DBC 2353 - Capital Gain Tax

 

The Banking Tutor 

Daily Banking Concept -  2353 

Capital Gain Tax 

Capital gain tax refers to the tax levied on the profit made from the sale of an asset, such as real estate, stocks, or other investments.

BTL 872 - DPDP Act and Banking

 

The Banking Tutor’s Lessons

BTL 872                                                                               21-02-2026

DPDP Act and Banking  

The Digital Personal Data Protection (DPDP) Act, 2023, fully operationalized by the DPDP Rules 2025 on 14 November 2025, establishes a strict framework for how banks in India handle customer data.

Banks are classified as Data Fiduciaries, making them legally responsible for the security and lawful processing of customer information like KYC details and financial history.

Key Compliance Mandates for Banks

Explicit Consent & Notice: Banks must obtain free, specific, and informed consent before processing data. Consent requests must be accompanied by clear notices in English or any of the 22 regional languages listed in the Constitution.

Legitimate Uses: Consent is not always required for "legitimate uses," such as fulfilling legal obligations (e.g., KYC under PMLA), responding to medical emergencies, or processing data of loan defaulters to assess assets and liabilities.

Data Minimisation & Erasure: Banks can only collect data necessary for a specific purpose and must delete it once that purpose is met, unless retention is required by other laws (like the Reserve Bank of India (RBI)'s 5-year KYC retention rule).

Breach Notification: In the event of a data breach, banks must notify the Data Protection Board (DPB) and all affected customers "without delay," typically within 72 hours.

Significant Data Fiduciary (SDF): Many banks will likely be designated as SDFs due to the volume of sensitive data they handle. This requires additional duties:

Appointing a dedicated Data Protection Officer (DPO) based in India.

Conducting periodic Data Protection Impact Assessments (DPIAs) and independent audits.

Interplay with Existing Banking Regulations

The DPDP Act adds a horizontal layer over existing rules from the RBI and CERT-In.

Conflict of Laws: If a conflict arises between the DPDP Act and a sector-specific law (like stricter RBI data localization norms), the sectoral regulation prevails.

Outsourcing: Banks remain ultimately accountable for data breaches caused by third-party processors (e.g., fintech partners, cloud providers), necessitating stricter vendor risk management and updated contracts.

Penalties for Non-Compliance

Non-compliance can result in massive financial penalties:

₹250 crore for failing to implement reasonable security safeguards to prevent breaches.

₹200 crore for failing to notify the DPB or individuals about a data breach.

Banks have an 18-month phased implementation period from November 2025 to achieve full compliance, with some core duties like consent notices and breach reporting taking effect sooner.

The Act applies to all financial institutions in India, covering digital data collected online or digitized offline.

Sekhar Pariti

+91 9440641014

DBC 2352 - Tertiary Industry

 

The Banking Tutor 

Daily Banking Concept -  2352 

Tertiary Industry 

Tertiary means Third in Order. The tertiary industry is the part of the economy that provides services rather than producing goods, and includes medical providers, educators, financial services, and personal services, among others.

 

The tertiary industry is a technical name for the services sector of the economy, which encompasses a wide range of businesses, including financial institutions, schools, hotels, and restaurants.

DBC 2351 - Dollar-Cost Averaging

 

The Banking Tutor 

Daily Banking Concept -  2351 

Dollar-Cost Averaging 

Dollar-cost averaging is the system of regularly buying a fixed dollar amount of a specific investment, regardless of the price.

DBC 2350 - Estate Planning

 

The Banking Tutor 

Daily Banking Concept -  2350 

Estate Planning 

Estate planning is the preparation of tasks that serves to manage an individual's asset base in the event of their incapacitation or death.

DBC 2349 - KLEMS

 

The Banking Tutor 

Daily Banking Concept -  2349 

KLEMS

 

The RBI KLEMS database is a detailed economic dataset from the Reserve Bank of India (RBI) that provides insights into India's industrial growth and productivity, focusing on five key inputs: Kapital, Labour, Energy, Materials, and Services (KLEMS) across 27 industries, aiding in analyzing economic performance and employment trends.

BTL 871 - CLEAN and SMART Banking

 

The Banking Tutor’s Lessons

BTL 871                                                                                18-02-2026

CLEAN and SMART Banking  

"CLEAN and SMART banking" refers to a  reform initiative for Public Sector Banks  known as the EASE (Enhanced Access and Service Excellence) program.

This framework aims to transform traditional institutions into data-driven, customer-centric by focusing on two core pillars – CLEAN Banking and SMART Banking.

"CLEAN" Banking: Institutional Integrity - The "Clean" component focuses on financial hygiene and transparency to restore trust in the banking system:

Clean Credit: Implementing rigorous, data-based credit appraisal processes to prevent bad loans from the start.

Leveraging Data: Moving away from subjective lending to analytics-driven decision-making.

Ensuring Accountability: Hardwiring IT solutions into systems to track performance and ensure responsibility at all levels.

NPA Recovery: Strengthening the resolution of Non-Performing Assets (NPAs) through transparent processes.

 

"SMART" Banking: Technological Excellence - The "Smart" component targets the customer experience through digital innovation:

Speedy  & Multi-channel reach: Ensuring 24/7 banking availability through digital channels and "Dial-a-loan" services. 

Accessible & Affordable: Using technology to reach the grassroots level, including micro-enterprises and rural areas, at lower costs.

Responsive: Utilizing AI-powered chatbots and predictive analytics to offer hyper-personalized financial advice and instant support.

Technologically Enhanced: Embedding advanced features like biometric authentication (fingerprint/facial recognition) and blockchain for secure, transparent transactions.

Sekhar Pariti

+91 9440641014