Punjab National Bank has cut interest on its savings accounts. Now the interest rates have been reduced from 2.75% to 2.70% p.a. for bank accounts with balance less than Rs 10 lakh. On the other hand, you will get 2.75% annual interest on balance between Rs 10 lakh to Rs 500 crore. It has also been reduced by 0.05%. The new rates have come into effect from 4 April 2022.
PNB has implemented Positive Pay System from 4th April 2022. Verification will be necessary for check payment from April 4. These changes have been made to make check payment safe and prevent bank fraud. Positive Pay System Confirmation will be mandatory if customers issue checks of Rs 10 lakh and above through bank branch or digital channel. Customers have to provide account number, check number, check alpha, check date, check amount and beneficiary name.
Under Section 80TTA of the Income Tax Act, income up to Rs 10,000 per annum from interest is tax-free in the case of savings account of a bank/co-operative society/post office. This benefit is available to a person below 60 years of age or HUF (Joint Hindu Family). Whereas for senior citizens, this exemption is 50 thousand rupees. TDS is deducted if the income exceeds this.