Author: wealth18.com

In view of the suggestions received from the stakeholders to give transitional period for complying with the deposit insurance requirements, the amendment in the relevant rule has been made allowing companies to accept deposits without deposit insurance for one year i.e. till 31.03.2015. Ministry of Corporate affairs Notification dated 6 June 2014. Background The Companies Act, 2013, which became effective from April 1, 2014, makes it mandatory for companies to buy insurance cover for fixed deposits, in the absence of which they will have to pay penalty. As of now not a single insurance company is offering the product.  General insurers say they are looking to offer cover that would insure corporate deposits and are in talks with the regulator (Insurance Regulatory and Development Authori...

RBI has now relaxed the Address proof requirements for opening Bank Account. Now, a bank account can be opened with just one address proof, permanent or local.  This will help migrant workers and employees with transferable jobs who at present face cumbersome procedure to access banking services. RBI said that only one documentary proof of address (either current or permanent) will be required while opening a bank account or while undergoing periodic updation. In cases where customer is not able to furnish local proof of address, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required to be submitted for such address for correspondence/local address. This address may be verified by bank through posi...