Banks
Banks Can Return Cheques Altered For Anything But The Date
May 3rd
A recent RBI Circular [1832/04.07.05/ 2009-10 dated 22nd February 2010] now clearly mandates that the branch/ clearing teams can return cheques which have alteration in the:
* Payee Name
* Amount in numbers
* Amount in words
Prohibiting alterations/ corrections on cheques:
No changes/ corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee’s name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations.
Online Money Transfer (NEFT) to become Faster
Feb 22nd
The National Electronic Funds Transfer (NEFT) system has been successfully handling significant volumes, ever since its launch in November 2005. More than 6 million transactions were processed by the system during the month of January 2010 alone. The coverage has also increased substantially with the participation of over 63,000 bank branches spread across the length and breadth of the country. Continue reading “Online Money Transfer (NEFT) to become Faster” »
Go Green, SMS the Money
Feb 21st
The State Bank of India is planning to quadrapule its branch network not by the conventional branch network manner but by using Mobile Banking. Yes, and the idea is to reach out to all those rural areas where it would be costlier to expand via the conventional branch network way. Continue reading “Go Green, SMS the Money” »
Payment of Interest on Savings Bank Account on a Daily Product Basis
Feb 20th
Well, the party is (almost) over for banks in India. Seriously, with the kind of interest calculation method being currently used for saving account holders it indeed is a party for the bank to enjoy such an enormous amount of free float at the cost of the janta.
Hopefully if the banks don’t make some lame excuses to push the deadline, come April 2010 the deposits in our savings account should earn us more by way of interest. That’s because the Reserve Bank of India has asked banks to start calculating interest rates on these accounts on daily basis from April 1, 2010. Continue reading “Payment of Interest on Savings Bank Account on a Daily Product Basis” »
Pay for withdrawals at other Bank ATMs
Oct 17th
Barely six months since the usage of other bank ATM’s was allowed for free — the rules have now changed.
Effective 15th October, 2009 customers will be allowed to withdraw a maximum of Rs. 10,000 per transaction from non Bank ATMs. What this means is, savings Account customers will be allowed 5 free cash withdrawals per month on non Bank ATMs. A charge of Rs. 20 per transaction will be levied for additional ATM cash withdrawal on non Bank ATMs beyond the first 5 transactions.
So its clear that as long as the end customer was paying the per transaction charges earlier the banks were happy — but once they had to start paying the fee from their own pocket to the other bank (whose ATM was used to withdraw cash) it had begun to pinch them hard.
Latest ATM substitute
Jul 31st
Although the Reserve Bank of India has allowed shops to act as ATMs, the people meant to serve as banks’ new touch points – the shopkeepers – will have to be convinced first.
On July 22, the Reserve Bank of India had issued a circular permitting cash withdrawals of up to Rs 1,000 per day from point-of-sales (PoS) terminals at merchant establishments. PoS terminals are machines where customers can swipe their credit or debit cards to pay for purchases. Says Jayesh Sangoi, a Mumbai-based clothes’ retailer, “Already, there have been many cases of credit fraud. What happens if a customers just walks in with a fake card, and leaves with cash?
Read more here
Use Any Bank ATM for Free
Feb 11th
photo by f-r-a-n-k
Currently banks charge Rs. 20 per transaction if you use an ATM of another bank. Come April 1, 2009 and you can use any ATM of any bank for any service free of cost; according to RBI.
The RBI has mandated that the ATMs should have unrestricted access for customers across banks. Be it the customer of a nationalised bank or a private bank, he will be able to access the bank account from any ATM without any additional charge. The RBI has provided the technology platform for this. This will also bring down the need for keeping large amounts of cash with oneself.
Banks can levy charges determined by themselves for withdrawals using credit cards and from ATMs located overseas. In a circular issued to all commercials banks, the RBI said customers should not be charged for even cash withdrawals at other bank ATMs with effect from April 1. It said a bank cannot charge its own customers for any ATM usage, with immediate effect. The guidelines are being issued to encourage customers to use ATM cards and ensure greater transparency in banking operations.
Bank Gone Bust? Don’t Worry, Your Account Is Insured*
Oct 6th
photo by Gaeten Lee
You might be aware of the recent rumor on the street regarding ICICI Bank and how people queued up at the bank/ATM to withdraw their money. Continue reading “Bank Gone Bust? Don’t Worry, Your Account Is Insured*” »
