Ever seen your cheque being dishonoured? Well, you may no longer have to speculate on the whys! The Reserve Bank of India has directed banks to clearly mention the reason for dishonouring or returning a cheque unpaid. Instruments returned unpaid should also have a signed or initialled objection slip on which a definite and valid reason for refusing payment must be clearly stated. Mentioning the date of return in the cheque return memo is now essential too. Banks not signing the cheque return memos, stating that these are computer generated and therefore don't require signatures are in violation of instructions.

KYC mess no more

In what will be a huge relief to the retail investor, SEBI has decided to rationalise the tedious and sometimes frustrating Know Your Client process. SEBI has passed a proposal to set up a mechanism to ensure that the initial KYC should be undertaken only once. Under this mechanism, it plans to set up one or more SEBI-regulated KYC Registration Agency which will undertake KYC at the stage of account opening for all clients in the securities market at various Point of Service.

Attractive FDs from SIDBI

For those looking for attractive fixed deposit options, SIDBI is offering interest rate of 9.50 per cent for FDs of duration 12-13 months; 9.25 per cent for FDs of 14-36 months duration and 9 per cent for deposits of 37-60 months duration . Senior citizens get slightly higher rates on the same. SIDBI's FD is rated “AAA” by CARE indicating high ‘Return, Safety and Service'. SIDBI offers both cumulative and non-cumulative options. In case of non-cumulative option, you can opt for quarterly or annual interest payments. The minimum deposit amount is Rs. 10,000 and in multiples of Rs. 1,000 thereafter. Nomination facility is also available. These deposits are being marked by about 175 agents across the country.

Rate hikes by banks

With the Reserve Bank of India raising the repo rate, can banks be far behind? A slew of banks have effected increases in lending rates. Steepest among these is Bank of India, which has raised its base rate to 10.75 per cent from 10 per cent; its BPLR stands at 15 per cent. Other banks which have increased base rates are Oriental Bank of Commerce, Bank of Baroda, DCB and Yes Bank by 0.5 percentage points each.

ULIP from Aegon Religare

Aegon Religare has offered a new unit-linked plan called ‘iMaximze'. The plan comes with a zero premium allocation charge. This plan has a both a trigger portfolio strategy and a self-managed strategy. Partial withdrawal is allowed after the first five policy years. The maximum amount of such withdrawal in any policy year is 20 per cent of the fund value at the beginning of that policy year. The minimum premium payable is Rs 24,000. What's more, you can buy this policy online too!

Guaranteed MIP from Max New York

Max NewYork's new money back life insurance plan provides guaranteed monthly income, monthly income boosters and guaranteed terminal benefits along with a comprehensive life insurance cover. Available for a six or eleven year term, the income is guaranteed to be paid for a period of ten years from the end of the policy term. Beginning year 12, monthly income boosters are provided in addition to the guaranteed monthly income. A sum equal to 150 per cent of the annual premium (for a 6 year policy) and 200 per cent of the annual premium (for an eleven year policy) will be paid as a guaranteed terminal benefit. You have the choice of 7 funds and have the flexibility to switch or make partial withdrawals.

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