Important Updated parts of JAIIB notes 2020

Important Updated parts of JAIIB notes 2020

Hello Bankers,
You guys already know that banking terms, rules and regulations related to banking workings, transactions, etc. change from time to time. Banking related rules and regulations are not fixed. So, in the JAIIB study materials and notes, some pieces of information have been updated. In this article, we are providing all the details of the changes done in the JAIIB notes. The updated part of the notes is being provided here to keep you updated and to prepare better for your upcoming JAIIB examination.

JAIIB Update file 

♦Paper 1: Principles and Practice of Banking

Module-A

• Exposure ceiling = Single borrower 15%. Group borrower 40%. Replaced by Large Exposure Framework w.e.f. 1.4.19. New limit is 20% of Tier-1 capital for single borrower and 25% for group borrower.
• No. of general insurance companies 34 (old 33). Reinsurers 1 (old 2)
• Note: NABARD and NHB further. Both were the subsidiaries of RBI before 26 Feb 2019.
• • The maximum amount insured by DICGC is 5 lakh earlier Rs.100000

Module-B

• TDS eligible amount = Rs.40000 (50000 for senior citizens)- earlier Rs.10000
• TDS on rent payment = Rs.2.40 lac (ealirer 1.80 lac)
• No. of partners in P-Ship as per Govt. notification = Max 50. As per Act 100
• Differential rate of interest on FD : Amount above Rs.2 cr (in video it is Rs.1 cr)
• NRE Rupee account – Max maturity bank discretion
• Depositors’ Education & Awareness Fund : ROI 3.5% (instead of 4%)
• Priority sector – Target in NRLM for SC/ST 50%, disabled 3%, minorities 15%
• NULM in priority sector : No. of members in group min 3 (instead of 5)
• Repayment period in NRLM = 1st dose = 12-18 M 2nd dose = 18-24 M (3rd and 4th same)
• Collateral security in crop/agriculture loans = Rs.1.60 lac (earlier 1 lac)
• Bank loans to registered NBFCs (other than MFIs) for on-lending to Agriculture (Term Loans) up to Rs.10 lakhs; Micro and Small Enterprises up to Rs.20 lakh and for housing finance companies up to Rs.20 lakh per borrower, to be classified as priority sector lending.
• TDS on cash withdrawal above Rs.1 cr in a FY @ 2%
• TDS rates during FY 2020-21 given in the Video should be reduced by 25%. Example, if TDS rate is 10%, it should be treated as 7.5%
• New MSME definition: MICRO – Investment max Rs.1 cr and Annual sales max Rs.5 cr, SMALL – Investment max Rs.10 cr and Sales max Rs.50 cr, MEDIUM – Investment max Rs.50 cr and Sales max Rs.250 cr For classification of MSME, valuation of P & M and equipment shall be based on written down value at end of previous year

Module-C:

• NEFT – No. of batched 48. Time = 24 x 7 (from Dec 2019)
•  RTGS timing – Customer transactions = 7 am to 6 pm. Bank transactions = 7 am to 7.45 pm  (from Dec 2020 it is proposed to be round the clock)

Other Changes:

• CRR reduced from 4% to 3% of NDTL w.e.f. 28.03.20
• In Basel 3, implementation of CCB extended from 31.03.20 to 30.09.20 (further changed to 1.4.2021).
• In Basel 3, implementation of NSFR extended from 1.4.20 to 1.10.20 (further changed to 1.4.2021)

Paper 3: Legal and Regulatory Aspects of Banking

Module-A

•  No. of nationalized banks w.e.f. 1.4.2020 : 10
•  No. of RRBs = 43 (as per List at RBI Website)

Module-B

• Registration of charge by company – For delay, ROC can permit additional time of 30 days + 60 days (earlier it was total 270 days)

Module-C

• NRI for income tax purpose = A person who stays abroad min 245 days in a FY.
•  TDS on rent payments applicable = Rs.2.40 lac/FY
• TDS on FD/RD interest > 40000/FY (50000 in case of senior citizens)
• Age of Presiding Officer in DRT = max 65 years (Tenor 3 years)
• Age of Chairperson of DRT = max 67 years (Tenor 5 years)
• Eligible amount for DRT = 20 lac (earlier it was 10 lac)
• Registration of charges with CERSAI – 30 days time limit discontinued w.e.f. 24.01.20

Other Changes

• All Acts where it is mentioned that ‘not applicable in J & K’, are now applicable in J & K also after J&K became UT.

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