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…
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RBI clarifies on Free ATM transactions
Reserve Bank of India on Wednesday (14th August 2019) in its notification to all Scheduled Commercial Banks including Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Small Finance Banks, Payment Banks, White Label ATM Operators clarified that banks should not count failed transactions at ATMs due to technical reasons and…
Read article 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…
Read article RBI slashes Repo rate by 35 Basis points
RBI decided to cut interest rate by 35 basis points. With this cut RBI reduced Repo rate for the fourth time in a row. The Monitory Policy Committee (MPC) of RBI released its third Bi-Monthly Monetary Policy Rates for 2019-20 today (August 7, 2019). The revised key policy rates are as under. CRR (Cash Reserve…
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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 is an expansionary monetary policy?
In the macroeconomic sense, an expansionary monetary policy is a form of monetary policy used by central banks that aims to surge the rate of monetary expansion to stimulate growth during a recession or in anticipation of a recession. When interest rates are already high, the central bank focuses on increasing the money supply and…
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