Standard Chartered Bank announced launch of ‘India Consortium Project’ to provide preventive eye care to the rural poor. Under the project the bank will open 40 vision centres across 6 states over three years. These are UP, Haryana, Uttaranchal, Tamil Nadu,Delhi and MP. It has already benefited nearly 2 million people in India through curative eye care since 2003.(BL090409)
Monday, April 27, 2009
From 1st April 2010 the balance in savings bank
From 1st April 2010 the balance in savings bank accounts will earn interest on a daily basis following RBI’s decision to implement new interest calculation methods for such accounts. At present banks calculate interest on SB accounts on the minimum balances held during the period from the tenth day to the last day of the month. This change is likely to benefit the average salaried class and pensioners. (BL220409)
RBI has done away with the requirement
RBI has done away with the requirement of prior regulatory approval for setting up offsite ATMs. It is felt that the move would allow banks to expand their ATM networks more easily and thereby their reach of banking. (BL220409)
RBI has cut the repo rate and reverse
RBI has cut the repo rate and reverse repo rates by 25 basis points. The reverse repo rate is now 3.25% and the repo rate is 4.75%. RBI has indicated that the concept of BPLR has lost its relevance as a reference rate and would review the present system to make credit pricing more transparent. (BL220409)
Tuesday, April 14, 2009
According to National Housing Bank sources
According to National Housing Bank sources barely 2,800 accounts amounting to Rs 550 crores had been sanctioned during the 2 years till December 2008 under the reverse mortgage loan scheme for senior citizens.(BT020409)
Bank of India is planning to double the number of
Bank of India is planning to double the number of its ATMs across India during the current fiscal. The bank which has around 500 ATMs will add 500 more during 2009-10 according to a senior official of the bank. (TOI120409)
State Bank of Hyderabad will recruit over 2,000
State Bank of Hyderabad will recruit over 2,000 clerical and supervisory staff soon to support its expansion plans. The bank will add 170 new branches shortly to its present strength. (BL110409)
SBI has extended till 30th September 2009
SBI has extended till 30th September 2009 the facility whereby its existing SME customers can avail themselves of term loans as well as 20% additional working capital at 8% concessional rate of interest. For new SME customers with loan requirements upto Rs 5 lacs the new rate is 8% and for those whose requirements are above Rs 5 lacs but less than Rs 25 lacs the rate offered is 10%. However the loan should be guaranteed under the Credit Guarantee Trust Fund for Micro and Small Enterprises. (BL120409)
Bank of India is planning
Bank of India is planning to implement the branchless banking model in 48 districts in the country after Raigad district in Maharashtra. More than 46,000 households have been provided with biometric smart cards in Raigad where business correspondents visit the households of rural customers to provide bankng services. The bank has opened more than 17 lac savings bank no frills account. (BL130409)
Thursday, April 9, 2009
Banks Loans and Advances
Banks Loans and Advances
Banks are providing credit facilities in multiple ways according to the purpose of the loan and the security that is offered by the customer. The end use of the loan is important as banks funds are meant to be productively employed in order that the borrower is able to repay the amount of loan with interest. For this to happen the borrower should either generate surplus funds by utilizing the loan for profitable purpose or he should have sufficient repaying capacity as in case of personal loans,consumer loans, travel loans, credit card usage etc. It must be remembered that loans need to repaid as only then can the funds be recycled for further use or else the bank loans which are its assets would not be able to pay its liabilities which are the bank deposits. If such a situation arises and persists then the failure /collapse of the bank is inevitable.
Bank loans and advances can be of the following types—
Overdrafts /loans against Fixed deposits, Recurring deposits, Post office National Savings Certificates, LIC policies, Stocks of reputed listed companies: a fixed percentage of the face value/ surrender value of the security is allowed as overdraft which can be a revolving facility or loan to be repaid before maturity of the security in question subject to execution of documents as prescribed by the bank. The security has to be pledged to the bank for availing the loan. For loans against deposits the interest charged on the loan is linked to the deposit rate whereas in case of others the overdraft rate is generally applicable.
Personal loans, Consumer loans, Travel loans etc are part of retail loans promoted by banks to customers who have the repaying capacity based on their monthly income. The interest rates for such loans are comparatively higher as it is generally unsecured. Unsecured loans are those where the bank does not have any security for the loan given. In the event of non payment by the borrower the prospects of recovery become that much difficult.
Automobile loans, Home loans are given to acquire two/three wheelers, cars and residential property respectively. These are secured loans as the automobile is hypothecated to the bank and the property is mortgaged. They are released only when the respective loan account is adjusted in full with interest. The respective interest rates are reasonable in view of the security and also the fact that the industry/economy needs to be pushed. While auto loans can stretch upto seven years, home loans can be availed in certain cases upto 30 years also. There is considerable competition among banks for providing loans in this category and hence it is essential that the customer chooses the bank which provides the best rates over the entire tenure of the loan including a check of other charges/fees and exit routes if necessary. There is also the concept of floating and fixed interest rates which the customer should carefully examine for the overall interest cost during the period of the loan.
Educational loans are being encouraged by banks for higher studies in India and abroad. Each bank has its own rules but usually there are different monetary limits for availment which determine the nature of security to be provided. For educational loans it is necessary for one of the parents to be a coapplicant with the candidate who is to pursue the study. These are generally loans for seven years with reasonable interest rates and repayment starts after the study is over.
All loans are subject to the discretion of the bank and fulfillment of the stipulated criteria for being eligible. However banks are covered by Fair Practices Code for Lenders and customers have the right to be adequately informed in case they are aggrieved. It is also critical to have a satisfactory credit history of borrowing as customers of dubious reputation and doubtful integrity are rejected.. Credit Information Bureau India Ltd is maintaining the credit profile of each individual customer for reference of banks while taking lending decisions.
Credit card use is also a form of availing bank funds which come at very high cost as they are totally unsecured with a revolving facility over an extended tenure till non renewal or cancellation.
Banks are providing credit facilities in multiple ways according to the purpose of the loan and the security that is offered by the customer. The end use of the loan is important as banks funds are meant to be productively employed in order that the borrower is able to repay the amount of loan with interest. For this to happen the borrower should either generate surplus funds by utilizing the loan for profitable purpose or he should have sufficient repaying capacity as in case of personal loans,consumer loans, travel loans, credit card usage etc. It must be remembered that loans need to repaid as only then can the funds be recycled for further use or else the bank loans which are its assets would not be able to pay its liabilities which are the bank deposits. If such a situation arises and persists then the failure /collapse of the bank is inevitable.
Bank loans and advances can be of the following types—
Overdrafts /loans against Fixed deposits, Recurring deposits, Post office National Savings Certificates, LIC policies, Stocks of reputed listed companies: a fixed percentage of the face value/ surrender value of the security is allowed as overdraft which can be a revolving facility or loan to be repaid before maturity of the security in question subject to execution of documents as prescribed by the bank. The security has to be pledged to the bank for availing the loan. For loans against deposits the interest charged on the loan is linked to the deposit rate whereas in case of others the overdraft rate is generally applicable.
Personal loans, Consumer loans, Travel loans etc are part of retail loans promoted by banks to customers who have the repaying capacity based on their monthly income. The interest rates for such loans are comparatively higher as it is generally unsecured. Unsecured loans are those where the bank does not have any security for the loan given. In the event of non payment by the borrower the prospects of recovery become that much difficult.
Automobile loans, Home loans are given to acquire two/three wheelers, cars and residential property respectively. These are secured loans as the automobile is hypothecated to the bank and the property is mortgaged. They are released only when the respective loan account is adjusted in full with interest. The respective interest rates are reasonable in view of the security and also the fact that the industry/economy needs to be pushed. While auto loans can stretch upto seven years, home loans can be availed in certain cases upto 30 years also. There is considerable competition among banks for providing loans in this category and hence it is essential that the customer chooses the bank which provides the best rates over the entire tenure of the loan including a check of other charges/fees and exit routes if necessary. There is also the concept of floating and fixed interest rates which the customer should carefully examine for the overall interest cost during the period of the loan.
Educational loans are being encouraged by banks for higher studies in India and abroad. Each bank has its own rules but usually there are different monetary limits for availment which determine the nature of security to be provided. For educational loans it is necessary for one of the parents to be a coapplicant with the candidate who is to pursue the study. These are generally loans for seven years with reasonable interest rates and repayment starts after the study is over.
All loans are subject to the discretion of the bank and fulfillment of the stipulated criteria for being eligible. However banks are covered by Fair Practices Code for Lenders and customers have the right to be adequately informed in case they are aggrieved. It is also critical to have a satisfactory credit history of borrowing as customers of dubious reputation and doubtful integrity are rejected.. Credit Information Bureau India Ltd is maintaining the credit profile of each individual customer for reference of banks while taking lending decisions.
Credit card use is also a form of availing bank funds which come at very high cost as they are totally unsecured with a revolving facility over an extended tenure till non renewal or cancellation.
Fair Practices Code for Lenders
Fair Practices Code for Lenders
This code has been adopted by banks for setting out the fair practices expected during lending by banks. The code applies to the following areas---
# application for loan and their processing
it gives the time schedule for acceptance and disposal of the loan application. Reasons for rejection are required to be intimated to the applicant. The borrower is also informed about the fees/charges that are levied according to the nature of loan.
# loan appraisal and terms and conditions
the terms and conditions under which the loan is granted is suitably informed along with copies of documents executed by the borrower, on request, is given. Any changes in interest rates during the loan period is also to be intimated by the bank.
# post disbursement handling
# list of recovery agents.
The detailed information from the above perspective is available to the borrower customer so that there is complete understanding of the loaning process of banks. The borrower also has a responsibility in strictly complying with the terms and conditions in order that the bank’s funds are appropriately utilized for the purpose it is meant. The end use of funds is a critical component of bank lending and is required to be strictly adhered
This code has been adopted by banks for setting out the fair practices expected during lending by banks. The code applies to the following areas---
# application for loan and their processing
it gives the time schedule for acceptance and disposal of the loan application. Reasons for rejection are required to be intimated to the applicant. The borrower is also informed about the fees/charges that are levied according to the nature of loan.
# loan appraisal and terms and conditions
the terms and conditions under which the loan is granted is suitably informed along with copies of documents executed by the borrower, on request, is given. Any changes in interest rates during the loan period is also to be intimated by the bank.
# post disbursement handling
# list of recovery agents.
The detailed information from the above perspective is available to the borrower customer so that there is complete understanding of the loaning process of banks. The borrower also has a responsibility in strictly complying with the terms and conditions in order that the bank’s funds are appropriately utilized for the purpose it is meant. The end use of funds is a critical component of bank lending and is required to be strictly adhered
Banker’s Code of Commitment to Customers
Banker’s Code of Commitment to Customers
It is a voluntary code signed by banks, which lays down standards of fair banking practices to be followed by banks while dealing with individual customers. It is a ready reckoner for customers to know what they can expect from banks in their dealings with them in the following areas---
Current, savings and all deposit accounts,
Pension, PPF accounts,
Collection and remittance facilities
Loans and overdrafts
Foreign exchange services
Currency exchange facilities
Card products
Third party products offered through bank’s networks
The signatory banks have pledged to act fairly and reasonably in all dealings with the customer; to help customers understand the nature of financial products and services being offered and to deal quickly and with care all cases of wrongdoing.
It is a significant tool empowering the customers to get the best possible services from banks in a transparent and satisfactory manner. The banks are committed to publicize this code by making available copies thereof to their customers. All areas of possible conflicts and doubts are covered by this code for the customer to make an informed and considered decision while dealing with banks.
The banks are committed to share with the customers the details of their fees and charges for the different services that are available, the normal time taken for cash receipts and payments, the cheque collection facility and the options available and the procedure to be followed in case of grievance redressal of the customer.
The customer additionally has the right to approach the Banking Codes and Standards Board of India, which is the monitoring agency approved by RBI and participating banks, in case they feel that the bank is falling short of the commitments enumerated in the subject code.
It is a voluntary code signed by banks, which lays down standards of fair banking practices to be followed by banks while dealing with individual customers. It is a ready reckoner for customers to know what they can expect from banks in their dealings with them in the following areas---
Current, savings and all deposit accounts,
Pension, PPF accounts,
Collection and remittance facilities
Loans and overdrafts
Foreign exchange services
Currency exchange facilities
Card products
Third party products offered through bank’s networks
The signatory banks have pledged to act fairly and reasonably in all dealings with the customer; to help customers understand the nature of financial products and services being offered and to deal quickly and with care all cases of wrongdoing.
It is a significant tool empowering the customers to get the best possible services from banks in a transparent and satisfactory manner. The banks are committed to publicize this code by making available copies thereof to their customers. All areas of possible conflicts and doubts are covered by this code for the customer to make an informed and considered decision while dealing with banks.
The banks are committed to share with the customers the details of their fees and charges for the different services that are available, the normal time taken for cash receipts and payments, the cheque collection facility and the options available and the procedure to be followed in case of grievance redressal of the customer.
The customer additionally has the right to approach the Banking Codes and Standards Board of India, which is the monitoring agency approved by RBI and participating banks, in case they feel that the bank is falling short of the commitments enumerated in the subject code.
Banks in News
Axis Bank has cut its benchmark prime lending rates by 50 basis points to 15.25% wef 1st April 2009. The bank has also cut home loan rates which are now 9.25% for loans upto Rs 30 lacs and above Rs 30 lacs it is 10.25%. (BL040409)
State Bank of India has recruited 30,000 recently despite the depressed economic conditions. During the last 2 years the bank has opened around 2,000 branches in the country taking the total number of branches to 11,500.(FE290309)
Corporation Bank has associated with LIC in launching LIC credit cards. Two variants of the LIC card, Gold and Classic were launched. They can be used for payment of premium by the policy holders.(HINDU310309)
State Bank of India has recruited 30,000 recently despite the depressed economic conditions. During the last 2 years the bank has opened around 2,000 branches in the country taking the total number of branches to 11,500.(FE290309)
Corporation Bank has associated with LIC in launching LIC credit cards. Two variants of the LIC card, Gold and Classic were launched. They can be used for payment of premium by the policy holders.(HINDU310309)
Fresh Social Measures adopted by Banks
Fresh Social Measures adopted by Banks
PNB and Guruvayoor Dewaswom have entered into an agreement to provide online VAZHIPADU booking through its internet banking services. Through this facility, a devotee can make offerings from anywhere by logging on to www.guruvyurdewaswom.org. Nineteen offerings that can be booked online are listed on it
Corporation Bank has opened the Alagappa University- Corporation Bank Public Library at Karaikudi in December 2008 even though the bank has no presence there.
Corporation Bank has also announced an yearly awarding of ‘Corp Bank Scholar’ gold medal for best outgoing student of Alagappa University every session.
State Bank of Travancore has activated an internet banking facility for online payment of donation to Guruvayoor Temple.
PNB has offered convenient schemes for rickshaw pullers by providing a means of self employment to the poor and deprived rickshaw pullers community. Under this scheme started at Varanasi rickshaw pullers can become owners of the vehicle after 3 years. Health and medical insurance cover is also provided. They are required to open a no frills account with PNB.
Under yet another scheme at Patna, rickshaws are given free of cost to the pullers while they pay a maintenance cost of Rs 10/- per day. They also sell water, soft drinks and other merchandise to the riders, profits from which are shared equally between the rickshaw pullers and a NGO. They are also given insurance cover, uniforms etc.
The TRAM campaign of Canara Bank involves contribution of Rs 10/- a month from all staff members which is meant to be distributed among the disabled and the sick. Every year around Rs 6 lacs is given to the needy people.
Canara Bank also has welfare activities for students. Every year around Rs 10 lacs is spent for primary education by giving note books, scholarships, uniforms and other educational aids to the poor meritorious students of government schools.
There would be heritage galleries at historical branches of State Bank of India shortly . These galleries would exhibit old furniture, letters and currency notes of earlier times including the accounts of Annie Besant, Motilal Nehru and others.
State Bank of Hyderabad has recently donated a pick up van as part of bank’s community service campaign, to Centre for Social Service. The van would be used for transport needs of girls for sending them to schools.
PNB and Guruvayoor Dewaswom have entered into an agreement to provide online VAZHIPADU booking through its internet banking services. Through this facility, a devotee can make offerings from anywhere by logging on to www.guruvyurdewaswom.org. Nineteen offerings that can be booked online are listed on it
Corporation Bank has opened the Alagappa University- Corporation Bank Public Library at Karaikudi in December 2008 even though the bank has no presence there.
Corporation Bank has also announced an yearly awarding of ‘Corp Bank Scholar’ gold medal for best outgoing student of Alagappa University every session.
State Bank of Travancore has activated an internet banking facility for online payment of donation to Guruvayoor Temple.
PNB has offered convenient schemes for rickshaw pullers by providing a means of self employment to the poor and deprived rickshaw pullers community. Under this scheme started at Varanasi rickshaw pullers can become owners of the vehicle after 3 years. Health and medical insurance cover is also provided. They are required to open a no frills account with PNB.
Under yet another scheme at Patna, rickshaws are given free of cost to the pullers while they pay a maintenance cost of Rs 10/- per day. They also sell water, soft drinks and other merchandise to the riders, profits from which are shared equally between the rickshaw pullers and a NGO. They are also given insurance cover, uniforms etc.
The TRAM campaign of Canara Bank involves contribution of Rs 10/- a month from all staff members which is meant to be distributed among the disabled and the sick. Every year around Rs 6 lacs is given to the needy people.
Canara Bank also has welfare activities for students. Every year around Rs 10 lacs is spent for primary education by giving note books, scholarships, uniforms and other educational aids to the poor meritorious students of government schools.
There would be heritage galleries at historical branches of State Bank of India shortly . These galleries would exhibit old furniture, letters and currency notes of earlier times including the accounts of Annie Besant, Motilal Nehru and others.
State Bank of Hyderabad has recently donated a pick up van as part of bank’s community service campaign, to Centre for Social Service. The van would be used for transport needs of girls for sending them to schools.
Wednesday, April 8, 2009
Fair Practices Code for Lenders
This code has been adopted by banks for setting out the fair practices expected during lending by banks. The code applies to the following areas---
# application for loan and their processing
it gives the time schedule for acceptance and disposal of the loan application. Reasons for rejection are required to be intimated to the applicant. The borrower is also informed about the fees/charges that are levied according to the nature of loan.
# loan appraisal and terms and conditions
the terms and conditions under which the loan is granted is suitably informed along with copies of documents executed by the borrower, on request, is given. Any changes in interest rates during the loan period is also to be intimated by the bank.
# post disbursement handling
# list of recovery agents.
The detailed information from the above perspective is available to the borrower customer so that there is complete understanding of the loaning process of banks. The borrower also has a responsibility in strictly complying with the terms and conditions in order that the bank’s funds are appropriately utilized for the purpose it is meant. The end use of funds is a critical component of bank lending and is required to be strictly adhered
# application for loan and their processing
it gives the time schedule for acceptance and disposal of the loan application. Reasons for rejection are required to be intimated to the applicant. The borrower is also informed about the fees/charges that are levied according to the nature of loan.
# loan appraisal and terms and conditions
the terms and conditions under which the loan is granted is suitably informed along with copies of documents executed by the borrower, on request, is given. Any changes in interest rates during the loan period is also to be intimated by the bank.
# post disbursement handling
# list of recovery agents.
The detailed information from the above perspective is available to the borrower customer so that there is complete understanding of the loaning process of banks. The borrower also has a responsibility in strictly complying with the terms and conditions in order that the bank’s funds are appropriately utilized for the purpose it is meant. The end use of funds is a critical component of bank lending and is required to be strictly adhered
Banker’s Code of Commitment to Customers
Banker’s Code of Commitment to Customers
It is a voluntary code signed by banks, which lays down standards of fair banking practices to be followed by banks while dealing with individual customers. It is a ready reckoner for customers to know what they can expect from banks in their dealings with them in the following areas---
Current, savings and all deposit accounts,
Pension, PPF accounts,
Collection and remittance facilities
Loans and overdrafts
Foreign exchange services
Currency exchange facilities
Card products
Third party products offered through bank’s networks
The signatory banks have pledged to act fairly and reasonably in all dealings with the customer; to help customers understand the nature of financial products and services being offered and to deal quickly and with care all cases of wrongdoing.
It is a significant tool empowering the customers to get the best possible services from banks in a transparent and satisfactory manner. The banks are committed to publicize this code by making available copies thereof to their customers. All areas of possible conflicts and doubts are covered by this code for the customer to make an informed and considered decision while dealing with banks.
The banks are committed to share with the customers the details of their fees and charges for the different services that are available, the normal time taken for cash receipts and payments, the cheque collection facility and the options available and the procedure to be followed in case of grievance redressal of the customer.
The customer additionally has the right to approach the Banking Codes and Standards Board of India, which is the monitoring agency approved by RBI and participating banks, in case they feel that the bank is falling short of the commitments enumerated in the subject code.
It is a voluntary code signed by banks, which lays down standards of fair banking practices to be followed by banks while dealing with individual customers. It is a ready reckoner for customers to know what they can expect from banks in their dealings with them in the following areas---
Current, savings and all deposit accounts,
Pension, PPF accounts,
Collection and remittance facilities
Loans and overdrafts
Foreign exchange services
Currency exchange facilities
Card products
Third party products offered through bank’s networks
The signatory banks have pledged to act fairly and reasonably in all dealings with the customer; to help customers understand the nature of financial products and services being offered and to deal quickly and with care all cases of wrongdoing.
It is a significant tool empowering the customers to get the best possible services from banks in a transparent and satisfactory manner. The banks are committed to publicize this code by making available copies thereof to their customers. All areas of possible conflicts and doubts are covered by this code for the customer to make an informed and considered decision while dealing with banks.
The banks are committed to share with the customers the details of their fees and charges for the different services that are available, the normal time taken for cash receipts and payments, the cheque collection facility and the options available and the procedure to be followed in case of grievance redressal of the customer.
The customer additionally has the right to approach the Banking Codes and Standards Board of India, which is the monitoring agency approved by RBI and participating banks, in case they feel that the bank is falling short of the commitments enumerated in the subject code.
KNOW YOUR CUSTOMER KYC NORMS
Banks are required to comply with KYC norms for allowing customers to operate their accounts. Also the formalities are required to be complied with at the time of opening of accounts for identification of depositors with the objective to prevent banks from being used in any fraudulent or anti social manner.
Customers are expected to cooperate with the banks for submission of all papers/ documents in respect of their identity and residential proof. They should not allow their account to be used for any fraudulent or anti social activity which is on the increase. PAN details are required to be given in respect of transactions above a specified limit. Cash transactions are also not permitted beyond a threshold limit. RBI is insisting on strict adherence of these requirements to prevent money laundering through bank accounts. KYC norms are meant to identify the depositor and his source of funds.
Customers are expected to cooperate with the banks for submission of all papers/ documents in respect of their identity and residential proof. They should not allow their account to be used for any fraudulent or anti social activity which is on the increase. PAN details are required to be given in respect of transactions above a specified limit. Cash transactions are also not permitted beyond a threshold limit. RBI is insisting on strict adherence of these requirements to prevent money laundering through bank accounts. KYC norms are meant to identify the depositor and his source of funds.
INSURANCE OF BANK DEPOSITS
To protect the interest of depositors there is provision of insurance of bank deposits upto Rs 1 lakh in deposit accounts with banks. The Deposit Insurance and Credit Guarantee Corporation of India insures the deposits with insured banks upto the extent of Rs 1 lakh in each account.
The deposits in different branches of the same bank of an individual depositor are taken together for computing the total value of Rs 1 lakh. However where the depositor has deposits with more than one bank the insurance cover is applied separately for each deposit in different banks. The insurance cover is available for all deposit accounts like savings, current, recurring, fixed deposits etc.
The deposits in different branches of the same bank of an individual depositor are taken together for computing the total value of Rs 1 lakh. However where the depositor has deposits with more than one bank the insurance cover is applied separately for each deposit in different banks. The insurance cover is available for all deposit accounts like savings, current, recurring, fixed deposits etc.
NOMINATION FACILITY
While opening deposit accounts with banks the facility of nomination is provided to minimize scope for harassment at a later date. Settlement of deceased accounts had become a major problem for banks as the legal heirs were complicating the issue. Moreover the rightful owner of the funds in the deceased deposit account was being needlessly harassed for want of clarity in the matter. Nomination in deposit accounts of individuals has therefore become mandatory to mitigate the problems in settlement of deceased accounts.
The depositor may nominate a person to whom the bank may make the payment of the balance in the deposit account in the event of his death. The nomination confers the right upon the nominee to receive the amount in the account of the deceased from the bank. The right of any other person against the nominee is not affected by such payment.
Separate nominations for each deposit account can be made and nominations can be changed any time during the period of deposit. In case of joint accounts all the account holders have to jointly nominate an individual.
The depositor may nominate a person to whom the bank may make the payment of the balance in the deposit account in the event of his death. The nomination confers the right upon the nominee to receive the amount in the account of the deceased from the bank. The right of any other person against the nominee is not affected by such payment.
Separate nominations for each deposit account can be made and nominations can be changed any time during the period of deposit. In case of joint accounts all the account holders have to jointly nominate an individual.
Wednesday, April 1, 2009
Gujarat High Court has criticized the practice of government
Gujarat High Court has criticized the practice of government nominating members of political parties as non official directors on boards of Public Sector banks, saying it sends a wrong signal. Non official directors are usually appointed to represent the interests of depositors. They are required to possess special knowledge or practical experience in various fields.(BL250209)
ICICI Prudential Life Insurance and PNB
ICICI Prudential Life Insurance and PNB have entered into an arrangement to enable policy holders to make payment of premium through the branches of PNB. In the first phase the facility would be available in Punjab,UP,Uttaranchal, Haryana and WB.(BL270309)
Several private banks have reduced the credit limits
Several private banks have reduced the credit limits of card holders and it appears that many customers are yet to be informed. The banks in question are HSBC, ICICI, HDFC and Standard Chartered.(BL270309)
RBI will for the first time
RBI will for the first time put into circulation two new coins of Rs 10 each issued by the government. Each coin will weigh 7.71 gms and the outside diameter will measure 27 mm.(BS270309)
From 1st April 2009 use of third party ATMs would be free.
From 1st April 2009 use of third party ATMs would be free. (BS270309)
In case you are planning to buy a house
In case you are planning to buy a house with a loan from SBI in an environment friendly residential project which has been rated by the Indian Green Building Council, then the bank is willing to provide benefits like reduced margins, softer interest rates and zero processing fees.(BL270309)
Borrowers from the IT sector
Borrowers from the IT sector who have taken housing loans and have been laid off can have their loans restructured, meaning they would be given additional time for adjustment of their loans according to spokesperson of Indian Overseas Bank.(BL280309)
OBC has also decided to reduce its PLR from 12.50% to 12.25%. (BL280309)
OBC has also decided to reduce its PLR from 12.50% to 12.25%. (BL280309)
Three Kolkata based banks
Three Kolkata based banks have reduced their prime lending rates effective 1st April 2009. While UCO Bank has reduced its PLR by 50 basis points to 12%, United Bank and Allahabad bank have cut their rates by 25 basis points to 12.25%.
HDFC reduces its prime lending
HDFC reduces its prime lending rate by 50 basis points to 14% wef 25-03-09. The cut in rates will accrue to all existing floating rate customers over the next 3 months. (BL250309)
RBI is planning to expand cheque
RBI is planning to expand cheque truncation system to 6-7 centres in the country after the success in NCR. At present 70% of the cheques by volume in NCR are cleared through CTS. Cheque truncation system would be next in Chennai. (BL240309)
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