No RTGS Holiday on 28/12/2009

No RTGS Holiday on 28/12/2009

RTGS is functioning as normal on 28/12/2009-Moharram.

Only in the following States (Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, Jammu, West Bengal, )  on 28/12/2009 - is a Bank Holiday under Negotiable Instruments Act.

As RTGS is functioning, so will NEFT will also function, in the usual Settlement cycles i.e 9.00am, 11.00am, 12noon, 1.00pm, 3.00pm and 5.00pm.

Of course customers in the States of Karnataka, Maharashtra, Tamil Nadu, Andhra Pradesh, Jammu, West Bengal, can execute the transactions through the respective Bank’s Net Banking.

Mobile Banking Transactions in India - Operative Guidelines for Banks - Increase in upper Limits.

Mobile Banking Transactions in India - Operative Guidelines for Banks - Increase in upper Limits.

Cheers, Reserve Bank of India, has increased the threshold limits for Mobile Banking from Rs5,000/Rs10,000 to Rs.50,000/-.

This is the Christmas Gift to Indian Banks and Banking consumers, IT Companies from Reserve Bank of India. Now, it is up to the Banks, as to how they package and market this new product.

In my opinion, the upper levels have been increased in a span of 1 year, due to the following reasons: -

01) Demand by Banks.

02)                       Demand by Bank’s Customers.

03)                       Confidence in the Security Levels of Transactions

04)                       Confidence in the System regarding Anti-Money Laundering (AML)/Know Your Customer norms(KYC).

As usual, the Notification contains two superb punches.

01)  Transactions up to Rs 1000/- can be facilitated by banks without end-to-end encryption. The risks associated in this transactions, have to be handled by the Bank’s themselves, with appropriate Security Measures in place.

This should reduce the cost of transactions to Banks, and encourage them to aggressively market this product.

02)  The second punch is also a wonderful addition to the Product. The recipient  of Funds Transfer through Mobiles, can withdraw the funds through Cash at ATM or any agent(s) appointed by the bank as business correspondents.                                                              

Yes, you have read it correct!!! “The recipient  of Funds Transfer through Mobiles, can withdraw the funds through Cash at ATM or any agent(s) appointed by the bank as business correspondents.

These is a very progressive step, and now trust all the stake-holders will be interested to encourage this product.

Better read the complete Reserve Bank of India, Notification @

http://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5436&Mode=0

What is not clear to me is how the recipient will withdraw Cash through ATM/Business Correspondent.  What will be the modus-operandi involved.

Of course, some new ideas will emerge, no doubt.

KYC Norms/AML Standards/Combating Financing of Terrorism - Obligation of Payment System Operators

KYC Norms/AML Standards/Combating Financing of Terrorism - Obligation of Payment System Operators

 Reserve Bank of India, Department of  Payments and Settlement Systems, has issued a Notification stating that all the Payment System Operators have been brought under the purview of PML2A, 2002, in  terms of Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009.

The complete Notification i.e RBI/2009-10/269 DPSS.CO.AD.No./1320/02.27.005/2009-10, dt. December 22, 2009, can be accessed at

http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=5432&Mode=0

Basically the Payment System Operators   will have to submit 2 kinds of Reports. The Notification clearly states that the rules will also apply to all the agents and sub-agents of the Payment System Operators in India and it will be the sole responsibility of Payment System Operators, to ensure that their agents and sub-agents also adhere to these guidelines.

I personally feel that the above notification has been issued at an early stage, when a large number of entities are trying to become Payment System Operators in India.

This Notification will enable the prospective Payment System Operators, to reassess their business plans, and ensure an error-free rollout.

Indian Bank Holidays 2010 – Haryana  

Banking Holidays in India are to be declared under Negotiable Instrument Act, 1881.

Sec 25 of that Act speaks of that: 

QUOTE

25. When day of maturity is a holiday. When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. 17 Explanation.-The expression " public holiday " includes Sundays: 1** * and any other day declared by the 2[Central Government], by notification in the Official Gazette, to be a public holiday

UNQUOTE

This is precisely the reason why the declaration has to be made either by the Central or State Governments.

Normally, the respective State Governments declare Banking Holidays under Sec 25 of Negotiable Instrument Act, 1881.

This power is delegated to the State Governments by the Central Government.

I reproduce here below, Indian Bank Holidays for the Year 2010 – Haryana 

As declared by the Government of Haryana.

  

QUOTE

HR & Industrial Relations

No.CIR/HR&IR/H6/2009-10/2325

December 15, 2009

All Members of the Association

      (Designated Officers)

Dear Sirs,

Public Holidays for the Year 2010

 in the State of Haryana

We enclose a copy of the Government Notification containing the list of public holidays declared under the Negotiable Instruments Act, 1881 in the State of Haryana for the Year 2010.

We have to clarify that ‘public holiday’ declared by Central/State Governments/ Union Territory, includes ‘Sundays’ as indicated under the explanation to Section 25 of the Negotiable Instruments Act.

Branches of banks working on Sundays observe their weekly-off on any other day of the week as decided by the Bank and notified to members of staff and public.  Therefore, all Sundays will be working days for Sunday working branches, except those Sundays declared as holidays by the Central/ State Government/ Union Territory for a specified festival/occasion in a particular year, under the Negotiable Instruments Act.

Yours faithfully,

(K Ganesan)

Vice President

Encl.

c.c.to:  Associate Members

UNQUOTE

Indian Bank Holidays 2010 – Tripura

Indian Bank Holidays 2010 – Tripura   

Banking Holidays in India are to be declared under Negotiable Instrument Act, 1881.

Sec 25 of that Act speaks of that: 

QUOTE

25. When day of maturity is a holiday. When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be deemed to be due on the next preceding business day. 17 Explanation.-The expression " public holiday " includes Sundays: 1** * and any other day declared by the 2[Central Government], by notification in the Official Gazette, to be a public holiday

UNQUOTE

This is precisely the reason why the declaration has to be made either by the Central or State Governments.

Normally, the respective State Governments declare Banking Holidays under Sec 25 of Negotiable Instrument Act, 1881.

This power is delegated to the State Governments by the Central Government.

I reproduce here below, Indian Bank Holidays for the Year 2010 – Tripura

As declared by the Government of Tripura

QUOTE

 HR & Industrial Relations

No.CIR/HR&IR/H6/2009-10/2326

December 15 2009

All Members of the Association

      (Designated Officers)

Dear Sirs,

Public Holidays for the Year 2010

 in the State of Tripura

We enclose a copy of the Government Notification containing the list of public holidays declared under the Negotiable Instruments Act, 1881 in the State of Tripura for the Year 2010.

We have to clarify that ‘public holiday’ declared by Central/State Governments/ Union Territory, includes ‘Sundays’ as indicated under the explanation to Section 25 of the Negotiable Instruments Act.

Branches of banks working on Sundays observe their weekly-off on any other day of the week as decided by the Bank and notified to members of staff and public.  Therefore, all Sundays will be working days for Sunday working branches, except those Sundays declared as holidays by the Central/ State Government/ Union Territory for a specified festival/occasion in a particular year, under the Negotiable Instruments Act.

Yours faithfully,

(K Ganesan)

Vice President

Encl.

c.c.to:  Associate Members

UNQUOTE