A look at recent rulings which can affect you
The Reserve Bank of India (RBI) has asked banks to do away with the 'no frills' label attached with the basic savings accounts. Banks would have to provide a zero-balance facility with these accounts along with ATM-cum-debit cards without any extra charge. While there will be no limit on the number of deposits, account holders will be allowed a maximum of four withdrawals in a month, including ATM withdrawals. Also, holders of these accounts will not be eligible for any other savings account in that bank. If a customer has any other existing account, it would have to be closed within 30 days of opening the basic account.
The markets regulator has decided to extend the Application Supported by Blocked Amount (Asba ) for public issues of debt securities. This will allow online applications for debt securities by marking the required amount in the applicants bank account as lien (security). It is also expected to reduce the time taken to complete the buying process. At present, this facility is allowed in case of initial public offer of shares.
The insurance regulator has relaxed the norms for joint sale advertisements by insurance companies with sales intermediaries. Now, there will be no need to take prior approval from the authority to bring out such advertisements. These would include all promotional activities where the logo or trademark names of the participating parties are displayed jointly. All such advertisements will have to be filed with the regulator along with a certificate by the appointed actuary.