The Reserve Bank of India (RBI) has imposed a penalty of Rs 50 lakh and Rs 25 lakh on ICICI Bank and Bank of Baroda, respectively, for opening fictitious accounts in the name of an organisation. The accounts were operated mainly for encashing cheques, demand drafts and postal orders for periods ranging from one month to two years without being detected by the banks. Three more banks--State Bank of India, State Bank of Patiala and Axis Bank--were also under the scanner for similar practice. However, after hearing their explanation, the RBI decided not to impose any penalty on them.
The Securities and Exchange Board of India (Sebi) has allowed non-demat transactions in mutual funds through the stock exchange platform. Earlier, only mutual funds in demat form were allowed to be bought and sold by distributors through exchanges.
All new individual health insurance policies with at least one year of tenure will now have a 15-day free-look period from the date of receipt. An individual can review the terms and conditions of the policy during the free-look period and return the policy if it doesn't suit his requirements.
The Employee Provident Fund Organisation has decided to act as registrar for UIDAI for helping EPF members get Aadhar numbers. Aadharseeded Universal Account Number will enable EPF members to get better internet-based services.