Reserve Bank of India on Wednesday (14th August 2019) in its notification to all Scheduled Commercial Banks including Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Small Finance Banks, Payment Banks, White Label ATM Operators clarified that banks should not count failed transactions at ATMs due to technical reasons and…
Savings Bank (SB) accounts are opened in the bank mainly for saving purpose. Customers cannot open an SB account for business purpose. Let us find out who is eligible and who is not eligible to open SB accounts. The following entities are eligible to open SB accounts in a bank:- (i) SB Accounts…
The Aadhaar Act is defined as “an identification number issued to an individual by Unique Identification Authority of India (UIDAI) on receipt of the demographic information and biometric information as per the provisions of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.” In terms of above act every resident…
The Centre decides to increase the Dearness Allowance (DA) of central government employees for July 2019. According to reports, the CG employees would be getting 17 percent Dearness Allowance (DA) for July 2019 to October 2019. It is expected that the same DA will continue until January 2020. The present, DA for Central govt employees…
Term loan application received from educational institutions run by trusts, private management, requires appraisal of the project as well as appraisal of the management. First step of appraisal of project involves verification of whether the institution has the necessary approval from the Government agencies to run the school. Secondly, bank has to verify whether the…
The Cash Credit limit (known as working capital limit) is sanctioned by banks and financial institutions to industrial and trading establishments for their investment on various types of current assets used in the operating cycle. This facility offers the borrowers flexibility and comfort to withdraw funds from the bank as per their financial requirement from…
The Statement on Developmental and Regulatory Policies released by RBI yesterday set out various developmental and regulatory policy measures in the areas of Financial Markets; Payment and Settlement Systems; Banking Regulation, Financial Inclusion and Credit flow to NBFCs. Highlight of policies statement are as follows; Payment and Settlement Systems: As cited in the Payment System…
RBI decided to cut interest rate by 35 basis points. With this cut RBI reduced Repo rate for the fourth time in a row. The Monitory Policy Committee (MPC) of RBI released its third Bi-Monthly Monetary Policy Rates for 2019-20 today (August 7, 2019). The revised key policy rates are as under. CRR (Cash Reserve…
Fiscal policy differs from monetary policy. Monetary policy refers to management of money supply and interest rate and is the demand side economic policy used by the monetary authority of a country, typically the central bank (in India RBI) or currency board of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.…
With effect from September 1, 2019, Banks are required to frame Board approved policy / operational guidelines in respect of certain changes in Basic Savings Bank Deposit (BSBD) Account in the interest of better customer service. RBI on August 2, 2019, asked Banks to offer following basic minimum facilities in the BSBD Account, free of…