Banking: Prashant Joshi

With base rate replacing the prime lending rate (PLR), how often will my home loan rate be revised? My bank has been asking me to shift to the base rate. Should I go for it? What do I stand to lose by sticking to PLR?
Base rate is in initial stages of implementation and banks have been allowed to change the methodology for determining the rate any time up to December-end. The frequency of the review is at least once a quarter. You should expect revision in floating rates accordingly. You can take an informed call on shifting once the mechanism stabilises. However, all new loans are referenced to the base rate of the bank concerned.

I (60) took a home loan with my son (30) five years ago. Also, I took a car loan more than an year ago on the name of my wife (54). Due to a financial crisis, my son could not continue to pay the home loan, which I am repaying alone. Also, my wife quit her job due to poor health. The total monthly loan repayment is Rs 40,000. I will retire in five months. Is it possible to renegotiate a lower instalment for both the loans and increase their tenures? If yes, what are the conditions? If no, what are the other options?
You can request your bank to increase the tenures, citing your situation. Chances are the bank will accommodate your request, though this will be governed by your repayment history and the terms prescribed by the bank. The other option is to prepay or partly-prepay your home loan, and request the bank to reduce your equated monthly instalment.

I want to open a bank account for my domestic maid, but she has no permanent address or identity proof. Is it possible to open an account for her? How can her requirement for these documents be circumvented?
Identity and address proofs are a must for opening a bank account. However, the Reserve Bank of India has allowed banks to consider opening accounts of those belonging to the low-income group even if they cannot produce these documents. In this case, another account-holder, who has been subjected to full know-your-customer procedure, can be an introducer.

The introducer’s account should be at least six months old and must show satisfactory transactions. The photograph of the person who proposes to open an account along with the address needs to be certified by the introducer. The balance should not exceed Rs 50,000 in all accounts of the person taken together, and total credit in all accounts should be Rs 1,00,000 or below in a year.

The writer is MD & head, private & business clients (India), Deutsche Bank. Send your queries to yourmoney@bsmail.in