Thursday, December 27, 2012

CTS (Cheque Truncation System) Cheque

Cheque Truncation System (CTS) aims to make cheque clearance more efficient and reduce the clearance time of cheques to one day, thereby trimming down the floating time considerably. India processes as many as 1.2 billions cheques annually and therefore, the implementation of this system would drastically cut down the waiting period involved. The system will be implemented nationwide from April 1, 2013.
Sample CTS Cheque

An online image-based cheque clearing system, the collecting bank branch would deploy scanned images along with the magnetic ink character (MICR) of the cheque which will be sent out electronically using their Capture System, removing the need for physical/manual transfer of cheques. The captured images and the data is then signed and encrypted and sent to the Clearing House or the central processing location and thereafter forwarded to the drawee or paying bank.

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Tuesday, December 18, 2012

NEW Saving bank account without any MINIMUM balance(No hidden charges) - ICICI b2 digital banking

 So when was the last time you visited your bank's branch? A month ago - 2 months maybe even 3 months ago? Why haven't you walked in to a branch? Simple - you didn't need to.
India and the world as we know it is moving towards a new paradigm where users demand world class service - as and when they want it.When we talk about anytime anywhere service then first thing came into mind is digital service.
If you identify with this philosophy then welcome to the world of b2 digital banking. Welcome to ICICI b2!
ICICI bank has statrted a unique idea of branch free banking with some limited access.
When ATMs were introduced, we thought that why do we need ATMs when we have good old branches? ICICI b2 banking is the next step in the evolution of banking. It's a bank, where everything is done online and since you don't need branches, so they don't offer them. you can enjoy all the conveniences of banking at your finger tips and your money grows faster. b2 understands that today’s banking is not just about payments and transfers. Hence along with these it offers other benefits like bill payments and mobile recharge.
 Features in ICICI b2 banking
    No hidden charges/zero charges
    8 % Interest rate
    No premature penalty
    Online transfer of Balance
    virtual e wallet for online payments
    No minimum balance requirement.
    24X7 banking
    Pre approved Loan without any documentation
    Online credit card
    Online draft request and free delivery any where in India
    Online RD and FDR account
    Free bills payment
    Mobile recharge facility
    Online help line service
Features not in ICICI b2 banking
      No ATM card
    No Debit Card
    No passbook
    No physical statement .
    No cheque Book
    No /limited access to branch


Tuesday, December 11, 2012

Allowance in Salary will also included in PF deducation

Under the Ministry of Labour and Employment It has been directed that according to new regulation PF(Provident Fund) of a employee should be deducted form  of sum total of  the basic pay and allowances . The new circular will cut the decease the salary of the employees. but that PF amount will  pleasure with you .It will increase the amount of PF deduction but at the same time it same amount will be contributed by Employer which will ultimately help employee in long run

Internal Review of the EPFO ​​in Mumbai on November 30, after meeting all EPF offices across the country it is circular. So far employee contribution is done as   twelve per cent of the basic pay and DA . Following the release of the new circular the  companies who  being manipulate in employee basic salary and break it into different allowance to reduce PF amount will now under pressure . Now for calculating employee PF Basic and other allowance will be added . That means Convenace, medical, education etc these will be the part of PF calculation

Suppose a person's gross salary is Rs 33. It's basic salary 25 thousand, 5 thousand and night shift allowance allowance convenyance allowance as 3 thousand .In normal case  PF contributions on basic pay at the level of Rs 25,000 is made that means his PF contribution will be 6000. But according to the new circular allowances are also  attached to the Basic and then PF contribution  will be calculated which will come around 7,920

This nearly 960 bucks in your pocket and the salary will decrease. If there is no employer's contribution then there will deduction  of Rs 1920 from salary

According to Top government officials,that merely issuing guidelines by Former Central Provident Fund commissioner (CPFC) RC Mishra triggered a controversy by issuing a circular on his last day in office has no relevance; instead amendment in the EPF Act by Parliament is the only way to enforce new norms for PF contributions.
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New cheque system in Indian banking system form 1 Jan 2013 - Cheque Truncation System

Have you wondered why bank has been sedning SMS and call to replace your old cheque book before 1 JAN 2013. the answer is INDIAN bank is moving toward faster and quicker Cheque Clearnce method. This new cheque system is called CTS which stands for Cheque Truncation System
Earler with the instruction of RBI this project was tested as pilot project with some banks across few location in INDIA finally RBI has made it mandatory to use CTS enable cheque book
In this  system the Cheque will be cleared in a day which normally takes days days on an average.
In present context all the cheques are sent directly physical to the respective  bank  to which cheque bleongs to for clearance, but in  this new  System , the banks will send the digital version of cheques to the other bank and the clearance will be done almost same day

Here are few feature listed below by which you can identify whether your cheque book is CTS enable or not

1) All CTS-2010 Cheques will have a watermark with the words “CTS INDIA”, which can be seen against a light

2) It should have a bank logo that will be on cheque with a Ultra Violet Ink , which can be seen only under UV Scanners.

3) The Cheque Truncation System 2010 enabled cheques will not allow any alterations. If there is any mistakes, the cheque will be invalid

4) It should have text  at the bottom of all the cheques “payable at par at all branches of the bank in India”

5) It should have  IFSC and MICR code on the cheque

6) Sign the cheque will a darker ink, so that your signatures are valid for scanning.

7) It should have the wordings “please sign above this line” at right bottom