Arif Abdul’s Post

Withdrawal of ₹2000 Denomination Banknotes – Status The Reserve Bank of India (RBI) had announced the withdrawal of ₹2000 denomination banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. The status of withdrawal of ₹2000 banknotes is periodically published by the RBI. The last press release in this regard was published on August 01, 2024. 2. The facility for deposit and / or exchange of the ₹2000 banknotes was available at all bank branches in the country upto October 07, 2023. 3. The facility for exchange of the ₹2000 banknotes is available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices)1 since May 19, 2023. From October 09, 2023, RBI Issue Offices are also accepting ₹2000 banknotes from individuals / entities for deposit into their bank accounts. Further, members of the public are sending ₹2000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts. 4. The total value of ₹2000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2000 banknotes was announced, has declined to ₹7261 crore at the close of business on August 30, 2024. Thus, 97.96% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned. 5. The ₹2000 banknotes continue to be legal tender.

Remember last year the noise on the RBI Rs 2000 note withdrawal. All went smoothly. The question is where are the Rs 7961 crores of notes? All under mattresses, with NRIs abroad or notes that got lost in some accident ? Latest RBI Press Release...no one even looks at this number ...but another well managed exercise by the RBI. Quote: The Reserve Bank of India (RBI) had announced the withdrawal of ₹2000 denomination banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. The status of withdrawal of ₹2000 banknotes is periodically published by the RBI. The last press release in this regard was published on April 01, 2024. 2. The facility for deposit and / or exchange of the ₹2000 banknotes was available at all bank branches in the country upto October 07, 2023. 3. The facility for exchange of the ₹2000 banknotes is available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices)1 since May 19, 2023. From October 09, 2023, RBI Issue Offices are also accepting ₹2000 banknotes from individuals / entities for deposit into their bank accounts. Further, members of the public are sending ₹2000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts. 4. The total value of ₹2000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2000 banknotes was announced, has declined to ₹7961 crore at the close of business on April 30, 2024. Thus, 97.76% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned. 5. The ₹2000 banknotes continue to be legal tender. (Yogesh Dayal) Chief General Manager Press Release: 2024-2025/235 Unquote .

Rs. 35000 Crores of unclaimed FDs of Bank customers are transferred to RBI It's a surprising news for a layman that unclaimed amount of Rs. 35000 Crores belonging to PSU Banks has been transfered to RBI in Feb. 2023. For your information, these unclaimed deposits were in respect of deposits which have not been operated for 10 years or more, belonged to 10.24 crore accounts. Being Banker, I request all my friends, especially Sr. Citizens, to disclose their all deposits to their family members as n when they open their account with the Bank. I clarify one thing to all of you, *in case you avail any loan from the Bank, after your demise, Bank will locate your Legal heirs to repay the loan. But in case of Deposit ( FDR) Bank will never locate you and after your demise money will be sent to RBI.* And if it comes to the knowledge of your nominees or dependents, after transfer to RBI, it will be very difficult to get back this money from RBI. *So, it is in the interest of your family members that all your Deposits should be clearly disclosed in some Diary. Only then your money will be saved from transferring to RBI*. 🙏 https://lnkd.in/gFC8rWZM

Only about 87% of the depositors are entitled to receive the full amount of their deposits from DICGC after the cancellation of the licence of “The City Co-operative Bank Ltd., Mumbai, Maharashtra by RBI. The Reserve Bank of India (RBI), vide order dated June 19, 2024, has cancelled the licence of “The City Co-operative Bank Ltd., Mumbai, Maharashtra.” Consequently, the bank ceases to carry on banking business, with effect from the close of business on June 19, 2024. The Commissioner for Cooperation and Registrar of Cooperative Societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank. The Reserve Bank cancelled the licence of the bank as: 1. The bank does not have adequate capital and earning prospects. As such, it does not comply with the provisions of Section 11(1) and Section 22 (3) (d) read with Section 56 of the Banking Regulation Act, 1949. 2. The bank has failed to comply with the requirements of Sections 22(3) (a), 22(3) (b), 22(3)(c), 22(3) (d) and 22(3)(e) read with Section 56 of the Banking Regulation Act, 1949; 3. The continuance of the bank is prejudicial to the interests of its depositors; 4. The bank with its present financial position would be unable to pay its present depositors in full; and 5.Public interest would be adversely affected if the bank is allowed to carry on its banking business any further. On liquidation, every depositor would be entitled to receive deposit insurance claim amount of his/her deposits up to a monetary ceiling of ₹5,00,000/- (Rupees five lakh only) from Deposit Insurance and Credit Guarantee Corporation (DICGC) subject to the provisions of DICGC Act, 1961. As per the data submitted by the bank, about 87% of the depositors are entitled to receive full amount of their deposits from DICGC. As on June 14, 2024, DICGC has already paid ₹230.99 crore of the total insured deposits under the provisions of Section 18A of the DICGC Act, 1961 based on the willingness received from the concerned depositors of the bank.

It's a surprising news for a layman that unclaimed amount of Rs. 35000 Crores belonging to PSU Banks has been transfered to RBI in Feb. 2023. For your information, these unclaimed deposits were in respect of deposits which have not been operated for 10 years or more, belonged to 10.24 crore accounts. I request all my friends, especially Sr. Citizens, to disclose their all deposits to their family members as and when they open their account with the Bank. I clarify one thing to all of you, in case you avail any loan from the Bank, after your demise, Bank will locate your Legal heirs to repay the loan. But in the case of Deposit ( FDR) Bank will never try to locate your legal heir and after your demise money will be sent to RBI. If it comes to the knowledge of your dependents, after transfer to RBI, it will be very difficult to get back this money from RBI. So, it is in the interest of your family members that all your Deposits should be clearly disclosed in some Diary and a Nominee registered. Only then your money will be saved from being transferred to RBI https://lnkd.in/gwy_pzPN DO NOT FORGET TO NOMINATE

Reserve Bank of India has issued today a circular directing to all Banks, NBFC & other regulated entity to review their practices regarding mode of disbursal of loans, application of interest and other charges and take corrective action, including system level changes with immediate effect. RBI Circular has highlighted some of the unfair practices observed are briefly explained below: a)      Charging of interest from the date of sanction of loan or date of execution of loan agreement and not from the date of actual disbursement of the funds to the customer. Similarly, in the case of loans being disbursed by cheque, instances were observed where interest was charged from the date of the cheque whereas the cheque was handed over to the customer several days later. b)      In the case of disbursal or repayment of loans during the course of the month, some Bank/NBFC were charging interest for the entire month, rather than charging interest only for the period for which the loan was outstanding. c)     In some cases, it was observed that Bank/NBFC were collecting one or more instalments in advance but reckoning the full loan amount for charging interest. Further, RBI through circular advise that Non-standard practices of charging higher interest are not in consonance with the spirit of fairness and transparency. These are matters of serious concern to the Reserve Bank. Wherever such practices have come to light, RBI through its supervisory teams has advised Bank/NBFC to refund such excess interest and other charges to customers. Bank/NBFC are also being encouraged to use online account transfers in lieu of cheques being issued in a few cases for loan disbursal. RBI Directed to all Bank/NBFC to review their practices regarding mode of disbursal of loans, application of interest and other charges and take corrective action, including system level changes, as may be necessary, to address the issues highlighted above. The Copy of the Circular issued is attached herewith for information of all and it is applicable with immediate effect.

Bank deposits stood at Rs 211.9 lakh crore as of July 26, 2024, fortnightly data released by RBI showed. Banks have added deposits of Rs 7.2 lakh crore since March 2024, which is 3.5% more than what they added during the year-ago period. At the end of July 2024, bank credit stood at Rs 168.1 lakh crore, an increase of Rs 3.8 lakh crore from March-end. The incremental loans are 2.3% more than what banks advanced during the year-ago period. The pace of bank credit growth is slowing down, with incremental bank deposits outpacing growth in advances during the current financial year.

🌍The RBI issued guidelines on 20th November 2014 asking banks not to make the account balances negative solely on account of penal charges for non-maintenance of minimum balances in savings accounts. 🎯The RBI circular says instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit the services available on such accounts to those available to basic savings bank deposit accounts and restore regular services when the balance returns to the required level. 📢RBI's Guidelines for Banks ✅️a) It has to notify the customer by SMS, email, letter or other modes that if the minimum balance is not restored in the account within a month from the date of notice, penal charges will be applicable. ⬆️b) In case the minimum balance is not restored within a reasonable period, which shall not be less than one month from the date of the notice of such shortfall, penal charges can be levied. 💥c) The board of the bank has to approve the policy on penal charges. 📸d) The penal charges should be directly proportionate to the extent of the shortfall. In other words, the charges should be a fixed percentage of the difference between the actual balance maintained and the minimum balance required. The bank can decide a suitable slab structure for recovery of charges. 🧲e) The penal charges should be reasonable and around the average cost a bank incurs to provide services. ⛔️f) It should be ensured that the balance in a savings account does not turn into a negative balance just by levying charges for non-maintenance of minimum balance. 🎲For ex. the penalty charge is Rs 3,000 for not maintaining the minimum balance of Rs 2,000 per month in bank 'A'. Assume a customer does not maintain minimum balance in his/her saving account. Later on, the customer deposits Rs 10,000 into the account. The bank will first deduct Rs e,000 as penalty for not maintaining the minimum balance. The customer would be able to access only the balance Rs 7,000. LinkedIn

Cross Cheque: What Is The Meaning Of The 2 Lines In The Corner Of A Cheque? Nearly everyone banks, but not many people use cheques. Among them, many don't know about the different types of cheques. One such cheque is the Cross Cheque, where two lines are drawn on the top left corner. Early everyone banks, but not many people use cheques. Among them, many don't know about the different types of cheques. One such cheque is the Cross Cheque, where two lines are drawn on the top left corner. Do you know why these lines are drawn? Let's explore the details of cross cheques as per the Negotiable Instruments Act 1881. Nobody can withdraw cash from this As per Section 123 of the Negotiable Instruments Act 1881, the drawer signals to the bank with two lines on the left corner that it's a crossed cheque. With this type of cheque, you can't walk into any bank and withdraw cash. Payment is only made into the account Crossing a cheque ensures that payment will only be made into a bank account. It's either to the named payee or if endorsed, to someone else, requiring their signature at the back. General crossing There are many types of cross cheques. The first is general crossing, where two lines are drawn on the edge of the cheque. Everything discussed so far about cross cheques falls under general crossing.

Brief details: The present petition has been filed seeking to set aside the letter dated 1st August, 2023 issued by the Punjab and Sind Bank vide Email dated 2nd August, 2023, by which the One Time Settlement(“OTS”) Scheme entered between the parties, was recalled/withdrawn by the respondent-bank. What HC noted: The issue raised by the respondent-bank for withdrawing the OTS is that there was misrepresentation by the petitioner-company at the time of submission of its proposal for OTS. While company portrayed financial difficulties, it has paid PNB in full, without recourse to OTS. Three lenders of the Noida Project, i.e.,HDFC Limited, PNB and the respondent-bank. All three banks had sanctioned their respective loan under Multiple Banking Arrangement independently. Later consortium was formed with PNB as lead bank. HDFC Limited refrained from aligning its terms of sanction with other participating member banks, the petitioner-company repaid the full loan of HDFC Limited way back in July, 2018, which the respondent- bank was aware of. The banks directed the petitioner-company to make separate proposals to each of them, which would be considered by the banks on its own merit on the basis of the respective Recovery Management Policy. Petitioner-company made OTS proposals to both PNB, lead bank, as well as the respondent-bank. The PNB did not accept any OTS, whereas, the respondent-bank accepted the OTS proposal as per its existing Recovery Policy There was no stipulation in the SanctionLetter of either re-compensation or rejection of OTS, if PNB declines to entertain OTS offer. Considering the law laid down by the Supreme Court, it is clear that terms of sanction are alone final and binding on the parties. Any negotiations or discussions, prior to the sanction or subsequently consented to be added by one party, which is not reflected in the Sanction Letter, is not binding on the parties OTS offer, its acceptance and the Sanction Letter constitute a sufficient contract. Thus, the respondent-bank, which is a nationalized bank and an instrumentality of the State, cannot act arbitrarily in matters of contract. There is no stipulation in the Sanction Letter that the company was required to make full payment of dues as was done with PNB, the lead bank.Once the respondent-bank recovered its entire outstanding along with interest, the respondent-bank could not have withdrawn the OTS. Final order: This Court is of the view that the withdrawal of the OTS by the respondent-bank is arbitrary and unsustainable. Accordingly, the letter dated 1st August, 2023 issued by the respondent-bank withdrawing the OTS, is hereby set aside. My View The legal precedents quoted wrt OTS will be helpful to all dealing with Bank loans and OTS.