Page 8 - Banking Finance December 2016

BANK UPDATE

No GPS chip in Rs 2000 CVC mandates banks to report loan defaults over Rs
note 1 crore
The Central Vigilance Commission has made it man-
datory for public sector banks to report to it all loan
defaults involving funds over Rs. 1 crore. Based on the
reports, the panel will recommend whether CBI
probes should be ordered.

Finance minister Arun Jaitley dis- Tax payers to explain for large cash deposits to IT Dept
pelled rumours of the Rs. 2,000 note Tax payers will have to explain large cash deposits made in their bank accounts
having a 'micro nano GPS chip' to and state whether their income-tax returns reflect these deposits, as per a new
enable its tracking through satellite. feature introduced on the tax filing website
"From where did you come to know www.incometaxindiaefiling.gov.in.
this? I haven't heard of it," Jaitley told Further, all bank accounts linked to an individual's
reporters a day after the permanent account (PAN) number have been col-
government's surprise more, when lated, indicating that the accounts are being moni-
asked it the Rs. 2,000 currency note, tored by the tax authorities. The new feature as-
being issued by the government, had sumes significance in light of demonetization of Rs 500 and Rs 1,000 notes.
a chip to enable its satellite tracking.
According to the rumours doing Rs 1000 and new lower denomination notes to launch
rounds on the social media, the cur-
rency note carries a chip that makes soon
it detectable when a pile is kept to- The government will introduce new Rs 1,000 currency notes in a few months
gether, and it can also be tracked via and also new series of lower denomination
satellite. bills with enhanced security features. "In a few
months, Rs. 1,000 notes with new features
Bank Mitras to help vil- will be brought into the market," said eco-
nomic affairs secretary Shaktikanta Das.
lagers for exchanging old
The currency notes of lower denomination of Rs. 100 and Rs. 50 will continue to
notes be the legal tender, he said, adding the Reserve Bank of India will come out
The Government will soon send 'Bank with new series of notes with new design and added security features.
Mitras', or
banking SBI cuts home loan rate to 6.15%, lowest in 6 years
correspon- State Bank of India (SBI) has slashed rowers will be for loans up to Rs 75
dents, to interest rate on home lakh. For woman borrow-
60,000 vil- loans by 15 basis points to ers, SBI has brought down
lages without post offices or banks to 9.15 per cent - a six-year the interest rate to 9.10
set up camps for residents to ex- low - to ramp up more per cent per annum from
change their old Rs. 500 and Rs. business in the segment. 9.25 per cent while for
1,000 notes. Private lender ICICI Bank others to 9.15 per cent
A limit of around Rs. 8,000 is likely to which reduced the MCLR from 9.30 per cent.
be fixed on each exchange, and resi- rate by 10 basis points to This means that on a home
dents of these villages will be given 8.95 per cent is also set to loan of Rs 50 lakh of 30
the address of a bank or a post office reduce the home loan years, a home buyer can
where they can get their money de- rates, officials said. save Rs 542 per month on
posited. SBI said the revised rates for new bor- EMIs.

8 | 2016 | DECEMBER | BANKING FINANCE

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