Read before buying the Ridaex ARYA I TV

Do not take decisions seeing these ads.

Let me Introduce the Company. It is the company registered by RGK Silicon Sciences Pvt Ltd based in the Silicon Valley of India (Bangalore). Is a startup which produces High Definition TVs with modular structure. This company was making headlines in many Tech Startup journals. The company is ramping up aggressively raising funds through Crowdfunding.

So, to review their product I ordered one 43inch QLED TV (ARYA I) of their product during their Black Friday Sale with a 40% discount. Let me give my personal feedback on the Product and the Services.I published it in my blog just to inform others even though it does not share the synergy. 

First do remember it is a new Brand in market so Resale you should nor consider while purchasing one. Also you will not find any traces of their Product review or feedback anywhere in the web. So, I took up the responsibility to publish my feedback which may help others.

The Price Point

At the Price point(30K), you can get similar products. Can get top brands(Check online marketplaces) with an extra amount(like 3-4K). Even, a better futuristic product available in Croma online which is 30% less in price. So, it's Pricing will disappoints you. 

The Delivery

I booked the TV on 25-Nov-2022 and delivered it on 24th-Dec-2022(almost a month). In my case the delivery is not a door step, so I flexed my muscles to get it home. During this time I used get their CRM intimations. From the CRM Intimation it was very clear, upon your purchase they order the consumables and assemble at their lines and deliver. Which does not owe them any responsibility except testing and delivering.

Post Sale Service

In my case, it is been 16days but the TV was not installed by them. By this time I had 

• Twitted twice onto their CEO’s handle @naveen_ridaex along with their corporate handle @ridaex
• Called to all available numbers 14times.
• Dropped 9 times messages in their WhatsApp number
• Shared my location 3time with their technical team
• Wrote 4emails to their official tech team id.

Surprisingly they were unable to complete an Installation with these many follow ups at their HQ, wondering how they will manage across India. 

Now, In Detail the Product

To kill the curiosity today I have opened the box. Let me detail this experience as well.

• The Product is packed with a wall mount which is completely non-functional. It is just an accessory. Which OK.
• The Build Quality of the product is very substandard.
• The product comes with 2 remotes which is a bad design. Hardly anyone wish to have 2 remote to just view  a TV.
• The power light(LED) is designed so which completely popped out of the body in a big square box.
• The TV fails to connect to a network on which all other devices(+my Old TV) connected.
• The Sound quality is not that great. The bass is so high.
• Lastly, you cannot return the product for refund. I wish if I could.

Now, with all this problem I don’t have any other option rather using the TV. Currently the product positioned very badly in the market. Never-mind, in my opinion I felt cheated by a company who is struggling to build a brand.

Always wise with your investment, so before buying they do remember the Post Sales Service and Resale Value. Hope you are all wise enough to take your best decision. 

Lesson Learnt: Value your hard earned money.

 

Now on the EPF Impact Your your Salary?

Recently the Supreme Court Of India has delivered a landmark decision on the allowances which need to be taken into account while determining the contribution under the Employee Provident Fund Scheme, which lucidly burden the employees of the private sector. Refer the implications of the landmark decision.

Legal  credibility of the Existing EPF scheme

An employer have to deduct 12% of Basic Salary and dearness allowance as part of employees' contribution towards the Employee Provident Fund (EPF) with an addition of same amount as part of Employer Contribution.

EPF is mandatory to all employees drawing less than Rs 15,000 monthly take home salary. For threshold limit of Rs 15,000, basic pay and dearness allowances are only considered. The employees drawing more than Ra:15,000 monthly take home salary have an option to opt out from the scheme at the time of joining to the establishment. Once you joined to the scheme it lasts till you have discontinued your service from the employer.

Perhaps it is very much evident if your monthly take home exceeds Rs:15,000 and opted for the EPF scheme, then the employer will add up both the contributions (employee and employer contribution towards EPF) in your CTC else he will contribute @ 12 per cent on the base amount of Rs 15,000.

What the Supreme Court decision says?

There is no dispute as regards the basic salary but amount of allowances paid by the employer have always been subject matter of litigation between the employers and the PF authorities. The matter seems to have been set to rest by a Supreme Court decision delivered on February 28, 2019. The Supreme Court while dealing with various petitions and appeals filed before it, considered the legal provisions, the purpose of the legislation on PF. It also considered some of its earlier decisions. It then laid down the “rule of universality” to the allowances to be considered for PF deduction. If an allowance is universally paid by various employers or is paid to all the employees of an establishment without any reference to the quantum of efforts put in by the employee or the quantum of the output, the allowance is to be considered as part of salary/dearness allowance and needs to be included for the purpose of PF deduction. So overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or work done in such employment shall stand excluded. Likewise, any allowance which may vary between individuals according to their efficiency and diligence will stand excluded from the term “basic wages” for this purpose.

The court held that any allowance which are essentially a part of the basic wage but camouflaged as an allowance to avoid deduction and contribution has to be treated as basic salary or dearness allowance for the purpose of PF deduction and contribution.

Implication of the decision

The decision will have wider implications depending on individual situation. For those employed in lower scale of emoluments where amount considered for PF contribution is lower than Rs 15,000 and who receive such universal allowance, not linked to efficiently, will get lower “in hand salary” as the employer is bound to take into account such allowances while deducting PF deduction. The employer also will have to shell out more money in the form of employer’s contribution. Such employees will be able to accumulate larger corpus in their provident fund account at the time of their retirement.

For employees receiving higher salary with allowances but contributing on threshold limit will not be affected by this Supreme Court decision. However, for employees in higher salary bracket, whose contribution is computed with reference to such higher amount of salary, the contribution toward provident fund will go up if they are in receipt of such allowance not considered hitherto for PF contribution. 

So in case your Cost to the Company (CTC) includes the employer’s contribution the amount of contribution is going to go up due to Supreme Court decision as discussed, your in hand will reduce substantially due to increase in deduction from your salary as well as your salary coming down to make for increased quantum of employer’s contribution.

18 different taxes in India!

When you pay taxes, the pool of money collected, is used by the government for meeting running expenses and contributing towards the growth of the nation. These funds are allocated to various sectors like infrastructure, education, defence etc. and help in the development of our country in terms of building infrastructure like laying roads, medicare, buying arms and ammunition etc. All the taxes levied by the government are classified either as Direct taxes or Indirect Taxes.

Direct Taxes:

Direct taxes are those that are directly paid to the government by an individual. For example: Income Tax, Capital Gains tax etc. These taxes cannot be transferred to another person. Any individual who is earning income is liable and has complete responsibility to pay his taxes to the government. Non-payment of tax or evasion of tax can incur heavy penalty.

Following are various types of direct taxes in India:

1. Income Tax:

It is a tax imposed by the Government on any individual who earns income in India whether he/she is resident or non-resident in this country. Income earned in 12 months contained in the period from 1st April to 31st March (commonly called Financial Year [FY]) is taken into account for purposes of calculating Income Tax. The tax paid by an individual depends on his/her annual income. Following is the tax slab for paying income tax for FY 2014-15 (AY 2015-16):
Tax Slab for FY 2014-15 (AY 2015-16) for Resident Indian below 60 years of age

Income Range (Rs.)	Tax (% of income)
Up to Rs. 2,50,000	Nil/ Tax Exempt
Rs.2,50,001 - Rs.5,00,000	10%
Rs.5,00,001 - Rs.10,00,000	20%
Above Rs.10,00,000	30%

Tax Slab for FY 2014-15 (AY 2015-16) for Senior Citizen (aged above 60 years and below 80 years)

Income Range (Rs.)	Tax (% of income)
Up to Rs. 3,00,000	Nil/ Tax Exempt
Rs.3,00,001 - Rs.5,00,000	10%
Rs.5,00,001 - Rs.10,00,000	20%
Above Rs.10,00,000	30%

Tax Slab for FY 2014-15 (AY 2015-16) for very Senior Citizen (aged above 80 years)

Income Range (Rs.)	Tax (% of income)
Up to Rs. 5,00,000	Nil/ Tax Exempt
Rs.5,00,001 - Rs.10,00,000	20%
Above Rs.10,00,000	30%

2. Corporate tax:

Corporate tax is the tax paid by companies or firms on the incomes they earn.

In other words, when Companies pay taxes under the Income tax Act, it is called “Corporate tax”. These are taxes against profits earned by businesses during a given taxable period.

Company	Rate of income tax
Domestic Company	30%
Foreign Company:
If total income consists of: (a) royalties received from Government or an Indian concern in pursuance of an agreement made with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.	50%
Other Income	40%

Note: Apart from the above mentioned income tax rate, a surcharge and education cess is also applicable depending on the net annual income of a company.

3. Capital Gains Tax:
If you sell any capital asset like property, shares, gold, debentures, mutual funds etc. at a profit, you are liable to pay capital gains tax on it. The capital gains tax rate depends on the holding time of an asset. The tax payer is liable to pay Long Term Capital Gain (LTCG) at the rate of 20% if he holds an asset for more than 3 years before selling (except a few like share, securities etc. where holding time required is 12 months).

Any gains on short-term capital asset (where holding time is less than 3 years/1 year) are taxed as regular income i.e. they are added to your total annual income and taxed as per tax slab applicable in your case. After including short-term capital gains to your total taxable income, if you fall in 30% tax bracket, it means that you are required to pay tax at the rate of 30% for all your taxable income including income from short-term capital gains.

4. Property Tax:

A property tax or a house tax, applied as per state rules, is paid on the value of the property. It is levied on the ownership of property and is usually accompanied by a number of service taxes, like water tax, lighting tax, sanitation tax etc. all using the same tax base. The owner of the property is liable to pay property tax every year. Vacant land is generally exempted from the assessment.

5. Gift Tax:

Gift exceeding Rs 50,000 is taxable unless it is received from any person who is a relative or on occasion of marriage or under will or by inheritance or in observation of death of the payer. The gift value is added to your income under the head “income from other sources” and is taxable.

6. Stamp Duty and Registration:

At the time of purchase of a property, you need to pay stamp duty and registration fees to the state government. Stamp Duty is a tax levied for the transaction performed by way of a document like Sale Deed, Conveyance Deed etc. The payment of proper Stamp duty on the transfer documents confers legality on them. Once the stamp duty is paid, the document has to be registered under the Indian Registration Act. The registration fee is paid over and above the stamp duty and vary in different states. 

7. Inheritance Tax:

An inheritance tax (also known as an estate tax or death duty) is a tax which arises on the death of an individual. It is a tax on the estate, or total value of the money and property, of a person who has died. India enforced estate duty from 1953 to 1985. Estate Duty Act, 1953 came into existence w.e.f. 15th October, 1953. Estate Duty on agricultural land was discontinued under the Estate Duty (Amendment) Act, 1984. The levy of Estate Duty in respect of property (other than agricultural land) passing on death occurring on or after 16th March, 1985, has also been abolished under the Estate Duty (Amendment) Act, 1985.

8. Professional Tax:

Professional Tax is a part of income tax which is charged by some of the state governments in India. Individual earning an income from salary or any one practising a profession such as chartered accountant, lawyer, doctor etc. are required to pay this professional tax. This tax is levied by following states in India: Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, and Madhya Pradesh. Although these states have different tax rates, maximum amount of Professional Tax that can be levied by any State is Rs. 2,500 only.

9. Dividend Distribution Tax (DDT):

This is a type of direct corporate tax which is paid by domestic companies on any amount declared, distributed or paid by way of dividend to its shareholders. The dividend distribution tax is 15% and is the final tax in respect of dividend declared. The shareholders are not required to pay further tax on their dividend income.

If you hold shares of any Indian company and receive dividends, your dividend income is tax free. The dividend declared by Indian companies is not taxable in the hands of the shareholders because tax on distributed profits have already been borne by the company.

10. Wealth Tax:

Wealth tax is a direct tax, which is charged on the net wealth of the assessee. It is a tax on the benefits derived from ownership of property. The tax is to be paid year after year on the same property on its market value, whether or not such property yields any income. Net wealth means all assets less loans taken to acquire those assets. Valuation date means 31st March of immediately preceding the assessment year. The net wealth so arrived at is charged to tax at the specified rates. Wealth tax is charged @ 1% of the amount by which the net wealth exceeds Rs. 15 Lakhs.

How does the Government collect Income Tax?

Taxes are collected by three means:
(a) Voluntary payment by persons into various designated Banks. For example Advance Tax and Self-Assessment Tax
(b) Taxes deducted at source (TDS) on your behalf from the payments receivable by you.
(c) Taxes collected at source (TCS) on your behalf at the time of spending. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.
Indirect Taxes:
An indirect tax is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the customer). It can be shifted by the taxpayer to someone else. This kind of tax increases the total amount you pay for buying a product. These taxes may be represented separately from the price of the item or may be shown together with the cost of the product itself. For example, the service tax paid on a food bill is shown separately, but tax paid on fuel is included in the final price of fuel. Service tax, Excise and customs duties are some examples of Indirect Taxes.
Some important indirect taxes imposed in India are as under:

11. Service Tax:

Service tax is a form of indirect tax applied on taxable services such as food and beverage, travel and recreation by the provider. The objective behind levying service tax is to reduce amount of taxation on manufacturing and trade without forcing the government to compromise on the revenue needs.

12. Sales Tax:

Sales Tax in India is a form of tax that is imposed by the Government on the sale or purchase of a particular commodity within the country. Sales Tax is imposed under both, Central Government (Central Sales Tax) and State Government (Sales Tax) Legislation. Generally, each State follows its own Sales Tax Act and levies tax at various rates. Apart from sales tax, certain States also imposes additional charges like works contracts tax, turnover tax and purchaser tax. Thus, Sales Tax acts as a major revenue-generator for the various State Governments. From 10th April, 2005, most of the States in India have supplemented sales tax with a new Value Added Tax (VAT).

13. Value Added Tax (VAT):

Value added tax (VAT) is a multi-point tax, which is applied at each stage of sale of a product where the final tax is borne by the last consumer. It is collected at the stage of manufacturing and each resale as well. It anticipates rebating of tax paid on inputs and purchases. VAT in India generally classified under the tax slabs are 0% for essential commodities, 1% on gold bars and expensive stones, 4% on industrial inputs, capital merchandise and commodities of mass consumption, and 12.5% on other items. Variable rates (State-dependent) are applicable for petroleum products, tobacco, liquor, etc.

14. Customs duty:

Customs Duty is the charge levied when goods are imported into the country, and is paid by the importer or exporter. Under the custom laws, various types of duties can be levied. These duties include Basic duty, anti-dumping duty, protective duty, export duty, National calamity contingency duty etc. The import duty is levied by the government to protect indigenous industries as well as to keep the imports to the minimum in the interests of securing the exchange rate of Indian currency.

15. Excise Duty:

Excise duty is an indirect tax that is paid by the manufacturer on items manufactured within the country and are meant for domestic consumption. In other words, excise duty is levied and collected on the goods or commodities manufactured in India. This duty is not payable on the goods exported out of India.

16. Security Transaction Tax (STT):

Securities transaction tax is levied on all transactions done on a stock exchange. STT is applicable on purchase or sale of equity shares, derivatives, equity oriented funds and equity oriented Mutual Funds. A person becomes investor after payment of STT at the time of selling securities (shares). STT was introduced to curb tax evasion on capital gains.

17. Entertainment Tax:

This tax is imposed by state government on all the financial transactions related to entertainment like cinema, DTH and cable T.V., amusement, horse race etc. Different tax rates are applicable for these services in various states.

18. Education Cess and Surcharge:

In India, the education cess and a surcharge is charged in addition to any other tax or duty. This tax is calculated on the tax amount due. The proceeds from education cess are used for improvement of education sector in India.
A surcharge is an additional levy on the tax that an individual pays. For example, a surcharge of 10% of the Income Tax is applicable, where total taxable income is more than Rs. 1 crore. If the tax on an income of Rs 1 crore is Rs 30 lacs and a surcharge of 10 per cent is levied, the total tax liability on the taxpayer would be Rs 33 lacs.

courtesy : bankbazaar

Soon in India Cardless/PINless Transactions at ATM

ICICI Launches Cardless Cash Transactions

Foreseeing tremendous growth potential in the use of electronic payments in the country, ICICI bank, taking a very innovative step in money transfer, introduced cardless cash transfer which allows customers to transfer money from their account to anyone in India with a mobile number. The recipient, even without a debit card can withdraw money from the many ICICI bank ATMs across the country. The 'Cardless Cash Withdrawal' facility can be initiated by any ICICI Bank savings account customer by logging into internet banking.

How ICICI’s Cashless ATM Transaction Works

The sender after registering the recipient’s name, mobile number and address, will get a four-digit verification code while the recipient receives a six digit reference code, over SMS. The recipient can withdraw cash from almost all ICICI Bank ATMs by entering the mobile number, cash amount along with the verification and reference code, within two days of the transaction. This service can also be used by the Bank’s account holders to withdraw cash from their own accounts without using a debit card.

SBI to Launch Card transactions without PINs

India’s biggest banking network, State Bank of India have received permissions from the RBI to launch contact-less debit cards which would enable customers to carry out transactions without entering a pin number. The SBI has requested the limit to be set at INR 2000 to make transactions such as buying a Metro or bus ticket, where the user can simply show the card and get in. Once this regulation is approved all of SBI cards will be NFC enabled for contact less transactions.

The bank is currently testing its NFC enabled cards in the Mumbai and Chennai metro stations.

SBI has also launched a multi-currency foreign travel card which would be available in dollar, pound, euro and the Singaporean dollar. A customer will have to pay one-time fee of Rs 100 to get the card and the minimum amount that can be loaded is USD 200.

The country that the user is settled in would be the base currency for this card and when there is no balance available in the account, the card switches to other buckets which hold the available balance.

SBI has currently authorized 100 branches across Mumbai, Delhi, Chennai and Bangalore to sell the card. The bank would later add other currencies such as Canadian dollar, Australian dollar, Japanese Yen and Saudi Riyal to this multi-currency card. The bank also proposes to make these cards contact-less in a month or so.

The Banking Ombudsman

The Banking Ombudsman Scheme was introduced by the RBI in 1995 as an alternative, expeditious and inexpensive forum to resolve complaints relating to deficiencies in banking services. It covers all commercial, regional rural and scheduled primary cooperative banks.

Banks are trusted establishments where you deposit your money for safekeeping. The account holder has the right to withdraw deposited funds and use the bank’s services associated with his account. During this time when the deposits are held with the bank, a customer builds a banking relationship and expects certain level of service from the banking institution. There can be times when these expectations are not met and may end in dispute. During such times, the Reserve Bank of India steps in as the middleman to mediate settlement.

What is Banking Ombudsman?

Ombudsman is a regulator who investigates complaints and mediates fair settlements. The Banking Ombudsman (BO) is an authority appointed by the Reserve Bank of India to address consumer grievances against the banks in India. Any customer who has a grievance against a bank or against a certain deficiency in the banking service can lodge a complaint with the Banking Ombudsman in whose jurisdiction the branch of the bank complained against is located. As on date, there are 15 Banking Ombudsmen in India with their offices located mostly in the State Capitals. All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.

The Banking Ombudsman (BO) has a legal power as it is a quasi-judicial authority. It has power to summon both the parties – bank and its customer and facilitate resolution of complaint within 30 days. The Banking Ombudsman may reject a complaint at any stage if it appears to the body that a complaint made is not on the grounds of complaint covered by BO or compensation sought from the BO is beyond Rs 10 lakh.

Banking Ombudsman Scheme, 2006

The Banking Ombudsman Scheme was launched under Section 35 A of the Banking Regulation Act, by RBI with effect from 1995 for resolution of complaints relating to certain services rendered by banks. Even though, this scheme was introduced in 1995, major revisions were made in the year 2002, 2006 and in Feb, 2009. The new scheme also addresses complaints related to online banking, debit cards, credit cards etc.

Types of Complaints addressed by Banking Ombudsman:

a)Deficiency in banking services (including Internet Banking):

The Banking Ombudsman can receive and consider any complaint relating to the following:

Non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;

Non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof;

Non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof;

Non-payment or delay in payment of inward remittances ;

Failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;

Non-adherence to prescribed working hours ;

Failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents;

Delays, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank ;

Complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters;

Refusal to open deposit accounts without any valid reason for refusal;

Levying of charges without adequate prior notice to the customer;

Non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations;

Non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees);

Refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;

Refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;

Forced closure of deposit accounts without due notice or without sufficient reason;

Refusal to close or delay in closing the accounts;

Non-adherence to the fair practices code as adopted by the bank or non-adherence to the provisions Banking Codes and Standards Board of India and as adopted by the bank ;

Non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services.

b) Deficiency in service with respect to loans and advances

Non-observance of Reserve Bank Directives on interest rates;

Delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications;

Non-acceptance of application for loans without furnishing valid reasons to the applicant; and

Non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank’s Commitment to Customers, as the case may be;

Non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time.

The Banking Ombudsman may also deal with such other matters as may be specified by the Reserve Bank from time to time.

Process of filing a complaint with the Banking Ombudsman:

1. Approach your Bank first: Before filing a complaint with Banking Ombudsman for your Bank, it is mandatory to first approach your Bank for redressal of grievance. If your bank does not reply within one month or rejects your complaint or if you are not satisfied with the reply given by the bank, then you can proceed with the process of filing a complaint with the Banking Ombudsman.

2. File complaint with BO by providing necessary details: You can simply write your complaint on a plain paper and send it to respective BO office i.e. under whose jurisdiction, the bank branch complained against is situated. For complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the customer is located. You can also file your complaint online through BO’s website or write an email to Banking Ombudsman. Your application should have the name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents, if any, the nature and extent of the loss caused to you (the complainant), the relief sought from the Banking Ombudsman and a declaration about the compliance of conditions, which are required to be complied with by you (i.e. the complainant).

3. BO tries to make an agreement: Once a complaint is received, the BO acts as middleman and tries to settle the complaint by agreement between the complainant and the bank (against which the complaint is filed) within one month of filing the complaint. During the process, if the terms of settlement (offered by the bank) are acceptable to the complainant, the BO passes an order as per the terms of settlement, which becomes binding on the bank and the complainant.

4. BO passes a judgement: If a complaint is not settled by an agreement within a period of one month, the BO proceeds to pass a further judgement. Before passing a judgement, the BO provides reasonable opportunity to the complainant and the bank, to present their case. It is up to the complainant to accept the decision in full and final settlement of his/her complaint or to reject it.

5. Appeal against BO’s judgement before the appellate authority: If one is not satisfied with the decision passed by the Banking Ombudsman, then he/she can approach the appellate authority against the BO’s decision within 30 days of the date of receipt of the judgement. Appellate Authority is vested with a Deputy Governor of the RBI. The bank also has the option to file an appeal before the appellate authority under the scheme.

6. Decision by appellate authority: The appellate authority may
i. Dismiss the appeal; or
ii. Allow the appeal and set aside the award; or
iii. Send the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper; or
iv. Modify the award and pass such directions as may be necessary to give effect to the modified award; or
v. Pass any other order as it may deem fit.

Source: RBI website

New rules for ATM usage in India from November/2014

Many people have a habit of withdrawing small amounts of money from the ATM to curb spending tendencies, but often end up with a high frequency of withdrawals. There are some others who are reluctant to use net banking or mobile banking facilities and depend on ATMs for checking account balance. If you happen to fall into any of these categories, it’s time to change your habit for good as RBI has issued new rules and guidelines limiting the number of times you use your ATM in a month. The new ATM transaction rules issued by the Reserve Bank of India is applicable to all ATM transactions including withdrawing cash, checking account balance or getting a mini account statement.

New RBI ATM Transaction Rules: 

According to the new RBI guidelines that come into effect from 1st November 2014, savings bank account holders in metropolitan cities would be allowed only three transactions from ATMs of other banks and five from the same bank in a month. For any ATM transaction above the stipulated limit, a transaction fee of Rs. 20 would be charged to the account holder. The new transaction fee is applicable only for people living in six metropolitan cities including Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata. People living in smaller towns and other centers would continue to enjoy five free monthly transactions per month from the ATM of other banks and the charges for them include Rs. 20 for each cash withdrawal and Rs 9 for non-cash transactions. Account holders of zero balance and other no-frills accounts in non metros are exempted from such transaction charges as of now.

What new Rules Mean for Bank Customers: 

The transaction fee has been increased from the earlier limit of Rs. 15 and the number of free transactions decreased from five to three for ATMs of other banks. Another important change in the new RBI guideline policy for ATM transaction fee is the fact that all ATM transactions including cash withdrawal, balance enquiry and changing of PIN number etc would be considered as an ATM transaction unlike in the past when balance enquiry was not considered a transaction as such!

A Case for Capping ATM Transaction Limit: 

While capping the charges for ATM usage may be an unpopular decision taken by the Reserve Bank of India, the limit in free transactions is justified by the apex body considering high expenses for managing ATMs across the country. With an increasing number of robbery attempts on various ATMs especially in isolated areas and in semi urban and rural areas, the banks have been forced to shell out funds to install a security mechanism apart from using CCTVs and manual security guards wherever possible.

With the Reserve Bank of India laying down strict security guidelines not to leave any ATM unmanned or without security cameras and other measures, banks are facing higher overheads to manage the ATMs.

The inter banking fee charged by various banks through ATM services will also increase since banks are using the fee as an incentive to install more number of ATM machines. While all the above reasons have played their role in the decision to some extent the game clincher has been Reserve Bank of India’s long term plan to promote the use of e-transfers and cashless transactions as much as possible to avoid the use of any black money in the system. The rise in ATM transaction fee is largely seen by financial experts as a sum culmination of all of the above factors.

Tips to bypass ATM Usage Limit: 

Since the new RBI rules on ATM transaction limits are likely to affect a vast majority of people, here are some tips individual account holders can use to avoid the fee hike.
1. Avoid cash transactions whenever possible:  If you are one of those individuals using cash transactions for every purchase and other financial transactions, it is time to explore other ways. The use of electronic funds transfer, credit and debit cards, cheques and demand drafts must be explored for financial transactions than using cash all the time.
2. Change the habit of withdrawing smaller amounts:  With an increase in the ATM transaction fee make sure you avoid withdrawing small multiple amounts.
3. Visit bank branch for cash withdrawals: If withdrawing large amount of cash, you are better off visiting the bank branch rather than the ATM. Visiting the bank branch may be slightly inconvenient,  but it is a good idea to visit the bank branch to avoid the ATM transaction fee. Having said that, if this type of transaction happens once in a while, no harm in paying the charge versus waiting for your turn at the bank, if that is indeed the case.
4.Use online banking for statement: A lot of people use ATMs for checking their account statement or to get a print of recent transactions or mini statement.  Since ATM transactions count the number of visits even if it was for checking of account statement and not cash withdrawal, it is a good idea to use the internet banking facility for checking of account statement rather than the ATM machine.

A comparison of ATM usage charges: 

For people living in metropolitan cities including Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata:

Bank	Transaction Type	Transaction Limit
Same Bank	• Cash Withdrawal	5 free transactions per month. Additional transaction will be charged at Rs. 20 per transaction.
	• Balance Enquiry
	• Change of PIN
	• Mini Statement
Different Bank	• Cash Withdrawal	3 free transactions per month. Additional transaction will be charged at Rs. 20 per transaction.
	• Balance Enquiry
	• Change of PIN
	• Mini Statement

For people living in non metropolitan cities, smaller towns and holders of zero balance and other no-frills accounts:

Bank	Transaction Type	Transaction Limit
Same Bank	• Cash Withdrawal	5 free transactions per month.Rs. 20 is applicable for each cash withdrawal and Rs 9 for non-cash transactions.
	• Balance Enquiry
	• Change of PIN
	• Mini Statement
Different Bank	• Cash Withdrawal	5 free transactions per month. Rs. 20 is applicable for each cash withdrawal and Rs 9 for non-cash transactions.charged at Rs. 20 per transaction.
	• Balance Enquiry
	• Change of PIN
	• Mini Statement

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