RBI asks banks to upload KYC with central registry from January 1

Mumbai, December 8 (PTI): Reserve Bank today directed all banks to upload the Know Your Customer (KYC) data pertaining to new individual accounts opened after January 1, with Central KYC Records Registry. Besides, it has been decided to allow One Time Pin (OTP) based e-KYC subject to certain restrictions.

"All Scheduled Commercial Banks (SCBs) are required to invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017, with Central KYC Records Registry," RBI said in a notification. All banks are, however, allowed time upto February 1 for uploading date in respect of accounts opened during January 2017, it said.

Regulated entities other than banks are to upload the KYC data pertaining to all new individual accounts opened on or after from April 1, with Central KYC Registry.

For OTP, it said, restriction would include specific consent from the customer for authentication and the aggregate balance of all the deposit accounts of the customer should not exceed Rs 1 lakh.

Besides, the aggregate of all credits in a financial year, in all the deposit taken together, should not exceed Rs two lakh.

"Banks should invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017 with CERSAI in terms of the provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005," it said.

Under Foreign Account Tax Compliance Act (FATCA) and Common Standard on Reporting (CRS), regulated entities should adhere to the provisions of Income Tax Rules and determine whether they are a reporting financial institution as defined in Income Tax Rule.

Black money estimates overshot as 82% of cash deposited in banks

About Rs.12.6 trillion had been deposited

into bank accounts as of 3 December

New Delhi, December 6 (Bloomberg):  Indians have validated 82 percent of bank notes rendered worthless by Prime Minister Narendra Modi’s surprise move last month, according to people with knowledge of the matter, undermining the government’s estimate of black money in the economy.

About 12.6 trillion rupees ($185 billion) had been deposited into bank accounts as of Dec. 3, the people said, asking not to be identified citing rules for speaking with the media. The government had estimated that about 5 trillion rupees of the 15.3 trillion rupees sucked out by Modi’s move would stay undeclared, implying that this was cash stashed away to evade taxes, known locally as black money.

Lack of a meaningful cancellation could be a double blow for Modi as the measure was being used as a political and economic gauge of the success of his Nov. 8 move. One of Modi’s biggest campaign pledges was to expose black money in Asia’s No. 3 economy, and economists were viewing the cash as a potential windfall for the government.

“Some of the windfall that the government was hoping for from the cancellation of notes will be dented,” said Anjali Verma, chief economist at PhillipCapital Ltd. “That means the fiscal stimulus that was being expected might also take some hit. That is not good news at a time when direct consumption, private investment is not expected to pick up.”

Private indicators published over the past week signal that the $2 trillion economy will be hurt by the cash clampdown. Economists have also slashed India’s growth forecast for October-December, imperilling the nation’s status as the world’s fastest-growing big economy.

‘Defeats the Theory of Black Money’

Finance Ministry spokesman D.S. Malik wasn’t available for comment. The rupee ended little changed at 68.22 a dollar in Mumbai on Monday, the benchmark stock index rose 0.5 percent and the yield on the 10-year sovereign bond fell to 6.22 percent from 6.24 percent.

“Markets are not too worried at the moment,” said Chakri Lokapriya, Mumbai-based managing director at TCG Advisory Services, which manages about $3 billion. “But if 12-13 trillion rupees comes back into the system it defeats the whole theory of black money.”

In such a situation where the gains of demonetisation aren’t apparent, individuals will more closely analyse the pain. A slump in demand due to the cash shortages will hurt company revenues and government tax collections, widening the budget deficit and ultimately weakening the rupee, Lokapriya said.

- Bloomberg

Recruitment of Probationary Officers in State Bank of India

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SBI in pact with Flipkart for EMI facility ( July 02, 2016)

State Bank of India (SBI) on Friday partnered with Flipkart to offer pre-approved equated monthly instalment (EMI) facility to the bank's customers. Under this partnership, SBI will provide an overdraft facility to pre-qualified set of customers for transacting on Flipkart for a minimum purchase of Rs.5,000.

The EMI facility will be available in three tenures - 6, 9 and 12 months - and the bank will not charge any fees to process the facility. The interest rate s for such overdrafts will be same as personal loan the bank offers. Rajnish Kumar, managing director (National Banking Group), SBI, said: “We have identified 1 million SBI account holders who have qualified for the overdraft.” He said this facility aims to bring EMI facilities on Flipkart to people who do not have credit cards.

“The objective is to provide finance to credit worthy individuals through an end-to-end online facility without having to go through the process of applying for a personal loan for simple purchases,” Kumar said. The bank also launched SBI Mingle- the social media banking platform for Face-book and Twitter users. Using SBI Mingle, customers can do a host of banking services on Facebook or Twitter at their own convenience.

SBI signs pact with World Bank ( July 04, 2016)

State Bank of India has inked agreements with the World Bank for a $625-million (around Rs.4,200 crore) facility to support grid connected rooftop solar programme in the country. This will help SBI finance grid connected rooftop solar photovoltaic projects at very competitive rates, the bank said in a statement. “This, in turn, will catalyse the market and support the government to faster achieve its target to generate 40 GW of electricity from widespread installation of rooftop solar photovoltaic panels,” it said. The eligible beneficiaries under the facility would be developers, aggregators and end-users, who wish to set up solar PV projects mainly on commercial, industrial and institutional rooftops.

State Bank to offer banking services on Facebook, Twitter ( July 02, 2016)

Leveraging on the popularity of Facebook and Twitter, State Bank of India (SBI) has launched "SBI Mingle", allowing its customers access various banking services via these social platforms. "Using SBI Mingle, the bank's customers can do a host of banking services on their Facebook orTwttter accounts at their own convenience,” the bank said. Simultaneously, SBI has also tied-up with Fllpkart for preapproved EMI facility on purchases and launched "SBI Digital Villages” lo make a select rural segment part of the cashless ecosystem.