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RBI extended the time for NBFCs up to 31 March 2013 to ensure withdrawal of Non-CTS 2010 Standard compliant cheques and replace them with CTS-2010 Standard compliant cheques
New Delhi: Borrowers from non-banking finance companies (NBFCs) have now time till 31st March to replace their old system bank cheques with new ones with added security features for their equated monthly instalments (EMI) payments, as the Reserve Bank of India (RBI) has extended the deadline in this regard for them, reports PTI.
In a circular RBI said that it has been decided to extend the time for NBFCs up to 31 March 2013 "to ensure withdrawal of Non-CTS 2010 Standard compliant cheques and replace them with CTS-2010 Standard compliant cheques".
In a move to standardise and enhance security features on cheque leaflets, the central bank had asked all banks to migrate to 'CTS-2010' standard cheques by 31 December 2012, which was later extended till 31 March 2013.
In effect to this, NBFCs accepting cheque payments for future instalments from their customers were asked to get it replaced with the new standard cheques.
"However, it may be noted that the residual Non-CTS-2010 Standard compliant cheques that get presented in the clearing system beyond the extended period, will continue to be accepted for the clearing but will be cleared at less frequent intervals," the RBI circular added.
Cheque truncation system (CTS) 2010, with set of minimum security features would ensure uniformity across all cheque forms issued by banks in the country and also help presenting banks while scrutinising and recognising cheques of drawee banks in an image-based processing scenario, RBI had said.
Several developments in the cheque clearing process, namely growing use of multi-city and payable-at-par cheques at any branch of a bank, increasing popularity of speed clearing for local processing of outstation cheques and implementation of grid based CTS for image-based cheque processing, also led to this directive by RBI, it had said.
As of November, SBBJ's bulk deposits stood at 10% from 16.6% a year ago, a level that is much below what the government desired
Mumbai: State Bank of Bikaner & Jaipur (SBBJ), which is offering up to 0.25% discount to online loan applications, has said it has become the first public sector lender to bring down the bulk deposits level to 10%, reports PTI.
"As of November, our bulk deposits stood at 10%, a level that is much below what the government desired. This was 16.6% a year ago and 14.46% at the end of the September quarter," SBBJ managing director Shiva Kumar said.
Kumar also said the bank, which gets 65% of business from the home state of Rajasthan, is making a big online push to speed up service delivery. The bank's low-cost CASA deposits stand at 37%, he added.
"We are offering a 10 bps discount to home loan applications made online for any amount, while the discount is 25 bps (0.25%) for auto loans bought online if the amount sought is above Rs10 lakh," said Kumar.
"Online retail loans are gradually gaining traction. Home loans and auto loans are sanctioned in 20 minutes and 10 minutes, respectively."
If all documents are in place, the turnaround time for disbursement is three days for home loans, and 24 hours for auto loans. In October, the bank received 167 car loan applications and 57 home loan applications online.
Bulk deposits are usually term deposits above Rs1 crore, with a maturity of less than a year.
On 19th July this year, the finance ministry had issued a circular to the state-run banks asking them to cap bulk deposits at 15% -- 10% of normal bulk deposits and 5% of certificates of deposits (CDs).
Financial Services secretary DK Mittal had said that large amount of bulk deposits is a risk to the banking system.
The move was aimed at improving PSB's asset-liability management. It also followed rush for these high-cost deposits, especially by public sector lenders, during the January-March quarter. It had resulted in short-term rates shooting through the roof.
However, banks say putting a ceiling on bulk deposits will reduce their flexibility to cut retail fixed deposit rates in a declining rate cycle which will mean pressure on net interest margins.