Don’t insist on minimum balance for basic savings bank deposit account says RBI

At present, minimum balance in the savings accounts varies from Rs500 to Rs25,000, depending upon the nature of the accounts

New Delhi: The Reserve Bank has advised banks to offer all customers a 'basic savings bank deposit accounts' which will not insist on a minimum balance, reports PTI.

“Banks are being advised to offer a 'basic savings bank deposit account' with certain minimum common facilities and without the requirement of a minimum balance to all their customers,” the RBI said in its credit policy.

However, the central bank did not disclose more about the 'basic savings bank deposit account' in its policy statement.

As far as customers' savings accounts in banks are concerned, at present, minimum balance in the savings accounts varies from Rs500 to Rs25,000, depending upon the nature of the accounts. It is higher in case of most private and foreign banks.

RBI has also advised banks to initiate steps to allot a unique customer identification code (UCIC) number to all their customers.

RBI said financial inclusion has been high on its agenda.

“The nomenclature of the account in this manner has tended to signify that these accounts are opened more with a view to indicating achievement of numerical targets under the financial inclusion plans,” it added.


Tata Capital partners with Japanese Century Tokyo for equipment leasing in India

Tata Capital with Century Tokyo Leasing would target rapidly growing equipment leasing services market in India

Mumbai: Tata Capital said it signed a letter of intent (LoI) with Japanese Century Tokyo Leasing Corp (CTLC) for collaboration on leasing business in India. CTLC is a leasing business company allied with the Mizuho Financial Group, Tata Capital said in a press release.

“The LoI will help Tata Capital combine its business financing capabilities and CTLC’s strong technical know-how in the equipment leasing space to target the rapidly growing equipment leasing services market in India. It will provide leasing solutions for financing of equipment ranging from large machinery such as construction equipment and power generators, to medical and IT equipment. Both the companies will also explore providing financial assistance and advisory services to several Japanese Joint Venture companies In India,” the company said.

The equipment leasing market in India is presently estimated to be an approximate Rs20,000 crore market and is expected to grow at an annual rate of 25%-30% over the next few years. The backdrop of increased infrastructure spending in India, which is likely to double to $1 trillion under the 12th Five Year Plan, makes leasing a highly attractive market for Tata Capital and CTLC to jointly tap into.

Praveen P Kadle, managing director and CEO, Tata Capital, said “Globally leasing and renting are the principal forms of asset creation. In India, the share of equipment leasing in asset building is only 5%-6%. This signifies a huge untapped potential in the segment.”

“Tata Capital’s vast network and experience will help us service the rapidly growing infrastructure sector in India, and also provide support to Japanese companies that are looking to expand their business presence to India”, said Shunichi Asada, president and CEO, CTLC, in the release.


Coke posts 20% sales volume growth in India during Jan-March

Coca Cola said its sparkling beverages in India grew by 19% during the January-March quarter while its worldwide volume grew 5%

New Delhi: Beverages major Coca Cola Company reported over 20% growth in sales in volume terms in India for the first quarter (January-March 2012) on the back of strong demand, reports PTI.

The company, which announced its global earnings for the first quarter, said its sparkling beverages grew by 19% during the quarter in India. The growth was led by brand Coca-Cola, which grew 27%, it added.

The worldwide volume growth for the first quarter was 5% and was well-balanced around the world, Coca Cola Co said in a statement.

In the key emerging markets such as India, China and Brazil the company saw growth of 20%, 9% and 4% respectively.

On the other hand, in developed markets North America saw a growth of 2%, Japan and Germany witnessed growth 3% each.

In the first quarter, the company's net income stood at $2.05 billion, up 8% compared to $1.9 billion in the same period previous year. Net revenue stood at $11.14 billion as compared to $10.51 billion, up 6% from the same quarter last year.

Commenting on the company's performance Coca-Cola Co chairman and chief executive officer Muhtar Kent said despite a continued mixed global environment, the firm was able to achieve broad-based volume and value share gains in non-alcoholic ready to-drink beverages globally.


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