Banking and Financial News – 06 May 2014

SC orders Sahara chief Subrata Roy to remain in jail (The Hindu) - The Supreme Court on Tuesday rejected the plea by Sahara chief Subrata Roy challenging its March 4 order sending him to judicial custody for not complying the order to return investors money by routing it through SEBI. Roy and two directors were sent to judicial custody for the failure of group’s two companies’ SIRECL and SHICL to comply with its order to return investors’ Rs. 24,000 crore that they had collected through Optionally Fully Convertible Debentures (OFCDs).

RBI permits minors over 10 years to operate bank accounts (dna) – RBI has issued necessary guidelines with a view to promote financial inclusion and bring uniformity in opening of such accounts in banks. All minors can now open SB / Fixed / Recurring accounts through natural / legally appointed guardian. Minors over 10 years can open & operate these accounts independently. Banks can fix limits regarding age & amounts up to which independent operation can be allowed and also decide on the minimum documentation required for opening the accounts. Banks are free to offer internet banking, ATM / debit card, cheque book facility etc. subject to safeguards. Accounts are not allowed to be overdrawn. On attaining majority, minor would be required to confirm the balance in the account.

Courtesy : The Hindu , dna