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| June 30, 2017 |
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Impact 
Safety is sometimes illusionary. Many of you might think your valuables are safe in the bank lockers, but if you read the terms and conditions of the Banks’ agreement for a locker facility, you can’t hold the bank accountable for any damage to your belongings placed in the locker.
A typical agreement would read like this—“The Bank shall not be responsible or liable for any loss or deterioration of or damage to the contents of the Locker whether caused by rain, fire, flood, earthquake, lightening, civil commotion, war, riot or any other cause/s not in the control of the Bank and shall also not be liable or responsible for any loss, sustained by the Hirer/s by leaving any articles outside the Locker.”
As reported by Financial Express dated June 26, 2017, RBI has also noted that “banks have no liability for loss of valuables in lockers”, which, in a way, has given banks the go-ahead to shrug off their responsibilities towards providing safety for your valuables.
However, consumer activists and experts don’t agree with this and believe that since banks charge a fee to provide the locker facility, they should be held responsible for damages. In fact, some experts suggest that any loss of your valuables or property occurring due to the bank’s negligence will qualify you to knock the doors of National Consumer Redressal Commission (NCDRC). And, you are likely to get justice as well.
While speaking to Press Trust of India, Mr Bejon Misra, a consumer-rights activist and the founder of Consumer Online Foundation said, “The Government, the RBI and the banking industry cannot wash off their hands and earn money from consumers and not be made liable or accountable for quality of service for which the customers are paying rental.” He went on to add that, “It (a bank not being liable for loss of locker contents) is an anti-consumer policy.”
It seems bankers are unimpressed with this view as there is no response from any of them. On the contrary, in response to an RTI query, 19 Public Sector Banks (PSBs) had stated that they shouldn’t be held responsible for any damage to the contents contained in lockers.
However, experts are not biased against the banks as they have also highlight the need to bring transparency and accountability to the operation of the locker facility. This means that it should be mandatory for locker-holders to report the contents of lockers based on which banks can opt for group insurance policies. Unless they don’t know what’s being held in the locker, they can’t be entirely held responsible.
At the moment, bank officials are making the “non-disclosure” an excuse to dismiss their responsibility. This loophole can be easily plugged by making simple changes to the rules governing locker facilities. It seems after demonetisation, lockers have become an unattractive business for banks.
What should you do to preserve your belongings?
- If you buy gold in physical form purely from the investment perspective, you can choose an option of buying Sovereign Gold Bonds or simply invest in gold ETFs (Exchange Traded Funds) instead.
- Go for a comprehensive home insurance policy when storing valuables at home.
- While you opt for a locker facility, pay attention to bank’s record in protecting lockers. If there’s any instance of burglary in a particular branch of a bank, don’t take chances. Search for a more reliable bank that takes the safety of lockers seriously.
- Report all your income and disclose all your assets, wherever required by law.
By adopting these simple measures, you can safeguard your property and valuables.
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Impact
Stock Clearance Sale!
Pre-GST Sale!
The Great Indian Sale!
The Big Billion Day Sale!
Different tag lines, all of them for one purpose --- stock clearance before the July 01, 2017.
If you visit a shopping mall or a well-known online store, there are sales running showering discounts and offers. Along with usual monsoon season sales, shops are gushing with customers frantically trying to get the best discounts.
Wondering why there are so many sales these days?
The urgency of this phenomenon is because of the Goods & Service Tax that will roll out over this weekend. With the implementation of this transformational tax structure, there is an unvoiced concern that the prices of most commodities are set to increase.
Let us dig in deeper and understand how GST is going to affect the profits of the producers/companies of any good or a service provider.
Maximum Retail Price (MRP) is the price you pay for the product inclusive of all the taxes. The MRP needs to be justified factoring in the total production cost and profit margins. And this needs to be approved by the regulatory body formed under Legal Metrology Act, 2009.
Once the product has been dispatched from the manufacturing unit/warehouse, the MRP cannot be changed as per the company's convenience. There is a set procedure and number of approvals required.
To read more about this story and Personal FN's views over it, please click here.
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Impact
With mutual funds getting popular among investors, the task of the Securities and Exchange Board of India (SEBI) to protect investors’ interest has gotten even tougher. The prevalence of mis-selling is very high, while the awareness among investors is gradually increasing.
On October 7, 2016, SEBI issued a consultation paper seeking public opinion on the amendments to SEBI (Investment Advisers) Regulations, 2013. It received an overwhelming response. Based on this, it recently proposed a few changes and invited public comments on the same.
The proposed changes are as follows:
Complete separation of investment advisory and distribution of financial products
Right now banks, Non-Banking Financial Companies (NBFCs), and other body corporates are allowed to offer investment advisory services through Separately Identifiable Departments or Divisions (SIDDs), under the banner of one company. SEBI has proposed this provision to be cancelled. And instead, those interested in offering investment ‘advice’ shall carve out subsidiaries within 6 months to handle this responsibility.
The rules for investment advisers who are currently offering comprehensive advice on financial planning and several financial product categories such as securities, insurance and deposits among others may also change. SEBI has proposed that these advisers must secure permission from the specific regulator and comply with the regulations of the respective regulators.
Moreover, it will be compulsory for them to register themselves as investment advisers. That being said, SEBI has clarified that advisers offering advice solely on non-securities will not be governed by SEBI (Investment Advisers) Regulations, 2013.
To read more about this story and Personal FN’s views over it, please click here.
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Impact
Thanks to the sustained rally in the Indian equity markets, mutual funds are gaining national popularity nowadays. This is evident from the sharp rise in the Assets Under Management (AUM) that mutual funds have experienced lately. This trend has made the role of independent mutual fund rating agencies even more critical. Recognising this, the Securities and Exchange Board of India (SEBI) has decided to make them more accountable. The capital market regulator is now pondering on the idea of registering them under SEBI (Research Analysts) Regulations, 2014.
The SEBI released a consultation paper clearly stating that, “Considering the activity of ranking of mutual fund schemes as research report to the public that services as a basis for their investment decision, it is proposed that the activity of ranking of MF schemes shall be brought under the regulatory ambit of SEBI (Research Analysts) Regulations 2014.”
However, it also proposed that "Entities/persons who are providing advice solely on non-securities shall not come under the purview of the SEBI (Investment Advisers) Regulations."
But the registration as a research analyst is not necessary for the platforms offering ranking services in the public domain. Nonetheless, they have to satisfy the regulatory requirements such as disclosure of financial interest and holdings along with the ranking methodology.
To read more about this story and Personal FN’s views over it, please click here. |
After merging the Railway Budget with the Union Budget this year, the Government is now looking to discontinue one more practice of the colonial era. The NITI Aayog and the Government are pondering on the idea of changing the financial year to January-December from the current April-March. Accordingly, the Union Budget meet might be shifted to November.
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Tax Break: A tax break is a savings on a taxpayer's liability. A tax break provides a savings through tax deductions, tax credits, tax exemptions and other incentives.
(Source: Investopedia)
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Quote: The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell" - Sir John Templeton
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