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EPFO has now made it mandatory for firms to provide their employees' bank account numbers with IFSC code of bank branch to facilitate allotment of universal PF account number and payment to its subscribers. The Employees' Provident Fund Organisation headquarters has asked its over 120 field offices to seek the core banking account numbers with IFSC code of bank branch for seeding the same with the portable Universal PF Account Number (UAN). "...government issued direction ..to issue order making submission of Bank Accounts by the members mandatory in order to facilitate the allotment of UAN, proper implementation of the EPF Scheme, 1952 and removal of the difficulties in the matter of payment of accumulations in the Fund to members after they cease to be such members," an office order sai...

The RBI in its latest notification said that the bank accounts will not become inoperative if a dividend cheque has been credited in it in the previous two years. Since dividend on shares is credited to Savings Bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction. Normally, A bank account become inoperative or dormant if no credit or debit transaction has been conducted for a period of two years. This clarification has been issued in view of the doubts raised by some bankers whether an account in which only dividend has been credited can be treated as inoperative after two years.

The Reserve Bank of India has recenlty allowed that small accounts with banks can be opened even without officially valid documents. In a circular posted on its website, the banking regulator has said that a small account can be opened on the basis of a self-attested photograph and putting the prospective account holders' signature or thumb print in the presence of an official of the bank. However such accounts will have restricted transactions facilities. Aggregate credits will not be more than Rupees one lakh in a year. While aggregate withdrawals are not to exceed Rs 10000 in a month and balance in the accounts cannot be more than Rs 50,000 at any point in time. These small accounts would be valid normally for a year after which such accounts would be allowed to con...

Highlights of Indian Union Budget 2014-2015 - Announced on 10th July 2014 Personal taxation No change in income tax rates; personal income tax exemption limit raised from Rs 2 lakh to Rs 2.50 lakh Propose to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh Tax exemption on interest component on housing loan raised to Rs 2 lakh from Rs 1.5 lakh Tax exemption limit for senior citizens changed from Rs 2.5 lakh to Rs. 3 lakh Annual PPF ceiling to be enhanced to Rs 1.5 lakh, from Rs 1 lakh FM has taken away tax arbitrage through investment in other than equity oriented funds. While the interest on FDs etc. attract tax at say 34% , Gain on sale of Units ( beyond 12 months) attracted tax @ 10% ( + surcharge + cess). He has proposed to increase the tax rate to 20% and inc...

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...