ATMs will soon be as good as bank branches. Customers will be able to apply for credit cards and avail loans using these self-service machines. The Reserve Bank of India (RBI) allowed banks to extend all their banking products and services through their ATMs. So far, banks have been using ATMs as leads for loans, insurance and credit cards; no such transaction was concluded at the machine. Banks can now extend a loan and dispense the cash at the same machine.
The Securities and Exchange Board of India (SEBI) may reduce the total expense ratio—the fees charged by an asset management company (AMC)—for managing investors’ funds, according to a news report. Under the existing norms, the maximum expense that an equity scheme can charge is 2.5% (2.25% for debt funds). The rate is applicable in slabs and an AMC is allowed to charge 2.5% for the first Rs100 crore of assets under management (AUMs). For the next Rs300 crore, 2.25% can be charged, while AMCs can charge only 1.75% for AUMs beyond that.