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February 02,2023.

Income tax fy 2023-24 finance act and important links


India Budget Website.

Budget 2023 Finance Minister speech.

Budget 2023 at a glance.

Key features of Budget 2023-24.

Finance Bill 2023.

Income Tax Act 1961 (as amended by Finance Act 2022).

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.

Deduction U/S 80CCF in respect of subscription to long-term infrastructure bonds.

Deduction U/S 80CCG in respect of investment made under an equity savings scheme.

Deduction U/S 80D in respect of health insurance premia.

Deduction U/S 80DDB 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.

Excerpts from Budget 2023 speech.

Personal Income Tax.

  • 145. Now, I come to what everyone is waiting for -- personal income tax.
    I have five major announcements to make in this regard.
    These primarily benefit our hard-working middle class.
  • 146. The first one concerns rebate. Currently, those with income up to `
    5 lakh do not pay any income tax in both old and new tax regimes.
    I propose to increase the rebate limit to ` 7 lakh in the new tax regime.
    Thus, persons in the new tax regime, with income up to ` 7 lakh will not have to pay any tax.
  • 147. The second proposal relates to middle-class individuals.
    I had introduced, in the year 2020, the new personal income tax regime with six income slabs
    starting from ` 2.5 lakh. I propose to change the tax structure in this regime
    by reducing the number of slabs to five
    and increasing the tax exemption limit to ` 3 lakh.
    New personal income tax regime:
    The new tax rates are:
    0 to 3.00 lakhs.Nil.
    3 to 6.00 lakhs.5%
    6 to 9.00 lakhs.10%
    9 to 12.00 lakhs.15%
    12 to 15.00 lakhs.20%
    Above 15 lakhs 30%


  • 148. This will provide major relief to all tax payers in the new regime.
    An individual with an annual income of ` 9 lakh will be required to pay only ` 45,000/-.
    This is only 5 per cent of his or her income.
    It is a reduction of 25 per cent on what he or she is required to pay now, ie, ` 60,000/-.
    Similarly, an individual with an income of ` 15 lakh would be required to pay only
    ` 1.5 lakh or 10 per cent of his or her income,
    a reduction of 20 per cent from the existing liability of ` 1,87,500/.
  • 149. My third proposal is for the salaried class and the pensioners including family pensioners,
    for whom I propose to extend the benefit of standard deduction to the new tax regime.
    Each salaried person with an income of ` 15.5 lakh or more will thus stand to benefit by ` 52,500.
  • 150. My fourth announcement in personal income tax is regarding the highest tax rate
    which in our country is 42.74 per cent.
    This is among the highest in the world.
    I propose to reduce the highest surcharge rate from 37 per cent to 25 per cent in the new tax regime.
    This would result in reduction of the maximum tax rate to 39 per cent.
  • 151. Lastly, the limit of ` 3 lakh for tax exemption on leave encashment on
    retirement of non-government salaried employees
    was last fixed in the year 2002, when the highest basic pay in the government was ` 30,000/- pm.
    In line with the increase in government salaries, I am proposing to increase this limit to ` 25 lakh.
  • 152. We are also making the new income tax regime as the default tax regime.
    However, citizens will continue to have the option to avail the benefit of the old tax regime.

  • 153. Apart from these, I am also making some other changes as given in the annexure.




    Annexure to Part B of the Budget Speech 2023-24
    Amendments relating to Direct Taxes
    A. PROVIDING TAX RELIEF UNDER NEW PERSONAL TAX REGIME

  • A.1 The new tax regime for Individual and HUF, introduced by the Finance Act 2020, is now proposed to be the default regime.
  • A.2 This regime would also become the default regime for AOP (other than co-operative), BOI and AJP.
  • A.3 Any individual, HUF, AOP (other than co-operative), BOI or AJP not willing to be taxed under this new regime can opt to be taxed under the old regime. For those person having income under the head “profit and gains of business or profession and having opted for old regime can revoke that option only once and after that they will continue to be taxed under the new regime. For those not having income under the head “profit and gains of business or profession, option for old regime may be exercised in each year.
  • A.4 Substantial relief is proposed under the new regime with new slabs and tax rates as under:
    0 to 3.00 lakhs.Nil.
    3 to 6.00 lakhs.5%
    6 to 9.00 lakhs.10%
    9 to 12.00 lakhs.15%
    12 to 15.00 lakhs.20%
    Above 15 lakhs 30%

  • A.5 Resident individual with total income up to ` 5,00,000 do not pay any tax due to rebate under both old and new regime. It is proposed to increase the rebate for the resident individual under the new regime so that they do not pay tax if their total income is up to ` 7,00,000.
  • A.6 Standard deduction of ` 50,000 to salaried individual, and deduction from family pension up to ` 15,000, is currently allowed only under the old regime. It is proposed to allow these two deductions under the new regime also.
  • A.7 Surcharge on income-tax under both old regime and new regime is 10 per cent if income is above ` 50 lakh and up to ` 1 crore, 15 per cent if income is above `1 crore and up to ` 2 crore, 25 per cent if income is above ` 2 crore and up to ` 5 crore, and 37 per cent if income is above ` 5 crore. It is proposed that the for those individuals, HUF, AOP (other than co-operative), BOI and AJP under the new regime, surcharge would be same except thatthe surcharge rate of 37 per cent will not apply. Highest surcharge shall be 25 per cent for income above 2 crores. This would reduce the maximum rate from about 42.7 per cent to about 39 per cent. No change in surcharge is proposed for those who opt to be under the old regime.
  • A.8 Encashment of earned leave up to 10 months of average salary, at the time of retirement in case of an employee (other than an employee of the Central Government or State Government), is exempt under sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act (the Act) to the extent notified. The maximum amount which can be exempted is 3 lakh at present. It is proposed to issue notification to extend this limit to 25 lakh.



  • Bank fixed deposit interest rates

    Updated on January 03,2023.

    (Interest % per annum)

    Bank
    1 Year
    3 Year
    5 Year
    SC add int


    Bank of Baroda
    6.75
    6.75
    6.25
    0.50/0.50/0.65


    Bank of India
    5.75
    6.25
    6.00
    0.50/0.50/0.75


    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.


    INCOME-TAX DEDUCTION FROM SALARIES UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961 -FINANCIAL YEAR 2022-23

    CIRCULAR NO. 24/2022 of GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL BOARD OF DIRECT TAXES


    Read here the detailed circular.




    December 07 , 2022.
    RBI Increase the policy rates
    Monetary Policy Statement, 2022-23 December 5-7, 2022-Excerpts
  • On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 7, 2022) decided to:
  • Increase the policy repo rate under the liquidity adjustment facility (LAF) by 35 basis points to 6.25 per cent with immediate effect.
  • Consequently, the standing deposit facility (SDF) rate stands adjusted to 6.00 per cent and
  • the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent.
  • The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth.
  • 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.
    revised Rates :
  • Policy Repo Rate : 6.25%
  • Standing Deposit Facility Rate : 6.00%
  • Marginal Standing Facility Rate : 6.50%
  • Bank Rate : 6.50%
  • Fixed Reverse Repo Rate : 3.35%
  • Cash Reserve Ratio (CRR) : 4.50%
  • Standing Liquidity Ratio(SLR): 18.00%

    Read more .

    Click here to know
    Repo Rate.

    Reverse Repo Rate.

    Bank Rate.

    Cash Reserve Ratio(CRR).

    Statutory Liquidity Ratio(SLR).


  • November, 14, 2022.
    Dearness Allowance payable to Bank Officers and Staff from August 2022.
  • Average CPI(IW) Index for the Quarter : 8576.7
  • Number of Slabs for DA for current quarter : 556 slabs
  • Increase in slabs for current quarter : 30 slabs
  • Old D A Percentage : 36.82 %
  • Revised D A Percentage : 38.92 %
  • Increase in D A Percentage : 2.10 %
    Click here for DA Chart for November 2022 to January 2023.

  • November 01 , 2022.
    Latest Deposit Interesr rates of Public Sector and Private Sector Banks .
    Deposit Interest Rates -Public Sector Banks .

    Deposit Interest Rates -Private Sector Banks .

    October 22 , 2022.
    National Savings Certificate VIIIth issue- Investment and Accrued Interest eligible for deduction from Income for financial year 2022-23.
    Regular investment in National Savings Certificate is one of the attractive investment avenue to reduce tax liability. Here is a simple calculator to know the amount you can claim as deuctions from income U/S 80C for the financial year 2022-23.
    Nsc Accrued Interest Calculator-FY 2022-23.

    September 08 , 2022.
    Guidelines on Digital Lending.
    Excerpt from RBI Circular.
  • Annual Percentage Rate (APR): APR is the effective annualised rate charged to the borrower of a digital loan. .
  • Digital Lending: A remote and automated lending process, largely by use of seamless digital technologies for customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service.
  • Regulated Entities (REs )shall ensure that all loan servicing, repayment, etc., shall be executed by the borrower directly in the RE’s bank account without any pass-through account/ pool account of any third party. The disbursements shall always be made into the bank account of the borrower except for disbursals covered exclusively under statutory or regulatory mandate (of RBI or of any other regulator), flow of money between REs for co-lending transactions2 and disbursals for specific end use, provided the loan is disbursed directly into the bank account of the end-beneficiary. REs shall ensure that in no case, disbursal is made to a third-party account, including the accounts of LSPs and their DLAs, except as provided for in these guidelines.
  • REs shall ensure that any fees, charges, etc., payable to LSPs are paid directly by them (REs) and are not charged by LSP to the borrower directly.
  • The penal interest/charges levied, if any, on the borrowers shall be based on the outstanding amount of the loan. Further, rate of such penal charges shall be disclosed upfront on an annualized basis to the borrower in the Key Fact Statement (KFS).
  • Annual Percentage Rate (APR) - APR as all-inclusive cost of digital loans for the borrower shall be disclosed upfront by REs and shall also be a part of the Key Fact Statement.
  • REs shall provide a Key Fact Statement (KFS) to the borrower before the execution of the contract in a standardized format for all digital lending products.
  • The KFS shall, apart from other necessary information, contain the details of APR, the recovery mechanism, details of grievance redressal officer designated specifically to deal with digital lending/ FinTech related matter and the cooling-off/ look-up period.
  • Any fees, charges, etc., which are not mentioned in the KFS cannot be charged by the REs to the borrower at any stage during the term of the loan.
    Read more


  • July 23 , 2022
    The Reserve Bank (Depositor Education and Awareness Fund) Scheme, 2014
    A brief excerpts from RBI Circulars:
  • Any amount remaining unclaimed for ten years or more are to be transferred to the fund including the accrued interest.
  • Banks to display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites.
  • Banks to update their websites at least on a monthly basis.

    1.The Depositor Education and Awareness Fund Scheme, 2014
    The amounts to be credited to the Fund shall be the credit balances in any deposit account maintained with banks which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, including:-
    (a) savings bank deposit accounts;
    (b) fixed or term deposit accounts;
    (c) cumulative/recurring deposit accounts;
    (d) current deposit account;
    (e) other deposit accounts in any form or with any name;
    (f) cash credit account;
    (g) loan accounts after due appropriation by the banks;
    (h) margin money against issue of Letter of Credit/Guarantee etc., or any security deposit in any account;
    (i) outstanding telegraphic transfers, mail transfers, demand drafts, pay orders, bankers cheques, travelers cheques, sundry deposit accounts, vostro accounts, inter-bank clearing adjustments and other such transitory accounts, unreconciled credit balances on account of ATM transactions, etc.; and
    (j) undrawn balance amounts remaining in any prepaid card issued by banks.
    Read more.

    2. Operational Guidelines
    As per paragraph 3(vi) of the Scheme, banks shall calculate the cumulative balances in all accounts along with interest accrued, as on the day prior to the effective date, i.e May 23, 2014 and such amounts due should be transferred to the Depositor Education and Awareness Fund (Fund) on June 30, 2014 (before the close of banking hours). Subsequently, as mentioned in paragraph 3(vii) of the Scheme, banks shall transfer to the Fund the amounts becoming due in each calendar month
    Read more

    3. Clarifications on Operational Guidelines
    As per paragraph 3(vi) of the Scheme, banks shall calculate the cumulative balances in all accounts along with interest accrued, as on the day prior to the effective date, i.e, May 23, 2014 and such amounts due should be transferred to the Depositor Education and Awareness Fund (Fund) on June 30, 2014 before the close of banking hours. However, as regards the calculation of interest accrued on such accounts, it has been clearly indicated in paragraph 3(v) of the Scheme that bank shall transfer to the Fund the entire amount as specified in sub-paragraph (iii), including the accrued interest that the bank would have been required to pay to the customer/ depositor as on the date of transfer to the Fund”. It is once again clarified that in all such unclaimed interest bearing deposits that would be transferred to the Fund by the banks on June 30, 2014, interest accrued should be credited in the account till the date of transfer to the Fund. Illustratively, if a bank transfers to the Fund any unclaimed Saving Bank account balance on June 30, 2014 the interest up to and for June 29, 2014 would be paid into the account by the bank. The Fund would pay interest with effect from June 30, 2014 till the date of payment to the customer, at the interest rate notified by the Reserve Bank from time to time.
    Read more

    4.Unclaimed Deposits/ Inoperative Accounts Banks to Display list of Inoperative Accounts
    Banks are, therefore, advised that they should display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites. The list so displayed on the websites must contain only the names of the account holder(s) and his/her address in respect of unclaimed deposits/inoperative accounts. In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. However, the account number, its type and the name of the branch shall not be disclosed on the banks website. The list so published by the banks should also provide a 'Find ' option to enable the public to search the list of accounts by name of the account holder.
    . Read more

    5. Interest rates payable on unclaimed interest bearing deposit
    All the banks are advised to calculate the interest payable on interest bearing deposits transferred to RBI at the rate of 4 per cent p.a. up to June 30, 2018, 3.5 per cent w.e.f. July 1, 2018 up to May 10, 2021 and at 3 per cent with effect from May 11, 2021 till the time of payment to the depositor/claimant.
    Read more

    6. Updation of list of inoperative accounts on their website
    It is observed that banks are not updating their websites with the list of unclaimed deposits/ inoperative accounts which are inactive/ inoperative for ten years or more. Banks are, therefore, advised to update their websites at least on a monthly basis by: i) adding the names and address of the account holders whose deposits have been transferred to the Fund during the month/period. ii) deleting the names and address of account holders whose claim were admitted by the banks during the month/period. In doing this the banks need not wait for refund from the Fund.
    Read more


  • 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)

  • June 25 , 2022.
    RBI Payment Vision 2025.

    The current Vision document builds on the Payments Vision 2019-21 document and outlines the thought process for the period up to December 2025. It may not necessarily be constrained by what the Payments Vision documents. For instance, recent developments in terms of (a) establishment of Reserve Bank Innovation Hub; (b) framework for security of card transactions like switch on / off facility; (c) guidelines on limiting customer liability in case of unauthorised transactions using Prepaid Payment Instruments (PPIs); (d) enabling Online Dispute Resolution (ODR) for digital payments;

    The Payments Vision 2021 had envisaged to empower every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable, and had set four goalposts of Competition, Cost, Convenience and Confidence with 36 specific action points and 12 expected outcomes.

    The Payments Vision 2025 promises to further elevate our payment systems towards a realm of empowering users with affordable payment options accessible anytime and anywhere with convenience**

    The Payments Vision 2025 document is presented across the five anchor goalposts of Integrity, Inclusion, Innovation, Institutionalisation and Internationalisation..

    Goalposts for Payments Vision 2025 --

  • Weave in alternate authentication mechanism(s) for digital payment transactions (para 4.1.1) --
  • Broaden scope, usage and relevance of LEI in all payment activities --
  • Expand interoperability to contactless transit card payments in offline mode (para 4.1.3)--
  • Enhance scalability and resilience of payment systems (para 4.1.4)--
  • Leverage ODR system for fraud monitoring and reporting (para 4.1.5)--
  • Provide enhancements to CPFIR (para 4.1.6)--
  • Provide payee name look-up for fund transfers (para 4.1.7) --
  • Increase proportionate oversight of PSOs (para 4.1.8)--
  • Include assessment of RTGS & NEFT under Principles for Financial Market Infrastructures (PFMIs) (para 4.1.9) --
  • Explore local processing of payment transactions --
  • Study creation of Digital Payments Protection Fund (DPPF) (para 4.2.10)
  • Make payment systems more inclusive (para 4.1.11--
  • Read full text of "RBI Payment Vision 2025."

  • Reserve Bank increases repo rate with immediate effect.

    Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 4.90 per cent with immediate effect.
    Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.15 per cent.

    The revised Policy Rates and Reserve Ratios as on 08.06.2022:
  • Policy Repo Rate : 4.90%
  • Standing Deposit Facility Rate : 4.65%
  • Marginal Standing Facility Rate : 5.15%
  • Bank Rate : 5.15%
  • Fixed Reverse Repo Rate : 3.35%
  • Cash Reserve Ratio (CRR) : 4.50%
  • Standing Liquidity Ratio(SLR): 18.00%

    Read RBI Monetary Policy Statement, 2022-23 -(MPC) June 6-8, 2022

    Cash Reserve Ratio (CRR) :CRR is the portion of the deposits (total demand and time liabilities ) of a bank to be kept as cash reserve. The banks can maintain the cash reserve in the form of cash with the bank itself or credit balance in its account maintained with RBI It is a statutory requirement.

    Statutory Liquidity Ratio (SLR) : SLR is the portion of deposits ( net demand and time liabilities )of a bank to be maintained as cash, gold or approved securities.

    Repo Rate: Repo Rate is the rate at which banks can borrow money from RBI against listed securities with agreement to repurchase the securities at a specified future date from RBI.

    Reverse Repo Rate :Reverse Repo Rate is exactly the opposite of the Repo Rate .Banks can park their funds with RBI to take advantage of the higher Reverse Repo Rate.

    Bank Rate:Bank Rate is the rate at which commercial banks can borrow money from RBI. The Bank Rate movement indicates the long term health of the economy. Upward revision of Bank Rate will make funds costlier for banks which may result in banks raising their lending rates.


    For further readings please follow the links :

    Cash Reserve Ratio (CRR) revised

    Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions - 2021


  • 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.

  • Implementation of Bharat Bill Payment System (BBPS) - Guidelines.


  • The Bharat Bill Payment System (BBPS) will function as a tiered structure for operating the bill payment system in the country with a single brand image providing convenience of ‘anytime anywhere’ bill payment to customers.
  • The objective of the BBPS is to implement an integrated bill payment system in the country that offers interoperable and accessible bill payment services to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment. Hence, it has been decided that the existing players (both banks & non-banks) catering to the requirements of bill payments as well as aggregation of payment services will be a part of BBPS.
  • Customer protection and grievance redressal
    Under the BBPS, the BBPOUs shall disclose all important terms and conditions in clear and simple language (preferably in English, Hindi and the local language) comprehensible to the customers of various billers/users of its services.
    These disclosures should include: All charges and fees associated with the use of bill payment facility, and The customer service telephone numbers and website URL
  • Each complaint will be assigned and identified by a unique complaint reference number within the BBPS.
    After the complaint is lodged at any location, the BBPCU and/or the concerned BBPOU will escalate the complaint to the respective biller for redressal.
    A suitable tracking system has to be enabled so that the fate of the complaint is known to the customer (on the basis of the unique complaint reference number) at any location.
    The customer should not be levied any charges for lodging any complaints in the BBPS.
    read more..

  • 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 .

  • National Savings Certificate accrued Interest eligible for deduction from salary for financial year 2021-22.
    One of the popular investment options for salaried persons to reduce tax liability is regular yearly investments in national Savings Certificate. Apart from claiming the entire amount invested in the respective financial year, one can claim the accrued interest on the certificates bought earlier years U/S 80C of Income Tax Act.
    Here is a calculator to know the interest you can claim as deductions for FY 2021-22.


    Income Tax Calculator FY 2022-23.

    Know your estimated tax liability under " NEW AND OLD TAX REGIME" and choose the quatum of investments required to reduce your tax liability.


    Income Tax Calculator FY 2021-22.
    Before filing income tax returns, know your tax liability under " NEW AND OLD TAX REGIME" and choose the one favorable to you.



    Various regulations on Housing Finance-Reserve Bank of India Circular dated 01.04.2022:
    Reserve Bank of India issued updated guidelines under Housing Finance covering various aspects of Housing Finance
  • Purpose
  • Various Regulations.
  • Quantum of Loan.
  • Innovative Housing Loan Products-Upfront Disbursal of Housing Loans.
  • Rate of Interest.
  • Exposure to Real Estate.
  • Housing Loans under Priority Sector.
  • Acquisition of Land.
  • Construction of Building / ready Built House.
  • Loans for repairs to the damaged dwelling units of families.
  • Finance to a person who already owns a house.
  • Purchase of a house by a borrower who proposes to let it out on rental basis.
  • Buying an old house where one is presently residing as a tenant.
  • Finance for construction meant for improving the conditions in slum areas .
  • Credit for slum improvement schemes .

    Read detailed RBI Circular.




  • Tax on Salary,Arrears of Salary , Retirement benefits -Income Tax Department circular.

    Basic Savings Bank Deposit Account.

    Frequently Asked Questions - Basic Savings Bank Deposit Account (BSBDA)-FAQs (RRBs/StCBs/DCCBs)

    Safe Deposit Lockers/Articles in Safe Custody

    Banking Facility for Senior Citizens and Differently abled Persons

    Doorstep Banking Services for Senior Citizens and Differently Abled Persons

    Frequently Asked Questions -Sovereign Gold Bond Scheme

    Sovereign Gold Bond Scheme 2020-21

    Master Direction - Deposits and Accounts-Reserve Bank of India



    Master Circular on Customer Service in Banks.

    Master Circular-Housing Finance

    Master Circular-Facility for Exchange of Notes and Coins

    Master Circular on Customer Service in Banks.

    Master Direction - Know Your Customer (KYC) 2016 Reserve Bank of India.

    Master Direction - Deposits and Accounts-Reserve Bank of India

    Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016-Updated February 2019.

    Bank Fixed Deposit Schemes-How to Choose the right Scheme meeting your requirement.
    We quite often come across various deposit schemes from banks.
  • FIXED DEPOSIT.
  • CUMULATIVE DEPOSIT.
  • REINVESTMENT DEPOSIT .
  • MONTHLY INCOME FIXED DEPOSIT ETC . Some time we get confused to select the right scheme. If you understand the way interest is calculated and the periodicity by which you wish to avail the interest and the maturity proceeds,all your confusions will get cleared. Your return on the deposit depends on just three factors.
  • The period of deposit.
  • The periodicity of interest you intend to receive.
  • The rate of interest.

    Except the rate of interest ,other two factors depend on your requirements. So your job is simplified in looking for the Bank offering highest interest for the period of deposit you intend to keep with the bank. As per existing norms for calculation of interest ,it is uniform among the banks. Interest on your deposit is calculated at the specified rate and compounded quarterly.

    The fixed deposit schemes can be classified under two broad category. Ordinary Fixed Deposit wherein you receive the interest every quarter. We may call this "Non-Cumulative Fixed Deposit" or simply "Fixed Deposit" For example if you deposit Rs100000 for one year at interest 10 % pa, you will receive Rs2500 on completion of every quarter and the Principal amount on completion of the deposit period(here 1 year).

    In the other scheme called as Cumulative Deposit Scheme, as you are not availing the quarterly interest, Banks take it as your investment and give additional interest for the same. Hence you earn more interest than what you otherwise earn under Non-Cumulative Fixed Deposits.

    Under Cumulative Deposit Scheme ,Interest will be paid on completion of Deposit Period. If you deposit Rs100000 for one year at interest 10 % pa, you will receive Rs110381 on completion of one year- Rs10381 being interest. You receive Rs381 more than what you may get under Ordinary Fixed Deposit Scheme.

    For the convenience of depositors who want to receive interest every month, Banks have a scheme called "Monthly Interest Deposit Scheme". Under this scheme,you will get interest on every month. As you are receiving the interest before it is due for credit, interest under this scheme will be a little bit less than what you may get under Ordinary Fixed Deposit Scheme. You will get interest of Rs826 every month.Total interest will be Rs9912 To put it in a nutshell,apart from receiving your deposit amount on completion of deposit period you will receive towards interest as under:
  • Cumulative Deposit Scheme :Rs10381 on completion of deposit period.
  • Ordinary Fixed Deposit Scheme :Rs10000 (Rs2500 on completion of every quater-2500*4=10000)
  • Monthly Interest Deposit Scheme:Rs9912 (Rs826 every month-826*12=9912)

    So you can choose the deposit scheme as per your requirement forgetting about the hundreds of schemes offered under different names .


    Related links:
    Deposit Interest Rates of Banks.

    Use the calculator to compare interest and the Maturity values for different deposit schemes.



  • Consolidated RBI Circular on Opening of Current Accounts and CC/OD Accounts by Banks
  • 1.1 For borrowers, where the aggregate exposure3 of the banking system is less than ₹5 crore, banks can open current accounts without any restrictions placed vide this circular subject to obtaining an undertaking from such customers that they (the borrowers) shall inform the bank(s), if and when the credit facilities availed by them from the banking system becomes ₹5 crore or more.
  • 1.2 Where the aggregate exposure of the banking system is ₹5 crore or more:
  • 1.2.1 Borrowers can open current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10 per cent of the aggregate exposure of the banking system to that borrower. In case none of the lenders has at least 10 per cent of the aggregate exposure, the bank having the highest exposure among CC/OD providing banks may open current accounts.
  • 1.2.2 Other lending banks may open only collection accounts subject to the condition that funds deposited in such collection accounts will be remitted within two working days of receiving such funds, to the CC/OD account maintained with the above-mentioned bank (para 1.2.1) maintaining current accounts for the borrower. The balances in such collection accounts shall not be used for repayment of any credit facilities provided by the bank, or as collateral/ margin for availing any fund or non-fund based credit facilities. However, banks maintaining collection accounts are permitted to debit fees/ charges from such accounts before transferring funds to CC/OD account.
  • 1.2.3 Non-lending banks are not permitted to open current/ collection accounts.
  • Read more from RBI Circular

  • All about Banking-Public /Private Sector Banks Deposits, Fixed Deposit Interest Rates,Home Loan Interest Rates-Starting Salary Package of Bank Officers,Clerks-Calculators for Deposit Interest, EMI ,Pension,Gratuity,Income Tax Calculator-New National Pension scheme(NPS) and more...
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    October 22 , 2022.
    National Savings Certificate VIIIth issue- Investment and Accrued Interest eligible for deduction from Income for financial year 2022-23.
    Regular investment in National Savings Certificate is one of the attractive investment avenue to reduce tax liability. Here is a simple calculator to know the amount you can claim as deuctions from income U/S 80C for the financial year 2022-23.
    Nsc Accrued Interest Calculator-FY 2022-23.

    September 30 , 2022.
    RBI Increase the policy repo rate by 50 basis points
    Latest RBI Policy Rates-Repo Rate, Bank Rate, CRR, SLR etc---
    Monetary Policy Statement, 2022-23 Resolution of the Monetary Policy Committee (MPC) September 28-30, 2022-Excerpts
  • Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90 per cent with immediate effect.
  • standing deposit facility (SDF) rate stands adjusted to 5.65 per cent and the marginal standing facility (MSF) rate and the Bank Rate to6.15 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.
    revised Rates :
  • Policy Repo Rate : 5.90%
  • Standing Deposit Facility Rate : 5.65%
  • Marginal Standing Facility Rate : 6.15%
  • Bank Rate : 6.15%
  • Fixed Reverse Repo Rate : 3.35%
  • Cash Reserve Ratio (CRR) : 4.50%
  • Standing Liquidity Ratio(SLR): 18.00%

    Read more .

    Click here to know
    Repo Rate.

    Reverse Repo Rate.

    Bank Rate.

    Cash Reserve Ratio(CRR).

    Statutory Liquidity Ratio(SLR).


  • September 08 , 2022.
    Guidelines on Digital Lending.
    Excerpt from RBI Circular.
  • Annual Percentage Rate (APR): APR is the effective annualised rate charged to the borrower of a digital loan. .
  • Digital Lending: A remote and automated lending process, largely by use of seamless digital technologies for customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service.
  • Regulated Entities (REs )shall ensure that all loan servicing, repayment, etc., shall be executed by the borrower directly in the RE’s bank account without any pass-through account/ pool account of any third party. The disbursements shall always be made into the bank account of the borrower except for disbursals covered exclusively under statutory or regulatory mandate (of RBI or of any other regulator), flow of money between REs for co-lending transactions2 and disbursals for specific end use, provided the loan is disbursed directly into the bank account of the end-beneficiary. REs shall ensure that in no case, disbursal is made to a third-party account, including the accounts of LSPs and their DLAs, except as provided for in these guidelines.
  • REs shall ensure that any fees, charges, etc., payable to LSPs are paid directly by them (REs) and are not charged by LSP to the borrower directly.
  • The penal interest/charges levied, if any, on the borrowers shall be based on the outstanding amount of the loan. Further, rate of such penal charges shall be disclosed upfront on an annualized basis to the borrower in the Key Fact Statement (KFS).
  • Annual Percentage Rate (APR) - APR as all-inclusive cost of digital loans for the borrower shall be disclosed upfront by REs and shall also be a part of the Key Fact Statement.
  • REs shall provide a Key Fact Statement (KFS) to the borrower before the execution of the contract in a standardized format for all digital lending products.
  • The KFS shall, apart from other necessary information, contain the details of APR, the recovery mechanism, details of grievance redressal officer designated specifically to deal with digital lending/ FinTech related matter and the cooling-off/ look-up period.
  • Any fees, charges, etc., which are not mentioned in the KFS cannot be charged by the REs to the borrower at any stage during the term of the loan.
    Read more

  • September 03 , 2022.
    Latest Deposit Interesr rates of Public Sector and Private Sector Banks .
    Deposit Interest Rates -Public Sector Banks .

    Deposit Interest Rates -Private Sector Banks .

    Master Directions-Priority Sector Lending(PSL)-Targets and Classification(Updated as on August 02, 2022)
    Read more---

    July 31 , 2022.
    Dearness Allowance payable to Bank Officers and Staff from August 2022.
  • Average CPI(IW) Index for the Quarter : 8456.18
  • Increase in slabs for current quarter : 54 slabs
  • Number of Slabs for DA for current quarter : 526 slabs
  • D A Percentage : 36.82 %
    Click here for DA Chart for August 2022 to October 2022.

  • July 23 , 2022
    The Reserve Bank (Depositor Education and Awareness Fund) Scheme, 2014
    A brief excerpts from RBI Circulars:
  • Any amount remaining unclaimed for ten years or more are to be transferred to the fund including the accrued interest.
  • Banks to display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites.
  • Banks to update their websites at least on a monthly basis.

    1.The Depositor Education and Awareness Fund Scheme, 2014
    The amounts to be credited to the Fund shall be the credit balances in any deposit account maintained with banks which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, including:-
    (a) savings bank deposit accounts;
    (b) fixed or term deposit accounts;
    (c) cumulative/recurring deposit accounts;
    (d) current deposit account;
    (e) other deposit accounts in any form or with any name;
    (f) cash credit account;
    (g) loan accounts after due appropriation by the banks;
    (h) margin money against issue of Letter of Credit/Guarantee etc., or any security deposit in any account;
    (i) outstanding telegraphic transfers, mail transfers, demand drafts, pay orders, bankers cheques, travelers cheques, sundry deposit accounts, vostro accounts, inter-bank clearing adjustments and other such transitory accounts, unreconciled credit balances on account of ATM transactions, etc.; and
    (j) undrawn balance amounts remaining in any prepaid card issued by banks.
    Read more.

    2. Operational Guidelines
    As per paragraph 3(vi) of the Scheme, banks shall calculate the cumulative balances in all accounts along with interest accrued, as on the day prior to the effective date, i.e May 23, 2014 and such amounts due should be transferred to the Depositor Education and Awareness Fund (Fund) on June 30, 2014 (before the close of banking hours). Subsequently, as mentioned in paragraph 3(vii) of the Scheme, banks shall transfer to the Fund the amounts becoming due in each calendar month
    Read more

    3. Clarifications on Operational Guidelines
    As per paragraph 3(vi) of the Scheme, banks shall calculate the cumulative balances in all accounts along with interest accrued, as on the day prior to the effective date, i.e, May 23, 2014 and such amounts due should be transferred to the Depositor Education and Awareness Fund (Fund) on June 30, 2014 before the close of banking hours. However, as regards the calculation of interest accrued on such accounts, it has been clearly indicated in paragraph 3(v) of the Scheme that bank shall transfer to the Fund the entire amount as specified in sub-paragraph (iii), including the accrued interest that the bank would have been required to pay to the customer/ depositor as on the date of transfer to the Fund”. It is once again clarified that in all such unclaimed interest bearing deposits that would be transferred to the Fund by the banks on June 30, 2014, interest accrued should be credited in the account till the date of transfer to the Fund. Illustratively, if a bank transfers to the Fund any unclaimed Saving Bank account balance on June 30, 2014 the interest up to and for June 29, 2014 would be paid into the account by the bank. The Fund would pay interest with effect from June 30, 2014 till the date of payment to the customer, at the interest rate notified by the Reserve Bank from time to time.
    Read more

    4.Unclaimed Deposits/ Inoperative Accounts Banks to Display list of Inoperative Accounts
    Banks are, therefore, advised that they should display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites. The list so displayed on the websites must contain only the names of the account holder(s) and his/her address in respect of unclaimed deposits/inoperative accounts. In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. However, the account number, its type and the name of the branch shall not be disclosed on the banks website. The list so published by the banks should also provide a 'Find ' option to enable the public to search the list of accounts by name of the account holder.
    . Read more

    5. Interest rates payable on unclaimed interest bearing deposit
    All the banks are advised to calculate the interest payable on interest bearing deposits transferred to RBI at the rate of 4 per cent p.a. up to June 30, 2018, 3.5 per cent w.e.f. July 1, 2018 up to May 10, 2021 and at 3 per cent with effect from May 11, 2021 till the time of payment to the depositor/claimant.
    Read more

    6. Updation of list of inoperative accounts on their website
    It is observed that banks are not updating their websites with the list of unclaimed deposits/ inoperative accounts which are inactive/ inoperative for ten years or more. Banks are, therefore, advised to update their websites at least on a monthly basis by: i) adding the names and address of the account holders whose deposits have been transferred to the Fund during the month/period. ii) deleting the names and address of account holders whose claim were admitted by the banks during the month/period. In doing this the banks need not wait for refund from the Fund.
    Read more


  • 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.
    June 25 , 2022.
    RBI Payment Vision 2025.

    The current Vision document builds on the Payments Vision 2019-21 document and outlines the thought process for the period up to December 2025. It may not necessarily be constrained by what the Payments Vision documents. For instance, recent developments in terms of (a) establishment of Reserve Bank Innovation Hub; (b) framework for security of card transactions like switch on / off facility; (c) guidelines on limiting customer liability in case of unauthorised transactions using Prepaid Payment Instruments (PPIs); (d) enabling Online Dispute Resolution (ODR) for digital payments;

    The Payments Vision 2021 had envisaged to empower every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable, and had set four goalposts of Competition, Cost, Convenience and Confidence with 36 specific action points and 12 expected outcomes.

    The Payments Vision 2025 promises to further elevate our payment systems towards a realm of empowering users with affordable payment options accessible anytime and anywhere with convenience**

    The Payments Vision 2025 document is presented across the five anchor goalposts of Integrity, Inclusion, Innovation, Institutionalisation and Internationalisation..

    Goalposts for Payments Vision 2025 --

  • Weave in alternate authentication mechanism(s) for digital payment transactions (para 4.1.1) --
  • Broaden scope, usage and relevance of LEI in all payment activities --
  • Expand interoperability to contactless transit card payments in offline mode (para 4.1.3)--
  • Enhance scalability and resilience of payment systems (para 4.1.4)--
  • Leverage ODR system for fraud monitoring and reporting (para 4.1.5)--
  • Provide enhancements to CPFIR (para 4.1.6)--
  • Provide payee name look-up for fund transfers (para 4.1.7) --
  • Increase proportionate oversight of PSOs (para 4.1.8)--
  • Include assessment of RTGS & NEFT under Principles for Financial Market Infrastructures (PFMIs) (para 4.1.9) --
  • Explore local processing of payment transactions --
  • Study creation of Digital Payments Protection Fund (DPPF) (para 4.2.10)
  • Make payment systems more inclusive (para 4.1.11--
  • Read full text of "RBI Payment Vision 2025."

  • Reserve Bank increases repo rate with immediate effect.

    Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 4.90 per cent with immediate effect.
    Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.15 per cent.

    The revised Policy Rates and Reserve Ratios as on 08.06.2022:
  • Policy Repo Rate : 4.90%
  • Standing Deposit Facility Rate : 4.65%
  • Marginal Standing Facility Rate : 5.15%
  • Bank Rate : 5.15%
  • Fixed Reverse Repo Rate : 3.35%
  • Cash Reserve Ratio (CRR) : 4.50%
  • Standing Liquidity Ratio(SLR): 18.00%

    Read RBI Monetary Policy Statement, 2022-23 -(MPC) June 6-8, 2022

    Cash Reserve Ratio (CRR) :CRR is the portion of the deposits (total demand and time liabilities ) of a bank to be kept as cash reserve. The banks can maintain the cash reserve in the form of cash with the bank itself or credit balance in its account maintained with RBI It is a statutory requirement.

    Statutory Liquidity Ratio (SLR) : SLR is the portion of deposits ( net demand and time liabilities )of a bank to be maintained as cash, gold or approved securities.

    Repo Rate: Repo Rate is the rate at which banks can borrow money from RBI against listed securities with agreement to repurchase the securities at a specified future date from RBI.

    Reverse Repo Rate :Reverse Repo Rate is exactly the opposite of the Repo Rate .Banks can park their funds with RBI to take advantage of the higher Reverse Repo Rate.

    Bank Rate:Bank Rate is the rate at which commercial banks can borrow money from RBI. The Bank Rate movement indicates the long term health of the economy. Upward revision of Bank Rate will make funds costlier for banks which may result in banks raising their lending rates.


    For further readings please follow the links :

    Cash Reserve Ratio (CRR) revised

    Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions - 2021


  • 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.

  • Implementation of Bharat Bill Payment System (BBPS) - Guidelines.


  • The Bharat Bill Payment System (BBPS) will function as a tiered structure for operating the bill payment system in the country with a single brand image providing convenience of ‘anytime anywhere’ bill payment to customers.
  • The objective of the BBPS is to implement an integrated bill payment system in the country that offers interoperable and accessible bill payment services to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment. Hence, it has been decided that the existing players (both banks & non-banks) catering to the requirements of bill payments as well as aggregation of payment services will be a part of BBPS.
  • Customer protection and grievance redressal
    Under the BBPS, the BBPOUs shall disclose all important terms and conditions in clear and simple language (preferably in English, Hindi and the local language) comprehensible to the customers of various billers/users of its services.
    These disclosures should include: All charges and fees associated with the use of bill payment facility, and The customer service telephone numbers and website URL
  • Each complaint will be assigned and identified by a unique complaint reference number within the BBPS.
    After the complaint is lodged at any location, the BBPCU and/or the concerned BBPOU will escalate the complaint to the respective biller for redressal.
    A suitable tracking system has to be enabled so that the fate of the complaint is known to the customer (on the basis of the unique complaint reference number) at any location.
    The customer should not be levied any charges for lodging any complaints in the BBPS.
    read more..

  • 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 .

  • National Savings Certificate accrued Interest eligible for deduction from salary for financial year 2021-22.
    One of the popular investment options for salaried persons to reduce tax liability is regular yearly investments in national Savings Certificate. Apart from claiming the entire amount invested in the respective financial year, one can claim the accrued interest on the certificates bought earlier years U/S 80C of Income Tax Act.
    Here is a calculator to know the interest you can claim as deductions for FY 2021-22.


    Income Tax Calculator FY 2022-23.

    Know your estimated tax liability under " NEW AND OLD TAX REGIME" and choose the quatum of investments required to reduce your tax liability.


    Income Tax Calculator FY 2021-22.
    Before filing income tax returns, know your tax liability under " NEW AND OLD TAX REGIME" and choose the one favorable to you.



    Various regulations on Housing Finance-Reserve Bank of India Circular dated 01.04.2022:
    Reserve Bank of India issued updated guidelines under Housing Finance covering various aspects of Housing Finance
  • Purpose
  • Various Regulations.
  • Quantum of Loan.
  • Innovative Housing Loan Products-Upfront Disbursal of Housing Loans.
  • Rate of Interest.
  • Exposure to Real Estate.
  • Housing Loans under Priority Sector.
  • Acquisition of Land.
  • Construction of Building / ready Built House.
  • Loans for repairs to the damaged dwelling units of families.
  • Finance to a person who already owns a house.
  • Purchase of a house by a borrower who proposes to let it out on rental basis.
  • Buying an old house where one is presently residing as a tenant.
  • Finance for construction meant for improving the conditions in slum areas .
  • Credit for slum improvement schemes .

    Read detailed RBI Circular.


  • Post Office Small Savings Schemes
    Post Office Small Savings Scheme details as on April 2022. Interest Rates revised on quarterly basis.

    Bank Dearness Allowance Chart
    from February 2022 to April 2022 to Bank Officers, Clerks , Sub staff and Bank Pensioners.

    DA Feb 2022 -IBA circular

    Dearness relief payable to pensioners
    for the period February 2022 to July 2022.

    Starting Salary of Bank Officers ,Clerks and Sub-Staff

    Officers' Settlement-Joint Note 8-Dated 11.11.2020

    11th Bipartite Settlement dt 11.11.2020

    Index numbers month wise

    CPI Index New Serious Notes.;

    Sovereign Gold Bond Scheme
    Consolidated Procedural Guidelines.

    List of benefits available to Salaried Persons-FY 2021-22.

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

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

    RESERVE BANK OF INDIA-
    Major Policy Announcement.

    Chronology of announcements from March 2020 to March 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


    Tax on Salary,Arrears of Salary , Retirement benefits -Income Tax Department circular.

    Basic Savings Bank Deposit Account.

    Frequently Asked Questions - Basic Savings Bank Deposit Account (BSBDA)-FAQs (RRBs/StCBs/DCCBs)

    Safe Deposit Lockers/Articles in Safe Custody

    Banking Facility for Senior Citizens and Differently abled Persons

    Doorstep Banking Services for Senior Citizens and Differently Abled Persons

    Frequently Asked Questions -Sovereign Gold Bond Scheme

    Sovereign Gold Bond Scheme 2020-21

    Master Direction - Deposits and Accounts-Reserve Bank of India



    Master Circular on Customer Service in Banks.

    Master Circular-Housing Finance

    Master Circular-Facility for Exchange of Notes and Coins

    Master Circular on Customer Service in Banks.

    Master Direction - Know Your Customer (KYC) 2016 Reserve Bank of India.

    Master Direction - Deposits and Accounts-Reserve Bank of India

    Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016-Updated February 2019.

    Bank Fixed Deposit Schemes-How to Choose the right Scheme meeting your requirement.
    We quite often come across various deposit schemes from banks.
  • FIXED DEPOSIT.
  • CUMULATIVE DEPOSIT.
  • REINVESTMENT DEPOSIT .
  • MONTHLY INCOME FIXED DEPOSIT ETC . Some time we get confused to select the right scheme. If you understand the way interest is calculated and the periodicity by which you wish to avail the interest and the maturity proceeds,all your confusions will get cleared. Your return on the deposit depends on just three factors.
  • The period of deposit.
  • The periodicity of interest you intend to receive.
  • The rate of interest.

    Except the rate of interest ,other two factors depend on your requirements. So your job is simplified in looking for the Bank offering highest interest for the period of deposit you intend to keep with the bank. As per existing norms for calculation of interest ,it is uniform among the banks. Interest on your deposit is calculated at the specified rate and compounded quarterly.

    The fixed deposit schemes can be classified under two broad category. Ordinary Fixed Deposit wherein you receive the interest every quarter. We may call this "Non-Cumulative Fixed Deposit" or simply "Fixed Deposit" For example if you deposit Rs100000 for one year at interest 10 % pa, you will receive Rs2500 on completion of every quarter and the Principal amount on completion of the deposit period(here 1 year).

    In the other scheme called as Cumulative Deposit Scheme, as you are not availing the quarterly interest, Banks take it as your investment and give additional interest for the same. Hence you earn more interest than what you otherwise earn under Non-Cumulative Fixed Deposits.

    Under Cumulative Deposit Scheme ,Interest will be paid on completion of Deposit Period. If you deposit Rs100000 for one year at interest 10 % pa, you will receive Rs110381 on completion of one year- Rs10381 being interest. You receive Rs381 more than what you may get under Ordinary Fixed Deposit Scheme.

    For the convenience of depositors who want to receive interest every month, Banks have a scheme called "Monthly Interest Deposit Scheme". Under this scheme,you will get interest on every month. As you are receiving the interest before it is due for credit, interest under this scheme will be a little bit less than what you may get under Ordinary Fixed Deposit Scheme. You will get interest of Rs826 every month.Total interest will be Rs9912 To put it in a nutshell,apart from receiving your deposit amount on completion of deposit period you will receive towards interest as under:
  • Cumulative Deposit Scheme :Rs10381 on completion of deposit period.
  • Ordinary Fixed Deposit Scheme :Rs10000 (Rs2500 on completion of every quater-2500*4=10000)
  • Monthly Interest Deposit Scheme:Rs9912 (Rs826 every month-826*12=9912)

    So you can choose the deposit scheme as per your requirement forgetting about the hundreds of schemes offered under different names .


    Related links:
    Deposit Interest Rates of Banks.

    Use the calculator to compare interest and the Maturity values for different deposit schemes.



  • Consolidated RBI Circular on Opening of Current Accounts and CC/OD Accounts by Banks
  • 1.1 For borrowers, where the aggregate exposure3 of the banking system is less than ₹5 crore, banks can open current accounts without any restrictions placed vide this circular subject to obtaining an undertaking from such customers that they (the borrowers) shall inform the bank(s), if and when the credit facilities availed by them from the banking system becomes ₹5 crore or more.
  • 1.2 Where the aggregate exposure of the banking system is ₹5 crore or more:
  • 1.2.1 Borrowers can open current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10 per cent of the aggregate exposure of the banking system to that borrower. In case none of the lenders has at least 10 per cent of the aggregate exposure, the bank having the highest exposure among CC/OD providing banks may open current accounts.
  • 1.2.2 Other lending banks may open only collection accounts subject to the condition that funds deposited in such collection accounts will be remitted within two working days of receiving such funds, to the CC/OD account maintained with the above-mentioned bank (para 1.2.1) maintaining current accounts for the borrower. The balances in such collection accounts shall not be used for repayment of any credit facilities provided by the bank, or as collateral/ margin for availing any fund or non-fund based credit facilities. However, banks maintaining collection accounts are permitted to debit fees/ charges from such accounts before transferring funds to CC/OD account.
  • 1.2.3 Non-lending banks are not permitted to open current/ collection accounts.
  • Read more from RBI Circular

  • All about Banking-Public /Private Sector Banks Deposits, Fixed Deposit Interest Rates,Home Loan Interest Rates-Starting Salary Package of Bank Officers,Clerks-Calculators for Deposit Interest, EMI ,Pension,Gratuity,Income Tax Calculator-New National Pension scheme(NPS) and more...
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    October 22 , 2022.
    National Savings Certificate VIIIth issue- Investment and Accrued Interest eligible for deduction from Income for financial year 2022-23.
    Regular investment in National Savings Certificate is one of the attractive investment avenue to reduce tax liability. Here is a simple calculator to know the amount you can claim as deuctions from income U/S 80C for the financial year 2022-23.
    Nsc Accrued Interest Calculator-FY 2022-23.

    September 30 , 2022.
    RBI Increase the policy repo rate by 50 basis points
    Latest RBI Policy Rates-Repo Rate, Bank Rate, CRR, SLR etc---
    Monetary Policy Statement, 2022-23 Resolution of the Monetary Policy Committee (MPC) September 28-30, 2022-Excerpts
  • Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90 per cent with immediate effect.
  • standing deposit facility (SDF) rate stands adjusted to 5.65 per cent and the marginal standing facility (MSF) rate and the Bank Rate to6.15 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.
    revised Rates :
  • Policy Repo Rate : 5.90%
  • Standing Deposit Facility Rate : 5.65%
  • Marginal Standing Facility Rate : 6.15%
  • Bank Rate : 6.15%
  • Fixed Reverse Repo Rate : 3.35%
  • Cash Reserve Ratio (CRR) : 4.50%
  • Standing Liquidity Ratio(SLR): 18.00%

    Read more .

    Click here to know
    Repo Rate.

    Reverse Repo Rate.

    Bank Rate.

    Cash Reserve Ratio(CRR).

    Statutory Liquidity Ratio(SLR).


  • September 08 , 2022.
    Guidelines on Digital Lending.
    Excerpt from RBI Circular.
  • Annual Percentage Rate (APR): APR is the effective annualised rate charged to the borrower of a digital loan. .
  • Digital Lending: A remote and automated lending process, largely by use of seamless digital technologies for customer acquisition, credit assessment, loan approval, disbursement, recovery, and associated customer service.
  • Regulated Entities (REs )shall ensure that all loan servicing, repayment, etc., shall be executed by the borrower directly in the RE’s bank account without any pass-through account/ pool account of any third party. The disbursements shall always be made into the bank account of the borrower except for disbursals covered exclusively under statutory or regulatory mandate (of RBI or of any other regulator), flow of money between REs for co-lending transactions2 and disbursals for specific end use, provided the loan is disbursed directly into the bank account of the end-beneficiary. REs shall ensure that in no case, disbursal is made to a third-party account, including the accounts of LSPs and their DLAs, except as provided for in these guidelines.
  • REs shall ensure that any fees, charges, etc., payable to LSPs are paid directly by them (REs) and are not charged by LSP to the borrower directly.
  • The penal interest/charges levied, if any, on the borrowers shall be based on the outstanding amount of the loan. Further, rate of such penal charges shall be disclosed upfront on an annualized basis to the borrower in the Key Fact Statement (KFS).
  • Annual Percentage Rate (APR) - APR as all-inclusive cost of digital loans for the borrower shall be disclosed upfront by REs and shall also be a part of the Key Fact Statement.
  • REs shall provide a Key Fact Statement (KFS) to the borrower before the execution of the contract in a standardized format for all digital lending products.
  • The KFS shall, apart from other necessary information, contain the details of APR, the recovery mechanism, details of grievance redressal officer designated specifically to deal with digital lending/ FinTech related matter and the cooling-off/ look-up period.
  • Any fees, charges, etc., which are not mentioned in the KFS cannot be charged by the REs to the borrower at any stage during the term of the loan.
    Read more

  • September 03 , 2022.
    Latest Deposit Interesr rates of Public Sector and Private Sector Banks .
    Deposit Interest Rates -Public Sector Banks .

    Deposit Interest Rates -Private Sector Banks .

    Master Directions-Priority Sector Lending(PSL)-Targets and Classification(Updated as on August 02, 2022)
    Read more---

    July 31 , 2022.
    Dearness Allowance payable to Bank Officers and Staff from August 2022.
  • Average CPI(IW) Index for the Quarter : 8456.18
  • Increase in slabs for current quarter : 54 slabs
  • Number of Slabs for DA for current quarter : 526 slabs
  • D A Percentage : 36.82 %
    Click here for DA Chart for August 2022 to October 2022.

  • July 23 , 2022
    The Reserve Bank (Depositor Education and Awareness Fund) Scheme, 2014
    A brief excerpts from RBI Circulars:
  • Any amount remaining unclaimed for ten years or more are to be transferred to the fund including the accrued interest.
  • Banks to display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites.
  • Banks to update their websites at least on a monthly basis.

    1.The Depositor Education and Awareness Fund Scheme, 2014
    The amounts to be credited to the Fund shall be the credit balances in any deposit account maintained with banks which have not been operated upon for ten years or more, or any amount remaining unclaimed for ten years or more, including:-
    (a) savings bank deposit accounts;
    (b) fixed or term deposit accounts;
    (c) cumulative/recurring deposit accounts;
    (d) current deposit account;
    (e) other deposit accounts in any form or with any name;
    (f) cash credit account;
    (g) loan accounts after due appropriation by the banks;
    (h) margin money against issue of Letter of Credit/Guarantee etc., or any security deposit in any account;
    (i) outstanding telegraphic transfers, mail transfers, demand drafts, pay orders, bankers cheques, travelers cheques, sundry deposit accounts, vostro accounts, inter-bank clearing adjustments and other such transitory accounts, unreconciled credit balances on account of ATM transactions, etc.; and
    (j) undrawn balance amounts remaining in any prepaid card issued by banks.
    Read more.

    2. Operational Guidelines
    As per paragraph 3(vi) of the Scheme, banks shall calculate the cumulative balances in all accounts along with interest accrued, as on the day prior to the effective date, i.e May 23, 2014 and such amounts due should be transferred to the Depositor Education and Awareness Fund (Fund) on June 30, 2014 (before the close of banking hours). Subsequently, as mentioned in paragraph 3(vii) of the Scheme, banks shall transfer to the Fund the amounts becoming due in each calendar month
    Read more

    3. Clarifications on Operational Guidelines
    As per paragraph 3(vi) of the Scheme, banks shall calculate the cumulative balances in all accounts along with interest accrued, as on the day prior to the effective date, i.e, May 23, 2014 and such amounts due should be transferred to the Depositor Education and Awareness Fund (Fund) on June 30, 2014 before the close of banking hours. However, as regards the calculation of interest accrued on such accounts, it has been clearly indicated in paragraph 3(v) of the Scheme that bank shall transfer to the Fund the entire amount as specified in sub-paragraph (iii), including the accrued interest that the bank would have been required to pay to the customer/ depositor as on the date of transfer to the Fund”. It is once again clarified that in all such unclaimed interest bearing deposits that would be transferred to the Fund by the banks on June 30, 2014, interest accrued should be credited in the account till the date of transfer to the Fund. Illustratively, if a bank transfers to the Fund any unclaimed Saving Bank account balance on June 30, 2014 the interest up to and for June 29, 2014 would be paid into the account by the bank. The Fund would pay interest with effect from June 30, 2014 till the date of payment to the customer, at the interest rate notified by the Reserve Bank from time to time.
    Read more

    4.Unclaimed Deposits/ Inoperative Accounts Banks to Display list of Inoperative Accounts
    Banks are, therefore, advised that they should display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites. The list so displayed on the websites must contain only the names of the account holder(s) and his/her address in respect of unclaimed deposits/inoperative accounts. In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. However, the account number, its type and the name of the branch shall not be disclosed on the banks website. The list so published by the banks should also provide a 'Find ' option to enable the public to search the list of accounts by name of the account holder.
    . Read more

    5. Interest rates payable on unclaimed interest bearing deposit
    All the banks are advised to calculate the interest payable on interest bearing deposits transferred to RBI at the rate of 4 per cent p.a. up to June 30, 2018, 3.5 per cent w.e.f. July 1, 2018 up to May 10, 2021 and at 3 per cent with effect from May 11, 2021 till the time of payment to the depositor/claimant.
    Read more

    6. Updation of list of inoperative accounts on their website
    It is observed that banks are not updating their websites with the list of unclaimed deposits/ inoperative accounts which are inactive/ inoperative for ten years or more. Banks are, therefore, advised to update their websites at least on a monthly basis by: i) adding the names and address of the account holders whose deposits have been transferred to the Fund during the month/period. ii) deleting the names and address of account holders whose claim were admitted by the banks during the month/period. In doing this the banks need not wait for refund from the Fund.
    Read more


  • 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.
    June 25 , 2022.
    RBI Payment Vision 2025.

    The current Vision document builds on the Payments Vision 2019-21 document and outlines the thought process for the period up to December 2025. It may not necessarily be constrained by what the Payments Vision documents. For instance, recent developments in terms of (a) establishment of Reserve Bank Innovation Hub; (b) framework for security of card transactions like switch on / off facility; (c) guidelines on limiting customer liability in case of unauthorised transactions using Prepaid Payment Instruments (PPIs); (d) enabling Online Dispute Resolution (ODR) for digital payments;

    The Payments Vision 2021 had envisaged to empower every Indian with access to a bouquet of e-payment options that is safe, secure, convenient, quick and affordable, and had set four goalposts of Competition, Cost, Convenience and Confidence with 36 specific action points and 12 expected outcomes.

    The Payments Vision 2025 promises to further elevate our payment systems towards a realm of empowering users with affordable payment options accessible anytime and anywhere with convenience**

    The Payments Vision 2025 document is presented across the five anchor goalposts of Integrity, Inclusion, Innovation, Institutionalisation and Internationalisation..

    Goalposts for Payments Vision 2025 --

  • Weave in alternate authentication mechanism(s) for digital payment transactions (para 4.1.1) --
  • Broaden scope, usage and relevance of LEI in all payment activities --
  • Expand interoperability to contactless transit card payments in offline mode (para 4.1.3)--
  • Enhance scalability and resilience of payment systems (para 4.1.4)--
  • Leverage ODR system for fraud monitoring and reporting (para 4.1.5)--
  • Provide enhancements to CPFIR (para 4.1.6)--
  • Provide payee name look-up for fund transfers (para 4.1.7) --
  • Increase proportionate oversight of PSOs (para 4.1.8)--
  • Include assessment of RTGS & NEFT under Principles for Financial Market Infrastructures (PFMIs) (para 4.1.9) --
  • Explore local processing of payment transactions --
  • Study creation of Digital Payments Protection Fund (DPPF) (para 4.2.10)
  • Make payment systems more inclusive (para 4.1.11--
  • Read full text of "RBI Payment Vision 2025."

  • Reserve Bank increases repo rate with immediate effect.

    Increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 4.90 per cent with immediate effect.
    Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.15 per cent.

    The revised Policy Rates and Reserve Ratios as on 08.06.2022:
  • Policy Repo Rate : 4.90%
  • Standing Deposit Facility Rate : 4.65%
  • Marginal Standing Facility Rate : 5.15%
  • Bank Rate : 5.15%
  • Fixed Reverse Repo Rate : 3.35%
  • Cash Reserve Ratio (CRR) : 4.50%
  • Standing Liquidity Ratio(SLR): 18.00%

    Read RBI Monetary Policy Statement, 2022-23 -(MPC) June 6-8, 2022

    Cash Reserve Ratio (CRR) :CRR is the portion of the deposits (total demand and time liabilities ) of a bank to be kept as cash reserve. The banks can maintain the cash reserve in the form of cash with the bank itself or credit balance in its account maintained with RBI It is a statutory requirement.

    Statutory Liquidity Ratio (SLR) : SLR is the portion of deposits ( net demand and time liabilities )of a bank to be maintained as cash, gold or approved securities.

    Repo Rate: Repo Rate is the rate at which banks can borrow money from RBI against listed securities with agreement to repurchase the securities at a specified future date from RBI.

    Reverse Repo Rate :Reverse Repo Rate is exactly the opposite of the Repo Rate .Banks can park their funds with RBI to take advantage of the higher Reverse Repo Rate.

    Bank Rate:Bank Rate is the rate at which commercial banks can borrow money from RBI. The Bank Rate movement indicates the long term health of the economy. Upward revision of Bank Rate will make funds costlier for banks which may result in banks raising their lending rates.


    For further readings please follow the links :

    Cash Reserve Ratio (CRR) revised

    Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions - 2021


  • 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.

  • Implementation of Bharat Bill Payment System (BBPS) - Guidelines.


  • The Bharat Bill Payment System (BBPS) will function as a tiered structure for operating the bill payment system in the country with a single brand image providing convenience of ‘anytime anywhere’ bill payment to customers.
  • The objective of the BBPS is to implement an integrated bill payment system in the country that offers interoperable and accessible bill payment services to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment. Hence, it has been decided that the existing players (both banks & non-banks) catering to the requirements of bill payments as well as aggregation of payment services will be a part of BBPS.
  • Customer protection and grievance redressal
    Under the BBPS, the BBPOUs shall disclose all important terms and conditions in clear and simple language (preferably in English, Hindi and the local language) comprehensible to the customers of various billers/users of its services.
    These disclosures should include: All charges and fees associated with the use of bill payment facility, and The customer service telephone numbers and website URL
  • Each complaint will be assigned and identified by a unique complaint reference number within the BBPS.
    After the complaint is lodged at any location, the BBPCU and/or the concerned BBPOU will escalate the complaint to the respective biller for redressal.
    A suitable tracking system has to be enabled so that the fate of the complaint is known to the customer (on the basis of the unique complaint reference number) at any location.
    The customer should not be levied any charges for lodging any complaints in the BBPS.
    read more..

  • 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 .

  • National Savings Certificate accrued Interest eligible for deduction from salary for financial year 2021-22.
    One of the popular investment options for salaried persons to reduce tax liability is regular yearly investments in national Savings Certificate. Apart from claiming the entire amount invested in the respective financial year, one can claim the accrued interest on the certificates bought earlier years U/S 80C of Income Tax Act.
    Here is a calculator to know the interest you can claim as deductions for FY 2021-22.


    Income Tax Calculator FY 2022-23.

    Know your estimated tax liability under " NEW AND OLD TAX REGIME" and choose the quatum of investments required to reduce your tax liability.


    Income Tax Calculator FY 2021-22.
    Before filing income tax returns, know your tax liability under " NEW AND OLD TAX REGIME" and choose the one favorable to you.



    Various regulations on Housing Finance-Reserve Bank of India Circular dated 01.04.2022:
    Reserve Bank of India issued updated guidelines under Housing Finance covering various aspects of Housing Finance
  • Purpose
  • Various Regulations.
  • Quantum of Loan.
  • Innovative Housing Loan Products-Upfront Disbursal of Housing Loans.
  • Rate of Interest.
  • Exposure to Real Estate.
  • Housing Loans under Priority Sector.
  • Acquisition of Land.
  • Construction of Building / ready Built House.
  • Loans for repairs to the damaged dwelling units of families.
  • Finance to a person who already owns a house.
  • Purchase of a house by a borrower who proposes to let it out on rental basis.
  • Buying an old house where one is presently residing as a tenant.
  • Finance for construction meant for improving the conditions in slum areas .
  • Credit for slum improvement schemes .

    Read detailed RBI Circular.


  • Post Office Small Savings Schemes
    Post Office Small Savings Scheme details as on April 2022. Interest Rates revised on quarterly basis.

    Bank Dearness Allowance Chart
    from February 2022 to April 2022 to Bank Officers, Clerks , Sub staff and Bank Pensioners.

    DA Feb 2022 -IBA circular

    Dearness relief payable to pensioners
    for the period February 2022 to July 2022.

    Starting Salary of Bank Officers ,Clerks and Sub-Staff

    Officers' Settlement-Joint Note 8-Dated 11.11.2020

    11th Bipartite Settlement dt 11.11.2020

    Index numbers month wise

    CPI Index New Serious Notes.;

    Sovereign Gold Bond Scheme
    Consolidated Procedural Guidelines.

    List of benefits available to Salaried Persons-FY 2021-22.

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

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

    RESERVE BANK OF INDIA-
    Major Policy Announcement.

    Chronology of announcements from March 2020 to March 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


    Tax on Salary,Arrears of Salary , Retirement benefits -Income Tax Department circular.

    Basic Savings Bank Deposit Account.

    Frequently Asked Questions - Basic Savings Bank Deposit Account (BSBDA)-FAQs (RRBs/StCBs/DCCBs)

    Safe Deposit Lockers/Articles in Safe Custody

    Banking Facility for Senior Citizens and Differently abled Persons

    Doorstep Banking Services for Senior Citizens and Differently Abled Persons

    Frequently Asked Questions -Sovereign Gold Bond Scheme

    Sovereign Gold Bond Scheme 2020-21

    Master Direction - Deposits and Accounts-Reserve Bank of India



    Master Circular on Customer Service in Banks.

    Master Circular-Housing Finance

    Master Circular-Facility for Exchange of Notes and Coins

    Master Circular on Customer Service in Banks.

    Master Direction - Know Your Customer (KYC) 2016 Reserve Bank of India.

    Master Direction - Deposits and Accounts-Reserve Bank of India

    Master Direction - Reserve Bank of India (Interest Rate on Deposits) Directions, 2016-Updated February 2019.

    Bank Fixed Deposit Schemes-How to Choose the right Scheme meeting your requirement.
    We quite often come across various deposit schemes from banks.
  • FIXED DEPOSIT.
  • CUMULATIVE DEPOSIT.
  • REINVESTMENT DEPOSIT .
  • MONTHLY INCOME FIXED DEPOSIT ETC . Some time we get confused to select the right scheme. If you understand the way interest is calculated and the periodicity by which you wish to avail the interest and the maturity proceeds,all your confusions will get cleared. Your return on the deposit depends on just three factors.
  • The period of deposit.
  • The periodicity of interest you intend to receive.
  • The rate of interest.

    Except the rate of interest ,other two factors depend on your requirements. So your job is simplified in looking for the Bank offering highest interest for the period of deposit you intend to keep with the bank. As per existing norms for calculation of interest ,it is uniform among the banks. Interest on your deposit is calculated at the specified rate and compounded quarterly.

    The fixed deposit schemes can be classified under two broad category. Ordinary Fixed Deposit wherein you receive the interest every quarter. We may call this "Non-Cumulative Fixed Deposit" or simply "Fixed Deposit" For example if you deposit Rs100000 for one year at interest 10 % pa, you will receive Rs2500 on completion of every quarter and the Principal amount on completion of the deposit period(here 1 year).

    In the other scheme called as Cumulative Deposit Scheme, as you are not availing the quarterly interest, Banks take it as your investment and give additional interest for the same. Hence you earn more interest than what you otherwise earn under Non-Cumulative Fixed Deposits.

    Under Cumulative Deposit Scheme ,Interest will be paid on completion of Deposit Period. If you deposit Rs100000 for one year at interest 10 % pa, you will receive Rs110381 on completion of one year- Rs10381 being interest. You receive Rs381 more than what you may get under Ordinary Fixed Deposit Scheme.

    For the convenience of depositors who want to receive interest every month, Banks have a scheme called "Monthly Interest Deposit Scheme". Under this scheme,you will get interest on every month. As you are receiving the interest before it is due for credit, interest under this scheme will be a little bit less than what you may get under Ordinary Fixed Deposit Scheme. You will get interest of Rs826 every month.Total interest will be Rs9912 To put it in a nutshell,apart from receiving your deposit amount on completion of deposit period you will receive towards interest as under:
  • Cumulative Deposit Scheme :Rs10381 on completion of deposit period.
  • Ordinary Fixed Deposit Scheme :Rs10000 (Rs2500 on completion of every quater-2500*4=10000)
  • Monthly Interest Deposit Scheme:Rs9912 (Rs826 every month-826*12=9912)

    So you can choose the deposit scheme as per your requirement forgetting about the hundreds of schemes offered under different names .


    Related links:
    Deposit Interest Rates of Banks.

    Use the calculator to compare interest and the Maturity values for different deposit schemes.



  • Consolidated RBI Circular on Opening of Current Accounts and CC/OD Accounts by Banks
  • 1.1 For borrowers, where the aggregate exposure3 of the banking system is less than ₹5 crore, banks can open current accounts without any restrictions placed vide this circular subject to obtaining an undertaking from such customers that they (the borrowers) shall inform the bank(s), if and when the credit facilities availed by them from the banking system becomes ₹5 crore or more.
  • 1.2 Where the aggregate exposure of the banking system is ₹5 crore or more:
  • 1.2.1 Borrowers can open current accounts with any one of the banks with which it has CC/OD facility, provided that the bank has at least 10 per cent of the aggregate exposure of the banking system to that borrower. In case none of the lenders has at least 10 per cent of the aggregate exposure, the bank having the highest exposure among CC/OD providing banks may open current accounts.
  • 1.2.2 Other lending banks may open only collection accounts subject to the condition that funds deposited in such collection accounts will be remitted within two working days of receiving such funds, to the CC/OD account maintained with the above-mentioned bank (para 1.2.1) maintaining current accounts for the borrower. The balances in such collection accounts shall not be used for repayment of any credit facilities provided by the bank, or as collateral/ margin for availing any fund or non-fund based credit facilities. However, banks maintaining collection accounts are permitted to debit fees/ charges from such accounts before transferring funds to CC/OD account.
  • 1.2.3 Non-lending banks are not permitted to open current/ collection accounts.
  • Read more from RBI Circular