RBI eases address proof rules for bank A/c-Hindu Business Line-9th June 14
MUMBAI, JUNE 9:
Now, citizens without having permanent address proof can open a bank account by submitting only one document as current proof of address, according to the Reserve Bank of India.
Taking note of citizens who are migrant workers and transferred employees who do not possess permanent address documents, the central bank eased the Know Your customer (KYC) documentation rules.
In a notification, RBI said, “Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation. In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proof of address may be submitted to the branch within a period of six months.”
The RBI further added that in case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer.
“No proof is required to be submitted for such address for correspondence/local address. This address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of (i) letter, cheque books, ATM cards; (ii) telephonic conversation; (iii) visits; etc,” it said.
In the event of change in this address due to relocation or any other reason, customers may intimate the new address for correspondence to the bank within two weeks of such a change, RBI added.
RBI simplifies KYC norms for opening of bank account-Business today
A bank account can be opened with just one address proof, permanent or local, says a Reserve Bank of India (RBI) decision, helping migrant workers and employees with transferable jobs who at present face cumbersome procedure to access banking services.
"Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation," the Reserve Bank (RBI) said in a notification on Monday. "In case the address mentioned as per 'proof of address' undergoes a change, fresh proof of address may be submitted to the branch within a period of six months," it said.
RBI was receiving representations and references from various quarters, including migrant workers, transferred employees about the problems faced by them in submitting a proof of address while opening a bank account, the notification said.
In cases where customer is not able to furnish local proof of address, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer, it said.
"No proof is required to be submitted for such address for correspondence/local address. This address may be verified by bank through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation," the apex bank said.
If there is a change in address, customer may intimate the new address for correspondence to the bank within two weeks of such a change, it added.
It further asked banks to revise their KYC policy and ensure strict adherence to the revised guidelines
A bank account can be opened with just one address proof, permanent or local, says a Reserve Bank of India (RBI) decision, helping migrant workers and employees with transferable jobs who at present face cumbersome procedure to access banking services.
"Henceforth, customers may submit only one documentary proof of address (either current or permanent) while opening a bank account or while undergoing periodic updation," the Reserve Bank (RBI) said in a notification on Monday. "In case the address mentioned as per 'proof of address' undergoes a change, fresh proof of address may be submitted to the branch within a period of six months," it said.
RBI was receiving representations and references from various quarters, including migrant workers, transferred employees about the problems faced by them in submitting a proof of address while opening a bank account, the notification said.
In cases where customer is not able to furnish local proof of address, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer, it said.
"No proof is required to be submitted for such address for correspondence/local address. This address may be verified by bank through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation," the apex bank said.
If there is a change in address, customer may intimate the new address for correspondence to the bank within two weeks of such a change, it added.
It further asked banks to revise their KYC policy and ensure strict adherence to the revised guidelines
RBI Abolishes Pre-Payment Penalty on Floating Rate Loans=Profit NDTV
Mumbai:
Providing relief to borrowers, Reserve Bank on Wednesday today directed banks not to levy any penalty on individual borrowers for pre-paying floating loans.
"...it is advised that banks will not be permitted to charge foreclosure charges or pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect," RBI said in a notification.
Floating loan products include housing, and auto loans.
In the first bi-monthly monetary policy statement for 2014-15 released last month, the RBI had said banks should consider allowing their borrowers the facility of prepaying floating rate term loans without any penalty in the interest of their customers.
Some banks are charging pre-payment penalty of up to 2 per cent of the outstanding loans.
Two years ago, RBI had barred banks from levying foreclosure charges or pre-payment penalties on home loans on floating interest rate basis.
On Tuesday, the RBI asked banks not to levy penalties on customers who don't maintain a minimum balance in any inoperative account, as part of a consumer protection initiative.
"...it is advised that banks will not be permitted to charge foreclosure charges or pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect," RBI said in a notification.
Floating loan products include housing, and auto loans.
In the first bi-monthly monetary policy statement for 2014-15 released last month, the RBI had said banks should consider allowing their borrowers the facility of prepaying floating rate term loans without any penalty in the interest of their customers.
Some banks are charging pre-payment penalty of up to 2 per cent of the outstanding loans.
Two years ago, RBI had barred banks from levying foreclosure charges or pre-payment penalties on home loans on floating interest rate basis.
On Tuesday, the RBI asked banks not to levy penalties on customers who don't maintain a minimum balance in any inoperative account, as part of a consumer protection initiative.
Link Profit NDTV
No penalty if minimum balance not kept in dormant bank account: RBI-Indian Express
The Reserve Bank today asked banks not to levy penalties on customers who don’t maintain a minimum balance in any inoperative account as part of a consumer protection initiative.
“It is advised that henceforth banks are not permitted to levy penal charges for non-maintenance of minimum balances in any inoperative account,” RBI said in a notification.
Several banks, including the State Bank of India, do not levy any charge if the minimum balance is not maintained in an inoperative savings account.
The RBI directed banks in 2012 not to charge customers for non-operation or activation of basic savings bank deposit accounts.
For operative accounts, customers of ICICI Bank and HDFC Bank are charged Rs 750 per quarter if they don’t maintain a minimum average quarterly balance of Rs 10,000 in urban centres and Rs 5,000 in semi-urban areas.
In the first bi-monthly monetary policy statement for 2014-15 released last month, the RBI had said banks should also not take undue advantage of customer difficulty or inattention.
“Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level,” it said.
Link The Indian Express
Minors over 10 years can operate bank accounts: RBI-The Hindu-07.05.2014
The Reserve Bank of India on Tuesday allowed minors above the age of 10 to open and operate savings bank accounts independently.
This was to promote the objective of financial inclusion and to bring uniformity among banks in opening and operating minors’ accounts.
The central bank said a savings /fixed / recurring bank deposit account could be opened by a minor of any age through his/her natural or legally appointed guardian.
Earlier, banks were allowed to open minors’ accounts (fixed and savings deposit accounts) with mother as guardian.
However, the RBI asked banks to fix limits in terms of age and the amount up to which minors might be allowed to operate the deposit accounts independently, keeping in view their risk management systems.
“They [banks] can also decide, in their own discretion, what minimum documents are required ... ,” the RBI added.
On attaining majority, the RBI said, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of the erstwhile minor should be obtained and kept on record for all operational purposes.
Banks are free to offer additional banking facilities such as Internet banking, ATM/ debit card and cheque book facility, “subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.”
Link The Hindu
To fast-track cheque-bounce cases, SC issues guidelines-Indian Express-26.04.2014
The court said that summons should apprise an accused that he could show up in the court and compound the offence on the same day.
With more than 40 lakh cheque-bounce cases choking the justice delivery system in the country, the Supreme Court has issued slew of guidelines, including issuance of summons through e-mails and completion of evidence within three months, to prevent further piling up.
A bench of Justices K S Radhakrishnan and Vikramjit Sen laid down guidelines to be uniformly followed by all magisterial courts dealing with cheque-bounce cases under pertinent provisions of the Negotiable Instruments Act for a “speedy and expeditious disposal”.
Directing for a day-to-day trial, the court said that a magistrate shall issue summons on the same day he receives a complaint, provided documents are in order. It held that a magistrate need not call a complainant twice for recording his statement, once at pre-summoning stage and another after issuance of summons, and taking an appropriate affidavit from him should suffice.
The summons should be issued immediately by post as well through e-mails. The court said that summons should apprise an accused that he could show up in the court and compound the offence on the same day.
“Once the court issues summons and the presence of the accused is secured, an option be given to the accused whether, at that stage, he would be willing to pay the amount due along with reasonable interest and if the accused is not willing to pay, court may fix up the case at an early date and ensure day-to-day trial,” it said.
At the stage of recording of evidence, the bench said, the court concerned must ensure that examination-in-chief, cross-examination and re-examination of the complainant is conducted within three months of assigning the case. “The court has option of accepting affidavits of the witnesses, instead of examining them in court,” it added.
The order came on a petition by the Indian Banks Association, which is the representative body of banks in India with over 174 banks and financial institutions as its members. Its counsel Lalit Bhasin had asserted the need to have uniform practice across courts in the country to ensure cases do not drag in courts on account of unnecessary and unwarranted procedural delays.
What the court says
* No need for complainant to record his statements in court more than once; affidavit can be filed.
* Summons to be issued to the accused on the same day the magistrate receives the complaint.
* Summons to be issued also through e-mails, besides normal post.
* Accused can offer a settlement the day he shows up in court and the magistrate shall dispose of the case.
* All evidence to be recorded within three months and verdict to be delivered shortly.
* Magistrate can receive affidavits from the witnesses too, dispensing their personal presence.
* Summons to be issued to the accused on the same day the magistrate receives the complaint.
* Summons to be issued also through e-mails, besides normal post.
* Accused can offer a settlement the day he shows up in court and the magistrate shall dispose of the case.
* All evidence to be recorded within three months and verdict to be delivered shortly.
* Magistrate can receive affidavits from the witnesses too, dispensing their personal presence.
Link Indian Express
Court stays curbs on foreign travel by bank officers
THIRUVANANTHAPURAM, MAY 2:
The Madras High Court has ordered an interim stay on a recent circular that took away leave travel concession facility to bank officers for journeys abroad.
“Having regard to the undertaking given by the petitioners and having regard to the rules position, there shall be an order of interim stay until June 12, 2014,” Justice S Nagamuthu observed.
This was in response to a writ petition moved by the All India State Bank Officers’ Federation, Chennai, and All India Bank Officers Federation, New Delhi. The petitioners had sought an interim stay on a contentious circular of April 7 by the Chief Executive, Indian Banks’ Association (IBA) read with the e-circular dated April 15 by Chairman, State Bank of India (SBI).
Representing the unions, D Thomas Franco Rajendra Dev gave an undertaking that if an interim stay is granted and later if the writ petition is dismissed, the amount paid to cover foreign/overseas travel to officers will be refunded by the individual officers concerned.
The counsel for petitioners cited specific provisions of leave travel/home travel concession rules to substantiate their argument against the circular.
But without making amendment to the said rules, SBI had issued the impugned letter saying that officers shall not be entitled to travel abroad as part of leave travel concession facility. Counsel argued that it was not permissible for respondents to withhold a right guaranteed under the statutory rule and available to members of petitioner unions. In fact, the unions had demanded further liberalisation of the facility in a charter of demands submitted in the current bipartite negotiations.
At no point of time had the IBA indicated any possibility of withdrawing the existing facility. But the Department of Financial Services, Ministry of Finance, forced it into doing exactly this and a communication was sent to all banks, including SBI.
SBI acceded to demands to permit those people who have already purchased tickets to proceed on leave travel, petitioner Rajendra Dev told Business Line. “But there are many who had got the sanction but were not allowed to purchase tickets. With the stay order they can proceed now,” he said.
thanks for post bank jobs 2015-16
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