Author: root

Non-filers of ITR would be subjected to higher TDS & TCS from tomorrow: Check new rules here

Personal Finance

[ad_1]

Read More/Less


Taxes

oi-Vipul Das

|

For individuals who have failed to submit their income tax returns (ITR) for the last two years, the income tax department will apply a higher tax deduction at the source (TDS) rate starting from July 1. Sections 206AB and 206CCA of the Income-tax Act of 1961, which take effect on July 1, 2021, impose a higher TDS/TCS rate for “Specified Person” identified as “a person who has not filed the income tax returns or ITR for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be collected, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years,” according to the Notification No. 01 of 2021 of Central Board of Direct Taxes.

Non-filers of ITR would be subjected to higher TDS & TCS from tomorrow

The Income Tax Department has devised a new “Compliance Check” feature for Section 206AB & 206CCAn to enable tax deductors/collectors to determine if an individual is a “Specified Person” as defined by Section 206AB & 206CCA. This feature is accessible at (https:llreport.insight.gov.in) of the Income-tax Department. According to the recent extensions made by the Central Board of Direct Taxes (CBDT), taxpayers now have until July 15 to submit their TDS for the fourth quarter of the fiscal year 2020-21. Only at the beginning of the financial year, TDS deductors and TCS collectors are mandated to confirm the functioning of the PAN of the vendor from whom TDS or TCS is to be deducted or collected.

TDS rates will be higher than double the rate stated in the pertinent provision of the Income Tax Act, or double the rate or rates in effect, or at a rate of 5%, according to the new TDS regulation. If your overall TDS deduction in the previous year was less than Rs 50,000, or if you have filed your income tax return actively for the past two years, the rules of this section will not pertain to you. Furthermore, where TDS is required to be withheld on salary income (192), lottery income (194B), horse race income (194BB), PF income (192A), trust income (194LBC), and cash withdrawals (194N), the regulations of this section do not pertain.

Furthermore, this new TDS rule will not apply to NRIs who do not have a permanent establishment in India. In order to reduce the compliance burden of the tax deductor or collector the CBDT has also said that “For any further assistance, Tax Deductors & Collectors can refer to Quick Reference Guide on Compliance Check for Section 206AS & 206CCA and Frequently Asked Questions (FAQ) available under “Resources’ section of Reporting Portal. They can also navigate to the “Help” section of Reporting Portal for submitting a query or to get a call back from the Customer Care Team of the Income-tax Department. Customer Care Team of Income-tax Department can also be reached by calling on its Toll-Free number 1800 1034215 for any assistance.”

Story first published: Wednesday, June 30, 2021, 10:15 [IST]



[ad_2]

CLICK HERE TO APPLY

Leave a comment

NARCL may prompt existing ARCs to reorient their business: ARCIL Chief

Banking & Finance

[ad_1]

Read More/Less


 

The National Asset Reconstruction Company Ltd, (NARCL), which is slated to become the mother of all Asset Reconstruction Companies (ARCs), will prompt existing ARCs to change their business orientation and start focussing on buying the stressed retail and MSME assets, according to Pallav Mohapatra, MD & CEO, Asset Reconstruction Company (India) Ltd (ARCIL).

He emphasised that ARCs have a huge business opportunity to buy stressed assets aggregating about ₹1 lakh crore in the retail and micro, small and medium enterprise (MSME) segments.

Stressed assets with principal outstanding of ₹500 crore and above, aggregating about ₹2 lakh crore, are expected to be transferred by lenders to NARCL.

In an interaction with BusinessLine, Mohapatra, who was MD & CEO of Central Bank of India before taking the reins at ARCIL in March 2021, emphasised that there is enough scope for existing ARCs (28 at the last count) to buy stressed assets below ₹500 crore from Banks.

Excerpts

Will the setting up of NARCL, does not diminish the business prospects of existing ARCs?

NARCL’s mandate is basically to acquire stressed assets where the total exposure of the banking sector is more than ₹500 crore.

But I feel there is enough scope for getting the business (buying stressed assets) below ₹500 crore. As of today, most of the ARCs were playing in the big-ticket corporate stressed assets.

Now I feel they will change their orientation and start focusing on stressed retail and MSME assets where the size will increase in the backdrop of the Covid-19 pandemic. It (increase in size) will not be there in the case of corporates to a reasonably large extent. This is because, to a great extent, things have been sorted out. There will be a few cases but not as many as it used to be earlier. So, if the ARCs equip themselves with infrastructure, technology, and human resources skills to handle the stressed retail and MSME assets, that is going to be a very huge business opportunity for ARCs.

How big will the business opportunity be?

The business opportunity will be sufficiently large. The opportunity will be bigger than the total existing Assets Under Management (estimated at about ₹60,000 crore) of all the ARCs put together. This particular pool (of stressed retail and MSME assets) could be about ₹1 lakh crore.

Given that sale of stressed assets by banks to ARCs has been declining in the last couple of years, will ARCIL change tack?

We want to focus more on resolution and recovery of non-performing assets and earn income after some time rather than focusing on earning income from fees or some other structure.

If you look at the Profit & Loss accounts of ARCs, normally there are three channels of income — management fee income (for managing the acquired assets), interest income (arising from restructuring) and when ARCs can recover more than the face value of the Security Receipts, they get an upside income.

Our focus is to basically increase the proportion of the upside income. This will have beneficial effects — one is there will be a better churning of the capital in ARCs; second, they will also be earning income, with the upside income going straightaway to P&L; and third is it will be good for the economy as such because there will be recovery and resolution.

So, instead of focusing on earning management fees, which will cover our capital investment, we are looking at earning income, as far as possible, by doing resolution and recovery.

Banks want to sell stressed assets on all cash basis but capital could be constraint for ARCs. How do you deal with this situation?

Banks want all-cash deals because of the non-redemption of SRs. If they know that ARCs are going to redeem the SRs as well as give them upside income, why will they not sell their stressed assets for a mix of cash and SRs?

From the capital and availability of funds point of view, ARCIL doesn’t have a problem. Even if there is a funding gap, we always try to get some investor. If we are doing a 100 per cent cash deal with a bank, we try to pay 100 per cent to the bank. But when it comes to our capital deployment, we try to make it 15 per cent or a maximum of 20-25 per cent, and we always get an investor who will put the money. Now, the advantage of this is that since the investor is putting in 75-85 per cent of the money, they will be very keen on resolution of the assets. The investors will not be keen that the ARC is earning the management fees they have to pay for. They will have regular interaction with the ARC because they want a return on their money. And investors are keen to work with those ARCs that have a very fair, open and transparent business model.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,

Reserve Bank of India – Press Releases

Press Releases

[ad_1]

Read More/Less


(Amount in ₹ crore, Rate in Per cent)
  Volume
(One Leg)		 Weighted
Average Rate 		Range
A. Overnight Segment (I+II+III+IV) 4,10,488.23 3.23 0.01-3.45
     I. Call Money 6,932.98 3.14 1.90-3.40
     II. Triparty Repo 3,08,897.65 3.22 3.15-3.26
     III. Market Repo 94,157.60 3.25 0.01-3.40
     IV. Repo in Corporate Bond 500.00 3.45 3.45-3.45
B. Term Segment      
     I. Notice Money** 70.00 3.03 2.65-3.30
     II. Term Money@@ 254.00 – 3.00-3.80
     III. Triparty Repo 0.00 – –
     IV. Market Repo 110.00 3.05 3.05-3.05
     V. Repo in Corporate Bond 0.00 – –
  Auction Date Tenor (Days) Maturity Date Amount Current Rate /
Cut off Rate
C. Liquidity Adjustment Facility (LAF) & Marginal Standing Facility (MSF)
I. Today’s Operations
1. Fixed Rate          
     (i) Repo          
    (ii) Reverse Repo Tue, 29/06/2021 1 Wed, 30/06/2021 4,01,344.00 3.35
    (iii) Special Reverse Repo~          
    (iv) Special Reverse Repoψ          
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo          
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF Tue, 29/06/2021 1 Wed, 30/06/2021 130.00 4.25
4. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£          
5. Net liquidity injected from today’s operations
[injection (+)/absorption (-)]*		       -4,01,214.00  
II. Outstanding Operations
1. Fixed Rate          
     (i) Repo          
    (ii) Reverse Repo          
    (iii) Special Reverse Repo~ Fri, 18/06/2021 14 Fri, 02/07/2021 960.00 3.75
    (iv) Special Reverse Repoψ Fri, 18/06/2021 14 Fri, 02/07/2021 40.00 3.75
2. Variable Rate&          
  (I) Main Operation          
     (a) Reverse Repo Fri, 18/06/2021 14 Fri, 02/07/2021 2,00,009.00 3.50
  (II) Fine Tuning Operations          
     (a) Repo          
     (b) Reverse Repo          
3. MSF          
4. Long-Term Repo Operations# Mon, 17/02/2020 1095 Thu, 16/02/2023 499.00 5.15
  Mon, 02/03/2020 1094 Wed, 01/03/2023 253.00 5.15
  Mon, 09/03/2020 1093 Tue, 07/03/2023 484.00 5.15
  Wed, 18/03/2020 1094 Fri, 17/03/2023 294.00 5.15
5. Targeted Long Term Repo Operations^ Fri, 27/03/2020 1092 Fri, 24/03/2023 12,236.00 4.40
  Fri, 03/04/2020 1095 Mon, 03/04/2023 16,925.00 4.40
  Thu, 09/04/2020 1093 Fri, 07/04/2023 18,042.00 4.40
  Fri, 17/04/2020 1091 Thu, 13/04/2023 20,399.00 4.40
6. Targeted Long Term Repo Operations 2.0^ Thu, 23/04/2020 1093 Fri, 21/04/2023 7,950.00 4.40
7. On Tap Targeted Long Term Repo Operations€ Mon, 22/03/2021 1095 Thu, 21/03/2024 5,000.00 4.00
  Mon, 14/06/2021 1096 Fri, 14/06/2024 320.00 4.00
8. Special Long-Term Repo Operations (SLTRO) for Small Finance Banks (SFBs)£ Mon, 17/05/2021 1095 Thu, 16/05/2024 400.00 4.00
  Tue, 15/06/2021 1095 Fri, 14/06/2024 490.00 4.00
D. Standing Liquidity Facility (SLF) Availed from RBI$       17,313.80  
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*     -1,00,403.20  
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*     -5,01,617.20  
G. Cash Reserves Position of Scheduled Commercial Banks
     (i) Cash balances with RBI as on 29/06/2021 6,16,488.38  
     (ii) Average daily cash reserve requirement for the fortnight ending 02/07/2021 6,19,074.00  
H. Government of India Surplus Cash Balance Reckoned for Auction as on¥ 29/06/2021 0.00  
I. Net durable liquidity [surplus (+)/deficit (-)] as on 04/06/2021 8,57,660.00  
@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).
– Not Applicable / No Transaction.
** Relates to uncollateralized transactions of 2 to 14 days tenor.
@@ Relates to uncollateralized transactions of 15 days to one year tenor.
$ Includes refinance facilities extended by RBI.
& As per the Press Release No. 2019-2020/1900 dated February 06, 2020.
* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo.
# As per the Press Release No. 2020-2021/287 dated September 04, 2020.
^ As per the Press Release No. 2020-2021/605 dated November 06, 2020.
€ As per the Press Release No. 2020-2021/520 dated October 21, 2020, Press Release No. 2020-2021/763 dated December 11, 2020 and Press Release No. 2020-2021/1057 dated February 05, 2021.
¥ As per the Press Release No. 2014-2015/1971 dated March 19, 2015.
£ As per the Press Release No. 2021-2022/181 dated May 07, 2021.
~ As per the Press Release No. 2021-2022/177 dated May 07, 2021.
ψ As per the Press Release No. 2021-2022/323 dated June 04, 2021.
Ajit Prasad
Director   
Press Release: 2021-2022/447

[ad_2]

CLICK HERE TO APPLY

Leave a comment

RBI imposes penalties on 4 cooperative banks, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Reserve Bank on Tuesday said it has imposed penalties on four co-operative banks, including a Rs 112.50 lakh fine on Hyderabad-based Andhra Pradesh Mahesh Co-operative Urban Bank, for contravention of certain regulatory directions. A penalty of Rs 62.50 lakh has been imposed on The Ahmedabad Mercantile Co-operative Bank, Ahmedabad; Rs 37.50 lakh on SVC Co-operative Bank, Mumbai; and Rs 25 lakh on Saraswat Cooperative Bank, Mumbai.

The penalty on Andhra Pradesh Mahesh Co-operative Urban Bank was for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits’ and ‘Know Your Customer’.

The Ahmedabad Mercantile Co-operative Bank has been penalised for violation of norms contained in Master Directions on ‘Interest Rate on Deposits’.

As per the RBI, it imposed penalty on SVC Co-operative Bank for non-compliance with directions on ‘Interest Rate on Deposits’ and ‘Frauds Monitoring and Reporting Mechanism’.

Saraswat Cooperative Bank was penalised for non-compliance with directions on ‘Interest Rate on Deposits’ and ‘Maintenance of Deposit Accounts’.

The penalties, the RBI said, have been imposed for based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the banks with their customers.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

RBI sets July 30 deadline for banks to move current accounts, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The Reserve Bank of India (RBI) has set a deadline of July 30 for banks to give up current accounts of all companies where their exposure is below a cut-off decided by the regulator.

RBI communicated this in a letter to banks a fortnight ago, two senior bankers told ET.

The move, initiated more than a year ago, could trigger a migration of many lucrative current accounts – which lower a bank’s fund cost and cash management business – from MNC banks to public sector lenders and some of the large private sector Indian banks.

According to the new rule, a bank with less than 10% of the total approved facilities – which include loans, non-fund businesses like guarantees, and daylight overdrafts (or intra-day) exposure – to a company is barred from having the client’s current account.

“RBI is probably upset that banks are taking a long time to shift the accounts. But the delay may also be because several PSU banks may not be ready with the technology. Now, RBI can’t direct companies which have been doing business with a bank for years to move to another bank. At one point many MNC banks and companies had opposed it, but they have realised that it’s fait accompli,” said a banker.

Notified in August 2020, the regulation after a review was expected to be implemented by January 31, 2021.

Backed by a former chairman of the country’s largest lender State Bank of India and some of the PSU bankers, the regulation stems from the belief that errant corporate borrowers will find it tougher to divert funds if their current and collection accounts lie with lending banks.

Regulation doesn’t cover MFs, insurers
It’s aimed at curbing the practice of companies who run current accounts to collect sale proceeds and other receivables with banks outside the lending consortium to delay loan servicing.

Over the years, some of the MNC banks, without being large lenders, had put in place technology to integrate fund flows between a large company and its customers, vendors and associates. Besides enjoying the float, the relationship with the corporate opened an opportunity to cross-sell products to group companies. Significantly, it was a strategy to earn fees without committing larger capital for loans, and the risk of some turning into NPAs.

However, the present rule, said another banker, could also impact a few smaller Indian banks, including state-owned lenders. Some large private banks, who are in favour of the rule, have been raising their exposure above the 10% threshold to retain the current accounts. As per the rule, a bank having a current account with less than 10% exposure will be required to move funds to another bank which meets the exposure rule. The 10% rule does not pertain to regulated entities like mutual funds and insurers.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Banks, experts pin hopes on bad bank to cut NPA pile, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


The National Asset Reconstruction Company (NARC) is likely to help banks cut their bad loan piles.

The bad bank and healthy provisioning buffers against doubtful advances should help India’s banks mitigate the impact of delinquencies and asset quality slippages in the aftermath of the second Covid wave, according to Boston Consultancy Group.

The formation of National Asset Reconstruction Co Ltd will help lenders keep up the momentum of recovery in stressed assets in 2021-22 (Apr-Mar), State Bank of India Chairman Dinesh Kumar Khara said.

Along with the resumption of courts and the roll-out of pre-package for resolution through the insolvency law, this will help banks make judicious use of recovery options, Khara said.

The NARC would help reduce sticky assets exposure to 1.8% – 2.3% of total loans, BCG said.

Asset quality is still a major concern for many Indian banks even as nonperforming assets (NPA), on average, could be contained, the global consultancy firm said.

Asset quality

“The second wave of the coronavirus pandemic poses risk to asset quality even as banks retain healthy provisioning buffers,” it said.

Banks have identified 22 bad loans totaling Rs 89,000 crore to be transferred to the NARC in the initial phase.

The State Bank of India plans to transfer bad loans worth around 200 bln rupees to NARCL.

The report also said that bad loans sold to asset reconstruction companies (ARCs) as a proportion of banking system stressed assets increased to about 34% at the end of FY20, up from 25% in FY18, with banks taking a much higher haircut on these sales.

Haircuts on sales to ARCs have risen to 66% in FY20 compared to 62% in the prior financial period, it said.

The bad bank

The bad bank was proposed in the Union Budget for 2021-22.

In the last financial stability report released in January, the central bank said that banks’ gross non-performing assets may rise to 13.5% by September 2021 from 7.5% as of September 2020. In the event of extreme stress, the ratio could rise to 14.8%.

Former Reserve Bank of India deputy governor Rakesh Mohan has also warned that higher stress on assets in the banking system threatens financial stability.

Recoveries through various channels have bounced back to about 16% in FY20 from decadal lows of about 10% in FY16 before the pandemic struck.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , ,

Global banks announce bumper dividends, but Indian peers face a cap, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Global wall street banks are hiking dividend payouts after US Federal Reserve gave them go-ahead last week after annual stress test results. However, the Indian bank shareholders have to wait has curbed banks’ dividend-paying ability in the financial year 2020-21 citing the impact of an ongoing second wave of coronavirus.

Morgan Stanley, JPMorgan, Bank of America, Goldman Sachs and Wells Fargo said on Monday they were hiking their capital payouts after the US Federal Reserve gave them a clean bill of health following their annual “stress tests”.

Analysts and investors had expected the country’s largest lenders to start issuing as much as $130 billion in dividends and stock buybacks from next month after the Fed last week ended emergency pandemic-era restrictions on how much capital they could give back to investors.

Morgan Stanley

Morgan Stanley delivered the biggest surprise to investors, saying it would double its dividend to 70 cents a share in the third quarter of 2021.

The Wall Street giant also said it would increase spending on share repurchases.

Morgan Stanley CEO James Gorman said in the announcement that the bank could return so much capital because of the excess it has accumulated over several years. The action, he said, “reflects a decision to reset our capital base consistent with the needs we have for our transformed business model.”

Bank of America

Bank of America Corp said it will hike its dividend by 17% to 21 cents a share beginning in the third quarter of 2021, and JPMorgan Chase & Co said it will go to $1.00 a share from 90 cents for the third quarter.

Goldman Sachs Group said it planned to increase its common stock dividend to $2 per share from $1.25.

Wells Fargo

Wells Fargo & Co, which has built up capital more rapidly than rivals due in part to a Fed-imposed cap on its balance sheet, said it plans to repurchase $18 billion of stock over the four quarters beginning in September.

The repurchase target amounts to nearly 10% of its stock market value and is line with expectations from analysts.

Wells Fargo, which for years has been trying to move past a series of costly mis-selling scandals, said it was doubling its quarterly dividend to 20 cents a share, consistent with analyst expectations.

“Since the COVID-19 pandemic began, we have built our financial strength … as well as continuing to remediate our legacy issues,” CEO Charlie Scharf said in a statement.

“We will continue to do so as we return a significant amount of capital to our shareholders,” Scharf added.

Citigroup

Citigroup, meanwhile, confirmed analysts’ estimates that a key part of its required capital ratios had increased under the stress test results to 3.0% from 2.5%.

A hike of that size will limit Citigroup’s share buybacks, versus its peers, a report from analyst Vivek Juneja of JPMorgan shows. Juneja expects Citigroup will have the lowest capital return of big banks he covers.

Citigroup CEO Jane Fraser said the bank will continue its “planned capital actions, including common dividends of at least $0.51 per share” and buying back shares in the market.

In India

The Reserve Bank of India has curbed banks’ dividend-paying ability in the financial year 2020-21 citing an ongoing second wave of coronavirus that comes with an economic cost.

“In view of the continuing uncertainty caused by the ongoing second wave of Covid-19 in the country, it is crucial that banks remain resilient and proactively raise and conserve capital as a bulwark against unexpected losses, the Reserve Bank of India said in April.

“Banks may pay dividend on equity shares from the profits for the financial year ended March 31, 2021, subject to the quantum of dividend being not more than fifty percent of the amount determined as per the dividend payout ratio prescribed,” it said.

Private lender HDFC Bank has announced that the board has declared a dividend of Rs 6.50 per share for the year ended 31 March 2021.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

Senior Citizens Special FD Schemes Extended Till September 30, Details Inside

Personal Finance

[ad_1]

Read More/Less


SBI Wecare Deposit

On its official website, the largest commercial bank of our country State Bank of India (SBI) has stated that “A special ” SBI Wecare” Deposit for Senior Citizens introduced in the Retail TD segment wherein an additional premium of 30 bps (over & above the existing 50 bps as detailed in the above table) will be paid to Senior Citizen’s on their retail TD for ‘5 Years and above’ tenor only. “SBI Wecare” deposit scheme stands extended till 30th September, 2021.” SBI Wecare deposit scheme gives older folks an additional 30 basis points above the 50 basis points of additional FD interest rate. On a 5- to 10-year fixed deposit, the SBI We Care scheme offers a senior citizen an additional 80 basis points. Hence, they will receive 6.20 per cent interest on their fixed deposit under this special SBI FD scheme. These rates are in effect from 8 January 2021, according to SBI.

HDFC Bank Special FD Scheme

HDFC Bank Special FD Scheme

According to the official website of HDFC Bank “An Additional Premium of 0.25% (over and above the existing premium of 0.50%) shall be given to Senior Citizens who wish to book the Fixed Deposit less than 5 crores for a tenure of 5 (five) years One Day to 10 Years, during special deposit offer commencing from 18th May’20 to 30th Sep’21. This special offer will be applicable to new Fixed Deposit booked as well as for the Renewals, by Senior Citizens during the above period. This offer is not applicable to Non-Resident Indian.” Under the HDFC Senior Citizen Care Scheme, the bank gives a 75 basis point higher interest rate. The interest rate on a fixed deposit made by a senior citizen under the HDFC Bank Senior Citizen Care FD would be 6.25 per cent which is in force from 21 May 2021.

Bank of Baroda Special Fixed Deposit Scheme

Bank of Baroda Special Fixed Deposit Scheme

Senior citizens can get a 100 basis point higher on their deposits at Bank of Baroda. Under the special fd scheme for senior citizens, one can get an interest rate of 6.25 per cent on his or her fixed deposit made for a period of 5 years and up to 10 years. These rates are in force from 16 November 2020.

Interest Rates of Special FD Schemes

Interest Rates of Special FD Schemes

Here are the most recent interest rates of special fd schemes which are applicable for a deposit amount of less than Rs 2 Cr.

Special FD Schemes ROI In % Effective till
ICICI Bank Golden Years Fixed Deposit 6.30% June 30, 2021
HDFC Bank Senior Citizen Care Fixed Deposit 6.25% September 30, 2021
Bank of Baroda Special Fixed Deposit Scheme 6.25% September 30, 2021
SBI Wecare Deposit 6.20% September 30, 2021
Source: Bank Websites



[ad_2]

CLICK HERE TO APPLY

Leave a comment

4 Best Special FD Schemes For Senior Citizens To End On September 30, 2021

Personal Finance

[ad_1]

Read More/Less


SBI Special Fixed Deposit Scheme

SBI Wecare deposit scheme offers an additional 30 basis points of interest above the 50 basis points of additional FD interest rate provided to senior citizens. SBI We Care scheme gives a senior citizen an extra 80 basis points on a 5- to 10-year fixed deposit. Under this special SBI FD scheme, they will earn 6.20 per cent interest on their fixed deposit. Here are the most recent fixed deposit interest rates of SBI for senior citizens which are in force from 08.01.2021.

Tenure Senior Citizen FD Rates In %
7 days to 45 days 3.4
46 days to 179 days 4.4
180 days to 210 days 4.9
211 days to less than 1 year 4.9
1 year to less than 2 year 5.5
2 years to less than 3 years 5.6
3 years to less than 5 years 5.8
5 years and up to 10 years 6.2
Source SBI, (Below Rs. 2 crore)

HDFC Bank Senior Citizen FD Scheme

HDFC Bank Senior Citizen FD Scheme

A senior individual can earn 75 basis points more on an HDFC Bank Senior Citizen Care FD. Under this special FD scheme, a senior citizen would receive a 6.25 per cent return on his or her FD if it is maintained for more than 5 years and up to 10 years. The current HDFC bank fixed deposit interest rates for elderly persons, effective from May 21, 2021, are listed below.

Tenure Senior Citizen FD Rates
7 – 14 days 3.00%
15 – 29 days 3.00%
30 – 45 days 3.50%
46 – 60 days 3.50%
61 – 90 days 3.50%
91 days – 6 months 4.00%
6 months 1 day – 9 months 4.90%
9 months 1 day – 1 Year 4.90%
1 Year 5.40%
1 year 1 day – 2 years 5.40%
2 years 1 day – 3 years 5.65%
3 year 1 day- 5 years 5.80%
5 years 1 day – 10 years 6.25%
Source: HDFC Bank, (Below Rs. 2 crore)

ICICI Bank Special Fixed Deposit Scheme

ICICI Bank Special Fixed Deposit Scheme

The ICICI Bank Golden Years FD Scheme for elderly persons offers an additional 0.80% FD interest rate over standard FD rates, effective from October 21, 2020. Under the ICICI Bank Golden Years FD scheme, an elderly citizen would get a 6.30 per cent interest rate respectively.

Tenure Senior Citizen FD Rates
7 days to 14 days 3.00%
15 days to 29 days 3.00%
30 days to 45 days 3.50%
46 days to 60 days 3.50%
61 days to 90 days 3.50%
91 days to 120 days 4.00%
121 days to 184 days 4.00%
185 days to 210 days 4.90%
211 days to 270 days 4.90%
271 days to 289 days 4.90%
290 days to less than 1 year 4.90%
1 year to 389 days 5.40%
390 days to 5.40%
18 months days to 2 years 5.50%
2 years 1 day to 3 years 5.65%
3 years 1 day to 5 years 5.85%
5 years 1 day to 10 years 6.30%
5 Years (80C FD) 5.85%
Source: ICICI Bank, (Below Rs. 2 crore)

Bank of Baroda Special FD Scheme

Bank of Baroda Special FD Scheme

Compared to the standard fixed deposit interest rates, Bank of Baroda is providing elderly people with a 1% higher return. Senior citizen special FD scheme of BoB will offer a 6.25 per cent annual interest rate applicable from November 16, 2020.

Tenure Senior Citizen FD Rates In %
7 days to 14 days 3.3
15 days to 45 days 3.3
46 days to 90 days 4,2
91 days to 180 days 4.2
181 days to 270 days 4.8
271 days & above and less than 1 year 4.9
1 year 5.4
Above 1 year to 400 days 5.5
Above 400 days and up to 2 Years 5.5
Above 2 Years and up to 3 Years 5.6
Above 3 Years and up to 5 Years 5.75
Above 5 Years and up to 10 Years 6.25
Source: BoB, (Below Rs. 2 crore)



[ad_2]

CLICK HERE TO APPLY

Leave a comment

Reserve Bank of India – Press Releases

Press Releases

[ad_1]

Read More/Less


The Reserve Bank of India (RBI) has, by an order dated June 28, 2021, imposed a monetary penalty of ₹62.50 lakh (Rupees sixty-two lakh and fifty thousand only) on The Ahmedabad Mercantile Co-operative Bank Ltd., Ahmedabad (the bank) for non-compliance with directions issued by RBI contained in Master Directions on ‘Interest Rate on Deposits’. This penalty has been imposed in exercise of powers vested in RBI under section 47A(1)(c) read with sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.

This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

Background

The statutory inspection of the bank conducted by the RBI with reference to the bank’s financial position as on March 31, 2019 and the Inspection Report (IR) pertaining thereto, and examination of all related correspondence revealed, inter alia, non-compliance with aforesaid directions issued by RBI. In furtherance to the same, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed for contravention of the directions issued by RBI. After considering the bank’s reply to the notice, oral submissions made in the personal hearings and additional submissions, RBI came to the conclusion that the aforesaid charges were substantiated and warranted imposition of monetary penalty.

(Yogesh Dayal)     
Chief General Manager

Press Release: 2021-2022/446

[ad_2]

CLICK HERE TO APPLY

Leave a comment
1 … 629 630 631 632 633 … 16,278