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Business Standard
29-05-2025
- Business
- Business Standard
Insured deposits rise 7% to ₹96.7 trillion as of Sept 2024: RBI report
Insured deposits in India rose by 7.11 per cent year-on-year (YoY) to ₹96.7 trillion as on 30 September 2024, up from ₹90.32 trillion in the year-ago period, according to the Reserve Bank of India's (RBI's) Annual Report. As of the same date, the number of fully insured deposit accounts under the coverage limit stood at 286.9 crore, compared to 281.8 crore a year earlier. These constituted 97.7 per cent of the total number of accounts, slightly down from 97.9 per cent in the previous year. The reserve ratio (i.e., Deposit Insurance Fund/Insured Deposits) stood at 2.21 per cent as on 30 September 2024, up from 2.02 per cent a year earlier. Currently, the coverage limit is 2.5 times the GDP per capita for FY25. The Deposit Insurance and Credit Guarantee Corporation (DICGC) levies a flat rate premium of 0.12 per cent per annum on the total assessable deposits of banks to provide deposit insurance. In FY25, the DICGC collected ₹26,764 crore as deposit insurance premium—12.1 per cent higher year-on-year. During the year, total claims settled amounted to ₹476 crore, all of which were for 43 urban co-operative banks (UCBs) that were either liquidated or placed under All-Inclusive Directions. The size of the Deposit Insurance Fund (DIF) stood at ₹2.29 trillion as on 31 March 2025, registering a 15.2 per cent YoY increase from ₹1.98 trillion a year earlier. Year Total Deposits Insured Deposits Deposit Insurance Fund FY21 134.88 68.71 1.1 FY22 149.67 76.21 1.3 FY23 165.5 81.1 1.47 As on Sept 30, 2023 181.14 83.89 1.7 As on Sept 30, 2024 204.19 90.32 1.99* 96.75 2.29*
Time of India
24-05-2025
- Business
- Time of India
FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks
Bank FD interest rate FD rate up to 9.1% FD rate up to 8.65% Bank Name Interest rate Suryoday Small Finance Bank 9.1% Unity Small Finance Bank 8.65% NorthEast Small Finance Bank 8.5% Utkarsh Small Finance Bank 8.25% Jana Small Finance Bank 8.2% Live Events FD rate up to 8.5% FD rate up to 8.25% FD rate up to 8.2% When is TDS deducted from bank FDs? There are still some banks who continue to offer up to 9.1% interest rate on fixed deposits (FD) made by senior citizens (age 60 years and above) for five year tenure and not exceeding Rs 3 below to know the list of banks offering FD interest rate up to 9.1%Suryoday Small Finance Bank is offering 9.1% interest rate on FD of five year Small Finance Bank is offering 8.65% interest rate on FD for five year as of May 21, 2025NorthEast Small Finance Bank is offering up to 8.5% interest rate on FD for five year Small Finance Bank is offering 8.25% interest rate on FD for five year Small Finance Bank is offering 8.2% interest rate on FD for five year While deposits in small finance banks are insured by the Deposit Insurance Credit Guarantee Corporation (DICGC) up to Rs 5 lakh, experts advise investors to exercise caution when investing in their FDs. Given their unique business model, the risk associated with investing in small finance bank FDs might differ slightly from that of scheduled commercial banks. To mitigate potential risks, it's recommended that investors limit their exposure to small finance bank FDs to an amount that falls within the DICGC coverage. This ensures that their principal and interest are protected in unforeseen is required to be deducted by banks if the interest amount in an FD is above Rs 1 lakh in a particular bank. Do note that TDS is not any additional tax, you can get this tax back as a refund or adjust it with your total tax liability at the time of income tax return filing (ITR). Moreover, if you are eligible for a tax refund then you might be eligible for interest on tax instance, if a senior citizen's income is Rs 11 lakh then, it's not subject to income tax due to Section 87A tax rebate under the new tax regime for FY 2025-26. Section 87A tax rebate is available for up to Rs 12 lakh income level under the new tax the fact that no income tax is levied on such an income level (below Rs 12 lakh), banks and other financial institutions will still deduct TDS. This is because the law mandated them to deduct TDS once the interest/income amount crossed a particular threshold which was Rs 1 lakh for senior citizens. This happens because banks are not aware about tax liability and deduct TDS whenever the annual interest amount crosses Rs 1 lakh. So, can such a senior citizen file form 15H to avoid TDS on fixed deposits in such situations.
Hindustan Times
20-05-2025
- Business
- Hindustan Times
HCBL Cooperative Bank mgmt to appeal after RBI cancels licence
The Lucknow-based HCBL Cooperative Bank Limited management has decided to appeal to the union finance secretary, following the Reserve Bank of India's (RBI) decision on Monday to cancel the bank's certificate of registration (CoR). The RBI cited inadequate capital and poor earning prospects as reasons for the cancellation. On RBI's direction, the Commissioner and Registrar of Cooperative Societies, Uttar Pradesh, has initiated the process to wind up the bank and appoint a liquidator. The liquidator will take control of the bank's management, including its assets and liabilities, and will use the proceeds from asset sales to repay creditors according to their priority, Heera Lal, Commissioner and Registrar, Cooperative Societies UP, said. HCBL Cooperative Bank, launched in 2002, expanded its services across nearby districts including Unnao, Barabanki, Rae Bareli, and Sitapur. The bank operated four branches and one extension counter in Lucknow, providing telebanking, SMS banking, personalised banking, and general services to approximately 10,000 customers, a bank officer who does not wished to be named said. The bank's head office in Gomti Nagar was notably quiet on Tuesday. A few customers visited to inquire about the bank's operations after the RBI order, while bank officials held meetings to assess the situation. The bank faced operational challenges starting in 2015 when RBI ordered its closure under Section 35A of the Banking Regulation Act, 1949. It resumed activities in 2018 but again suspended operations in 2023 following RBI directives. The bank was allowed to operate until May 2025, subject to review, the HCBL officer said. According to the RBI, the bank's current financial position prevents it from fully repaying depositors, and continuing operations would harm public interest. 'The cancellation prohibits HCBL from conducting any banking business, including accepting or repaying deposits, with immediate effect.' Depositors are entitled to claim deposit insurance up to ₹5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). As per bank data, 98.69% of depositors qualify for full reimbursement, with DICGC having paid ₹21.24 crore as of January 31, 2025.
Mint
19-05-2025
- Business
- Mint
RBI cancels licence of Lucknow-based HCBL Co-operative Bank for not complying with rules
Mumbai:The Reserve Bank on Monday said it has cancelled the licence of Lucknow-based HCBL Co-operative Bank as the lender does not have adequate capital and earning prospects. Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 19, the Reserve Bank of India (RBI) said in a statement. The Commissioner and Registrar of Cooperative, Uttar Pradesh has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank, it said. On liquidation, every depositor would be entitled to receive a deposit insurance claim amount of his/her deposits up to ₹ 5 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). As per the data submitted by the bank, 98.69 per cent of the depositors are entitled to receive the full amount of their deposits from DICGC, RBI said. As of January 31, 2025, DICGC has already paid ₹ 21.24 crore of the total insured deposits. Giving details, the RBI said the cooperative bank has failed to comply with the requirements of certain sections of the Banking Regulation Act, 1949, and the continuance of the bank is prejudicial to the interests of its depositors. "The bank with its present financial position would be unable to pay its present depositors in full," it said and added that public interest would be adversely affected if the bank is allowed to carry on its banking business any further. Consequent to the cancellation of its licence, HCBL Co-operative Bank has been prohibited from conducting the business of 'banking' which includes, among other things, acceptance of deposits and repayment of deposits with immediate effect.
Time of India
28-04-2025
- Business
- Time of India
Depositors of New India Co-operative Bank stage protest over delay in fund access
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Depositors of scam-hit New India Co-operative Bank staged a protest in Maharashtra's Thane city on Monday, demanding urgent action on the revival or merger of the institution. Protestors under the banner of the NICB Depositors' Foundation marched to the bank's Majiwada branch, carrying placards listing their Foundation has been demanding urgent measures to restore depositor confidence and alleviate the financial strain faced by thousands of account holders since RBI imposed restrictions on February Police has so far arrested eight persons in the Rs 122 crore New India Co-operative Bank embezzlement case.A delegation met the branch manager and submitted a detailed memorandum outlining their apprehensions regarding the bank's memorandum stressed that despite earlier meetings with RBI-appointed advisors and senior officials, there is "considerable ambiguity" about the bank's voiced concerns about the safety of their deposits, particularly amounts exceeding Rs 5 lakh insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) and demanded specific timelines for either the bank's revival or its merger with a stable financial the memorandum, depositors have demanded an increase in the withdrawal cap from Rs 25,000 to Rs 1.5 lakh, full repayment of fixed deposits beyond the insured limit, updates on forensic and special audits, an assessment on the impact of non-performing assets (NPAs), and early recovery of funds from attached properties linked to warned of intensifying their agitation if authorities continued to delay action, urging the bank management to immediately forward their concerns to the NICB Administrator and seek the RBI's intervention for urgent memorandum also appealed that the bank must request the RBI to announce the removal of restrictions and roll out a revival or merger plan before the DICGC disburses insurance money on May 14.
