New procedure for obtention of 15G and 15H | Income Tax New Rule

Banks are obtaining Form15G/15H in triplicate from the eligible persons and submit one copy to the Income Tax authorities every month after retaining a copy for branch records.

The following is the new procedure for obtention of 15G and 15H.

1.The formats of Form 15G/15H are modified. The new formats are available at banks. The new modified forms are to be obtained with effect from 1st October 2015.

2.Declaration by person claiming receipt of certain incomes without deduction of tax can submit in the New forms 15G/15H in any of the following manners:

In paper form

Electronically after duly verifying through an electronic process in accordance with the procedures, formats and standards.

National Pension System (NPS) as an investment option for NRIs

RESERVE BANK OF INDIA HAS PERMITTED NON-RESIDENT INDIANS (NRIs) TO SUBSCRIBE TO THE NATIONAL PENSION SYSTEM GOVERNED AND ADMINISTERED BY THE PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY (PFRDA).

As per extant FEMA provisions NRIs are not allowed to subscribe to National Pension Scheme (NPS). However, with a view to enable NRI’s access to old age income security, RBI , in consultation with the Government of India has enabled National Pension System (NPS) as an investment option for NRIs under FEMA 1999, vide their A P (DIR Series) Circular No. 24 dated 29.10.2015. Accordingly, NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act.

The subscription amounts shall be paid by the NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account. There shall be no restriction on repatriation of the annuity/ accumulated savings.

Banks are advised to take note of the above and bring the same to the notice of their constituents and customers concerned.

How to Use CANARA BANK MOBILE APP

1.Self Registration, validation through OTP and Activation:

One of the bottlenecks for the users to start using the Mobile Banking was the need to visit the Branch/ATM to get the account activated. In the enhanced version the Registration and activation are simplified as under:

a)Apart from registering through the Branch/ Sending SMS for registering for Mobile Banking, the Users can register for Mobile Banking through the Mobile Banking Application itself by opting for “New Registration” and inputting the

Registered Mobile Number.

b)The User ID and default MPIN would be displayed and SMS would also be received. Thereafter, the handset is validated and OTP (One Time Password) would be received through SMS. The OTP received through SMS is automatically updated in the Application without requiring the user to input the same.

c)Then the system directs the users to Change the default MPIN.

d)On changing the default MPIN the user is directed to the Activation Page. User has to input the ATM Card Credentials in the Mobile Banking Application itself to activate the Mobile Banking.

2.Retrieval of User ID

There was no option in Mobile Banking for retrieval of User ID and the user had to approach the Bank to get the User ID. Now the user would be able to retrieve the User ID by opting for „Forgot User Id‟ in the Login Page and inputting the Registered Mobile Number.

3. Resetting of MPIN:

As the Login is with User ID and MPIN, in the login page itself „Forgot MPIN‟ option has been provided to enable the users who have forgotten the MPIN to reset the same and then login.

While resetting the MPIN, User is required to activate his/her Mobile Banking afresh with the help of their Debit Card in the Application itself.

4.Option for Term Deposit Enquiry:

This option enables the user to enquire about the details of the Term Deposits under the Customer ID with which Mobile Banking has been registered.

5.Option for Loan Enquiry:

This option enables the user to enquire about the details of the Loans under the Customer ID with which Mobile Banking has been registered.

6.Display of Sub Menus under each Main Menu:

Display of Sub Menus under each of the Main Menu has been introduced to enable the customers to use the options with ease.

7.Personalization of the Home Page :

The Home Page of the Mobile Banking Application has been personalized to include the User Name and to provide an option for the User to add the Profile Picture of his/her choice.

8.IMPS Beneficiary Maintenance:

To enable the users to put through the IMPS transactions with ease, maintenance of IMPS Beneficiaries has been introduced. The beneficiaries can be maintained Type wise i.e. different lists can be maintained as under:

a)Beneficiaries for Transfer based on Mobile Number (P2P)

b)Transfer based on Account Number (P2A) and

c)Payments to Merchants (P2M).

9.Favorite Transactions at one click:

The latest IMPS transactions put through are stored under Favourites (Star at the bottom of the Screen). On clicking on the Favourites the list of transactions would be displayed and the User can transfer funds by just tapping on any of the transactions displayed without rekeying in the details.

10. Video Help and FAQs within Application:

The Video Help would guide the User in putting through the transactions, whenever the users needs guidance, he/she can go through the Video Help and then put through the transaction.

The FAQs incorporated in the Application covers all the areas of the Mobile Banking and the user can go through the same for any clarifications required regarding Mobile Banking.

11. Single Link for Downloading App irrespective of Operating System:

On clicking on the Short Link received through SMS, the Operating system of the Handset would be validated. The Users would be directed to the relevant Play Store viz. Google, Apple etc. to update the latest version of Mobile Banking / Register for Mobile Banking.

12.The updated Mobile Banking User Manual would be released on 19.11.2015 and would be available in Cannet.

13.Logout Option has been introduced, by invoking it, the user would be able to Log Out of the Mobile Banking Application.

14.Customers would be able to call the Call Center by just tapping on the Phone Numbers displayed under Contact Us.

15.On Logging Out, if the User wants to Log in again, he/she can do so by clicking on the “Login Again Button” in the Logout Screen.

New Banknotes Introduced By RBI for the visually impaired

Banknotes with new numbering pattern and special features for the visually impaired have been introduced.

1. Reserve Bank of India is issuing Banknotes in Mahatma Gandhi Series 2005 with a new numbering pattern and special features for the visually impaired in ₹ 100, 500 and 1000 denominations (images of banknotes enclosed).

2. In the new numbering pattern, the numerals in both the number panels of these denominations ascend in size from left to right, while the first three alphanumeric characters (prefix) remain constant in size. Printing the numerals in ascending size is a visible security feature in the banknotes so that the general public can easily distinguish a counterfeit note from a genuine one.

3. Special features for the visually impaired have been introduced in order to make it easier for them to identify banknotes, the size of the Identification Mark in ₹100, 500 & 1000 denominations has been increased by 50% and angular bleed lines - 4 lines in 2 blocks in ₹ 100, 5 lines in 3 blocks in ₹
500 and 6 lines in 4 blocks in ₹ 1000 denominations, have been introduced.

4. The design of banknotes of ₹100, 500 and 1000 denomination is similar in all other respects to the current design of banknotes in Mahatma Gandhi Series 2005. All the banknotes in these denominations issued by the Reserve Bank in the past will continue to be legal tender.

New Banknotes by RBI 

CANARA BANK NET BANKING : First Time User Tutorial

If you are using CANARA BANK for the first time, then follow these easy steps to start your net banking.

NOTE: Bank or Branch will not automatically start your net banking if you have ticked or selected net banking in your form.

Applying for net banking is a separate process, mentioning in the form is your acceptance that transaction done through net banking or debit card is your responsibility.

STEP 1 : Go to https://www.canarabank.in/

STEP 2 : Click on circled option as shown in image

STEP 3 : New Window will open as shown

Please click " I AGREE" option to continue, if you are interested then you can read all the conditions.

STEP 4 : New Window will open in which you have to feed all the information according to guidelines after the image:

Please follow below Guidance to fill all the options above:

1. Please fill 13 digit account number which you can  get from your front cover of welcome kit given to you by CANARA BANK official while opening new account, or you can see that no inside your passbook if you are an old customer.

2. Please enter full 16 digit debit card given in welcome kit, in case you do not have debit card, get it issued by your home branch.

3. Please enter your full mobile no given in bank records, no need to write +91 before mobile no.

4. Then write your customer ID which is always written on your passbook or on your welcome kit.

Each customer has unique customer id in every bank as per RBI rule.

When you will enter all the information correctly, please continue to next page


STEP 5: A new window will ask you to put one OTP which is one time 6 digit password sent on your registered mobile no and a new password which should satisfy following conditions :

1. One Upper Letter
2. One numeric character
3. Minimum 8 & Maximum 12 characters
After punching password as per your choice. Move to Step 6

STEP 6: You will receive SMS confirming your net banking registration

Then login with new password which you have set in STEP 5 by visiting https://netbanking.canarabank.in/entry/ENULogin.jsp#

NOTE : Your customer ID which you have entered in STEP 4 will become your USER ID.

For doing transaction on canara bank, please follow our next post on how to set your transaction password in simple steps on www.canarabank.com to do online money transfer.

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How RBI Repo Rate affect Indian economy and Why Loan rate has come down

Why deposit rates have gone down explained in simple story.

Dear Citizens
Santa ki kahani
Santa: I have heard recently that Mr. Rajan has reduced Repo
Rate by 50 basis points and everyone is saying that this is good
for the market. Loan EMI may also come down. What is this rate
cut means actually? I want to understand this.
Banta: To understand this you first need to know, how does a
bank function.
Santa: Why?
Banta: Because all these are inter-related. Tell me – what does
a bank do?
Santa: Bank takes money from depositors and gives loan to
earn interest. That way they keep everyone happy and make a
profit also.
Banta: Correct, but there are more to it. Let me explain this in a
very simplistic way. Bank needs money. Bank can get money
from depositors like you and me and also from RBI. But bank
also needs to pay certain interest to us and also to RBI.
Santa: Ok.
Banta: Let us try to understand first – what happens when we
deposit, say, Rs. 100 with a bank.
Santa: I know that. Bank gives that Rs. 100 to someone who
needs a loan.
Banta: No, it is not that simple. Remember, though bank can
earn interest by giving away loans, but it is also very risky.
There are many cases of loan defaults. This way banks can put
all our money into high risk areas. It has to be protected.
Santa: How?
Banta: Ok, RBI has made it mandatory that upon receiving, say,
Rs. 100 – banks first have to deposit Rs. 4 with RBI. RBI keeps
this Rs. 4 in its current a/c and hence banks do not receive any
interest on this money. This is known as Cash Reserve Ratio or
CRR, which is currently at 4%.
Santa: Hmmm, then?
Banta: RBI has also made it mandatory that upon receiving,
say, Rs. 100 – banks need to compulsorily buy central and
state govt. securities of Rs. 21.50. Of course banks will earn
some interest income here. This is known as Statutory Liquidity
Ratio (SLR), which is currently at 21.50%.
Santa: Ok, so you mean to say that upon receiving Rs. 100,
banks can spend only Rs. 74.50 at its own will.
Banta: Correct. 100 – (4 + 21.50) = 100 – 25.50 = 74.50
Santa: But you were saying that banks can also borrow from
RBI. What interest banks pay to RBI?
Banta: Before 30th September, banks were paying 8.25%
interest to RBI when it borrows money from RBI. Now this rate
has been reduced by 50 basis points. So banks now need to pay
interest to RBI, if it borrows from RBI, at the rate of 7.75%. This
is known as Repo Rate.
Santa: Can fixed deposit rate be affected by reduction of Repo
Rate?
Banta: Of course. If banks get money from RBI @7.75%, why
will banks pay higher interest to you and me? One year FD rate
is already revised by many banks and it is equal to or very close
to 7.75%.
Santa: But as now banks are getting money at a cheaper rate,
then they should reduce the loan interest rate i.e. passing on
the benefits it receives.
Banta: Correct. They should. And on that hope market is
cheering. If companies get loan at a cheaper rate, they will
likely to expand their businesses. That will create more jobs,
more income and boost the economy.
Santa: How is inflation linked to this?
Banta: See, when loan becomes cheaper, people tends to
borrow more. That means people will have more money to
spend. This will increase the demand for goods, and if supply
does not increase to match this demand, then prices will
increase.
Santa: So there is a chance, that inflation may rise also?
Banta: Well, yes. But inflation depends on many other factors as
well, like production (industrial and agricultural), manufacturing,
export – import, foreign currency movement etc. So inflation
may increase or may not.
Santa: One last question. Like we deposit our money with
banks, can banks also deposit their money with someone?
Banta: Yes, they can deposit with RBI and earn interest too.
This interest is typically 1% less than the repo rate. This rate is
known as Reverse Repo Rate.
Santa: Great! So now I understand CRR, SLR, Repo Rate,
Reverse Repo Rate and their impact on deposit rate, loan
interest rate and on inflation. Thanks.
Banta: Welcome!

Important Banking Awareness Questions for Customers

Full forms and Banking Terms explained

1. MICR code consists of how many digits?
Ans: 9 digits.
(First three digits denotes city, next three digits
representing the bank and the last three digits
representing the bank branch)

2. What is the minimum limit in RTGS system?
Ans: 2 lakhs (there is no upper limit in RTGS)

3. What is full form of CTS?
Ans: Cheque Truncation System

4. Under which service, customers may access their
bank account and perform basic transactions from
any of the member branch offices.
Ans: Core Banking Solution (CBS)

5. Exchange of cash flow in different currency is
known as:
Ans: Currency Swap

6. Assets or loans which stop performing after 90
days is known as:
Ans: Non Performing Asset (NPA)

7. Who controls the Monetary Policy in India?
Ans: RBI (Reserve Bank of India)

8. Which card is
issued by NPCI (National Payments Corporation of
India)?
Ans: RuPay Card

9. Definition of Current Account deficit:
Ans: A measurement of a country's trade in which
the value of goods and services it imports exceeds
the value of goods and services it exports.

10. Full form IFSC –
Ans: Indian Financial System Code

11. Commercial paper can be issued for a maximum
period of:
Ans: 365 days or 1 year.

12. The Mutual funds in India follow accounting
standards laid by:
Ans: SEBI (Securities and Exchange Board of India)

13. Minimum amount for Certificate of Deposit has
been fixed at:
Ans: Rs. 1 Lakh

14. AML is a term mainly used in the financial and
legal industries. Expand the term AML:
Ans: Anti Money Laundering

15. PIN is a number allocated to an individual and
used to validate electronic transactions. Expand
PIN:
Ans: Personal Identification Number

16. What is Repo rate?
Ans: It is the rate is the rate at which RBI lends
money to the commercial banks.

17. What is Stale Cheque?
Ans: A cheque which is presented to a bank after 3
months from date of issue is considered as stale
cheque and will often not be honored for cash or
deposit at a bank.

18. What is Bancassurance?
Ans: The selling of life assurance and other
insurance products and services by banking
institutions.
19. The objective of KYC guidelines is to prevent
banks from being used, intentionally or
unintentionally, by criminal elements for money
laundering or terrorist financing activities. What is
the full form of KYC?
Ans: Know Your Customer (KYC)

20. Know Your Customer (KYC) guidelines are
issued under:
Ans: Section 35A of the Banking Regulation Act,
1949

21. In BSBDA (Basic Savings Bank Deposit Account)
the credits in a financial year does not exceed
rupees:
Ans: Rs. 1 lakh

22. In BSBDA (Basic Savings Bank Deposit Account)
the balance at any point of time does not exceed
rupees:
Ans: Rs. 50,000

23. In BSBDA (Basic Savings Bank Deposit Account)
the withdrawals and transfers in a month does not
exceed rupees:
Ans: Rs. 10,000

24. At which rate RBI give loans to commercial
banks?
Ans: Repo rate

25. Full form of CASA:
Ans: Current Account Saving Account

26. In what denominations Commercial Paper (CP)
can be issued?
Ans: Rs. 5 lakh

27. What is the minimum denomination of Treasury
bills to issue in India?
Ans: Rs. 25,000

28. Who cannot issue Certificate of Deposit (CD)?
Ans: Regional Rural Banks (RRBs) and Local Area
Banks (LABs)

29. Expand ASBA:
Ans: Application Supported by Blocked Amount

30. Depositor Education and Awareness Fund
(DEAF) is maintained with:
Ans: RBI

31. Cash Reserve Ratio (CRR) is the amount of
funds that the banks have to keep with:
Ans: Central Bank (RBI)

32. What is the maximum amount per transaction
NEFT limit for cash-based remittances to Nepal?
Ans: Rs. 50,000

33. What does CAR stands for?
Ans: Capital Adequacy Ratio

34. IFSC code consists of _____ alpha numeric
code.
Ans: 11 digits
(The IFSC is an 11 digit alpha numeric code, with
the first four digits identifying the bank, fifth is
numeric (kept 0) and the last six digits represent
the bank branch.)

35. When money is lent or borrowed for one day or
on overnight basis it is known as:
Ans: Call Money

36. When money is lent or borrowed for between 2
days and 14 days it is known as:
Ans: Notice money

37. When money is lent or borrowed for a period of
more than 14 days, it is known as:
Ans: Term money

38. Treasury Bills and Certificate of Deposit are
considered as the ____instruments.
Ans: negotiable money market

39. Commercial Paper (CP) is an unsecured money
market instrument issued in the form of a _____.
Ans: Promissory note.

40. What is the upper limit in Public Provident Fund
(PPF)?
Ans: Rs. 1.5 lakhs

41. As per RBI guidelines, with effect from April
1, 2012, the validity period of Cheques, Demand
Drafts, Pay Orders and Banker's Cheques is _____.
Ans: 3 months

42. What is the time limit for an asset or loan to
be declared as Non-Performing Asset?
Ans: 90 days

43. Deposit Insurance and Credit Guarantee
Corporation (DICGC) does not cover:
Ans: Primary co-operative societies

44. RBI measure to liquidate the market:
Ans: Repo rate.

45. Full form of EFT:
Ans: Electronic Fund Transfer

46. Fastest mode of transaction:
Ans: RTGS

47. Alphanumeric code on cheque is known as:
Ans: Indian Financial System Code (IFSC)

48. Bank pays interest on savings account?
Ans: Daily Basis

49. What is the loan limit for education under
priority sector for studies abroad?
Ans: Rs. 20 lakh
(Loans to individuals for educational purposes
including vocational courses upto Rs.10 lakh for
studies in India and Rs. 20 lakh for studies abroad
are included under priority sector.)

50. RuPay Card is an Indian version of credit/
debit card is launched by which organization:
Ans: NPCI (National Payments Corporation of India)

51. Fixed Deposit (FD)Account may be opened for a
minimum period of:
Ans: 7 days

52. What is the minimum amount required to open
a Fixed Deposit (FD)?
Ans: Rs.1000

53. The Banks has converted all ‘no - frills'
accounts’ into:
Ans: Basic Savings Bank Deposit Accounts

54. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme
for:
Ans: Financial inclusion

55. How much overdraft facility to be provided in
'Pradhan Mantri Jan Dhan Yojana' scheme?
Ans: Rs. 5,000

56. In CBS, C stands for:
Ans: Core

57. In CRAR, A stands for:
Ans: Assets (Capital to Risk Weighted Assets Ratio)

58. IMPS - Immediate Payment Service is an
interbank electronic instant mobile money transfer
service through mobile phones in India, the facility
is provided by:
Ans: NPCI (National Payment Corporation of India)

59. The Central Bank of India has adopted new
measure of inflation:
Ans: Consumer Price Index (CPI)

60. When a cheque is torn into two or more pieces
and presented for payment, such a cheque is
called:
Ans: mutilated cheque

61. How much fee charged to file a complaint
under Banking Ombudsman? Ans: Banking
Ombudsman does not charge any fee

62. Who is the appellate authority in Banking
Ombusdsman?
Ans Deputy Governor of RBI 63. If any customer is
not satisfied by the decision of Banking
Ombudsman, customer can appeal against the
award before the appellate authority within how
many days from the date of receipt?
Ans 30 days

64. ATMs or Cash Dispensing machine which are
owned and operated by Non-Banking Financial
Companies are called:
Ans: White Label ATMs.

65. RBI gave in-principle for Banking license to:
Ans: IDFC and Bandhan

66. Minimum capital requirement for new banks in
private sector is:
Ans: Rs. 500 crore

67. A Non-Banking Financial Company (NBFC) is a
company registered under the:
Ans: Companies Act, 1956

68. Minimum capital requirement for Non-Banking
Financial Company (NBFC) is:
Ans: Rs. 500 crore

69. The NBFCs are allowed to accept/renew public
deposits for a minimum period of:
Ans: 12 months ( and maximum period of 60
months)

70. A NBFCs cannot offer interest rates higher
than the ceiling rate prescribed by RBI? What is
the present ceiling?
Ans: 12.5 per cent per annum

71. Minimum capital requirement for Foreign banks
that want to set up operations in India is:
Ans: Rs. 500 crore

72. What is the minimum paid-up capital
requirement of both small banks and payments
banks in India?
Ans: Rs. 100 crore