Banking: Prashant Joshi

About three months earlier, I moved to Mumbai. I got my new residential address and mobile number updated across all banks I hold accounts with. However, one private bank with whom I have a savings account and a home loan account is giving me a lot of grief over address updation. The bank has updated the address for the loan account by accepting my rent agreement as proof. However, for the savings account they refuse to accept the same. And it has no explanation for this. Because of this I can't apply for a new debit card, which has expired and if applied will go to the old address. How do I get my work done?

According to RBI guidelines, a rent agreement indicating the address of the customer, duly registered with state government or similar registration authority, is a valid address proof. I suggest you meet your branch manager and explain the problem. I am sure he will be able to resolve this problem. In case you do not get a resolution, you can always approach the banking ombudsman with your complaint.

How is the bank rate different from the repo rate?
Bank rate and repo rate are two financial terms associated with borrowing money from a central bank. Bank rate is the rate at which RBI allows finance to commercial banks. An increase in bank rate signals an increase in the interest rate environment. Bank rates imply a long-term outlook on the interest rates and are an outcome of a long-term monetary policy. It is the bank rate based on which the commercial banks decide the lending rates to the customers.

Repo (repurchase) is the rate at which RBI lends short-term money to banks against securities. Currently, it is the key variable policy tool used by RBI.

When should I put money in a recurring deposit account and when should I choose a fixed deposit account?
The major differences between a fixed deposit and a recurring deposit is the amount to be invested and periodicity of investments that are:

(i) lump sum investment vs small regular investments, and

(ii) one-time vs regular instalments

Therefore, if a person wishes to invest a specific amount at regular intervals, he should opt for a recurring deposit and in case the choice is to invest a lump sum amount, he should opt for a fixed deposit account.

The views expressed are the expert's own. Send your queries to ourmoney@bsmail.in

Today, Prashant Joshi, MD & head, private & business clients (India), Deutsche Bank, answers your questions