Updated as per RBI amended Master Direction dated June 04, 2024 KYC stands for “Know Your Customer”. It’s a process to prevent banks and other financial institutions from being used as a channel for Money Laundering (ML)/ Terrorist Financing (TF) and to ensure the integrity and stability of the financial system, efforts are continuously being…
The Reserve Bank of India on Monday issued revised instructions on Inoperative Accounts /Unclaimed Deposits in Banks. According to the revised guidelines, a savings/ current account shall be treated as inoperative, if for over two years there are no ‘customer-induced transactions’ in that account. Customer induced transactions are; (a) Financial transactions like debit/credit transactions in…
Meaning of green deposits: The provisions of the framework for green deposits raised in India after June 01, 2023. A green deposit means an interest-bearing deposit, received by Regulated Entities (RE) like Commercial Banks, Small Finance Banks (excluding Regional Rural Banks, Local Area Banks, and Payments Banks), and deposit-taking NBFCs for a fixed period, the…
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…
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…
Let us first understand the meaning of a Dormant Account and an Inoperative account. Dormant Account A Savings Bank account or Current account becomes a ‘Dormant Account’ if it is not operated during the previous 12 months. Inoperative Account An SB or Current account becomes a ‘Dormant Account’ if the account has not operated during…
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…
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…
Deposit Insurance and Credit Guarantee Corporation (DICGC) has asked all banks to prominently display its logo and QR code on their websites and Internet banking portals by August 31 with a view to creating awareness about the deposit insurance scheme. “With a view to enhancing the awareness about deposit insurance in a focused and sustained…