Cheque Clearing – New Public Friendly Rule by RBI

Till now, even though the banks used technology and reduced their cost, they never passed on the benefits to the customer. Take the case of At Par Clearing Cheque – the Core Banking System enabled the bank to clear a cheque at any place irrespective of the city where the account is held. Before the ...

Happy Deepavali from RBI – Deregulation of SB Interest Rates

RBI has deregulated the Savings Bank Interest Rates (read here). I see this announcement as a Deepavali gift to the larger depositor base. While the focus of the media & public has been on the rate hike which will impact the borrowers, deregulation of SB A/c interest rates will benefit a much larger population. Now ...

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 ...

RBI buys Gold

What is right on the part of RBI to buy gold now when the prices are at all-time high? It looks more like a bubble/ speculative rise. On the other side, gold is any time more valuable than paper dollars 🙂

Interest on deposits in Saving A/c – Change in Rule – Benefit for A/c Holders

RBI’s Annual Policy Statement 2009-10 released yesterday (21st April) includes the following “(b) Payment of Interest on Savings Bank Account on a Daily Product Basis 88. At present, interest on savings bank accounts is calculated on the minimum balances held in the accounts during the period from the 10th day to the last day of ...

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   ...

Safer Online Credit Card Transactions in India

RBI has issued a new directive on 18th Feb’09 mandating Banks and Credit Card Companies to put in place an additional authetication/validation for all “card not present” transactions from 1st Aug’09. Further “online alerts” must be provided to the customer for all “card not present” transactions of value of Rs.5,000/- and above. This is a ...