Posts Tagged ‘RBI’

Sovereign Gold Bond Scheme 2018-19 (Series III) – Issue Price

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Ministry of Finance

Sovereign Gold Bond Scheme 2018-19 (Series III) – Issue Price

02 NOV 2018

Government of India, in consultation with the Reserve Bank of India, Sovereign Gold Bonds 2018-19 (Series III) will be opened for the period November 05-09, 2018. The issue price of the Bond during this subscription period i.e. November 05-09, 2018, shall be Rs.3,183 (Rupees Three Thousand One Hundred Eighty Three only) – per gram with Settlement on November 13, 2018, as also published by RBI in their Press Release dated October 12, 2018.

Government of India in consultation with the Reserve Bank of India, has decided to allow discount of Rs.50 (Rupees Fifty) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs.3,133 (Rupees Three Thousand One Hundred Thirty Three only) per gram of gold.

PIB

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Rift between RBI and Central Government – BEFI

Rift between RBI and Central Government – BEFI

RIFT BETWEEN RBI AND THE CENTRAL GOVERNMENT
BANK EMPLOYEES FEDERATION OF INDIA

NARESH PAUL CENTRE
53 Radha Bazar Lane, (1st Floor), Kolkata – 700 001
e-mail: pradipbefi@yahoo.co.in Website: www.befi.in
(Ph):033- 2225-4414/2236-5108 (M) 9433144271 Fax: 033-2236-5109/2242-0690

Press Statement issued on 30th October 2018 by Shri Pradip Biswas,
General Secretary, Bank Employees Federation of India, at Kolkata,

ON THE RIFT BETWEEN RBI AND THE CENTRAL GOVERNMENT

We are disgusted, rather alarmed, at the public show of rift between the Reserve Bank of India (RBI) and the Central Government in recent months.

Based on the recommendation of the Royal Commission on Indian Currency and Finance (1926), as conceptualised by Dr. B.R.Ambedkar in his famous book, “The problem of the Rupee – its origin and its solution”, RBI was established in 1935 to take care of the financial troubles in the aftermath of the First World War. Since then it has been in charge of managing and regulating the currency and credit system, the monetary policy and foreign exchange reserves of the country; it also acts as the Banker to the Central and State Governments and exercises supervisory
and regulatory controls over the Banking System.

True to its policy of decimating all constitutional and other public institutions to suit its political agenda, the present dispensation at the centre has been out to undermining the autonomy and authority of RBI in all conceivable ways. It all started with the formation of the Monetary Policy Committee, in 2016, with three members nominated by the Centre, so as to gag the RBI’s absolute say in the matter of deciding interest rates. Then came the most ill-conceived demonetisation which, the RBI claimed to have been handed out to it by the Centre, a clear case of usurpation of authority of RBI in the matter of currency management.

To make RBI fall in line, Sri Nachiket Mor, a Director on the Board of RBI, was then removed more than two years before his term was to expire; at the same time, Sri S. Gurumurthy and Sri S. Marathe, having RSS-links, were inducted into the Board much to the displeasure of the Govornor. Then it has been flexing its muscles on the issues of management of Bad Loans (called NPA) of Banks and Prompt Corrective Action (PCA) thereagainst.

There are tussle, also, over Special Window for Dollar Sales to Oil Companies, over funding of Non-Banking Financial Companies, over formation of a separate Payment Regulator etc. To top it all, the Centre wants the RBI to transfer its reserves to the central exchequer; while RBI has made a pay-out of a whopping Rs.30,000/- crore this fiscal, the Centre demands at least Rs.66,000/- Crore which the RBI has declined. The list is almost unending but having one single objective of decimating the Reserve Bank of India, the Central Bank of the country.

While we do not subscribe to all the decisions of RBI at all times, there is no denying that the firm intervention by RBI has saved our economy from many a crisis, the latest being the global financial meltdown of 2008; we firmly believe that undermining RBI would, in its wake, bring about a costly disaster for our economy.

We, therefore, demand that the authority, autonomy and independence of RBI be further strengthened so as to enable it exercise more and stringent supervisory and regulatory control over the banking and monetary system in the best interest of our country.

For favour of circulation/broadcasting/telecasting through your esteemed media.

(Joydeb Dasgupta)
Secretary

Source: BEFI

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Sovereign Gold Bond Scheme 2018-19 (Series II) – Issue Price

Ministry of Finance

Sovereign Gold Bond Scheme 2018-19 (Series II) – Issue Price

12 OCT 2018

Government of India, in consultation with the Reserve Bank of India, Sovereign Gold Bonds 2018-19 (Series II) will be opened for the period October 15-19, 2018. The issue price of the Bond during this subscription period i.e. October 15-19, 2018, shall be Rs. 3,146 (Rupees Three Thousand One Hundred Forty Six only) – per gram with Settlement on October 23, 2018, as also published by RBI in their Press Release dated October 12, 2018.

Government of India in consultation with the Reserve Bank of India, has decided to allow discount of Rs.50 (Rupees Fifty) per gram from the issue price to those investors who apply online and the payment is made through digital mode. For such investors the issue price of Gold Bond will be Rs. 3,096 (Rupees Three Thousand Ninety  Six only) per gram of gold.

PIB

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RBI Circular: Banks to remain open till 8 pm on 31.3.2018

Banks to remain open till 8 pm on 31.3.2018 – RBI Circular

“All agency banks should keep the counters of their designated branches conducting government banking open for government transactions up to 8.00 p.m. on March 31, 2018″

Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2017-18)

RBI/2017-18/144
DGBA.GBD.No.2388/42.01.029/2017-18

March 27, 2018

All agency banks

Dear Sir / Madam

Annual Closing of Government Accounts – Transactions of Central / State Governments – Special Measures for the Current Financial Year (2017-18)

The Government of India has desired that all government transactions with banks for Financial Year 2017-18 must be accounted for within the same financial year and has requested that, as in previous years, certain special arrangements be made for this purpose. Accordingly, all agency banks should keep the counters of their designated branches conducting government banking open for government transactions up to 8.00 p.m. on March 31, 2018. All electronic transactions, including RTGS and NEFT, will continue till midnight on March 31, 2018. Banks may give adequate publicity to the special arrangements made.

Yours faithfully

(Partha Choudhuri)
General Manager

Source: www.rbi.org.in

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Sovereign Gold Bond Scheme 2017-18 Issue Price

Sovereign Gold Bond Scheme 2017-18 Issue Price

Government of India, in consultation with the Reserve Bank of India, had floated Series III of Sovereign Gold Bonds 2017-18, for a period from October 09, 2017 to December 27, 2017 (with subscription period Monday to Wednesday every week). The Bonds will be issued on the succeeding Monday after each subscription period.

For the next subscription period i.e. December 18-20, 2017, the issue price shall be Rs.2,866 (Rupees Two Thousand Eight Hundred Sixty Six only) – per gram with Settlement on December 26, 2017, as also published by RBI in their Press Release dated December 15, 2017.

Government of India in consultation with the Reserve Bank of India, has decided to allow discount of Rs.50 (Rupees Fifty) per gram from the issue price to those investors who apply online and the payment is made through digital mode.

PIB

Be the first to comment - What do you think?  Posted by admin - December 15, 2017 at 9:54 pm

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Sovereign Gold Bond Scheme 2017-18 Issue Price for the next subscription period i.e. October 23-25, 2017 would be Rs. 2,971 per gram with Settlement on October 30, 2017

Sovereign Gold Bond Scheme 2017-18 Issue Price for the next subscription period i.e. October 23-25, 2017 would be Rs. 2,971 per gram with Settlement on October 30, 2017

The Government of India, in consultation with the Reserve Bank of India (RBI), had floated Series III of Sovereign Gold Bonds 2017-18, for the period from October 09, 2017 to December 27, 2017 (with subscription period Monday to Wednesday every week). The Bonds will be issued on the succeeding Monday after each subscription period.

For the next subscription period i.e. October 23-25, 2017, the issue price shall be Rs. 2,971/ (Rupees Two thousand Nine hundred Seventy One only) – per gram with Settlement on October 30, 2017, as also published by RBI in their Press Release dated Oct.20, 2017.

The Government of India in consultation with the Reserve Bank of India, has decided to allow discount of Rs.50 (Rupees Fifty) per gram from the issue price to those investors who apply online and the payment is made through digital mode.

PIB

Be the first to comment - What do you think?  Posted by admin - October 21, 2017 at 9:26 pm

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The promulgation of Banking Regulation (Amendment) Ordinance, 2017 will lead to effective resolution of stressed assets, particularly in consortium or multiple banking arrangements

The promulgation of Banking Regulation (Amendment) Ordinance, 2017 will lead to effective resolution of stressed assets, particularly in consortium or multiple banking arrangements

The Ordinance enables the Union Government to authorize the Reserve Bank of India (RBI) to direct banking companies to resolve specific stressed assets

The promulgation of the Banking Regulation (Amendment) Ordinance, 2017 inserting two new Sections (viz. 35AA and 35AB) after Section 35A of the Banking Regulation Act, 1949 enables the Union Government to authorize the Reserve Bank of India (RBI) to direct banking companies to resolve specific stressed assets by initiating insolvency resolution process, where required. The RBI has also been empowered to issue other directions for resolution, and appoint or approve for appointment, authorities or committees to advise banking companies for stressed asset resolution.

This action of the Union Government will have a direct impact on effective resolution of stressed assets, particularly in consortium or multiple banking arrangements, as the RBI will be empowered to intervene in specific cases of resolution of non-performing assets, to bring them to a definite conclusion.

The Government is committed to expeditious resolution of stressed assets in the banking system. The recent enactment of Insolvency and Bankruptcy Code (IBC), 2016 has opened up new possibilities for time bound resolution of stressed assets. The SARFAESI and Debt Recovery Acts have been amended to facilitate recoveries. A comprehensive approach is being adopted for effective implementation of various schemes for timely resolution of stressed assets.

PIB

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RBI: Systems and Controls for conduct of government banking

RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2016-17/271
DGBA.GAD.No.2646/31.02.007/2016-17

April 7, 2017

All Agency Banks

Dear Sir/Madam,

Systems and Controls for conduct of government banking

Please refer to our Master Circulars DGBA.GAD.No.2/31.12.010/2015-16 dated July 1, 2015 on Conduct of Government Business by Agency Banks – Payment of Agency Commission and DGBA.GAD.No.H-1/31.05.001/2015-16 dated July 1, 2015 on Disbursement of Government Pension by Agency Banks that, inter alia, deal with Systems and Controls in agency banks for conduct of government banking.

In addition to existing instructions, agency banks may ensure that internal/concurrent audit at bank branches verifies whether government business is being conducted as per rules and regulations prescribed by government/RBI. Accordingly, the internal/concurrent audit at bank branches may also examine, among other things, various aspects of government banking such as agency commission claims and pension payments. A checklist may be provided to the inspecting officers/auditors, which may at a minimum include the items given in the Annex. Accordingly, Annex 2 of the Master Circular DGBA.GAD.No.H-1/31.05.001/2015-16 on Disbursement of Government Pension by Agency Banks dated July 1, 2015 stands withdrawn.

Yours faithfully,

(D. J. Babu)
Deputy General Manager

Annex

Checklist relating to government business for internal / concurrent audit

Part A: Agency commission claims

Internal inspectors/auditors may verify the agency commission claims submitted by branches and confirm their accuracy during the course of their inspection/audit. The following may be specifically examined during the course of internal/concurrent audit at agency bank branches:

The system in place to arrive at total number of transactions is robust and free of errors.

Categorisation of different types of transactions (physical/electronic receipts and pension/non-pension payments) are in accordance with RBI instructions.

Correctness of number of transactions reported in agency commission claims.

Whether agency commission has been claimed on error scroll transactions. (Banks are not eligible for commission on error scrolls as the commission on the original transaction is being paid).

Whether proper records are maintained at branches as regards government business and agency commission claims (wherever the branch has a role in making such claims).

Whether the entries in the registers/printouts relating to agency commission claims are properly authenticated.

Part B: Pension related issues

Internal inspections should assess branch performance in servicing pensioner customers. In this regard, the following may be ensured:

A specific questionnaire covering all aspects of pension payment may be devised for use during inspection of pension paying branches.

Inspecting officers may also, during inspections, call up pensioners at random and enquire about their satisfaction with pension-related services.

A detailed check-list relating to pension payments/government business may be given by banks to internal auditors/inspectors in order to adhere to the recommendations of the Prabhakar Rao Committee, constituted by the Government of India, relating to pension payments/government business.

These include the following:

(a) Whether there is delay in payment of pension, revision of pension, revision in dearness relief etc.

(b) Whether the branch manager has structured interaction with a cross section of pensioners serviced at the branch on quarterly basis, where the number of pensioners of all governments and departments exceeds a fixed number, say, 100 or 200.

(c) Whether nominations have been obtained for all pension accounts.

(d) Whether pension accounts have been converted into joint accounts wherever applicable.

(e) Whether the bank branch has an effective complaint redressal mechanism and the complaints of pensioners are attended promptly and their grievances redressed expeditiously.

(f) Whether the pension is credited to pensioner’s account during the last four working days of the month except for the month of March for which pension is to be credited on or after first working day of April.

(g) Whether the pension paying branch obtains Life Certificate/ Non-employment certificate/ Employment Certificate from the pensioners in the month of November every year.

(h) Whether pension paying branches deduct income tax at source from pension payments wherever applicable.

(i) Whether paper tokens in acknowledgement of cheques presented are invariably given by the tax collecting branches.

(j) Whether the challans are stamped giving bank’s BSR code and Challan Identification Number (CIN) clearly.

(k) Whether the stamped challans are kept in the custody of bank’s staff and handed over to the concerned tax payer only on production of the paper token.

Source: www.rbi.org

Be the first to comment - What do you think?  Posted by admin - April 10, 2017 at 8:00 am

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More than 2 dozen companies want collaboration with India Post Payments Bank-Manoj Sinha

More than 2 dozen companies want collaboration with India Post Payments Bank-Manoj Sinha

Government has said that there are many companies who have approached the Department of Posts for collaboration with India Post Payments Bank. Replying to a question in the Rajya Sabha, the Minister of Communications Shri Manoj Sinha said that while the Department is in various stages of discussions with them, decision on formal partnerships will be taken after carefully evaluating the entire value proposition that they propose for the common man. The India Post Payments Bank had launched its two branches in Raipur (Chhattisgarh) and Ranchi (Jharkhand) on 30/01/2017 with basic products and banking services in partnership with Punjab National Bank.

Shri Sinha also said that the Payments Banks are different from regular Banks in the following fundamental ways as per RBI guidelines for Licensing of Payments Banks:

(i) Payment Banks are not allowed to undertake lending activities directly. It can accept demand deposits only that is savings and current accounts and will initially be restricted to holding a maximum balance of Rs. 100,000(Rupees one lakh only) per individual customer.

(ii) Payment Banks cannot accept Non Resident Indian (NRI) deposits.

(iii) The Payment Banks cannot set up subsidiaries to undertake non banking financial services activities.

A list of companies interested in partnering with India Post Payments Bank is attached at Annexure A.

List companies keen to partner with India Post Payments Bank.
1 YES Bank
2 Union Bank
3 Punjab National Bank
4 IDBI Bank (Industrial Development Bank of India)
5 SBI (State Bank of India)
6 Axis
7 Bank of Baroda
8 IDFC Bank (Industrial development finance company)
9 Deutshe Bank
10 Barclays Bank
11 Citibank
12 NABARD (National Bank For Agriculture & Rural Development)
13 HSBC (Hongkong and Shanghai Banking Corporation)
14 MICRO SAVE
15 Allahabad Bank
16 Indian Overseas Bank
17 Dena Bank
18 FIA (Financial Inclusion)
19 Kotak Mahindra Bank
20 United Bank of India
21 HDFC Life (Housing Development Finance Corporation)
22 Royal Sundaram
23 PNB Metlife (Punjab National Bank)
24 ICICI Lombard ( Industrial Credit and Investment Corporation of India Bank)
25 ICICI Prudential ( Industrial Credit and Investment Corporation of India Bank)
26 Bajaj Allianz Life

PIB

Be the first to comment - What do you think?  Posted by admin - March 27, 2017 at 3:11 pm

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No Limits on Cash Withdrawal from Savings Accounts from Today

No Limits on Cash Withdrawal from Savings Accounts from Today

“Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts – RBI”

Keeping up with the pace of re-monetisation, Reserve Bank of India has lifted all the limitations that were placed on cash withdrawals that were placed since November 8th last year.
This means the state of pre-demonetisation in the banks is restored.

Removal of limits on withdrawal of cash from Saving Bank Accounts

In the wake of withdrawal of Specified Bank Notes (SBNs) since November 09, 2016 Reserve Bank had placed certain limits on cash withdrawals from Savings / Current / Cash credit /Overdraft accounts and withdrawals through ATMs. On a review of the pace of remonetisation, Reserve Bank partially restored status quo ante by removing the restrictions on cash withdrawals from Current / Cash credit / Overdraft accounts and ATMs effective January 31, 2017 and February 01, 2017 respectively. However, the limits on cash withdrawal from Savings Bank accounts continued to be in place.

In line with the pace of remonetisation, it has now been decided to remove the restrictions on cash withdrawals from Saving Bank accounts (including accounts opened under PMJDY) in a two step process as under:

Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to Rs.50,000 per week (from the current limit of  Rs.24,000 per week); and
Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts.

Be the first to comment - What do you think?  Posted by admin - March 13, 2017 at 10:00 pm

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Reserve Bank: Limit on Cash Withdrawals from SB Accounts raised to Rs.50, 000 per week

Reserve Bank: Limit on Cash Withdrawals from SB Accounts raised to Rs.50, 000 per week

Reserve Bank today announced that the cash withdrawal limits on savings bank account to be raised to Rs 50,000 per week from the existing limit of Rs.24,000 from Feb 20.

And also the limits on cash withdrawals from savings bank account would be removed from March 13.

Removal of limits on withdrawal of cash from Saving Bank Accounts

RBI/2016-17/224
DCM (Plg) 3107/10.27.00/2016-17

February 08, 2017

All Banks
Dear Madam / Sir,

Removal of limits on withdrawal of cash from Saving Bank Accounts
Please refer to our circular DCM (Plg) 2905/10.27.00/2016-17 dated January 30, 2017 on the captioned subject.

2. In the wake of withdrawal of Specified Bank Notes (SBNs) since November 09, 2016 Reserve Bank had placed certain limits on cash withdrawals from Savings / Current / Cash credit /Overdraft accounts and withdrawals through ATMs. On a review of the pace of remonetisation, Reserve Bank partially restored status quo ante by removing the restrictions on cash withdrawals from Current / Cash credit / Overdraft accounts and ATMs effective January 31, 2017 and February 01, 2017 respectively. However, the limits on cash withdrawal from Savings Bank accounts continued to be in place.

3. In line with the pace of remonetisation, it has now been decided to remove the restrictions on cash withdrawals from Saving Bank accounts (including accounts opened under PMJDY) in a two step process as under:

Effective February 20, 2017, the limits on cash withdrawals from the Savings Bank accounts will be enhanced to ? 50,000 per week (from the current limit of ? 24,000 per week); and

Effective March 13, 2017, there will be no limits on cash withdrawals from Savings Bank accounts.

4. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

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Reserve Bank of India (RBI) is set to announce bi-monthly monetary policy review

Reserve Bank of India (RBI) is set to announce bi-monthly monetary policy review

The Reserve Bank of India (RBI) is set to announce bi-monthly monetary policy review on Wednesday.

A lot of predictions have been done by the analysts and experts on whether the central bank should maintain a status quo or cut the interest rates.

In the last monthly policy, held on December 7, the central bank had kept key rates unchanged amid the then on-going demonetisation exercise, which had led the whole country in cash crisis. That time, the analysts were expecting a rate cut, but the RBI Governor Urjit Patel gave ‘surprise’ buy not reducing the rates.

A Reuters poll last week, conducted before the government presented its annual budget, showed 28 of 46 participants expected the RBI on Wednesday to cut the repo rate by 25 basis points to 6.0%, its lowest since November 2010. Another two expected a 50 bps cut.

Here are the factors which will decide RBI’s decision

Inflation

Consumer Price Inflation fell to a two-year low of 3.41% in December, which is below the RBI’s end-March 2017 target of 5% and medium-term target of 4%.

The fall in inflation has given enough room for the RBI to cut the rates. Commenting on the expectation from the central bank, Rishi Mehra, Co-Founder and Director of Wishfin (earlier known as Deal4loans) said, “We are expecting a 25 basis points reduction in the key policy rate – the repo rate – to 6 % on February 8 when the Governor Urjit Patel will unveil his third policy review. Since the last RBI policy, the CPI inflation has been to the downside both in the month of November and December, giving possibilities of meeting the 5% March 2017 CPI target. Having said that, the RBI had made it quite clear that it will work towards the achievement of the consumer price index inflation.”

Having similar view, HSBC in its report said, “We hold on to our expectation of a 25 basis points rate cut in February, but caution that this would likely bring the easing cycle to an end, given the pressures in the horizon implementation of the goods and services tax (GST) bill, rising oil prices, implementation of government employees housing allowance, and the challenging 4% CPI target for the medium term.”

Moreover, Nomura in its report said, “On the monetary policy front, with the government sticking to fiscal consolidation and headline CPI likely to undershoot the RBI’s March 2017 target of 5%, we are pencilling in a final 25 bps repo rate cut to 6% on February 8.”

Raghu Kumar, Director, Upstox, said, “In our view, RBI is expected to cut repo rate by 0.25 per cent at its policy review on Wednesday. This rate cut would be supported by the modest CPI inflation, which is expected to undershoot the March 2017 target set by RBI and the continued fiscal consolidation attempted in the Union Budget for FY2018.”

Demonetisation

In the last policy meet, some experts were expecting RBI to look at the rate cut amid the demonetisation exercise to get a clear picture of the whole exercise.

Today, Bank of America Merill Lynch said to reverse the impact of the demonetisation drive to growth prospects, the Reserve Bank will cut rates tomorrow as well as in the April policy review.

“We continue to expect the RBI-MPC (monetary policy committee) to cut the rates by 0.25%t and in April with demonetisation hurting growth,” it said.

However, having the opposite view, Kavita Chacko, Senior Economist, said, “We do not expect a rate cut in this policy as the banks have already lowered interest rates following the inflow of deposits into the banking system following demonetisation.”

Fiscal Deficit

Finance Minister Arun Jaitley during his Union Budget 2017 speech stated that the fiscal deficit aim for the next fiscal would be 3.2% instead of 3.%. Analysts believe that disinvestment targets is key if the government has to achieve this fiscal deficit target.

“The better than feared deficit target and commitment to fiscal consolidation will keep hopes of a RBI rate cut alive,” the Citigroup report said adding “the Budget reinforces our view of another 25 bps cut in repo rate”.

In the very beginning of the year, the banks had slashed its marginal cost of funds based lending rate in the range of 90 basis points – 75 basis points across all maturities.

The banks’ decision came in after they were flooded with liquidity post demonetisation. According to a Bloomberg report, this behaviour of banks has made it clear that they respond to liquidity triggers far more quickly than policy rate triggers.

So, for tomorrow like the analysts say it will be a “close call” for RBI on whether to hold the rates or reduce them.

Be the first to comment - What do you think?  Posted by admin - February 8, 2017 at 1:54 pm

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India Post Payments Bank will be a game changer for financial inclusion – Manoj Sinha

Press Information Bureau,
Government of India
Ministry of Communications & Information Technology

30-January, 2017 18:27 IST

India Post Payments Bank will be a game changer for financial inclusion -Manoj Sinha
IPPB branches launched in Ranchi & Raipur

 

IPPB-India-Post-Payments-Bank

Finance Minister, Shri Arun Jaitley and Minister of Communications Shri Manoj Sinha launched the operations of the India Post Payments Bank (IPPB) here today as two pilot branches at Raipur and Ranchi through video conferencing from Delhi.

Speaking on the occasion, Shri Jaitley said that about 650 IPPB branches will be opened by September this year and that will have a multiplier impact as far as banking in India is concerned. He said with IPPB, banking at the doorstep will no longer remain a mere slogan, but will become a reality due to huge postal network in the country. He said that financial Inclusion is critical for the socio-economic development of the country, but there are significant gaps in this area and a large proportion of country’s population remain unbanked or underbanked. IPPB will effectively leverage the ubiquitous post office network with its pan-India physical presence, long experience in cash handling and savings mobilization, backed by the ongoing project of IT-enablement, to bridge this gap in Financial Inclusion.

In his address, Minister of Communications Shri Manoj Sinha has commended the hard work done by the Department of Posts in setting up the India Post Payments Bank and hoped that both organizations will work in tandem to take the benefits of government schemes and financial services that are not easily available in rural areas to customers across the country and to the marginalized population in urban and rural areas alike. He said, the objective of IPPB will be public service rather than promoting commercial interests.

Secretary, Department of Posts, Shri B.V.Sudhakar said that the IPPB is widely expected to be a game changer for financial inclusion in the country as the USP of this initiative is doorstep banking, particularly in the rural areas.

As mandated by the RBI, the India Post Payments Bank (IPPB) would focus on providing basic financial services such as all kinds of payments; including social security payments, utility bill payments, person to person remittances (both domestic and cross-border), current and savings accounts up to a balance of Rs 1 lac, distribution of insurance, mutual funds, pension products and acting as business correspondent to other banks for credit products especially in rural areas and among the underserved segments of the society.

Set up us a 100% Government of India owned Public Limited Company under the Department of Posts, it will open around 650 branches in district HQ locations. All 1.55 lacs post offices including the 1.39 lac of the rural post offices will be mapped to the IPPB branch at the district headquarter and function as access points for IPPB. IPPB will usher in state of the art internet and mobile banking platforms, digital wallets and use innovative and emerging technologies to catalyse the shift from a cash dominant to a less cash economy.

While many other banks and financial institutions are working on the same theme, the USP of IPPB will be its ability to ease access and handhold the adoption of new age banking and payments instruments among citizen of all walks of life through the delivery by postmen and Grameen Dak sevaks, savings agents and other franchisees who will take banking to door steps. IPPB thus aspires to the most accessible, affordable and trusted bank for the common man with the motto – “No customer is too small, no transaction too insignificant, and no deposit too little”.

Given ‘in principle’ approval by the RBI along with 10 other aspirants on 19th Aug 2015, IPPB received the cabinet’s approval on 1st June, 2016 and was incorporated as on 17th Sept, 2106. Today it became the second payments bank to launch its operations. Having got its final banking license from the RBI on the 20th Jan 2017 it has commenced operations in record time of 10 days in partnership with the Punjab National Bank, after obtaining all necessary approvals and registrations from the RBI, NPCI etc.

A commemorative stamp and a logo of the new bank were also launched on the occasion.

Be the first to comment - What do you think?  Posted by admin - January 31, 2017 at 7:48 am

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RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

Limits on Cash withdrawals from Bank accounts and ATMs – Restoration of status quo ante

RESERVE BANK OF INDIA
www.rbi.org.in

RBI/2016-17/217

DCM (Plg) No. 2905/10.27.00/2016-17

January 30, 2017

The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks,
Regional Rural Banks / Urban Co-operative Banks,
State Co-operative Banks / District Central Co-operative Banks

 Dear Sir/Madam,

Limits on Cash withdrawals from Bank accounts and ATMs – Restoration of status quo ante

Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 placing limits on Cash withdrawals from bank accounts and ATMs in the wake of withdrawal of Legal Tender Character of Specified Bank Notes (SBN) and subsequent circulars DCM (Plg) Nos.1256, 1274, 1317, 1437, 2142 and 2559 dated November 11, 14, 21, 28, December 30, 2016 and January 16, 2017 respectively, providing for relief and relaxations therefrom.

2. On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under:

Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.

The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.

Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.

3. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.

4. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

RBI Circulr 2017

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Section of bank employees threaten nation-wide strike on Feb 7

Section of bank employees threaten nation-wide strike on Feb 7

New Delhi: A section of bank trade unions have threatened to go on a day-long nation-wide strike on February 7 to press various demands including complete removal of restrictions imposed during demonetisation period and safeguarding the autonomy of the Reserve Bank of India.

“It was expected that the government and the RBI would take necessary steps to mitigate the problems faced by the banks and the public but even now, we find that there is acute shortage of cash supply to the banks with the result that branches are not able to honour even the restricted payment of Rs 24,000/100,000 per week,” AIBEA General Secretary C H Venkatachalam said.

Apart from All India Bank Employees’ Association( AIBEA), other unions which will be part of the strike are All India Bank Officers’ Association (AIBOA) and Bank Employees Federation of India.

Unions are also demanding publishing names of individuals who have defaulted in paying loans of Rs 1 crore and above so that stringent measures could be taken to recover bad loans.

Other demands of banks include ensuring autonomy of RBI in cash management, compensation to family of general public, bank customers and bank staff who lost their lives in the demonetisation aftermath and payment of overtime to employees and officers for their additional effort during the 50-day demonetisation period.

He added that the government is interfering by appointing officials to monitor cash management which is affecting the autonomy of RBI. Cash management falls under the sole jurisdiction of RBI, he said.

“Humiliated” by the events since demonetisation, even RBI employees had written to Governor Urjit Patel protesting the operational “mismanagement” of the note ban exercise and the government impinging the apex bank’s autonomy.

In a letter, the employees said that the autonomy and image of RBI has been “dented beyond repair” due to mismanagement and termed the appointment of a senior Finance Ministry official for currency coordination as a “blatant encroachment” of the RBI’s exclusive turf.

PTI

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Cash withdrawal from ATMs – Enhancement of daily limits (Rs.2500 to Rs.4500)

Cash withdrawal from ATMs – Enhancement of daily limits (Rs.2500 to Rs.4500)

RBI/2016-17/204
DCM (Plg) No. 2142/10.27.00/2016-17

December 30, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/
Regional Rural Banks / Urban Cooperative Banks/ State Cooperative Banks
District central Cooperative Banks

Dear Sir,

Cash withdrawal from ATMs – Enhancement of daily limits

Please refer to our circular DCM (Plg) No. 1424/10.27.00/2016-17 dated November 25, 2016 on “Withdrawal of cash from bank deposit account – Relaxation”.

2. On a review of the position, the daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing Rs. 2500/- to Rs. 4500/- per day per card. There is no change in weekly withdrawal limits.Such disbursals should predominantly be in the denomination of Rs.500.

3. The relaxation of withdrawal limits as enabled by our circular DCM (Plg) No. 1437/10.27.00/2016-17 dated November 28, 2016 remains unchanged.

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

Source: https://www.rbi.org.in

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Government, RBI taking steps to lower digital transaction cost: FM

Government, RBI taking steps to lower digital transaction cost: FM

Finance Minister Arun Jaitley today said the government and the Reserve Bank are taking measures to bring down the digital transaction cost with an aim to move towards a less-cash economy.

Chairing the 5th Meeting of the Consultative Committee attached to his ministry, Jaitley said digital transactions are a parallel mechanism, not a substitute, for cash transactions and “cashless economy is actually a less cash economy as no economy can be fully cashless”.

He told the participating Members of Parliament (MPs) that the government is trying to encourage digitisation as much as possible because an excessive cash economy has its own social and economic costs and consequences.

Less cash, he said, can be gradually substituted to the possible extent through digital transactions.

According to an official release, Jaitley said the Centre has announced various incentives to attract people to shift to digital mode of payment and the response is quite positive so far in this regard.

Jaitley further said the government and the RBI have taken various steps to bring down the cost of digital transactions and specifically mentioned about MDR charges.

The Finance Minister added that 55 per cent petrol pumps in the country are accepting payment through digital means and

with the government providing incentives, more people are switching to this mode.

Jaitley further said the government is conscious of the need of cyber security of high level to secure digital payments.

He told the MPs that the government and RBI are fully aware of cyber security challenges and ensuring strong firewalls around the systems.

As part of efforts to promote e-payments, the Finance Minister said the government is providing various incentives for digital transactions including on debit card use.

Regarding the availability of POS machines, he said POS machines are manufactured by two companies in China and the government has waived duties on them so that these machines become cheaper and reach the shopkeepers easily.

PTI

Be the first to comment - What do you think?  Posted by admin - December 16, 2016 at 2:52 pm

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High Court asks RBI to consider issue of salary payment to teachers

Mumbai: The Bombay High Court today asked the RBI to consider the issue of payment of salaries to aided school teachers since it is disbursed through district cooperative banks which have been prohibited from depositing and exchanging old currency notes.

The Mumbai, Solapur, Nashik and Pune District Central Cooperative Banks had approached the high court challenging the RBI circular of November 14, restricting them from exchanging or depositing old currency notes of Rs 500 and Rs 1,000, which were declared as illegal tender under the government’s demonetisation move on November 8.

Solapur co-operative bank counsel V M Thorat today informed the court that the bank receives around Rs 95 crore from the state government for salaries of teachers in aided schools, but due to the circular the bank is not able to disburse the amount.

A division bench of Justices A S Oka and Anuja Prabhudessai asked the Reserve Bank to consider the issue.

“RBI needs to consider this issue. We cannot take this matter up on merits as the Supreme Court is already seized of the main contentions raised in the petitions, but this particular issue about teachers’ salaries can be looked into,” Justice Oka said.

“It is common knowledge that teachers of aided schools get their salaries from cooperative banks. We want to know how teachers will get their salaries now,” the court said.

Thorat informed the bench today that the banks have filed application in the apex court seeking clarification on whether the high court can hear the matter.

“The application along with the transfer petition filed by the Union government seeking for all petitions filed on the demonetisation issue to be heard by SC itself is posted for hearing on December 9,” the counsel said.

The high court then adjourned the cooperative banks petitions to December 14.

PTI

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Relaxation on withdrawal of cash from bank deposit accounts – RBI Instructions on 28.11.2016

Relaxation on withdrawal of cash from bank deposit accounts – RBI Instructions on 28.11.2016

Withdrawal of cash from bank deposit accounts – Relaxation

RBI/2016-17/163
DCM.No.1437/10.27.00/2016-17

November 28, 2016

The Chairman / Managing Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks /
Regional Rural Banks / Urban Cooperative Banks/
State Cooperative Banks/ District Central Cooperative Banks

Dear Sir,
Withdrawal of cash from bank deposit accounts – Relaxation

It has been reported that certain depositors are hesitating to deposit their monies into bank accounts in view of the current limits on cash withdrawals from accounts.

2. As it is impeding active circulation of currency notes, it has been decided, on careful consideration, to allow withdrawals of deposits made in current legal tender notes on or after November 29, 2016 beyond the current limits; preferably, available higher denominations bank notes of Rs. 2000 and Rs. 500 are to be issued for such withdrawals.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

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Withdrawal of Legal Tender Character of existing Rs.500/- and Rs.1000/- Specified Bank Notes (SBNs) – Cash withdrawal for purpose of celebration of wedding

Withdrawal of Legal Tender Character of existing Rs.500/- and Rs.1000/- Specified Bank Notes (SBNs) – Cash withdrawal for purpose of celebration of wedding

RBI/2016-17/145
DCM (Plg) No.1320/10.27.00/2016-17

November 21, 2016

The Chairman / Managing Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks/ Private Sector Banks/ Foreign Banks
Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks

Dear Sir,
Withdrawal of Legal Tender Character of existing Rs. 500/- and Rs. 1000/- Specified Bank Notes (SBNs) – Cash withdrawal for purpose of celebration of wedding

Please refer to our Circular No. DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 on the captioned subject.

2. With a view to enable members of the public to perform and celebrate weddings of their wards it has been decided to allow higher limits of cash withdrawals from their bank deposit accounts to meet wedding related expenses. Yet, banks should encourage families to incur wedding expenses through non-cash means viz. cheques /drafts, credit/debit cards, prepaid cards, mobile transfers, internet banking channels, NEFT/RTGS, etc. Therefore, members of the public should be advised, while granting cash withdrawals, to use cash to meet expenses which have to be met only through cash mode. Cash withdrawals shall be subject to the following conditions:

i. A maximum of Rs.250000/- is allowed to be withdrawn from the bank deposit accounts till December 30, 2016 out of the balances at credit in the account as at close of business on November 08, 2016.

ii. Withdrawals are permitted only from accounts which are fully KYC compliant.

iii. The amounts can be withdrawn only if the date of marriage is on or before December 30, 2016.

iv. Withdrawals can be made by either of the parents or the person getting married. (Only one of them will be permitted to withdraw).

v. Since the amount proposed to be withdrawn is meant to be used for cash disbursements, it has to be established that the persons for whom the payment is proposed to be made do not have a bank account.

vi. The application for withdrawal shall be accompanied by following documents:

  • An application as per Annex
  • Evidence of the wedding, including the invitation card, copies of receipts for advance payments already made, such as Marriage hall booking, advance payments to caterers, etc.
  • A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account. The list should indicate the purpose for which the proposed payments are being made

3. Banks shall keep a proper record of the evidence and produce them for verification by the authorities in case of need. The scheme will be reviewed based on authenticity/ bona fide use thereof.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Encl: As above

Authority: www.rbi.org.in
Click to view and download the Application Form

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