HDFC Bank will begin charging its customers for its InstaAlert SMS service, under which the Bank provides real-time alerts on account activities. Customers will be charged Rs15 per quarter for salary or savings accounts, while the charge would be Rs25 per quarter for current account customers. The Bank’s InstaAlerts service allows customers to keep a track of various payments and receipts,...
From 1st April, banks would offer differential interest rates for only on term deposits of Rs1 crore and more and may refuse premature withdrawal of the deposit
Mumbai: The Reserve Bank of India (RBI) has tightened norms for differential interest rates asking banks to offer them only on term deposits of Rs1 crore or more, and permitted them to refuse premature withdrawal of such deposits, reports PTI.
“The permission to offer varying rates of interest for deposits of the same maturity shall apply to single rupee term deposits of Rs1 crore and above.
“Banks may therefore offer same rate of interest or differential rates of interest for deposits of Rs1 crore and above of the same maturity,” the RBI said in a notification.
The changes will be applicable from 1 April 2013
For deposits below Rs1 crore of the same maturity, the RBI said, the same rate will apply.
On premature withdrawal of large size term deposit, it said: “The bank at its discretion, may disallow premature withdrawal of large rupee term deposits of Rs1 crore and above” of all depositors, including deposits by individuals and Hindu Undivided Families (HUFs).
The bank shall have the freedom to determine its own penal interest rate of premature withdrawal of term deposits, it added.
The RBI also said that henceforth the expression “bulk deposit” would be used for single rupee term deposits of Rs1 crore and above.
As of now, the term “bulk deposit”, though not specifically defined, has been interchangeably used with “wholesale deposits”—deposits of Rs15 lakh or above.
The country’s monetary authority said that banks should disclose in advance the schedule of interest rates on deposits including those on which differential interest will be paid.
“Interest paid by banks should be as per the schedule and not be subject to negotiation between the depositor and the bank,” the RBI added.
Earlier also, banks were permitted to disallow premature withdrawal of large deposits held by entities except for those held by individuals and HUFs.
The RBI also modified the memorandum of instructions for opening and maintenance of Rupee/foreign currency Vostro accounts of non-resident exchange houses.
Through the amendment, payments to medical institutions and hospitals in India, for medical treatment of NRIs/their dependents and nationals of Hong Kong, Singapore and Malaysia, have been included in the list of “Permitted Transactions”.
Also, payments to hotels by nationals of Hong Kong, Singapore and Malaysia and NRIs for their stay has been included in the list.
State-owned Canara Bank has raised fixed deposit rates by up to 1% on select maturities. The new rates come into effect from Friday
New Delhi: State-owned Canara Bank on Thursday raised fixed deposit rates by up to 1% on select maturities, reports PTI.
However, the interest rate has been brought down by 0.5% on one maturity slab (180-269 days) to 7.5% from 8%.
Interest rates on 1-2 years and 3-5 years fixed deposits have been raised by 0.55% to 9.05%, Canara Bank said in a statement.
Fixed deposits between 270 days and one year will earn 1% higher interest. The new rate would be 9% against existing rate of 8%, it said.
Interest rate on 5-10 years deposits has been raised by 0.55% to 9.05%.
The new rates would be effective from Friday.