RBI asks banks to acknowledge self-declaration forms and extends date for issue of UCIC
Updated: May 31, 2013 04:56:36pm
New Delhi, May 31 (KNN) With a view to protecting the interests of depositors, the Reserve Bank of India (RBI) has issued a notification to all scheduled commercial banks excluding regional rural banks (RRBs) to acknowledge receipt of self-declaration forms from depositors.
In other words, banks will have to provide a proper acknowledgement at the time of receiving Form 15-G/15-H, which are self-declaration forms for nil/lower deduction of tax deducted at source (TDS) on interest on fixed deposits.
The move comes in the wake of banks continuing to deduct tax at source at times, causing inconvenience to customers which have led to a number of complaints. Also, sometimes, forms are misplaced by branches.
Banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules of 1962.
Having examined the issue in consultation with Indian Banks’ Association (IBA), RBI has issued such a notification. It is hoped that the procedure would help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the banks.
In the meantime, RBI has also extended the time for banks to allot Unique Customer Identification Code (UCIC) to existing account holders, until March 31, 2014.
In yet another notification to all scheduled commercial banks, local area banks and all India financial institutions, excluding regional rural banks, RBI said, “Some banks have expressed difficulties in implementing UCIC for its customers, for various reasons, and have sought more time to allot UCIC to their existing account holders. Keeping in view the constraints, the time for completing the process of allotting UCIC to existing customers is extended up to March 31, 2014. We, however, reiterate that UCIC should be allotted to all customers while entering into new relationships.”
The central bank had earlier advised banks to initiate steps for allotting UCIC to all their customers while entering into any new relationships for individual customers to begin with, and to existing individual customers by end-May 2013.
The initiative was intended to prevent money laundering and combat financing of terrorism. (KNN)
In other words, banks will have to provide a proper acknowledgement at the time of receiving Form 15-G/15-H, which are self-declaration forms for nil/lower deduction of tax deducted at source (TDS) on interest on fixed deposits.
The move comes in the wake of banks continuing to deduct tax at source at times, causing inconvenience to customers which have led to a number of complaints. Also, sometimes, forms are misplaced by branches.
Banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules of 1962.
Having examined the issue in consultation with Indian Banks’ Association (IBA), RBI has issued such a notification. It is hoped that the procedure would help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the banks.
In the meantime, RBI has also extended the time for banks to allot Unique Customer Identification Code (UCIC) to existing account holders, until March 31, 2014.
In yet another notification to all scheduled commercial banks, local area banks and all India financial institutions, excluding regional rural banks, RBI said, “Some banks have expressed difficulties in implementing UCIC for its customers, for various reasons, and have sought more time to allot UCIC to their existing account holders. Keeping in view the constraints, the time for completing the process of allotting UCIC to existing customers is extended up to March 31, 2014. We, however, reiterate that UCIC should be allotted to all customers while entering into new relationships.”
The central bank had earlier advised banks to initiate steps for allotting UCIC to all their customers while entering into any new relationships for individual customers to begin with, and to existing individual customers by end-May 2013.
The initiative was intended to prevent money laundering and combat financing of terrorism. (KNN)
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