Effects of Repo Rate, SDF rate changes
Repo suggests the rate at which liquidity is injected into the banking system whereas Reverse Repo is the rate at which RBI absorbs liquidity from the banks. RBI controls the money supply in the country by effecting the changes in repo rate & reverse repo rate. Therefore repo and SDF (reverse repo rate) are known…
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Salient New Aspects of Consumer Protection Act, 2019
Effective from 20 July 2020, the Consumer Protection Act, of 2019 replaces the more than three decades old Consumer Protection Act, of 1986. The new Consumer Protection Act 2019 seeks to revamp the process of administration and settlement of consumer disputes, with strict penalties, including jail terms for adulteration and misleading ads by firms. Among…
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Bankers Duty of Secrecy and Confidentiality
A bank must protect the confidentiality of its customers’ personal and banking-related information. This duty of secrecy, or confidentiality, extends to any information obtained from a customer’s account or banking relations. It is the most important duty of a bank that it must ensure all banking records of the customers are protected and are not…
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RBI guidelines on Levying of Service Charges
Service charges are intended to cover the cost of services provided by the bank. As per RBI guidelines, for basic charges rendered to individuals, banks will levy charges ad valorem subject to a cap. RBI working group recommended service charges shall be fixed on a principle that fixing lower rates for individuals as compared to…
Read article Payment by Bank Under Mistake: Whether Recoverable?
Section 72 of the Indian Contract Act provides that a person to whom money has been paid by mistake must repay or return the same to the person who has made such payment. Implied law: If one pays money to his friend intentionally and the friend receives it without any agreement. That is called a…
Explained: Banker’s special relationship with the customer
[This article explains the relationship between the bank and the customer like a creditor and the debtor, Lessor and the Lessee, Trustee and beneficiary, bailor and bailee, Principal and the agent, assigner and assignee, etc. according to the type of service rendered by the bank. The responsibilities of the banker acting upon the mandate and…
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