Reserve Bank of India – Press Releases

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April 14, 2015





Dear All




Welcome to the refurbished site of the Reserve Bank of India.





The two most important features of the site are: One, in addition to the default site, the refurbished site also has all the information bifurcated functionwise; two, a much improved search – well, at least we think so but you be the judge.





With this makeover, we also take a small step into social media. We will now use Twitter (albeit one way) to send out alerts on the announcements we make and YouTube to place in public domain our press conferences, interviews of our top management, events, such as, town halls and of course, some films aimed at consumer literacy.




The site can be accessed through most browsers and devices; it also meets accessibility standards.



Please save the url of the refurbished site in your favourites as we will give up the existing site shortly and register or re-register yourselves for receiving RSS feeds for uninterrupted alerts from the Reserve Bank.



Do feel free to give us your feedback by clicking on the feedback button on the right hand corner of the refurbished site.



Thank you for your continued support.




Department of Communication

Reserve Bank of India


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Top 5 Banks Currently Promising Higher Returns On FDs

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DCB Bank

DCB Bank has updated its fixed deposit interest rates which are in force from February 5, 2021. For a period of 7-14 days, the revised rate of interest is 4.25 percent; for 15-45 days it is 4.80 percent; for 46-90 days it is 4.75 percent; for 91 days to 6 months it is 5.50 percent; and for 6-12 months it is 5.95 percent. Senior citizens will get an additional 0.50 percent interest rate on their deposits across all the tenure.

Tenure Regular FD Rates Senior Citizen FD Rates
7 days to 14 days 4.25% 4.75%
15 days to 45 days 4.80% 5.30%
46 days to 90 days 4.75% 5.25%
91 days to less than 6 months 5.50% 6.00%
6 months to less than 12 months 5.95% 6.45%
12 months to less than 15 months 6.05% 6.55%
15 months to less than 18 months 6.35% 6.85%
18 months to less than 700 days 6.50% 7.00%
700 days 6.70% 7.20%
More than 700 days to less than 36 months 6.50% 7.00%
36 months 6.75% 7.25%
More than 36 months to 60 months 6.75% 7.25%
More than 60 months to 120 months 6.75% 7.25%

Yes Bank

Yes Bank

Yes Bank offers fixed deposit schemes with terms ranging from seven days to ten years. On February 8, 2021, the bank adjusted the interest rate on its term deposits. Yes Bank now proposes an interest rate of 3.50 percent on deposits maturing in seven to fourteen days, 4 percent on deposits maturing in 15 to 45 days, and 4.5 percent on FDs maturing in 46 to 90 days, after the most recent adjustment. On term deposits maturing in 3 months to less than 6 months and 6 months to less than 9 months, Yes Bank offers 5%, 5.5 percent, and 6%, respectively. The Bank offers a 5.75 percent interest rate on FDs for a maturity period of 9 months or less than one year.

Tenure Regular FD Rates Senior Citizen FD Rates
7 to 14 days 3.50% 4.00%
15 to 45 days 4.00% 4.50%
46 to 90 days 4.50% 5.00%
3 months to 5.00% 5.50%
6 months to 5.50% 6.00%
9 months to 5.75% 6.25%
1 years 6.25% 6.75%
2 years 6.50% 7.00%
3 Years to 6.75% 7.50%

IndusInd Bank

IndusInd Bank

The interest rate on IndusInd bank’s term deposits has been updated as of April 26th, 2021. Following the most recent revision, IndusInd Bank now provides 2.75 percent on deposits maturing in 7-30 days, 3.00 percent on deposits maturing in 30-45 days, 3.50 percent on deposits maturing in 46-60 days, and 3.75 percent on deposits maturing in 61-90 days. Deposits maturing in 91 to 120 days will now yield 4.00 percent interest, 4.5 percent interest between 121 to 180 days, and 5.00 percent in 181 to 210 days. IndusInd Bank offers a 5.25 percent interest rate on FDs with a maturity period of 211 to 269 days, and a 6.00 percent interest rate on FDs with a maturity period of 270 days to less than 1 year.

Tenure Regular FD Rates in % Senior Citizen FD Rates in %
7 days to 14 days 2.75 3.25
15 days to 30 days 2.75 3.25
31 days to 45 days 3 3.5
46 days to 60 days 3.5 4
61 days to 90 days 3.75 4.25
91 days to 120 days 4 4.5
121 days to 180 days 4.5 5
181 days to 210 days 5 5.5
211 days to 269 days 5.25 5.75
270 days or 354 days 5.5 6
355 days or 364 days 6 6.5
1 Year to below 1 Year 6 Months 6.5 7
1 Year 6 Months to below 1 Year 7 Months 6.5 7
1 Year 7 Months to below 2 Years 6.5 7
2 years to below 2 years 6 Months 6.5 7
2 years 6 Months to below 2 years 9 Months 6.5 7
2 years 9 Months to below 3 years 6.5 7
3 years to below 61 months 6.5 7
61 months and above 6.25 6.75
Indus Tax Saver Scheme (5 years) 6.5 7

RBL Bank

RBL Bank

RBL Bank has recently revised fixed deposit interest rates which are in force from April 12, 2021. RBL Bank now provides 3.25 percent on FDs maturing in 7-14 days, 4.00 percent on FDs maturing in 15-45 days, and 4.50 percent on FDs maturing in 46-90 days as a result of the revision. FDs maturing in 91 days to 180 days yield 5.00 percent interest, whereas deposits maturing in 180 days to 240 days yield 5.25 percent interest. RBL Bank pays 5.50 percent interest on deposits for a maturity period of 241 to 364 days. Long-term deposits with a term of two years or less than three years yield 6.25 percent interest rate. RBL Bank offers a 6.40 percent interest rate on three- to five-year FDs. The bank is currently offering a 6.00 interest rate on FDs maturing in 60 months to less than 120 months and 120 months to 240 months. RBL Bank provides 0.50 percent higher rates to senior citizens than the general public. As a result senior citizens will get interest rates ranging from 3.75% to 7.10% respectively. The below listed rates are applicable on deposit amount of less than Rs 3 Cr.

Tenure Regular FD Rates in % Senior Citizen FD Rates
7 days to 14 days 3.25% 3.75%
15 days to 45 days 4.00% 4.50%
46 days to 90 days 4.50% 5.00%
91 days to 180 days 5.00% 5.50%
181 days to 240 days 5.25% 5.75%
241 days to 364 days 5.50% 6.00%
12 months to less than 24 months 6.25% 6.75%
24 months to less than 36 months 6.25% 6.75%
36 months to less than 60 months 6.40% 6.90%
60 months to 60 months 1 day 6.60% 7.10%
60 months 2 days to less than 120 months 6.00% 6.50%
120 months to 240 months 6.00% 6.50%
Tax Savings Fixed Deposit (60 months) 6.60% 7.10%

Axis Bank

Axis Bank

With effect from March 18, 2021, Axis Bank has updated its interest rates on fixed deposits (FDs). Following the most recent revision, Axis Bank now offers 2.50 percent interest on FDs maturing between 7 and 29 days, 3% for FDs maturing between 30 days and less than 3 months, and 3.5 percent for FDs maturing between 3 months and less than 6 months. Axis Bank offers a 4.40 percent interest rate on FDs maturing in six months or less than eleven months and twenty-five days. 5.15 percent for 11 months 25 days to less than 1 year 5 days, and 5.10 percent for 1 year 5 days to less than 18 months Axis Bank pays 5.25 percent interest on term deposits that mature in 18 months or less than two years. On select maturities, Axis Bank provides senior citizens an additional rate of 0.50% higher than the general public. For deposits maturing in 7 days to 10 years, senior citizens will receive interest rates ranging from 2.5 percent to 6.50 percent respectively.

Tenure Regular FD Rates in % Senior Citizen FD Rates in %
7 days to 14 days 2.5 2.5
15 days to 29 days 2.5 2.5
30 days to 45 days 3 3
46 days to 60 days 3 3
61 days 3 3
3 months 3.5 3.5
4 months 3.5 3.5
5 months 3.5 3.5
6 months 4.4 3.5
7 months 4.4 4.65
8 months 4.4 4.65
9 months 4.4 4.65
10 months 4.4 4.65
11 months 4.4 4.65
11 months 25 days 5.15 4.65
1 year 5.15 5.4
1 year 5 days 5.1 5.8
1 year 11 days 5.1 5.75
1 year 25 days 5.1 5.75
13 months 5.1 5.75
14 months 5.1 5.75
15 months 5.1 5.75
16 months 5.1 5.75
17 months 5.1 5.75
18 Months 5.25 5.9
2 years 5.4 6.05
30 months 5.4 5.9
3 years 5.4 5.9
5 years to 10 years 5.75 6.5



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Credit costs to remain elevated for NBFCs: CARE Ratings

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Credit rating agency CARE Ratings expects credit costs to remain elevated for non-banking finance companies (NBFCs) in FY22 amid the second wave of Covid-19 pandemic.

For FY22, CARE Ratings expects a level of stress, especially in the loan portfolio under restructuring and those which were under moratorium, the impact is likely to be visible in the next one year.

“As such, delinquencies are estimated to rise moderately,” according to a report by the credit rating agency.

The agency observed that NBFCs have been grappling with a succession of uncertain events since 2016 — demonetisation, Goods and Service Tax (GST) implementation, liquidity crisis in 2018 and Covid-19 pandemic in 2020.

These uncertain events derailed growth, disrupted collections and increased loan loss provisioning across asset classes.

Financial metrics

“From Q4 (January-March) FY20, credit costs across major NBFC sub-segments reported substantial increase and has remained at elevated levels. This affected the financial metrics for H1 (April-September) FY21 negatively,” the report said.

Also read: FIDC seeks relief measures in wake of second Covid wave

The agency assessed that after September 2020, the economy re-opened with signs of revival which led to improvement in the sector, collections inched closer to pre-Covid levels and growth gathered momentum. But the second wave of Covid-19 has pulled back the recovery gains with subsequent impact on asset quality.

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Reserve Bank of India – Press Releases

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In the underwriting auctions conducted on April 30, 2021 for Additional Competitive Underwriting (ACU) of the undernoted Government securities, the Reserve Bank of India has set the cut-off rates for underwriting commission payable to Primary Dealers as given below:

(₹ crore)
Nomenclature of the Security Notified Amount Minimum Underwriting Commitment (MUC) Amount Additional Competitive Underwriting Amount Accepted Total Amount underwritten ACU Commission Cut-off rate
(paise per ₹100)
3.96% GS 2022 3,000 1,512 1,488 3,000 0.87
5.85% GS 2030 14,000 7,014 6,986 14,000 17.43
6.76% GS 2061 9,000 4,515 2,630 7,145 34.43
Auction for the sale of securities will be held on April 30, 2021.

Rupambara
Director    

Press Release: 2021-2022/137

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Banks roll out special schemes to protect, treat employees amidst Covid surge

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With bank employees continuing to service customers at branches amidst surging Covid-19 cases, banks have initiated special measures to ensure their safety and provide medical help.

With daily Covid -19 caseload at over three lakh, lenders have rolled out more measures this time around, than last year beyond, rostering of employees and limiting banking hours to 10 am to 2 pm.

“We are using a lot of analytics to identify containment areas, high risk areas and are using Artificial Intelligence and Machine Learning for rostering of employees. We are shifting transactions digitally. We have to understand that the number one priority is to keep everybody safe,” said Anup Bagchi, Executive Director, ICICI Bank.

HDFC Bank has converted three of its training centres based out of Bhubaneswar, Pune, and Gurugram into isolation facilities for Covid positive employees.

“These facilities have been equipped with first line assistance and will have round the clock nurses and visiting doctors. Immediate medical help from a nearby hospital will be made available if required,” it said in a recent statement.

Last week, Axis Bank released a detailed four-page document ‘With You’ that lists helpline numbers, resources, and confidential counselling services for employees and their dependents.

“Our current focus is on employee health and safety. At the start of the crisis last year, we had taken a call that we would transition to a hybrid work model. In regions we are calibrating presence in response to regulatory guidance and implementing rostering where WFH is not feasible,” said Rajkamal Vempati – EVP and Head, Human Resources, Axis Bank.

Bankers point out that while banking is an essential service, bank employees are not treated as frontline workers.

“It is an extremely unfortunate situation. Had bankers been able to get vaccinated, many of the deaths would have been prevented,” Soumya Datta, General Secretary, All India Bank Officers’ Confederation.

Industry estimates peg that there have been about 1,000 Covid-19 related deaths and lakhs bank employees being infected.

“We are an essential services… we are all exposed (to customers). We don’t have the luxury. But we are not allowed vaccinations, not allowed to board trains, not allowed to board buses. So, what kind of essential services we are? More push should be there,” Bagchi had told reporters in a media call on April 29.

The Indian Banks’ Association has advised banks to curtail working hours and also said that they should only carry out essential services at branches including cash deposits and withdrawals, clearing of cheques, remittances and government transactions.

But Datta said many states are yet to allow this move. He also pointed out that about 30 per cent bank branches in the country are single officer branches. In such branches, it is difficult to do rostering as there is no back up officer available.

Earlier this month, the Finance Ministry had written to the Ministries of Home Affair and Health and Family Welfare for vaccination against Covid-19 of employees of all banks and the National Payments Corporation of India, irrespective of their age, on an urgent basis.

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Shriram Housing Finance to provide free vaccination to customers, BFSI News, ET BFSI

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In an industry first, mortgage lender Shriram Housing Finance has decided to provide free vaccination to its 20,000 affordable housing customers. The company would roughly spend Rs 1000 per loan as vaccination cost and would cover two members in a family. It estimates to spend nearly Rs 2 crore to provide free vaccination to its customers.

The mortgage lender had earlier announced that it would bear the vaccination cost of its employees.

“Customers in the affordable housing space are not very well off and for them even the small sum to be incurred in vaccination through private players can become a big deterrent, this in turn can derail the vaccination drive,” said Ravi Subramanian, MD, Shriram Housing Finance. “We would be reaching out to all customers with details of this program.”

Several banks including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank have said that they would bear the vaccination cost of employees.

State Bank of India has set up an internal task force to extend immediate assistance to its members.

A Quick Response Team (QRT) headed by a General Manager has been set up at Corporate Centre for monitoring the COVID position at the whole Bank level,” said Rana Ashutosh Kumar Singh, DMD (HR) & Corporate Development Officer, SBI. “Similar teams headed by Deputy General Managers have been set up in all 17 Circles for monitoring the COVID situation in their area and providing assistance to staff and their family members.”

HDFC Bank has converted its training centres in Pune, Bhubaneswar and Gurgaon into isolation centres to deal with Covid-19-related emergencies for employees with symptoms. The bank has also tied up with hotels across the country for rooms.

Some banks have started tying up with doctors who could guide employees in dealing with their Covid-19-related fears. About 1.5 million people are employed across Indian banks.



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Reserve Bank of India – Press Releases

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The Reserve Bank of India vide directive DCBS.CO.BSD-I/D-3/12.22.163/2018-19 dated October 26, 2018 had placed The Needs of Life Co-operative Bank Ltd, Mumbai under Directions from the close of business on October 29, 2018 for a period of six months. The validity of the directions was extended from time-to-time, the last being up to April 30, 2021.

2. It is hereby notified for the information of the public that the Reserve Bank of India, in exercise of powers vested in it under sub-section (1) of Section 35 A read with Section 56 of the Banking Regulation Act, 1949, hereby directs that the aforesaid Directions shall continue to apply to the bank till October 31, 2021 as per the directive DOR.MON/No.D-06/12.22.160/2021-22 dated April 26, 2021, subject to review.

3. All other terms and conditions of the Directives under reference shall remain unchanged. A copy of the directive dated April 26, 2021 notifying the above extension is displayed at the bank’s premises for the perusal of public.

4. The aforesaid extension and /or modification by the Reserve Bank of India should not per-se be construed to imply that Reserve Bank of India is satisfied with the financial position of the bank.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/136

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SBI General Insurance FY21 net profit rises 32%

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SBI General Insurance reported a 32 per cent increase in its net profit to ₹544 crore in 2020-21 as against ₹412 crore in the previous fiscal.

Its gross written premium (GWP) also grew 22 per cent to ₹8,312 crore last fiscal from ₹6,840 crore in 2019-20.

Solvency ratio was 2 in 2020-21 versus 2.27 in 2019-20. Combined ratio was 99.8 per cent last fiscal as against 98 per cent in the previous fiscal.

“SBI General’s corporate growth was primarily led by its expansive pan-India reach enabled by the increasing number of distribution partners in bancassurance, OEM tie-ups and digital integration like Indian Overseas Bank, Yes Bank, KIA Motors, Honda Siel Cars, Ford Motors, Tata Motors Pvt. Ltd., TVS Motors, Royal Enfield, Suzuki Motor Cycles, Jeep, Railyatri,” it said in a statement on Friday.

The private sector general insurer has also enhanced its customer base by more than three crore customers during 2020-21. The cumulative number of customers served till date adds up to about 8.7 crore, it said.

“Fiscal year 2020-21 demanded special focus on the Health and SME lines, and we managed to maintain a balanced growth. We are also scaling up our product bouquet and adopting digital disruptions to offer instant insurance solutions even at the distributor part, for the ease of customers,” said PC Kandpal, MD and CEO, SBI General Insurance.

In its 11 years of operations, the company has shown steady growth for the past four years, while maintaining a positive track record of underwriting.

The company declared and paid an interim dividend of 10 per cent during 2020-21.

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Now Cashless Approvals For COVID ClaimsWithin 60 Minutes

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Insurance

oi-Sneha Kulkarni

|

The Insurance Regulatory and Development Authority of India (IRDAI) advised insurers on Thursday to make decisions on cashless COVID-19 care claims within 60 minutes of receiving the final bill so that the hospital bed can be easily made available to another patient in need.

This action by the regulator comes as a huge relief to policyholders at a time when the number of Covid-19 cases is rapidly increasing. Certain COVID-related lawsuits took a long time to resolve, causing the patient’s discharge to be delayed.

Now Cashless Approvals For COVID Claims Within 60 Minutes


In its 28.4.2021 Order, the High Court of New Delhi ordered IRDAI to advise insurers to communicate their cashless approvals to the concerned hospitals and establishments within a maximum time span of 30 to 60 minutes so that patients are not delayed in being discharged and hospital beds are not left unoccupied.

According to the IRDAI’s circular, insurers are advised to process such requests promptly, regardless of the time limits stated, so that both authorizations for cashless care and discharge of the patient can be expedited to the maximum extent possible.

The insurers have also been asked to give their respective Third Party Administrators (TPAs) the necessary instructions to ensure that the deadlines are met.

The government has set a ceiling on the cost of COVID-19 care in hospitals. However, not all hospitals adhere to these rates, and insurers prefer that the previously agreed-upon terms be followed.

GoodReturns.in



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Small Savings Schemes: Know TDS Rules On Withdrawals For IT Return Filers & Non-Filers

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Planning

oi-Vipul Das

|

New guidelines for tax deduction at source (TDS) on small savings schemes have been implemented by the government. TDS will be deducted from a withdrawal amount of more than Rs 20 lakh from post office schemes, including the PPF, if income tax returns for the previous three assessment years have not been submitted. TDS will be 2% of the amount withdrawn from Post Office schemes in a financial year that exceeds Rs 20 lakh. If the amount crosses Rs 1 crore, TDS will be applied at a rate of 5% on the excess amount. This rule of the Income Tax Act of 1961, Section 194N, is in force from July 2020. If you file an ITR, though, the rules are different. Where an ITR filer’s cash withdrawal in a financial year crosses Rs 1 crore. The amount above Rs 1 crore will be subject to a 2% income tax. TDS will be deducted only at the depositor’s Post Office, and the account holder will be notified in written of the deduction. Even if you apply Form 15H/G, a declaration that your income is below the exempted cap, you will be subject to TDS. Section 194N does not relate to 15G/15H declarations.

Small Savings Schemes: TDS Rules On Withdrawals For IT Return Filers/Non-Filers

Note

Cash withdrawals from a post office account have been restricted to only four transactions, according to the most recent India Post update. If you make more than four withdrawals, you will be charged 0.05 percent of the total amount on each transaction that exceeds the cap. Withdrawing Rs 25,000 annually from a savings or current account will incur no charges. Following that, each withdrawal will be subject to a minimum charge of Rs 25 or 0.5 percent of the overall amount withdrawn. There is no charge if you make a cash deposit of up to Rs 10,000 in a month. A deposit in every post office savings account of more than that amount, however, will impose a minimum of Rs 25. The withdrawal cap at Post Office GDS (Gramin Dak Seva) Branches are also increased, according to India Post. Now, the cap has been raised from Rs 5000 to Rs 20000 per account holder. The minimum mandatory amount to maintain an India Post savings account is Rs 500, and if the minimum standard is not satisfied, an Account Maintenance Fee of Rs 100 will be charged. The account will also be automatically terminated if there is no balance. On the IPPB platform, there are no limits on the number of free transactions, but non-IPPB (India Post Payment Bank) transactions are limited to three. The law applies to mini statements, cash withdrawals, and cash deposits. Each transaction will be subject to a charge once the free limit in the Aadhaar Enabled Payments System (AEPS) – India Post Payments Bank has been reached. Any deposit made after the threshold has been reached will be charged at Rs 20. You must pay Rs 5 to get a mini statement. A charge of 1% of the transaction amount, with a minimum of Rs 1 and a maximum of Rs 20 including GST and Cess will be charged if funds are transferred to another account after the cap is surpassed.



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