Banks and other financial institutions are required to submit various returns, many of which are statutory under the RBI Act of 1934, the Banking Regulation Act of 1949, FEMA 1999, the SEBI Act of 1992, Income Tax 1961, etc. Submission frequency of these returns varies from daily, weekly, fortnightly, monthly, quarterly, half-yearly, and annual. Regulatory…
Long Form Audit Report (LFAR) : LFAR (Long Form Audit Report) must be issued by Statutory Auditors apart from the standard audit report that is required as per regulatory requirements. LFAR serves as a vital tool for auditors and their team members, the audit process providing detailed insights into the bank’s operations, risk management practices,…
While opening all new accounts banks should mandatorily obtain photographs of the depositors/account holders who are authorized to operate the accounts in terms of the Master Directions of RBI. The customers’ photographs should be recent and the cost of photographs to be affixed on the account opening forms may be borne by the customers. Only…
The provisions of nomination are found in various financial products like Life Insurance, Provident Fund, Gratuity, Co-operative societies and banking regulation acts (section 45ZC to 45 ZF) and Banking Companies (Nomination) rules 1985 and the relevant provisions of the Indian Succession Act. The nomination facility is available only to individual depositors and not to any…
The Reserve Bank of India has been issuing statutory guidelines to commercial banks under the Banking Regulation Act 1949. The banks in India accordingly shall follow the terms and conditions as specified in the regulations in respect of deposits accepted by the banks. The detailed guidelines of the banking regulator cover the following matters. Exemptions…
A personal account is a bank account maintained by a natural person for his personal transactional needs. Personal account is a relative term to distinguish it from business accounts. The accounts of other types of bank customers are maintained by artificial persons (legal entities). Personal accounts of individuals in the bank include: SB account, Current…
This post elucidates how interest rates offered by banks may vary based on the tenor of deposits, the Periodicity of interest payable on SB accounts, accounts frozen by enforcement authorities, and floating deposits. Additional rate of interest paid by banks in certain cases, interest payable on NRE and FCNR (B) deposits, rules regarding interest payable…
This post explains Operational Aspects of KYC including Monitoring of Transactions. The KYC norms in banking and other financial institutions are a set of procedures and rules as outlined by the regulator RBI. The regulated institutions must follow to verify the identity and address of their customers. This process involves collecting and verifying documents that…
The Reserve Bank of India (RBI) has updated its wire transfer rules instructing banks and financial institutions to collect more information about wire transfers with effect from May 10, 2023. “The new rule applies to both domestic and international transfers. “All cross-border wire transfers shall be accompanied by accurate, complete, and meaningful originator and beneficiary…
Originally posted on July 22, 2014. Updated and reposted on 04.08.2024 Money laundering is the process wherein criminals attempt to conceal their booty and make an attempt to cover them as a legitimate source of income. A person shall be guilty of offence of money-laundering if such person is found to have directly or indirectly…