India Post to offer core banking services by 2011
 
From just delivering letters and money orders to offering small saving schemes like National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and monthly income schemes (MIS), India Post is gearing up to get additional business. The postal department will start offering core banking solutions across all 500 head post offices by 2011.
 
Mumbai-based NV Sutar, assistant post master general (savings bank) said, “The government has issued directives to the Department of Posts to implement core banking facilities in every post office in the country. The implementation of core banking facilities will be carried out in three phases across all head post offices.”
 
“With this, the customers investing in small savings schemes would be able to access their accounts from any place and branch. All post offices will be interlinked through a central server and we are processing the scanned data and signature verification on a war footing,” Sutar added.
 
There are over 200 million savings accounts across all the post offices in India. The core banking service will enable people living in far-flung places get access to banking services anywhere through these post offices, he said.
 
Till now small saving deposit schemes of post offices were restricted to the welfare programme of the government. Now the Indian postal department is also looking at offering insurance in rural areas. It also plans to offer debit cards to its account holders. So far the postal department has distributed the debit cards in some parts of the country which would be extended to other post offices by end of next fiscal, Sutar said.
-Vidyut Kumar Ta  [email protected]
 

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Prozone to earn Rs 40 crore-Rs 50 crore lease rental from Aurangabad mall
Prozone Enterprises (P) Ltd, a retail real estate development company and a wholly owned subsidiary of Provogue India, will be earning lease rental revenue of Rs 40 crore-Rs 50 crore per year from the first mall at Aurangabad, assuming that the lease rental is between 6%-10% of total annual revenue, according to industry sources. The project is built on8,30,000 sq ft area of retail space.
 
According to Nikhil Vora, managing director-research, IDFC SSKI Securities Ltd, “the mall will generate Rs 500 crore-Rs 600 crore of revenue per year.”
 
“The handovers of the stores will commence from beginning of 2010 and the occupation in the mall will start by July 2010,” said Nikhil Chaturvedi, managing director, Prozone Enterprises (P) Ltd.
 
The company is planning to build 50 Prozone shopping malls with an investment of $1 billion over the next five years, said Chaturvedi. The company is developing more than 12 million sq ft of modern retail space in India, primarily in tier-II cities such as Raipur, Jaipur, Indore, Mysore and Aurangabad.
 
The anchor tenants (Hypercity, Shoppers Stop, Globus, Westside, and Big Cinemas) are satisfied with the structure of the mall. “The structure is built up in a unique way keeping in mind tier 2 cities. I think it should do very well in these cities,” said B S Nagesh, vice-chairman, Shoppers Stop.
 
The company has already sold 80% of the stores in the mall. “After the success of their project at Aurangabad, the company will be soon be coming up with malls in Indore, Jaipur and other tier-II cities,” said Mr Chaturvedi.
 
 

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COMMENTS

imran khan

6 years ago

Superb, u gave a new look 2 aurangabad thanx.

Harshith

6 years ago

when will u finish the construction of prozone mall in mysore??????

Insurance honchos admit to rampant mis-selling
At the recently held CII Insurance Summit, industry leaders blatantly exposed the issue of mis-selling of insurance policies and gave insights into how and why this has been carrying on for years.

If you are a policy holder of a life or non-life insurance product, chances are that your policy needs have not correctly been met. The agent who so sweetly and subtly coerced you into signing that policy, has most probably, unknowingly or otherwise, sold you the wrong product. Mis-selling of policies is going on for a while but has assumed greater proportions as of late. This was the subject of intense discussion at a recent insurance summit organised by the Confederation of Indian Industry. Said T RRamchandran, CEO and MD of Aviva Life Insurance Company, “The rising instances of mis-selling across insurance categories are worrying. This is primarily because of financial illiteracy of advising agents.”

Concurs Nitish Asthana, Senior VP, Direct Distribution and Telcassurance, Bharti AXA Life Insurance, “Financial literacy in the distribution channel itself is the main cause of mis-selling. It leads to underinsurance and improper coverage for the insured. The problem lies in a lack of training on part of the employer for need-based policy selling.” He further added that inactivity of agents is another cause for concern. He said, “There are three million agents in the market currently. But only 20% of these are productive.”
 
Is there a way to curb this menace? According to Sanjiv Bajaj, joint MD, Bajaj Capital, the proposed 2.25% cap on insurer’s premium charges will help arrest mis-selling. He said, “We can’t control mis-selling by doing micro things. We have to do macro things like having a 2.25% cap on premium charges, which will make a lot of difference.” He attributed mis-selling to a lack of long-term relationship orientation with the customer. “Mis-selling is happening more at the employee level and not the agency level, as is the misunderstanding. This can only happen when there is one thing missing in the relationship, and that is relationship. If there is emphasis on having a relationship, then mis-selling cannot happen as the advising agent wants to thrive on the life-time value of the relationship.”

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COMMENTS

Dillip kumar swain

6 years ago

I APPRICIATE MR BHUPESH. FROM UNIT SALES MANAGER TO CEO WANT FAST MONEY , PROMOTION , MONTHLY TRIPS & FOREIGN TRIPS. THAT TO MAINLY BANKONG,MALASIA & PATTAYA

Bhupesh

7 years ago

Sanjiv Bajaj is correct in pointing out that limit on insurance premium will help arrest mis-selling .. it is not financial illiteracy of advising agents but greed of people and insurance companies' CEO who want make fast money .. by any means ..

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