
    • While formulating their policies, banks have to take into account the following RBI guidelines and ensure that bank credit is used for production, constructions activities and not for activities connected with speculation in real estate.
    • (A) ACQUISITION OF LAND
    • Bank finance can be granted only for purchase of a plot, provided a declaration is obtained from the borrower that he intends to construct a house on the said plot, with the help of bank finance or otherwise, within such period as may be laid down by the banks themselves.
    • (B) CONSTRUCTION OF BUILDING / READY-BUILT HOUSE
      (i) Banks may grant loans to individuals for purchase/construction of dwelling unit per family and loans for repairs to the damaged dwelling units of families.
      (ii) Banks may extend finance to a person who already owns a house in town/village where he resides, for buying/ constructing a second house in the same or other town/ village for the purpose of self-occupation.
      (iii) Banks may extend finance for purchase of a house by a borrower who proposes to let it out on rental basis on account of his posting outside the headquarters or because he has been provided accommodation by his employer.


      (iv) Banks may extend finance to a person who proposes to buy an old house where he is presently residing as a tenant.

      (v) Banks may finance for construction meant for improving the conditions in slum areas for which credit may be extended directly to the slum-dwellers on the guarantee of the Government, or indirectly to them through the State Governments.
      (vi) Banks may provide credit for slum improvement schemes to be implemented by Slum Clearance Boards and other public agencies.


      (vii) Banks are advised to also adhere to the following conditions, in the light of the observations of Delhi High Court on unauthorized construction:
       
    • (a) In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.
    • (b) An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executants to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.
    • (c) An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been obtained.
    • (d) In cases where the applicant approaches the bank/FIs for a credit facility to purchase a built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.
    • (e) An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.
    • (f) No loan should be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.
    • (g) No loan should also be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.

      Read RBI Circular on Housing Finance




    Date:April 09,2023.

    Reserve Bank of India (Credit Card and Debit Card-Issuance and Conduct) Directions, 2022- effective from July 01, 2022

    • (a) The provisions of these Directions relating to credit cards shall apply to every Scheduled Bank (excluding Payments Banks, State Co-operative Banks and District Central Co-operative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India.
    • (b) The provisions of these Directions relating to debit cards shall apply to every bank operating in India.
    • (c) These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank.

      Read more.


    Date:April 08,2023.

    Master Direction on Counterfeit Notes, 2023 - Detection, Reporting and Monitoring


    The Reserve Bank of India has, issued Master Direction incorporating and updating on Counterfeit Notes, Detection, Reporting and Monitoring
    Read more


    Date:April 06,2023.

    Monetary Policy Statement, April 06, 2023.

    • RBI keeps policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50
    • standing deposit facility (SDF) rate remains unchanged at 6.25 per cent
    • marginal standing facility (MSF) rate and the Bank Rate at 6.75

    • Read more


    Date:March 29,2023.

    Premature redemption under Sovereign Gold Bond (SGB) Scheme- Redemption Price for premature redemption due on March 29, 2023 (SGB 2016-II and 2016-17-Series II)

    In terms of GOI Notifications F.No.4(19) - W&M/2014 dated March 04, 2016 (SGB 2016-II -Issue date March 29, 2016) and F.No.4(7) - W&M/2016 dated August 29, 2016 (SGB 2016-17 Series II -Issue date September 30, 2016) 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 due date of premature redemption of the above two tranches shall be March 29, 2023 (March 30, 2023 being a holiday).

    2. Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity, of the week (Monday-Friday) preceding the date of redemption, as published by the India Bullion and Jewellers Association Ltd. (IBJA). Accordingly, the redemption price for premature redemption due on March 29, 2023 (March 30, 2023 being a holiday) shall be ₹5921/- (Rupees Five thousand nine hundred and twenty-one only) per unit of SGB based on the simple average of closing gold price for the week March 20-24, 2023.

    Read more


    Date:March 10,2023.

    Digital Payments Awareness Week

    Address by Governor, Shri Shaktikanta Das, Reserve Bank of India - March 06, 2023 - Digital Payments Awareness Week (March 6-12, 2023) Launch of Mission ‘Har Payment Digital’, Mumbai

    Read more


    ->


    Date:February 28,2023.

    Disclosures of Common Interest RTI .

    The Reserve Bank of India receives requests for information under the Right to Information Act, 2005. Some information furnished by the Chief Public Information Officer in response requests, would be of interest to the members of the public. Such information is furnished in this Disclosure Log.

    Read more.


    February 28,2023.

    Sovereign Gold Bond (SGB) Scheme Calendar for premature redemption during April 2023 - September 2023

    Read details here.

    Bank Deposit Interest Rates.

    Canara Bank

    6.75
    6.50
    6.50
    0.50

    Central Bank of India

    6.75
    6.00
    6.00
    0.50

    Indian Bank

    6.10
    6.25
    6.25
    0.50

    Indian Overseas Bank

    6.40
    6.50
    6.50
    50

    Punjab National Bank

    6.75
    6.75
    6.50
    0.50

    Punjab and Sind Bank

    6.10
    6.10
    6.10
    0.50

    UCO Bank

    6.50
    6.20
    6.10
    0.25/0.50/0.50

    Union Bank

    6.30
    7.30
    6.70
    0.50

    State Bank of India

    6.75
    6.25
    6.25
    0.50/0.50/0.80

    IDBI Bank

    6.75
    6.25
    6.25
    0.50/0.75/0.75

    (Interest rates subject to change .Confirm interest rates from respective banks)

    January 11 , 2023.

    Post Office Small Savings Interest Rates

    January 2023 to March 2023.

    Savings Account
    4.0%.
     
    1 Year Time Deposit
    6.6%.
     
    2 Year Time Deposit
    6.8%.
     
    3 Year Time Deposit
    6.9%.
     
    5 Year Time Deposit
    7.0%.
     
    5 Year Recurring Deposit
    5.8%.
     
    5 Year Senior Citizen's Savings
    8.0%.
     
    5 Year Monthly Income Deposit
    7.1%.
     
    5 Year National Savings Certificate.
    7.0%.
     
    Public Provident Fund
    7.1%.
     
    Kisan Vikas Patra
    7.2%.
     
    Sukanya Samriddhi
    7.6%.

     

    January 08 , 2023.
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    Implementation of Indian Accounting Standards (Ind AS)

    Excerps from RBI Circular To address the prudential concerns arising from continued recognition of unrealised income, it has been decided that ARCs preparing their financial statements as per Ind AS, shall reduce the following amounts from their net owned funds while calculating the Capital Adequacy Ratio and the amount available for payment of dividend: (a) Management fee recognised during the planning period1 that remains unrealised beyond 180 days from the date of expiry of the planning period. (b) Management fee recognised after the expiry of the planning period that remains unrealised beyond 180 days of such recognition. (c) Any unrealised management fees, notwithstanding the period for which it has remained unrealised, where the net asset value of the Security Receipts has fallen below 50 per cent of the face value
    Read more....




    Date:April 20,2023.

    Clarification regarding deduction of TDS under section 192 read with sub-section (IA) of section 115BAC of the Income-tax Act, 1961 - reg.

    We are reproducing the clarifications :
    • F. No.370142/06/2023-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division)
    • Sub: Clarification regarding deduction of TDS under section 192 read with sub-section (IA) of section 115BAC of the Income-tax Act, 1961 - reg.
    • Vide Finance Act, 2023, sub-section (lA) has been inserted in section 115BAC ofthe Income-tax Act, 1961 ( the Act) to provide for a new tax regime with effect from the assessment year beginning on or after the 1st day of April, 2024. This regime applies to an individual or Hindu undivided family or association of persons [other than a cooperative society] or body of individuals, whether incorporated or not, or an artificial juridical person. Under this new regime, the income-tax in respect of the total income of the person shall be computed at the rates provided in sub-section (1A) of section 115BAC, subject to certain conditions, including the condition that the person does not avail of specified exemptions and deductions.
    • 2. The above mentioned new tax regime is the default tax regime applicable to all persons mentioned above. However, under sub-section (6) of section 115BAC of the Act, a person may exercise an option to opt out ofthis tax regime. A person not having income from business or profession can exercise this option every year.
    • 3. Representations have been received expressing concerns regarding tax to be deducted at source (TDS) on salary income of a person under section 192 of the Act as the deductor, being an employer, would not know if the person, being an employee, would opt out from taxation under sub-section (1A) ofsection 115BAC ofthe Act or not.
    • 4. In order to avoid the genuine hardship in such cases, the Board, in exercise of powers conferred under section 119 of the Act, hereby directs that a deductor, being an employer, shall seek information from each of its employees having income under section 192 of the Act regarding their intended tax regime and each such employee shall intimate the same to the deductor, being his employer, regarding his intended tax regime for each year and upon intimation, the deductor shall compute his total income, and deduct tax at source thereon according to the option exercised. Circular No. 04 of 2023 th Dated: 5 April, 2023
    • 5. If intimation is not made by the employee, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Accordingly, in such a case, the employer shall deduct tax at source, on income under section 192 of the Act, in accordance with the rates provided under sub-section (lA) of section 115BAC of the Act.
    • 6. It is also clarified that the intimation would not amount to exercising option in terms of sub-section (6) of section 115BAC of the Act and the person shall be required to do so separately in accordance with the provisions ofthe sub-section.
    • 7. This circular is in supersession of Circular No. Cl of2020 dated 13.04.2020 and shall be applicable for TDS during the financial year 2023-24 and subsequent years.
      '
     



    Date:April 20,2023.

    Master Circular-Housing Finance


    Excerpts from RBI Circular:
    • This Master Circular consolidates instructions on the above matter issued up to March 31, 2023.
    • While formulating their policies, banks have to take into account the following RBI guidelines and ensure that bank credit is used for production, constructions activities and not for activities connected with speculation in real estate.
    • (A) ACQUISITION OF LAND
    • Bank finance can be granted only for purchase of a plot, provided a declaration is obtained from the borrower that he intends to construct a house on the said plot, with the help of bank finance or otherwise, within such period as may be laid down by the banks themselves.
    • (B) CONSTRUCTION OF BUILDING / READY-BUILT HOUSE
      (i) Banks may grant loans to individuals for purchase/construction of dwelling unit per family and loans for repairs to the damaged dwelling units of families.
      (ii) Banks may extend finance to a person who already owns a house in town/village where he resides, for buying/ constructing a second house in the same or other town/ village for the purpose of self-occupation.
      (iii) Banks may extend finance for purchase of a house by a borrower who proposes to let it out on rental basis on account of his posting outside the headquarters or because he has been provided accommodation by his employer.


      (iv) Banks may extend finance to a person who proposes to buy an old house where he is presently residing as a tenant.

      (v) Banks may finance for construction meant for improving the conditions in slum areas for which credit may be extended directly to the slum-dwellers on the guarantee of the Government, or indirectly to them through the State Governments.
      (vi) Banks may provide credit for slum improvement schemes to be implemented by Slum Clearance Boards and other public agencies.


      (vii) Banks are advised to also adhere to the following conditions, in the light of the observations of Delhi High Court on unauthorized construction:
       
    • (a) In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.
    • (b) An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executants to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.
    • (c) An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been obtained.
    • (d) In cases where the applicant approaches the bank/FIs for a credit facility to purchase a built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.
    • (e) An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.
    • (f) No loan should be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.
    • (g) No loan should also be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.

      Read RBI Circular on Housing Finance
     



    Date:April 09,2023.

    Reserve Bank of India (Credit Card and Debit Card-Issuance and Conduct) Directions, 2022- effective from July 01, 2022

    • (a) The provisions of these Directions relating to credit cards shall apply to every Scheduled Bank (excluding Payments Banks, State Co-operative Banks and District Central Co-operative Banks) and all Non-Banking Financial Companies (NBFCs) operating in India.
    • (b) The provisions of these Directions relating to debit cards shall apply to every bank operating in India.
    • (c) These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank.

      Read more.
     

    Date:April 08,2023.

    Master Direction on Counterfeit Notes, 2023 - Detection, Reporting and Monitoring


    The Reserve Bank of India has, issued Master Direction incorporating and updating on Counterfeit Notes, Detection, Reporting and Monitoring
    Read more


    Date:April 06,2023.

    Monetary Policy Statement, April 06, 2023.

    • RBI keeps policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50
    • standing deposit facility (SDF) rate remains unchanged at 6.25 per cent
    • marginal standing facility (MSF) rate and the Bank Rate at 6.75

    • Read more


    Date:March 29,2023.

    Premature redemption under Sovereign Gold Bond (SGB) Scheme- Redemption Price for premature redemption due on March 29, 2023 (SGB 2016-II and 2016-17-Series II)

    In terms of GOI Notifications F.No.4(19) - W&M/2014 dated March 04, 2016 (SGB 2016-II -Issue date March 29, 2016) and F.No.4(7) - W&M/2016 dated August 29, 2016 (SGB 2016-17 Series II -Issue date September 30, 2016) 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 due date of premature redemption of the above two tranches shall be March 29, 2023 (March 30, 2023 being a holiday).

    2. Further, the redemption price of SGB shall be based on simple average of closing price of gold of 999 purity, of the week (Monday-Friday) preceding the date of redemption, as published by the India Bullion and Jewellers Association Ltd. (IBJA). Accordingly, the redemption price for premature redemption due on March 29, 2023 (March 30, 2023 being a holiday) shall be ₹5921/- (Rupees Five thousand nine hundred and twenty-one only) per unit of SGB based on the simple average of closing gold price for the week March 20-24, 2023.

    Read more


    Date:March 10,2023.

    Digital Payments Awareness Week

    Address by Governor, Shri Shaktikanta Das, Reserve Bank of India - March 06, 2023 - Digital Payments Awareness Week (March 6-12, 2023) Launch of Mission ‘Har Payment Digital’, Mumbai

    Read more

    ->

    Date:February 28,2023.

    Disclosures of Common Interest RTI .

    The Reserve Bank of India receives requests for information under the Right to Information Act, 2005. Some information furnished by the Chief Public Information Officer in response requests, would be of interest to the members of the public. Such information is furnished in this Disclosure Log.

    Read more.

    February 28,2023.

    Sovereign Gold Bond (SGB) Scheme Calendar for premature redemption during April 2023 - September 2023

    Read details here.
    July 16 , 2022.
    Additional arrangement for invoicing, payment, and settlement of exports / imports in INR- Excerpts:
    • Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR).
    • Exchange rate between the currencies of the two trading partner countries may be market determined.
    • The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular.
    • AD banks in India have been permitted to open Rupee Vostro Accounts
    • Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism
    • Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of FEMA
    • The balance in Special Vostro Accounts can be used for:
      Payments for projects and investments.
      Export/Import advance flow management
      Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.

      Click to read RBI Circular -International Trade Settlement in Indian Rupees (INR)
     
    July 01 , 2022.
    Bank Officers, Clerks and Sub-Staff revised Dearness Allowance from August 2022.
    July 16 , 2022.
    Additional arrangement for invoicing, payment, and settlement of exports / imports in INR- Excerpts:
    • Invoicing: All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR).
    • Exchange rate between the currencies of the two trading partner countries may be market determined.
    • The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para 3 of this circular.
    • AD banks in India have been permitted to open Rupee Vostro Accounts
    • Indian exporters may receive advance payment against exports from overseas importers in Indian rupees through the above Rupee Payment Mechanism
    • Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of FEMA
    • The balance in Special Vostro Accounts can be used for:
      Payments for projects and investments.
      Export/Import advance flow management
      Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision.

      Click to read RBI Circular -International Trade Settlement in Indian Rupees (INR)
     
    July 01 , 2022.
    Bank Officers, Clerks and Sub-Staff revised Dearness Allowance from August 2022.


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