Compensation of Rs.100 per day shall be paid by Credit Institutions and CICs for delayed updation/rectification of credit information

Loans and advances

The Reserve Bank of India Thursday (October 26, 2023) released the framework for compensation to customers for delayed updation or rectification of credit information by credit institutions (CIs) and credit information companies (CICs). The compensation framework will come into effect six months from the date of this circular, the Reserve Bank said and directed CICs…

Meaning and terms of ‘Bulk Deposits’ in Banks

Deposits

In terms of Master Direction – Reserve Bank of India (Interest Rate on Deposits) Directions, “Bulk Deposit” means, a Single Rupee term deposit of Rupees two crore and above for Scheduled Commercial Banks (excluding Regional Rural Banks) and Small Finance Banks. For Regional Rural Banks (RRBs), single Rupee term deposits of Rupees fifteen lakhs have…

Send alerts to customers when their credit information report is accessed: RBI directs CICs and lenders

Reserve Bank Functions and news

The Reserve Bank of India (RBI) has issued directives to Credit Information Companies (CICs) to promptly notify clients through SMS or email whenever banks or Non-banking Financing Companies (NBFCs) access their Credit Information Report (CIR). “This move is aimed at fostering transparency and keeping customers informed about the usage of their credit information” it said.…

Threshold limit for Term deposits without premature withdrawal option increased

Deposits

In terms of extant RBI instructions, banks have been permitted to offer domestic term deposits (TDs) without a premature withdrawal option, provided that all TDs accepted from individuals for an amount of Rupees fifteen lakh and below shall have premature-withdrawal-facility. Moreover, commercial and cooperative banks were permitted to offer differential rates on interest on Term…

Bank holidays 2024 in Kerala state under NI Act

Bank News

The Government of Kerala State declared the following days as public HOLIDAYS for the year 2024 under Section 25 of the NI Act (Negotiable Instrument Act) 1881. Sr.No Date Day Occasion/Festival Date 1 26.01.2024 Friday REPUBLIC DAY 2 08.03.2024 Friday MAHASHIVARATRI 3 29.03.2024 Friday GOOD FRIDAY 4 01.04.2024 Thursday BANKS’ ANNUAL CLOSING OF ACCOUNTS 5…

Cheque bouncing and consequences of dishonour of Cheque explained

Legal and Regulatory aspects of banking, Negotiable Instrument Act

Although, there are several cheque bounce reasons to be considered such as incorrect date mentioned on the cheque, signature mismatch, mismatch of the amount and figures, damaged cheque, overwriting of the cheque, etc. The principal reason for a cheque bounce is insufficient funds. If a cheque is dishonoured because of insufficient funds in the payer’s…

Lender’s right when the borrower owns and possesses the hypothecated assets

Law related to collateral-securities, Legal and Regulatory aspects of banking

The lender’s right to the term “Hypothecation of assets” was not defined anywhere in the statute till the SARFAESI ordinance 2002. Some courts have even compared   ‘hypothecation to a mortgage of movables’. Hypothecation occurs when an asset is offered by the borrower to the lender as prime or collateral to secure a loan/credit limit without…