Recent rulings from banking, insurance, market sectors
Recent rulings from banking, insurance, market sectors
A look at recent rulings which can affect you.
Print Edition: 30 Nov, 2011
A look at recent rulings which can affect you
BANKING
The Reserve Bank of India has said that letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number can be used as a valid 'Know Your Customer' document for opening bank accounts without any restrictions. Earlier, UIDAI letter could be used only for opening of 'small accounts', which have a limit of Rs 50,000 along with certain restrictions on transactions.
CAPITAL MARKETS
The capital market regulator has introduced uniform norms (new forms and documents) for the purpose of customer identification by different market intermediaries such as stock exchanges and mutual funds, a step intended to bring uniformity to the process.
INSURANCE
Lapsed unit-linked insurance policies can now be revived within two years form the date of expiry. The insurance regulator requires insurers to provide a minimum return equivalent to the savings deposit of State Bank of India which is currently 4%. This is the return that the policyholder will receive after the insurer deducts its fund management charges.
The Securities and Exchange Board of India has approved initial public offering (IPO) guidelines for insurance companies. The regulator has removed the three-year profitability clause that is applicable for all companies as a precondition for raising funds from the capital markets. However, insurers will have to furnish additional disclosures as required by the insurance regulator.
