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Current RBI Policy & Reserve Rates:
Repo Rate 8% (Unchanged)
Reverse Repo 7% (Unchanged)
CRR 4% (Unchanged)
SLR 22% (Unchanged)
MSF 9% (Unchanged)
Bank Rate 9% (Unchanged)
Note: As on 30, Sept, 2014, RBI (Reserve Bank of India) in its fourth bimonthly monetary policy statement kept the key policy
rate unchanged.
Banking In India:
 Reserve Bank of India (RBI) was established in 1935 and Nationalized in 1949.
 Sir Osborne Smith was the first Governor of the Reserve Bank of India
 CD Deshmukh was the first Indian Governor of RBI.
 The Reserve Bank of India was set up on the basis of the recommendations of the Hilton-Young Commission.
 Savings account system in India was started by Presidency Bank, in 1833.
 Cheque system was first introduced by Bengal Bank which was established in 1784.
 Allahabad Bank is the oldest existing public sector bank in India.
 Hongkong and Shanghai Banking Corporation (HSBC) introduced first time ATM in India in 1987, Mumbai.
 Bank of India is the first Indian Bank to open overseas branch. It established a branch in London in 1946.
 In 1955 Imperial Bank of India became State Bank of India.
 On July 19, 1969, 14 commercial banks were nationalised in India. These included the Central Bank of India, Bank of
India, Punjab National Bank, Bank of Baroda, United Commercial Bank, Canara Bank, Dena Bank, United Bank, Syndicate
Bank, Allahabad Bank, Indian Bank, Bank of Maharashtra, Indian Overseas Bank and Union Bank.
 In 1980 – 6 more commercial Banks nationalized. These include - Andhra Bank , Corporation Bank, New Bank of India ,
Oriental Bank of Commerce , Punjab & Sindh Bank and Vijaya Bank.
 Central Bank of India was the first public bank to introduce credit card.
 Central Bank of India is the first commercial bank which was managed by Indians.
 ICICI Bank was the first Indian Bank to provide internet banking facility.
 ICICI Bank was the first Bank to provide Mobile ATM.
 Bank of Baroda has the maximum number of overseas branches.
 SBI (State Bank of India) has the total number of maximum branches and holds 2nd position in the world.
 India's first "talking" Automated Teller Machine (ATM) launched by Union Bank of India (UBI) for visually impaired
was launched in Ahmedabad (Gujarat).
 RBI to issue Rs 10 plastic currency notes in 5 cities: Kochi, Mysore, Jaipur, Bhubhaneswar and Shimla.
This GK Capsule has been prepared by Career Power Institute Delhi (Formerly Known as Bank Power). This
document consists of all important news and events of last few months which can come in IBPS CLERK | | 2
Note: First plastic notes issued by Australia in 1988.
 RuPay is an Indian domestic card scheme conceived and launched by
the National Payments Corporation of India (NPCI). RuPay facilitates
electronic payment at all Indian banks and financial institutions, and
competes with MasterCard and Visa in India.
 India's first non-bank owned ATM (White Label ATMs) opens in
Maharashtra: Tata Communications Payments Solutions Ltd, a wholly
owned subsidiary of Tata Communications Ltd, opened first White
Label ATM at Chandrapada in Thane district, in Maharashtra.
Types of Bank Accounts in India (Deposit Accounts)
Traditionally banks in India have four types of deposit accounts, namely
Saving Banking Accounts, Current Accounts, Recurring Deposits and, Fixed
1. Saving Account - Saving accounts are opened to encourage the people to
save money and collect their savings. The saving account holder is allowed
to withdraw money from the account as and when required. The interest on
Saving Bank Accounts was fixed by RBI and it was fixed at 4.00% on daily
balance basis. RBI has deregulated Saving Fund account interest rates and
now banks are free to decide the same within certain conditions imposed
by RBI.
Features of Saving Accounts –
1. There is no restriction on the number and amount of deposits. However, in India, mandatory PAN (Permanent Account
Number) details are required to be furnished for doing cash transactions exceeding 50,000.
2. Withdrawals are allowed subject to certain restrictions.
3. A minimum amount has to be kept on saving account to keep it functioning.
2. Current Account - Current Accounts are basically meant for businessmen and are never used for the purpose of investment
or savings.
Features of Current Accounts –
(1) The main objective of Current Account holders in opening these account is to enable them (mostly businessmen) to
conduct their business transactions smoothly.
(2) There are no restrictions on the number of times deposit in cash / cheque can be made or the amount of such deposits;
(3) Usually banks do not pay any interest on such current accounts.
(4) The current accounts do not have any fixed maturity as these are on continuous basis accounts.
(5) Cheque book facility is provided and the account holder can deposit all types of the cheques and drafts in their name or
endorsed in their favour by third parties.
3. Recurring Desposit Account: Recurring Deposit is a special kind of Term Deposit offered by banks in India popularly
known as RD accounts which help people with regular incomes to deposit a fixed amount every month into their Recurring
Deposit account and earn interest at the rate applicable to Fixed Deposits.
Features of RD Accounts –
1. Recurring Deposit accounts are normally allowed for maturities ranging from 6 months to 120 months
2. These accounts can be opened in single or joint names. Nomination facility is also available.
3. Rate of Interest offered is similar to that in Fixed Deposits.
 4. Interest is compounded on quarterly basis in recurring | | 3
4. Fixed Deposit Account (FD) - The account which is opened for a particular fixed period
(time) by depositing particular amount (money) is known as Fixed (Term) Deposit
Account. The term 'fixed deposit' means that the deposit is fixed and is repayable only after
a specific period is over. Under fixed deposit account, money is deposited for a fixed period
say six months, one year, five years or even ten years. The money deposited in this account
can not be withdrawn before the expiry of period.
Features of FD Accounts –
1. The main purpose of fixed deposit account is to enable the individuals to earn a higher
rate of interest on their surplus funds (extra money).
2. The amount can be deposited only once. For further such deposits, separate accounts
need to be opened.
3. Fixed Deposit Account may be opened for a minimum period of 15 days and maximum
period of 10 years.
4. The minimum amount required to open a Fixed Deposit is Rs.1000.
5. Withdrawals are not allowed. However, in case of emergency, banks allow to close the
fixed account prior to maturity date. In such cases, the bank deducts 1% (deduction percentage many vary) from the interest
payable as on that date.
 About (BASIC SAVING BANK DEPOSIT ACCOUNT): Under the guidelines issued on August 10, 2012 by RBI: Any
individual, including poor or those from weaker section of the society, can open zero balance account in any bank. BSBDA
guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India".
ii. The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering
Financial Inclusion objectives.
 Main Points of BSBDA-Small Accounts:
i. In BSBDA, banks are required to provide free of charge minimum 4 withdrawals, through ATMs
ii. Total credits in such accounts should not exceed 1 lakh rupees in a year.
iii. Maximum balance in the account should not exceed 50,000 Rs at any time
iv. The total of debits by way of cash withdrawals and transfers will not exceed 10,000 rupees in a month
v. Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities
v. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person
provides proof of having applied for an Officially Valid Document.
 ATMs: (Automated Teller Machine): The ATM debit cards, credit cards and prepaid cards (that permit cash withdrawal)
issued by banks can be used at ATMs for various transactions.
 Use of ATMs of Other Banks:
i. 5 free transactions are permitted per month (inclusive of financial and/or non-financial) at other bank ATMs for
Savings Bank Account holders.
ii. For transaction beyond this minimum number of transactions, banks charge maximum of Rs 20/ - per transaction.
iii. Reserve Bank of India reduced free usage of other bank automated teller machines (ATMs) to 3 per month from 5
from November, in six metropolitan cities - Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad.
 Reconciliation of failed transactions at ATMs
i. The time limit for resolution of customer complaints by the issuing banks shall stand reduced from 12 working days
to 7 working days from the date of receipt of customer complaint.
ii. Accordingly, failure to recredit the customer’s account within 7 working days of receipt of the complaint shall entail
payment of compensation to the customer @ Rs. 100/- per day by the issuing bank..
iii. Any customer is entitled to receive such compensation for delay, only if a claim is lodged with the issuing bank

within 30 days of the date of the transaction.

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