Inflation Indexed National Savings Securities‐ Cumulative, 2013

The Government of India will be issuing Inflation Indexed National Savings Securities-Cumulative, 2013. What are these ? Till now the deposits you used to keep with the banks and other financial instituitions will we having fixed rate of interest for a fixed tenure. They were not taking into account the Inflation factor into account. Now the government wants to give returns that is 1.5% above the rate of inflation. So you will be sure that you are beating inflation and getting a better return. Let us get to details of the offer;

1. The issue will be from December 23, 2013 to December 31, 2013. The Government of India reservers the right to close the issue earlier.

2. The issue will be in the form of Bonds.


3. The bonds may be invested by
a) An individual in his individual capacity, on joint basis, on anyone or survivor basis, on behalf of minor as father/mother/legal guardian
b) A HUF (Hindu Undivided Family)
c) “Charitable Institution” to mean a company registered under Section 25 of the Indian Companies Act 1956 OR an institution which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force OR any institution which has obtained a certificate from Income Tax Authority for the purposes of Section 80G of the Income Tax Act, 1961.
d) “University” means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be an University for the purpose of that act.

4. There is limit on investment. The minimum limit is Rs.5,000/- and maximum limit is Rs.5,00,000/- per applicant per year.

5. The interest on the Bonds will not get any tax benefit and hence is taxable under Income Tax Act, 1961 according to relevant tax status of the bond holders.

6. The bonds will be issued at par. Minimum amount of Rs.5000 (face value) and in multiples thereof.

7. The applications can be made in cash/draft/cheque/online through internet banking. The cheques and drafts should be in favour of the bank (receiving office) and payable at the place where the application is tendered.

8. The date of issue of bonds will be date of receipt of funds/realization of draft/cheque at the receiving office.

9. The bonds will be issued in the form of Bonds Ledger Account (BLA) and held with Reserve Bank of India. A certificate of holding in specified form will be issued to the holder of bonds.

10. The applications for the bonds in the form of Bonds Ledger Account will be received at
a) Branches of State Bank of India, Associate Banks, Nationalised Banks, three private sector banks (i.e. HDFC Bank Ltd., ICICI Bank Ltd., AXIS Bank Ltd.) and SHCIL during their working hours.
b) Any other bank or number of branches of the banks and SHCIL where the applications will be received as specified by the Reserve Bank of India in this behalf from time to time.

11. The nomination facility for the bond holders are available.
a) A sole holder or a sole surviving holder of a Bond(s), being an individual, may nominate in the Form annexed to this notification or as near thereto as may be, one or more persons who shall be entitled to the Bonds and the payment thereon in the event of his/her death.
b) Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds shall rest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
c) No nomination shall be made in respect of the Bonds issued in the name of a minor.
d) A nomination made by a holder of Bonds may be varied by a fresh nomination as near thereto as may be, or may be cancelled by giving notice in writing to the Receiving Office in the Form annexed to the notification.
e) Every nomination and every cancellation or variation shall be registered at the Reserve Bank of India through the authorised bank and shall be effective from the date of such registration.
f) If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/amount due in the event of his/her death during the minority of the nominee.

12. The bonds shall be transferable to nominee (s) on the death of holder (only individual/s)

13. The bonds will bear interest at the rate of 1.5% (fixed rate) per annum + inflation rate calculated with respect to final combined Consumer Price Index [(CPI) Base; 2010 = 100]. Final combined CPI will be used with a lag of three months to calculate incremental inflation rate (i.e. final combined CPI for September would be used as reference CPI for all days of December). Interest will be compounded with half‐yearly rests and will be payable on maturity along with the principal.

14. The bonds are not traded in secondary market. The good point is that the bonds can be kept as collateral with the banks to get loans frombanks, Financial Institutions and Non‐Banking Financial Company (NBFC). The lien to that effect will be marked in the depository (RBI) by the authorised banks.

15. The bonds are repayable on expiration of 10 years from the date of issue. The investor will be advised by the authorised bank one month before maturity regarding the ensuing maturity of Bonds advising them to provide a Letter of Acquaintance, confirming the NEFT/NECS account details, etc. to the authorised bank. If everything is in order, the investor will be paid within maximum five days of the maturity.

16. Premature repayment/redemption before the maturity date is allowed after one year of holding from the date of issue for senior citizens, i.e. 65 and above years of age and for all others, after 3 (three) years of holding, subject to the penalty charges at the rate of 50% of the last coupon payable. Early redemption to be allowed only on coupon date.

Your Credit Card dues and NPA status

The Reserve Bank of India in its notification dated 20th December 2013 has advised that a credit card account will be treated as NPA (Non-Performing Asset) if the minimum amount due as mentioned in the credit card statement for the month is not paid fully within 90 days from the next statement date. It has also clarified that the gap between the two statements should not be more than a month.

Invest in Corporation Bank 1111 deposit

Corporation Bank has introduced a new deposit of 1111 days. This is limited period offer from the bank and the bank is offering 9.11% p.a. for the same. The deposit can be fixed or cumulative. But the Senior Citizen will not be getting additional rate on the same.

Wage Settlement of Bank employees

UBFU on its meeting held on 23rd December 2013 on wage settlement of Bank Employees which is pending for more than one year without any progress  decided to go on 48 hours strike from 20th January 14 to 22nd January 14. Its also to be noted that the employees went on one day strike on 18th December 2013.

Notes with writings

There is rumors that Banks will not accept currency notes with any writings on it from 1st January 2014. Its also seen that many customers are calling their bank to know the matter and many have promptly deposited those currency notes at banks or exchanged them. But banks have not received any communications till date regarding the non-acceptance on currency notes with writings on it. But if implemented it will be good move.

Wage settlement for Bankers - update on meeting dtd 20 Nov 2013

The meeting held on 20th November 2013 by UFBU at Chennai decided to launch agitation programme to early settlement of demands. They decided that One day nationwide strike will be observed on 19th December 2013. The UFBU will meet on 23rd December 2013 to chalk out further action to be taken.

For Wage settlement issues and other banking related matters your can visit below mentioned website;

http://www.allbankingsolutions.com/

Bank of Maharashtra Quarterly result

Bank of Maharashtra reported disappointing results with 90% growth in its Gross NPA at Rs.2450.48 crore (YoY) and 71.78% decrease in its Net Profit at Rs.46.85 crore (YoY). The Non-Interest Income grew 3.31% at Rs.183.07 crore. Net NPA stood at 1.76% compared to 0.88% YoY. The Capital Adequacy Ratio stood at 10.71%.

RBI monetory policy

Mr. Raghuram Rajan, the RBI Governer in his Monetray Policy review announced today REPO rate is hiked by 25 bps to 7.75%, CRR is left unchanged at 4%, Bank rate is reduced to 8.75%

YES Bank Second Quarter Results

Yes Bank announced its second quarter results today. The Net Profit of the bank grew 21.3% to Rs.371.1 crore (YoY). Non Interest Income (NII) grew to Rs.446.1 crore with growth of 61.2% (YoY). The gross NPA of the bank stood at 0.28% while Net NPA stood at 0.04%. The Return on Equity stood at 23.1% and Return on Assets stood at 1.5%.

The Total Advances of the bank stood at Rs. 47717 crore while deposits stood at Rs.67575.1 crore as on 30 September, 2013. Current and Savings Account (CASA) deposits stood at Rs. 13776 crore taking the CASA ratio to 20.4%.

RTGS 2013

RBI has introduced new RTGS system  with effect from 19th October 2013. Know all about the same by clicking and downloading the below link.


RTGS 2013

Wage settlement meeting dtd 11.10.2013

IBA not came out with any proposal in todays meeting as assured. Other issues discussed. UFBU calls for demonstration on 22 Oct 13 for early settlement.

SBI new Chairperson

Arundhati Bhattacharya is the new Chairperson of State Bank of India. 57 years old Arundhati Bhattacharya assumed office today only. She will head the bank for 3 years. She is also the first chairperson of the Big Brother of Indian Banks, State Bank of India. She was working as Manging Director and Chief Financial Officer of the bank prior to elevation.

Next round of wage negotiations on 11th October 2013

Almost 11 months have passed since the new wage settlement is due for nearly 10 lakh bank employees but still no headway is reached till date. The only item that UFBU and IBA has agreed till date is on Merger of DA. With the elections fast reaching this tortise walk will only delay the wage talks. Its high time that UFBU and its members take serious view and stern steps to clinch the settlement for its eager members. The next round of wage negotiation is fixed on 11th October 2013.

New CMD of Corporation Bank

Mr. S.R.Bansal assumed charges as CMD of Corporation Bank on 5th October 2013. Previously he was ED at Punjab National Bank

IDBI Bank 10th Foundation Day

Today IDBI Bank is celebrating its 10th Foundation Day. Previously it was an financing body for development of Industries known as Industrial Development Bank of India. Converted to general bank and changed name to IDBI Bank. As the government holds 51% shares of the bank its public sector bank. But it is working as private sector bank only.Fruitful 9 years of dedicated service to the nation has been rendered. We congratulate the bank on its 10th foundation day.

Result Season to start

Result season for the banking sector for half year ending Sept. 2013 will kick off with HDFC Bank and IndusInd Bank declaring their results on 15th October 2013.

Federal Bank - Stock Split

Federal Bank is splitting its shares from face value Rs.10 to Rs.2. The same will be effective from 17.10.2013.

Quarter end result season will start soon

The Half yearly works of the Banks is over by now. Within next few days they will start flashing their business figures and within next 15 days their results season will start. Keeping in view the macro economic data the results will be below the expecations and the NPA is expected to rise. Let us hope that our banks will be in good health so that our money will be safe.

Bank of Baroda Revises interest on retail deposits wef Ist October 2013

Here is the rate of interest applicable on retail deposits at Bank of Baroda with effect from 1st October 2013. (deposits of upto Rs.1 crore)

7 to 45 days 4.5%
46 days to 90 days 6.5%
91 days to 180 days 7.3%
181 days to 270 days 7.75%
271 days to less than 1 year 8.25%
1 year and above till 10 years 9.05%

UCO Bank Festive Offer on Housing and Vehicle loans

UCO Bank is offering 50% concession in processing charges on housing loan during its Grand Festive Offer. The offer period has already started on 20/09/2012. The bank is offering  10.50% on Housing loans. The vehicle loans are offered at 10.75%. Processing charges are fully waived for vehicle loans. If customer avails both housing and vehicle loans during offer period then processing charge is fully waived for both loans.