Types of Bank Accounts - Indian Banking System.

Reserve Bank of  India

CURRENT ACCOUNT:

·         Current accounts are usually for businessmen and daily transactions.

·         It doesn’t serve a purpose of saving  your investments. The transaction facility to this account is so flexible that you can make innumerable transactions in a day.

·        The banks don’t pay any interest on your  amount but it charges certain service charges on such accounts.

SAVINGS ACCOUNT:

·         Savings Accounts are the most popular kind of individual accounts for personal purpose of saving your investments and getting interest rates.

·         Savings account provides cheque facility along with flexibility for deposit and withdrawal of f unds from your account.

·         At present Interest rate is  4% .

FIXED DEPOSIT:

·         Fixed Deposits popularly known as FD are available at various schemes with a tenure from 7 days to 10 years.

·         This account is specially designed who want to deposit their savings for a long term to gain good rate of interest.

·         The interest rate on these accounts varies from bank to bank.

·         Generally ,   interest rate is between 7 % p.a.  to 9 % p.a.

RECURRING DEPOSIT:

·         Recurring deposits also known as RD accounts who wish to invest an average amount of their savings on a monthly basis.

·         These accounts gain interest on the amount available in your account.

Repo Rate and Reverse Repo rates in Indian Banking

Repo Rate :-

• The rate at which banks borrow money from the RBI by selling their surplus government securities to RBI is known as "Repo Rate.
• Repo Rate is the rate at which RBI lends money to commercial banks against the pledge of government securities whenever the banks are in need of funds to meet their day-to-day obligations.
• Banks enter into an agreement with the RBI to repurchase the same pledged government securities at a future date at a pre-determined price. RBI manages this repo rate which is the cost of credit for the bank.
• If the repo rate is low then banks can charge lower interest rates on the loans taken by us. 

Reverse Repo Rate :-

• Reverse repo rate is the rate of interest offered by RBI, when banks deposit their surplus funds with the RBI for short periods.
• When banks have surplus funds but have no lending (or) investment options, they deposit such funds with RBI. Banks earn interest on such funds.

1. Present   Repo Rate :- 6.25 %
2. Present  Reverse Repo Rate :- 5.75 %

CRR and SLR in Indian Banking

CRR

CRR means Cash Reserve Ratio  which  is the  percentage  of minimum amount of cash,  the banks have to keep in Current Account of Reserve Bank of India.

CRR at Present :-  4%

SLR

SLR  means  Statutory Liquidity Ratio which  is the  percentage of minimum  cash the banks have to invest  government securities or bonds that are  specified by RBI from time to time.

SLR  at Present :  20.5%

Both SLR and  CRR are  quantitative credit controls  used by RBI.

Most Useful websites for CA Students.

Most  Useful websites for CA Students.

Links / URL's

1.https://www.icai.org/

2.http://www.sebi.gov.in/sebiweb/

3.https://www.rbi.org.in/

4.http://www.cbec.gov.in/

5.http://www.incometaxindia.gov.in/Pages/default.aspx

6.https://www.nseindia.com/

7.http://www.mca.gov.in/

8.https://www.taxmann.com/

9.http://taxguru.in/

10.http://www.caclubindia.com/

CONCURRENT AUDIT

CONCURRENT AUDIT

Concurrent Audit is an audit which is conducted on concurrent basis, means no specific time period of Audit is defined particularly.

 In more simpler terms, usually an statutory or internal audit is conducted for a specified period say 1 year or 3 months. But, in concurrent audit no such Audit period is defined. It is conducted to check the daily transactions and ensure whether organisation is ensuring operational, regulatory compliance.

Usually concurrent audit is conducted for bank branches, depending upon the quantum of advances given. It also depends upon bank to bank and their risk taking capability. Concurrent audit is conducted to monitor day to day bank operationa so that all the compliances and security measures are being followed.

 Concurrent audit involves daily account opening checking, cash balance, income leakage, BCP & DRP analysis, NPA tracking, laws compliance,RBI compliance, various authorisations and all.

In some particular banks, scope of concurrent audit is very well defined to focus on the areas they are most concerned with.

 Now a days more and more branches are coming under the review of concurrent audit due to alarming rise of NPAs in all banks.

 So now banks are hiring more and more concurrent auditors to ensure their operational efficiency and profitability.