Banking
Banks asked to inform customers in advance about fall in minimum balance
RBI also asked banks to ensure that the balance in savings account does not turn into negative balance mainly due to levy of charges for non-maintenance of minimum balance
 
The Reserve Bank of India (RBI) on Thursday asked banks to inform their customers about fall in minimum balance at least a month in advance. The central bank said penal charges should be levied from customers only to the extent of shortfall in such balances.
 
“In the event of a default in maintenance of minimum balance/average minimum balance as agreed to between the bank and customer, the bank should notify the customer clearly by SMS/ email/ letter that in the event of the minimum balance not being restored in the account within a month from the date of notice, penal charges will be applicable,” the RBI said.
 
The RBI directed banks to ensure that penalty should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account.
 
The RBI asked banks to ensure that the balance in the savings account does not turn into negative balance solely because of levy of charges for non-maintenance of minimum balance.

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COMMENTS

Sreekanth Yelicherla

2 years ago

No mention about when it is going to be effective! It is effective from April 2015.

Rakesh Goyal

2 years ago

This will minimise one of the loot avenues, perpetrated by the banks on the customers. Bank do not compete but they act as monopoly under IBA. A good step by RBI, after a long time.

How Facebook's New Policy Digs Into Your Data
More than 1.2 billion users makes for a lot of personal data
 
More than 1.2 billion users makes for a lot of personal data. But what does Facebook do with this advertising treasure trove of information? Proposed updates to the social network’s data policy sheds some light on just how a user’s personal information may be surrendered. Here’s a primer on the new policy set to take effect soon.
 
1. Like us off Facebook? In addition to the stuff you share on Facebook, the social network collects information about you off Facebook, such as when you visit some third-party sites and use the services of companies that are owned and operated by Facebook, such as Instagram and WhatsApp, whose privacy policies may differ.
 
2. A bird’s-eye view If you use GPS or Wi-Fi on your smartphone, Facebook may tap into those geographical locators to present you with relevant ads or offers in your area. Facebook also fetches location information from its own website via photos you share with friends and photos your friends share with you.
 
3. Cha-ching Ever make a purchase or donation on Facebook? Facebook stores that payment information — including credit or debit card numbers, account authentication information, and billing, shipping and contact details — and may use it to sell you something in the future.
 
4. Out of your hands A Facebook message from a friend may buoy your spirits but it’s also another avenue that Facebook uses to collect information about you. Same thing goes when another person posts a photo of you or uploads, syncs, or imports your contact information.
 
5. Game over Third-party apps, such as those games you play with Facebook friends, can access your public profile but the information collected is subject to the apps’ own terms and policies — not Facebook’s. Information in a public profile includes a user’s name, gender, and list of friends, among other things.
 
The extent to which Facebook leverages your personal information for targeted advertising depends in part on the permissions you grant the company. However, one phrase in the new data policy makes this much clear: “…we use all of the information we have about you to show you relevant ads.”
 
Click here for more Terms of Surrender posts. And let us know if you think you’ve spotted a potential candidate for next time. 
 

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US Fed Announces Sweeping Review of Its Big Bank Oversight
Ahead of Senate hearing on regulatory capture, the Federal Reserve Board wants to look at whether the views of examiners are being heard by higher-ups
 
Editor's Note: This story has been updated to cover the Federal Reserve Board's announcement that it would review its supervision of large banks.
 
On the eve of a U.S. Senate hearing about whether regulators are too soft on banks, the Federal Reserve Board announced a broad review of its supervision of the biggest U.S. financial institutions.
 
Among other things, the Fed said its two-pronged review, which will be conducted by both the board and its inspector general, would look at whether avenues exist for decision-makers to hear and reconcile divergent views from bank examiners, a concern highlighted in recent stories by ProPublica and This American Life about the Federal Reserve Bank of New York.
 
The review encompasses all regional Federal Reserve banks that supervise large institutions. A Fed spokesman declined to comment about why the board decided to act at this time.
 
The announcement Thursday came less than 24 hours ahead of a Senate banking subcommittee hearing on the topic of regulatory capture – when the agencies charged with enforcing financial rules get too cozy with the institutions they oversee to be an effective watchdog.
 
Citing concerns about weak oversight by the New York Fed, one of the panel's members, Sen. Jack Reed, D-R.I., introduced a bill this week to make the bank's president subject to Senate confirmation. A private board currently selects the New York Fed president. In 2009, it picked Bill Dudley a former Goldman Sachs managing director. Dudley is expected to testify at the hearing.
 
"We are not perfect," Dudley states in written testimony that extols Fed supervision and claims the financial system is stronger for it. "We cannot catch or correct every error by a financial institution, and we sometimes make mistakes."
 
Reed said the change is needed to add " meaningful layers of accountability" at the New York Fed, which supervises some of Wall Street's most powerful banks by virtue of its location in Manhattan.
 
In September, ProPublica and This American Life reported on secret recordings made by former New York Fed examiner Carmen Segarra that showed officials were reluctant to aggressively challenge Goldman Sachs over questions about its policies and transactions.
 
Last month, an inspector general's report cited the New York Fed for failing to follow through with examinations of JPMorgan Chase and missing opportunities to spot the "London Whale" trades that ended up costing the bank billions in losses.
 
Segarra's recordings captured conversation about examiners assigned to JPMorgan seeking transfers because they felt they were being blocked from acting independently.
 
The New York Times reported Wednesday that Goldman fired two employees, one of whom previously worked at the New York Fed, amid inquires into a document leak from the New York Fed.
 
Segarra recorded approximately 46 hours of meetings while she was stationed at Goldman Sachs in 2012. She was fired after supervisors pushed her to change a finding that Goldman had an insufficient conflicts-of-interest policy and she refused.
 
The New York Fed says Segarra's firing was not related to her Goldman findings. Her whistleblower lawsuit challenging the firing is on appeal after being dismissed without a ruling on the merits.
 
In addition to Dudley, Columbia University professor David Beim is scheduled to testify at the hearing. At Dudley's request, Beim in 2009 conducted a study of the New York Fed that identified a risk-averse culture and undue deference to banks under its charge.
 
Segarra was not invited to testify and, through a representative, issued a statement expressing disappointment.
 
"She believes any official subcommittee hearing on regulatory capture will be incomplete without her firsthand accounts of what she saw during her tenure at the Federal Reserve Bank of New York," the statement said.
 
Listen to the tapes: Hear excerpts from Carmen Segarra's recordings from inside the New York Fed.
 
Courtesy: ProPublica.org

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