Reason for the strike

AIBOC has threatened to go on strike over several issues. This is the main reason

5 days working – Bank employees have been demanding 5 days working for a long time. The main reason for the strike is also the demand for 5 days working.

Staff should be recruited : There is a demand to fill the vacancies in all cadres and to remove the shortage of staff.

Withdrawal of DFS guidelines: Recent guidelines on Performance Review and Productivity-Linked Incentives (PLI) termed as discriminatory and a threat to job security.

Important Appointments: Demand to fill up the vacant posts of Worker/Officer Directors.

Pending issues with IBA: Demand has been made for early resolution of pending issues with Indian Banks Association (IBA).

Movement plan

AIBOC will issue a strike notice this month. The union has warned that if their demands are not met, they will take tough steps. AIBOC accused the Department of Financial Services (DFS) of interfering in the operation of banks, which undermines the autonomy of the bank board.

Tips for customers

In view of the strike, customers should complete their important transactions like check clearance, cash withdrawal or account update before the strike date. Apart from this, digital banking channels can be used for regular banking needs. This strike affects the service of bank branches, so customers should be careful.

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Are you also planning to buy a house?

A house that is available at a price lower than the market rate? There is good news for you. You will find the properties being auctioned by all the banks at one place. Many times you get it in auction at a price lower than the market. The central government has recently launched a new version of the e-auction portal ‘Baanknet’. It integrates information about the properties put up for auction by public sector banks (PSBs). That is, the properties to be auctioned by all the government banks on ‘Baanknet’ can be seen on a single platform. This portal has recently been launched by M Nagaraju, Secretary, Department of Financial Services, Ministry of Finance.

Banknet: Will help you in knowing about the properties being auctioned

According to the government, this portal will show the information of the property listed for auction by PSB at one place. Now you will not have to go to the sites of different banks to search for the property. It will show all the properties on one platform. This includes residential properties like flats, independent houses and open plots. Apart from this, commercial properties like industrial land, buildings, shops, vehicles, machinery and agricultural land and non-agricultural land will also be listed.

It will be easy for buyers to identify the property to purchase

This portal not only provides information about properties but also makes the e-auction process easier. This will help buyers and investors to identify properties available across the country to buy. During the launch, Nagaraju had said that this portal will not only help in the recovery process of PSBs but will also help in improving their balance sheets. Apart from this, it will also help in providing loans to common people and businessmen to buy property. This portal will help in getting the right money for distressed properties and increasing the confidence of investors.

Features of Banknet

Single Platform: The entire e-auction process – pre-auction, auction and post-auction – is integrated on a single portal.

Integrated Payments & KYC: Service of self-operating payment gateways and KYC tools.

Microservices architecture: Open API for third-party integration.

Dashboard and Reporting: Services like ‘Spend Analytics’ and various ‘MIS Reports’ will be available.

Helpdesk and Call Centre: Callback request facility for customers.

How to use

To use the Banknet portal, buyers must first register on the portal and provide the required information. To search for property details, users need to click on the ‘Property’ option on the homepage.

There is so much property list

So far, more than 1,22,500 properties have been added for auction on the portal. This portal has been launched with the aim of speeding up the recovery of PSBs and making property auctions easier.

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The Finance Ministry has advised public sector banks (PSBs) like SBI, PNB, Bank of Baroda (BoB) etc. to include several measures in the transfer policy. The Finance Ministry also said that these rules should be implemented from the beginning of the financial year 2026 after getting approval from the board.

It will help in preparing a uniform policy

The Department of Financial Services, in a letter to all public sector banks (PSBs), said that the transfer policy has been reviewed. This will promote more transparency. This will then help in preparing a uniform policy. Some of the suggested changes include allowing banks to automate the transfer process and create an online process for it, as well as giving location preference options to their employees.

Complaints received from employees should be resolved.

The letter says that as far as possible, women employees should be transferred to nearby places, stations, areas. It has also been said that complaints received from employees citing violation of transfer policy should be resolved. The Finance Ministry’s advice said that PSBs are advised to send a copy of the changed policy to the department as soon as possible.

What changes can be made?

Banks are now trying to make their transfer policy more transparent. This will enable employees to know why and how they will be transferred. Apart from this, many banks are doing the transfer process in automation mode. Employees are also given the option of giving their choice regarding the place of transfer policy by the banks. Efforts are made to transfer women employees working in banks to nearby stations.

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In this, the Finance Minister discussed with the banks on many issues like increasing deposits in banks, digital payment, cyber security, credit products and schemes. The Finance Minister instructed all government banks to focus on customer service and pay special attention to customers from rural and semi-urban areas. Nirmala Sitharaman said that cooperation should be increased between banks, government, regulators and security agencies regarding fraud and cyber security.

Banks should pay special attention to PM Surya Ghar and Vishwakarma Yojana

Finance Minister Nirmala Sitharaman said that banks need to take swift action to implement the budget announcements. The Finance Minister said that banks should pay special attention to the PM Surya Ghar Free Electricity Scheme and PM Vishwakarma Yojana. The meeting was attended by the heads of all the banks including Secretary Vivek Joshi and M Nagaraju and officials of the Department of Financial Services.

Asset quality of banks improved, NPA also decreased

Nirmala Sitharaman has expressed satisfaction over the performance of public sector banks in the financial year 2024. She said that the asset quality of the banks has improved. Also, the net NPA has also come down to 0.76 percent. The net profit of the banks has been Rs 1.45 lakh crore. Along with this, they have distributed a dividend of Rs 27,830 crore. Along with this, the banks have also successfully raised capital from the market. The credit growth of the banks is also excellent. But now they will have to work fast on increasing the deposits.

👉 Union Finance Minister Smt. @nsitharaman chairs meeting to review performance of Public Sector Banks #PSBs in New Delhi

👉 Various financial parameters such as #DepositMobilisation, #DigitalPayments and #CyberSecurity, Implementation of new credit products/ schemes and Access… pic.twitter.com/Gfzmp1EuSd

— Ministry of Finance (@FinMinIndia) August 19, 2024

Do not be negligent in giving loan closure document to the customer

The Finance Minister asked the banks to pay special attention to the customers. Also, he asked to pay special attention to the changes taking place in the banking sector. All banks should keep making changes in their IT systems from time to time in view of cyber threats. Apart from this, all banks should work on increasing financial support to MSMEs. The Finance Minister instructed all the banks to work following the guidelines of the Reserve Bank of India (RBI). Also, all documents should be made available on time to the customers who terminate the loan.

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2 years exemption

As per the exemption given by the central government, now banks and financial institutions can maintain MPCS till 1 August 2026. Let us tell you that market regulator SEBI had ordered the public sector banks to maintain 25 percent MPCS. Even now the MPS of 5 banks is more than 25 percent.

Banks whose public shareholding is less than 25 percent should reduce their public shareholding to at least 25 percent within the time limit prescribed in Rule 19A of the Securities Contracts (Regulation) Rules, 1957. Now the banks have an additional two years to do this work. As per the previous order issued by the government, the bank has to maintain MPS by August 1, 2024.

Also Read: New Rules 1 August: These 6 big changes have been implemented in the country from today

The government has asked the Securities and Exchange Board of India (SEBI) to take necessary action and bring it to the notice of the concerned stock exchanges.

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In a circular dated June 10, 2024, the Indian Banks Association (IBA) said that as per clause 13 of the 12th Bipartite Agreement, workmen and office employees will get Dearness Allowance (DA) of 15.97 percent in May, June and July 2024.

This is how DA is calculated for bank employees?

Explaining the rationale behind the new dearness allowances, the IBA said the All-India Consumer Price Index (Base 2016 = 100) for Industrial Labour for the quarter ending March 2024 was as follows.

January 2024 – 138.9

February 2024 – 139.2

March 2024 – 138.9

hike in salary of bank employees

The average CPI is 139 and that is higher than the previous quarter’s average of 123.03. There is a difference of 15.97 points, (139-123.03) The last average quarterly CPI was 138.76. Hence, there is an increase of 0.24 points for May, June and July 2024. Public sector bank employees got a salary hike of 17% in March 2024. According to the 9th Joint Note on Pay Revision of Officers, the total quantity of salary revision hike is more than Rs 8,284 crore.

Also Read: Rapid Rail: Namo Bharat train will be seen running on this route in 6 months. Details

Bank employees’ salary will increase soon

The salary of officers and employees of public sector banks will increase by 17 percent annually. The Indian Banks Association (IBA) and bank employee organizations agreed on an annual salary hike of 17 percent on Friday, March 8. This decision, which will come into effect from November 2022, will benefit about 8 lakh bank employees. This will put an additional burden of Rs 8,284 crore annually on public sector banks. The IBA revises the annual salary by negotiating with the organizations of bank officers and employees.

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The bank has told that if the KYC update of your bank account is due from September 30, 2023, then you can easily update the KYC by visiting any branch of the bank till December 18, 2023. Apart from this, KYC is being updated in the bank account through PNB One App, IBS, email and post.

KYC mandatory

The bank posted on its official social media handle that as per RBI guidelines, it is mandatory for all customers to update KYC. If any customer is due to update the KYC of your account from September 30, 2023, then before December 18, you can update your KYC through any branch or mobile app PNB One, IBS, post and registered e-mail etc. It was also told that if KYC is not updated then the transactions in the account may be affected.

Documents to get KYC done

According to the PNB website, you can use the government documents given below to get the KYC of an individual account done.

• Passport
• PAN card
• Voter ID
• driving license
• NREGA job card
• Aadhar card

Apart from this, electricity bill, telephone bill, water bill, postpaid mobile bill, water bill and gas bill can be used.

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Small Finance Banks FD Rates: Despite many investment options available, people still like to invest money in FD schemes. We are telling you about such small saving banks which are giving the benefit of higher interest rates to the customers in a period of only three years as compared to other banks. This list has been made on the basis of data from BankBazaar.

Suryoday Small Finance Bank is offering 8.60 percent interest rate to customers on three-year FD. In such a situation, if you invest Rs 1 lakh for a total of three years, you will get Rs 1.29 lakh on maturity.

Jana Small Finance Bank and Utkarsh Small Finance Bank are offering interest rate of 8.50 percent on three year FD. In such a situation, you will get a return of Rs 1.29 lakh on an investment of Rs 1 lakh.

Fincare Small Finance Bank is offering 8.11 percent interest on three-year FD. In such a situation, on an investment of Rs 1 lakh, you will get a return of Rs 1.27 lakh.

AU Small Finance Bank is offering 8 percent interest rate to its customers on 3 year FD. In such a situation, if you invest Rs 1 lakh for three years, you will get a return of Rs 1.27 lakh.

North East Small Finance Bank is offering customers an interest rate of 7.75 percent on three-year FD. In such a situation, instead of Rs 1 lakh, you will get Rs 1.26 lakh after three years.

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The government is considering forming a panel for this. The government has entrusted the responsibility to NITI Aayog and RBI to prepare the list of banks. Along with better performance, public sector banks have also reduced bad loans. In such a situation, there is once again discussion about privatization of many banks.

Actually, the issue of privatization of public sector banks does not seem to be resolved. Now the Finance Ministry has asked NITI Aayog and Reserve Bank of India to prepare a new list. During the budget of 2021-22, Finance Minister Nirmala Sitharaman had talked about privatization.

Let us tell you that in the recent past, the Central Government has made major changes in many public sector banks. Within the last three years, the Central Government has reduced the number of public sector banks from 27 to 12.

New list will be made

According to a media report, a new panel with representatives from the Finance Ministry, NITI Aayog and the Reserve Bank of India is being considered to prepare a new list of candidates for privatization. NITI Aayog recommended privatization of two public sector banks and has also put its suggestions before the Finance Ministry. These include Central Bank of India and Indian Overseas Bank.

The report also said that these two banks were discussed by Finance Minister Nirmala Sitharaman in the budget of 2021-22. Along with this, privatization of IDBI Bank and a general insurance company was also announced. But due to some reasons it was stopped and now its exercise is expected to start again in view of 2024.

Consider making a panel

The central government is considering forming a panel to identify medium and small-sized banks for privatization. According to the report, the panel can also decide how much stake the government will reduce in banks. Besides, a decision can also be taken on the weightage given to banks having better financial parameters and reducing bad loans.

Let us tell you, before the proposed privatization process, banks have merged weak banks into big banks to strengthen small banks. A total of 10 public sector banks were merged from 1 April 2020.

Now these are 12 PSB banks

The 12 private sector banks include State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, Punjab and Sindh Bank, Indian Bank, Union Bank of India, Bank of India, Bank of Maharashtra, Central Bank of India, UCO Bank and Indian Bank. Overseas banks are included.

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In this decision, it has been agreed to increase the pension on the basis of uniform 100% DA neutralization to the bank employees who have retired before 1 November 2002. After this decision, there will be a monthly increase in pension from about Rs 800 to Rs 16 thousand.

What is the situation now?

So far, all bank employees retired till 31 October 2002 get pension, DA on the basis of tapering percentage formula and slab system, while bank employees retiring on 1 November 2002 and thereafter get the benefit of 100% neutralization in DA on uniform basis.

Now in the bipartite meeting held between Indian Banks Association and United Forum and Bank Unions in Mumbai on Friday, it was agreed that the benefit of 100% DA will also be given to the bankers who retired before November 1, 2002.

This committee was also considering the demands of 5 days work and 2 days leave in banks and affordable health insurance. In the meeting, the Indian Banks’ Association has expressed hope that all other pending issues will be decided within the next four months.

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Privatization is under threat on government banks . This is to say of All India Bank Officers Confederation (AIBOC), which is the union of bank officers. Union believes that public sector banks have played an important role in removing economic discrimination in the society, yet there is a danger of privatization of public sector banks.

On the occasion of 55th Bank Nationalization Day, All India Bank Officers’ Confederation (AIBOC) said that public sector banks have played a major role in financial inclusion and attracting savings since their nationalization in 1969. Key’s. AIBOC General Secretary Rupam Roy said that the sword of privatization is hanging over public sector banks. He said that this is a fight of ideology which can be overcome only by supporting such an ideology which cares for the interests of the larger population.

Rupam Roy said that since nationalization, public sector banks have been providing funds to agriculture, MSMEs, education and infrastructure. The All India Bank Officers Confederation said that public sector banks have worked to promote economic development through their services, as well as their role in providing employment to crores of people has been a pillar.

Rupam Roy said that the government is the largest shareholder in public sector banks and the government is the biggest beneficiary of the dividends received from the profits of public sector banks. He told that in SBI there are 1900 customers per employee while in HDFC Bank this number is 530 and in Axis Bank it is 325. Before 2017, there used to be 27 public sector banks in the country. Whose number has come down to 12 after the merger. The government is pursuing the target of privatization of two national banks.

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Yes, State Bank of India has taken steps to change the rules of its locker. According to the information, the new rules of bank locker will be made effective after 30 June 2023. If you have a locker in SBI, then you must contact your branch without delay.

SBI tweeted

Yes, want to sign this new agreement. State Bank of India has made a tweet appealing to the customers who have taken the locker to sign the new agreement, in which the bank has said, “Dear customer, please visit your branch for settlement of the revised locker agreement. If you have already Even if you have already signed the updated agreement, you need to sign the supplementary agreement.”

Knowing the new rule of the locker will jump with joy, according to the new bank locker agreement, if there is a loss in the locker, the bank will compensate its customers. For this, a new agreement will have to be signed. RBI has already said in this regard that the customers who will sign this new agreement immediately, they will start getting many benefits from the same time.

Please tell that till now there was no such provision. After signing the new agreement, the bank will indemnify the locker for theft, burglary, robbery, negligence of the bank or any other incident on the part of its employees. This compensation will be up to 100 times the annual rent of the locker.

Customers taking lockers should contact their bank immediately

RBI has also appealed to the customers to sign a new agreement with their banks as per the circular issued on January 23, 2023. Keep this in mind that the new locker agreement has been prepared on the instructions of RBI. In such a situation, apart from SBI, those who have other bank lockers will also have to sign this agreement.

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Customers can withdraw money through the QR code displayed on the ATM. BOB said in a statement that it is the first public sector bank to offer cash withdrawal facility from ATMs through UPI.

The bank said that by availing its Interoperable Cardless Cash Withdrawal (ICCW) facility, customers of other participating banks using BHIM UPI and other UPI applications along with its customers will also be able to withdraw cash from ATMs. Customers will not need to use debit cards for cash withdrawal from Bank of Baroda (BoB) ATMs.

This is the process to withdraw money from UPI

To avail this service, the customer has to select the ‘UPI Cash Withdrawal’ option at the Bank of Baroda ATM. Then after entering the amount to be withdrawn, a QR code will be displayed on the screen of the ATM. This code needs to be scanned using the authorized UPI app for ICCW to authorize the transaction.

Transaction can be done twice in a day

The Bank’s Chief Digital Officer Akhil Handa said that the introduction of ICCW service will give customers the freedom to withdraw cash without using a card. At BOB ATMs, customers can do two transactions in a day and a maximum of Rs 5,000 can be withdrawn at a time.

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The Reserve Bank of India (RBI) said that in every district of the country, the bank will conduct a special drive for 100 days to settle the top 100 accounts with unclaimed deposits. RBI said in a statement that this campaign of banks will start from June 1, 2023.

Campaign will be run for 100 days

The amount lying dormant in bank accounts for 10 years is called unclaimed deposit. Banks transfer these accounts to the ‘Depositor Education and Awareness Fund’ of the Reserve Bank if they remain unclaimed for a long time. All banks will identify 100 lead accounts in each district of the country for settlement of such accounts. This campaign will run for 100 days.
Announcement to make portal

RBI had also recently announced to make a centralized portal for settlement of unclaimed deposits. Public sector banks had transferred an unclaimed amount of about Rs 35,000 crore to the Reserve Bank till February 2023. This amount was deposited in those accounts in which there was no transaction for 10 years or more. The unclaimed amount was linked to 10.24 crore accounts.

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What is unclaimed amount

According to information, this amount belongs to those people who have failed to close their current or savings accounts or have failed to inform banks to encash matured FDs. Deceased depositors whose nominees or legal heirs have failed to file a claim against the bank or banks. The amount of such people is kept in the banks like this only.

RBI had given this information earlier also

RBI had said last month that a centralized portal related to this would be prepared in three-four months. With this, depositors and beneficiaries can get information about unclaimed deposits lying in different banks. The 27th meeting of FSDC was attended by all financial sector regulators including RBI Governor Shaktikanta Das. This was the first meeting of the FSDC after the presentation of the budget for 2023-24.

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Earlier it was reported that the Indian Banks’ Association (IBA) and the United Forum of Bank Employees (UFBEs) have agreed in principle for a 5-day working week. However, for this, banks will have to increase their working hours by 40 minutes daily.

At present, public sector banks have a holiday on every second and fourth Saturday except Sunday. While banks remain open on the first and third Saturday of every month. If there are 5 Saturdays in a month, banks remain open on that day as well.

According to the report, IBA had sent a proposal for 5 days work and 2 days holiday in public sector banks. That is, banks will remain open every Monday to Friday, while every Saturday and Sunday will be a holiday. According to the report, soon the notification with the wage board revision can be issued.

Meanwhile, banks across India will be closed for 11 days in the month of May. There are many holidays in May due to various festivals including Buddha Purnima and Maharana Pratap Jayanti. If you are planning to visit the bank for some work in May, they must check the bank’s holiday calendar to avoid any inconvenience.

Although the bank branches will remain closed during these 11 days, mobile and internet banking services will be available to the customers and they will be able to do online transactions. In addition, customers can also avail services at ATM machines and banking kiosks. Earlier in April, there were about 15 bank holidays due to festivals like Good Friday, Ambedkar Jayanti and Eid-ul-Fitr.

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The Finance Ministry has expressed concern over the low rate of recovery from written-off accounts. The ministry said that public sector banks should increase it to 40 per cent, sources have informed.

The rate of recovery is 15 percent –

At present the rate of recovery from written off accounts is less than 15 percent. Public Sector Banks (PSUs) have been able to recover only 14 per cent of the amount written off in the last five years ending March 2022. During this, a total of Rs 7.34 lakh crore has been written off. Out of this, PSBs recovered Rs 1.03 lakh crore.’

There will be a meeting with the officials of the government bank –

Sources said that it seems that after writing off the bad loans, the banks become complacent about the recovery from those non-performing assets (NPAs). He said that this level of recovery is not acceptable. Also more recovery from written off accounts directly increases their profits and improves capital. Sources said the Department of Financial Services would soon hold a meeting with senior officials of public sector banks to review the position on the issue.

What is NPA?

NPA means Non Performing Asset means stuck debt. In simple words, you can say that after taking the loan, when the lender is not able to repay the installment, then the money of the banks gets stuck. First an attempt is made to deposit this amount towards the bank but later it is declared as NPA.

RBI informed-

As per the guidelines of the Reserve Bank of India (RBI) and the policy approved by the boards of directors of banks, non-performing assets (NPAs) have been written off from the books of the respective banks by writing them off. It also includes NPAs for which full provisioning was made.

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The ministry has said this in view of the global financial situation arising after the failure of some banks in America and Europe. According to sources, there is a need for integrated market data on pledged securities to take timely action.

Finance Ministry said this

Besides, in a recent meeting with Finance Minister Nirmala Sitharaman, heads of public sector banks were asked to manage loans given to companies, including pledged shares. Sources said that the finance ministry also said that it would be prudent to increase the stress-testing of loan accounts of large companies.

Banks should also pay attention to small deposits – Ministry of Finance

Public sector banks were also advised to focus on small deposits instead of large and corporate deposits and stay away from the discretionary pricing system. The Finance Minister last week reviewed public sector banks on the basis of various financial parameters. He urged banks to remain vigilant about interest rate risks and stress test the situation regularly.

Recently held a meeting

On Saturday, Finance Minister Nirmala Sitharaman had a big meeting with the heads of public sector banks. The Finance Minister had told all the public sector banks that they should take preventive measures against any anticipated shock. Even after the meeting, the Finance Ministry had said that all major financial parameters indicate stable and flexible public sector banks. At the same time, banks had also assured Finance Minister Nirmala Sitharaman that the Indian banking system is strong and there is nothing to worry about at the moment.

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A few days are left for the government’s budget (Budget 2023). Meanwhile, the government has said that it will not infuse capital into banks in this budget.

According to the information received from the sources, due to the better financial condition of the public sector banks, there is little possibility of the government announcing new capital infusion in the next financial year’s budget . The capital adequacy ratio of public sector banks has exceeded the regulatory requirement and is currently in the range of 14 per cent to 20 per cent.

Raising funds from the market

Let us tell you that these banks are raising funds from the market to increase their resources. Apart from this, they are also adopting the method of selling their non-core assets. The government last infused capital in public sector banks in the financial year 2021-22. It had earmarked Rs 20,000 crore for bank recapitalization through supplementary demand grant.

How much capital has been infused in the last 5 years?

During the last five financial years i.e. 2016-17 to 2020-21, capital of Rs 3,10,997 crore has been infused by the government in public sector banks. Of this, Rs 34,997 crore was arranged through budget allocation while Rs 2.76 lakh crore was raised by issuing recapitalization bonds to these banks.

Nirmala Sitharaman will present the budget

Finance Minister Nirmala Sitharaman will present the budget for the financial year 2023-24 on February 1. This will be the last full budget of the current tenure of the Narendra Modi government as general elections are due next year.

12 banks earned a profit of 15,306 crores

All 12 public sector banks had earned a total profit of Rs 15,306 crores in the first quarter of the current financial year. In the second quarter, this amount increased to Rs 25,685 crore. If compared to a year ago, the profit of these banks increased by nine per cent in the first quarter and by 50 per cent in the second quarter.

SBI earned a profit of Rs 13,265 crore The country’s largest bank State Bank of India (SBI) has earned the highest ever profit of Rs 13,265 crore in the second quarter. Compared to the same quarter a year ago, this growth was 74 percent.

Total profit of banks increased by 32 percent

In the first half of the current financial year, the total profit of public sector banks increased by 32 percent to Rs 40,991 crore. Earlier, in the financial year 2021-22, despite the challenges of the Kovid epidemic, the total profit of these banks had more than doubled to Rs 66,539 crore.

The Finance Minister took this decision recently.

Many public sector banks had also announced dividend in the last financial year. A total of nine public sector banks had distributed Rs 7,867 crore as dividend to the shareholders. Finance Minister Nirmala Sitharaman had recently said that the efforts taken to remove the problem of bad loans have started yielding results and the profits of public sector banks have started increasing.

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An official statement said that during the meeting Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Mudra and Pradhan Mantri Street Vendor’s Self Fund Information was taken about the target of schemes like (PMSVANidhi) and agriculture loan etc.

Banks were advised to set up camps

As per the advisory, in addition to information about these schemes that take care of financial benefits and social security, PSBs were also asked to meet the targets given under the schemes for 2022-23. Banks were also asked to organize financial literacy camps, so that people can be informed about all schemes including micro insurance schemes, UPI Lite and financial transactions.

Banking services strengthened

In the last seven to eight years, banking services have easily reached the people. Along with this, banking services have become stronger and banks are trying to make the customer experience stronger. Banking services were appreciated by the Finance Ministry in the meeting. At the same time, the Indian Banks’ Association (IBA) has already been requested to expedite the user service rating for all scheduled commercial banks.

Discussion took place from KCC to digital

PSBs were also requested to take help of PM Kisan database for the purpose of providing Kisan Credit Card (KCC) facility to all the farmers of the country, about which information was taken. Apart from this, the progress in digitization was also discussed and it has been asked to start facilities on the portal to settle the claims.

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At the same time, he reminded that the present government has not imposed any new tax on the middle class. Sitharaman will present the general budget for the financial year 2023-24 in the Lok Sabha on February 1.

It is expected that the government will increase the income tax limit in this budget and will give some relief to other people apart from middle class taxpayers.

‘I belong to the middle class’, the Finance Minister said at a function of RSS-affiliated weekly magazine ‘Panchjanya’, ‘I also belong to the middle class, so I can understand the pressures of the middle class. I consider myself middle class, so I understand this.

Income up to 5 lakhs is tax free, along with this he reminded that the present Modi government has not imposed any new tax on the middle class. He said that income up to Rs 5 lakh is exempt from income tax. He said that the government has taken several measures like developing metro rail network in 27 cities and making 100 smart cities to promote ease of doing business.

Sitharaman assured that the government can do more for the middle class, as it has grown in size.

The government is increasing capital expenditure , he said, ‘I understand their problems very well. The government has done a lot for them and it will continue to do so. Sitharaman said that the government is increasing capital expenditure in every budget from 2020. He said that it was increased by 35 percent to Rs 7.5 lakh crore for the current financial year because it has a positive impact on the economy.

He said the government’s 4R strategy for the banking sector – recognition, recapitalisation, resolution and reforms – has helped in the revival of public sector banks (PSBs). He said that due to this there has been a reduction in non-performing assets (NPA) and the health of PSBs has improved significantly.

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Let us tell you that this is the first time after 3 years when senior citizen FD rates of most banks have gone above eight percent. In about three years, senior citizens are getting returns of 8% and above on Fixed Deposits. People are running around the banks to review the interest of their existing FDs. Back-to-back repo rate hikes by RBI have finally brought relief to senior citizens who are dependent on interest for their survival.

People re-investing after breaking FD

The rates were reduced to 5.5% due to excess liquidity in the banking system during the Corona pandemic. Now it is a great opportunity to invest in FDs with some private banks offering up to 8% and public sector banks offering over 7.5% interest.

After increasing the interest rates, people are rebooking it again at the new rate by breaking the FDs already done at low interest. They are getting benefit of 20 to 30 thousand from this. Last month, the government capped the returns on the Senior Citizens Savings Scheme (SCSS) to 8%. The government had slashed the interest rate on the Senior Citizens Savings Scheme to 7.4% during the pandemic. However, the difference between SCSS and bank FD has narrowed after the interest rate hike. Some banks are offering even higher rates for super senior citizens or those above the age of 80 years.

Where is the interest

Union Bank of India offers 75 basis points over its regular rate for super seniors. 700-day senior citizens are getting 8% interest. Punjab National Bank is offering 80 bps more interest than the regular rate to Super Senior Citizens. The highest return is 8.1% on a 666 day deposit. Indian Bank offers 25 bps more.

Is it okay to break old FD and get new FD done?

Breaking existing fixed deposits can be beneficial for some customers who have invested in FDs and their bank does not levy penalty for premature withdrawal. If no penalty is being charged then the interest on the earlier FD will reduce with the actual tenure. Another thing to note is that you may need to visit the bank branch to break the FD. FDs can be broken online only if they are booked using netbanking. Where certificates have been issued to customers, the depositors need to approach the bank for premature withdrawal.

Increased interest on savings schemes

RBI has increased the interest rate on its floating rate savings bonds from 7.15% to 7.35%. After this, the interest of National Savings Certificate has become 7%. Apart from banks, NBFCs are offering attractive returns. HDFC’s “Neelmani” deposit scheme offers an interest rate of up to 7.6%. For senior citizens who are also shareholders and use netbanking, the returns are less than 8%. Bajaj Finance, on the other hand, offers up to 7.95% interest on three-year deposits to senior citizens.

The post Senior Citizen FD: Banks increased interest on FD, relief to senior citizens, getting strong returns after 3 years first appeared on Rightsofemployees.com.