By: D.K. choudhary
IT Department Expands Deposits & Transactions List under Scrutiny
i. The Income Tax Department released its detailed guidelines on January 17, 2017 expanding the list of high end deposits and transactions made during the demonetization period to be reported by the banks, companies, post offices and businesses for scrutiny.
ii. As per the guidelines, banks need to report deposits made by individuals’ upto Rs. 2.5 lakh or more in savings account during the demonetisation period. Besides, for current account holders, this limit is Rs 12.5 lakh.
iii. Banks will also have to report all cash deposits and fixed deposits made above Rs 10 lakh during the year. Central Board of Direct Taxes (CBDT) has also sought details of all such deposits made since April 2006.
iv. This deposit would also consider bank drafts and prepaid instruments of Rs 10 lakh or more purchased using cash.
RBI Set to Increase Focus on IT and Cyber Security Issues
i. According to a notification published by the Reserve Bank of India (RBI) on January 18, 2017, RBI has planned to increase the focus on IT & Cyber Security in a move to combat the increasing threat of cyber-security issues arising after the governments Digital Payment initiative.RBI
ii. RBI with the help of its arm Reserve Bank Information Technology Private Ltd (ReBIT) will implement the IT & Cyber Security in the financial sector and assist in IT systems audit and assessment in entities such as banks, payments banks, wallets, among others.
iii. ReBIT has invited applications for various roles across its four verticals of Cyber Security, Systems Audit, Research and Innovation, and Project Management and Administration for this purpose.
iv. The cyber security vertical of ReBIT would run a security operations centre and look after any similar incidents that may occur on systems of RBI or any of the financial institutions.
RBI imposes Rs 75 lakh penalty on Bombay Mercantile Co-operative Bank
India’s central banking institution, Reserve Bank of India(RBI) has imposed a penalty of Rs 75lakhs on Bombay Mercantile Co-operative Bank for violations of norms related to KYC and anti-money laundering.
RBI had issued a notice regarding this to the bank and the bank has submitted its written reply.
Bombay Mercantile Co-operative Bank:
♦ The Mercantile Bank of Bombay was an Anglo-Indian bank with business focus in the Far East.
♦ The Mercantile Bank of Bombay was renamed to Mercantile Bank of India, London, and China in 1857.
♦ Founded:1853
♦ Headquarters: London
