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Showing posts with label Articles. Show all posts
Showing posts with label Articles. Show all posts

Sunday 4 April 2021

Income Tax Rule that impact money and your pocket in FY 2021-22




A number of financial rules have already been changed. These changes are expected to impact money and your pocket in FY 2021-22.

The government has come up with several changes for the taxpayers as well as the general public.

Here is the list of changes that goes into effect from April 1. 

1. Reduction in the Deadline for Filing ITR of FY 2020-2021 to December 31, 2021

The deadline for filing Income Tax Return is reduced by 3 months along with a maximum penalty of up to Rs 10,000, with a deadline for filing belated and revised ITR for FY 2020-21 to December 31, 2021.

2. Modification in Interest Rate of Provident Fund

According to the new rules, the deposits in the EPF account should not be more than Rs 2.5 lakh.

3. TDS Filings

The finance ministry has decided to raise the tax deducted at source (TDS) and it would be done under the Sections 206AB and 206CCA inclusions in the IT act.

4. ITR Forms Now Comes Filled up in Advance

The government has finally come up with a decision to give a pre-filled form to the taxpayers for the easy and quick execution income tax filing. 

5. No Income Tax Filing for Senior Citizens Above 75 Years

The finance minister Nirmala Sitharaman has exempted the senior citizens having an age of more than 75 years and for this from the income tax filing with an exception that is only applicable to pension holders with no other income. 

6. Leave Travel Concession (LTC) Exemption

The government had given good benefits in terms of claiming the tax benefits on LTC. 



Monday 24 February 2020

THE IMPORTANT POINTS TO BE KEPT IN MIND TO FACE THE INTERVIEW





THE FOLLOWING ARE THE IMPORTANT POINTS TO BE KEPT IN MIND TO FACE THE INTERVIEW AND TO BECOME SUCCESSFUL IN THE INTERVIEW.

Before attending interview, go through the systems and procedures of your department. Please gather information on your Zone/Region such as, who is the Zonal/Regional Head, Zonal/Regional Business, Targets and recent achievements. Your Branch figures in terms of Deposit, Advances, NPA and recovery. Special initiatives of your Region and branch to achieve targets or to improve the image of the Bank/Branch. Your active involvement in such activities of the Bank/Region.

• Ensure to be at the venue at least 30 mins before the intimated time as per your call letter issued by RO.
• Have pleasant clothes as your dress code. Try to avoid very dark colored dresses.
• Clothing should be neat, clean, and pressed
• Remember to wear your identity card on you.
• You may enter the room where the interview is conducted only when you are called, Say Good Morning, looking at the Panel Head and other members.
• When offered seat by the panellists, remember to say THANKS.
• Sit Straight and relaxed. Please avoid sitting at the edge of the seat. Do not lean too much forward or backward.
• Please remember that your Bio-Data (wherein all the personal details of you) is with the Panelists and they may start questions from your personal details.
• When asked a question , answer him/them by looking straight at them.
• Avoid looking up/down or on sides while answering the question.
• Be firm but polite. Try not to provoke or get provoked during the interview.
• Please go through the day’s News paper and note down the important events that is available in the news paper of the day. Especially on RBI, IBA, Banks, Economic views. No politics inside the interview hall even if your are asked. Please gently avoid questions on politics. (normally no question on politics)
• There may be questions on the place from where you hail. (Eg. Quilon – Known for
cashew, Trichur – Cultural city, Trivandrum – State capital etc.,)
• Panelists may ask about a particular incident that happened in your branch if they know.
Please try to place only the facts known to you.
• Normally the questions will start from your personal matters and thereafter from the
section you handle. Try to understand the section you are handling and the importance
of your section.
• If for any question you do not know answer, please inform the panelists, that you do not
know and you shall learn. Please do not try to give a wrong answer. This will be taken
as a negative attitude.
• Be positive while you are attending the queries from the panellists.
• All the panelists are seniors and superiors to you. Hence extend the necessary respect to
them even if they are known to you as Branch in charge or otherwise.
• Your knowledge is already tested and you have come out successful and this interview
is only a test of your attitude. Hence express your positive approach to the panelists.
• No arguments with panelists even if they are wrong. Gently and politely tell your views.
• Whenever you are offered Coffee/Sweets/Snacks say thanks and if you do not require
gently tell them that you do not want.
• Be bold to face the interview, and do not be nervous and be firm in your answer if you
know the answer fully.
• Once you start answering question, they may switch on to the next question.
• Face to face contact is most important while answering any question.
• The interview will be for a few minutes and normally do not be a lengthy one as they
need to interview more candidates.
• Please avoid speculating amongst the candidates while sitting prior to the interview. You
can talk to each other but avoid noises which may affect the panelists inside the interview
hall.
• Please note not to hurt the panelists in any form. Be polite and gentle while answering.
• After the interview is over, remember to say thanks to them while coming back out of
the interview hall,

Interview is after all a test of your attitude in few minutes/hours and your positive approach
during that time will ensure good marks from the panelists. Interview is an experience, enjoy
it and do not be nervous to face the same. The panelists were like you earlier as officers etc
who have become seniors and superiors. Hence they also know your strong/weak points. Try
to exhibit only strong points before the interview by your POSITIVE ATTITUDE.

We wishes you success in the interview process and we wish you become an Officer of our
Bank.

With best of luck.

#copied from social media


Sunday 30 September 2018

Ayushman Bharat Yojana






Ayushman Bharat Yojana most commonly known as ‘Modicare’, is announce to be launched by the Union government on the occasion of Independence day on August 15, 2018 & effected from September 25, 2018.

According to Press Information Bureau (PIB), this scheme has a benefit cover of Rs. 5 lakh per family per year. The target beneficiaries of the scheme are more than 10 crore families belonging to poor and vulnerable population based on SECC (Socio-Economic Caste Census) database. This benefit cover under ‘Ayushman Bharat’ Healthcare scheme will take care of almost all secondary care and most of the tertiary care procedures.

Ayushman Bharat Yojana or National Health Protection Scheme is a program which aims to provide a service to create a healthy, capable and content new India. It has two goals, one, creating a network of health and wellness infrastructure across the nation to deliver comprehensive primary healthcare services, and another is to provide insurance cover to at least 40 per cent of India's population which is majorly deprived of secondary and tertiary care services. Indu Bhushan appointed as a Chief Executive Officer (CEO) and Dr Dinesh Arora appointed as deputy ceo of Ayushman Bharat Yojana.





Key feature : -

1. Ayushman Bharat’ scheme will target about 10.74 crore poor, deprived rural families and identified occupational category of urban workers’ families as per the latest Socio-Economic Caste Census (SECC) data covering both rural and urban population.
2. To ensure that nobody is left out (especially women, children and elderly) there will be no cap on family size and age in ‘Ayushman Bharat’ scheme.
3. The benefits cover will also include pre and post-hospitalization expenses. All pre-existing conditions will be covered from day one of the policy. A defined transport allowance per hospitalization will also be paid to the beneficiary, the PIB release said.
4. Benefits of Ayushman Bharat’ scheme are portable across the country and a beneficiary covered under the scheme will be allowed to take cashless benefits from any public/private impaneled hospitals across the country.
5. To control costs, the payments for treatment will be done on the package rate (to be defined by the Government in advance) basis. The package rates will include all the costs associated with treatment. Keeping in view the state-specific requirements, states/ Union Territories will have the flexibility to modify these rates within a limited bandwidth.





Monday 30 July 2018

How to file income tax return online








Income tax filling online is very simple, if you can try it, definitely you file your income tax return online with the help of some tip provide below. Many people don’t try to file online due to mistake and penalty but it is not good. If we try and do correctly as per our data provided by the employer i.e FORM 16B then it will be very easy.

Let’s try it today, by following some steps provide below -

First you login in Income tax



Provide your USERNAME and PASSWORD

By default your USERNAME is your PANCARD


Step 1.

Then go to “ Filling of Income Tax Return”

Or

e-File Income Tax Return


Step 2 -

 PAN – already filled

Assessment year – 2018-19

ITR Form Name – ITR-1

Submission mode – Prepare and submit Online

Check on  - AADHAR OTP

Continue


Step 3 -

 Go to – Part A General Information

Select - employee category

Other details all ready filled


Step 4 –

 Then – Computation of Income Tax

In this section, you should filled as per your form 16B received from your employer.

Here you find following details and filled in this section –

B1. (i) Salary

       (iii) Value of Perquisite – ( If any otherwise left it)

       (v) Deduction u/s 16 – (Professional tax )

B2. Type of House Property – if you avail, otherwise left it

B3. Income from other Source – ( Here you filled interest of FDR & other income, if no then left it)

Part C Section

80C – Total Of Insurance + PPF + Sukanya etc

80CCD(1) – NPS contribution of Self (i.e Employee)

80CCD(2) - NPS contribution by your company (i.e Employer)

Note – If you provide both the above details separately then you will be eligible for saving 1,50,000+50,000 i.e max 2,00,000/- . If you don’t provide 80CCD(1) & 80CCD(2) separately then you will be eligible for only Rs 1,50,000/-





80TTA – If you mention saving bank interest as other income then here you save upto Rs. 10,000/- other wise left it blank

Now you can see your calculation of tax under Part D – COMPUTATION OF TAX PAYABLE




Step 5 –

 Go – Tax Details.

In this section you can see the total tax deducted as on 31th March.


Step 6 –

 Go – Tax Paid And Verification

Here you can see Amount payable/Refunded,

In Part E, You have to mention your account number & IFS Code and write SELF in filled my capacity as


Step 7 –

 Go – 80G

 if you have made any donation then provide details about your donation during the financial year otherwise left it  


At Last click on

Preview & Submit.

Again Submit and verify with AADHAAR OTP






BEST OF LUCK

Wednesday 10 January 2018

National Pension System







National Pension System (NPS) is an easily accessible, low cost, tax-efficient, flexible and portable retirement saving scheme. NPS is designed on contribution basis wherein the subscriber contributes to his own retirement account. The benefit subscribers ultimately receive depends on the amount of contribution, the returns made on the contributions and the period of contributions.



Contribution + Investment Growth – Charges = Accumulated Pension Wealth

(individual contribution)



Who are eligible to open NPS account?



Any citizen of India – Resident or Non-resident, in the age group of 18 to 60 years can open NPS account.



What are the feature of NPS?



Ø  Every individual subscriber is issued a Permanent Retirement Account Number (PRAN) card which has 12 digit unique number.

Ø  Two Types of Sub-accounts under NPS

o   Tier- I account: - This is a permanent retirement account in which subscriber contributes for accumulation of pension wealth.

o   Tier – II account: - This is a voluntary saving facility available as an add-on to any Tier – I account holder. Subscribers will be free to withdraw their saving from this account whenever they wish.

Ø  Regulated : The fund are managed by Pension fund appointed and actively monitored and regulated by PFRDA, the Regulator set up through an Act of Parliament.

Ø  Portable and Technology Driven: On joining the NPS, a subscriber gets a Permanent Retirement Account Number (PRAN) to which all his/her contributions are credited and it is portable across geographies and employments. It being technology driven, subscribers can view their accounts online

Ø  24 X 7 X 365 Access: Riding on a highly efficient technological platform NPS provides online access to account to the subscribers. Subscribers can also access account through NPS mobile App.

Ø  Very Low Cost Structure: The investment cost is very low as compared to other investment products available to market.

Ø  Choice: Active choice/Auto choice:

o   Active choice - investment mix has to be chosen by the individual.

o   Auto choice -  investments will be made based on the age of account holders

Ø  Diversified Portfolio: Judicious mix of investment instruments and asset classes like equity (E), corporate Bond (C) Government Security (G) and Alternate Assest Class (A) ensures optimum returns on investment and have minimal impact on the impact on the returns on subscriber’s contributions even if there is a market downturn. The individual subscriber has a choice of selecting investment mix (E,C,G,A), as per his/her risk appetite. Two new life cycle funds LC 75 (Aggressive) and LC 25 (Non-Aggressive) deciding the equity portion of the investment have been introduced.


(Also Read: Public Provident Fund)



How and where to open NPS account ?



Account can be opened through:



1. e-NPS (NPS Online)

To make the account opening under NPS hassle free, facility has been developed where you can open NPS account online if you have

(i) Aadhaar Card, or

(ii) PAN card with account with internet banking facility in one of the  empanelled bank undertaking KYC verification online.

e-NPS Charge

For transaction through e-NPS, service charge of 0.5% of the contribution amount ad valorem, subject to minimum of Rs. 5/- and maximum of Rs. 5,000//- per transaction would be recovered from the subscribers. The service charges would be rounded off to the nearest rupee and services tax & cess thereupon on services charges would be on actual basis. Charges for all other intermediaries remain the same.



2. Points of presence

The account can be opened through any of the Point-of Presence (POPs) registered with PFRDA by submission of application form.



Contribution Requirement



Particular
Tier I
Tier II
Min Contribution at the time of account opening
Rs. 500/-
Rs. 1000/-
Min amount per contribution
Rs. 500/-
Rs. 500/-
Min Total contribution in the financial year
Rs. 1000/-
-
Min frequency of contribution ( no max limit)
1 per year
1 per year



Tax Benefits and Implications



Tax benefits are available on both employee and employer contributions. The employee can save tax on his own contribution [u/s 80 CCD (1) of IT Act] as well as the contribution made by employer [u/s 80 CCD(2)]

For employee, deduction from taxable income is available upto 10% of salary (Basic + DA) – u/s 80 CCD(1) of IT Act 1961, subject to overall ceiling of Rs. 1.50 Lakh u/s 80 CCE of IT Act 1961.

Additionally, if employer, is also contributing towards pension accounts of the employee, an additional deduction of 10% of salary (Basic + DA) is available to the employees u/s 80 CCD(2).

Furthermore, the employer can claim these contributions upto 10% of salary (Basic + DA) for each employee without any overall limit for all employees as a Business Expense u/s 36(1) iv of IT Act.



Additional Tax benefit



Subscriber is allowed extra tax deduction in addition to the deduction allowed under Sec. 80 CCD (1) for additional contribution in his NPS account subject to maximum of Rs. 50,000/- under sec. 80 CCD 1 (B) of IT Act, 1961.








Monday 9 October 2017

Dos and Do nots of Loan


Dos/ Do Nots of Loan

With fast promotions and less experience most managers/ officers find it tough to handle the advances pressure of the branch. Let me tell you advances or loans which are done in pressure normally turn bad/ NPA. So its better to have thorough knowledge of advances before going for the dip. Here I present you the checklist while doing documentation or appraising loan cases and NPA Prevention-.
1) KYC –

Yes KYC is must. You must first identify the customer. It is better to approach the customer rather customer approaches you. Sometimes borrower is not selected properly he is either new customer or introduced by another stranger or middlemen. Never involve middlemen, talk to customers directly. Avoid giving multiple loans to single party/ family or a group, to minors, lunatics or insolvents. It is compulsory to complete all the KYC norms before even thinking of giving loan.

For KYC the following things are to be taken care of-
a) Proof of Identity
b) Proof of residence
c) Proof of business address
d) PAN number
e) Photocopies of all these must be verified with original and also get them signed by the borrower and kept on record.

2) Understanding Credit Cycle

The credit cycle consist of credit opportunity -> Credit Creation -> Credit management -> Credit Completion -> Credit creation. Whichever branch you land at you will find loans in one stage or the other.

3) RBI’s Defaulter List-

It must be confirmed from RBI’s Defaulter’s list, available on RBI’s website. Confirm that borrower/guarantors name do not appear in the defaulters list and confirmation of same must be put on record.

4) CIBIL reports –

Next step is to search the CIBIL reports of the borrower and guarantors in all loan cases and commercial CIBIL report in case of firms/ companies. CIBIL reports should be analyzed thoroughly viz. whether borrower/ guarantors availed loans from other banks or financial institutions is there any overdue amount. There should be documentary proof to satisfy these irregularities.

5) Search CERSAI or CIBIL Mortgage site

If mortgage of property is involved in the loan then before proceeding further search should be made on CERSAI or CIBIL Mortgage site to ascertain that there is no mortgage outstanding against the property in any other bank/ FI.

6) Loan safety-

Safety of your loan is directly related on the basis on which decision to was taken, type and quantum of credit to be given and terms and conditions of the loan. But practically no loan is safe as we can’t see what is going on in the borrowers mind. Loans with all proper documentation and all due diligence paid also goes NPA. But still you can wisely apply points mentioned in article and save a going to be NPA loan.

7) Pre sanction Visit-

Next step is to visit the residence place of borrower, place of unit and property to be mortgaged. Pre sanction visit is basically to determine the “bank-ability” and access related riskiness of the proposal. Identification of borrower and site must be ascertained beyond doubt by inquiring from neighbors and other surrounding people. The whole observations must be noted down and to be placed on the record.

8) Assets and liabilities Reports

Assets and liabilities statements of all borrowers/ guarantors must be prepared on prescribed format mentioning full detail of assets & liabilities duly signed by borrower/ guarantor and accountant/ manager. You should also take necessary proof of asset and liabilities be taken.

9) Balance Sheets –

In case of working capital limits 3 years balance sheets of the unit along with income tax/ Sale tax returns etc.( for higher amount get audited balance sheets) projected balance sheets of next 2 years in cases of working capital limits and for the period of loan in case of term loan is mandatory. The balance sheets must be thoroughly analyzed and sanction-able limits be assessed.

 You should analyze the following points in balance sheet-

a) How capital or fund is raised?
b) How capital or fund is utilized?
c) Financial stability of firm.
d)Profitability?
e) Repayment capacity.
f) Expenditure analysis.
g) Sales achieved.
h) Existing loans and liabilities.

10)Project report-

Project report ( for the proposed project if term lending is required) containing details of the machinery to be acquired, price, name of suppliers, capacity utilization assumed, production , sales, projected profit and loss and balance sheets for the next 7-8 years till the proposed loan is to be paid. Project report should be analyzed and feasibility be ascertained.

11) Credit Rating-

Credit rating must be done in all the loan cases as per bank’s guidelines. Retail loans like Housing Loan, auto loan, and education loan should be done as per bank norms. Rate of interest should be fixed as per credit rating. In agriculture loans there is no need of credit rating. Credit rating should be done judiciously based on analyzing balance sheets. Always avoid sanctioning loan credit rating below 3.

12) Legal opinion

Verification of title deed of property to be mortgaged is utmost necessary. It must be ascertained that it is original not fake, scanned copy or duplicate one. In Legal opinion revenue authority should personally verify that title deed to be mortgaged tally with the one kept with revenue records. Must get certified copy of the title deed and tally it with original Title deed. Also take certificate from advocate that certified copy tallies with the original one. Thoroughly read the legal opinion given by the advocate and observe that there is no objectionable which goes against the bank’s interest. Also obtain all the documents mentioned in the legal opinion. Here it is also important to personally verify that submitted title deed belongs to the property you visited earlier. Also make sure that SARFAESI act 2002 is applicable on the property. Certificate of change of land must be took in case unit to be financed is to be built on agriculture land.


13) Any additional limit sanctioned against same securities already charged to the bank ensure-


a) To extend charge to such limits too.
b) All concerned should be kept informed.
c) Acknowledge debt / balance conformation with the borrower.

14) Valuation-

Valuation of property to be mortgaged is to be done from valuer on banks panel. Considered value is earlier circle rate or realizable value which ever is lower. After that realizable value can be considered. For agriculture land circle rate fixed by the collector revenue for the area/ Circle. Land revenue Authority/ Tehsildar/ DM/ or any other authority for determining the valuation of land should be considered. Valuation report of the valuer must be thoroughly analyzed that it should not contain any comment which may harm the bank’s interest on later stage. The title deed, revenue numbers, area of the land must tally with deed/ legal opinion and valuation report.

15) Filling of Appraisal note-

After verifying all the documents the appraisal note should be filled. Care should be taken that full detail should be filled and it should be complete in all respects. Appraisal should reveal whether proposal is fair banking risk. documentation forms the basis for legal relationship between bank and borrower. Following points should be taken care off:
A) Information of the borrower: name, full address, phone numbers, PAN no., date of birth and net worth and constitution should be given.
b) While processing credit processing figure out both positive and negative points on a piece of paper.
c) Now compare the proposal with circular of the bank. All circulars have checklist. Tick point by point and figure out gaps if any. Also jot the measures that you or the party needs to take to fill those gaps.
d) Get confidential reports from other bank and FI.
e) Amount of loan and purpose of loan should be given in full.
f) Constitution of account- whether account is individual/ joint/ co- borrower/ proprietorship/ partnership/ pvt ltd. Co/ ltd co.
g) Full details of his accounts with other banks, branches should be given in full detail.
h) Information of guarantors should be given in detail viz. name. address, PAN number, Date Of Birth, Phone no. , net worth etc.
i) Detail of Primary security should be given in full as related to the case e.g. if it is mortgage of property full address as mentioned in the legal opinion should be given along with date of legal opinion and valuation report and values viz. market value , realizable value and accountant/ manager with date. If hypothecation of vehicle – its RC no, date, engines no. value, date of insurance etc.
j) Similarly for additional security full detail should be given as the case may be.
k) Balance sheet figures should be given in full, preferable consisting of last 2 years audited figures, current year’s provisional figures and projected figures of next 2 years. Ratios like current ratio, debt-equity ratio etc. must be calculated and filled. Observation about balance sheet must be mentioned in the note.
l) Credit rating must be mentioned in the note and based on it rate of interest should be mentioned by quoting circular no on which it is based.

16) Repayment-

Detail of repayment mentioning amount of EMI, duration in months must be mentioned. If moratorium period allowed then it must be mentioned and also mention date of first installment.

17) Disbursement-

In case of term loan, disbursement should be as per schedule approved by the bank. In case of housing loans disbursement should be related to actual progress in implementation of project. For that you should visit the site periodically. For any delay in project you should seek the borrower’s arguments. Also monitor costs being incurred and scrutinize receipts being produce by the borrower.


TIP- “Never disclose the date of disbursement to borrower”

18) Role of periodic inspections

Periodical inspections enables bank to keep check on the stocks hypothecated to bank. Now what you should do in periodical inspections? –
a) Obtain basic info on the functioning of unit.
b) Do physical verification of the stock.
c) Match the stock with the stock statement given.
d) Do rough valuation of stock on MRP or market price.
e) Quality of stock hypothecated to bank. It should not be of inferior quality what is charged to bank or obsolete or rejected stock which is of no market value.
f) The bank’s name should be prominently displayed onsite the unit where goods are hypothecated to bank. E.g. *“OUR BANK , *********** bank* Board like this should be displayed outside.
g) In case of pledge- ensure that storage area is properly maintained, earthquake and flood resistant, goods are stored in a proper manner, stock audit is regularly conducted and a proper register is maintained.
h) Also note that the stocks or securities that are offered should be adequately insure and that too on continuous basis.
i) Branch should maintain a inspection register where all the findings at the site should be noted. It is a good idea to take 2-3 snapshots and paste them on register with signature of visiting officials.
j) Inspection should be done vigorously and not pre-informing the borrower and telling him to prepare tea/snack(on a lighter note). Inspection should be done without even making borrower know that you are going to visit and which date or time. Just caught the borrower red handed only then you will come to know how he behaves and looks in real life.
k) In case if housing loans, visit office of sub registrar or revenue office to verify charge of bank on the mortgaged property.

19) CERSAI

After disbursing the mortgage related cases the mortgage must be registered with the CERSAI within one month of mortgage. It is mandatory and registered number must be mentioned in the loan file.

20) Post sanction appraisal-

Post sanction appraisal generally deals with documentation of the facility and after care follow up. One must carefully view the transactions on the loan/ CC facility given. Non payment of interest on due date should be immediately followed up with the borrower. In case of CC frequent overdrafts should not be allowed. Also transactions with sister concerns should be monitored. Scrutinize the stock statements which are periodically submitted. Physically verify the securities and books of accounts of the borrower.

21) ROC

In case of pvt and public ltd. Companies, the banks charge on assets of the company must be registered with ROC within 30 days of creation of charge. The search report of this charge must be on the record.

22) Review of borrower’s account

Periodical review of borrower’s account is necessary for-
a) NPA control- if you can identify some odds during initial stages of account the you can easily minimize your future NPA.
b) Taking preventive measures for improvement in cash flow slippage into substandard/ doubtful category.
c) Necessary to ascertain if business is doing good or bad. If bad then take preventive measures.

23) Vetting

The executed documents of loans of larger amounts must be got vetted from advocate on the banks panel and certificate should be put on the record. In case of larger loans the documents must be got vetted second time from another advocate on the banks panel and certificate be put on record.

24) Post sanction follows up

For post sanction follow up ensure terms and conditions of sanction is intimated to borrower well in advance also ensure borrower advised the same. Ensure receipt of acceptance of terms and conditions and kept on record and are fulfilled before disbursement.

25) Post lending visit

This visit is very important to verify the end use of funds. Assets to be created by the loan sanctioned must be verified physically and facts noted in the visit report.

26) Renewal or revival

Renewal or revival of accounts must be done on due date on basis of latest financial documents.

The checklist is only indicative and not exhaustive. The guidelines may vary from bank to bank. But It will help people dealing in advances portfolio to take judicious and prompt decisions dealing loan proposals. The mantra for good credit is simple –

*“Good system of appraisal/ assessment of credit Needs and Effective supervision and follow up post sanction”*
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Thursday 22 June 2017

NON- RESIDENT INDIANS (NRIs) Business


FEATURES OF VARIOUS DEPOSIT SCHEMES FOR NON- RESIDENT INDIANS (NRIs)

Particulars
Foreign Currency A/c (Bank Scheme)
   (FCNR (B) A/c)
 Non Resident (External) Rupee    
     (NRE A/c )
Non-Resident (Ordinary) Rupee 
   (NRO A/c)
Eligibility
Any NRI/PIO (except Bangladesh/Pakistan nationality which require RBI prior approval).
Any NRI/PIO (except Bangladesh/Pakistan nationality which require RBI prior approval).
Any NRI/PIO (except Pakistan nationality which require RBI prior approval). Opening of accounts by individuals of Bangladesh nationality may be permitted subject to evidencing valid visa and residential permit issued by FRO/FRRO
Eligible credits
Proceeds of Remittance to India in any permitted currency received through normal banking channel
Proceeds of Remittance to India in any permitted currency received through normal banking channel
Legitimate dues in India including current income like rent, dividend, pension, interest, etc. & Proceeds of Remittance to India in any permitted currency received through normal banking channel
Type of Account
Term Deposit
Current /Saving /
Term Deposit
Current / Saving/
Term Deposit
Periodicity of
Term deposit
accounts
Term Deposit for any period between 1 to 5 years
Term Deposit for any period between 1 to 10 years
As applicable to local residents
Currency in which a/c can be opened
USD,GBP,EUR, JPY, CAD & AUD
INDIAN RUPEE
INDIAN RUPEE
Repatriability
Principal + Interest Repatriable
Principal + Interest Repatriable
Repatriable up to USD 1 Million per calendar year out of balance held in a/c subject to payment of tax & production of  C.A.Certificate .

Joint Accounts
Allowed with other NRI  / Residents*
Allowed with other NRI  / Residents*
Allowed with other NRIs & under “Former or Survivor” basis with resident close relatives
Nomination
Allowed
Allowed
Allowed
Loan against term deposits
Permitted up to 90% of present value of deposit
Permitted up to 90% of present value of deposit
Permitted up to 90% of present value of deposit
Premature withdrawal
Allowed, No interest is paid if the deposit is withdrawn before one year of deposit. Penalty of 1% is levied on the applicable rate of interest for which deposit remained with Bank or prevailing rate for that period, whichever is less
Allowed, No interest is paid if the deposit is withdrawn before one year of deposit. Penalty of 1% is levied on the applicable rate of interest for which deposit remained with Bank or prevailing rate for that period whichever is less.
Allowed. No penalty is levied provided the deposit remained with Bank for a minimum period of one year and the amount does not exceed Rs 5 lacs. In all other cases, penalty interest will be calculated @ 1% below the rate applicable for the period for which deposit remained with bank.
Tax Exemption
Interest earned & balance in FCNR exempted from Income/Wealth tax.
Interest earned & balance in NRE exempted from Income/Wealth tax
Income / Wealth taxes is levied @30%  +  surcharge. Exemption, if any, is subject to   double tax avoidance agreement with certain countries.
Other facilities
Account operation    allowed for local payments through Power of Attorney.
International Debit Card.

Internet banking.

Facility to issue Online Fixed/Recurring Deposit

Account operation allowed for local payments through Power of Attorney.
International Debit Card.

Internet banking.

Facility to issue Online Fixed/Recurring Deposit

Account operation allowed for local payments through Power of Attorney.






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