What is relaxed KYC norm for proprietary concerns?
In case of opening accounts of proprietorship concerns, apart from customer identification procedure as applicable to the proprietor, banks and financial institutions call for and verify the activity proof of the concern. The default rule under KYC is that any two documents, out of following documents listed in paragraph 2.5(h) of RBI Master Circular should…
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Housing Loan: New guidelines on ‘Loan to Value (LTV) ratio’ and construction linked disbursal of loan
Loan to value ratio: Banks were not permitted to include stamp duty, registration and other documentation charges towards the cost of housing property for the purpose of effective calculation of LTV ratio. RBI has now appreciated that the amount which are excluded for arriving LTV ratio forms cost of around 15% of the house. In…
Read articleRBI slashes Repo Rate by 25 basis point
RBI slashes ‘Repo rate’ by 25 basis point from immediate effect. Consequently the policy rates will be as under from 04.03.2015 Repo Rate…………………7.50% Reverse Repo Rate……6.50% Marginal Standing Facility Rate….8.50% Bank Rate………………………………….8.50% SLR…………………………….21.50% (Unchanged) CRR……………………………4% (Unchanged) RBI continues to provide liquidity under overnight repos of 0.25 percent of bank-wise NDTL at the LAF repo rate…
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TDS on Fixed deposits’ interest
Hither to, banks were deducting TDS (Tax Deducted at Source) only if the interest earned from FDs made in a particular branch exceeds threshold limit of Rs.10000.00. Therefore it was common for investors to open FDs at multiple branches of their bank to circumvent TDS. The budget 2015 proposes important change in the rules relating to…
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Swavalamban Yojana: Pension scheme for all citizens in the unorganized sector
The Swavalamban Yojana is a low cost version of new pension scheme (NPS). In essence, the scheme is designed with an intention to secure the future of financially weaker section of the society. The scheme is now a part of Jan Dhan Yojana. Benefits from Swavalamban Yojana: Under the scheme Swavalamban Yojana, Government will contribute…
Highlights of 2015 Budget
Budget 2015 Highlights: 1. No change in income tax slabs. 2. Medical exemption limit increased to Rs.25000/- from Rs.15000/- 3. Health Insurance Premium deduction for senior citizen increased to Rs.30000/- from Rs.10000/- 4. Exemption of Rs.50000/= for pension under section 80 C 5. Exemption limit rose to Rs.150000/- from Rs.100000/- on contribution to National Pension…
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