UCO- No Frill Savings Account

The salient features of the scheme are as follows:

1.    INITIAL DEPOSIT FOR OPENING THE ACCOUNT: The account can be opened with a minimum initial deposit of Rs. 5/-.  In case of cheque facility being availed by the account holder, the minimum initial balance should be Rs. 250/-

2.    MAINTENANCE OF MINIMUM BALANCE: The account may be allowed to go even below the minimum initial deposit and the account may continue even with “Zero” balance.

3.    Opening of Account under the scheme – The scheme is introduced in all metro, urban, semi-urban and rural categories of branches without making any differentiation with regard to amounts of initial deposit and maintenance of minimum balance as prevailing at present for opening of Savings Bank Accounts.

4.    ELIGIBILITY FOR OPENING ACCOUNT: (a) The eligibility for opening “No-frills” Account is the same as that for opening general Savings Bank Account.  (b) Minors above the age 10 and below 18 years who are able to read and write may also open a minor no-frills savings account in his own name or jointly with any other person.

5.    RESTRICTION OF NUMBER OF WITHDRAWALS: In this account up to 25 withdrawals in a half-year are allowed free.  In case the withdrawals exceed 25, during a half-year, charge will be levied @Rs.3/- per additional entry during a half-year.

6.    CHARGES TO BE LEVIED: For accounts opened with initial deposits of Rs. 250/- for having Cheque Book facility, in case the balance comes down below the initial deposit even up to zero balance, usual charge for non-maintenance of initial deposit shall be levied.

7.    Standing Instructions – No charge will be levied.

8.    Collection of cheques and issuance of Demand Drafts/MTs are permitted in those accounts and normal charges are to be levied for those services.

9.    For accounts with cheque book facility, one cheque book of 20 leaves to be provided free of charge in each year.  Any additional requirement of cheques leaves during a year will attract a charge of Rs.2/- per cheque leaf.

1.    COMPLIANCE OF KYC GUIDELINES: If a person wants to open the account and is not able to produce any of the specified documents, required to be verified at the time of opening of account to establish the identity and address, the account may be opened for that person, subject to compliance of the following: (a) Introduction from another account holder who has been subjected to full KYC procedure.  The introducer’s account with the Bank should be at least six month old and should show satisfactory transactions.  (b) Photographs of the customer who wants to open the account. (c) Address of such persons should be certified by the introducer or furnishing any other evidence as to the identity and address of the customer to the satisfaction of the bank.

Note: The customer should know that if at any point of time the balance in all his/her accounts with the bank (taken together) exceeds Rs. 50,000/- or the total credits in the accounts exceed Rs. 1.00 lakh in a year, no further transaction will be permitted in the account until full KYC procedure of the customers are complied with.

UCO Star Savings Account

The salient features of the UCO Star Savings Account are as below:

1.    Minimum Monthly Average Balance  (estimated as average of daily balance Rs. 25000/-)

2.    Charges on  Non-Maintenance of  Monthly Minimum Balance --Rs. 100/- per month

3.    Multicity/personalized Cheque book ---Up to 1 booklets free per quarter (20 leaves), after that Rs. 3 per leaf

4.    Sweep in/out facility Above Rs.25000

5.    DD/TT/MT/RTGS (apart from RBI charges) : 15% discount

6.    Pay Orders: No charges only out of pocket expenses Rs.10

7.    Immediate Credit of Outstation Cheques Up to Rs 15000 in 1st Yr & Up to Rs. 25,000 after 1 yr of satisfactory operation.

8.    Standing Instructions : free

9.    Stop Payment Charges-Free

10. Statement of Account if required in addition to pass book--Free- for last 1 yr.

11. Loan Processing Charges on retail loans (Provided the account is maintained in the same tier at least for a period of 1 year)--50% discount

12. Interest on Retail loans Regular rate

13. Discount on lockers15% waiver

14. Home Delivery of DDs Home Delivery of Pass books/ Cheque books  (Courier charges will be recovered)

15. Consultation on Insurance/Mutual fund (at customer premises) by Bank’s specified officers

16. Charges for non maintenance of Minimum Balance Rs.250 per month

17. Charges for closure within 1 year Rs.250.00

ANTI MONEY LAUNDERING

Money laundering is a process whereby proceeds of illegal activities are converted into legitimate money through a series of financial transactions. In layman’s language, it is the process of converting black money into white money.

HOW IS MONEY LAUNDERED?

Money laundering is done through any financial transaction or a series of financial transaction that seeks to conceal the nature or source of proceeds derived from illegal activities. Usually, it involves three stages which are as follows: –

1) Placement: In this initial stage, the launderers try to physically dispose off the cash. This is done by reducing large amount into smaller chunks and depositing them in different accounts or other financial institutions.

2) Layering: In this stage, the proceeds are separated from the source through the use of layers of financial transactions. The layers are well designed to hamper the audit trail, disguise the origin of funds and provide anonymity. Examples of layering are: – premature payment of fixed deposits without regard to penalty, early surrender of annuity, purchase and sale of investment wise transfers disguising as payment of goods and services.

3) Integration: In the final stage, the laundered money is brought back into the economy so as to make it apparently legitimate fund. Examples are: – Investment in real estate, luxury assets, business venture etc.

Usually money laundering takes place in places other than where it has originated and in countries where anti money laundering act is not there or is not very strict

UCO visa debit card for mobile recharge.

Please follow the following steps for using UCO VISA international Debit Card to recharge your mobile:

Visit www.rechargeitnow.com

Create your own user id and password for this site by clicking “new users register”.

Sign In with your newly created user id and password.

Select the mobile service provider by clicking on the appropriate icon.

Give the number of your mobile and click on ‘go’.

Give the amount and click on ‘continue’.

In the next page select payment option as ‘debit card’ and further details as visa debit card.

In the next page select other bank visa/master card and give the 16 digit number of our card, expiry date and cvv. ( Please see the back side of the ATM card to get cvv which is of 3 digits number).

Click next will take you to another page were we have to give the verified by visa card password created by you.

Clicks submit.

The process is almost same for online payment for other facilities such as airline ticket booking, purchase of books, and donation to religious institution, universities, Government payment etc.

Properties of Money

1)         Money Serves as a Medium of Exchange:

-           A medium of exchange is the property of money that exchange is made through the use of money.

2)         Money Serves as a Unit of Account:

-           Unit of account is the property of money that prices are quoted in terms of money.

-           Money provides a convenient measuring rod when prices for all goods are quoted in money terms.

-           Money can be used to compare the relative value of goods, making it easier to carry out economic transactions.

3)         Money Serves as a Store of Value:

-           Store of value is the property of money that it preserves value until it is used in an exchange.

-           From the time you receive a payment until the time you make payment; you can use money to store value.

# What borrowers want?

-           Long term loan

-           Minimum Interest 

-           Minimum risk and transaction cost

# What lender wants?

-           Maximum liquidity

-           Maximum return

-           Maximum risk and transaction costs

# Money Market- The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit, federal funds, and short-lived mortgage-backed and asset-backed securities. It provides liquidity funding for the global financial system.

# Net worth - The amount by which assets exceed liabilities is called net worth. This term can be applied to companies and individuals or is the difference between assets and liabilities.

(Source-Internet)

Important Abbreviations

ABCP – Asset Backed Commercial Paper

ABS – Asset-Backed Securities

ACMA – Automobile Components Manufacturing Association of India

AD – Authorised Dealer

ADF – Augmented Dicky Fuller

ARM – Adjustable Rate Mortgages

BCBS – Basel Committee on Banking Supervision

BIS – Bank for International Settlements

BoP – Balance of Payments

BPO – Business Process Outsourcing

CAD – Current Account Deficit

CBRG – Cross-Border Bank Resolution Group

CBO – Congressional Budget Office

CDOs – Collateralised Debt Obligations

CDS – Credit Default Swaps

CESR – Committee of European Securities Regulators

CFPA – Consumer Financial Protection Agency

CMBS – Commercial Mortgage-Backed Securities

CP – Commercial Paper

CPI – Consumer Price Index

CPFF – Commercial Paper Funding Facility

CPSS – Committee on Payment and Settlement Systems

CRAs – Credit Rating Agencies

CRAR – Capital to Risk-Weighted Assets Ratio

CRR – Cash Reserve Ratio

CVD – Countervailing Duty

EC – European Commission

ECB – European Central Bank

Ecofin – Economic and Financial Affairs Council

EMEs – Emerging Market Economies

EMPI – Exchange Market Pressure Index

ESF – Exogenous Shock Facility

ERM – Exchange Rate Mechanism

ESFS – European System of Financial Supervisors

ESRC – European Systemic Risk Council

FASB – Financial Accounting Standards Board

FBT – Fringe Benefit Tax

FCL – Flexible Credit Line

FDI – Foreign Direct Investment

FDIC Federal Deposit Insurance Corporation

FHCs – Financial Holding Companies

FHLMC – Federal Home Loan Mortgage Corporation

FIIs – Foreign Institutional Investors

FIPB – Foreign Investment Promotion Board

FSI – Financial Stress Indicator

FNMA – Federal National Mortgage Association

FSA – Financial Services Authority

FSCS – Financial Services Compensation Scheme

FTC – Federal Trade Commission

GAAP – Generally Accepted Accounting Principles

GDP – Gross Domestic Product

GECC – Global Economic Co-ordination Council

GFD – Gross Fiscal Deficit

GFSR – Global Financial Stability Report

GIMF – Global Integrated Monetary and Fiscal

GPRF – Global Food Crisis Response Programme

GSDP – Gross State Domestic Product

DTA – Domestic Tariff Areas

HFCs – Housing Finance Companies

HP – Hodrick-Prescott

HKMA – Hong Kong Monetary Authority

IASB – International Accounting Standards Board

IFC – International Finance Corporation

IFRS – International Financial Reporting Standards

IIFCL – India Infrastructure Finance Company Limited

INFRA – Infrastructure Recovery and Assets

IMF – International Monetary Fund

IMFC – International Monetary and Financial Committee

IOSCO – International Organization of Securities Commissions

IPAs – Issuing and Paying Agents

IPOs – Initial Public Offerings

IRB – Internal Rating Based

IT – Information Technology

ITEs – Intra-Group Transactions and Exposures (ITEs)

ITES – Information Technology-enabled Services

LAF – Liquidity Adjustment Facility

LCBGs – Large and Complex Banking Groups

LCD – Liquid Crystal Display

LIBOR – London Inter-Bank Offer Rate

LOLR – Lender of Last Resort

MAS – Monetary Authority of Singapore

MBS – Mortgage Backed Securities

MFIs – Micro-Finance Institutions

MIBOR – Mumbai Inter-Bank Offer Rate

MIGA – Multilateral Investment Guarantee Agency

MSMEs – Micro, Small and Medium Enterprises

MSS – Market Stabilisation Scheme

MTM – Mark-to-Market

M&As – Mergers and Acquisitions

NAB – New Arrangements to Borrow

NBFCs – Non-Banking Financial Companies

NBS – National Bank Supervisor

NCBP – Non-Concessional Borrowing Policy

NDA – Net Domestic Asset

NDTL – Net Demand and Time Liability

NFA – Net Foreign Assets

NFC – Non-Food Credit

NMF – Investment by Mutual Funds

NPLs – Non-Performing Loans

NRSROs – Nationally Recognised Securities Rating Organisations

OBSVs – Off-Balance Sheet Vehicles

OCR – Ordinary Capital Resources

OECD – Organisation for Economic Cooperation and Development

OIS – Overnight Indexed Swap

OLS – Ordinary Least Squares

OMO – Open Market Operation

ONI – Office of National Insurance

OTC – Over-the-Counter

OTD – Originate-to-Distribute

OTH – Originate-to-Hold

OTS – Office of Thrift Supervision

OBSEs – Off-Balance Sheet Entities

PDIC – Philippine Deposit Insurance Corporation

PDs – Primary Dealers

PPAC – Petroleum Planning Analysis Cell

PPP – Public Private Partnership

PRGF – Poverty Reduction and Growth Facility

PVAR – Panel Vector Auto-Regression

REER – Real Effective Exchange Rate

RMBS – Residential Mortgage-Backed Securities

RWA – Risk-Weighted Assets

SEBI – Securities and Exchange Board of India

SEC – Securities and Exchange Commission

SEP – Supervisory Enhancement Programme

SEZs – Special Economic Zones

SHGs – Self-Help Groups

SIDBI – Small Industries Development Bank of India

SDL – State Development Loan

SIVs – Structured Investment Vehicles

SLR – Statutory Liquidity Ratio

SMEs – Small and Medium Enterprises

SMO – Special Market Operation

SSMB – Standard Setting and Monitoring Body

SSIs – Small-Scale Industries

StAR – Stolen Asset Recovery

S&L – Savings and Loan Associations

TAF – Term Auction Facility

TARP – Troubled Asset Relief Program

TFFP – Trade Facilitation Programme

TUF – Technology Upgradation Fund

UNWTO – United Nations World Tourism Organization

VAR – Vector Autoregression

WADR – Weighted Average Discount Rate

WEO – World Economic Outlook

WTO – World Trade Organisation

This Report can also be accessed on Internet URL : www.rbi.org.in

Advantages of Mobile Banking

Mobile banking offers banking services on a mobile phone. Mobile banking service is primarily available over SMS (Short Messaging Service) or through GPRS (General Packet Radio Service) or sometimes through USSD (Unstructured Supplementary Service Data). The services available are:

Ø  Funds transfer (intra and interbank)

Ø  Balance enquiry services/mini statements

Ø  Request services (cheque book)

Ø  Utility bill payments and credit card payments

Ø  Demat account services

Ø  Mobile top up

Ø  Merchant payment, life insurance premium

Ø  Stop payment instructions

Advantages of Mobile Banking

Ø  Providing banking service to unbanked areas and to those customers who otherwise would not have got the banking service.

Ø  The wage earners staying away from their homes and finding it difficult and expensive to remit money to their families, can send money instantly through mobile banking

Ø  The wage earners can do bank transactions without visiting the bank. The advantage being that they do not lose a day’s wages which they would otherwise lose by going to the branch for getting any banking service.

Ø  All non cash banking requirements can be carried out using mobile phones.