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On the golden day of January 16, 1996 the bank was established by the name of the First Jain Tirthankar Shri 1008 Bhagwan Adinath in the well known manchester city Ichalkaranji. The Ex.Deputy-Mayor Late Shri Appasaheb Baburao Magdum took the initiative to establish this bank with his colleagues Shri. Kuntilal Patani, Shri. Subhash Kadappa, Shri.Balasaheb S. Chougule, Shri.Dr. Parisa Badabade, Shri.Balasaheb P. Chougule, Shri.Ravindra Devmore, Shri. Bapuso Jamdade and others. With the golden hands of these founders “Shri Adinath Co-operative Bank Ltd.,Ichalkaranji” was emerged to fulfill the financial needs of the businessmans, farmers, doctors, salaried persons, etc. The main motive behind the establishment of the bank is to uplift the lifestyle of poorest poor peoples. Read More
CIBIL Score is a 3 digit Numeric Summary of your credit history, derived by using details found in the Accounts and Enquiries sections on your CIBIL Report and ranges from 300 to 900 symbolising an individual’s creditworthiness. This service helps users to know their CIBIL score, which is checked by all the banks for sanctioning the Credit facility to the borrowers If you are planning to apply for a loan, your lender is highly likely to check your CIBIL score before deciding whether it would offer you a loan or not. If your CIBIL score is above 750, you could get the best available loan offers provided you meet other eligibility criteria. But if your score is below 650, your loan offer is likely to involve a higher interest rate. In fact, a poor credit score could translate to loan application rejection too!
You must keep below mentioned points in mind to increase your CIBIL score and enjoy the benefits of a high CIBIL score. 1. Raise CIBIL Disputes 2. Pay Credit Card Bills on Time 3. Limit Credit Utilisation 4. Don’t Check Your Credit Card Scores Often 5. Keep a Check on Your CIBIL Report for Multiple Applications 6. Do Not Close Old Credit Cards 7. Don’t Keep Applying for Cards or Loans if Rejected 8. Opt for Different Types of Credits 9. Opt for Longer Tenure When You Take a Loan 10. Pay Your Loan EMIs on Time 11. Watch Out for Joint Application
Many reasons could affect your CIBIL score: 1. High Usage of Credit Limit 2. Outstanding Credit Card Balance 3. Late Payment 4. Multiple Loan Applications
Having a good credit score is always recommended because a good score gives you many benefits, such as: • Easy approval of your loan application • Wide choice of loan deals • Access to a higher quantum of loan • Possibility of availing of low-interest rates • Scope of negotiating the interest rate with the lender to fix the most reasonable rate • No restricting terms and conditions on availing of the loan • Instant loan sanctions
DEAF means Depositors Education and Awareness Fund. The Reserve Bank of India has mandated banks to identify accounts where there has been no customer-initiated transaction for a period of more than 10 years. As per the regulation, banks are required to transfer credit balance in such accounts to Depositors Education and Awareness Fund (DEAF).
DICGC means - Deposit Insurance and Credit Guarantee Corporation, is a Reserve Bank of India undertaking corporation. Each depositor in a bank is insured upto a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation / merger / reconstruction comes into force. The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits - Deposits of foreign Governments; Deposits of Central/State Governments; Inter-bank deposits; Deposits of the State Land Development Banks with the State co-operative bank; Any amount due on account of and deposit received outside India Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India
Dormant means inactive and inoperative means which is not being operated i.e. no transactions have been undertaken recently. In terms of RBI guidelines "A savings as well as current account should be treated as inoperative / dormant if there are no transactions in the account for over a period of two years". Further clarifying the issue RBI says "for the purpose of classifying an account as ‘inoperative’ both the type of transactions i.e., debit as well as credit transactions induced at the instance of customers as well as third party should be considered. However, the service charges levied by the bank or interest credited by the bank should not be considered". However, when the interest on Fixed Deposit account is credited to the Savings Bank accounts as per the mandate of the customer, it is treated as a customer induced transaction. However, it may be mentioned that some banks had certain internal guidelines / periods before an account can be termed as dormant and / or inoperative. Bankers needs to check their internal circulars for this purpose, but the above period of two years is applicable as per RBI guidelines. Therefore, as per RBI guidelines, there is no difference between dormant accounts and inoperative accounts.
Section 26 of the Banking Regulation Act, 1949 provides, inter alia, that every banking company shall, within 30 days after close of each calendar year submit a return in the prescribed form and manner to the Reserve Bank of India as at the end of each calendar year (i.e., 31st December) of all accounts in India which have not been operated upon for 10 years. Such deposits are considered as unclaimed deposits. Thus, banks were complying with these guidelines. Slowly, the amount of unclaimed deposits has increased to a level which came to severe criticism in the media and some other reports. To check this trend, RBI has initiated a move and wanted banks to play a pro-active role so that unclaimed deposits can be nipped in the bud itself. Thus, it has issued certain guidelines to banks as to how to monitor such dormant and inopertive accounts.
In terms of RBI guidelines, banks are required to make an annual review of accounts in which there are no operations (i.e., no credit or debit other than crediting of periodic interest or debiting of service charges) for more than one year. In case there have no "transactions", the bank is required to inform the account holder to activate the account by putting through any single debit or credit transaction which can also be put through a third party. If the account is still not activated and no reply is received, the bank will classify the account as dormant at the end of two years from the date of last transaction. RBI has also specified the procedure to be followed in case the letter sent is returned back. However, where the account holder replies and gives the reasons for not operating the account, bank will continue classifying the same as an opertive account for one more year within which period the account holder can operate the account. However, if the account holder still does not operate the same during the extended period, the account will be classified as inoperative at the end of the extended period. Interest on savings bank accounts should be credited on regular basis whether the account is operative or not. Banks are also advised to ensure that the amounts lying in inoperative accounts ledger are properly audited by the internal auditors / statutory auditors of the bank.
Yes. However, the bank is expected to exercise due diligence as to the genuineness of the transaction, verification of the signature, identify etc., and use its discretion while making payment of such cheques.
Yes, bank can charge as per the schedule of charges declared by the bank.
We have already explained about unclaimed deposits. Banks are now supposed to play a more pro-active role in finding the where abouts of the account holders of unclaimed deposits/ inoperative accounts. RBI has advised banks that they should display the list of unclaimed deposits/inoperative accounts which are inactive / inoperative for ten years or more on their respective websites. The list so displayed on the websites must contain only the names of the account holder (s) and his/her address in respect of unclaimed deposits/inoperative accounts. In case such accounts are not in the name of individuals, the names of individuals authorized to operate the accounts should also be indicated. However, the account number, its type and the name of the branch shall not be disclosed on the bank’s website. The list so published by the banks should also provide a“Find” option to enable the public to search the list of accounts by name of the account holder. Banks should also give on the same website, the information on the process of claiming the unclaimed deposit/activating the inoperative account and the necessary forms and documents for claiming the same. Banks are required to have adequate operational safeguards to ensure that the claimants are genuine.
NPA expands to non-performing assets (NPA). Reserve Bank of India defines Non Performing Assets in India as any advance or loan that is overdue for more than 90 days. “An asset becomes non-performing when it ceases to generate income for the bank,” said RBI in a circular guidelines.
Asset means anything that is owned. For banks, a loan is an asset because the interest we pay on these loans is one of the most significant sources of income for the bank. When customers, retail or corporates, are not able to pay the interest, the asset becomes ‘non-performing’ for the bank because it is not earning anything for the bank. Therefore, RBI has defined NPAs as assets that stop generating income for them.
Non-Performing Assets (NPAs) are loans or advances issued by banks or financial institutions that no longer bring in money for the lender since the borrower has failed to make payments on the principal and interest of the loan for at least 90 days.
Different types of non-performing assets depend on how long they remain in the NPA category. a) Sub-Standard Assets An asset is classified as a sub-standard asset if it remains as an NPA for a period less than or equal to 12 months. b) Doubtful Assets An asset is classified as a doubtful asset if it remains as an NPA for more than 12 months. c) Loss Assets An asset is considered a loss asset when it is “uncollectible” or has such little value that its continuance as a bankable asset is not suggested. However, some recovery value may be left in it as the asset has not been written off wholly or in parts.
Keeping aside the technical definition, provisioning means an amount that the banks set aside from their profits or income in a particular quarter for non-performing assets, such as assets that may turn into losses in the future. It is a method by which banks provide for bad assets and maintain a healthy book of accounts. Provisioning is done according to which category the asset belongs. The categories have been mentioned in the above section. Not only the type of asset but provisioning also depends on the type of bank. Like, Tier-I banks and Tier-II banks have different provisioning norms.
NPAs can also be expressed as a percentage of total advances. It gives us an idea of how much of the total advances are not recoverable. The calculation is pretty simple: GNPA ratio is the ratio of the total GNPA of the total advances. NNPA ratio uses net NPA to determine the ratio to the total advances.
The founder chairman of the bank, Late Shri Appasaheb Magdum was born on April 9, 1938 in an ordinary farming family. Schooling was done at Govindrao High School Ichalkaranji. Also while pursuing his engineering studies at Walchand College of Engineering Sangli, he had to leave his studies due to the sudden death of his father. Hence all the family responsibilities came to him. In 1975, against the injustice of not getting the right price for the sugarcane crop, he did a great job fighting to get a good price for the farmers crops by establishing the Farmers Youth Association. Read More
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