24th Year of Publication

B anking
Registration RNI No.67802/98
Volume - XXIV No.06 : June 2021

Update
events

Contents of this Issue

• Prepaid Paid Payment Instruments
• Depositors' Edn & Awareness Fund
• KYC amendments
• Credit to MSME enterpreneurs
• Appointment of PSB Directors
• Appointment of Statutory Auditors
• Covid stress Resolution Framework-2.0
• Practical cases from Ombudsman

Multi-Option questions:8-9
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Executive Editor - S. Chand Singh Editor in Chief - Sh. N S Toor

2 ♦ Banking events updatE ♦ June 2021

RBI and Govt. Policy In circular dated 7.6.2018, RBI had

specified the rates of interest payable by
Prepaid Payment Instruments (PPIs) banks to the depositors on the unclaimed
On 19.05.21, RBI advised to follow, the following directions: interest bearing deposit amount transferred
(i) Mandating Interoperability; to the DEA Fund.
i. It shall be mandatory for PPI issuers to give the holders of On 11.5.21, RBI advised that rate of interest
full-KYC PPIs (KYC-compliant PPIs) interoperability through has been reviewed and it has been decided
authorised card networks (for PPIs in the form of cards) and that the rate of interest payable by banks
UPI (for PPIs in the form of electronic wallets); to the depositors/claimants on the
ii. Interoperability shall be mandatory on the acceptance side unclaimed interest bearing deposit amount
as well; transferred to the Fund shall be 3 per cent
iii. Interoperability shall be enabled by March 31, 2022; and simple interest per annum with effect from
11.5.21.
iv. PPIs for Mass Transit Systems (PPI-MTS) shall remain
exempted from interoperability while Gift PPI issuers have Accordingly, banks are to calculate the
the option to offer interoperability. interest payable on interest bearing deposits
transferred to RBI at the rate of 4 per cent
(ii) Increasing Limit to Rs.2 lakh for Full-KYC PPIs; and
p.a. up to June 30, 2018, 3.5 per cent w.e.f.
The maximum amount outstanding in respect of full-KYC PPIs
July 1, 2018 up to May 10, 2021 and at 3 per
(KYC-compliant PPIs) has been increased from Rs.1 lakh to
cent with effect from May 11, 2021 till the
Rs.2 lakh.
time of payment to the depositor/claimant.
(iii) Permitting Cash Withdrawal from Full-KYC PPIs of
Amendment to the Master Direction
Non-Bank PPI Issuers.
(MD) on KYC
The feature of cash withdrawal shall be permitted in respect
On 10.5.21, RBI decided to amend KYC
of full-KYC PPIs issued by non-bank PPI issuers as well.
direction related to rationalise the process
The following conditions shall, however, be applicable:
of periodic updation of KYC, as under:
i. Maximum limit of Rs.2,000 per transaction with an overall
Periodic updation of KYC: REs shall
limit of Rs.10,000 per month per PPI;
adopt a risk-based approach for periodic
ii. All cash withdrawal transactions performed using a card / updation of KYC.
wallet, shall be authenticated by an Additional Factor of
Periodic updation shall be carried out at least
Authentication (AFA) / PIN;
once in every two years for high risk
iii. Any PPI issuer offering this facility shall put in place proper customers, once in every eight years for
customer redressal mechanisms. Complaints in this regard medium risk customers and once in every
shall fall under the ambit of the respective ombudsmen ten years for low risk customers from the
schemes and instructions on limiting liability of customers; date of opening of the account / last KYC
and updation.
iv. PPI issuers shall put in place suitable cooling period for i. Individual Customers:
cash withdrawal upon opening the PPIs or loading / re-loading
a. No change in KYC information: A self-
of funds into PPIs to mitigate the risk of fraudulent use of
declaration from the customer shall be
PPIs.
obtained through customer’s email-id or
5. The cash withdrawal limit from Points of Sale (PoS) customer’s mobile number registered with
terminals using debit cards and open system prepaid cards the RE, ATMs, digital channels (such as
issued by banks in India advised vide circular dated 27.8.15, online banking / internet banking, mobile
has been rationalised to Rs.2,000 per transaction within an application of RE), letter etc.
overall monthly limit of Rs.10,000 across all locations (Tier
b. Change in address: A self-declaration of
1 to 6 centres).
the new address shall be obtained through
Depositor Education and Awareness Fund Scheme – customer’s email-id or customer’s mobile
ROI payable on unclaimed interest bearing deposit

(COMPILATION- SAPANDEEP TOOR & MANJOT TOOR, - on the basis of information available on RBI Website)

number registered with the RE, ATMs, digital channels,
letter etc., and the declared address shall be verified
through positive confirmation within two months, by
means such as address verification letter, contact point
verification, deliverables etc.
c. Further, REs, at their option, may obtain a copy of
OVD or deemed OVD or the equivalent e-documents
thereof, for the purpose of proof of address, declared by
the customer at the time of periodic updation.
d. Accounts of customers who were minor at the time of
opening account on their becoming major: Fresh
photographs shall be obtained. It shall be ensured that CDD
documents as per the current CDD standards are available
with the REs.
ii. Customers other than individuals:
a. No change in KYC information: A self-declaration
from LE customer through its email id registered with
the RE, ATMs, digital channels, letter from an official
authorized by the LE in this regard, board resolution etc.
b. Change in KYC information: In case of change in
KYC information, RE shall undertake the KYC process
equivalent to that applicable for on-boarding a new LE
customer.
iii. Additional measures: In addition to the above, REs
shall ensure that -
a. KYC documents as per the current CDD standards
are available. If validity of the CDD documents has
expired at the time of periodic updation of KYC, RE
shall undertake the KYC process equivalent to that
applicable for on-boarding a new customer.
b. Customer’s PAN details, if available with the RE, is
verified from the database of the issuing authority at the
time of periodic updation of KYC.
REs may consider making available the facility of periodic
updation of KYC at any branch.
Credit to MSME Entrepreneurs
As per circular extant directions, Scheduled Commercial
Banks were allowed by RBI to deduct the amount
equivalent to credit disbursed to new MSME borrowers
from their Net Demand and Time Liabilities (NDTL) for
calculation of the Cash Reserve Ratio (CRR). This
exemption was available up to Rs.25 lakh per borrower
for the credit disbursed up to the fortnight ending October
1, 2021. On 5.5.2021, RBI decided to extend this exemption
for such credits disbursed up to the fortnight ending
December 31, 2021.
• Phone: 0172-2665623, 09988221167
Banking events updatE ♦ June 2021 ♦ 3
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4 ♦ Banking events updatE ♦ June 2021

Corporate Governance - Appointment of

Directors and contitution of Board Committees N S Toor App
On 26.4.21, RBI decided to issue instructions with regard to the Chair
and meetings of the board, composition of certain committees of the Products
available
board, age, tenure and remuneration of directors, and appointment of the
whole-time directors (WTDs).
Applicability
The revised instructions would be applicable to all the Private Sector
Banks including Small Finance Banks (SFBs) and wholly owned
Video Lessons
PDF Text
subsidiaries of Foreign Banks. For SBI and Nationalised Banks, these
guidelines would apply to the extent, the stipulations are not inconsistent
with provisions of specific statutes applicable to these banks or instructions
issued under the statutes. The circular will not be applicable in the case Video lessons for-
of foreign banks operating as branches in India. The applicability to other · CAIIB - Advanced Bank
commercial banks viz., Local Area Banks, Payments Banks and Regional Management
Rural Banks will be notified separately by RBI.
· CAIIB- Bank Financial
Chair and meetings of the Board
Management
The Chair of the board shall be an independent director. In the absence
of the Chair of the board, the meetings of the board shall be chaired by · JAIIB - Principles and
an independent director. The quorum for the board meetings shall be Practice of Banking
one-third of the total strength of the board or three directors, whichever · JAIIB - Accounting &
is higher. At least half of the directors attending the meetings of the Finance for Bankers
board shall be independent directors.
Committees of the Board · JAIIB - Legal & Reg aspects
(a) Audit Committee of the Board (ACB) of Banking
The ACB shall be constituted with only non-executive directors (NEDs). · Bank Promotion Exam -
The Chair of the board shall not be a member of the ACB. The ACB General Banking
shall meet with a quorum of three members. At least two-thirds of the · Certified Credit
members attending the meeting of the ACB shall be independent directors.
Professionals
The ACB shall meet at least once in a quarter. The meetings of the ACB
shall be chaired by an independent director who shall not chair any other · Balance-sheet Analysis
committee of the Board. The Chair of the ACB shall not be a member of · Foreign Exchange
any committee of the board which has a mandate of sanctioning credit Operations
exposures. All members should have the ability to understand all financial
statements as well as the notes/ reports attached thereto and at least one Facility to watch the videos,
member shall have requisite professional expertise/ qualification in on-line and off-line available.
financial accounting or financial management [e.g., experience in You can download videos to
application of accounting standards and practices, including internal watch off-line, during validity
controls around it]. period of a course.
Risk Management Committee of the Board (RMCB)
To download the App go to
The board shall constitute an RMCB with a majority of NEDs. The RMCB
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shall meet with a quorum of three members. At least half of the members
download NS Toor App. After
attending the meeting of the RMCB shall be independent directors of
installation, go to Store
which at least one member shall have professional expertise/ qualification
Section to subscribe the
in risk management. Meetings of RMCB shall be chaired by an
course.
independent director who shall not be a Chair of the board or any other
I
committee of the board. The Chair of the board may
be a member of the RMCB only if he/she has the
requisite risk management expertise. The RMCB shall
meet at least once in each quarter.
Nomination and Remuneration Committee (NRC)
The board shall constitute an NRC made up of only
NEDs. The NRC shall meet with a quorum of three
members. At least half of the members attending the
meeting of the NRC shall be independent directors, of
which one shall be a member of the RMCB. The
meetings of the NRC shall be chaired by an independent
director. The Chair of the board shall not chair the
NRC. The meeting of NRC may be held as and when
required.
Age and tenure of NEDs
The upper age limit shall be 75 years. After 75 years
no person can continue in these positions.
The total tenure of an NED, on board of a bank, shall
be max 8 years. After completing 8 years, the person
may be considered for re-appointment after a min gap
of 3 years. This will not preclude him/her from being
appointed as a director in another bank.
Remuneration of NEDs: In addition to sitting fees
and expenses related to attending meetings, bank may
pay compensation to NEDs in the form of a fixed
remuneration commensurate with an director’s
responsibilities and demands on time and which are
considered sufficient to attract qualified competent
individuals. Such fixed remuneration for an NED, other
than Chair of board, shall max Rs.20 lakh p.a.
Tenure of MD&CEO and WTDs
Subject to the statutory approvals required from time
to time, the post of the MD&CEO or WTD cannot be
held by the same incumbent for more than 15 years.
Thereafter, the individual will be eligible for re-
appointment as MD&CEO or WTD in the same bank,
if considered necessary and desirable by the board,
after a minimum gap of three years, subject to meeting
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Banking events updatE ♦ June 2021 ♦ 5
other conditions. During this three-year cooling period,
the individual shall not be appointed or associated with
the bank or its group entities in any capacity, either
directly or indirectly.
RBI clarified that the extant instructions on upper age
limit for MD&CEO and WTDs in the private sector
banks would continue and no person can continue as
MD&CEO or WTD beyond the age of 70 years. Within
the overall limit of 70 years, as part of their internal
policy, individual bank’s Boards are free to prescribe a
lower retirement age for the WTDs, including the
MD&CEO.
MD&CEO or WTD who is also a promoter/ major
shareholder, cannot hold these posts for more than 12
years. However, in extraordinary circumstances, at the
sole discretion of the Reserve Bank such MD&CEO
or WTDs may be allowed to continue up to 15 years.
While examining the matter of re-appointment of such
MD&CEOs or WTDs within the 12/15 years period,
the level of progress and adherence to the milestones
for dilution of promoters’ shareholding in the bank shall
also be factored in by the Reserve Bank.
Transition Arrangement
Banks can comply with these instructions latest by
October 01, 2021.
Declaration of dividends by banks for FY 31.3.21
On 22.4.21, RBI reviewed the norms as below.
Commercial Banks : Banks may pay dividend on equity
shares from profits, subject to quantum of dividend
being max 50% of amount determined as per dividend
payout ratio prescribed circular dated 4.5.2005.
Cooperative Banks: To be permitted to pay dividend
from the profits as per the extant instructions.
General : All banks shall continue to meet applicable
minimum regulatory capital requirements after dividend
payment. While declaring dividend, Board to inter-alia
consider current and projected capital position of bank
vis-à-vis applicable capital requirements and adequacy
of provisions, taking into account the economic
environment and the outlook for profitability.
Practice Sets For Banking infor- For all types of
Mock Tests 20th mation in Hindi bank interviews
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6 ♦ Banking events updatE ♦ June 2021

Appointment of Statutory Central Professional Standards of SCAs/SAs:

Auditors in commercial banks Entities shall review the performance of
SCAs/SAs on an annual basis. Any serious
RBI issued the guidelines on 27.4.21 that supersede all previous lapses/negligence shall be reported to RBI
guidelines. Brief is provided. within two months from completion of the
Applicability: annual audit.
These guidelines are applicable to Commercial Banks (excluding Tenure and Rotation
RRBs), UCBs and NBFCs including HFCs (all called a. Entities will appoint the SCAs/SAs for a
Entities) for Financial Year 2021-22 and onwards. Non-deposit continuous period of three years.
taking NBFCs with asset size below Rs.1,000 crore can continue Commercial Banks (excluding RRBs) and
with their extant procedure. UCBs and NBFCs can adopt these UCBs can remove the audit firms during
guidelines from second half of FY 2021-22 at their discretion. the period with the prior approval of RBI
Prior Approval of RBI: Commercial Banks (excluding RRBs) b. An audit firm would not be eligible for
and UCBs will take prior approval of RBI for appointment/ reappointment in the same Entity for six
reappointment of SCAs/SAs, on an annual basis. NBFCs need years (two tenures) after completion of full
not have prior approval of RBI but they need to inform RBI or part of one term of the audit tenure.
within one month of such appointment. These firms can undertake statutory audit
Number of SCAs / SAs and Branch Coverage: For Entities of other Entities.
with asset size of Rs.15,000 crore and above (end of previous c. One audit firm can concurrently take up
year), statutory audit should be conducted under joint audit of a statutory audit of a maximum of four
minimum of two audit firms. All other Entities should appoint a Commercial Banks [including not more than
minimum of one audit firm. The joint auditors should not have one PSB or one All India Financial Institution
any common partners or under same network of audit firms. (NABARD, SIDBI, NHB, EXIM Bank) or
Entity may finalise work allocation, before commencement of RBI], eight UCBs and eight NBFCs during
statutory audit, in consultation with their SCAs/SAs. a particular year.
The Entities can decide on the number of SCAs/SAs based on Audit Fees and Expenses
factors such as the size and spread of assets, accounting and The audit fees for SCAs/SAs of all the
administrative units, complexity of transactions, level of Entities shall be reasonable and
computerization, availability of other independent audit inputs, commensurate with the scope and coverage
identified risks in financial reporting, etc. of audit, size and spread of assets,
Limit on no. of SCAs/SAs: accounting and administrative units,
1. Upto Rs.5,00,000 crore - 4 complexity of transactions, level of
2. Above Rs.5,00,000 crore and Upto Rs.10,00,000 cr - 6 computerization, identified risks in financial
3. Above Rs.10,00,000 cr and Upto Rs.20,00,000 cr - 8 reporting, etc.
4. Above Rs.20,00,000 crore - 12 Eligibility Criteria for Appointment as
In terms of extant RBI guidelines PSBs shall allot Top 20 branches SCA/SA
to SCAs to cover a minimum of 15% of total gross advances of Asset size - 1) > Rs.15000 cr 2):>1000 to 15000
the bank by SCAs. For other Entities SCAs/SAs shall visit and cr and 3) up to 1000 cr
audit at least Top 20 branches/Top 20% of the branches, to be 1) Min no. of full time partners (FTP)
selected in order of the level of outstanding advances, to cover a associated with the firm for a min period of 3
years : 5, 3, 2 respectively
minimum of 15% of total gross advances.
2) Out of total FTPs min. no. of fellow CA
Independence of Auditors: Concurrent auditors of the Entity
partners associated for min 3 years : 4, 2, 1.
should not be considered for appointment as SCAs/SAs of the
3) Min no. of FTPs / paid CA with CISA/ISA
same Entity. The time gap between any non-audit works by qualifications : 2. 1, 1, respectively
the SCAs/SAs for the Entities or any audit/non-audit works for 4) Min no. of years of audit experience of firm:
its group entities should be at least one year, before or after its 15, 8, 6 respectively
appointment as SCAs/SAs. 5) Min no. of professional staff : 18, 12, 6
 Banking events updatE ♦ June 2021 ♦ 7

Resolution of Covid-19 (Framework-2.0) related c. RP may also provide for conversion

stress of Individuals and Small Businesses of a portion of debt into equity or other
marketable, non-convertible debt
On 6.8.20, RBI provided a window to enable lenders to implement
securities issued by the borrower.
a resolution plan for eligible corporate exposures without change
in ownership, and personal loans, while classifying such exposures d. RP should be implemented within 90
as Standard. For individual borrowers and small businesses, the days from the date of invocation.
following set of measures has been announced by RBI on 5.5.2021. Asset classification and provisioning
A. Resolution of advances to individuals and small businesses a. If RP is implemented as per this
Lending institutions (LI) can offer a limited window to implement circular, Standard asset classification
resolution plans for credit exposures while classifying the same as may be retained. For borrowers’
Standard upon implementation of the resolution plan. accounts slipped into NPA between
invocation and implementation,
Eligible borrowers:
classification shall be Standard.
a. Individuals who have availed of personal loans excluding the
b. LIs shall keep provisions from date of
credit facilities provided by LIs to their own personnel/staff.
implementation, which are higher of the
b. Individuals who have availed of loans and advances for business
provisions held as per extant IRAC
purposes and to whom the lending institutions have aggregate
norms before implementation, or 10% of
exposure of not more than Rs.25 crore as on March 31, 2021.
renegotiated debt exposure of LI post
c. Small businesses, including those engaged in retail and wholesale implementation (residual debt).
trade, other than MSMEs as on March 31, 2021, and to whom LI
c. Half of these provisions may be
have total exposure of max Rs.25 crore as on March 31, 2021.
written back upon borrower paying min
Provided that borrower should not have availed of any resolution 20% of the residual debt without slipping
under Framework–1.0 and that credit facilities / investment exposure into NPA post implementation of the plan,
was classified as Standard as on March 31, 2021. and the remaining half may be written
Invocation of resolution process back upon borrower paying another 10%
a. LIs to have Board approved policies, for implementing viable of the residual debt without slipping into
resolution plans for eligible borrowers, ensuring that resolution is NPA subsequently.
provided only to borrowers having stress on account of Covid-19. B. WC support where resolution
b. The resolution process (RP) shall be treated as invoked when plans were implemented previously
LI and the borrower agree to proceed. Decision shall be a. For such borrowers LIs can, as a one-
communicated within 30 days of receipt of such applications. time measure, review working capital
c. The last date for invocation of resolution permitted under this limits or drawing power based on a
window is September 30, 2021. reassessment of WC cycle, reduction of
Permitted features of resolution plans and implementation margins, etc. without being treated as
a. RP may include rescheduling of payments, conversion of interest restructuring, by September 30, 2021.
into another credit facility, revisions in WC sanctions, granting of b. LI publishing quarterly financial
moratorium etc. excluding compromise settlements. statements shall, make disclosures in their
b. Moratorium period, may be up to 2 years. Overall cap on extension financial statements for Qtr ending Sept
of residual tenor, inclusive of moratorium period, shall be 2 years. 30, 2021 and Dec 31, 2021.
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08 ♦ Banking events updatE ♦ June 2021

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01 As per RBI directions dated 19.5.21, it is be mandatory for PPI FOR BANKERS
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 Banking events updatE ♦ June 2021 ♦9
b Public sector banks and private sector banks Regulatory Organisation’ of the sector and
c private sector banks and foreign banks which have a ‘gross loan portfolio’ of upto ___
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09 If an account is opened by a guardian for a minor on-lending to individuals.
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d any of the above Recalled Questions
10 Loan accounts of MSME borrowers can be 15 Incremental export credit over corresponding
allowed Covid-19 resolution facilities where date of the preceding year can be included in
amount of loan is Rs.____ as on 31.3.21 priority sector lending classification, where the
a Rs.10 cr b Rs.15 cr export credit to an individual borrower is up to
c Rs.20 cr d Rs.25 cr Rs.__ ?
11 Loan accounts of MSME borrowers can be a Rs.50 cr
allowed Covid-19 resolution facilities, where b Rs.40 cr
amount of loan is within prescribed amount as c Rs.25 cr
on 31.3.21 and the account is: d Rs.10 cr
a standard or sub-standard 16 What is the annual premium to be paid under
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12 In order to mitigate the adverse impact of 17 For which among the following documents,
COVID 19 related stress on banks, as a measure acceptance of the drawee of the instrument is
to enable capital conservation, RBI allowed required, to make him liable :
banks to utilise ___ per cent of floating a demand promissory note
provisions/ countercyclical provisioning buffer b usance promissory note
held by them as on Dec 31, 2020 for making
c demand bill of exchange
specific provisions for non-performing assets
d usance bill of exchange
with prior approval of their Boards. Such
utilisation is permitted with immediate effect and e all the above
upto March 31, 2022. 18 The free reserves in the balance sheet of a
a 100% b 85% bank, for the purpose of capital adequacy
ratio, form part of which of the following :
c 75% d 60%
a CET I b Tier II
13 Small finance banks (SFBS) can allow loans as
part of priority sector to registered NBFC-MFIs c ATI
and other MFIs (Societies, Trusts etc.) which d Risk weighted assets
are members of RBI recognised ‘Self- e Risk free assets
Disclaimer : We have taken every care to provide information, we
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kind nor shall be liable for losses & consequence arising from use thereof. ANSWERS
Since this information is based on the published reports mostly, correct- 01-C 02-B 03-D 04-C 05-C 06-A 07-C 08-B 09-B 10-D
ness or otherwise thereof may be verified by the user with the original
sources, in advance. ................................................Editor 11-D 12-A 13-C 14-A 15-B 16-D 17-D 18-A
10 ♦ Banking
Banking events ♦
events updatE updatE June
June ♦2021 ♦ 2021
10 Registration RNI No. 67802/98 Postal Regn No.CHD /0001/2015-17
Practical Problems based on Ombudsman Decisions DATA COLUMN
1)The complainant alleged that the bank had debited his savings account Business of Banks
towards payment of premium of 11 insurance policies without obtaining (Rs.in cr) 10.04.20 21.05.21
his consent or mandate. During the conciliation meeting, representatives Aggregate deposits
Cash in hand/RBI
13714927
486791
15166808
695042
of bank and insurance company stated that the complainant had given his Investments 3925665 4535495
Bank Credit: 10339299 10833589
consent over the welcome calls made by the insurance company. Further, -Food 54073 90663
a 15 days free look-in period was also offered within which policy could -Non-Food 10295226 10742926
be returned but the complainant did not raise a dispute. The customer Cash-Deposit Ratio
Investment-Deposit
5.27
28.14
3.83
30.23
reiterated that premia were deducted without his consent and also informed Credit-Deposit 72.95 71.74
Money Stock
that annual premium to be paid for all policies was much more than his (Rs.in cr) 31.03.20 21.05.21
annual income. The bank’s representative agreed to re-examine and later M3 (Out of which) 16799930 18933423
(a) Currency with public 2349715 2862466
confirmed that the premium debited from his account was returned. (b) Demand deposits-Banks 1737692 1819170
2) The complainant stated that he deposited a cheque. The proceeds were (c) Time Deposits - Banks 12674016 14203336
(d) Other deposits with RBI 38507 48451
not credited by bank to his account. Due to this other cheques issued by Sources of Money Supply
him were dis-honoured. On taking up with bank, he was informed that (a) Net Bank credit to Govt 4906583 5823113
(b) Bank credit to Comrcl sectr 11038644 11486691
his cheque was lost in transit. BO observed that bank had not adhered to (c) Net Forex assets of Banks 3798902 4628677
extant RBI instructions as it had not informed complainant of loss of Important Banking Indicators
cheque and non-credit of proceeds of the disputed cheque. As a result the Statutory Liquidity Ratio
Cash Reserve Ratio
18.00% (10.04.2020)
04.00% (27.05.2020)
other cheques issued were dis-honoured. Further, bank failed to take any Overnight LAF (of NDTL) 0.25%
proactive measure and matter was investigated after it was escalated to 14days term Repo(of NDTL) 0.75%
Reverse Repo Rate 03.35% (22.05.2020)
OBO. BO advised the bank to credit the complainant’s account with the Repo Rate 04.00% (22.05.2020)
MSF Rate 04.25% (22.05.2020)
amount of the disputed cheque along with compensation of Rs.20,000/- Bank Rate 04.25% (22.05.2020)
for loss of time, harassment and mental agony caused to the complainant. Small Savings Interest Rates
PPF 7.1% (01.04.2020)
3) The complainant after death of her husband claimed insurance amount 5-year NSC 6.8% (01.04.2020)
under PM Jeevan Jyoti Bima Yojana from bank and produced an undated Sukanya Smridhi 7.6% (01.04.2020)
Senior Citizen Saving 7.4% (01.04.2020)
acknowledgement receipt issued by bank to submit relevant application Capital & Money Market Indicators
form by her husband. The bank informed her that there was no policy in Parameter end-Apr20 end-May21
name of her husband and no premium had ever been deducted from his Dollar-spot TT (Rs.)
BSE - Sensex (points)
70.93
31863
72.97
52091
account. The bank was unable to find the application form for the undated NSE - Nifty(S&P CNX) 9313 15692
acknowledgement issued to the deceased. BO observed that there was Foreign reserves (Million $) 479568
Gold /Oz in USD) 1834
598165
1891
negligence on the part of the bank in issuing an undated acknowledgement
receipt and not being able to trace the related application. A conciliation INDIAN ECONOMY-IMPORTANT PARAMETERS
meeting was held wherein the bank accepted its negligence and agreed to Growth estimate for FY 2021-22 : 11-11.5%
reimburse insurance amount to the complainant along with a compensation GDP@constant mkt prices (cr) 2018-19 : 20442233
of Rs.5,000 for mental agony, loss of time and expenses incurred. GVA@2011-12 basic prices (cr) 2018-19 : 12906936

4) Complainant had opened a joint SB account with husband and opted GDP projected by Govt. for 2021-22 : 22287379
Fiscal Deficit Target (2021-22) 6.8% of GDP :1506812 cr
for insurance under PMJJBY. After demise of her husband, she claimed Revenue Deficit Target (2021-22) 5.1.% of GDP :1140576 cr
insurance amount. Bank rejected the claim stating that premium on policy Wholesale Price Index : 7.1%
could not be paid through auto-debit due to insufficient funds. Hence the Exports during 2019-20 (Goods+services) : 528.5 bn
policy had not been renewed. The complainant alleged that automatic Imports during 2019-20 (Goods+services) : 598.6 Bn
deduction of undue charges for non-maintenance of minimum balance India's share in world merchandise export : 1.70%
India's currency rating (S&P) : BB Postv
and inoperative account had resulted in insufficient balance. BO observed India's external debt (Jun 2020) US $ : 554.5 Bn
that bank’s contention that charges were recovered automatically without Tax-GDP ratio (2019-20) : 9.9%
manual intervention was not acceptable as wrong parameters were fed in Apr20- Feb21:Export $ 439.6 bn Imports : 447.4 bn
CBS resulting in erratic deduction of charges. As such, the insurance Per capita GDP 2019-20 (Rs.) : 108620
Indian economy's ranking in PPP terms : 3rd
policy could have been renewed. Had there been no wrong / excessive
Indian economy's ranking in world in value: 7th
charges debited to the account, complainant would have been entitled to
receive Rs.0.2 million towards claim. BO advised the bank to reimburse
OUR PUBLICATIONS : REFER PAGE 9,11
the entitled amount against the policy to the complainant.
• DATE OF DESPATCH - Jun 7/ 10, 2021

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