Showing posts with label Banking. Show all posts
Showing posts with label Banking. Show all posts
Friday, December 18, 2015
Developments in Banking
For years, the validity period of cheques, pay orders and demand drafts or bankers' cheque has been six months. This, however, is changed. Starting April 1 ,2012, the time period to en cash cheque or DDs has been reduced to three months. In other words, the validity period for these instruments will three months instead of six months.
Validity of cheques: In a diktat issued earlier this month, the Reserve Bank of India said this move was intended to stop the misuse of the six-month validity period by 'some persons' who were circulating such instruments in the market like cash. "The Reserve Bank is satisfied that in public interest and in the interest of banking policy, it is necessary to reduce the period within which cheques/drafts/pay orders/banker's cheques are presented for payment from six months to three months from the date of such instrument," the notification said.
Through this measure, the banking regulator seeks to curb the practice of transferring a cheque (and thus, the proceeds of the instrument) from a person in whose favour it was originally issued to another, in return for a fee.
This apart, banks have also been asked to refrain from crediting the proceeds of an 'account payee cheque' to those other than the payee constituent (that is, the one to whom such a cheque is issued).
Source: The Economic Times
A press release from Reserve Bank of India has cautioned the banks and the public about a phishing mail purported to have been sent by RBI. Please go through the mail and take precautions as advised by RBI. It has come to the notice of the Reserve Bank of India that an email has been sent in its name from mail id: Reserve Bank Of India < no-reply@rbi.com > and signed by RBI, Security Team offering a 'new online security protection' called "Netsecured” to “reduce fraud and theft in various banking system …(and)… to enable all customer's online banking in all Indian Banks to get protected and Secured.” The Reserve Bank cautions members of public that it has not developed any such software; nor has it sent any such mail asking online banking customers to update their account details to secure their online accounts. In fact, the Reserve Bank does not have any mail id with extension @rbi.com Members of public receiving such mails should not open the attachment and/or try to download the attachment on their computers. This is a phishing mail and accessing the mail in any manner could result in identity theft. |
3. RBI Extends CTS Cheque Deadline by 3 months:
While most of the banks, it is reported, have confirmed that they are issuing only multi-city/payable at par CTS-2010 standard cheques at present, representations have been received by RBI from various stakeholders requesting for extension of the time beyond December 31, 2012 for withdrawal / replacement of non-CTS-2010 Standard cheques / post-dated EMI cheques with CTS-2010 standard cheques.
Taking into consideration these representations, it has been decided by the RBI to extend the time up to March 31, 2013 for banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS-2010 Standard cheques.
As you are aware, RBI advised on 03.09.2012 that all banks to arrange
to issue only multi-city/payable at par CTS-2010 standard cheques not
later than September 30, 2012 and to withdraw the non-CTS-2010
Standard cheques in circulation before December 31, 2012 by creating customer awareness. Further, banks holding post-dated EMI cheques
(received either on their own behalf or on behalf of their NBFC clients
and others) were advised to ensure the replacement of non-CTS-2010
Standard cheques with CTS-2010 standard cheques before
December 31, 2012.
to issue only multi-city/payable at par CTS-2010 standard cheques not
later than September 30, 2012 and to withdraw the non-CTS-2010
Standard cheques in circulation before December 31, 2012 by creating customer awareness. Further, banks holding post-dated EMI cheques
(received either on their own behalf or on behalf of their NBFC clients
and others) were advised to ensure the replacement of non-CTS-2010
Standard cheques with CTS-2010 standard cheques before
December 31, 2012.
While most of the banks, it is reported, have confirmed that they are issuing only multi-city/payable at par CTS-2010 standard cheques at present, representations have been received by RBI from various stakeholders requesting for extension of the time beyond December 31, 2012 for withdrawal / replacement of non-CTS-2010 Standard cheques / post-dated EMI cheques with CTS-2010 standard cheques.
Taking into consideration these representations, it has been decided by the RBI to extend the time up to March 31, 2013 for banks to ensure withdrawal of non-CTS 2010 Standard cheques and replace them with CTS-2010 Standard cheques.
However, it has been emphasised that the residual non-CTS-2010 Standard cheques that get presented in the clearing system beyond this extended period will continue to be accepted for the clearing but will be cleared at less frequent intervals.
The modalities, charges applicable if any, etc. are being discussed with stakeholders and a separate communication is likely to be issued by RBI in this regard.
Monday, November 30, 2015
National Electronic Funds Transfer (NEFT)
Now all the banks are transferring money either by way of National Electronic Funds Transfer (NEFT) or by way of Real Time Gross Settlement system(RTGS). Banks have also provided these facilities directly to the customers through their |Internet Banking accounts thus enabling the customer to transfer the money to the customer of other banks.
In this post we will see how NEFT system functions in the banks:
Source: ABOUT NEFT SYSTEM
(A REQUEST: PLEASE GIVE YOUR COMMENTS IF THERE ARE ANY CHANGES/UPDATES ARE TO BE MADE IN THIS POSTING SO THAT I
CAN CORRECT THE SAME)
Q.1. What is NEFT?
National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.
Q.2. Are all bank branches in the country part of the NEFT funds transfer network?
List of bank-wise branches which are participating in NEFT is provided in the website of Reserve Bank of India at http://www.rbi.org.in/scripts/neft.aspx
Q.3. Who can transfer funds using NEFT?
Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of Rs.50,000/- per transaction.
Such customers have to furnish full details including complete address, telephone number, etc.NEFT, thus, facilitates originators or remitters to initiate funds transfer transactions even without having a bank account.
Q.4. Who can receive funds through the NEFT system?
Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the NEFT system. It is, therefore, necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.
The NEFT system also facilitates one-waycross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme.
A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees. Further details on the Indo-Nepal Remittance Facility Scheme are available on the website of Reserve Bank of India at http://rbidocs.rbi.org.in/rdocs/content/pdfs/84489.pdf.
The NEFT system also facilitates one-waycross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme.
A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees. Further details on the Indo-Nepal Remittance Facility Scheme are available on the website of Reserve Bank of India at http://rbidocs.rbi.org.in/rdocs/content/pdfs/84489.pdf.
Q.5. Is there any limit on the amount that could be transferred using NEFT?
No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances and remittances to Nepal.
Q.7. Whether the system is centre specific or has any geographical restriction?
No. There is no restriction of centres or of any geographical area within the country. The NEFT system takes advantage of the core banking system in banks. Accordingly, the settlement of funds between originating and receiving banks takes places centrally at Mumbai, whereas the branches participating in NEFT can be located anywhere across the length and breadth of the country.
Q.6. What are the operating hours of NEFT?
Presently, NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.
Q.7. How does the NEFT system operate?
Step-1 : An individual / firm / corporate intending to originate transfer of funds through NEFT has to fill an application form providing details of the beneficiary (like name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number) and the amount to be remitted. The application form will be available at the originating bank branch.
The remitter authorizes his/her bank branch to debit his account and remit the specified amount to the beneficiary. Customers enjoying net banking facility offered by their bankers can also initiate the funds transfer request online. Some banks offer the NEFT facility even through the ATMs. Walk-in customers will, however, have to give their contact details (complete address and telephone number, etc.) to the branch. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiary’s bank account or the transaction is rejected / returned for any reason.
Step-2 : The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre).
Step-3 : The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.
Step-4 : The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares accounting entries to receive funds from the originating banks (debit) and give the funds to the destination banks(credit). Thereafter, bank-wise remittance messages are forwarded to the destination banks through their pooling centre (NEFT Service Centre).
Step-5 : The destination banks receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary customers’ accounts.
Q.8. What is IFSC?
IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is an 11 digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.
Q.9. How can the IFSC of a bank-branch be found?
Bank-wise list of IFSCs is available with all the bank-branches participating in NEFT.List of bank-wise branches participating in NEFT and their IFSCs is available on the website of Reserve Bank of India athttp://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2009 . All the banks have also been advised to print the IFSC of the branch on cheques issued to their customers. For net banking customers many banks have enabled online search / pop-up of the IFSC of the destination bank branch.
Further, banks have also been advised to ensure that their branch staff provide necessary assistance to customers in filling out the required details, including IFSC details, in the NEFT application form, and also help in ensuring that there is no mismatch between the IFSC code and branch details of beneficiary branch as provided by the customer.
Q.10. What are the processing or service charges for NEFT transactions?
The structure of charges that can be levied on the customer for NEFT is given below:
a) Inward transactions at destination bank branches (for credit to beneficiary accounts)
– Free, no charges to be levied from beneficiaries
b) Outward transactions at originating bank branches – charges applicable for the remitter
- For transactions up to Rs 10,000 : not exceeding Rs 2.50 (+ Service Tax)
- For transactions above Rs 10,000 up to Rs 1 lakh: not exceeding Rs 5 (+ Service Tax)
- For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)
- For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)
c) Charges applicable for transferring funds from India to Nepal using the NEFT system (under the Indo-Nepal Remittance Facility Scheme) is available on the website of RBI at http://rbi.org.in/scripts/FAQView.aspx?Id=67
With effect from 1st July 2011, originating banks are required to pay a nominal charge of 25 paise each per transaction to the clearing house as well as destination bank as service charge. However, these charges cannot be passed on to the customers by the banks.
Q.11. When can the beneficiary expect to get the credit to his bank account?
The beneficiary can expect to get credit for the first ten batches on week days (i.e., transactions from 8 am to 5 pm) and the first five batches on Saturdays (i.e., transactions from 8 am to 12 noon) on the same day. For transactions settled in the last two batches on week days (i.e., transactions settled in the 6 and 7 pm batches) and the last batch on Saturdays (i.e., transactions handled in the 1 pm batch) beneficiaries can expect to get credit either on the same day or on the next working day morning (depending on the type of facility enjoyed by the beneficiary with his bank).
Q.12. Who should be contacted in case of non-credit or delay in credit to the beneficiary account?
In case of non-credit or delay in credit to the beneficiary account, the NEFT Customer Facilitation Centre (CFC) of the respective bank can be contacted (the remitter can contact his bank’s CFC; the beneficiary may contact the CFC of his bank). Details of NEFT Customer Facilitation Centres of banks are available on the websites of the respective banks. The details are also available on the website of Reserve Bank of India at http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2070 .
If the issue is not resolved satisfactorily, the NEFT Help Desk (or Customer Facilitation Centre of Reserve Bank of India) at National Clearing Cell, Reserve Bank of India, Mumbai may be contacted through e-mail or by addressing correspondence to the General Manager, Reserve Bank of India, National Clearing Centre, First Floor, Free Press House, Nariman Point, Mumbai – 400 021.
Q.13. What will happen if credit is not afforded to the account of the beneficiary?
If it is not possible to afford credit to the account of the beneficiary for whatever reason, destination banks are required to return the transaction (to the originating branch) within two hours of completion of the batch in which the transaction was processed.
For example, if a customer submits a fund transfer request at 12.05 p.m. to a NEFT-enabled branch, the branch in turn forwards the message through its pooling centre to the NEFT Clearing Centre for processing in the immediately available batch which (say) is the 1.00 pm batch. If the destination bank is unable to afford the credit to the beneficiary for any reason, it has to return the transaction to the originating bank, not later than in the 3.00 pm batch. On receiving such a returned transaction, the originating bank has to credit the amount back to account of the originating customer. To conclude, for all uncredited transactions, customers can reasonably expect the funds to be received back by them in around 3 to 4 hours time.
Q.14. Can NEFT be used to transfer funds from / to NRE and NRO accounts?
NEFT can be used to transfer funds from or to NRE and NRO accounts in the country. This, however, is subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.
Q.15. Can remittances be sent abroad using NEFT?
No. However, a facility is available to send outward remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.
Q.16. What are the other transactions that could be initiated using NEFT?
Besides personal funds transfer, the NEFT system can also be used for a variety of transaction including payment of credit card dues to the card issuing banks. It is necessary to quote the IFSC of the beneficiary card issuing bank to initiate the bill payment transactions using NEFT.
Q.17. Can a transaction be originated to draw (receive) funds from another account?
No. NEFT is a credit-push system i.e., transactions can be originated only to transfer / remit funds to a beneficiary.
Q.18. Would the remitter receive an acknowledgement once the funds are transferred to the account of the beneficiary?
Yes. In case of successful credit to the beneficiary's account, the bank which had originated the transaction is expected to send a confirmation to the originating customer (through SMS or e-mail) advising of the credit as also mentioning the date and time of credit. For the purpose, remitters need to provide their mobile number / e-mail-id to the branch at the time of originating the transaction.
Q.19. Is there a way for the remitter to track a transaction in NEFT?
Yes, the remitter can track the NEFT transaction through the originating bank branch or its CFC using the unique transaction reference number provided at the time of initiating the funds transfer. It is possible for the originating bank branch to keep track and be aware of the status of the NEFT transaction at all times.
Q.20. What are the pre-requisites for originating a NEFT transaction?
Following are the pre-requisites for putting through a funds transfer transaction using NEFT –
- Originating and destination bank branches should be part of the NEFT network
- Beneficiary details such as beneficiary name, account number and account type, name and IFSC of the beneficiary bank branch should be available with the remitter
- For net banking customers, some banks provide the facility to automatically pop-up the IFSC once name of the destination bank and branch is highlighted / chosen / indicated / keyed in.
Q.21. What are the benefits of using NEFT?
NEFT offers many advantages over the other modes of funds transfer:
- The remitter need not send the physical cheque or Demand Draft to the beneficiary.
- The beneficiary need not visit his / her bank for depositing the paper instruments.
- The beneficiary need not be apprehensive of loss / theft of physical instruments or the likelihood of fraudulent encashment thereof.
- Cost effective.
- Credit confirmation of the remittances sent by SMS or email.
- Remitter can initiate the remittances from his home / place of work using the internet banking also.
- Near real time transfer of the funds to the beneficiary account in a secure manner.
Wednesday, November 4, 2015
Recent Developments in Banking
1.Current Rates as on 2.11.2012:
a)Policy Rates:
i)Bank Rate: 9%
(Bank Rate is the rate at which RBI allows finance to commercial banks. Bank Rate is a tool, which central bank uses for short-term purposes. Any upward revision in Bank Rate by central bank is an indication that banks should also increase deposit rates as well as Base Rate/ Benchmark Prime Lending Rate(BPLR). Thus any revision in the Bank rate indicates that it is likely that interest rates on your deposits are likely to either go up or go down, and it can also indicate an increase or decrease in your EMI.)
ii)Repo Rate: 8%
( Repo Rate: Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.) |
iii)Reverse Repo Rate: 7%
Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks are always ready to lend money to RBI since their money are in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of the banking system.
b)Reserve Ratios:
i)CRR 4.50%
(CRR(Cash Reserve Ratio):Cash reserve Ratio (CRR) is the amount of Cash(liquid cash like gold) that the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with Banks increased and they are able to lend more.)
ii)SLR 23.00%
(CRR(Cash Reserve Ratio):Cash reserve Ratio (CRR) is the amount of Cash(liquid cash like gold) that the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with Banks increased and they are able to lend more.)
( Ref my post on Monetary Tools used by RBI to control Inflation with the following link to know more details: http://anayang95.blogspot.in/2011/09/monetary-tools-used-by-rbi-to-control.html )
2.RBI clarifies on penalty clause for 'survivors'
The Reserve Bank of India has adivsed banks to make sure to incorporate the "either or survivor" or "former or survivor" clause in their account opening forms.
RBI had advised that in case joint depositors of term/fixed deposits with "Either or Survivor" or "Former or Survivor" mandate intend to allow premature withdrawal of their deposits by one of the joint depositors on the death of the other.
RBI also clarified that such premature withdrawal would not attract any penal charge on survivor.
The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit. If such a mandate is obtained, banks can allow premature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder.
RBI has also asked banks to inform their existing along with future term deposit holders about the availability of such an option.
The Reserve Bank of India (RBI) has also advised regional rural and co-operative banks to modify Fixed Deposit account opening forms to allow premature withdrawal of FD on death of one of the joint account holders without any penalty. Under the modified norms, it will be easier for the surviving joint account holders to go for premature withdrawal of FD in the event of death of the other.
As per the RBI notification, banks will have to incorporate a clause in the FD form to give option of premature withdrawal by survivor in case of death of the other joint account holder.
3. Deduction on Interest on Saving Account – 80TTA
Individuals and HUFs can now claim deduction on Interest on saving account from 1st April, 2013 u/s 80TTA. Section 80TTA has been newly inserted to provide deduction in respect of interest on deposits in Savings Accounts held with Banks, Post office and Cooperative Banks.
Eligible Assessee
Deduction on Interest on saving account will be allowed only to Individuals and HUF’s (Hindu Undivided Family).
Section 80TTA deduction shall not be allowed to any Partnership firm, Association of Persons, Company or a body of individuals.
Qualifying – Saving Account
Deduction in respect of Interest on saving account with any of the following will qualify:
Bank or banking company;
Co-operative Society engaged in carrying on the business of banking, including a co-operative land mortgage bank or co-operative land development bank,
Post office Saving Account.
Other Relevant Points
Deposit in other scheme of Post office or time deposit or term deposit or fixed deposits will not be allowed.
Moreover, where the interest on saving account is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed in respect of such income in computing the total income of any partner of the firm or any member of the association or body.
Quantum of Deduction
Deduction shall be allowed upto Rs. 10000 in aggregate.
Availability
Deduction will be available to an assessee, being an individual and HUF’s from 1st April, 2013. In other words, deduction on Interest on saving account will apply from financial year 2015-2013 (Assessment year 2015-2014) and subsequent years.
4. ISSUE OF CHEQUES WITH UNIFORM FEATURES CONFORMING TO CHEQUE TRUNCATION SYSTEM (CTS)2010:
The Reserve Bank of India (RBI) directed all banks to issue cheques with uniform features conforming to Cheque Truncation System (CTS) 2010 standard by the end of September 2012.
The homogeneity in security features act as deterrent against frauds, and the fixed field placement specifications facilitate straight-through-processing at drawee banks’ end through the use of optical or image character recognition technology, RBI said in a notification.
To ensure the time-bound migration to CTS-2010 standard cheque formats, all banks are advised to arrange only “multi-city or payable at par CTS-2010 standard cheques not later than September 30, 2012,” it said.
“Arrange to withdraw the non-CTS-2010 standard cheques in circulation before December 31, 2012 by creating awareness among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in internet banking, notification on the web-site etc,” it said.
The introduction of new cheque standards ‘CTS 2010’ was warranted on account of several developments in the cheque clearing namely growing use of multi-city and payable-at-par cheques at any branch of a bank, increasing popularity of speed clearing for local processing of outstation cheques and implementation of grid based CTS for image-based cheque processing etc., it said.
Will your Cheque Book be valid after 31st December, 2012?
As per RBI guidelines, there have been certain changes made to the cheques issued by the Bank. However, these changes are available only in cheque books issued after August 2011. If you have obtained the cheque book prior to this, the cheques will not be valid after December 31, 2012.
If the cheques you currently hold have the following features, they will be valid after the given date.
- "Please sign above" is mentioned on cheque leaf on the lower right hand side.
- A wave like design is embossed on the left-hand side of Cheque leaf
Below is the new sample cheque format from HDFC Bank
Additionally, any post-dated cheques issued by you and due after December 31, 2012 will need to be replaced by the fresh cheques meeting the above mentioned guidelines.
Please contact your bank branch for new cheque book.
5. DISABLING OF ATM CASH RETRACTION:
‘Cash Retraction’ means if the cash notes are not collected from ATM
slot within specified time, cash notes are taken back by the ATM.
The banks have done away with the cash retraction system in ATMs. The systemwas withdrawn after the Reserve Bank of India (RBI) agreed to National Payments Corporation of India's proposal for removing the feature from all ATMs to deal with the increasing number of fraudulent claims about non-receipt of cash.
Banks have posted messages on their websites that the system has been disabled. The step has been taken to prevent the misuse of the system as RBI has received complaints about people trying to defraud banks by holding on to some withdrawn currency notes in ATMs and then claiming non-receipt of cash after the machine takes back the rest.
Banks have posted messages on their websites that the system has been disabled. The step has been taken to prevent the misuse of the system as RBI has received complaints about people trying to defraud banks by holding on to some withdrawn currency notes in ATMs and then claiming non-receipt of cash after the machine takes back the rest.
Always collect all your cash notes while doing a cash withdrawal transaction
If all cash notes are not collected, cash will not be taken back by the ATM machine and will remain there till the time the cash is not collected
Count all your notes before leaving the ATM site
6. Post Offices to have ATM facility soon
On the occasion of World Post Day , the Department of Post announced a proposal to install ATMs at several post offices in the state. “The Banking Services are available but this will enable anywhere, anytime banking. It will give easy access to electronic clearing services and fund transfer. 519 Post offices have been identified for core Banking Services. 1403 Post offices have been covered under project arrow. Out of these,141 Post offices have been covered under look & feel.” said Shri A.K. Sharma, Chief Postmaster General of Maharashtra and Goa.
World Post Day marks the institution of the Universal Postal Union way back in 1847 in Bern in Switzerland. In India, the dept. has come a long way from the time it merely courier letters and parcels to multi –utility facilitator of products and services. Sharma added there were plans to network all the post offices through computers. “We are partnering with firms like TCS for training staff, Infosys for full service integration and Sify will handle our network integration.” he said.
7. RBI sets up committee for sustainable financial inclusion
The Committee will be chaired by Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India and will comprise of members of board of directors of RBI, professors from eminent institutions, and senior level officials from UIDAI and banks. Executive Director in-charge of Rural Planning and Credit Department, Reserve Bank of India will be the convenor of the committee.
Ensuring accessible and affordable financial services in all 6 lakh villages in India is a herculean task and given the enormity of the task, a lot of ground still needs to be covered. This calls for a partnership of all the stakeholders – RBI, other sectoral regulators like Securities and Exchange Board of India. While the regulators and the Government of India are already part of the financial inclusion project, a need was felt to engage the members from the civil society/Non-Governmental Organisations and others for a sound and purposeful collaboration.
The committee, if necessary, would call other market players like Corporate Business Correspondents, Technology Vendors etc., as special invitees to the meetings. Since the financial inclusion model selected in India is primarily bank-led, the committee may also invite the Chairperson/Managing Directors of banks to its meetings to gather the perspective of the banks.
(Source:http://egov.eletsonline.com/2012/10/rbi-sets-up-committee-for-sustainable-financial-inclusion/)
Sunday, October 4, 2015
Tips for Safe Use of Automatic Teller Machines(ATMs)
About Automatic Teller Machines(ATMs)
An Automated Teller Machine (ATM), also known as a Cash Point (which is a trademark of Lloyds TSB), Cash Machine or sometimes a Hole in the Wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public space without the need for a cashier, human clerk or bank teller. ATMs are known by various other names including ATM Machine, automatic banking machine, and various regional variants derived from trademarks on ATM systems held by particular banks.
Invented by IBM, the first ATM was introduced in December 1972 at Lloyds Bank in the UK. However, there is a plaque on Barclays Bank in Enfield Town, north London stating that the first ATM (in the world) was installed there on the 27th June 1967.
On most modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smart card with a chip, that contains a unique card number and some security information such as an expiration date or CVVC (CVV).
Authentication is provided by the customer entering a personal identification number (PIN).
Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cellphone credit. If the currency being withdrawn from the ATM is different from that which the bank account is denominated in (e.g.: Withdrawing Japanese Yen from a bank account containing US Dollars), the money will be converted at a wholesale exchange rate. Thus, ATMs often provide the best possible exchange rate for foreign travelers and are heavily used for this purpose as well.
Source:http://en.wikipedia.org/wiki/Automated_teller_machine)Whereas there are many advantages in the usage of Automatic Teller Machines, the users should take enough precautions in the safe keeping of the ATM cards provided to them and also to take precautions while doing transactions in ATMs.
Tips for Safe Use of Automatic Teller Machines(ATMs)
KEEP ATM CARD SAFE AND SECURE
i) Your card is very important and must be kept safely.
iv) Store the ATM card carefully so that the magnetic stripe does not get damaged.
v) Never leave your Card unattended at places like your car, in a hotel room, workplace or at the bar and restaurant you visit
vi)DO NOT bend the card.
vii)DO NOT place two cards with magnetic stripes together.
viii)Cancel unused cards and shred blocked cards.
ix)Immediately report any stolen or lost ATM card to the proper authorities
Security of ATM PIN
- Your ATM PIN must be kept very secret since ATM card can be misused by a person if he/she steals both the ATM card and the ATM PIN together.
- Change your PIN frequently; do not write it a piece of paper or on the face/back of the ATM card but memorise it.
- Select a PIN that must be difficult to guess; avoid household numbers such as house number, car number, birthday etc.
- Never disclose your PIN to anyone including members of your family or relatives; if it gets divulged for some reason, change it immediately.
- Do not keep pin and card together under any circumstances.
Precautions to be taken while doing transaction with the card
- Avoid using ATMs in remote / unprotected areas and avoid ATMs adjacent to obvious hiding places.
- If you want us to alert you whenever a transaction takes place on your account / Credit Card, you can register for the Bank's SMS Service by registering your Mobile number.
- Shield the screen and keyboard so anyone waiting to use the ATM cannot see you enter your PIN or transaction amount.
- Be careful when people you do not know offer to help you at an ATM.
- If you notice anything suspicious at the ATM you want to use e.g. tampering with the card slot / numbers pad or any suspicious activity around the ATM area, do not use the ATM and report your concern to the Bank immediately.
- Do not force your card into the card slot or if you feel that the ATM machine is not working properly for any reason, press the “Cancel” key, take your card and report it to the Bank.
- If your card gets lost, captured or stuck in the ATM, report it to the Bank to block your card immediately.
- Make sure you get the card back after every transaction & only use it at ATMs /Point of Sale (POS) machines in reputed public locations / locations known to you.
- When using a drive in ATM, keep doors locked and passenger side and rear windows up.
- While using your card at a POS, ensure that the merchant swipes the card in your presence.
- Check your account balances and statements regularly to ensure your accounts have not been accessed by anyone else and to identify any unusual transaction(s).
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