1. BANK OF BARODA BEATS SBI IN OFFERING CHEAPEST HOME LOAN: Traditionally as it always happens, it is the India’s largest Bank, State Bank of Indiawhich offers home loans at cheapest rates. But this time Bank of Baroda has lowered its home loan rate of interest to as low as 8.35% which is the cheapest in the banking industry. This rate will be applicable for customers having a strong CIBIL score, which is a measure of creditworthiness of the borrower. This according to us, will pave way for a literally interest rate war amongst the banks across the country.
2. VERY SOON YOUR CREDIT RATING WILL DETERMINE YOUR HOME LOAN RATE: The interest rate youwould pay on your home loan will soon be linked to your credit rating or the discipline you maintain in repaying your existing loans. If your credit score improves you will pay less EMI and is vice-versa. Bank of Baroda is the first bank to link interest rates on home loans to credit scores of the borrower. The bank will initially rely on credit scores of Credit Information Bureau of India (CIBIL) and if this score is above 760 then the lowest rate of 8.35% will be offered. Other banks will take cue from Bank of Baroda’s initiative.
3. LOAN REPAYMENTS WORTH Rs 80,000 CRORE MADE IN CASH AFTER DEMONETIZATION: The government’s financial intelligence agencies which normally analyse data from multiple sources, have found that an estimated that Rs 3 to 4 lakhs crore of tax-evaded income have found its way in the form of cash deposits during the demonetization period. The agencies have also compiled a data where in it is found that more than Rs 80,000 crore in cash deposits in loan accounts as repayments during this demonetization period.
4. YOUR CASH WITHDRAWALS FROM BANK ACCOUNTS MAY BE TAXED IN FUTURE: Among many moves which the government is taking to push the digital transactions in the country, the government may consider a “cash tax” on cash withdrawals from bank accounts. The government is weighing the pros and cons of the proposal underwhich tax can be levied on cash withdrawals above a certain ceiling from bank accounts. The main aim of the new tax is to curb the scope of cash economy and encourage digital transactions.
5. CURRENCY CIRCULATION DOWN BY ALMOST 50%:The currency circulation or the currency with the public has gone down to 8.9 lakh crore, according o the latest figures released by Reserve Bank of India. The Remonetisation exercise is not keeping pace with the Demonetization. The currency circulation in March 2016 was Rs 16.63 lakh crore.
6. BANK’S BOARD BUREAU SEEKS LONGER TERMS FOR BANK CHIEFS: Vinod Rai, the Chairman of Bank’s Board Bureau (BBB) opines that chief executive officer/ Managing Directors/Executive Directors of public sector banks should have a minimum tenure of six years in order to ensure accountability. Rai further noted that the compensation package of these public sector institutions needs to be improved. The package needs to be more attractive in order to attract talent.
7. NRIs CAN DEPOSIT OLD NOTES TILL JUNE 30th: The Reserve Bank of India has allowed non-resident Indians to exchange the scrapped currency of Rs 500 and Rs 1000 notes till June 30. This facility will be available through RBI offices in Mumbai, Delhi, Chennai Kolkata and Nagpur. While there is no monetary ceiling for exchange of old notes, the limit for NRIs’ will be as per the relevant FEMA (Foreign Exchange Management Act) regulations which is Rs 25000/- per person.