More Trains in India?

Indian Railways now runs around 10000 Passenger Trains every day. Plans to increase the number of trains has resulted in an unexpected change in Indian Railways. Currently the Passenger Train Numbers are 4-digit numbers and this does not allow Railways to introduce new trains. So from 20th December 2010, the Train Numbers have been converted ...

You cannot invest in MF for your wife

From 15th November 2010, MF invests can be made by self-issued cheque only. You cannot invest using your friend’s, relative’s or spouse’s issued cheque. All investments with third-party cheques will be rejected. Exceptions to this: 1. Investor for Minors – Up to Rs.50,000/- by the Parent/ Grand Parent/ Related Person 2. Employer on behalf of ...

KYC Mandatory for all investors in Mutual Fund

With effect from 1st January 2011, KYC will be mandatory for all investors irrespective of amount of investment. In case of investment for a minor, Guardian/Parent who is investing on behalf of the minor must be KYC complaint. Impact of this move: 1. Even small investors have to now register for KYC. 2. Address updates ...

NEFT/ RTGS Charges Changed

RBI has announced the change in Charges for NEFT & RTGS w.e.f. 15th November 2010. The revised charges are as below: RTGS – New Minimum limit = Rs.2 Lakhs Amount                              Charges 2Lakhs – 5Lakhs                Rs.25/- Above 5Lakhs                     Rs.50/- NEFT Amount                              Charges Up to 1Lakh                        Rs.5/- 1Lakh – 2Lakhs                Rs.15/- Above 2Lakhs                     Rs.25/- According to RBI ...

New Rules for Salary Account Opening

Currently the easiest way to open a bank account is opening a Salary Account through the Company. Just fill the form, give a photo and company gives a letter and presto the account is openned. But finding fault in this process of opening accounts without proper KYC norms, RBI has asked banks to ensure that ...

Outstation Cheque Collection – RBI Circular

RBI in it’s Circular dated 8th Oct,’08 has issued norms for Charges for Outstation cheque collection. RBI has mandated that banks must follow the following guidelines for Charges: – Up to Rs. 10,000                     – not exceeding Rs. 50 per instrument – Rs. 10,000 to Rs. 1,00,000      – not exceeding Rs. 100 per instrument – Rs.1,00,001 ...

Service Charges for Electronic Payments

On 8th Oct’08, RBI mandated that Banks must NOT charge for any Inward RTGS/NEFT/ECS transactions (i.e., for receiving funds). For Outward transactions, i.e., sending the funds, the Maximum Charges have been specified as below: (i)  RTGS  – Rs. 1 to 5 lakh             – not exceeding Rs. 25 per transaction – Rs. 5 lakh and above   ...

My Feedback on Variable Load in MF

In continuation with my previous post on SEBI’s proposal for introducing Variable Entry Load in Mutual Funds, I sent in my response by email on the last day (6th of March). The response is as below: ================ I personally welcome the proposal of having Variable Entry Load in MF. This will bring in a rationalisation ...

Mutual Funds – Variable Entry Load – Opportunity for Investors

SEBI has issued a Proposal on 13th Feb’09 for Variable Entry Load for investments in Mutual Funds made through Distributors. This is good step forward for investors who use Distributor’s service to the minimal. They can henceforth pay less by bargaining on the Entry Load. This will be good for both investors and Distributors. For ...