Banking and Financial Newsletter – August 21 to August 25, 2017

This week, “The Union Cabinet has given in principle approval for a merger of public-sector banks on Wednesday. The Cabinet has set up a ministerial panel to supervise the merger process.”

Aug 26, 2017 05:08 IST India Infoline News Service

Top news

Bank of India revises saving bank interest rate

Banking major, Bank of India has slashed interest rate on savings bank accounts by 50 basis points to 3.5% on deposits of up to Rs 50 lakh. However, the bank will continue to pay 4% interest on deposits of above Rs 50 lakh.
"The bank is introducing two-tier saving bank rate with effect from Thursday," said Bank of India (BOI) in a BSE filing on Thursday. Read more

Cabinet gives in-principle approval of PSU Bank consolidation

The Union Cabinet has given in principle approval for a merger of public-sector banks on Wednesday reported a leading news agency. The Cabinet has set up a ministerial panel to supervise the merger process, the report added.
 With this, the government seeks to consolidate the 21 state-owned banks in the country which forms around 75% of the country’s banking system. Read More

Banks to pay 3% tax on gold imports

Banks will have to pay 3% tax on gold and other precious metals imported by the financial institutions under the ambit of GST which can be claimed as input tax credit, reported a leading business daily.
Clarifying issues on GST on gems and jewellery through Frequently Asked Questions (FAQs), the Central Board of Excise and Customs (CBEC) said banks previously did not pay any VAT on import of precious metals. Banks only paid customs duty. Read More

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