ET Wealth’s Post

Some banks revise fixed deposit interest rates in May 2024, offering rates up to 9.1% Full Article Link >>> https://lnkd.in/g5n6Ghmc Latest FD interest rates: In May 2024, several banks revised their fixed deposit (FD) interest rates, providing opportunities for investors to earn higher returns. The banks that revised their rates include Utkarsh Small Finance Bank (SFB), City Union Bank, RBL Bank, and Capital Small Finance Bank. As per an ET report, here’s all you need […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

Some banks revise fixed deposit interest rates in May 2024, offering rates up to 9.1% Full Article Link >>> https://lnkd.in/gTRhzdUW Latest FD interest rates: In May 2024, several banks revised their fixed deposit (FD) interest rates, providing opportunities for investors to earn higher returns. The banks that revised their rates include Utkarsh Small Finance Bank (SFB), City Union Bank, RBL Bank, and Capital Small Finance Bank. As per an ET report, here’s all you need […] . . Latest IND . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

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 .

Certainly! When it comes to tax-saving fixed deposits (FDs), it’s essential to compare interest rates offered by different banks. Here are the top 5 tax-saving bank FDs based on data compiled by ET Intelligence Group: DCB Bank: Offers an interest rate of 7.4% for a 5-year tax-saving FD. If you invest ₹10,000, it will grow to ₹14,428 Dhanlaxmi Bank: Provides an interest rate of 7.25%, resulting in a growth of ₹14,323 for the same investment amount. IndusInd Bank: Also offers an interest rate of 7.25%, with the same growth potential. YES Bank: Maintains an interest rate of 7.25%, leading to a similar growth of ₹14,323. City Union Bank: Provides an interest rate of 7.1%, resulting in a growth of ₹14,217. Remember that tax-saving FDs have a mandatory lock-in period of five years, and the interest earned is subject to tax deducted at source (TDS) based on your tax bracket. Senior citizens can claim an annual interest deduction of up to ₹50,000 under Section 80TTB. If you’re considering investing, keep an eye on interest rate trends, as they may change based on RBI decisions.

Badlaav humse hai! AU Small Finance Bank (AU SFB) has been heavily advertising its banking products. One of their features is paying MONTHLY interest instead of QUARTERLY interest on your savings account balance. Higher frequency of interest payouts means the account holder earns higher interest. >> A quick calculation shows that the interest cost for AU SFB increases by a mere 0.04% p.a. due to monthly interest payout compared with quarterly interest payout (assuming base interest rate to be 7% p.a.). >> This means that on a balance of Rs. 10,000, interest payout would be higher by Rs. 4/- p.a. >> And on AU SFB’s total savings account balance of ~Rs. 25,000 cr, the impact is Rs. 10 cr of higher interest payments p.a. (ignoring the impact of interest rate slabs). Interestingly, to market this feature and their other features, AU SFB spent ~Rs. 175 cr in FY23 on advertising and branding expenses. AU SFB’s promised “badlaav” (change) because of monthly interest payouts may not have significant monetary benefit for its account holders, but it does give them a sizable marketing clout. #smallfinancebank #marketing #savings #interestrate

𝐇𝐨𝐰 𝐭𝐡𝐞 𝐑𝐞𝐯𝐢𝐬𝐞𝐝 𝐑𝐁𝐈 𝐆𝐮𝐢𝐝𝐞𝐥𝐢𝐧𝐞𝐬 𝐀𝐫𝐞 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐂𝐫𝐞𝐝𝐢𝐭 𝐂𝐚𝐫𝐝 𝐏𝐚𝐲𝐦𝐞𝐧𝐭𝐬 🚀 Managing credit card payments has become more convenient with the revised Reserve Bank of India (RBI) guidelines! Cardholders can now adjust their billing cycles and due dates, offering greater flexibility and ensuring timely payments without the stress of rigid due dates. The revised RBI guidelines mandate credit card companies to allow customers to change their billing cycles "at least once." 𝐖𝐡𝐚𝐭 𝐝𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧 𝐟𝐨𝐫 𝐲𝐨𝐮? - 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐅𝐫𝐞𝐞𝐝𝐨𝐦: Align your credit card statement with your income cycle. No more scrambling at the end of the month – pay your balance comfortably after you get paid. - 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠: Spread out your expenses by choosing a due date that works for your budget. This can help you avoid tight spots and manage cash flow more effectively. - 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐢𝐳𝐞𝐝 𝐏𝐨𝐰𝐞𝐫: This is YOUR financial journey. Take control and tailor your credit card experience to fit your unique needs and preferences. - 𝐈𝐦𝐩𝐫𝐨𝐯𝐞 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐏𝐥𝐚𝐧𝐧𝐢𝐧𝐠: Match your due date with your paycheck. No more scrambling at the end of the month – pay your balance comfortably after you get paid. - 𝐆𝐫𝐚𝐜𝐞 𝐏𝐞𝐫𝐢𝐨𝐝 𝐏𝐨𝐰𝐞𝐫: By strategically making purchases closer to your billing date, you extend the time you have to pay them off before interest kicks in. This grace period typically lasts 20-50 days, depending on your card issuer. -  𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭-𝐅𝐫𝐞𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠: As long as you pay your entire balance by the due date (which falls after the grace period), you won't be charged any interest. This lets you enjoy interest-free financing on your purchases for a longer stretch. To modify your billing cycle or due date, simply access your bank's net banking platform or contact their customer care department. At Rupicard, we're dedicated to empowering you to take control of your finances and use credit responsibly. The revised RBI guidelines reflect a positive shift in the financial landscape, placing greater control in the hands of credit card holders.  #Rupicard #FDcreditcard #FinancialFlexibility #CreditCardPayments #RBI #FinancialEmpowerment Read the full update here:

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 March 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 ₹8202 crore at the close of business on March 29, 2024. Thus, 97.69% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned. 5. The ₹2000 banknotes continue to be legal tender.

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.

Prasanta Sahu Financial Express (India) looks at the rise in PMJDY accounts: *Net cash accretion in no-frills Pradhan Mantri Jan Dhan Yojana (PMJDY) bank accounts rose to an all-time high of Rs 36,153 crore in 2023-24, which also showed that average cash deposits per account at a high of Rs 4,524. *Despite reaching near saturation levels, as many as 33 million new PMJDY accounts were opened in FY24, taking the cumulative PMJDY accounts at 519.5 million. The total balance in these accounts stood at Rs 2,34,997 crore compared with Rs 1,98,844 crore a year ago. *According to the latest data, 353.7 million or 68% of the Jan Dhan account holders have debit cards. Given that inoperative accounts are nearly 20%, at least 12% of active account holders still don’t have RuPay cards. Of the nearly 500 million accounts with public sector banks and regional rural banks, only 340 million have RuPay debit cards. Read more details at the link: https://lnkd.in/g6bbKtcq

Bank Transaction: Your money kept in the bank account also comes under the purview of rules. Therefore, it is very important to know how much money can be withdrawn easily without getting into tax hassles. Bank Transaction: If you are confident of withdrawing the money lying in your bank account anytime, then wait a bit. You will have to plan the withdrawal carefully again so that you can avoid paying unnecessary tax. For this, you should know how much amount can be withdrawn in a year without paying tax. The rule of paying fee for withdrawing money more than the prescribed limit is not only applicable to ATM transactions but a similar rule is also applicable for withdrawing money from the bank. How much cash can be withdrawn People think that they can withdraw as much cash as they want from their bank account for free. But, under section 194N of the Income Tax Act, if a person withdraws more than Rs 20 lakh in a financial year, then he will have to pay TDS. However, this rule is only for those people who have not filed Income Tax Return (ITR) for 3 consecutive years. Such people will have to pay TDS if they withdraw more than Rs 20 lakh from any bank, cooperative or post office. Relief to those who file income tax returns However, those who file ITR get more relief under this rule. Such customers can withdraw up to Rs 1 crore in cash in a financial year from their bank, post office or co-operative bank account without paying TDS. How much TDS will have to be paid Under this rule, if you withdraw more than Rs 1 crore from your bank account, TDS will be deducted at the rate of 2 percent. If you have not filed ITR continuously for the last three years, then you will have to pay 2 percent TDS on cash withdrawal of more than Rs 20 lakh and 5 percent TDS on withdrawal of more than Rs 1 crore. There is already a charge on ATM transactions Banks charge a fee for withdrawing money more than the prescribed limit from ATM. RBI had increased the service charge on withdrawing cash from ATM from January 1, 2022. Now banks are charging Rs 21 for transactions exceeding the prescribed limit. Earlier one had to pay Rs 20 for this. Most banks provide five transactions free every month from their ATMs. Also, three transactions are free from ATMs of other banks. However, in metro cities, you can withdraw money free only three times from your own bank.