1. The RBI(Reserve Bank of India) has stepped up pressure on NBFC’s(Non-banking financial corporations) on the way they handle credit cards and has asked them to streamline and cap late payment charges and varying interest rates; advertise their charges on their websites; put in place a grievance redressal mechanism and provide proof if a complaint is lodged against improper billing.
2. The derugalation of interest rates could possibly make the interest rate on small savings basket of PPR, KVP and NSC market linked. Therefore, the returns on these instruments might no longer be fixed.
3. RBI has voiced concerns over teaser rates on loans and in its November policy review has asked banks to provision for more money for such products in case of defaults. While such a policy review might push lenders to stop such products (ICICI Bank and HDFC did withdraw teaser home loan scheme), not all of them seem to be obliging which has forced RBI to mull a regulator for such products.
4. SEBI has mandated that post 1st July 2010, all MF investors who apply in NFOs (New Fund Offers) can do so by the ASBA (Application Supported by Blocked Amount) facility which will be made available by the MF houses. This facility was already available to IPOs. ASBA is an alternative mode of payment where your money leaves your bank account only after you get the units or share that you applied for.
5. Central Bureau of Investigation sleuths uncovered a multi-crore corporate housing-loan racket on 24th November involving several public sector lenders including LIC Housing Finance and Bank of India. The CEO of LIC Housing Finance, Ramachandran Nair was arrested on charges of corruption and criminal conspiracy. The lenders overlooked regulatory guidelines while granting loan approvals to corporates.
6. The Reserve Bank of India (RBI) has directed banks not to honor cheques with overwriting effective 1st December. It also requested banks to create awareness among customers on this issue.
7. Starting 1st July 2010, banks moved to a system of “base rate” from the existing system of “benchmark prime lending rate (PLR)” that was effective since 2003.
8. Your savings account used to earn interest on the minimum balance in your account between the 10th and the 30th of each month. The interest was calculated once a month at the end of every month. Effective 1st April 2010 the interest will be calculated every day on the balance you have – this will lead to a bit more savings.
9. Limit on tax slabs were changed by the finance minister in the budget 2010-2011 leading to more tax savings for almost all taxpayers.
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