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Jun 28, 2015

Last date for cover under Pradhan Mantri bima yojana is 31st August 2015

Last date for getting cover under PMJJBY and PMSBY is 31st August 2015. Kindly spread the message so that the lower class and lower middle class families get the cover in time to reap the benefit of the scheme.

Pradhan Mantri Suraksha Bima Yojana (PMSBY)




Pradhan Mantri Suraksha Bima Yojana is another Insurance scheme by Modi Goverment which will help the family to cope with the situation on death of  bread winner of family. The Scheme guidelines are as below;

Eligibility: Available to people in age group 18 to 70 years with bank account.
Premium:  Rs. 12 per annum which comes to just Rs.1 per month.
Payment Mode: The premium will be directly auto-debited by the bank from the subscribers account. Risk Coverage: For death due to accident  Rs.2 lakh payable to nominee. In case of loss of two eyes OR tow limbs Rs.2 lakh payable to assured. In case of loss of one eye OR one limb Rs.1 lakh payable to assured
Eligibility: Any person having a bank account can submit simple form to the bank and get enrolled for the scheme.
The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).But if the proceeds from insurance policy exceed Rs.1 lakh , TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.

Pre 2005 printed currency notes

Now, you can exchange the Pre 2005 printed currency notes with any bank branches till December 31, 2015 against June 30,2105 as decided earlier. Kindly exchange the notes with your bank within the time limit or else you may not be in a position to do so post December 31, 2015.

Jun 7, 2015

Pradhana Mantri Jeevan Jyoti Bima Yojana ( PMJJBY )

                              PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA



 The scheme will be a one year cover, renewable from year to year, Insurance Scheme offering life insurance cover for death due to any reason. The scheme would be offered / administered through LIC and other Life Insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with Banks for this purpose. Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.

Scope of coverage: All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only. Aadhar would be the primary KYC for the bank account.

Enrolment period: Initially on launch for the cover period 1st June 2015 to 31st May 2016, subscribers will be required to enroll and give their auto-debit consent by 31st May 2015. Late enrollment for prospective cover will be possible up to 31st August 2015, which may be extended by Govt. of India for another three months, i.e. up to 30th of November, 2015. Those joining subsequently may be able to do so with payment of full annual premium for prospective cover, with submission of a self-certificate of good health in the prescribed proforma.

Enrolment Modality: The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated savings bank account on the prescribed forms will be required to be given by 31st May of every year, with the exception as above for the initial year. Delayed enrollment with payment of full annual premium for prospective cover may be possible with submission of a self certificate of good health. Individuals who exit the scheme at any point may re-join the scheme in future years by submitting a declaration of good health in the prescribed proforma. In future years, new entrants into the eligible category or currently eligible individuals who did not join earlier or discontinued their subscription shall be able to join while the scheme is continuing, subject to submission of self-certificate of good health.

Benefits: Rs.2 lakhs is payable on member’s death due to any reason Premium: Rs.330/- per annum per member. The premium will be deducted from the account holder’s savings bank account through ‘auto debit’ facility in one installment, as per the option given, on or before 31 st May of each annual coverage period under the scheme. Delayed enrollment for prospective cover after 31st May will be possible with full payment of annual premium and submission of a self-certificate of good health. The premium would be reviewed based on annual claims experience. However, barring unforeseen adverse outcomes of extreme nature, efforts would be made to ensure that there is no upward revision of premium in the first three years.

Eligibility Conditions:
a) The savings bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme.
b) Individuals who join after the initial enrollment period extending up to 31st August 2015 or 30th November 2015, as the case may be, will be required to give a selfcertification of good health and that he / she does not suffer from any of the critical illnesses as mentioned in the applicable Consent cum Declaration form as on date of enrollment or earlier.

Master Policy Holder: Participating Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process shall be finalized by LIC / other insurance company in consultation with the participating bank.

 Termination of assurance: The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under:
1) On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).
2) Closure of account with the Bank or insufficiency of balance to keep the insurance in force.
3) In case a member is covered under PMJJBY with LIC of India / other company through more than one account and premium is received by LIC / other company inadvertently, insurance cover will be restricted to Rs. 2 Lakh and the premium shall be liable to be forfeited.
4) If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium and a satisfactory statement of good health.
5) Participating Banks shall remit the premium to insurance companies in case of regular enrolment on or before 30th of June every year and in other cases in the same month when received.

Administration: The scheme, subject to the above, will be administered by the LIC P&GS Units / other insurance company setups. The data flow process and data proforma will be informed separately. It will be the responsibility of the participating bank to recover the appropriate annual premium in one installment, as per the option, from the account holders on or before the due date through ‘auto-debit’ process. Members may also give one-time mandate for auto-debit every year till the scheme is in force. 3 Enrollment form / Auto-debit authorization / Consent cum Declaration form in the prescribed proforma shall be obtained and retained by the participating bank. In case of claim, LIC / insurance company may seek submission of the same. LIC / Insurance Company reserves the right to call for these documents at any point of time. The acknowledgement slip may be made into an acknowledgement slip-cum-certificate of insurance. The experience of the scheme will be monitored on yearly basis for re-calibration etc., as may be necessary.

Appropriation of Premium:
1) Insurance Premium to LIC / insurance company : Rs.289/- per annum per member
2) Reimbursement of Expenses to BC/Micro/Corporate/Agent : Rs.30/- per annum per member
3) Reimbursement of Administrative expenses to participating Bank: Rs.11/- per annum per member

The proposed date of commencement of the scheme will be 1st June 2015.The next Annual renewal date shall be each successive 1 st of June in subsequent years. The scheme is liable to be discontinued prior to commencement of a new future renewal date if circumstances so require.

Feb 8, 2015

Government to infuse Rs.6990 crore to 9 PSB's

The Government will soon infuse Rs.6990 crore to following 9 Public Sector Undertaking Banks.

State Bank of India Rs.2970 crore
Bank of Baroda Rs.1260 crore
Punjab National Bank Rs.870 crore
Canara Bank Rs.570 crore
Syndicate Bank Rs.460 crore
Allahabad Bank Rs.320 crore
Indian Bank Rs.280 crore
Dena Bank Rs.140 crore
Andhra Bank Rs.120 crore

This is first time that the Government is using efficiency parameter to distribute the capital. The parameter used are 

a) Weighted Average Return on Asset for all PSB's for the last three years will be calculated and those above the average has been considered.

b) Return on equity for last financial year will be calculated and those better than average have been considered.

This year the Government has allocated Rs.11600 crore for capital infusion in PSB's

Feb 3, 2015

Wage Settlement talks dtd 03.02.2015







V/s








During the wage settlement talks held between UFBU and IBA today, IBA improved the offer by 0.5% to 13%. This was not accepted by UFBU which had come down from 30 % to 19%. Hence they revived their strike programme which will be observed from 25th February 2015 to 28th February 2015 continued by Indefnite strike from 16th March 2015.

RBI disappoints


6th Bi-monthly monetary policy dtd 3rd February 2015









RBI Governer Mr. Raghuram Rajan disappointed market by not reducing the Bank Rate which was expected at 25 basis points. In the Sixth Bi-monthly monetary policy statement for 2014-15 announced today RBI
  • kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.75 per cent;
  • kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL);
  • reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their NDTL with effect from the fortnight beginning February 7, 2015;
  • replaced the export credit refinance (ECR) facility with the provision of system level liquidity with effect from February 7, 2015;
  • continued to provide liquidity under overnight repos of 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and
  • continue with daily variable rate term repo and reverse repo auctions to smooth liquidity.
Consequently, the reverse repo rate under the LAF will remain unchanged at 6.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 8.75 per cent.

Feb 2, 2015

DA for Bankers from Feb 15 to April 15

Based on CPI announced for Oct, Nov and Dec 2014, the DA will crease by 2 slabs for bankers for Feb, Mar, Apr 2015. The new DA will be 110.10% (+0.3%).

Dec 25, 2014

Corporation Bank - Share Split

Corporation Bank will split its shares from face value of Rs.10 to Rs.2. January 23 will be the record date for the same.

Negotiate - not agitate - IBA tells Bank Unions !!!!!!!!!!!!!

IBA (Indian Banks Association) which represents Bank Management and the Government tells Bank Unions to Negotiate and not agitate !!!!!!!!!!!!!!!.
Mr. Tanksale said "the ninth bipartite settlement was as exception" wherein settlement was arrived at 17.5%. 
This message comes from the IBA after 26 months of negotiation with the unions, If the matter cannot be resolved by IBA even after 26 months of negotiation with the Bank Unions. Then, should the bank employees to wait for another 34 months doing negotiation ???   What was IBA doing in all the rounds of negotiation till date.  
Was Mr. Tanksale right in calling 9th Bipartite settlement abberation wherein 17.5% increase (for a total  period of 5 years) was given. Earlier wage settlements seen the increase of 13%. Then where is abberation.  Does Mr. Tanksale thinks they have given  25% increase in salary ? 
 He also informed “In the current wage settlement, a hike of 11 per cent on salary and allowances has been offered, based on the paying capacity of all the banks, lower profitability, higher requirements for provisions and further capital requirement under Basel-III, translating into 12.5 per cent on the balance sheet cost. This too is unaffordable to some of the banks.”
IBA said the issues regarding wage negotiation deliberated in the Negotiating Committee of the IBA were further discussed in a larger forum — Managing Committee of IBA — and the Chairmen of all the banks felt the demand for 23 per cent increase made by the Unions/Associations is unaffordable, illogical, exorbitant and irrational.
Its surprising that the IBA-Governemnt is thinking miles ahead to increase salary of profit making PSBs. But when the government itself is loss making (due to fiscal deficit) how its paying salary for its Governement servants and how Pay commissions are formed in advance for them ????

Gyan Sangam of Mr. Narendra Modi

Prime Minister Mr. Narendra Modi will have discussions with chiefs of public sector banks and financial instituitions at Pune on 2nd and 3rd of January 2015 to draw action plan for banking reforms. The programme is being called " Gyan Sangam " Apart from Mr. Modi other dignitories who are expected to attend the discussions are Mr. Arun Jaitley, finance minister, Mr. Raghuman Rajan, RBI Governer, Mr.Jayant Sinha, Minister of State for Finance, Mr. Rajiv Mehrishi, Finance Secretary etc.

Major points on which discussions will be held include;

1) Consolidation of banking sector
2) Capitalisation needs of banking sector
3) Risk management
4) Recovery management
5) Human Resources Management

Dec 23, 2014

Wage Revision

Bank Unions action plan for early settlement of Wage Revision;

The wage revision of above 10 lakhs bank employees is due from 1st November 2014. The IBA which represents the Bank Management and Government is very adament to the proposal of wage hike of 25% put by the bankers. IBA is not moving a inch and glued to its 11% hike in wages which the bank unions have opposed. There were strikes by unions on various dates to preasurise the government which have yielded no results till date.

The bank unions have put forth the following plans during January 2015 to March 2015 for the wage revision of the employees;

1) One day strike on 7th January 2014.

If above do not yield any result, then

2) Four day strike from 21st January 2014 to 24th January 2014.

If above also do not yield any result, then

3) Indefinite strike from 16th March 2015

We wish best of luck and early wage settlement for bank employees.

Pre-2005 Currency notes

Now, RBI has informed that Pre-2005 currency notes can be deposited at bank branches till 30th June 2015. Earlier RBI has set 31st December 2014 as the deadline to do so. Now, with extended time you can deposit Pre-2005 with banks at ease and you will get hundred percent value. But don't keep on waiting for RBI to extend the deadline once again. Due it early.