A look at recent rulings which can affect you.
BANKING: To mobilise non-resident deposits,
the Reserve Bank of India has decided to deregulate interest rates on non-resident (external) rupee (
NRE ) deposits and ordinary non-resident (NRO) accounts. The interest rates on term deposits under ordinary non-resident (NRO) accounts are already deregulated. The banks are now free to determine their interest rates on both savings deposits and term deposits of maturity of one year and above under both these schemes with immediate effect. However, the interest rates offered by banks should not be higher than those offered by them on comparable domestic rupee deposits.
Insurance: The Insurance Regulatory and Development Authority has introduced an Internet-based mobile application that enables users to compare insurance products, premium rates, benefits, etc, of unit-linked insurance policies introduced on or after 1 September 2010. The application has been developed with the objective of providing a mechanism for consumers to make informed decisions by comparing features of insurance products through mobile phones.
Capital Market: The Securities and Exchange Board of India has directed market intermediaries not to outsource core business activities and compliance functions. The direction comes in the wake of instances wherein intermediaries resorted to outsourcing, to reduce costs and at times, for strategic reasons. The move is an attempt to maintain unobstructed supervision of the business of the intermediary.
