Post-Budget RBI Meeting: Finance Minister Nirmala Sitharaman participated in the traditional post-budget meeting with the Reserve Bank of India (RBI) on Saturday to discuss banking-related measures and decisions. Following the meeting, a joint press conference was held by Finance Minister Sitharaman and RBI Governor Shaktikanta Das. This was the Finance Minister’s first meeting with the RBI after the budget.
Focus on Core Banking Operations
During the press conference, Finance Minister Nirmala Sitharaman emphasized several key aspects of banking reforms. She stated that banks need to focus more on their core functions, which are primarily accepting deposits and providing loans. Currently, bank deposits are growing slowly, as people are turning to the stock market in search of higher returns. The Finance Minister suggested that banks should introduce attractive offers to encourage more deposits from their customers.
RBI Governor’s Remarks on Interest Rate Volatility
In response to a question on interest rate volatility, RBI Governor Shaktikanta Das explained that banks set their own deposit rates and interest rates, and these can vary between different banks. He noted that the actual interest rates have not been highly volatile and have remained relatively stable.
Account Holders Can Now Nominate Up to Four Individuals
A noteworthy development is that the Central Cabinet has authorised a number of substantial modifications to banking regulations. Account holders are now allowed to name up to four people rather than just one, per the new regulations. In the past, banks only permitted account holders to name one candidate. The new rule allows for the nomination of up to four individuals.
Experts believe the administration has taken a wise move with this. Most account holders have historically designated their spouse as the nominee. Nevertheless, the money would stay in the bank if the accident claimed the lives of both the spouse and the account holder. Account holders may designate up to four nominees under the new regulation, enabling their kids to receive the money in the case of their parents’ passing.
Understanding the New Rule
According to the new rule, if an account holder nominates four individuals, they must list them in order. For example, 1 – Spouse, 2 – Daughter, 3 – Son, and so on. If the account holder passes away, the first person on the list will receive the entire amount. If, for some reason, the first nominee has also passed away, the funds will go to the next person on the list.
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