Yes Bank Hikes FD Premature Withdrawal Penalty

Yes Bank has stated on its website that it will impose a penalty charge for premature withdrawals for fixed deposits under 181 days.

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India Post Warns Customers Of Fraud Websites Claiming To Offer Subsidies

The Department of Post (DoP) has warned its customers by sending SMSs asking them not to fall prey for fraudulent claims offering government...

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SBI Warns About Digital Security: Shares Guidelines for Customers

State Bank of India (SBI) has asked customers to be safe and secure when doing online transactions.

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RBI Imposes Penalties on Axis Bank, IDBI Bank

Reserve Bank of India on Friday said it has imposed a penalty of Rs 93 lakh on Axis Bank for various violations, including those related to KYC...

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RBI Investigating Complaints Against BNPL Players

The Reserve Bank of India on Friday said that it was looking at a series of complaints against digital lenders, where customers found that they were...

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RBI Holds Repo Rate, Cuts Growth, Raises Inflation Forecast

The Reserve Bank of India’s (RBI) monetary policy committee (MPC) kept the repo rate unchanged at 4%, for the 11th consecutive time, while...

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RBI Releases Booklet on Modus Operandi of Financial Frauds

The Reserve Bank of India has published a booklet titled BE(A)WARE – Be Aware and Beware! to educate the customers on how to remain safe from...

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Banking, Postal Services May Be Hit As Staff Unions Plan To Go On Strike On 28th & 29th March

The country's largest lender State Bank of India has said banking services may get impacted to an extent as various employees' unions have called for...

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RBI Lifts All Restrictions On HDFC Bank's New Digital Launches

The Reserve Bank of India (RBI) has lifted the restrictions imposed on HDFC Bank regarding its business generating activities planned under the...

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RBI Warns People Against Online Buying Of Old Coins, Notes

The Reserve Bank of India (RBI) has cautioned the public against falling prey to offers to buy or sell old banknotes and coins.

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Changes in Our Business Model
 
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
 
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder