A Savings Bank account (SB Account) is a form of demand deposit account, opened mainly for the purpose of saving and not for any business purpose. Banks are permitted to credit the interest to the account on a regular basis, with regard to the savings bank accounts frozen by the enforcement authorities. The acceptance of…
Regulatory compliance aims to ensure the bank operates within regulation, safeguarding its integrity and industry reputation. The function oversees multiple duties: protecting bank data, avoiding government fines, avoiding tax evasion, complying with KYC guidelines, monitoring and reporting anti-money laundering activities, assessing risks, and ensuring zero violation of banking ethics. Following are the few cases where…
Reserve Bank of India on Tuesday extended the Prompt Corrective Action (PCA) Framework for Government Non-Banking Financial Companies (NBFCs). “Reserve Bank of India introduced the PCA Framework for NBFCs on December 14, 2021. The Framework has since been reviewed and it has been decided to extend the same to Government NBFCs (except those in Base…
Exchange Earners’ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. In this scheme of bank accounts, the exchange earners who are residents of India, such as individuals, companies, etc., SEZ developers (except SEZ Units) can…
An investment made in India by foreign entities, non-resident Indians, and persons of Indian origin in Indian securities including shares, government bonds, corporate bonds, convertible securities, infrastructure securities, etc., is known as foreign investment in India. Based on the type of foreign Investments, they are classified as below. Foreign Direct Investment (FDI) Foreign Portfolio Investment…
Salient features in the modified policy are as under 1. Top up and Super top-up is one and the same: 2. As per the expiring terms and conditions, domiciliary treatment will remain 10% of Base policy Sum Insured opted even for those who opted Single Person rate. 3. Domiciliary treatment is not covered under Top…
On Thursday (05.10.2023), DFS (Govt of India) cleared 100% D.R (Dearness Relief) to pre-1-11-2002 Retirees. It will be effective from 1st October 2023. No arrears shall be payable for the periods falling prior to the effective date. The 100% Dearness neutralization would benefit about 1,80,000 pensioners who retired from the Banks including from SBI prior…
The Monetary Policy Committee (MPC) met on the 4th, 5th, and 6th of October 2023 and decided to keep the policy repo rate at 6.50 per cent, and other key policy rates also remain unchanged. RBI also maintained the status quo on the ‘withdrawal of accommodation’ policy stance. Withdrawal of accommodation refers to a policy…
The Reserve Bank of India (RBI) on Wednesday constituted a nine-member external working group to get independent views on Expected Credit Loss (ECL) based framework for provisioning by banks. The ECL approach to provisioning is a paradigm shift from the current incurred loss-based provisioning regime. The Discussion Paper released by RBI on January 16, 2023,…
The Negotiating Committee Meeting held on September 29, 2023, between the United Forum of Bank Unions and the Indian Banks Association discussed the following issues. Unions wanted to know the details of establishment expenses, number of employees and officers under OPS and NPS, stage-wise/area-wise number of employees, impact on cost of superannuation benefits, etc. They…