MONEY & BANKING


According to the ICICI Bank chairman interest rate is hurting the common man and that's what is translating into lack of demand and a pressure in terms of the corporates New Delhi: High interest rate is hurting the common man and the Reserve Bank of India (RBI) should cut interest rate...

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In dollar terms, Punjab National Bank has lowered the FCNR deposit rates to 2.55% from 2.63% for deposits of maturity of two years and less than three years   New Delhi: Punjab National Bank revised its deposit rates downwards on Foreign Currency Non-Resident (FCNR) accounts with...

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Under the credit line, medium and long-term credit will be provided through the ICICI Bank to Indian importers purchasing renewable energy equipment manufactured in Japan   Mumbai: The Japan Bank for International Cooperation (JBIC) on Monday said it has entered into an agreement with...

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Moneylife Digital Team 29 June 2012
 The action by the apex bank should serve as a pointer to other banks—big and small—that charge excessive service charges The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs2 lakh on the Bundi Urban Co-operative Bank located at  Bundi in Rajasthan. According to a press...

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SBI chairman Pratip Chaudhuri said that the bank cut interest rates for exporters by 50 bps, effective 23rd June. The move comes within days of the RBI increasing the export refinancing limits of banks Mumbai: State Bank of India, the country's largest lender, has cut interest rate on...

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Ramesh S Arunachalam Ramesh S Arunachalam 25 June 2012
With the ongoing bids for becoming BCs approaching near zero percent, the boards of the banks should be made responsible for any outsourcing done by their respective banks through the common BC The ongoing bids for becoming bank business correspondent (BC) in 20 clusters across India is...

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Aditi Jhunjhunwala 22 June 2012
As per RBI guidelines notified on 20th June, only big business houses and corporates would venture into this area. However, these entities need to ensure the safety of the customers and public at large The Reserve Bank of India (RBI) had come up with draft White Label ATMs (WLAs)...

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Ramesh S Arunachalam Ramesh S Arunachalam 21 June 2012
Client-level controls assumes great importance in the common BC model, as without these banks and BCs could lose control of their operations and be exposed to significant costs and risks If there was one major learning (at least for me) from the 2010 Andhra Pradesh (AP) and Indian...

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Fitch said while banks continue to have reasonable customer deposit base, domestic franchises and adequate capital, the NBFCs lack the funding advantage, which puts them more at risk during times of increased market volatility   New Delhi: Ratings agency Fitch on Wednesday cut credit...

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Moneylife Digital Team 19 June 2012
The SIDBI (Amendment) Bill, 2012, would streamline procedure for loan recovery and also seek to confer power upon the SIDBI board to specify investment limit for small units   The Small Industries Development Bank of India (SIDBI) will be able to take speedier action against...

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After a survey of over 3,000 SMEs on their funding patterns, CRISIL has found that 53% of them met their funding needs through promoters' funds and personal loans in FY11   Mumbai: Rating agency CRISIL on Tuesday said a large majority of small and medium enterprise (SME) promoters -...

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Nationalised banks and regional rural banks conceded to chief minister Prithviraj Chavan's demand for appointing operational credit societies and other institutions as bank business correspondents   Mumbai: To facilitate flow of pre-monsoon credit to farmers in seven districts in...

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Ramesh S Arunachalam Ramesh S Arunachalam 16 June 2012
The business correspondent model to financial inclusion can work, but since it transfers various types of risk, responsibility and management compliance to third parties, it requires appropriate regulation and supervision   With the ongoing bidding for the whole of India, the business...

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Ramesh S Arunachalam Ramesh S Arunachalam 15 June 2012
Winning bids for BC model is at such low prices that it will either fail or service levels will be pathetic. Let’s hope regulators would strictly monitor what is happening on the ground   Something strange is happening in the financial inclusion and business correspondent (BC) space...

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The funds of about Rs12,740 crore do not indicate towards the quantum of the much-debated alleged black money held by Indians in the safe havens of Switzerland   New Delhi: Switzerland on Thursday said the quantum of money held by Indians in Swiss banks stood at 2.18 billion Swiss...

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The Department of Financial Services has been overactive in issuing directives. Worse, DFS is resorting to brazen ways of dictating to PSBs to sponsor their proposals to the board and get them approved Notwithstanding the fact of substantial private shareholding in PSBs and the...

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The government wants to hold 51% is PSBs and is inflexible about it. It will soon find out the flip side to this, when asked to put in capital to either maintain this stake or force banks to give up growth   The criticality of operational flexibility and functional autonomy for public...

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Cabinet approved the release of 50% share of the central government for recapitalisation of the remaining 24 RRBs to improve their capital to risk weighted assets ratio   New Delhi: The Indian government on Thursday approved Rs632 crore capital infusion in cash-starved regional rural...

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Due to continued weakness in domestic demand and moderate core inflation Nomura expects a 25 basis points cut at the next RBI policy meeting on 18 June 2012   Brokerage and research firm Nomura has said that there will be an additional 50 basis points cut in repo rate in 2012 (25 basis...

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Ramesh S Arunachalam Ramesh S Arunachalam 04 June 2012
Banks needs to avoid appointing all and sundry as their business correspondents, just to meet internal or policy targets   The government in India has adopted a very important strategy to try and achieve financial inclusion, using business correspondents (BC) to serve and service...

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