Permitted to Withdraw Cash Five Times in a Month Free of Charge from other Banks’ ATMs

Customers of a Bank Allowed to Withdraw Cash Five Times in a Month Free of Charge from other Banks’ ATMs

Indian Banks’ Association (IBA) has reported that banks have been permitted by Reserve Bank of India (RBI) to allow free cash withdrawal at their ATMs by customers from other banks upto five times in a month free of charge. Banks are generally complying with the guidelines issued by RBI in this regards from time to time.

No incident regarding non-conforming of RBI’s directions had come to the notice of the Government.

This information was provided by the Minister of State for Finance, Shri Namo Narain Meena in reply to an Unstarred Question in Lok Sabha today.

Source: PIB

Finance Minister Welcomes RBI’s Monetary Policy for 2010-11

Finance Minister Welcomes RBI’s Monetary Policy for 2010-11 Monetary Policy Measures Complement Finance Ministry’s Policies Aimed at Controlling Inflation and Promoting Sustainable Growth: FM

Finance Minister, Shri Pranab Mukherjee has welcomed the Monetary Policy 2010-11 announced today by the Reserve Bank of India. Finance Minister’s observations on Monetary Policy are as under:

“Earlier today the Governor of the Reserve Bank of India announced a set of new monetary policy measures. The well-balanced measures, which involve raising the repo rate, the reverse repo rate and the CRR by 25 basis points each, reflect a mature and balanced view of the needs of our economy and I fully endorse the measures. They complement well the policies of the Ministry of Finance aimed at controlling inflation and promoting sustainable growth. These policies should have a gentle impact in tightening money in the economy and should dampen further inflationary pressures.

The Reserve Bank of India has made a forecast of inflation of 5.5% for the year 2010-11. Long-run inflation is very difficult to predict and is based on some statistical analysis but also on intuition. My own belief based on analysis done in my ministry is that inflation is now on a downward trajectory and in 2010-11 will be less than 5.5% and, in fact, closer to 4% with an upward bias.

The small tightening of credit and other policy changes are in the right direction. It has to be recalled that these policy rates were lowered in the last two years in order to combat the fall-out of the global recession on the Indian economy. India has now bounced back, with growth seemingly back on track and inflation, though high, on a clear downward trend. Hence, I believe that it is time to move back towards "neutral" policy rates, that is, rates that should prevail when an economy is stable and on track. I view these changes as moves towards normal times.

Inflation is extremely sensitive to the weather condition and how that affects agriculture and agricultural expectations. If nothing untoward happens on the weather front, my belief is that overall inflation has peaked and should be on a downward trajectory from now on. Actually food price inflation has been going down for a while now. The reason why the overall WPI was at the same level in February and March is because there was a slight increase in non-food inflation. Usually when that happens it calls for economy-wide demand tightening and the RBI policy announcement may be viewed as a judicious move towards that.

Some observers may worry that tightening of credit can dampen growth especially in the durable goods sector. But our analysis of industrial growth and credit off-take suggests that there is no reason for such apprehension. In fact these policies will aid sustainable growth.

Let me add that the overall economic scenario in India now looks extremely robust and better than it has any time in the last two years. I congratulate the Governor of the RBI for his able stewardship of monetary policy. It has been very well synchronized with fiscal policy and has played a major role in India’s healthy recovery.”

Pre-97 RBI staffers may get less pension from next yr

For the 4,000-odd people who retired from the Reserve Bank of India (RBI) before 1997and are now in their 70s, the new year will not start on a happy note as they will see their pensions reduced from January.

This is because of a government order that RBI has no power to update pension of its employees. This has been a bone of contention between the government and the central bank for the past one year. In 2003, RBI increased the pension of those who retired before 1997 by an administrative circular. The revision was based on pay drawn in 10 months prior to the retirement on a notional basis.

However, in October last year, in an internal circular, the central bank said, “as advised by government of India,” the updated pension scheme is withdrawn with immediate effect.

Protesting the move, the pensioners moved the Bombay High Court, which said they could represent to the government, which could dispose of the representation by a speaking order. The court said if the government order went against the petitioners, RBI would not reduce the pension for eight weeks from the time the speaking order was communicated to the petitioners. The government order, which went against the pensioners, was issued and communicated in the last week of October.

The decision will result in a loss of Rs 1,000-5,600 a month for these former RBI staffers, who are mostly septuagenarians. RBI would have incurred an additional cost of merely Rs 10 crore on updation. The government order said RBI did not have the power to update its pension scheme.

“As per RBI Pension Regulations, 1990, pension is to be calculated on the basis of the average of last 10 months pay drawn and not on the basis of notional pay. Further, there is no provision in the RBI Pension Regulations, 1990, to update pension,” said the finance ministry, adding, “RBI employees have an edge over central government employees on entitlement of gratuity, pay structure, revision of salary. If each service is allowed cherry picking of the best of other services, it will lead to an anarchical situation.”

The finance ministry said RBI’s pay structure was not comparable with that of central government employees for the reason that pay scales of RBI employees were revised after every five years, while for central government employees, the revision happenned after 10 years.

“There are no perquisites for central government employees while RBI employees are entitled to a host of perquisites,” the order said. It added that those who retired from RBI were much better placed than those who had worked for public sector banks as the central bank’s salary structure was much better.

The law ministry, which was consulted by the government, said pension regulations could not be amended through an administrative order but added that the employees of RBI, a statutory body, could not be equated with other central government employees as their pension was governed by regulations under the RBI Act.

The Indian Banks’ Association (IBA), which was consulted, also opposed the hike in pension saying a similar demand could be made on public sector banks. “Updation of pension may involve approximately an amount of Rs 1,042 crore (annually) for public sector banks, excluding the State Bank of India,” the government order said, quoting the IBA.
Source:Business Standard

Need for Bank Branches / ATMs to be made accessible to persons with disabilities

RBI / 2008-09/441
RPCD.CO.RRB.BC.No.97/03.05.90-A/2008-09
April 21, 2009
All Regional Rural Banks

Dear Sir,
Need for Bank Branches / ATMs to be made accessible to persons with disabilities
We have been receiving several suggestions including from Government of India to make bank branches and ATMs easily accessible to persons with disability by providing ramps so that wheel chair users can access them and the height of the machine is also appropriate for them. Further we have also been receiving suggestions for installing speaking software and key pads with letters in Braille to facilitate use by persons with visual impairment.

2. We have examined the above suggestions and RRBs are advised to take necessary steps to provide all existing ATMs / future ATMs with ramps so that wheel chair users / persons with disabilities can easily access them and also make arrangements in such a way that the height of the ATM does not create an impediment in its use by a wheelchair user. Regional Rural Banks may also take appropriate steps including providing ramps at the entrance of the bank branches so that the persons with disabilities / wheel chair users can enter the bank branches and conduct business without much difficulty

3. Further, RRBs should make at least one third of new ATMs installed as talking ATMs with Braille keypads and place them strategically in consultation with other banks to ensure that at least one talking ATM with Braille keypad is generally available in each locality for catering to needs of visually impaired persons. RRBs may also bring the locations of such talking ATMs to the notice of their visually impaired customers.

Yours faithfully,

(B.P. Vijayendra)

Chief General Manager