Page 9 - Banking Finance December 2017

RBI CORNER

RESERVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

No new notes in FY 18 Specialized service to se-
The Reserve Bank of India (RBI) has reduced its order for printing banknotes in nior citizens and differ-
the current fiscal year which is the lowest in last
five years for lack of space in the currency chests ently abled persons
of the central bank and commercial banks. The in- RBI asked banks to provide special-
dent (government jargon for order) for fiscal 2018 ized service to
now stands at 21 billion pieces of currency, as senior citizens
against 28 billion pieces in the previous year, the and differ-
two people said on condition of anonymity. ently-abled
persons
RBI makes Aadhaar linkage with bank accounts man- through dedicated counters and door-
step banking as against the backdrop
datory of banks pushing digital transactions
The RBI's statement on linkage of Aadhaar Card with bank accounts came as a through alternative channels, have
reply to a Right to Information (RTI) application to be implemented by December 31,
that suggested the apex bank has not issued 2017. The Banks have also been
any order for mandatory Aadhaar linkage with asked to upload into their core bank-
bank accounts. "The Reserve Bank clarifies that, ing systems 'Life Certificates' submit-
in applicable cases, linkage of Aadhaar number ted by pensioners in any branch and
to bank account is mandatory under the Pre- not just the pension-paying branch.
vention of Money-laundering (Maintenance of In a circular to all banks, the RBI said
Records) Second Amendment Rules, 2017 published in the Official Gazette on that it has received complaints from
June 1, 2017," the central bank said in a statement. this group of persons about being dis-
couraged from availing banking facili-
No Islamic Banking in India ties in branches. "Notwithstanding
In reply to an RTI query, RBI has decided not to pursue the proposal of Islamic the need to push digital transactions
Banking in the country. The decision was and use of ATMs, it is imperative to
taken after considering 'the wider and equal be sensitive to the requirements of
opportunities" available to all citizens to access senior citizens and differently abled
banking and financial services. Islamic or Sharia persons," the circular said. It, how-
banking is a finance system based on the principles ever, did not mention whether banks
of not charging interest, which is prohibited will be allowed to charge extra for
under Islam. the doorstep banking services.

BANKING FINANCE | DECEMBER | 2017 | 9

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