National Electronic Funds Transfer (NEFT)

Before the computerisation of banks, money was transferred from one account to another account in a different branch by way of Demand drafts,Mail Transfer and Telegraphic transfer.

Now all the banks are transferring money either by way of National Electronic Funds Transfer (NEFT) or by way of Real Time Gross Settlement system(RTGS). Banks have also provided these facilities directly to the customers through their |Internet Banking accounts thus enabling the customer to transfer the money to the customer of other banks.

In this post we will see how NEFT system functions in the banks:

Source: ABOUT NEFT SYSTEM

(A REQUEST: PLEASE GIVE YOUR COMMENTS IF THERE ARE ANY CHANGES/UPDATES ARE TO BE MADE IN THIS POSTING SO THAT I 
CAN CORRECT THE SAME)

Q.1. What is NEFT?

 National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme,  individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

Q.2. Are all bank branches in the country part of the NEFT funds transfer network?

 List of bank-wise branches which are participating in NEFT is provided in the website of Reserve Bank of India at http://www.rbi.org.in/scripts/neft.aspx

Q.3. Who can transfer funds using NEFT?

 Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of Rs.50,000/- per transaction.

Such customers have to furnish full details including complete address, telephone number, etc.NEFT, thus, facilitates originators or remitters to initiate funds transfer transactions even without having a bank account.

Q.4. Who can receive funds through the NEFT system?

 Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the NEFT system. It is, therefore, necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.

The NEFT system also facilitates one-waycross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme.

A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees. Further details on the Indo-Nepal Remittance Facility Scheme are available on the website of Reserve Bank of India at http://rbidocs.rbi.org.in/rdocs/content/pdfs/84489.pdf.

Q.5. Is there any limit on the amount that could be transferred using NEFT?

 No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances and remittances to Nepal.

Q.7. Whether the system is centre specific or has any geographical restriction?

No. There is no restriction of centres or of any geographical area within the country. The NEFT system takes advantage of the core banking system in banks. Accordingly, the settlement of funds between originating and receiving banks takes places centrally at Mumbai, whereas the branches participating in NEFT can be located anywhere across the length and breadth of the country.

Q.6. What are the operating hours of NEFT?

Presently, NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.

Q.7. How does the NEFT system operate?

Step-1 : An individual / firm / corporate intending to originate  transfer of funds through NEFT has to fill an application form providing details of the beneficiary (like name of the beneficiary, name of the bank branch where the beneficiary has an account, IFSC of the beneficiary bank branch, account type and account number) and the amount to be remitted. The application form will be available at the originating bank branch.

The remitter authorizes his/her bank branch to debit his account and remit the specified amount to the beneficiary. Customers enjoying net banking facility offered by their bankers can also initiate the funds transfer request online. Some banks offer the NEFT facility even through the ATMs. Walk-in customers will, however, have to give their contact details (complete address and telephone number, etc.) to the branch. This will help the branch to refund the money to the customer in case credit could not be afforded to the beneficiary’s bank account or the transaction is rejected / returned for any reason.

Step-2 : The originating bank branch prepares a message and sends the message to its pooling centre (also called the NEFT Service Centre).

Step-3 : The pooling centre forwards the message to the NEFT Clearing Centre (operated by National Clearing Cell, Reserve Bank of India, Mumbai) to be included for the next available batch.

Step-4 : The Clearing Centre sorts the funds transfer transactions destination bank-wise and prepares accounting entries to receive funds from the originating banks (debit) and give the funds to the destination banks(credit). Thereafter, bank-wise remittance messages are forwarded to the destination banks through their pooling centre (NEFT Service Centre).

Step-5 : The destination banks receive the inward remittance messages from the Clearing Centre and pass on the credit to the beneficiary customers’ accounts.

Q.8. What is IFSC?

 IFSC or Indian Financial System Code is an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is an 11 digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.

Q.9. How can the IFSC of a bank-branch be found?

 Bank-wise list of IFSCs is available with all the bank-branches participating in NEFT.List of bank-wise branches participating in NEFT and their IFSCs is available on the website of Reserve Bank of India athttp://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2009 . All the banks have also been advised to print the IFSC of the branch on cheques issued to their customers. For net banking customers many banks have enabled online search / pop-up of the IFSC of the destination bank branch.

Further, banks have also been advised to ensure that their branch staff provide necessary assistance to customers in filling out the required details, including IFSC details, in the NEFT application form, and also help in ensuring that there is no mismatch between the IFSC code and branch details of beneficiary branch as provided by the customer.

Q.10. What are the processing or service charges for NEFT transactions?

The structure of charges that can be levied on the customer for NEFT is given below:

a) Inward transactions at destination bank branches (for credit to beneficiary accounts)
– Free, no charges to be levied from beneficiaries

b) Outward transactions at originating bank branches – charges applicable for the remitter

-  For transactions up to Rs  10,000 : not exceeding Rs 2.50 (+ Service Tax)

- For transactions above Rs 10,000 up to Rs  1 lakh: not exceeding Rs 5 (+ Service Tax)

-  For transactions above Rs 1 lakh and up to Rs 2 lakhs: not exceeding Rs 15 (+ Service Tax)

-  For transactions above Rs 2 lakhs: not exceeding Rs 25 (+ Service Tax)

c) Charges applicable for transferring funds from India to Nepal using the NEFT system (under the Indo-Nepal Remittance Facility Scheme) is available on the website of RBI at http://rbi.org.in/scripts/FAQView.aspx?Id=67
With effect from 1st July 2011, originating banks are required to pay a nominal charge of 25 paise each per transaction to the clearing house as well as destination bank as service charge. However, these charges cannot be passed on to the customers by the banks.

Q.11. When can the beneficiary expect to get the credit to his bank account?

The beneficiary can expect to get credit for the first ten batches on week days (i.e., transactions from 8 am to 5 pm) and the first five batches on Saturdays (i.e., transactions from 8 am to 12 noon) on the same day. For transactions settled in the last two batches on week days (i.e., transactions settled in the 6 and 7 pm batches) and the last batch on Saturdays (i.e., transactions handled in the 1 pm batch) beneficiaries can expect to get credit either on the same day or on the next working day morning (depending on the type of facility enjoyed by the beneficiary with his bank).

Q.12. Who should be contacted in case of non-credit or delay in credit to the beneficiary account?

 In case of non-credit or delay in credit to the beneficiary account, the NEFT Customer Facilitation Centre (CFC) of the respective bank can be contacted (the remitter can contact his bank’s CFC; the beneficiary may contact the CFC of his bank). Details of NEFT Customer Facilitation Centres of banks are available on the websites of the respective banks. The details are also available on the website of Reserve Bank of India at http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=2070 .

If the issue is not resolved satisfactorily, the NEFT Help Desk (or Customer Facilitation Centre of Reserve Bank of India) at National Clearing Cell, Reserve Bank of India, Mumbai may be contacted through e-mail or by addressing correspondence to the General Manager, Reserve Bank of India, National Clearing Centre, First Floor, Free Press House, Nariman Point, Mumbai – 400 021.

Q.13. What will happen if credit is not afforded to the account of the beneficiary?

If it is not possible to afford credit to the account of the beneficiary for whatever reason, destination banks are required to return the transaction (to the originating branch) within two hours of completion of the batch in which the transaction was processed.

For example, if a customer submits a fund transfer request at 12.05 p.m. to a NEFT-enabled branch, the branch in turn forwards the message through its pooling centre to the NEFT Clearing Centre for processing in the immediately available batch which (say) is the 1.00 pm batch. If the destination bank is unable to afford the credit to the beneficiary for any reason, it has to return the transaction to the originating bank, not later than in the 3.00 pm batch. On receiving such a returned transaction, the originating bank has to credit the amount back to account of the originating customer. To conclude, for all uncredited transactions, customers can reasonably expect the funds to be received back by them in around 3 to 4 hours time.

Q.14. Can NEFT be used to transfer funds from / to NRE and NRO accounts?

NEFT can be used to transfer funds from or to NRE and NRO accounts in the country. This, however, is subject to the adherence of the provisions of the Foreign Exchange Management Act, 2000 (FEMA) and Wire Transfer Guidelines.

Q.15. Can remittances be sent abroad using NEFT?

No. However, a facility is available to send outward remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

Q.16. What are the other transactions that could be initiated using NEFT?

 Besides personal funds transfer, the NEFT system can also be used for a variety of transaction including payment of credit card dues to the card issuing banks. It is necessary to quote the IFSC of the beneficiary card issuing bank to initiate the bill payment transactions using NEFT.

Q.17. Can a transaction be originated to draw (receive) funds from another account?

No. NEFT is a credit-push system i.e., transactions can be originated only to transfer / remit funds to a beneficiary.

Q.18. Would the remitter receive an acknowledgement once the funds are transferred to the account of the beneficiary?

Yes. In case of successful credit to the beneficiary's account, the bank which had originated the transaction is expected to send a confirmation to the originating customer (through SMS or e-mail) advising of the credit as also mentioning the date and time of credit. For the purpose, remitters need to provide their mobile number / e-mail-id to the branch at the time of originating the transaction.

Q.19. Is there a way for the remitter to track a transaction in NEFT?

Yes, the remitter can track the NEFT transaction through the originating bank branch or its CFC using the unique transaction reference number provided at the time of initiating the funds transfer. It is possible for the originating bank branch to keep track and be aware of the status of the NEFT transaction at all times.

Q.20. What are the pre-requisites for originating a NEFT transaction?

 Following are the pre-requisites for putting through a funds transfer transaction using NEFT –

• Originating and destination bank branches should be part of the NEFT network
• Beneficiary details such as beneficiary name, account number and account type, name and IFSC of the beneficiary bank branch should be available with the remitter
• For net banking customers, some banks provide the facility to automatically pop-up the IFSC once name of the destination bank and branch is highlighted / chosen /   indicated / keyed in.

Q.21.  What are the benefits of using NEFT?

 NEFT offers many advantages over the other modes of funds transfer:

• The remitter need not send the physical cheque or Demand Draft to the beneficiary.
• The beneficiary need not visit his / her bank for depositing the paper instruments.
• The beneficiary need not be apprehensive of loss / theft of physical instruments or the likelihood of fraudulent encashment thereof.
• Cost effective.
• Credit confirmation of the remittances sent by SMS or email.
• Remitter can initiate the remittances from his home / place of work using the internet banking also.
• Near real time transfer of the funds to the beneficiary account in a secure manner.
  
  
  

Secrets of Long Married Life

 Karam and his wife Katari Chand

To have and to hold ... for 87 years! World's longest married couple share their secrets to living happily ever after Karam, 107, and Katari, 100, have been married for 87 years They have 8 children and 28 grandchildren together The marriage is almost 5 years longer than current Guinness record holders Couple say that laughter and looking after each other is key to marriage

The couple, who have eight children and twenty eight grandchildren together, have lived in wedded bliss for 87 years making them the world's longest married couple.

The pair say that the key to success is looking after each other in every way possible: ‘My trick is to make Katari laugh. I like to tell jokes and make her smile. Being funny is my way of being romantic.' says Karam.

Karam and Katari Chand have been married for 87 years and are in the process of being confirmed as Guinness World Record holders for the world's longest marriage

‘I have been told laughing makes you live longer... my wife is still alive so it must have worked! I love her so much and I want to spend another 80 years by her side,’ said Karam.

From romantic meals to sharing jokes, the couple, who hail from Punjab, India and now live in Bradford ensure that they do little things for each other to keep the romance alive.

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• A husband confesses: 'Seeing my wife give birth put me off sex for a YEAR!'
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• Accountant Jenny hoped internet dating would find her a man to share country walks with. Instead she was plastered across sleazy lads’ mag sites
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Katari told romantic networking site Zoosk.co.uk: ‘When I was young I used to make him a nice fresh meal every night. We are vegetarian so I brought lots of fresh vegetables and made sure he was eating healthy food.

‘Health is very important and I wanted to look after him so we could grow old together. Some would say it has worked!

The couple, who are both over 100, have eight children and twenty eight grandchildren together

‘Oh and how can I forget, I always save a bit of my chapatti for him. Just a little gesture that he appreciated a lot and it kept me a bit slimmer.’

Karam, who likes to do a word search every day to keep his mind alive, believes that spending plenty of time together has helped their marriage last.

‘We have not spent any long span apart in over 50 years. We go everywhere together – up until a few years ago we went to India every year with the family and for all family weddings we make sure we get to stay together,’ he said.

They maintain that the key to standing the test of time in marriage is looking after each other in every way possible

Their marriage has lasted nearly five years longer than that of the current Guinness World Record holders and the couple are in the process of getting confirmation from the company that they will be named as the new record holders.

Many modern day romances fail to stand the test of time but longevity and experience makes Karam the best man to go to for relationship advice.

‘In the past people used to listen. Now I don’t think people take the time to listen to each other properly. People seem too busy today with work, TV and other stuff going on around them.

‘Relationships are about understanding one another and listening to concerns and problems, so my advice to men and women is to listen to their partners, show interest in what they are saying and help them overcome any worries or problems they are going through,’ he said.

The couple love to make each other laugh and will have a joint birthday celebration in November

And their son Satpaul, who is extremely proud of his parent’s relationship, added his own words of wisdom.

He said: ‘One piece of advice that I can’t stress enough is to keep your parents very close. We live with them in Bradford and look after them because we want to help them live as long as they can together.

‘I don’t want to see their love story end. I truly believe that by helping them over the last few years we have enabled them to enjoy their time together with no stress and being looked after. 

'Also, you have to value them while they are here because you never know how long they are going to be around for.’

The still loved-up couple, who met through an arranged marriage, are having a big party in November to celebrate Karam’s 107th and Katari’s 100th birthday. The Mayor of Bradford as well as lots of community members will be joining in the party.
ities.

THEIR TOP FIVE TIPS TO KEEPING THE ROMANCE ALIVE

• Always be faithful: always be faithful to one another. When you get married you commit to devoting your life to that person and even when the times are tough, don’t believe that the grass is greener...because it isn’t.
• 
  
• Look after each other as best you can: if you want to grow old with your partner you have to make sure you always look after each other in every shape and form. Whether it is making a meal, holding your partners hand when crossing the road or being a shoulder to cry on when something goes wrong.
• 
  
• Be tolerant of each other: everyone has bad habits or annoying traits. Whether it is leaving a towel on the floor or listening to the radio too loudly, you have to tolerate each other and realise that no one is perfect. Of course we irritate each other occasionally, but if you want to last nearly 90 years, learn to love bad habits or it won’t work.
• 
  
• Listen to each other: the most important thing in a relationship is to listen. People don’t listen anymore because they are too busy with work and TV. Listen to your loved ones’ problems and concerns every day, because then you can help them overcome them and be happier. Also, it brings you closer together because you are the first port of call for each other when there is an issue in your life.
• 
  
• Follow social and religious values: always make sure you follow social or religious values. Respect, care, cherish, love and value your partner – always treat them how you would want to be treated yourself.

Strange & Interesting Facts Worldwide

There are many strange and interesting facts around the world. While some are known to us there are many unknown strange  facts. I am glad to share some of such facts in this post:

1. Sudan Has More Pyramids Than Egypt

Sudanese pyramids

Sudan has more pyramids than any other country on Earth - even more than Egypt. There are at least 223 pyramids in the Sudanese cities of Al Kurru, Nuri, Gebel Barkal and Meroë. They are generally 20 to 30 metres (65 -100 ft) high and steep sided.

2. Countries Driving on the Left

Red - drives on right; Blue - drives on left

Although people in the majority of countries of the world drive on the right side of roads, there are some fifty nations in which people drive on the left. These include England and many former English colonies such as Australia,New Zealand, India...etc... but not the U.S. or Canada. There are several non-English countries where people also drive on the left including Japan.

3. Country With More Horses Than People

Mongolian horses

The Mongolian horse is the native horse breed of Mongolia. The breed is purported to be largely unchanged since the time of Genghis Khan. Nomads living in the traditional Mongol fashion still hold more than 3 million animals, which outnumber the country's human population (2,75 million). Despite their small size, they are horses, not ponies.

4. The Most Linguistically Diverse Country

Port Moresby -  capital and largest city of Papua New Guinea

Papua New Guinea is the country that is home to the most languages, over 750 in all! The most commonly spoken languages in Papua New Guinea, however, are Motu and pidgin English.

5. Alaska Has a Sand Dunes?

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The Great Kobuk Sand Dunes lie 40 miles above the Arctic Circle, yet summer temperatures there can soar to 100 degress Fahrenheit! One of Alaska's true oddities, in some places, the sand stands 100 feet high. The three clusters of dunes within the park — the Great Kobuk, the Little Kobuk, and the Hunt River Sand Dunes — cover 25 square miles and constitute the largest active sand dunes within arctic latitudes. 

6. Strange Windmills in Ireland

Elphin Windmill, Ireland

All windmills in Ireland turn in a clockwise direction, while the rest of the windmills in the world turn counter-clockwise.

7. London Bridge Over Lake Havasu?

The original London Bridge was shipped stone-by-stone and reconstructed in Lake Havasu City. When the bridge, built in the 1830s began to sink into the Thames River in the 1960s, it was replaced by a more modern concrete bridge. Then, England put the stones up for sale in 1967. A  man named Robert P. McCulloch Sr., purchased the bridge on April 17, 1968, at a cost of $2,460,000.   The 10,246 blocks were shipped to Arizona and reassembled over a lagoon at the edge Lake Havasu at a cost of $3 Million. The Bridge opened in 1971.

8. The Most Isolated City in the World

Perth, Australia, is the most isolated city on the planet. 200 miles across impenetrable desert from the next city of any size.

9. Power of Amazon River

The Amazon River pushes so much water into the Atlantic Ocean that, more than one hundred miles at sea off the mouth of the river, one can dip fresh water out of the ocean.

10. The World’s Longest Train Journey

The Trans-Siberian Railway offers the world’s longest train journey. It takes about 7 days to travel the 5,580 miles or 9,000 km between Moscow and Vladivostok.

11. Deforestation

About 22% of the earth's original forest coverage remains. Western Europe has lost 98% or so of its primary forests; Asia 94%; Africa 92%; Oceania 78%;   North America 66%, and South America 54%.  Approximately 45% of the world's tropical forests, originally covering 1.4 billion hectares, have disappeared in the last few decades.

12. Shortest Intercontinental Commercial Flight

Shortest Intercontinental Commercial Flight in the world is from Gibraltar (Europe) toTangier (Africa.) Distance is 34 miles, flight time 20 minutes.

13. World's Widest Bridge

According to the Guinness World Records, Sydney Harbour Bridge is the world's widest long-span bridge - 16 lanes of car traffic - 8 lanes in the upper floor, 8 in the lower floor (double-decker bridge). The 49 metre (161ft) wide deck makes Sydney Harbour Bridge the widest long-span bridge in the world. It is also the fifth longest spanning-arch bridge in the world, and it is the tallest steel arch bridge, measuring 134 metres (440 ft) from top to water level.

14. World's Largest Palace Complex

Aerial view of the Forbidden City, Beijing

The Forbidden City was the Chinese imperial palace from the Ming Dynasty to the end of the Qing Dynasty. It is located in the middle of Beijing, China, and now houses the Palace Museum. For almost 500 years, it served as the home of emperors and their households, as well as the ceremonial and political center of Chinese government. Built in 1406 to 1420, the complex consists of 980 buildings with 8,707 bays of rooms and covers 720,000 m2 (7,800,000 sq ft). The palace complex exemplifies traditional Chinese palatial architecture and has influenced cultural and architectural developments in East Asia and elsewhere.

Ten Principles for Peace of Mind

Peace of mind is the most sought after 'commodity' in human life. It appears that most of us are in a state of perpetual restlessness.On analyzing the causes of this restlessness, Shri Gyan Rajhans* has ventured to find for myself ten solutions that need to be followed religiously if we are serious about achieving perfect peace of mind.

*GYAN RAJHANS

Gyan Rajhans is an internationally recognized health and safety professional. He has been broadcasting the only non-commercial Vedic religion radio program in North America since 1981 and a global web cast on bhajanawali.com since 1999.

Mr Rajhans is a widely published author on religious and spiritual topics, including a translation of the Bhagavad Gita in English for the younger generation. He has been conferred various honors and titles, including "Rishi" by the Hindu Prarthana Samaj of Toronto, and "Hindu Ratna" by the Hindu Federation of Canada.

1. Do Not Interfere In Others’ Business Unless Asked:

Most of us create our own problems by interfering too often in others’affairs. We do so because somehow we have convinced ourselves that our way is the best way, our logic is the perfect logic and those who do not conform to our thinking must be criticized and steered to the right direction, our direction. This thinking denies the existence of individuality and consequently the existence of God.

God has created each one of us in a unique way. No two human beings can think or act inexactly the same way. All men or women act the way they do because God within them prompts them that way. Mind your own business and you will keep your peace.

2. Forgive And Forget:

This the most powerful aid to peace of mind. We often develop ill feelings inside our heart for the person who insults us or harms us. We nurture grievances. This in turn results in loss of sleep, development of stomach ulcers, and high blood pressure. This insult or injury was done once, but nourishing of grievance goes on forever by constantly remembering it. Get over this bad habit. Life is too short to waste in such trifles. 

Forgive,Forget, and march on. Love flourishes in giving and forgiving.

3. Do Not Crave For Recognition:

This world is full of selfish people. They seldom praise anybody without selfish motives. They may praise you today because you are in power, but no sooner than you are powerless, they will forget your achievement and will start finding faults in you. Why do you wish to kill yours if in striving for their recognition? Their recognition is not worth the aggravation. Do your duties ethically and sincerely.

4. Do Not Be Jealous:

All have experienced how jealousy can disturb our peace of mind. You know that you work harder than your colleagues in the office, but sometimes they get promotions; you do not. You started a business several years ago, but you are not as successful as your neighbor whose business is only one year old. 

There are several examples like these in everyday life. Should you be jealous? No. Remember everybody’s life is shaped by his/her destiny, which has now become his/her reality. If you are destined to be rich, nothing in the world can stop you. If you are not so destined, no one can help you either. 

Nothing will be gained by blaming others for your misfortune. Jealousy will not get you anywhere;it will only take away your peace of mind.

5. Change Yourself According To The Environment:

If you try to change the environment single-handedly, the chances are you will fail. Instead, change yourself to suit your environment. As you do this, even the environment, which has been unfriendly to you, will mysteriously change and seem congenial and harmonious.

6. Endure What Cannot Be Cured:

This is the best way to turn a disadvantage into an advantage. Every day we face numerous inconveniences, ailments, irritations, and accidents that are beyond our control. If we cannot control them or change them,we must learn to put up with these things. We must learn to endure them cheerfully. 

Believe in yourself and you will gain in terms of patience,inner strength and will power.

7. Do Not Bite Off More Than You Can Chew:

This maxim needs to be remembered constantly. We often tend to take more responsibilities than we are capable of carrying out. This is done to satisfy our ego. Know your limitations. . Why take on additional loads that may create more worries? 

You cannot gain peace of mind by expanding your external activities. Reduce your material engagements and spend time in prayer, introspection and meditation. This will reduce those thoughts in your mind that make you restless. Uncluttered mind will produce greater peace of mind.

8. Meditate Regularly:

Meditation calms the mind and gets rid of disturbing thoughts. This is the highest state of peace of mind. Try and experience it yourself. If you meditate earnestly for half an hour everyday, your mind will tend to become peaceful during the remaining twenty-three and half-hours. Your mind will not be easily disturbed as it was before. 

You would benefit by gradually increasing the period of daily meditation. You may think that this will interfere with your daily work. On the contrary, this will increase your efficiency and you will be able to produce better results in less time.

9.Never Leave The Mind Vacant:

An empty mind is the devil’s workshop. All evil actions start in the vacant mind. Keep your mind occupied in something positive, something worthwhile. Actively follow a hobby. Do something that holds your interest. You must decide what you value more: money or peace of mind.Your hobby, like social work or religious work, may not always earn you more money, but you will have a sense of fulfillment and achievement.

Even when you are resting physically, occupy yourself in healthy reading or chanting of God’s name.

10. Do Not Procrastinate And Never Regret:

Do not waste time in protracted wondering ” Should I or shouldn’t I?”Days, weeks, months, and years may be wasted in that futile mental debating. You can never plan enough because you can never anticipate all future happenings. Value your time and do the things that need to be done. It does not matter if you fail the first time. You can learn from your mistakes and succeed the next time. Sitting back and worrying will lead to nothing. Learn from your mistakes, but do not brood over the past. DO NOT REGRET. 

Whatever happened was destined to happen   only that way. Why cry over split milk?

Source:http://hinduism.about.com/od/selfdevelopment/a/peaceofmind.htm

Recent Developments in Banking

In this post I have covered the details of various recent developments  related to banking. I hope that the same will be useful for the staff of banks who are appearing for the tests and interviews for their promotions:

1.Current Rates as on 2.11.2012:

a)Policy Rates:

i)Bank Rate:                  9%

(Bank Rate is the rate at which  RBI  allows finance to commercial banks. Bank Rate is a tool, which central bank  uses for short-term purposes. Any upward revision in Bank Rate by central bank is an indication that banks should also increase    deposit rates  as well as Base Rate/ Benchmark Prime Lending Rate(BPLR).  Thus any revision in the Bank rate indicates that it is likely that interest rates on your deposits are likely to either go up or go down,  and it can also indicate  an increase or decrease in your EMI.)

ii)Repo Rate:                  8%

( Repo Rate: Whenever the banks have any shortage of funds they can borrow it from RBI.  Repo rate is  the rate at which our banks borrow rupees from RBI. A reduction in  the repo rate will help banks to get money at a cheaper rate.  When the repo rate increases borrowing from RBI becomes more expensive.)

iii)Reverse Repo Rate:     7%

Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. Banks are always ready to lend money to RBI since their money are in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to this attractive interest rates. It can cause the money to be drawn out of the banking system. 

b)Reserve Ratios:

i)CRR                         4.50%

(CRR(Cash Reserve Ratio):Cash reserve Ratio (CRR) is the amount of Cash(liquid cash like gold) that    the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with Banks increased and they are able to lend more.)

ii)SLR                        23.00%

(CRR(Cash Reserve Ratio):Cash reserve Ratio (CRR) is the amount of Cash(liquid cash like gold) that    the banks have to keep with RBI. This Ratio is basically to secure solvency of the bank and to drain out the excessive money from the banks. If RBI decides to increase the percent of this, the available amount with the banks comes down and if RBI reduce the CRR then available amount with Banks increased and they are able to lend more.)

 ( Ref my post on  Monetary Tools used by RBI to control Inflation with the following link to know more details: http://svsaibaba.blogspot.in/2011/09/monetary-tools-used-by-rbi-to-control.html )

2.RBI clarifies on penalty clause for 'survivors'

The Reserve Bank of India has adivsed banks to make sure to incorporate the "either or survivor" or "former or survivor" clause in their account opening forms.

RBI had advised that in case joint depositors of term/fixed deposits with "Either or Survivor" or "Former or Survivor" mandate intend to allow premature withdrawal of their deposits by one of the joint depositors on the death of the other.

RBI also clarified that such premature withdrawal would not attract any penal charge on survivor.

The joint deposit holders may be permitted to give the mandate either at the time of placing fixed deposit or anytime subsequently during the term/tenure of the deposit. If such a mandate is obtained, banks can allow premature withdrawal of term/fixed deposits by the surviving depositor without seeking the concurrence of the legal heirs of the deceased joint deposit holder.

RBI has also asked banks to inform their existing along with future term deposit holders about the availability of such an option.

The Reserve Bank of India (RBI) has also advised regional rural and co-operative banks to modify Fixed Deposit account opening forms to allow premature withdrawal of FD on death of one of the joint account holders without any penalty. Under the modified norms, it will be easier for the surviving joint account holders to go for premature withdrawal of FD in the event of death of the other. 

As per the RBI notification, banks will have to incorporate a clause in the FD form to give option of premature withdrawal by survivor in case of death of the other joint account holder.

3. Deduction on Interest on Saving Account – 80TTA

Individuals and HUFs can now claim deduction on Interest on saving account from 1st April, 2013 u/s 80TTA. Section 80TTA has been newly inserted to provide deduction in respect of interest on deposits in Savings Accounts held with Banks, Post office and Cooperative Banks.

Eligible Assessee

Deduction on Interest on saving account will be allowed only to Individuals and HUF’s (Hindu Undivided Family).

Section 80TTA deduction shall not be allowed to any Partnership firm, Association of Persons, Company or a body of individuals.

Qualifying – Saving Account

Deduction in respect of Interest on saving account with any of the following will qualify:

    Bank or banking company;
    Co-operative Society engaged in carrying on the business of banking, including a co-operative land mortgage bank or co-operative land development bank,
    Post office Saving Account.

Other Relevant Points

Deposit in other scheme of Post office or time deposit or term deposit or fixed deposits will not be allowed.

Moreover, where the interest on saving account is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed in respect of such income in computing the total income of any partner of the firm or any member of the association or body.

Quantum of Deduction

Deduction shall be allowed upto Rs. 10000 in aggregate.

Availability

Deduction will be available to an assessee, being an individual and HUF’s from 1st April, 2013. In other words, deduction on Interest on saving account will apply from financial year 2012-2013 (Assessment year 2013-2014) and subsequent years.

4. ISSUE OF CHEQUES WITH UNIFORM FEATURES CONFORMING TO CHEQUE TRUNCATION SYSTEM (CTS)2010:

The Reserve Bank of India (RBI)  directed all banks to issue cheques with uniform features conforming to Cheque Truncation System (CTS) 2010 standard by the end of September 2012.

The homogeneity in security features act as deterrent against frauds, and the fixed field placement specifications facilitate straight-through-processing at drawee banks’ end through the use of optical or image character recognition technology, RBI said in a notification.

Adherence to CTS-2010 standards has inherent advantages as the security features in cheque forms help the presenting banks to identify the genuineness of the drawee banks’ instruments while handling them in the image based scenario, it said.

To ensure the time-bound migration to CTS-2010 standard cheque formats, all banks are advised to arrange only “multi-city or payable at par CTS-2010 standard cheques not later than September 30, 2012,” it said.

“Arrange to withdraw the non-CTS-2010 standard cheques in circulation before December 31, 2012 by creating awareness among customers through SMS alerts, letters, display boards in branches/ATMs, log-on message in internet banking, notification on the web-site etc,” it said.

The introduction of new cheque standards ‘CTS 2010’ was warranted on account of several developments in the cheque clearing namely growing use of multi-city and payable-at-par cheques at any branch of a bank, increasing popularity of speed clearing for local processing of outstation cheques and implementation of grid based CTS for image-based cheque processing etc., it said.

Will your Cheque Book be valid after 31^st December, 2012?

As per RBI guidelines, there have been certain changes made to the cheques issued by the Bank. However, these changes are available only in cheque books issued after August 2011. If you have obtained the cheque book prior to this, the cheques will not be valid after December 31, 2012.  

If the cheques you currently hold have the following features, they will be valid after the given date.

• "Please sign above" is mentioned on cheque leaf on the lower right  hand side.
• A wave like design is embossed on the left-hand side of Cheque leaf   

Below is the new sample cheque format from HDFC Bank  

Additionally, any post-dated cheques issued by you and due after December 31, 2012 will need to be replaced by the fresh cheques meeting the above mentioned guidelines. 

Please contact your bank branch for new cheque book.

5. DISABLING OF ATM CASH RETRACTION:

What is ‘Cash Retraction’?

‘Cash Retraction’ means if the cash notes are not collected from ATM
slot within specified time, cash notes are taken back by the ATM.

The banks have done away with the cash retraction system in ATMs. The systemwas withdrawn  after the Reserve Bank of India (RBI) agreed to National Payments Corporation of India's proposal for removing the feature from all ATMs to deal with the increasing number of fraudulent claims about non-receipt of cash. 

Banks have posted messages on their websites that the system has been disabled. The step has been taken to prevent the misuse of the system as RBI has received complaints about people trying to defraud banks by holding on to some withdrawn currency notes in ATMs and then claiming non-receipt of cash after the machine takes back the rest. 

Now, every time you visit an ATM for cash withdrawal; please remember the following:
Always collect all your cash notes while doing a cash withdrawal transaction  

 If all cash notes are not collected, cash will not be taken back by the ATM machine and will remain there till the time the cash is not collected

Count all your notes before leaving the ATM site

6. Post Offices to have ATM facility soon

On the occasion of World Post Day , the Department of Post announced a proposal to install ATMs at several post offices in the state. “The Banking Services are available but this will enable anywhere, anytime banking. It will give easy access to electronic clearing services and fund transfer. 519 Post offices have been identified for core Banking Services. 1403 Post offices have been covered under project arrow. Out of these,141 Post offices have been covered under look & feel.” said Shri A.K. Sharma, Chief Postmaster General of Maharashtra and Goa.

World Post Day marks the institution of the Universal Postal Union way back in 1847 in Bern in Switzerland. In India, the dept. has come a long way from the time it merely courier letters and parcels to multi –utility facilitator of products and services. Sharma added there were plans to network all the post offices through computers. “We are partnering with firms like TCS for training staff, Infosys for full service integration and Sify will handle our network integration.” he said.

(Source:http://egov.eletsonline.com/2012/10/post-offices-to-have-atm-facility-soon/)

7. RBI sets up committee for sustainable financial inclusion

RBI has constituted a high level Financial Inclusion Advisory Committee (FIAC) to spearhead the efforts towards greater financial inclusion. The collective expertise and experience of the members of the committee will explore issues such as developing viable and sustainable banking services delivery models focusing on accessible and affordable financial services, developing products and processes for rural as well as urban consumers presently outside the banking network and suggest appropriate regulatory framework to ensure that financial inclusion and financial stability move in tandem.

The Committee will be chaired by Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India and will comprise of members of board of directors of RBI, professors from eminent institutions, and senior level officials from UIDAI and banks. Executive Director in-charge of Rural Planning and Credit Department, Reserve Bank of India will be the convenor of the committee.

Ensuring accessible and affordable financial services in all 6 lakh villages in India is a herculean task and given the enormity of the task, a lot of ground still needs to be covered.  This calls for a partnership of all the stakeholders – RBI, other sectoral regulators like Securities and Exchange Board of India. While the regulators and the Government of India are already part of the financial inclusion project, a need was felt to engage the members from the civil society/Non-Governmental Organisations and others for a sound and purposeful collaboration.

The committee, if necessary, would call other market players like Corporate Business Correspondents, Technology Vendors etc., as special invitees to the meetings. Since the financial inclusion model selected in India is primarily bank-led, the committee may also invite the Chairperson/Managing Directors of banks to its meetings to gather the perspective of the banks.

(Source:http://egov.eletsonline.com/2012/10/rbi-sets-up-committee-for-sustainable-financial-inclusion/)