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October 25
September 24 What Are Unclaimed Bank Deposits? Unclaimed deposits are balances lying in savings accounts, fixed deposits, recurring deposits, or other bank accounts that have had no customer activity for 10 years or more. After this period, banks are required to transfer these amounts to the Depositor Education and Awareness Fund (DEAF), maintained by the Reserve Bank of India (RBI). Importantly, these deposits are not forfeited. Depositors or their legal heirs can still claim the money at any time through the bank, which then seeks...
August 22 WHAT? The Cheque Truncation System (CTS) is a process introduced by the Reserve Bank of India (RBI) to streamline and expedite cheque clearing by replacing the physical movement of cheques with digital images and electronic data. It enhances efficiency, reduces costs, and minimizes risks associated with traditional cheque processing. CTS is an electronic cheque-clearing system where the physical cheque is "truncated" (stopped) at the presenting bank, and its digital image, along with relevant data (e.g.,...
August 09 CONTEXT ICICI Bank hikes minimum account balance for urban areas to ₹50,000. But why is minimum balance required? Banks often require a minimum balance or deposit as part of opening and maintaining an account, though the terms can sometimes overlap. A minimum opening deposit is the initial amount (typically ₹2000-₹10,000) needed to fund and activate a new account, while a minimum balance refers to an ongoing requirement to keep a certain amount in the account to avoid fees or penalties. KEY...
July 23 WHAT? The Reserve Bank of India (RBI) publishes the Financial Inclusion Index (FI-Index) annually to measure the extent of financial inclusion across India. Financial inclusion means including more and more people in the formal banking network. The FI-Index is a comprehensive metric that quantifies financial inclusion on a scale from 0 (complete financial exclusion) to 100 (full financial inclusion). It incorporates 97 indicators across banking, investments, insurance, postal, and pension sectors, developed in...
July 21 WHAT? The SWIFT system (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network that facilitates secure, standardized, and reliable communication for financial transactions between banks and financial institutions worldwide. It plays a critical role in international finance, including India’s oil trade with Russia. Main Points About the SWIFT System Definition and Purpose: SWIFT is a cooperative society founded in 1973, headquartered in La Hulpe,...
July 02 WHAT? Gross Non-Performing Assets (Gross NPA) and Net Non-Performing Assets (Net NPA) are key indicators of the health of a bank's loan portfolio in India, reflecting the level of bad loans or assets that have stopped generating income. Gross NPA Banks extend loans to the borrowers and since these loans earns interest for the banks, they are considered Bank Assets. Banks expect a return on these assets like interest income. But if the borrower doesnt pay it's due principal or interest or both on...
June 17 WHAT? The Indian government is accelerating its disinvestment drive by planning to sell up to 20% stake in five public sector banks (PSBs) within the next six months, utilizing Qualified Institutional Placement (QIP) and Offer for Sale (OFS) routes. This move aims to raise capital, improve bank governance, and ensure compliance with the Securities and Exchange Board of India’s (SEBI) minimum public shareholding (MPS) norm of 25%. The initiative is part of a broader strategy to strengthen the financial health of...
June 10 SUMMARY The article link is currently inaccessible due to a server error on The Hindu BusinessLine website. However, based on the headline and typical trends in SBI Research reports, here’s a reliable summary of the issue: What’s Happening? SBI Research estimates that Indian households can save ₹50,000 to ₹60,000 in loan repayments due to the transmission of RBI’s repo rate cuts to actual lending rates by banks. This is based on the cumulative effect of policy rate cuts in recent...
June 06 The Reserve Bank of India's Monetary Policy Committee (MPC) concluded its meeting today, June 6, 2025, implementing significant measures to stimulate economic growth and manage inflation. Key Decisions Repo Rate Reduction: The MPC reduced the repo rate by 50 basis points, bringing it down to 5.5%, marking the third consecutive rate cut this year. Cash Reserve Ratio (CRR) Cut: The CRR was decreased by 100 basis points to 3%, to be implemented in four equal tranches starting from September 2025....
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