Withdrawal of cash from bank deposit accounts - Relaxation

RBI/2016-17/163

DCM.No.1437/10.27.00/2016-17

November 28, 2016

The Chairman / Managing Director/ Chief Executive Officer,

Public Sector Banks/ Private Sector Banks / Foreign Banks / 

Regional Rural Banks / Urban Cooperative Banks/

State Cooperative Banks/ District Central Cooperative Banks

Dear Sir,

Withdrawal of cash from bank deposit accounts - Relaxation

News : 80,000 officers, staff of PSU banks to retire in 2 years

News : 80,000 Officers Vacancies In PSU Banks, Expected In Next 2 Years  :

This is a very good news for all banking aspirants who are striving to get job in PSU Banks, this news which will put banking aspirants in their euphoria. It will invigorate their will like rising again from the ashes of phoenix. It is another opportunity which every aspirant wants to seize. So Guys fasten your seat belts and start your preparation to get your dream job with full throttle!

BANKING SERVICES IN POST OFFICES

GOVERNMENT OF INDIA

MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

DEPARTMENT OF POSTS  

RAJYA SABHA

UNSTARRED QUESTION NO.533

TO BE ANSWERED ON 27th FEBRUARY, 2015

BANKING SERVICES IN POST OFFICES

†533. SHRI BHUPENDER YADAV:                                                    

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

(a)       whether Government proposes to entrust banking related services to the Department of Posts;

(b)       whether all post offices in the country would also function as a bank; and

(c)        if so, by when this work is likely to be completed?

ANSWER

THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY

(SHRI RAVI SHANKAR PRASAD)

(a)       Yes Sir. The Department of Posts applied to the Reserve Bank of India for issuance of license for setting up of Payments Bank on 30.01.2015.

(b)       No Sir. The Government does not propose to convert all post offices in the country to function as a bank. However, Department of Posts applied for license for setting up a Payments Bank on 30.01.2015, which may utilize a part of existing resources /infrastructure of the Department.

(c)        Date of completion of the above work will be depended on the decision of the Reserve Bank of India.

Bank unions want FM to step in to resolve wage hike

Days ahead of a proposed strike by PSU banks' employee unions, a top union leader today sought the intervention of Finance Minister Arun Jaitley to resolve the over two-year-old wage hike issue.

Public sector bank employee unions have threatened to go on a nationwide four-day strike beginning February 25 over the wage hike issue.

C H Venkatachalam, General Secretary of All-India Bank Employees Association (AIBEA), said Jaitley should intervene immediately to settle the long-pending issue.

Source : PTI

IMPORTANT BANKING ABBREVIATIONS

1. NABARD - National Bank for Agricultural & Rural Development
2. RTGS - Real Time Gross Settlement
3. NEFT - National Electronic Fund Transfer
4. NAV - Net Asset Value
5. NPA - Non Performing Asset

6. ASBA - Account Supported by Blocked Amount
7. BIFR - Board for Industrial and Financial Reconstruction
8. CAMELS - Capital Adequacy, Asset Quality, Management Earnings, Liquidity, Systems & Controls
9. BCSBI - Banking Codes & Standard Board of India

RBI extends deadline to exchange pre-2005 currency notes

MUMBAI: The Reserve Bank of India on Monday granted an additional nine months for the public to exchange currency notes printed before 2005, including Rs 500 and Rs 1,000 denominations, and set a deadline of January 1, 2015. 

"RBI has also advised banks to facilitate the exchange of these notes for full value and without causing any inconvenience whatsoever to the public," the central bank said in a release. 

It clarified that the public "can continue to freely use these notes" for transactions and can unhesitatingly receive these notes in payment as all such notes remain legal tender.

The RBI on January 22 said it would withdraw from circulation all pre-2005 currency notes from April 1 and the public was advised to approach banks to exchange such notes.

Currency notes issued before 2005 do not have the year of printing on the reverse side. In notes issued after 2005, the year of printing is visible at the bottom of the reverse side. 

The RBI said the withdrawal is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. 

"A majority of such notes have already been withdrawn through the banks and only a limited number of notes remain with the public" the RBI said. 

The apex bank said it will monitor and review the withdrawal and exchange process so that the public is not inconvenienced in any manner. 

Reserve Bank governor Raghuram Rajan had earlier said the withdrawal was not an attempt at demonetisation, nor had it anything to do with the forthcoming general election. 

Post-2005 notes have added security features and help in curbing the menace of fake currency. 

At present, currency notes are issued in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000. 

Earlier, the RBI had withdrawn a certain series of currency notes at the bank level but bearers were not asked to get them replaced.

Meeting with Chief Labour Commissioner fails, Bank Strike stands

Bank Unions (UFBU ) had given strike notice to IBA earlier,for two days All India Bank Strike on 10th and 11th February 2014.

On this back ground the  Chief Labour Commissioner (Central) had called for conciliation proceedings on 6th February 2014.

As per information available, the Conciliation Meeting with IBA arranged by CLC at New Delhi today failed.

IBA refused to raise the offer.

STRIKE STANDS.

SOURCE : http://paycommissionupdate.blogspot.in/2014/02/meeting-with-chief-labour-commissioner.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+blogspot/frCK+(PAY+COMMISSION)

Importance Of AADHAAR In Banking Sector

Basics of UID (AADHAR) :

i. It will be a randomly generated twelve digit number for every resident of India.Example:2653 8564 4663.

ii. The number will be unique, which means, no two residents will have the same number.

iii. No resident can have two numbers because AADHAAR is based on a combination of standard information like name, address, age and bio-metric information which is unique to every person.

iv. AADHAR will be used to prove identity not citizenship.

v. It will not be compulsory to get an AADHAAR number

Bank wage talk fails, strike on 18th Dec to follow

It is learnt that a meeting with IBA regarding bipartite settlement failed on 14.12.13 in Mumbai. IBA made some initial offers (unconfirmed sources say that it was 5% increases on corpus) which was not felt satisfactory by the leaders. UFBU decided to go ahead with all India strike on 18.12.2013 as declared earlier.

Reconciliation meeting with labour commissioner is scheduled on 16th Dec.

RBI allows banks to pay interest more frequently

              Triggering a potential deposit war among banks, the Reserve Bank of India on Friday gave commercial banks the option of paying interest on savings and term deposits at intervals less than three months. The RBI move, announced in a notification, is expected to make banks woo depositors more aggressively with a little extra interest payment.

               Interest calculated with shorter periodicity will yield a little higher sum in absolute term for savings account and term deposit holders. Public deposits traditionally are the cheapest source of funds for lenders, which have been struggling to raise money from common people. Bank deposits grew 15.45% year-on-year to around Rs 74-lakh crore for the fortnight ended November 16.

                   RBI Governor Raghuram Rajan, however, had said he is not happy with the deposit growth. "The most recent numbers have FCNR-B (foreign currency non-resident—bank deposits) in it. I would like to see deposits growth, especially CASA (current and saving account)," he had said.

               Increasing the frequency of interest payment — mentioned in the central bank's second quarter monetary policy in October — may put margin pressure on banks. Lenders have already been facing strains on their interest rate margins as they are compelled to pay high rates to depositors, while the government has directed them to lower lending rates.

                "Monthly interest payment on deposits will raise costs marginally, but it will help banks to woo customers with a little extra payment without raising deposit rates," KR Kamath, chairman and managing director at Punjab National Bank, had said at the time of the credit policy.

                   Currently, banks calculate interest on a quarterly basis for deposits. Some of them do make monthly payment, but they pay a little less after discounting their losses for early payment. For example, if quarterly interest is Rs 300, they do not pay Rs 100 a month to depositors for three months. They pay a little less on monthly basis.

Source : The Economic Times

Banks open this Sunday(15.09) to collect Income Tax

Banks open this Saturday, Sunday to collect quarterly advance tax

Banks authorized to collect advance tax payments will function full day this coming Saturday besides being open on Sunday.

"All designated branches of authorized banks have been asked to function on 14th and 15th September, 2013 (Saturday & Sunday) to accept advance tax payments,"finance ministry said in a statement on Thursday.

If any tax payer fails to pay the advance tax on these two days, then the person can make the payment on September 16, it added.

Payment of quarterly advance tax on or before 15th September, 2013 by the tax payers is a statutory requirement.

"All such tax payers who are liable to pay advance tax must make payments in the designated branches of the banks authorized to accept tax payments," it said.

The Reserve Bank has designated bank branches of State Bank of India, public sector bank branches, HDFCBank, ICICI Bank, Axis Bank, IDBI Bank and Kotak Mahindra Bank to collect advance tax payments.

Times of India-12.09.2013

Public sector banks faces shortage of 56,000 employees

Public sector banks face a shortage of 56,022 personnel across various cadres and the lenders are at different stages of filling these posts, official sources said.

In the officer category, 25 public sector banks have 23,794 vacancies as of March, 2013. Of this, 5,815 officer level posts are in Bank of Baroda (BoB) only, sources said.

Syndicate Bank has 1,500 vacancies of officer level posts. Andhra Bank is facing a shortage of 1,484 officers. The number for the same in Bank of India is 1,473. Allahabad Bank needs to hire 1,450 officers, Punjab & Sind Bank 1,454 and Punjab National Bank 1,119.

RBI makes it easier to report fake notes to banks

The next time someone passes on a fake currency note to you without your knowledge, you need not palm it off surreptitiously. The Reserve Bank of India (RBI) on Friday (28/6/2013) directed banks to accept all fake notes over the counter from customers and pay them back the full amount. In return, banks will get 25% of the amount of the fake note back from the RBI. 

To stop misuse of the system by unscrupulous entities, RBI also directed banks to monitor the patterns and trends of fake note detection and bring them to the notice of the central bank and the police immediately. 

"Detection of counterfeit notes, at banks, should be at the back office or currency chest only. Banknotes when tendered over the counters may be checked for arithmetical accuracy and other deficiencies like whether there are mutilated notes, and appropriate credit passed on to the depositor/account or value in exchange given," the RBI noted. 

Source : The Times of India

Difference between NEFT and RTGS Fund Transfer

Useful for Banking Exams…….

 Download as PDF

 While studying for Banking Exams or doing fund transfer we often come across the words NEFT and RTGS. Lets try to understand what is NEFT and RTGS and what is the difference between them. NEFT and RTGS are two main money transfer mechanisms in India. That is if we want to transfer money from one bank to another bank we have to use any one of this method.

Transferring money between two accounts in same bank is pretty straight forward and it’s an internal matter of the bank (eg: between two SBI branches and also banks within SBI Group), it does not have to deal with other banks and their protocols, however when one bank wants to send the money to another bank in India, there is a defined mechanism (eg: from SBI to ICICI, HDFC, Axis Bank etc.) it has to be done and hence NEFT and RTGS comes into our help. Both these systems are maintained by Reserve Bank of India.

Download call letters for SBI Probationary Officers exam (28.04.2013)

SBI is going to organize written test on 28th April 2013 for recruitment of Probationary Officers throughout the country. Candidates have to download the call letter for the exam from SBI site.

Download the Call Letter.

(If the candidates face any problem to download the call letter, they can refer to the FAQs provided by SBI)

Download the Frequently Asked Questions

Old Cheque : RBI extends deadline for four more month.

RBI extends deadline for issuance of new format cheques.

RBI asked banks to issue new cheque books only under the new format and gave them time till July-end to withdraw the old format cheques.

All cheques currently with customers in the old format (non-Cheque Truncation System) will continue to be valid for another four months (the earlier deadline was March 31), the apex bank said.

India Post readies plan to start bank

NEW DELHI: The Reserve Bank of India having opened the window for new bank licences, the postal department is finalizing the blueprint to set up a bank of its own at yourneighbourhood post office, a move that will challenge the dominance of large public sector lenders in smaller towns and rural India.

While the department already has a balance sheet of Rs 6.18 lakh crore, which includes deposits of around 5.5 lakh crore, it is expected to set up a new entity that will function as the bank. Transferring the existing deposit base to the bank or converting the entity into a bank will entail an initial capital base of around Rs 55,000 crore to meet RBI's requirement, which the government will find difficult to provide. So, the proposed bank will start with the minimum capital requirement of Rs 500 crore, said a source familiar with the development.

"This will benefit rural areas enormously. There are nearly 1.55 lakh post offices and no capital cost of building is required. We are connecting post offices. As it is, we are offering savings bank in post offices and this is a natural progression. The matter is under discussion with the finance ministry and RBI," communications and IT minister Kapil Sibal told TOI.

Restriction on Issue of Cheques from Saving Bank Accounts

Reserve Bank of India (RBI) has issued a Master Circular dated 02.07.2012 on ‘Customer Service in Banks’ which, inter-alia, provides that banks may issue cheque books with larger number of leaves (20 or 25) if a customer demands the same and also ensure that adequate stocks of such cheque books (20 / 25 leaves) are maintained with all the branches to meet the requirements of the customers.

This was stated by the Minister of State for Finance, Shri Namo Narian Meena in a written reply to a question in the Rajya Sabha today.

Source : pib

RECRUITMENT OF PROBATIONARY OFFICERS(1500) IN STATE BANK OF INDIA

ONLINE REGISTRATION OF APPLICATION: 30.01.2013 TO 23.02.2013


PAYMENT OF FEES - ONLINE : 30.01.2013 TO 23.02.2013

PAYMENT OF FEES - OFFLINE : 01.02.2013 TO 28.02.2013

DATE OF WRITTEN EXAMINATION : 28.04.2013

   Applications are invited from eligible Indian Citizens for appointment as Probationary Officers (POs) in State Bank of India.  Candidates selected are liable to be posted anywhere in India.

EMOLUMENTS:

Call to increase Retirement age of Bank Employees to 65

The retirement age for bank employees should be increased to 65 for better utilisation of the services of seniors, said INTUC national president G. Sanjeeva Reddy.

Many officers were joining private financial institutions after their superannuation and extending quality services. The Public Sector Units were unable to make use of their services fully as they were retiring by 60, he opined.

Speaking after inaugurating the Eighth Biennial Conference of Union Bank Officers’ Congress of Andhra Pradesh here on Sunday, Mr. Reddy said the INTUC was opposed to the disinvestment plans and selling of shares to private companies from PSUs. He promised bankers of a discussion on their problems with the Centre.

Vijayawada MP Lagadapati Rajagopal, who attended the conference, said banks would collapse if NPAs increased, and underlined the need for prompt payment of loans borrowed by bigwigs.