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Internet Banking frauds have been rampant after Internet has become more popular for online transactions. In the recent past, Internet Banking frauds are on the rise. Here are some tips which you can adopt to make your internet banking secure.
Prevent Phishing Attacks
Phishing is a technique employed by criminals to get hold of your personal information. A phishing email will have the look and feel of an authentic email. It can take many forms. Here are some tips which will help you to identify phishing mails.
Email has become an inevitable part of our lives. At the same time, threats due to hacking attempts, phishing attacks, spam, identity theft etc are increasing day by day. Here are some important security tips that e-mail users should be aware of.
Forgot your Mobile Banking PIN?
Forgot your FedMobile Mobile Banking PIN ? No worries. You can reset the password online in simple steps without contacting your branch.Learn More
Protect your Mobile against Malware
Your Mobile device is like a computer and it should be protected the same way as you protect your computer. Learn more about tips to protect your mobile device from Malware attacks.Learn More
Soft PIN Facility at ATMs
Keeping up with the constant stream of changes in the digital space, Bank has introduced various tech products to improve level of satisfaction and positive experience to our customers. We have enabled Soft PIN facility for providing better convenience to our customers. Soft PIN replaces printed ‘PIN- Mailers' and this can be generated by the customers themselves through ATMs.
Soft Pin can be generated by the customers themselves through ATMs. No waiting time. No loss in transit. All customers who have registered their mobile number with Bank can use this facility.
To know more about Soft Pin Faciliy, please click here.Learn More
How to detect fake notes?
A suspected forged note, counterfeit note or fake note is any note which does not possess the characteristics of genuine Indian currency notes.
- By periodically improving the security features of Indian banknotes so that the counterfeiters find it difficult to copy.
- By ensuring that the banks have robust systems in place which will enable them to identify and detect forged notes immediately on their entry into the banking system.
- By raising public awareness on genuine Indian currency notes.
- By training of cash handlers on detection of forged notes.
- By improving co-ordination between the banks and law enforcement agencies.
NRE V/s NRO Accounts
|Features||Non Resident External(NRE) Accounts||Ordinary Non-Resident(NRO) Accounts|
NRE accounts can be opened by NRIs.
Joint account is permitted with another NRI.
Opening of NRE accounts jointly with residents is prohibited.
|NRO accounts can be opened by all non residents. Not only NRIs but any foreign national or entities (except of Pakistani/Bangladesh nationality/ownership) can open such accounts. Joint accounts with other non residents or residents permitted.|
|Types of Accounts||
All type of accounts like current, savings, fixed deposits and recurring deposits are permitted under the scheme.
|NRO accounts can be opened as Savings, Current, Recurring or Term deposit|
Withdrawals from NRE accounts are permitted for the following purpose.
Amount held in NRO account can be withdrawn for:
|Operation by Power of Attorney||
NRE accounts can be operated by resident attorneys for withdrawal for local payments and investment in shares and securities covered by the general or specific permission of Reserve Bank of India.
Power of Attorney holders are not permitted to open NRI accounts or repatriate outside India funds held in the accounts. They are also not authenticated to makes gifts from NRE accounts.
|Repatriability||Deposit made and interest accrued thereon can be repatriated outside India at any time.||
Balance under NRO accounts can be repatriated outside India for any bonafide purpose, subject to production of declaration by the account holder under section 195 of Indian Income tax Act, duly verified and certified by a Chartered Accountant in the prescribed format subject to a maximum of USD 1.00 million per calendar year. Interest accrued on NRO account net of tax deducted at source can be credited to NRE account or repatriated outside India as and when required.
|Taxability||Interest accrued on NRE accounts are exempt from Indian Income Tax Act as far as the NRI is resident outside India. No wealth tax is payable for the amount outstanding in NRE accounts.||
Normally, Income Tax @ 30.00% +3 % Education Cess ( total 30.90%) will be deducted at source by the Bank, on interest earned/paid in NRO accounts irrespective of the amount of Interest. The rates will be as per DTAA (Double Taxation Avoidance Agreement) agreed between India and various countries, in the case of depositors who are resident in those countries. Click here to see the list of countries and rates. This tax deducted at source can be claimed as refund by filing the return of Income as per Income Tax Act, provided the tax deducted is in excess of the tax due for the particular assessment year.
The TDS on interest earned on NRO deposit accounts shall be at 20% (for the current year the rate will be 20.60% including cess) only instead of 30% in the case of ONR accounts complying with the following conditions:
|Advance against Deposits||
Advance will be granted up to 90% of the deposit, with a maximum of Rs. 100L. Loan can be repaid by remittance from abroad, transfer from NRE/FCNR/NRO account of the borrower or liquidation of the deposit.
Advance to the extent of 90% of the deposit can be availed at a rate of interest of over 2% above the deposit rate plus interest tax.
What is KYC ?
Q 1. What is KYC? Why is it required?
KYC means "Know Your Customer". It is a process by which banks obtain information about the identity and address of the customers. This process helps to ensure that banks' services are not misused. The KYC procedure is to be completed by the banks while opening accounts and also periodically update the same.
Q 2. What are the KYC requirements for opening a bank account?
To open a bank account, one needs to submit a ‘proof of identity and proof of address' together with a recent photograph.
Q3. What are the documents to be given as ‘proof of identity' and ‘proof of address'?
The Government of India has notified six documents as ‘Officially Valid Documents (OVDs) for the purpose of producing proof of identity. These six documents are Passport, Driving Licence, Voters' Identity Card, PAN Card, Aadhaar Card issued by UIDAI and NREGA Card. You need to submit any one of these documents as proof of identity. If these documents also contain your address details, then it would be accepted as ‘proof of address'. If the document submitted by you for proof of identity does not contain address details, then you will have to submit another officially valid document which contains address details.
Q 4. If I do not have any of the documents listed above to show my ‘proof of identity', can I still open a bank account?
Yes. You can still open a bank account known as ‘Small Account' by submitting your recent photograph and putting your signature or thumb impression in the presence of the bank official.
Q 5. Is there any difference between such ‘small accounts' and other accounts
Yes. The ‘Small Accounts' have certain limitations such as:
· balance in such accounts at any point of time should not exceed Rs.50,000
· total credits in one year should not exceed Rs.1,00,000
· total withdrawal and transfers should not exceed Rs.10,000 in a month.
· Foreign remittances cannot be credited to such accounts.
Such accounts remain operational initially for a period of twelve months and thereafter, for a further period of twelve months, if the holder of such an account provides evidence to the bank of having applied for any of the officially valid documents within twelve months of the opening of such account.
Q 6. Would it be possible, if I do not have any of the officially valid documents, to have a bank account, which is not subjected to any limitations as in the case of ‘small accounts'?
A normal account can be opened for a low risk category customer by submitting a copy of any one of the following documents as ID proof:
(i) Identity card with person's photograph issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions;
(ii) Letter issued by a gazetted officer, with a duly attested photograph of the person.
Q 7. Are banks required to categorise their customers based on risk assessment?
Yes, banks are required to classify the customers into ‘low', ‘medium' and ‘high' categories depending on their AML risk assessment.
Q 8. Do banks inform customers about this risk categorisation?
Q 9. If I refuse to provide requested documents for KYC to my bank for opening an account, what may be the result?
If you do not provide the required documents for KYC, the bank may not be able to open your account.
Q 10. Can I open a bank account with only an Aadhaar card?
Yes, Aadhaar card is now accepted as a proof of both, identity and address.
Q 11. What is e-KYC? How does e-KYC work?
e-KYC refers to electronic KYC. e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC). The UIDAI then transfers your data comprising name, age, gender, and photograph of the individual, electronically to the bank/BC. Information thus provided through e-KYC process is permitted to be treated as an ‘Officially Valid Document' under PML Rules and is a valid process for KYC verification.
Q 12. Is introduction necessary while opening a bank account?
No, introduction is not required.
Q 13. If I am staying in Chennai but if my address proof shows my address of New Delhi, can I still open an account in Chennai?
Yes. You can open a bank account in Chennai even if your permanent address is in New Delhi and you do not have a proof of address for your Chennai. In that case, you can submit an officially valid document (proof of address document) of your New Delhi address together with a declaration about your Chennai address, for communication purposes.
Q 14. Can I transfer my existing bank account from one place to another? Do I need to undergo full KYC again?
Yes, it is possible to transfer an account from one branch to another branch of the same bank. There is no need for KYC exercise again to transfer a bank account from one branch to another branch of the same bank. However, if there is a change of address, then you would have to submit a declaration about the current address. If the address in the ‘officially valid documents'/ ‘proof of address' is neither permanent nor current address, a new proof of address would be required within six months. In case of opening an account in another bank, however, you would have to undergo KYC exercise afresh.
Q 15. Do I have to furnish KYC documents for each account I open in the bank even though I have furnished the documents of proof of identity and address?
No, if you have opened an account with a bank, which is KYC compliant, then for opening another account with the same bank, furnishing of documents is not necessary.
Q 16. For which banking transactions do I need to quote my PAN number?
PAN number needs to be quoted for transactions, such as, account opening, transactions above Rs.50,000 (whether in cash or non-cash), etc. A full list of transaction where PAN number needs to be quoted can be accessed from website of Income Tax Department
Q 17. Whether KYC is applicable for Credit/Debit/Smart/Gift cards?
Yes. Full KYC exercise is necessary for Credit/Debit/Smart/for purchaser of Gift Cards and also in respect of add-on/ supplementary cards.
Q 18. I do not have a bank account. But I need to make a remittance. Is KYC applicable to me?
Yes. KYC exercise needs to be done for all those who want to make domestic remittances of Rs. 50,000 and above and all foreign remittances.
Q 19. Can I purchase a Demand Draft/Payment Order/Travellers Cheque against cash without KYC?
Demand Draft/Payment Order/Travellers Cheques for Rs.50,000/- and above can be issued only by way of debiting the customer's account or against cheques.
Q 20. Do I need to submit KYC documents to the bank while purchasing third party products (like insurance or mutual fund products) from banks?
Yes, all customers who do not have accounts with the banks (known as walk-in customers) have to produce proof of identity and address while purchasing third party products from banks if the transaction is for Rs.50,000 and above. KYC exercise may not be necessary for bank's own customers for purchasing third party products. However, instructions to make payment by debit to customers' accounts or against cheques for remittance of funds/issue of travellers' cheques, sale of gold/silver/platinum and the requirement of quoting PAN number for transactions of Rs.50,000 and above would be applicable to purchase of third party products from banks by bank's customers as also to walk-in customers.
Q 21. My KYC was completed when I opened the account. Why does the bank insist on doing KYC again?
Banks are required to periodically update KYC records. This is a part of the ongoing due diligence on bank accounts. The periodicity of such updation would vary from account to account or categories of accounts depending on the bank's perception of risk (2/8/10 years). Periodical updation of records also helps prevent frauds in customer accounts.
Q 22. What are the rules regarding periodical updation of KYC?
Different periodicities have been prescribed for updation of KYC records depending on the risk perception of the bank. KYC is required to be done at least every two years for high risk customers, at least every eight years for medium risk customers and ten years for low risk customers. This exercise would involve all formalities normally taken at the time of opening the account.
If there is no change in status with respect to the identity (change in name, etc.) and/or address, such customers who are categorised as ‘low risk' by the banks may now submit a self-certification to that effect at the time of periodic updation.
In case of change of address of such ‘low risk' customers, they could merely forward a certified copy of the document (proof of address) by mail/post, etc. Physical presence of such low risk customer is not required at the time of periodic updation.
Customers who are minors have to submit fresh photograph on becoming major.
Q 23. What if I do not provide the KYC documents at the time of periodic updation?
If you do not provide your KYC documents at the time of periodic updation bank has the option to close your account. Before closing the account, the bank may, however, impose ‘partial freezing' (i.e. initially allowing all credits and disallowing all debits while giving an option to you to close the account and take your money back). Later even all credits also would not be allowed. The ‘partial freezing' however, would be exercised by the bank after giving you due notice.
Q 24. How is partial freezing imposed?
Partial freezing is imposed in the following ways:
· While imposing ‘partial freezing', banks have to give due notice of three months initially to the customers before exercising the option of ‘partial freezing'.
· After that a reminder for further period of three months would be issued.
· Thereafter, banks may impose ‘partial freezing' by allowing all credits and disallowing all debits with the freedom to close the accounts.
· If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing' banks may disallow all debits and credits from/to the accounts, rendering them inoperative.
· Thus, one year after the account is due for updation, if you do not provide the necessary documents/information, your account would become fully inoperative i.e, neither credits nor debits would be allowed in the account.
Meanwhile, the account holders can revive accounts by submitting the KYC documents.Learn More
DTAA Benefits for NRO Fixed Deposits
Double Taxation Avoidance Agreement (DTAA) is an agreement entered by India with various countries- (Click here for the list of DTAA countries) Under the current DTAA provisions, you can enjoy concessional rate of Tax Deducted at Source (TDS), providing a higher yield as compared to the regular NRO FD offered today.
Please note that as per recent amendment to Section 90(2) of the Income Tax Act 1961 (Act) non residents have to provide "Tax Residency Certificate (TRC)" containing prescribed details issued by government authority of respective country in which they reside to avail benefit of reduced tax under Double Taxation Avoidance Agreement (DTAA). CBDT has prescribed the contents of TRC vide notification no. 39 dated September 17, 2012. Accordingly, all nonresident customers who wish to avail benefit of DTAA rates for their interest earned on NRO Deposits for FY 2013-14 (from 01.04.2013) and onwards have to mandatorily provide the " Tax Residency Certificate (TRC) " containing prescribed details to the bank. Please note that DTAA benefits cannot be given if TRC is not submitted.
You may download the file containing set of contents of TRC which may be provided to your tax/government authority to obtain a TRC.
Disclaimer: Please note that contents of TRC are specified for your convenience so that you do not miss out any contents to be prescribed on the TRC. You should check in your country if there is any format of TRC issued or whether the format includes all the contents listed.
In case you have already submitted documents to avail of DTAA benefit or want to avail of DTAA for the current financial year 2013-2014, you are requested to submit a latest TRC and PAN copy to avail of DTAA for the financial year 2013-2014, failing which the bank will deduct TDS on your NRO accounts at 30.9% which cannot be refunded.Learn More
Why should you have Aadhaar card?
Aadhaar is a 12-digit unique identification (UID) number which the Unique Identification Authority of India (UIDAI) is issuing for all Indian residents.
The Unique Identification Authority of India (UIDAI) is an agency of the Government of India responsible for implementing the AADHAAR scheme, a unique identification project. It was established in February 2009, and will own and operate the Unique Identification Number database. The authority aims to provide a unique id number to all Indians, but not smart cards. The UID number is stored in a centralised database and linked to the basic demographics and biometric information – photograph, fingerprints and iris – of each individual. The authority will maintain a database of residents containing biometric and other data.
The Aadhaar card can be used to identify the individual in any part of the country, so even if a person travels, this card will be sufficient to establish or verify his identity. Also, there are various citizen benefits that can be availed with this card.
How can I get Aadhaar Card?
Residents of India need to visit the nearest Enrollment Camp and need to fulfill the formalities in order to register for an Aadhaar.
- Documents Verification.
- Biometric Scanning of Ten Fingerprints.
- Biometric Scanning of Iris.
The following documents are required while applying for aadhaar UID card.
Proof of name and photo identity: (any one from list below)
- Passport/PAN card/Ration/PDS photo card/Voter ID/Driving license/Government photo ID cards/
- NREGS job card/Photo ID issued by recognised educational institute etc.
Proof of address: (any one from list below):
- Passport/Bank Statement/Passbook/Post Office/Account Statement/Passbook/
- Ration Card/Voter ID /Driving License/Government Photo ID cards/Electricity Bill (not older than 3 months)/Water bill (not older than 3 months)/Telephone Landline Bill (not older than 3 months)/
- Property Tax Receipt (not older than 3 months)/Credit Card Statement (not older than 3 months)
- Insurance Policy etc.
It is advised that you should link your Aadhaar number with your bank accounts:
Benefits of linking Aadhaar number with bank accounts
- Direct credit of subsidies from government that include LPG, Kerosene, Sugar etc.
- Direct credit of welfare funds, pensions, scholarship, MNREGA wages etc from Government.
- Aadhaar is a valid Know your Customer (KYC) document to open bank accounts.
- Aadhaar enabled accounts ensure reduction in leakages of government spending
- The online, inter-operable architecture of Aadhaar Enabled Payment System (AEPS) allows a resident to access his account from anywhere in the country and in the near future through any delivery channel e.g. ATMs, microATMs etc.
If you are an existing customer all you have to do is to step in to your nearest branch with a copy and original of your Aadhaar card.
If you are a new customer you may please produce the copy and original of your Aadhaar card at the time of account opening.
Have queries about Aadhaar Card ?
If you have any queries about Aadhaar Card, please visit the website of Unique Identification Authority of India (UIDAI) - https://uidai.gov.in/Learn More