Gold Monetization Scheme (GMS) updated

On Friday (16.08.2019), Reserve Bank of India updated several amendments made to Gold Monetization scheme 2015 till date and advised all designated banks to give adequate publicity to the Scheme through their branches, websites and other channels. Gold Monetization Scheme (GMS) which includes the revamped ‘Gold Deposit Scheme’ (GDS) and revamped ‘Gold Metal Loan Scheme…

Direct Benefit Transfer (DBT) Scheme – Seeding of Aadhaar in Bank Accounts

On the subject of the use of Aadhaar to facilitate delivery of social welfare benefits by direct credit to the bank accounts, Reserve Bank of India vide its circular RBI/2015-16/289/FIDD.CO.LBS.BC. No.17/02.01.001/2015-16 dated January 14, 2016 had clarified that the use of Aadhaar Card and seeding of bank accounts with Aadhaar numbers is purely voluntary and…

Availability of 24×7NEFT service to the public from Dec’19

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…

Banks are prohibited from levying foreclosure charges/ pre-payment penalties

Reserve Bank of India on Friday (August 02, 2019) reminded all the commercial banks that they are not permitted to charge foreclosure charges / pre-payment penalties on home loans / all floating rate term loans sanctioned to individual borrowers. The above norm of prohibiting banks charging foreclosure charges/pre-payment penalties on floating rate loan is already…

What are BPLR,Base Rate, MCLR, and Repo linked lending rate(RLLR)?

Banks & Financial Institutions are generally free to determine the lending rates on loans and advances.  The method to arrive at Lending Rate has been changed drastically over last one decade. The Lending Rate like BPLR, Base Rate and MCLR are internal benchmark rates used by individual banks to determine the interest rates on their…