BANKS IN NEWS
In 2007-08, the 15 banking ombudsmen received around 55,000 complaints of which 49,100 i.e. 81 percent were cleared. Out of the total number of cases 36 percent complaints were rejected and 53 percent cases disposed of through mutual settlement or an award. The main reason for rejection was that complainants had approached the ombudsman before asking the bank concerned to address the grievance. Thus 40 percent of the cases rejected fell in this category, while another 16 percent cases were made without sufficient cause. (BS 230209)
Banks are looking towards micro finance as part of direct lending. Yes Bank is doing direct lending to individuals while banks like SBI and Union Bank of India are lending to self help groups. Yes Bank has 3 micro finance branches in Mumbai’s Chembur, Thane and Worli areas. It has so far covered around 2,500 borrowers and has given loans upto Rs 50,000 to be repaid in one year. (BS 230209)
SBI announced a limited period offer to disburse auto loans for which interest rates would be frozen at 10 percent for one year. The scheme applies to all auto loans disbursed upto May 31 and interest rates will revert to the applicable rate after June 1 next year. The bank would offer loans for a seven year period with interest calculated on daily outstanding balance. (BS 210209)
ICICI Bank lost more than Rs 11 crore due to over 8,000 cases of credit card frauds last year. A total of 12,959 such cases were reported during last year in which banks lost Rs 36.54 crores. No cases were reported by IDBI Bank, Canara Bank and Indian Overseas Bank related to credit card frauds last year.(BS 180209)
Standard Chartered Bank has joined National Financial Switch NFS shared ATM network which will allow its customers to access funds from over 30,000 ATMs across the country. The NFS aims to connect all banks to a common switch thus allowing sharing of ATMs by banks. (BL 210209)
SBI has been appointed as the sole booking agent for sale of Tata’s Nano car as per SBI’s spokesperson. (FE 200209)

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--Market for card based point of sales is currently valued around Rs 32 crores and is expected to grow at a compounded annual growth rate of 18% to touch about Rs 48 crores by 2012. In 2002, the card based POS terminal penetration stood at 0.3%( i.e for every 311 retail shops there was one card based POS terminal). This penetration is expected to increase to about 4.6% by 2012. This means that Indian retail would have as many as 126,000 card based terminals by then , which is now about 65,000.

--Parliament enacted the Payment and Settlement Systems Act in 2007 to regulate the payment and settlement systems as there are many unregulated and unauthorized payment systems.

--Passive gold funds are exchange traded funds that passively track gold prices. Active gold funds invest in shares of companies that are involved in gold mining. Gold funds provide investors an opportunity to diversify from equity or debt asset class.

--Companies will have to pay a penalty for offences such as misstatement of facts in the prospectus or fraudulent luring of investors at the time of IPOs according to the new companies bill.

--7 Indian micro finance companies have been ranked among world’s top 50 for 2008.

BANKS IN NEWS

Banks across the country have lost Rs 6.57 crores to internet frauds in 233 incidents of cyber crime during the last fiscal. (BS 170209)

Indian Overseas Bank has introduced a new product-Commercial Cash Credit against Jewellery. The product is aimed at meeting the financial needs of small business, professionals and self employed who can utilize their gold jewellery of 20 ct and 22 ct. to get cash credit facility upto Rs 10 lakh and minimum of Rs 50,000/-. The rate of interest will be 12.75% fixed for cash credit. (BS 170209)

SBI has introduced a point of sale POS machine comprising biometric details of account holders which would go to villages where the bank customers can withdraw or deposit funds under the finger print based method. This replaces the smart cards which have a magnetic strip that is used for swiping at the POS machine before any transaction. (BS170209)

SBT has launched special loan scheme for micro, small and medium enterprises at an interest rate of 8 percent. The concessional rate of interest will be available for existing units with limits upto Rs 10 crores. Term loan repayable within 5 years is provided for purchase of equipments, tools and generator sets. Working capital demand loans upto 20 percent of the limits enjoyed by MSME units is also available. Both the facilities are available at 8% for the first 12 months after which normal rates as per activity and industry would be charged. (BL 090209)

Syndicate Bank collects Rs 6 crores everyday under their Pigmy Deposit Scheme for which 4,500 agents work. The scheme was relaunched in 2007 under which the bank also extends small loans upto Rs 2 lakhs. As part of its financial literacy programme the bank has 8 financial literacy centres in various parts of the country. It has opened 32 lakh no frills account of which nearly 4.5 lakh accounts have zero balance.(BL100209)

BANKS IN NEWS

Complaints regarding debit of accounts even though the ATMs have not disbursed cash for various reasons have attracted the attention of RBI. RBI has concluded that delay in settlement of complaints is not justified and moreover it would discourage customers from using ATMs. It was decided that banks shall reimburse to the customers amounts wrongly debited within a maximum period of 12 days from the date of receipt of customer complaint.