Best Fixed Deposits For Senior Citizens With Good Returns Up To 7.75%

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Top Small Finance Bank FD Rates For Senior Citizens

The FD rates mentioned below are of top small finance banks and are valid to deposits below Rs. 2 crore for senior citizens.

Banks Tenure ROI in %
Suryoday Small Finance Bank 5 years 7.75%
Utkarsh Small Finance Bank 700 days 7.50%
Equitas Small Finance Bank 888 days 7.30%
Fincare Small Finance Bank 36 months 1 day to 59 months 7.00%
Jana Small Finance Bank Above 2 to 3 years 7.00%
Ujjivan Small Finance Bank 1 year – 2 years 7.00%

Top Private & Public Sector Bank FD Rates For Senior Citizens

Top Private & Public Sector Bank FD Rates For Senior Citizens

The fixed deposit rates for senior citizens listed below are related to deposits of less than Rs. 2 crore.

Banks 1-year rate 3-year rate 5-year rate
RBL Bank 7.00% 6.75% 6.25%
DCB Bank 6.55% 7.25% 7.25%
YES Bank 6.75% 7.50% 7.50%
Bandhan Bank 6.50% 6.40% 6.25%
Axis Bank 5.65% 5.90% 6.00%
IDFC First Bank 5.75% 5.75% 5.75%
IndusInd Bank 7.00% 7.00% 7.00%
Federal Bank 5.60% 5.85% 6.00%
Canara Bank 5.70% 6.00% 6.00%
HDFC Bank 5.40% 5.65% 5.80%
ICICI Bank 5.40% 5.65% 5.85%
Bank of Baroda 5.40% 5.60% 5.75%
PNB 5.70% 5.80% 5.80%
State Bank of India 5.50% 5.80% 6.20%

Key takeaways of senior citizen FD schemes

Key takeaways of senior citizen FD schemes

The following facts illustrate the characteristics of fixed deposit schemes for senior citizens proposed by different banks:

  • Usually, the tenure of senior citizen FD schemes ranges from 7 days to 10 years
  • Additional FD rates typically vary from 0.25 per cent to 0.65 per cent provided to senior citizens as opposed to non-senior citizens.
  • Most of the banks provide interest on a monthly, annual or semi-annual basis to senior citizens.
  • Bulk deposits for senior citizens start at Rs. 2 crore and go up.
  • Senior citizens can claim 80C deductions for up to Rs. 1.5 lakh if they invest for a term of 5 years in a fixed deposit.

Documents required

Documents required

To effectively open a fixed deposit account at any bank or non-banking financial company, the following list of documents must be kept handy by senior citizens:

  • Residence proof: Utility bills of the last 3 months, Aadhaar Card, PAN Card, Voter ID Card
  • Identity proof: Passport, Voter ID Card, Aadhaar Card
  • PAN Card or Form 60
  • Form 15H
  • Age proof: Age or date of birth issued by any Government Institution/Agency/Local Body

Eligibility criteria

Eligibility criteria

Most of the banks allow senior citizens who are 60 years of age or higher to open a fixed deposit account. Super senior citizens are also considered by some of the banks. Those are the ones who have passed the 80-year age barrier. They are provided above the rates promised to senior citizens with additional fixed deposit interest rates.

TDS applicable on senior citizen FD schemes

Banks and NBFCs subtract tax from earned interest before crediting it to the depositor’s account in the case of fixed deposits. TDS is levied as the interest accrues, i.e. monthly, quarterly, half-yearly or annually, in the case of accumulated interest payments. If received interest crosses Rs. 50,000 for senior citizens, tax is withheld at a rate of 10%, similar to Rs. 40,000 for ordinary citizens.



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Reserve Bank of India – Tenders

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Reserve Bank of India, Chandigarh invites E-tender for Annual Maintenance contract for operation of water lifting pumps & maintenance of electrical installation at Reserve Bank of India Officer’s Quarter sector- 44 B, and Staff colony sector- 30A, Chandigarh

2. The work is estimated to cost ₹19,66,000/-. This is an Open Tender. Only those firms, who are registered on MSTC portal will be able to take part in the Tender process. The tender document is available on website www.rbi.org.in for download from February 27, 2021.

3. Tender shall be submitted online in two parts. Part-I of the tender will contain the Bank’s standard technical and commercial conditions for the proposed work, which must be agreed to by the tenderers. Part-II of the tender will contain Bank’s schedule of quantities and tenderer’s price bid to be submitted online.

4. The firms fulfilling the eligibility criteria and desirous of being considered for award of the work should upload all the required documents at www.mstcecommerce.com/eprochome/rbi on or before March 17, 2021 (12:00 PM).

5. Part-I of the tender will be opened at 02:30 pm on March 17, 2021 on MSTC website.

The timeline of the tender is as follow:

a. e-Tender Name Annual Maintenance contract for operation of water lifting pumps & maintenance of electrical installation at Reserve Bank of India Officer’s Quarter sector- 44 B, and Staff colony sector- 30A, Chandigarh
b. e-Tender no RBI/Chandigarh/Estate/387/20-21/ET/593
c. Mode of Tender e-Procurement System
(Online Part I – Techno-Commercial Bid and Part II – Price Bid through www.mstcecommerce.com/eprochome/rbi)
d. Date of NIT available to parties to download from RBI website www.rbi.org.in February 27, 2021 (Saturday)
e. Pre-Bid meeting (Off-line) March 08, 2021 (Monday) 11:00 am to 12:00 pm at Estate Department, 3rd floor, MOB, RBI Chandigarh
f. Last date for submission of e-Tender March 17, 2021 (Wednesday) up to 12:00 pm
g. Earnest Money Deposit ₹39,331/- in the form of NEFT in favour of Reserve Bank of India, Chandigarh

Address:
Reserve Bank of India, Sector 17, Chandigarh – 160017

Details for NEFT
Beneficiary Name: Estate (space) Your Firm’s Name
Beneficiary Ac No: 186003001
IFSC: RBIS0CGPA01 (5th and 10th being zero)

h. Last date of submission of EMD March 17, 2021 (Wednesday) 12:00 pm
i. Date of Starting of e-Tender for submission of on line Techno-Commercial Bid and price Bid at www.mstcecommerce.com/eprochome/rbi March 01, 2021 (Monday) from 12:00 pm
j. Date of closing of online e-tender for submission of Techno-Commercial Bid & Price Bid March 17, 2021 (Wednesday) 12:00 pm
k. Date & time of opening of Part-I (i.e. Techno-Commercial Bid)

Date & Time of opening of Part-II (Price Bid)

a. March 17, 2021 (Wednesday) 02:30 pm

b. May be opened online on the same or a later date.

l. Transaction Fee ₹. ———– (inclusive of GST @18%)
To be paid through MSTC Payment Gateway/NEFT/RTGS in favour of MSTC Limited or as advised by M/s MSTC Ltd.

Please do not transfer the transaction fee to Reserve Bank of India, Chandigarh

M. Estimated cost of work ₹ 19,66,000/- (Rupees Nineteen Lakh Sixty-six thousand only)

The Bank is not bound to accept the lowest tender and reserves the right to accept either in full or in part any tender. The Bank also reserves the right to reject all the tenders without assigning any reason thereof.

Regional Director
Reserve Bank of India
Chandigarh Regional Office

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Reserve Bank of India – Tenders

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E-Tender No. RBI/Kochi/Estate/380/20-21/ET/583

The pre-bid meeting for the captioned Tender was held at 11:00 hrs on February 25, 2021 as per the schedule of tender at the Seminar hall in the Office Building of Reserve Bank of India, Ernakulam North, Kochi – 682018, by maintaining social distancing and as per COVID-19 protocols.

Shri. S Ravindran, Assistant General Manager (Premises), Shri. Nithi Hariram, Manager (P&SO), Shri. Pavankumar Nayak, Assistant Manager (Premises), Shri. Harikrishnan P M, Assistant, and Smt. Reshma Sajeev, Assistant, were present from Bank’s side and the representatives from various companies / agencies (list attached in Annex) participated in the meeting.

Shri. S Ravindran, Assistant General Manager (Premises), welcomed all participants to the meeting and invited for queries, if any, from the prospective bidders regarding the captioned tender.

Details of queries raised by representatives of various companies / agencies and clarification / comments / corrigendum of the Bank are tabulated below.

Sl. No. Query Comments / Corrigendum by the Bank
1. Whether any transaction fee has to be paid to the Bank for participating in the Tender. No payment has to be made to the Bank in this regard. The transaction fee is charged by MSTC Limited and the payment of Transaction fee has to be made only through MSTC Gateway / NEFT / RTGS in favour of MSTC Limited or as advised by MSTC Limited. The amount to be paid will also be as advised by MSTC Limited.
2. How to carry out the waste disposal The disposal of all kinds of wastes including horticultural waste, housekeeping waste and wastes collected from the Office building and Residential flats etc. is the responsibility of the contractor. The collection and segregation is also under the scope of the contractor. The segregated wastes has to be removed from the Bank’s premises, at the time intervals as specified by the Bank, strictly adhering to the extant laws, rules, regulations etc. in place, by the authorities concerned like Central Government, State Government, Kochi Municipal Corporation, Pollution Control Board, other local Self-Governing Authorities, Health Department, Courts, other authorities etc. The Contractor shall be solely responsible for disposal of waste outside the Bank’s premises conforming to the extant laws and the Bank shall not be liable or held responsible in this regard. Further, incinerator facility is not available in the Bank’s premises and burning of any kind of wastes inside the Bank’s premises is strictly prohibited and will be penalised. Refer, “III) WASTE MANAGEMENT WORKS” under “Section VIII – DETAILED SCOPE OF WORK” of the tender document for more details.
3. Whether the maintenance of Organic Waste Converter falls under the scope of work. Day-to-Day operation and daily upkeep of the Organic Converter Plant and the nearby areas come under the scope of work of the contractor. However, the Annual Maintenance of the Organic Waste Converter machine is a separate contract and does not come under the scope of the work of the above Tender. Refer, “III) WASTE MANAGEMENT WORKS” under “Section VIII – DETAILED SCOPE OF WORK” of the tender document for more details.
4. Whether Bank will revise the amount quoted under Serial Number 1 and 2 of the Financial Bid i.e. Amount for Basic Wages and Variable Dearness Allowance (VDA) Bank will not entertain the Contractor’s claim for revision of rates during the currency of contract except when changes in two components of minimum rates of wages only viz. the Basic rates and Variable Dearness Allowance (VDA), as announced by the Government of India under the Minimum Wages Act / The Code on Wages, 2019, whichever is relevant. The amount of such hike in monthly contract amount, in proportion to the monthly duties, will be restricted only to the increase in Basic rates and Variable Dearness Allowance (VDA). The revision in monthly bill amount will be restricted to the amounts quoted under serial numbers 1 and 2 of the financial bid and the revision will be done only proportionally to the increase in basic rates and variable dearness allowance (VDA) parts of the wages. However, there will not be any limit in revision of the amounts quoted under serial numbers 1 and 2 of the financial bid.

Accordingly, para “2.3.” in page number 13 of 88, under “Section II – General Instructions regarding Technical and Financial bids”, para “Q.” in page number 24 of 88, under “Section IV – Articles of Agreement”, and para “65.” in page number 24 of 88, under “Section VII – TERMS AND CONDITIONS” stands corrected / amended as given below:

“The quote offered by the Contractor in the financial bid shall be firm and final and the Bank will not entertain the Contractor’s claim for revision of rates during the currency of contract except when changes in two components of minimum rates of wages only viz. the Basic rates and Variable Dearness Allowance (VDA), as announced by the Government of India under the Minimum Wages Act / The Code on Wages, 2019, whichever is relevant. The amount of such hike in monthly contract amount, in proportion to the monthly duties, will be restricted only to the increase in Basic rates and Variable Dearness Allowance (VDA). Any other components which form part of wages or allowance which are statutory in nature viz. EPF, ESI, Bonus etc. which are dependent on the Basic rates and/or Variable Dearness Allowance (VDA) will not be considered by the Bank for the revision in monthly contract. The Contractor shall factor in the possible escalation of these statutory components other than Basic rates plus VDA and offer the best rates in such a way as to accommodate these incremental costs under serial number 3 of the financial bid. The revision in monthly bill amount will be restricted to the amounts quoted under serial numbers 1 and 2 of the financial bid and the revision will be done only proportionally to the increase in basic rates and variable dearness allowance (VDA) parts of the wages. The decision of the Bank in the matter will be final.”

5. Clarification on number of duties on National holidays and additional payment of wages in this regards. The number of duties on each day will be as specified in the tender regardless of National / festival / Bank holidays. The total number of duties of the “Facility Manager” for the year 2021-22 is 313 and the total number of duties of “other workers” together for the year 2021-22 is 7146 (22 x 313 + 5 x 52). The charges for wages including statutory requirements like ESI, PF etc. must be quoted by the contractor according to the above number of duties. Additional payment towards wages for relievers, services rendered by labours on National and Festival holidays etc. shall be borne by the contractor. The charges for the same shall be included under serial number 3 of the financial bid. Contractor is bound to maintain prescribed number of workers/supervisors at all days in a week as specified in the tender document. Any shortfall observed in maintaining the specified manpower requirement will force the Bank to impose penalty as stipulated in the tender document. However, it may also be noted that the Bank reserves the right to increase or decrease the number of duties based on its requirement, before awarding the work, at the time of renewal, if any, or at any time during the currency of contract. The monthly contract amount shall be proportionately arrived at when the Bank resorts to such change in the number of duties.
6. Whether rooms for storage of consumables, cleaning materials etc. and rooms for workers will be provided by the Bank The Bank will provide storage room and room for changing of dress etc. for the workers of the contractor.
7. Whether supply of garbage bags comes under the scope of the tender Garbage bags will be provided by the Bank. However, collecting the garbage bags from the Bank, distribution of the same / placing the same in the designated dust bins etc. comes under the scope of the tender.
8. Whether there is any condition for ISO certification of the firm The Companies / Firms / Agencies shall have certification viz. ISO 9001-2008 or higher, for quality management system, and it shall be verifiable and valid as on the last date of submission of E-tender.

Accordingly, the following amendments / corrigenda in the Tender document is notified:

1. In the table under para “1.2. Eligibility criteria for participating in the tender”, in page number 11 of 88, under “Section – II – General Instructions regarding Technical and Financial bids”, “1. PART- I (Technical bid)”, one more row with the following descriptions is added:
Sl. No. – “6”
Criteria – “ISO Certification”
Requirement – “The Companies / Firms / Agencies shall have certification viz. ISO 9001-2008 or higher, for quality management system, and it shall be verifiable and valid as on the last date of submission of E-tender.”

2. Under para “1.4. Documents to be uploaded”, in page number 12 of 88, under “Section – II – General Instructions regarding Technical and Financial bids”, “1. PART- I (Technical bid)”, one more clause (“m)”) with the following words and figures, is added under para “(i) Scanned copy of Original Documents to be uploaded online through ‘mstcecommerce’ portal in PDF format while submission of e-Tender (Each file size should not exceed 5 MB):”:

“m) Any valid document in support of Company / Firm / Agency having certification viz. ISO 9001-2008 or higher, for quality management system.”

9. What is the approximate number of water closets / urinals / wash basins etc. in the Bank’s premises, for providing tissue papers, urinal screens, naphthalene balls, hand wash etc.

The approximate number of toilets / washrooms / wash basins etc. in the Bank’s premises is as given below:

1. Gents Urinals – 13
2. Wash Basins – 46
3. Water Closets (Western) – 28
4. Water Closets (Indian) – 9

10. Clarification regarding the One-time collection and disposal of waste under the scope of work Refer para “V) ONE-TIME COLLECTION AND DISPOSAL OF WASTE”, under “Section VIII – DETAILED SCOPE OF WORK” of the tender document. The charges / amount for the same shall be paid by the bank separately and the same shall not be included in the amounts to be quoted in the financial bid. The charges / amount for the same shall be arrived at, by the Bank on the basis of the amounts quoted by the contractor under various items in the financial bid and also the amount of waste materials to be removed, at the time of beginning of the contract, the amount of labour involved etc.
11. Whether providing sanitiser comes under the scope of work of the tender No.
12. Whether cutting of trees comes under the scope of work. Cutting down of all kinds of trees / branches as and when directed by the Bank, comes under the scope of the contractor. However, for cutting down of bigger trees / branches, the Bank shall pay the cost for the works involved, separately to the contractor, based on competitive markets rates. However, the decision of the same, will be done solely by the Bank and the decision shall be final and binding on the contractor. Refer “II) HORTICULTURE AND GARDENING WORKS” under “Section VIII – DETAILED SCOPE OF WORK” of the tender document for more details.
13. Under which categories does the facility Manger and other workers fall, for calculating the minimum wages. The Facility Manager engaged by the Contractor shall fall under the category of ‘Semi-Skilled/Unskilled Supervisory’ (Area B) of workers employed, and all other staff engaged by the Contractor shall fall under the category of ‘Unskilled’ (Area B) of workers employed in “Construction or Maintenance of Roads or Runways or in Building Operations including laying down Underground electric, wireless, Radio, Television, Telephone, Telegraph and Overseas Communication cables and similar other Underground cabling work, Electric lines, Water supply lines and Sewerage pipe lines” as mentioned in the Government Order issued from the Office of the Chief Labour Commissioner(C) dated October 12, 2020. Revision of wages also, as and when announced by Govt. of India, for the Facility Manager and all other staff, will be with respect to the above categories only.
14. Whether reliever is required if the Facility Manager is on leave or unable to attend duty. Yes. The minimum number of duties as specified by the Bank must be fulfilled by the contractor. Alternate arrangements of relievers should be made by the contractor in cases where weekly holiday has to be given to any worker after doing duty continuously for 6 days and also in cases where a worker is on leave or unable to attend duty etc. to fulfill the minimum number of duties as required by the Bank on each day. Absence of workers to fulfill the minimum number of duties as required by the Bank will attract penalties as explained in clause 19 of section VII of the tender.
15. Whether hose, sprinklers etc to be used for watering / horticultural works comes under the scope of the contractor Yes. Hose, sprinklers etc to be used for watering / horticultural works comes under the scope of the contractor. The charges for the same shall be included in the amount to be quoted under serial number 4 of the financial bid.

The following amendments / corrigenda in this regard is notified:

1. The wordings and figures under Para “31.” Under “SECTION VII – TERMS AND CONDITIONS”, in page number 47 of 88, shall be replaced by the following:

“All the consumables, cleaning / gardening / waste management materials, tools, equipments, machinery, vehicle, cleaning agents, detergents, disinfectants, insecticides, pesticides, fungicides, manure etc. required to carry out the works specified in the tender including any additional soil required for horticulture, fuel required to operate any machinery / vehicle, accessories and protective gears / ID cards / uniforms etc. to be provided to the workers, etc. has to be procured by the contractor. The cost for the same also has to be borne by the contractor. The bank will not pay any extra amount for the same. The annual expense for the above should be included by the contractor in the financial bid of the tender under serial number 4. All the above items mentioned should also be eco-friendly and approved by the Bank.”

2. The wordings and figures under Para “36.” Under “SECTION VII – TERMS AND CONDITIONS”, in page number 47 of 88, shall be replaced by the following:

“The cost for any additional labour required to carry out any of the works specified in the tender or the payment for any overtime work / additional hours put in by the workers as per statutory requirements has to be borne by the contractor. The bank will not pay any extra amount for the same. The annual expense likely to be incurred for the same may be included by the contractor in the financial bid of the tender under serial number 3.”

3. The wordings and figures under Para “8.11” under “III) WASTE MANAGEMENT WORKS”, in page number 73 of 88, under “SECTION VIII – DETAILED SCOPE OF WORK” shall be replaced by the following:

“The operation of Organic Waste Converter must be carried out daily, strictly adhering to the manufacturer’s instruction to operate the machine. The consumables like bioculum, sani treat, saw dust etc. and other equipments and materials required to operate the same must be procured by the contractor and at his own cost. The annual charges for the same may be included by the contractor in serial number 4 of financial bid of the tender.”

4. The wordings and figures under Para “8.19” under “III) WASTE MANAGEMENT WORKS”, in page number 73 of 88, under “SECTION VIII – DETAILED SCOPE OF WORK” shall be replaced by the following:

“The charges for disposal of all kinds of wastes, outside the Bank’s premises strictly adhering to the extant laws, shall be included under serial number 5 of the financial bid. No extra payment shall be made by the Bank for disposal / removal of any waste materials from the Bank’s premises, at any cost.”

16. Whether payment of EPF, ESI, Bonus etc. is mandatory Yes. Contractor is responsible for payment of all statutory components of the wages of all his workers. All statutory benefits like EPF, Bonus, ESI, and other statutory payments etc. have to be paid by the Contractor and the proof for the same have to be submitted along with the bills.

The following amendments / corrigenda in this regard is notified:

1. The wordings and figures under Para “2.4.”, under “Section – II – General Instructions regarding Technical and Financial bids”, “2. PART- II (Financial bid)”, in page number 14 of 88, shall be replaced with the following:

“Financial Bids not conforming to the statutory obligations like Minimum Wages, EPF, ESI, Bonus, Leave Relief etc. are liable to be rejected. The charges for the same shall be included under serial number 3 of the financial bid.”

17. Whether Client certificate, solvency certificate, Performance bank Guarantee etc. have to be submitted Client certificate, solvency certificate, Performance bank Guarantee etc. must be submitted as specified in the tender document.
18. Which all machinery has to be used by the contractor The contractor has to use all the machinery which are required to carry out the works specified under “SECTION VIII – DETAILED SCOPE OF WORK” of the tender document, completely and efficiently. The charges for the machinery shall be included under serial number 4 of the financial bid. All the machinery required for carrying out the various works of the contract should be eco-friendly, branded and approved by the Bank and shall be procured by the Contractor/agency at its own cost. Bank will have the right to insist the contractor to use specific machinery for various works under the scope of the contract. The Bank will also have the right to monitor the quality and usage of all equipments, machinery, other materials etc. and also penalize the contractor for usage of any sub-quality items or insufficient / improper / inappropriate usage of such items. A tentative / indicative list of machinery to be used are given below:

a. Scrubbing Machine
b. Jet Wash
c. Lawn mower
d. Water pumps
e. Pesticide spray pump
f. Power saw
g. Grass Cutter

19. Whether any relaxation in EMD available for NSIC / MSME / MSE registered agencies No.

The meeting concluded by 12 Noon.

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Reserve Bank of India – Tenders

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Reserve Bank of India, New Delhi invites applications for stitching of uniforms for its employees. Tender may be downloaded from RBI website www.rbi.org.in from February 27, 2021 to March 20, 2021. The duly filled tender documents must be submitted on or before 02:00 pm on March 26, 2021 at the following address-

Human Resources Management Department,
Reserve Bank of India
6, Sansad Marg
New Delhi-110001

Note: Any corrigendum(s) to the tender shall be published only on the above website.

Regional Director
New Delhi

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AKBEF says will take direct action if salary of CSB Bank employees is not revised

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The All Kerala Bank Employees’ Federation (AKBEF) has urged the management of CSB Bank to immediately give effect to revision in wages, service conditions and payment of arrears to its employees in accordance with the 11th Bipartite Industry-wide Settlement.

In the event of delay in/denial of the implementation of the 11th Bipartite Settlement, the Federation will take direct action, including strikes, not only by the employees of CSB Bank, but also by the employees of all other Banks in Kerala under the banner of the All India Bank Employees’ Association, CD Josson, AKBEF General Secretary, said.

He observed that there were no valid reasons to delay/deny revision in wages, service conditions and payment of arrears in accordance with the 11th Bipartite Settlement for the employees of the CSB Bank.

Referring to the impressive growth in the Thrissur (Kerala) headquartered CSB Bank’s third quarter business, Josson emphasised that employees’ role in enhancing the goodwill of the Bank and expanding the business is very much evident. “It is the responsibility of any professional and progressive Management to acknowledge and recognise this efficient and productive role of the employees appropriately,” he said.

The Bank had 3,204 employees on its rolls as on March-end 2020. In the third quarter conference call with analysts’, CVR Rajendran, MD & CEO, CSB Bank, said, “Year on year head count has increased by 760, with CTC (cost-to-company) employees increasing by 997 and IBA (scale) employees reducing by 237. CTC employees now account for 59 per cent of the workforce.”

Rajendran then told the analysts that if the voluntary retirement scheme (VRS) is implemented and the 223 eligible clerical and sub-staff cadre opt for it, the Bank will have to make additional provision of around ₹80 crore in the next (fourth) quarter – around ₹12 crore on account of ex-gratia payment and rest on account of acceleration of retirement benefit payments.

“But in the subsequent years, we will be benefitted in the form of lower salary cost. Depending on the number of optees, the amount will vary. For each employee opting for VRS, we will be in a position to replace them with at least 3 employees,” he said.

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5 Public & Private Sector Banks Providing Up To 7% Returns On 1 Year FD

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How can I enhance my FD returns?

For Indian customers, fixed deposits are one of the most prominent deposit schemes. High interest rates with tenure ranging from 7 days to 10 years make it the perfect option for both short- and long-term investors. The prominence of FDs has risen slowly over time as more people understand the opportunity for better returns from this financial asset. If you glance at, as opposed to stock markets or mutual funds, the purpose of FDs is to get better returns in a reasonably risk-averse manner. Laddering deposits are a form of stretching the capital through several fixed deposit accounts in order to receive higher returns while earning liquidity at periodic intervals. Laddering deposits simply divide the deposits into separate ‘ladders’ as the name implies. A multitude of advantages not restricted to simple liquidity are offered by laddering deposits. At its essence, this technique will allow you to take the helm of your capital. Laddering your deposits will enable you to prevent early withdrawal misfortunes. In particular, when you decide for premature withdrawal, banks may owe a certain additional charge. You should also search for multiple opportunities to invest in the market by laddering deposits. You may invest in any other financial instrument that promises better returns. Laddering does not benefit much to get better returns in a click, but it will definitely make sure the returns are stable. Laddering is suitable for elderly people who have a lump sum of money to invest, so that they can expect regular returns on a monthly, quarterly, or other periodic basis. In the long term, though, laddering is more likely to have higher returns than in the short-term.

Tips to pick the best fixed deposit scheme

Tips to pick the best fixed deposit scheme

To get the highest returns on your investment, you need to determine the best Fixed Deposit (FD) scheme. In order to select the best FD scheme, before opting for a term deposit, you need to weigh certain variables. Factors such as interest rate charged, the legitimacy of the bank or financial institution providing the FD, overall return and so on are prudent to remember. Banks and non-banking financial companies (NBFCs) both provide fixed deposit schemes to the eligible investors. In contrast to banks, NBFCs or corporate FDs typically offer a higher rate of interest on fixed deposit. Among the most searched after saving accounts for investors is bank fixed deposits as they fetch higher returns compared to savings accounts. In contrast with corporate fixed deposits, bank fixed deposits usually pay lower interest rates but fetch guaranteed returns with insurance cover benefit. The considerations to remember while applying for an FD are as follows:

  • The rate of interest charged is one of the most critical considerations to remember when selecting an FD scheme. All investors should compare FD interest rates and pick the best alternative.
  • Don’t just pick the FD that bears a higher interest rate. There are other aspects that need to be taken into consideration as well, such as the legitimacy of the bank or company providing the term deposit. Ideally, select schemes with a ‘A’ ranking and accept scores from organisations such as ICRA and CRISIL if you consider opting for company deposits.
  • The period over which the deposit is kept is another factor deciding your investment’s return. If you want to reinvest the interest you receive, you would get a significantly higher overall return against your deposit.
  • Check if the FD you’re considering offers a number of interest payout alternatives. Have a peek at the interest payout frequency which typically ranges from monthly, quarterly, annually or half-yearly basis.

An important note for FD investors

An important note for FD investors

At its most recent monthly monetary meeting, held from 3 to 5 February 2021, the Reserve Bank of India (RBI) agreed to hold the repo rate untouched once again. The reserve bank has maintained the main rates steady for the fourth time in a row. The repo rate and reverse repo rate, despite the declaration, stand at 4% and 3.35%, respectively. The RBI was allowed to hold the repo rate unchanged in order to keep a cap on government bond yields, which are projected to increase due to stronger borrowings anticipated by the government in FY 2021-22. The probability of a significant decrease in borrowers’ loan equated monthly instalments (EMIs) is weaker unless the central bank does not adjust the repo rate and reverse repo rate. No adjustment in policy rates, on the other extreme, indicates best wishes for fixed deposit (FD) holders as banks are unlikely to further slash interest rates on FDs.

1 Year FD Rates

1 Year FD Rates

Private banks are now promising one-year FDs at a rate of 6.5 per cent. For one-year FDs, IndusInd Bank and RBL Bank, for example, provide 6.5 per cent interest rates. There are higher interest rates than those proposed by public sector banks. In contrast to large private banks, small finance banks pay higher interest rates. On one-year FDs, AU Small Finance Bank and Ujjivan Small Finance Bank pay 5.50 and 6.50 per cent interest, respectively. To know more about small finance bank FD rates, click here. On one-year FDs, major private banks such as ICICI Bank and HDFC Bank bid 4.90 per cent interest. Axis Bank is reportedly offering a 5.15 per cent interest rate. On a one-year FD, Kotak Mahindra Bank pays 4.50 per cent, the lowest rate across private banks. On one-year FDs, public sector banks like Union Bank, Punjab & Sind Bank and Bank of India pay 5.25 per cent interest. For their one-year FDs, State Bank of India (SBI) and Bank of Baroda (BOB) provide 5 per cent and 4.90 per cent interest, respectively.

Private Sector Banks 1 Year FD Rates In % For Non-Senior Citizens 1 Year FD Rates In % For Senior Citizens
IndusInd Bank 6.5 7
RBL Bank 6.5 7
Yes Bank 6.25 6.75
DCB Bank 6.05 6.55
Bandhan Bank 5.75 6.5
Public Sector Banks 1 Year FD Rates In % For Non-Senior Citizens 1 Year FD Rates In % For Senior Citizens
Bank of India 5.25 5.75
Punjab & Sind Bank 5.25 5.75
Union Bank 5.25 5.75
Canara Bank 5.2 5.7
Indian Overseas Bank 5.15 5.65



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List Of Banks Providing The Cheapest Interest Rates On Gold Loans Starting From 7%

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Gold loan eligibility

You must make sure to follow the eligibility requirements stated by the lender if you want to take advantage of a loan against your gold jewellery or ornaments. Bear in mind that eligibility conditions differ from one lender to the next. Therefore, before applying for a gold loan, it is prudent to review the eligibility conditions stated on the lender’s official site. The below are the standard eligibility requirements:

  • The minimum age limit of the applicant must be 18 years or above
  • To pledge it as security, he or she must have gold ornaments or articles
  • The maximum carats of gold that can be pledged must be at least 18 carats.
  • The applicant must have the acceptable credit score for taking a gold loan.

Documents required for a gold loan

Documents required for a gold loan

The following documents must usually be provided by the claimant in order to take advantage of the gold loan:

  • Duly filled loan application form
  • Two recent passport size photographs
  • Form 60 or PAN card
  • Identity proof: Driving license, Aadhaar Card, ration card, PAN Card
  • Address proof: Aadhaar card, voter id card, electricity bill, telephone bill, etc.
  • Signature Proof

Key benefits of taking a gold loan

Key benefits of taking a gold loan

A gold loan can be used to cover a range of emergency cash needs, namely hospital expenses, schooling of your child, family holidays and so on. If you’re in a bind and need money right then, you should use the wonderful gold in your vault to cover your immediate financial requirements. Gold loans are available from a number of banks and non-banking financial companies (NBFCs). This loan is among the cheapest and most hassle-free options to get immediate cash. To know more about the benefits read out the below-listed facts:

  • Because gold loans are supported by physical gold, lenders typically process the loan faster, so borrowing against gold is secure for banks and if you fail, they have the ability to sell the gold.
  • The gold pledged to the bank or the financial institution serves as the security or collateral against which the loan amount is credited to the applicant. Gold loans have a spectacular aspect in that the applicant can pay only the interest portion of the loan and the principal balance can be repaid at the time of the loan’s closure.
  • Banks offer lower interest rates on secured loans than on unsecured loans like personal loans because they are secured.
  • Most of the NBFCs and banks do not impose processing costs because these loans are issued immediately in favour of gold retained by the lender as security.
  • Most of the banks impose a prepayment penalty of 1 per cent only.
  • Because the loan is guaranteed against the gold to be held with the bank, most lenders do not need income proof.
  • In comparison to other loans, where the loan amount is calculated based on the borrower’s potential to reimburse and credit score, the circumstance with gold loans is specific. As the gold is used as security, the lenders are not bothered with the key factor and therefore do not verify the borrower’s creditworthiness.

Things to consider while applying for a gold loan

Things to consider while applying for a gold loan

A few factors that you must evaluate when applying for a gold loan are mentioned below:

  • The amount of the loan you get will be dependent on the worth of the gold you vow when you take advantage of a gold loan. A minimum and maximum loan amount could also have been specified by lenders. If you need a specific loan amount, please ensure you have the appropriate gold and that it falls under the lender’s guidelines.
  • The interest rate charged on a gold loan is lower than opposed to an unsecured loan, as the investor will have to provide security. This being said, the interest rate levied will differ from lender to lender, and comparing the interest rates charged by various lenders will be the best approach.
  • Lenders can impose a variety of other fees in comparison to the interest rate, such as processing fees, documentation fees, appraiser fees, default payment fees, overdue loan fees, etc. These costs, together, can increase the overall cost of the loan. Thus, make sure that before applying for a gold loan, you take into consideration the charges charged by the lender.
  • The repayment period on gold loans will be anywhere between three to 36 months. You should also be careful to take the repayment potential into account and choose a gold loan with an acceptable tenure.
  • Before applying for a loan, it is generally advised that you compare the attributes, advantages, and terms and conditions of the gold loans provided by various lenders.
  • To maximise the likelihood of your loan application being accepted, before applying for the loan, you must review the eligibility conditions of the lender.

Gold Loan Interest Rates

Gold Loan Interest Rates

Below are the cheapest interest rates on Rs 5 lakh gold loans availed for a three-year term presently promised by some of the leading banks. Please bear in mind that your interest rate can vary depending on the amount of your loan, the period of your loan, or any other terms and conditions imposed by the bank or NBFC.

Sr No. Banks ROI in % per annum
1 Punjab & Sind Bank 7
2 Bank of India 7.35
3 State Bank of India 7.5
4 Canara Bank 7.65
5 Union Bank 8.2
6 Karnataka Bank 8.37
7 Indian Bank 8.5
8 UCO Bank 8.5
9 Federal Bank 8.5
10 Punjab National Bank 8.75
11 J&K Bank 8.85
12 Central Bank 9.05
13 Indian Overseas Bank 9.25
14 HDFC Bank 9.5
15 Bank of Baroda 9.6
16 Dhanlaxmi Bank 9.7
17 Karur Vysya Bank 10.1
18 ICICI Bank 11
19 South Indian Bank 11.95
20 Axis Bank 12.5

Note

Note

For loans approved by banks against the promise of gold ornaments and jewellery for non-agricultural reasons -, the allowable loan-to-value (LTV) ratio was raised to 90%. Only loans approved before March 31, 2021, will be eligible for the change. The former LTV cap of 75 per cent will apply to gold loans sanctioned on or after April 1, 2021. Banks will now lend up to 90 per cent of the amount of the gold ornaments that individuals have promised to them, compared to 75 per cent previously.



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RBI gives 3-month extension to Rupee Cooperative Bank

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The bank has taken steps such as attachment of properties of defaulter borrowers and public auctions of the same, filing criminal suits against defaulter borrowers/guarantors, etc for recovery.

The Reserve Bank of India (RBI) has granted a further three-month extension of its banking licence to the Rupee Cooperative Bank (RCB), Pune, till May 31, 2021. Till January 2021, the bank made total recovery of Rs 258.11 crore, and aggregate operating profit of Rs 53.19 crore in the last four years, Sudhir Pandit, chief administrator of the board of directors, said.

As on January 31, 2021, total deposit of the bank stood at Rs 1,292.84 crore. Total advances were at Rs 295.10 crore. Up to January 31, 2021, the bank made an operating profit of Rs 19.93 crore and paid Rs 366.54 crore to 92,602 depositors under the Hardship Scheme, officials said.

The bank has taken steps such as attachment of properties of defaulter borrowers and public auctions of the same, filing criminal suits against defaulter borrowers/guarantors, etc for recovery. The bank has also informed the names of its defaulter borrowers/guarantors to other banks for effective recovery, he said. Pandit said the bank has been earning operating profit since the last five years.

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Reliance partners Google, Facebook in seeking NUE licence from RBI, BFSI News, ET BFSI

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Mumbai: Reliance has partnered Google and Facebook to set up a New Umbrella Entity (NUE) that will allow them to create a payment network similar to the Unified Payments Interface (UPI) to gain a share of India’s burgeoning digital payments market. The NUE will be jointly promoted by an RIL unit and Infibeam Avenue subsidiary So Hum Bharat. Facebook and Google will hold smaller stakes. The companies are in advanced stages of submitting their proposal to the RBI, three people with knowledge of the matter told ET.

Deadline extended to March 31

Former Itzcash founder and payment industry veteran Navin Surya has been appointed MD and chief executive, said the people cited above. Reliance, Google and Facebook didn’t respond to queries. “We are bound by the confidentiality of the process and cannot comment,” an Infibeam Avenues spokesperson said. “A proposal will be presented to the Reserve Bank of India on detailing the consortium’s plan to strengthen India’s digital economy,” said one of the people with knowledge of the matter. “Representatives of these companies have been in talks with the central bank over the past few months to ensure compliance ahead of the formal presentation of the bid.”

The RBI is expected to take another six months to study the proposal along with other bids. RBI said Friday that the deadline to submit applications had been extended to March 31, following a plea by the Indian Banks’ Association. ET had reported on February 19 that the regulator may consider extending the deadline, keeping in mind Covid-related disruptions.



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IOB signs corporate agency pact with SBI General Insurance, BFSI News, ET BFSI

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Public sector Indian Overseas Bank has signed a corporate agency agreement with SBI General Insurance to retail its insurance products to bank customers, a top official said on Friday. Indian Overseas Bank has signed a bancassurance agreement for distribution of non-life offerings with SBI General Insurance to offer a range of general insurance solutions and innovative products to the customers of the bank.

“we are delighted to partner with one of the leading players in general insurance businesses-SBI General Insurance. We will efficiently nurture it to be a long running mutually beneficial relationship”, the bank’s Managing Director Partha Pratim Sengupta said.

The tie-up would help expand the bouquet of insurance product to customers, Gupta, who is also the CEO, said.

The partnership would improve penetration in urban, tier II and III markets and also create awareness about personal lines of insurance to customers, Sengupta said.

Indian Overseas Bank has over 3,200 branches across the country and also has a presence overseas.



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