Money & Banking
Central bank seeks to dispel rumours about KYC guidelines
The Reserve Bank of India has sought to dispel rumours and curb malpractices in banks on the pretext of Know Your Customer (KYC) norms by issuing clarifications on the guidelines.
 
The RBI guidelines say: "If your current address is not the same as the proof submitted to your bank, a simple declaration of your new address is adequate."
 
Even without the "proof of identity and address", anyone can open a savings bank "small account" by submitting a recent photograph and signature and enjoy account balance of up to Rs 50,000, withdrawals of up to Rs 10,000 per month and total credits of up to Rs 1 lakh per financial year, it said.
 
Banks need to reconfirm KYC details only in every 2, 8 or 10 years depending on the risk profile, it added.
 
For KYC norms, one "proof of identity" and "proof of address" and a recent photograph are enough to open a bank account, RBI stated.
 
The Aadhaar card, a driving license, voters' identity card, passport or National Rural Employment Guarantee Act (NREGA) card serves as both proof of identity and proof of address while PAN card serves only as proof of identity, the apex bank clarified.
 
For any grievances about the KYC process, a person can complain to the bank and if unsatisfied with the response, can directly complain to the RBI's Banking Ombudsman, the notification said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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Patel's 'handover' at RBI is low key, unlike other governors
In keeping with the low-key style he is known for, Reserve Bank of India's new Governor Urjit Patel began his first working day on Tuesday away from media spotlights, unlike the practice followed by RBI governors in the past. There were no milling photographers at the "handover".
 
Patel had officially assumed charge on Sunday when the term of his predecessor Raghuram Rajan expired. Monday was a holiday here on account of the Ganesh Chaturthi, which kicked off the 10-day Ganesh festival.
 
An RBI spokesperson said photographs of the official ceremony of Patel assuming office would be released later on Tuesday.
 
Patel has taken over the bank's charge from Rajan after serving as RBI Deputy Governor since January 2013.
 
He has also worked at the International Monetary Fund (IMF), and was a consultant to the Union Finance Ministry from 1998 to 2001.
 
The RBI said Patel has a Ph.D. in Economics from Yale University, an M.Phil. from the University of Oxford and a B.Sc. from the University of London.
 
Following his departure from the RBI, Rajan on Monday cautioned governments and central bankers across the world against relying too much on low interest rates to propel growth or use it as a substitute for undertaking key structural reforms in the economy.
 
He told the New York Times in an interview that lower policy rates are often an easy solution. However, these can trap economies in a fear of psychosis that when they normalise the rates eventually could hurt growth and distort markets, thereby making a low interest rate policy difficult to abandon.
 
When Rajan took charge at the RBI in 2013, at a time the US Federal Reserve had declared its intent to wind down its stimulus programme, the rupee plunged in value in respect of the US dollar on fears about a spiralling current account deficit.
 
In a series of measures, Rajan managed to stabilise the currency that also brought back investors to the country. 
 
"Rajan's disciplined and focussed approach in leading the Reserve Bank during his first year as governor was remarkably impressive," British magazine Central Banking said while awarding Rajan its 'Central Banker of the Year' award for 2015.
 
Predicting the 2008 financial meltdown that is still affecting global economy, Rajan in 2005 argued that increasingly complex markets with myriad instruments of credit and mortgage-backed securities in ever greater quantities made the global financial system a risky place.
 
Almost a decade down the line, Rajan is stronger in his belief that global markets now are at the risk of a crash due to the competitive loose monetary policies being adopted by developed economies.
 
Pointing to the very low interest rate policies of the US Federal Reserve, the Bank of Japan and the Bank of England in a bid to stimulate their economies, Rajan has been warning that emerging markets are especially vulnerable to big shifts in capital flows triggered by the unprecedented monetary accommodation in rich countries.
 
The elevation of Urjit Patel as Governor has naturally raised expectation among those who were critical of Rajan for not easing enough the monetary policy by cutting rates.
 
When talking about the challenges for Patel as the Governor, it should also be kept in mind that his moorings are as monetarist as his predecessor Rajan's were, and he is considered to attach the same importance to inflation control as did Rajan.
 
His views on monetary policy were expressed at the time Rajan held rates in the February 2015 review after making an unexpected rate cut a month edarlier -- the first in nearly two years.
 
Patel at the time elaborated on the "important backdrop" to Rajan's move to hold rates.
 
"We are in the midst of the age of competitive depreciation and of a beggar-my-neighbour philosophy. It brings to mind an old African saying that when elephants fight, the grass suffers," Patel said at a press conference to announce the policy review, on the trend of accommodative monetary policies being adopted by developed economies.
 
"While the ECB (European Central Bank) and the Bank of Japan are printing money and devaluing their currencies on one hand, the US economy is reviving on the other. Anyone in the middle is getting crushed," he pointed out.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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SC asks CBSE to provide answer sheets strictly under RTI Act without charging exorbitant fees
Despite the historic 2011 judgment of the Supreme Court, where procuring copies of answer sheets by students came under the Right to Information (RTI) Act, the Central Board of Secondary Education (CBSE) continued to defy it. In a reply to a RTI query, posed by Whistle for Public Interest (WHIP), comprising a group of law students, the CBSE replied on 28 December 2015, that, it charges Rs700 per subject for providing copy of answer sheets. In addition, students were compulsorily required to go through the process of ‘Verification of Marks’ for which the CBSE has prescribed fee of Rs300 per subject. 
 
This means that a student has to pay Rs1,000 per subject, if she applies for a copy of the answer sheet. This was in gross violation of the SC order of 2011, which held that “Answer-Sheet is an Information and therefore, examinees shall have the right to inspect their Answer-Sheets under RTI Act, 2005 and its Rules made thereunder which prescribes Rs10 as application fee for getting the information and Rs2 per page for the copies of such information.” 
 
This prompted the group of young lawyers of WHIP to file contempt of court at the apex court. Kumar Shanu, one of the members of WHIP says, “We filed a contempt petition against the Chairman of CBSE in the Supreme Court for willfully disobeying the 2011 judgement. Our Contempt petition was heard on 1st August and on 16th August by the division bench of the Supreme Court comprising Justice Ranjan Gogoi and Justice PC Pant. Advocate Prashant Bhushan represented us on pro-bono basis. The express direction to the CBSE in this case has again enabled students to access their evaluated Answer-sheets under RTI an application fee of Rs10, whereas, no fee can be charged from the applicants who fall under the below poverty line (BPL) category.”
 
In its recent order, the Supreme Court directed the CBSE to “scrupulously observe” the directions made by the Court in 2011. The CBSE has been asked to provide evaluated answer-sheets to candidates under RTI Act in compliance with the Supreme Court’s Ruling in the matter of CBSE & Anr. Vs. Aditya Bandopadhyay & Ors –Civil Appeal No. 6454/2011). 
Before filing the contempt petition in the Supreme Court, WHIP members sent a letter on 22 January 2016, to the Chairman of CBSE requesting to quash this unfair rule and implement the law of providing the answer-sheets under RTI. 
 
Shanu says, “CBSE stated that they could not provide answer sheets under RTI, as it would involve huge costs. The Board also said that the fees was charged not with the intention of earning profit, but to ‘devise a mechanism that is systematic and fool proof to remove the element of subjectivity’.”
 
This compelled WHIP members to approach the Supreme Court. Their contentions was that, “CBSE, being an institution responsible for educating a large section of the society refuses to comply with the law laid down by the Supreme Court of India. CBSE was blatantly taking away the rights of nearly 50 lakh students every year as it conducts board examinations, Joint Entrance Examination (JEE), National Eligibility cum Entrance Test (NEET) and National Eligibility Test (NET). The Supreme Court’s decision in our contempt petition shall not only ensure the students get access to their answer-sheets under RTI but it will also help a large number of youngsters learn and use the Act as a tool in the matters involving public authorities. This would help them become responsible citizens.”
 
By the way, all the state run institutions falling under the meaning of Public Authority defined under section 2(h) of the RTI Act are also obliged to provide answer-sheets under this transparency law. 
 
Here is the order passed by the Supreme Court in CBSE matter…
 
 
(Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.)
 

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COMMENTS

Sudhakar Ojha

3 months ago

I think if this is extrapolated to all tests like online tests the testing system could get destroyed as the question bank would get revealed. RTI may need moderation.

SRINIVAS SHENOY

3 months ago

What do you think?... Write your comments. Most of us particularly, the politicians have their own guidelines which they observe. The rule of law, should be observed by all modern civilized societies.

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