Indian Overseas Bank to waive minimum balance for savings accounts

Indian Overseas Bank to waive minimum balance for savings accounts 

The bank had already waived minimum balance charges for schemes like PMJDY, BSBDA, Small Accounts, IOB SB Salary Package, IOB Sixty Plus, IOB SB Pensioner Scheme and IOB SB Govt Account

 By BL Chennai Bureau Updated - September 30, 2025 at 07:46 PM.

 Raghunathan SR / The Hindu | Photo Credit: RAGHUNATHAN SR

Chennai-based Indian Overseas Bank (IOB) has announced a waiver of penal charges for non-maintenance of Minimum Average Balance (MAB) in its Saving Account (SB-Public), effective from October 1, 2025.

The decision aims to provide relief to customers and makes the banking experience easier.

“We are very happy to announce this waiver, which will provide significant relief to our account holders. This decision reflects our commitment to customer-centricity and financial inclusion. Our goal is to make banking more convenient and hassle-free for our customers,” said Ajay Kumar Srivastava, Managing Director & CEO, Indian Overseas Bank.

The bank had already waived minimum balance charges for schemes like PMJDY, BSBDA, Small Accounts, IOB SB Salary Package, IOB Sixty Plus, IOB SB Pensioner Scheme and IOB SB Govt Account.

The penal charges for premium savings account schemes—including SB-MAX, SB-HNI, SB Prime, SB Priority, SB Privilege, NRI Elevate, NRI Privilege and NRI Signature—will remain unchanged.

The charges for the period up to September 30, 2025, including any shortfall, will continue to be levied as per existing rules.

Cheques stolen from bank drop box, encashed

Cheques stolen from bank drop box, encashed 

TIMES NEWS NETWORK. 27.07.2025

Coimbatore : Police are searching for a man who stole cheques from a bank drop box and deposited them in his account. Sathish, a customer of a private bank, deposited on July 5 two cheques worth a total of ₹14,000inthebank’sRSPuof ₹14,000inthebank’sRSPuof ₹14,000inthebank’sRSPuram branch collection drop box. When the amount was not credited to his account even after six days, Sathish visited the bank. Upon checking the status of the cheque, bank’s branch manager Ramkumar found the amount was credited to a different account, and filed a complaint. Police obtained CCTV camera footage showing a man stealing the cheque from the drop box, which was later deposited into another account. “It is highly unusual to deposit cheques issued in someone else’s name. Involvement of bank staff cannot be ruled out, as such operations would be difficult without insider assistance,” they said. Bank officials said, more than 10 cheques worth more than ₹1.4lakh have been stolen and encashed through different accounts. A case is registered, and further investigation is on.

RBI eases KYC norms for customer convenience

RBI eases KYC norms for customer convenience

T. Ashokamithran

Mumbai  13.06.2025

Reserve Bank of India (RBI) eased the Know Your Customer (KYC) norms for convenience of the customers, according to a circular released June 12.

Banks shall complete the KYC updation of customers who are flagged as ‘low risk’ whose KYC have not been updated, within a year or June 2026, whichever is later. Moreover, the Central bank also introduced the facility to upload KYC through video. The facility is called Video based Customer Identification Process (V-CIP) for customer onboarding and information updation.

The RBI also said banks shall enable its banking correspondents to undertake the KYC updation activity. These facilities shall be provided to reactivate inoperative accounts, RBI said in a separate circular.

Banks have been advised to reach out to semi-urban and rural areas and set up camps to complete the process.

Updation an issue

The circular becomes important at a time when a lot of PMJDY accounts were reportedly inoperative due to difficulties in KYC updation and eligible beneficiaries for Direct Benefit Transfer-based (DBT) schemes faced snags in withdrawing money.

“Simplifying KYC while maintaining regulatory safeguards will enable the ecosystem to onboard customers faster, reduce friction, and accelerate the adoption of formal financial services,” said Payments Council of India (PCI) in its release.

'No penalty on non-maintenance': Canara Bank

'No penalty on non-maintenance': Canara Bank waives minimum balance rule on all savings accounts Canara Bank is set to eliminate minimum balance requirements for all savings accounts starting June 1, 2025, benefiting a wide range of customers. 

This move, a first among major public sector banks, removes penalties for not maintaining the Average Monthly Balance (AMB) across all account types, including regular, salary, and NRI accounts.

TOI Business Desk     TIMESOFINDIA.COM

Jun 1, 2025, 13:16 IST

NEW DELHI: Canara Bank has announced that it will no longer require savings account holders to maintain a minimum balance, in a big relief for customers. Starting June 1, 2025, all types of savings bank (SB) accounts, including regular, salary, and NRI accounts, will have zero penalty for not maintaining the Average Monthly Balance (AMB). Sharing a post on X, the bank said, "Feel the freedom, bank the difference. Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance. 

Applicable to all Savings Bank Account holders!" With this move, Canara Bank becomes the first major public sector bank to offer true zero-balance savings accounts across the board. Starting June 1, 2025, Canara Bank customers will no longer face penalties for not maintaining the minimum balance in their savings accounts. The bank earlier announced this major update in a press release issued on Saturday. "With this new policy, all Canara Bank savings bank account holders will now enjoy true "no penalty on minimum balance" for all savings bank accounts free from any average monthly balance-related penalties or fees," the bank added. 

Previously, customers had to maintain an AMB of Rs 2,000 in urban branches, Rs 1,000 in semi-urban branches, and Rs 500 in rural branches, failing which penalty charges were applied. The new policy removes all such charges, making banking more inclusive and accessible. The change is expected to benefit millions, including salaried employees, senior citizens, students, NRIs, and new account holders, making everyday banking easier and penalty-free. (This is a top Google Trends topic)

Canara Bank abolishes minimum balance requirement for all savings accounts from June 1

Canara Bank abolishes minimum balance requirement for all savings accounts from June 1 

The new policy comes into effect from June 1, 2025, and applies to all categories of savings bank accounts, including regular, salary, and NRI accounts.

 MONEYCONTROL NEWS JUNE 01, 2025 / 12:05 IST

The new policy eliminates these charges entirely, a move the bank said is intended to make banking more inclusive and accessible. In a significant move aimed at enhancing financial inclusion and customer convenience, Canara Bank has announced that it will no longer impose penalties for non-maintenance of minimum balance in savings accounts. The new policy comes into effect from June 1, 2025, and applies to all categories of savings bank accounts, including regular, salary, and NRI accounts.

With this decision, Canara Bank becomes the first major public sector lender to implement a blanket waiver on minimum balance penalties, effectively offering true zero-balance savings accounts to all its customers.

“Feel the freedom, bank the difference. Starting 1st June 2025, Canara Bank offers no penalty on non-maintenance of minimum balance,” the bank said in a post on social media platform X, reinforcing its customer-first approach.

Under the previous structure, account holders were required to maintain an Average Monthly Balance (AMB) of Rs 2,000 in urban branches, Rs 1,000 in semi-urban branches, and Rs 500 in rural branches. Failure to meet these thresholds attracted penalty charges.

The new policy eliminates these charges entirely, a move the bank said is intended to make banking more inclusive and accessible. “With this new policy, all Canara Bank savings bank account holders will now enjoy true 'no penalty on minimum balance' for all savings bank accounts free from any average monthly balance-related penalties or fees,” the bank noted in its official communication.

The decision is expected to benefit a broad segment of customers, including students, salaried professionals, senior citizens, NRIs, and first-time account holders.

MONEYCONTROL NEWS

Banks cannot withhold no dues certificate due to undischarged loan for different property: HC

Banks cannot withhold no dues certificate due to undischarged loan for different property: HC

Mohamed Imranullah S. CHENNAI 25.05.2025

In a significant verdict, the Madras High Court has held that banks cannot withhold title deeds of a movable/immovable property and refuse to issue no dues certificate even after discharge of the entire loan amount, with interest, just because the principal borrower happened to be a co-borrower/guarantor in another loan, for a different property, that remained undischarged.

Justice D. Bharatha Chakravarthy set aside an order passed by the Banking Ombdusman in favour of IndusInd Bank on March 19, 2024 and directed the latter to issue the no dues certificate and the title deeds of a LPG tanker lorry to its owner S. Balaji. He, however, granted liberty to the bank to approach the appropriate forum for attaching the tanker lorry in accordance with law.

The orders were passed while disposing of a writ petition filed by the lorry owner against the order passed by the Banking Ombusman in favour of the bank.

Though the Ombudsman, serving under the Reserve Bank of India, too filed a counter affidavit justifying the decision taken by it as well as the bank, the judge refused to take the counter on file since the ombudsman was akin to a tribunal.

“It is a body set up to adjudicate disputes with specific impetus on resolving issues between the customers and the banks. Thus, it is not expected to defend the order passed by it and it is for the second respondent (IndusInd Bank) to defend the same and accordingly, I reject the counter affidavit and this court is not considering any of the contentions raised by the first respondent (Ombdusman) in the counter,” he wrote.

Further, the judge found that the bank was primarily relying upon a clause in the loan agreement which creates a lien for the bank in all other loans taken by the borrower. However, the judge found that the present writ petitioner was a principal borrower with respect to the tanker lorry but not so with respect to the loan obtained for another vehicle in which he was only a co-borrower/guarantor.

“The right of the bank to combine the accounts can be exercised if only the loan accounts belong to that of the same person in the same capacity... The repayment of a loan is primarily by the borrower and the liability of the co-borrower is triggered only by the default of the principal borrower,” he said.

Bank ex-staffer uses old login ID, swindles ₹5cr

Bank ex-staffer uses old login ID, swindles ₹5cr 

Shishir.Arya@timesofindia.com 27.04.2025

Nagpur : An outsourced employee who quit his job at apublic sector undertaking bank continued using his login to claim fake tax returns in the name of people who did not even possess an account there. He inserted their PANs against bank details to claim refunds. The fraud is being pegged at Rs 5 crore. The I-T department detected the fraud and sent notices to the bank and its staff, sources said. 

The accused, who handled TDS deductions for deposit holders on behalf of PSU banks, did not surrender his login access after quitting the job. He traced depositors, mainly senior citizens, who did not submit their PAN to the bank. One of the reasons was that their income was too low to be taxed. He accessed the system and put PANs and other details of persons known to him in the bank’s accounts and later claimed a refund with the I-T department, sources said. 

There are several people who earn interest on their FDs. The tax payable on it is deducted at source by the banks which can be claimed later as refund if the amount exceeds the actual tax liability. In this case, the conman meticulously chose accounts where PANs were missing. He used the other PANs to submit the returns instead, the source said.

How did you open customer’s locker without consent? U’khand HC to bank

How did you open customer’s locker without consent? U’khand HC to bank

Pankul.Sharma@timesofindia.com 16.04.2025

Dehradun : Uttarakhand high court on Tuesday asked a public sector bank to clarify which rules permit its officials to break open a customer’s locker without consent. It came after a complaint by an 86-year-old woman, Sushila Devi, who said her locker at the Bank of Baroda’s main branch in Dehradun was opened and jewellery removed in her absence in 2022. Her son, Anoop Kumar, said, “My mother kept 730 grams of gold and 950 grams of silver jewellery in the locker. Despite filing an FIR, police have not taken any action.” Kumar, the coholder, visited the bank in 2024 and discovered the locker had already been forced open. 

When he enquired about the contents, bank officials failed to give a satisfactory explanation, prompting him to file an FIR against them. Subsequently, an employee from the bank approached the court seeking to quash the FIR. His counsel said the locker was opened after multiple notices went unanswered, and that an inventory of contents was prepared and sealed at the head office. 

However, Kumar said they never received any such communication from the bank. “When I asked bank officials, they said the documents have been misplaced,” he told TOI. Kumar added that the jewellery included 21 ornaments “of high sentimental value”, some dating back to 1875. An FIR was registered in Jan this year at Dalanwala police station, alleging robbery by the concerned bank officials. During the hearing, justice Pankaj Purohit asked the bank staff ’s counsel to present the rules authorising forcible opening of locker and explain how the valuables would be returned to the complainant

Two-day bank strike deferred

Two-day bank strike deferred 

TIMES NEWS NETWORK 23.03.2025

Ahmedabad : In a significant relief to people, the banking associations have decided to postpone the two day nationwide nationalised banks strike on March 24 and 25 after discussions with the central govt over their demands. Janak Rawal, general secretary of the Mahagujarat Bank Employees Association, said, “The conciliation meeting between the United Forum of Banks Union, Central Labour Commissioner (CLC), Indian Bank Association (IBA), and Department of Finance Secretariat (DFS) took place on March 21 in Delhi. It was a positive meeting, and another meeting will be held in the third week of April. In view of this positive development, it was felt necessary to postpone the strike for a month or two. Thus, our strike is postponed.” 

The strike was planned for Monday and Tuesday, and it would have resulted in a four-day bank closure. The unions are demanding adequate recruitment in all cadres, regularisation of temporary employees, implementation of a fiveday work week, and job security. They have also sought the withdrawal of recent govt directives on performance-linked incentives, amendments to gratuity limits, and a halt to outsourcing permanent banking jobs.

Deposits up to ₹5L safe, RBI assures New India customers

Deposits up to ₹5L safe, RBI assures New India customers 

TIMES NEWS NETWORK 15.02.2025

Mumbai : The Reserve Bank of India (RBI) has appointed Shreekant, former chief general manager of State Bank of India (SBI) as ‘Administrator’ to manage the affairs of the New India Cooperative bank during the moratorium while restrictions are in force on withdrawals by account holders. It has also appointed a Committee of Advisors, which includes Ravindra Sapra (former general manager, SBI) and Abhijeet Deshmukh (chartered accountant), to assist the administrator during the transition. RBI has assured small savings account holders that their investments are safe. It said, “eligible depositors would be entitled to receive deposit insurance claim amount of their deposits up to a monetary ceiling of Rs 5,00,000 per deposit from the Deposit Insurance and Credit Guarantee Corporation (DICGC), as applicable under the provisions of the DICGC Act, 1961.” Deposits coming under the Rs 5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors (see graphic). The likelihood of depositors getting their full money would depend on the extent of losses reported by the bank for March 2025. 

The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. 

The bank reduced its accumulated losses from Rs 30.7 crore in FY23 to Rs 22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by Rs 155 crore (11.7%) to Rs 1174.8 crore as of Mar 31, 2024. Deposits increased by Rs 30.5 crore (1.3%) to Rs 2,436 crore as of Mar 31, 2024. Advances portfolio stood at Rs 1175 crore, working capital was Rs 2,997 crore, and total reserve funds were Rs 292.9 crore.  Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI's directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI's prior approval.

 “The Bank has shifted its Virar Branch to nearby location after obtaining necessary permission from RBI. The Bank has merged its Shanti Park, Mira Road Branch with Poonam Gar den, Mira Road Branch and Wakad, Pune Branch with Bibwewadi Branch to curtail rent & other administrative cost to improve profitability of the Bank,” said vice chairman, Gauri Bhanu in her letter to members last year. 

Senior citizens throng branches, say retirement funds lie locked 

Mumbai : Worried depositors thronged New India Cooperative Bank’s branches on Friday to inquire if their deposits were safe. New India branches had put up banners with a message from the “Acting CEO” saying amounts up to Rs 5 lakh were insured with Depositor Insurance and Credit Guarantee Corporation and would be released “in around 90 days.” But frustration was writ large on the faces of those gathered. There were questions regarding the fate of those with more than Rs 5 lakh parked. Cops were present at some outlets to keep the situation under control. Somashekhar Nair, a retired resident of Virar, said, "I have had an account with this bank for the last 20 years. I also receive some funds from LIC and other sources here. Now there is no one who can answer our queries. What is the govt doing? There is no one to speak to us from the bank. I need money for my medicines and other expenses, why should I beg from others when I have my own funds.” Ashok Bhosale, who retired from the BMC's Fire Brigade department, said he was deeply worried  because he had fixed deposits of 15 lakh in the Mulund branch. Outside the Vasai west branch, senior citizen Chandrashekar Pethe said the restrictions imposed on the bank will hurt the common man. “This is a social issue concerning all.” Another senior Shashikant Karambekar said he was confident of getting his money back as it was insured.

 In Thane, a school teacher who had a savings account, said she had some money in the New India account. Though her salary account was shifted to another bank, she had chosen to keep the account active. 

METAANALYSIS: The number of Urban Cooperative Banks declined to 1,472 in March 2024 from 1,502 a year ago. They had deposits of Rs 5,56,962 crore, of which Rs 3.71 lakh crore were covered under insurance. The rest were held by individuals above the limit. Cooperative banks account for 2.5% of total deposits in the country

RBI freeze on co-op bank hits depositors TIMES NEWS NETWORK Mumbai : Funds of lakhs of depositors and several cooperative housing societies are stuck with New India Cooperative Bank after it was placed under moratorium by RBI on Thursday. RBI said the restrictions were imposed “due to supervisory concerns” over “recent material developments in the bank, and to protect the interest of depositors...” The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing over alleged fund misappropriation by staff. A police source said a bank official would be called to record his statement. RBI has dissolved the bank’s board for mismanagement and appointed an administrator and a committee of advisors to restore operations and revive the bank. Bankers speculate that operations are likely to be taken over by another cooperative bank. Anxious depositors thronged branches across the Mumbai region. They were greeted by banners in the name of the “Acting CEO” that said deposits up to ₹5 lakh were insured and would be released “in around 90 days”. Deposits coming under the ₹5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors. However, no bank staff were available to answer queries. Pandurang Kamble, an account holder in the Virar branch for the last 22 years, said, “I have ₹5 lakh in fixed deposits. My salary is also credited in this account. If there is no refund after 90 days then what? My wife is a cardiac patient, what will happen to her once I break this news? Govt should step in and help us.” The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. The bank reduced its accumulated losses from ₹30.7 crore in FY23 to ₹22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by ₹155 crore (11.7%) to ₹1174.8 crore as of Mar 31, 2024. Deposits increased by ₹ 30.5 crore (1.3%) to ₹2,436 crore as of Mar 31, 2024. Advances portfolio stood at ₹1175 crore, working capital was ₹2,997 crore, and total reserve funds were ₹292.9 crore. Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI’s directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI’s prior approval.

RBI freeze on co-op bank hits depositors TIMES NEWS NETWORK Mumbai : Funds of lakhs of depositors and several cooperative housing societies are stuck with New India Cooperative Bank after it was placed under moratorium by RBI on Thursday. RBI said the restrictions were imposed “due to supervisory concerns” over “recent material developments in the bank, and to protect the interest of depositors...” The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing over alleged fund misappropriation by staff. A police source said a bank official would be called to record his statement. RBI has dissolved the bank’s board for mismanagement and appointed an administrator and a committee of advisors to restore operations and revive the bank. Bankers speculate that operations are likely to be taken over by another cooperative bank. Anxious depositors thronged branches across the Mumbai region. They were greeted by banners in the name of the “Acting CEO” that said deposits up to ₹5 lakh were insured and would be released “in around 90 days”. Deposits coming under the ₹5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors. However, no bank staff were available to answer queries. Pandurang Kamble, an account holder in the Virar branch for the last 22 years, said, “I have ₹5 lakh in fixed deposits. My salary is also credited in this account. If there is no refund after 90 days then what? My wife is a cardiac patient, what will happen to her once I break this news? Govt should step in and help us.” The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. The bank reduced its accumulated losses from ₹30.7 crore in FY23 to ₹22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by ₹155 crore (11.7%) to ₹1174.8 crore as of Mar 31, 2024. Deposits increased by ₹ 30.5 crore (1.3%) to ₹2,436 crore as of Mar 31, 2024. Advances portfolio stood at ₹1175 crore, working capital was ₹2,997 crore, and total reserve funds were ₹292.9 crore. Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI’s directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI’s prior approval.

TIMES NEWS NETWORK  15.02.2025

Mumbai : Funds of lakhs of depositors and several cooperative housing societies are stuck with New India Cooperative Bank after it was placed under moratorium by RBI on Thursday. RBI said the restrictions were imposed “due to supervisory concerns” over “recent material developments in the bank, and to protect the interest of depositors...” The action follows a spot inspection and a complaint filed by the bank’s chief compliance officer with the Economic Offences Wing over alleged fund misappropriation by staff. A police source said a bank official would be called to record his statement. 

RBI has dissolved the bank’s board for mismanagement and appointed an administrator and a committee of advisors to restore operations and revive the bank. Bankers speculate that operations are likely to be taken over by another cooperative bank. Anxious depositors thronged branches across the Mumbai region. They were greeted by banners in the name of the “Acting CEO” that said deposits up to ₹5 lakh were insured and would be released “in around 90 days”. Deposits coming under the ₹5 lakh insurance cover over 90% of the bank’s 1.3 lakh depositors. However, no bank staff were available to answer queries. Pandurang Kamble, an account holder in the Virar branch for the last 22 years, said, “I have ₹5 lakh in fixed deposits. My salary is also credited in this account. If there is no refund after 90 days then what? My wife is a cardiac patient, what will happen to her once I break this news? Govt should step in and help us.” The bank has 28 branches in Maharashtra and Gujarat. New India Cooperative Bank was founded as Bombay Labour Co-operative Bank in 1968 by late parliamentarian George Fernandes. It was renamed as New India Cooperative Bank after the Emergency. 

The bank reduced its accumulated losses from ₹30.7 crore in FY23 to ₹22.8 crore as of Mar 31, 2024. However, its advances portfolio decreased by ₹155 crore (11.7%) to ₹1174.8 crore as of Mar 31, 2024. Deposits increased by ₹ 30.5 crore (1.3%) to ₹2,436 crore as of Mar 31, 2024. Advances portfolio stood at ₹1175 crore, working capital was ₹2,997 crore, and total reserve funds were ₹292.9 crore. Under RBI directions, the bank is restricted from allowing withdrawals from savings or current accounts but can set off loans against deposits under certain conditions. Essential expenditures such as salaries, rent, and electricity bills are permitted as per RBI’s directions. It cannot also grant or renew loans and advances, make investments, incur liabilities (including borrowal of funds and acceptance of fresh deposits), disburse payments, enter into compromises, or dispose of properties or assets without RBI’s prior approval.

Banks to provide beneficiary account name look-up facility

Banks to provide beneficiary account name look-up facility

31.12.2024

The Reserve Bank of India (RBI) has asked the National Payments Corporation of India (NPCI) to develop a facility to allow customers using online fund transfer systems, Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT), to verify the name of the bank account to which money is being transferred before initiating the transaction to avoid mistakes and prevent frauds. All banks that are direct members or sub-members of RTGS System and NEFT System are advised to offer this facility by April 1, 2025, the RBI said in a circular on Monday. It also said the facility has to be made available to customers without any charge.pti

Director not liable if company check dishonored: Top court

Director not liable if company check dishonored: Top court 

21.12.2024

New Delhi : Supreme Court on Friday ruled that if a person repays a personal loan through a check signed by him as a director of a company, then he would not be liable to be prosecuted under Section 138 of the Negotiable Instruments Act if the check bounced. A man took a personal loan of ₹7 lakh and returned the amount through a check drawn on an account of Shilabati Hospital, Kolkata, of which he was a director. The check bounced and the creditor had initiated proceedings under Section 138 of the Act. HC quashed the proceedings and the creditor appealed in SC. A bench of Justices JB Pardiwala and R Mahadevan said Section 138, being a penal provision, has to be strictly construed and a man could face prosecution only if the cheque, issued by him from an account maintained by him, gets dishonored. It said since the check was drawn from the hospital's account, the man as director cannot be prosecuted under the NI Act. There are as many as 36 lakh check bouncing cases pending in various courts as of 2023. Writing a detailed judgment analyzing the provision threadbare, Justice Pardiwala said, “Section 138 of the NI Act clearly postulates that the check returned for insufficiency of funds should have been drawn by a person on an account maintained by him.” "It will amount to doing violence to the language of the statute if Section 138 of the Act is interpreted to mean that even if a person draws a check on an account not maintained by him, he shall be liable if the check is returned for insufficiency of funds. Such an interpretation will lead to absurd and wholly unintended results,” he said.

Public sector banks now safe, stable & healthy: Sitharaman

Public sector banks now safe, stable & healthy: Sitharaman 

Lok Sabha Passes Crucial Amendments To Banking Laws 

TIMES NEWS NETWORK 04.12.2024

New Delhi : Finance minister Nirmala Sitharaman on Tuesday said public sector banks are now safe, stable, healthy, and showing “exceptional” performance, as the Lok Sabha passed crucial amendments to banking laws, which among other things provides for up to four nominees in all bank accounts. The move is meant to ensure that successors of an account-holder or someone with a fixed deposit are not locked out as is often the case. Depositors can opt for either simultaneous nomination, where nominees are assigned specific percentage shares, or successive nomination, where nominees inherit in a predefined order. In addition, the Banking Laws (Amendment) Bill, 2024, also seeks to redefine “substantial interest” for directorships, which could increase to ₹2 crore instead of the current limit of ₹5 lakh.

Among the 19 amendments is the plan to transfer unclaimed dividends, shares, and bond interests to the Investor Education and Protection Fund (IEPF) for easier reclaim by rightful owners. “The proposed amendments will strengthen governance in the banking sector and enhance customer conve nience with respect to nomination and protection of investors,” Sitharaman said while moving the bill. Responding to the debate on the bill, she said the number of branches of scheduled commercial bank has increased to 1.6 lakh, at the end of S ept, compared to under 1.2 lakh in March 2014, with 3,792 branches added since Sept 2023. The bill also invited crit icism from opposition members. Samajwadi Party’s Rajeev Rai brought up the plight of borrowers facing credit issues due to poor communication from banks, while DMK’s Rani Srikumar questioned the  transparency of banking fees. Congress MP Karti Chidambaram spoke against the bill for not living up to the govt’s promise of “majestic reforms”. 

Patra’s remarks on Indira Gandhi trigger war of words in Lok Sabha 

New Delhi : BJP MP Sambit Patra’s remarks on former prime minister Indira Gandhi during the discussion on Banking Law (Amendment) Bill 2024 triggered a war of words between the treasury bench and opposition in the Lok Sabha, prompting the Speaker to urge the members to not digress from the topic. Participating in the debate on the Bill, Patra, recalling the Nagarwala scandal, said, “On May 24, 1971, Indira Gandhi called SBI’s Parliament Street branch manager and asked to release ₹60 lakhs immediately. A committee was set up that didn’t give any clearance to her. This is an iconic ‘phone banking example’.” DMK leader A Raja stood to raise his objection to the mention of the incident, saying it is a violation of Rule 94.

Notice to bank after employee held for ₹3cr fixed deposit theft

Notice to bank after employee held for ₹3cr fixed deposit theft

Is There No Accountability Of Any Bank When Money Siphoned Off: HC

Rosy.Sequeira@timesofindia.com 04.12.2024

Mumbai : Bombay high court on Tuesday issued a notice to HDFC Bank and banking regulator Reserve Bank of India (RBI) after it was informed that police had arrested an employee of the bank who allegedly siphoned off ₹3 crore from a customer’s fixed deposits. “Ultimately, people trust a particular bank ... A relationship manager takes a person for a ride. What faith now will people... a person have in the banking system?” asked Justices Revati Mohite-Dere and Prithviraj Chavan. 

The petition by Meenakshi Kapuria, 53, stated that her relationship manager, Payal Kothari, 27, broke her ₹3 crore worth of FDs and transferred the amount to fictitious accounts and from there into her own accounts. She received no SMS or email alerts. On Mon day, her advocate Rizwan Siddiquee said Kothari gained Kapuria’s trust and took blank signed cheques from her, assuring the money would be transferred to mutual funds, gold bonds, new fund offers, among others, earning her more than FDs. He said Versova police are putting pressure on Kapuria to settle the matter with Kothari. Prosecutor Kranti Hiwrale said police froze Kothari’s bank accounts, which had ₹30,000 in all.

The judges directed zonal DCP Dikshit Gedam to remain present. On Tuesday, Hiwrale said Kothari was arrested “this morning”. “Why does an arrest have to be made only when a complainant comes to the court? And you’re (police) asking parties to settle the matter?” asked Justice Mohite-Dere. Gedam said one more person could be arrested immediately. He said the investigation is transferred from PI Amol Dhole to senior PI Gajanan Pawar. Asked about action against Dhole, Gedam said a departmental enquiry will be initiated against him for  dereliction of duty. 

The judges questioned why Kapuria didn’t receive alerts. Gedam said Kothari changed her mobile number and email address in the bank’s records, “and that is why when the transaction was happening, the victim was not getting any kind of alerts”. The judges said, “This is extremely serious.” They enquired if the police did an investigation with the bank. Justice Mohite-Dere asked, “Is there no accountability of any bank when money is siphoned off under their nose?” Considering the manner in which the petitioner was cheated,” the judges directed HDFC Bank’s senior manager of Lokhandwala branch or regional manager in charge of Mumbai to be impleaded as well as RBI. Posting the next matter on Dec 13, the judges said they also want to also know the amount in Kapuria’s account before and after the Oct 30 FIR was lodged.

No Disciplinary Proceedings Can Be Initiated After Employee Retires Or After Extended Period Of Service : Supreme Court

No Disciplinary Proceedings Can Be Initiated After Employee Retires Or After Extended Period Of Service : Supreme Court

Yash Mittal

19 Nov 2024 11:45 PM

The Supreme Court invalidated the disciplinary proceedings initiated against a bank employee after the completion of his extended period of service. The disciplinary proceeding initiated after the superannuation or after the extended period of service cannot be sustained, the Court observed.

“As has been held by this Court on more than one occasion, a subsisting disciplinary proceeding i.e. one initiated before superannuation of the delinquent officer may be continued post superannuation by creating a legal fiction of continuance of service of the delinquent officer for the purpose of conclusion of the disciplinary proceeding (in this case as per Rule 19(3) of the Service Rules). But no disciplinary proceeding can be initiated after the delinquent employee or officer retires from service on attaining the age of superannuation or after the extended period of service.”, the bench comprising Justice Abhay S. Oka and Justice Ujjal Bhuyan said.

The Respondent-employee joined SBI as a clerk-typist in 1973 and progressed through the ranks to managerial positions. He was due for superannuation on 26.12.2003, having completed 30 years of service. SBI extended his service until 01.10.2010 for operational reasons.

Disciplinary proceeding against the respondent was not initiated on 18.08.2009 when the first notice to show cause was issued but were initiated only on 18.03.2011 when the disciplinary authority issued the charge memo to the respondent.

The Appellant-bank contended that since the notice to initiate the disciplinary proceedings was initiated before the end of the extended period, therefore the respondent-employee can't claim exemption from the disciplinary proceeding.

However, the respondent-employee challenged the proceedings as void ab initio, arguing they were initiated after his superannuation. He stated that Rule 19(3) of SBI Officers' Service Rules permits continuation of disciplinary proceedings if initiated before retirement, but it does not allow proceedings to commence after superannuation.

Dismissing the appellant's argument, the judgment authored by Justice Ujjal Bhuyan referring to the case of Union of India vs. K.V. Jankiraman (1991) observed that disciplinary proceedings are deemed to start from the date of filing of the charge sheet, not earlier notices. Since the charge sheet was filed after the date of completion of the extended term, therefore, the court held the disciplinary proceedings to be non-est in law.

In essence, the Court said that to make the disciplinary proceedings valid the SBI should have initiated the disciplinary proceedings before the end of the extended term i.e., within the service period. Proceedings initiated after the superannuation or after the end of the extended term cannot be sustained, the court held.

The Court also clarified that if proceedings are initiated against an employee before their retirement, they are deemed to have continued in service, allowing the proceedings to be carried forward and concluded post-retirement.

“if initiated against an employee before he retires from service, could be continued and concluded even after his retirement and for the purpose of conclusion of the disciplinary proceeding, the employee is deemed to have continued in service but for no other purpose.”, the court said.

The appeal was dismissed, and the bank was directed to release the pending dues of the respondent employee.

“That being the position, we see no merit in the appeal. Accordingly, the appeal is dismissed. Appellants are directed to release all the service dues of the respondent expeditiously and at any rate not later than six weeks from today.”, the court held.

Appearance:

Mr. Balbir Singh, senior counsel for the appellants

Mr. Vishwajit Singh, senior counsel for the respondent

Case Title: STATE BANK OF INDIA & ORS. VERSUS NAVIN KUMAR SINHA, CIVIL APPEAL NO. 1279 OF 2024

Citation : 2024 LiveLaw (SC) 901

Family sends ₹6L to wrong US bank a/c, unable to retrieve it Amount Was For Term Tuition Fee

Family sends ₹6L to wrong US bank a/c, unable to retrieve it Amount Was For Term Tuition Fee 

Sushil.Rao@timesofindia.com 31.10.2024 

Hyderabad : A family in Miryalaguda lost ₹6 lakh tuition fees when they mistakenly sent it to a wrong US bank account over 2 months ago. Despite efforts, they’ve been unable to recover the funds from the bank. Dongari Pavan, hailing from Miryalaguda in Nalgonda told TOI that his younger brother, Dongari Chakravarthi, was pursuing a Master’s degree in Advanced Data Analytics from the University of North Texas College in Denton, Texas, US. 

He joined the college last year. As he needed to pay the term fee for this year, the family sent $7,100 (₹5,97,095) to meet the requirement. The money was sent on Aug 27 through an State Bank of India (SBI) wire transfer from the Miryalaguda branch to a bank in the US to pay for the tuition. But due to an error in the account number, the funds went to someone else’s account instead of Chakravarthi’s account. “My parents are farmers. It was with great difficulty that we managed to secure a loan for the money needed to pay my brother’s fees,” Pavan said.

Chakravarthi reportedly approached the bank where his account was held to obtain details of the person whose account received the money by mistake. The bank refused to disclose any details about the account holder on grounds of privacy. Meanwhile, the university has been asking him to clear his fee dues. Bank authorities in India too have not been able to help them recover the lost money. Pavan said he approached authorities at the Miryalaguda branch of SBI to help trace the account holder to whose account the money was credited, but the staff reportedly informed him that those details needed to be obtained from the beneficiary bank in the US.

“Despite numerous attempts to get a resolution from the bank, we have not received any favourable response. The situation is stressful 

for us,” Pavan said. Pavan had immediately brought the matter to the notice of SBI Miryalaguda on Aug 30 and also got an acknowledgement from it. “It has been 64 days since the problem arose. I have been appealing to the authorities of both the banks but we have not been able to get our money back,” he added. In response to an ‘X’ post by Pavan about his problem, SBI, on Oct 5, advised him not to post banking or personal information publicly for security reasons.

ED can attach overseas assets equivalent to fraud value: HC

ED can attach overseas assets equivalent to fraud value: HC 

02.10.2024

Chennai : In a money-laundering case, if proceeds of crime are located outside the country, Enforcement Directorate (ED) has the power to attach the properties equivalent to the value of the fraud within the country, Madras high court has said. “Even the properties purchased prior to the scheduled offence can be attached under Prevention of Money Laundering Act (PMLA),” a division bench of Justices S M Subramaniam and V Sivagnanam said on Tuesday. 

HC passed the order while dismissing a batch of pleas moved by Sterling Futures and Holidays Limited, SN India Pvt Ltd, and Chennai Properties & Investments Ltd. The issue pertains to the fraud committed by the petitioner-companies in obtaining two loans to the tune of $119 million from IDBI Bank.

Cash Limit at Home: Income Tax Department can take action if you keep more cash at home than this

Cash Limit at Home: Income Tax Department can take action if you keep more cash at home than this

By Shyamu Maurya

April 30, 2024

Cash Limit at Home: Income Tax Department can take action if you keep more cash at home than this

Cash Limit at Home: To control problems like tax evasion and black money, the government has made many rules regarding cash. You must know about these rules.

Cash Limit at Home: Digital transactions have increased rapidly since the Corona period. Now a large population prefers to do online transactions. But even after this, all types of transactions are still done through cash. At the same time, people who are not internet friendly also prefer to complete all their work through cash instead of online transactions.

Because of this, people still keep a lot of cash at home. But to control problems like tax evasion and black money, the government has made many rules regarding cash. In such a situation, there is a question which comes to mind many times, but we do not discuss it and that is how much cash can you keep at home? Know about it here-

What are the rules for keeping cash?

According to Income Tax rules, no special rule or limit has been made in the matter of keeping cash at home. If you are financially capable then you can keep any amount of cash at home. But you must have a source for that amount. If ever you are interrogated by the investigating agency, you will have to show the source. Besides, ITR declaration will also have to be shown. This means that if you have not earned money by wrong means, then no matter how much cash you keep at home, you do not need to worry.

Action can be taken in these situations

If you are not able to tell the investigating agency the source of the money, then it can be a big problem for you. In such a situation, the investigating agency is informed about this matter. Then the Income Tax Department checks how much tax you have paid. Meanwhile, if undisclosed cash is found in the calculations, then action can be taken against you by the Income Tax Department. In such a situation, tax up to 137% of the undisclosed amount can be charged from you.

What are the other rules regarding cash?

According to the Central Board of Direct Taxes, if you withdraw more than Rs 50 thousand cash at a time, you will have to show your PAN card. Under Section 194N of the Income Tax Act, if a person withdraws more than Rs 20 lakh in a financial year, he will have to pay TDS. However, this rule is only for those people who have not filed Income Tax Return (ITR) for 3 consecutive years.

– People who have filed ITR get some relief in this matter. Such people can withdraw cash up to Rs 1 crore in a financial year from bank, post office or co-operative bank account without paying TDS. In this situation, if you withdraw more than Rs 1 crore cash from the bank in a year, you will have to pay 2% TDS. If you have not filed ITR for the last three years, then you will have to pay 2% TDS on transactions of Rs 20 lakh and 5% on transactions of more than Rs 1 crore.

– Transactions above Rs 1 lakh at a time through credit-debit cards may be subject to scrutiny. Apart from this, you cannot pay more than Rs 2 lakh in cash to buy anything. If you want to do this, you will have to show PAN and Aadhaar here also.

Flipkart UPI launched as e-commerce major's own unified payments facility: All you need to know

Flipkart UPI launched as e-commerce major's own unified payments facility: All you need to know

By HT News Desk, New Delhi

Mar 03, 2024 02:54 PM IST

Flipkart UPI has been launched in collaboration with Axis Bank.

Flipkart has launched its own Unified Payments Interface (UPI) services in collaboration with Axis Bank. The facility is called Flipkart UPI, and, its launch comes at a time when e-commerce companies have been launching their own UPI handles to service their customers better, and to avoid redirection to third-party apps for payments.

“Flipkart UPI seamlessly merges the convenience and cost-effectiveness of UPI with the trusted efficiency customers expect from us,” Dheeraj Aneja, Senior VP, Fintech and Payments Group, Flipkart, said in a statement.

“We are committed to delivering the best-in-class commerce experience to customers by offering safe and convenient payment options along with a wide array of rewards and benefits such as Supercoins, Brand Vouchers, and others,” Aneja added.

All you need to know about Flipkart UPI:

(1.) Flipkart UPI, which is for both online and offline payments within and outside the Flipkart app, will initially be available only for Android users.

(2.) To use the service, people must first create a UPI ID on the Flipkart app, after which they can make payments to merchants and individuals, in addition to paying bills without switching apps.

(3.) The facility will be spread across Flipkart group companies including Myntra, Flipkart Wholesale, Flipkart Health+, and Cleartrip.

(4.) Flipkart UPI will reduce dependence on third-party UPI apps such as Amazon Pay, Google Pay, Paytm, and PhonePe.

(5.) According to the e-commerce giant, its marketplace has more than 50 crore registered users and over 14 lakh sellers. Additionally, in February, as many as 1210 crore UPI transactions were made for a total value of ₹18.3 crore, rising 61% from the year-ago period.