Under the new process, once the investor has undergone the KYC process, an intermediary shall perform the initial KYC of its clients and upload the details on the system of the KRA
The Securities and Exchange Board of India, which is working on simplifying the Know Your Client process for easy investing, said there will be no burden on investors for maintaining their data with the KYC Registration Agency (KRA).
“I do not think there will be any burden of charges on investors for maintaining their KYC data as it is likely to be borne by intermediaries,” SEBI executive director, PK Nagpal, said on the sidelines of CII organised Financial Market Conclave.
In case of demat, an investor has to pay a certain annual maintenance and usage charges for their account with the two depositories. In case of single KYC data, KYC Registration Agency will do the record keeping. Mr Nagpal said the KRA regulations had been notified and SEBI was working closely with stock exchanges and intermediaries for the rollout of the new simplified norm.
Under the new process, once the investor has undergone the KYC process, an intermediary shall perform the initial KYC of its clients and upload the details on the system of the KRA. If the investor intends to open account with another intermediary, the intermediary concerned can verify and download the client’s details from the system of the KRA.
This will help the investor in avoiding going through KYC process every time he makes an investment through a single or multiple intermediaries. SEBI has issued guidelines for uniform KYC process for the investors who intend to open accounts with different intermediaries in the securities market.
During the April-October period, the total value of transactions carried out using cheques stood at Rs57.41 lakh crore
The total value of transactions carried out using cheques across the country amounted to Rs8.53 lakh crore in October, down 6% vis-a-vis the same month last year.
Banks had cleared cheques worth Rs9.07 lakh crore in October 2010, according to the Reserve Bank of India (RBI).
The number of cheques cleared by banks in October also went down by 8.9% compared to the same month last year. In all, 11.34 crore cheques were cleared by banks during the month, compared to over 12.44 crore in October 2010.
During the April-October period, the total value of transactions carried out using cheques stood at Rs57.41 lakh crore, against Rs58.23 lakh crore in the same period a year ago, a dip of 1.4%.
A total of 77.97 crore cheques were cleared by banks during the first seven months of the current fiscal, a decline of almost 3.5% from 80.82 crore in the April-October period a year ago. In October, the Mumbai region reported the highest number of cheque clearances, as well as the maximum transaction value for any zone.
Banks in the Mumbai region cleared a total of 2.17 crore cheques, with total value of over Rs1.37 lakh crore. In the Delhi region, banks reported that 1.31 crore cheques, with a total value of over Rs1.08 lakh crore, were cleared in September.
The Chennai region stood third, with banks reporting a total 60.2 lakh cheque clearances worth over Rs44,600 crore.
Cheque transactions have been on the decline during the past few years with the growth of the electronic transfer medium, according to experts. The value of cheque transactions in the country declined by 2.6% year-on-year to Rs101.33 lakh crore in 2010-11. Delhi and Bangalore were the only major centres to report a rise in the value of clearances last fiscal.
However, the total number of cheques cleared by banks across the country grew marginally by 0.4% in 2010-11. Over 1.38 lakh crore cheques were cleared by banks across the country last fiscal, as against 1.30 lakh crore in 2009-10.
Earlier, Bank of India used to charge 2.5% penalty on the outstanding amount in case of pre-payment
The Bank of India (BoI) said that it has abolished pre-payment charges on both fixed and floating rate home loans, with immediate effective.
"We have decided to implement the Damodaran committee recommendation on customer service. Accordingly, we have decided to give total liberty to our home loan customers, both on floating rates as well on fixed rates to switch if they choose to do so irrespective of the source of funds, including takeover by another lender," a BoI official told PTI. Before this, BoI, which has a home loan book of worth Rs15,000 crore, used to charge 2.5% penalty on the outstanding amount in case of pre-payment. The country's largest lender, State Bank of India (SBI), and the private sector bank ICICI Bank, had on November 25 abolished pre-payment penalty on home loans. While the SBI had done away with pre-payment charges for loans on fixed and floating interest rates irrespective of source of funds, ICICI Bank will continue to charge 2% on the outstanding amount of fixed-interest loans. Earlier this week, another state-run lender Central Bank of India too had waived pre-payment charges on its fixed rate home loans.
The Reserve Bank of India on October 25 had indicated that it was planning to scrap prepayment charges altogether saying in such a product the customer is taking the complete risks. However, banks are allowed to charge appropriate pre-payment penalties in the case of fixed rate loans. Within a few days, the National Housing Bank had asked mortgage players to abolish the charges through a circular. But RBI is yet to issue a circular on this. Normally an RBI directive/advice becomes mandatory only after a circular.