Federal Bank ATMs linked to NFS

Federal Bank has announced that its ATM network has been linked to the India Pay National Financial Switch( NFS) managed by National Payments Corporation of India's (NPCI). This is India's largest network of shared ATMs, which connects around 61200 ATMs across 44 banks.This would enable Federal Bank's customers access to all these 61200 ATMs across the country and all the cardholders of the 44 member banks can also access 759 Federal Bank ATMs.(BL 11092010)

Axis Bank's remittance service

Axis Bank has launched a remittance service called Instant Money Transfer, in partnership with Empays Payment Systems. IMT will be avilable to Axis Bank customers in Mumbai,Bangalore, Ahmedabad, and Hyderabad to conduct transactions.The pan-India roll-out is expected to take place in the next 4-6 weeks, said a press release. IMT enables customers of the Bank to make instant cash payments to a receiver anywhere in India at low cost.The receiver need not be an account holder of Axis Bank, or for that matter any Bank. Once the receiver gets the notification of the remittance, he or she can go to the nearest Axis Bank ATM and withdraws the money. Remitters can conduct the remittance using mobile, net banking and ATMs.(BL 11092010)

Axis Bank in urban financial inclusion drive

Axis Bank has tied up with Bangalore- based Janalakshmi Social Services(JSS) to launch its urban financial inclusion initiative in India, the pilot of which will be done in Bangalore. It would be a branchless banking facility, and would follow the business correspondent model. JSS would be the business correspondent, while all accounts will be opened, maintained and serviced by Axis Bank. The Bank has enrolled 5,000 customers through this initiative, Ms Shikha Sharma, Managing Director and CEO, Axis Bank, said.(BS 10092010)

RBI panel to study freeing of savings bank rate

The Reserve Bank of India will soon set up a working group to look into the issue of deregulation of savings bank interest rate, said Ms Usha Thorat, Dy. Governor, RBI. Ms Thorat said ,'The deregulation of savings bank interest rate that is currently set at 3.50% by the RBI is an issue which is on our radar. A working group is being set up to debate the issues and draw conclusions." Totally freeing rates could lead to lowering rates in some areas while leading to increase in other areas. It would need to be ensured that there is no discrimination between different customers of the same bank, she said addressing the FICCI-IBI banking seminar in Mumbai on Wednesday. Another important consideration is whether deregulation of savings rate would draw more people into the fold of the formal banking system. The RBI has been taking measures to safeguard the interest of saving bank customers. From April 1, banks have been calculating the interest on balance in the savings bank account on a daily basis, against the earlier practice of calculating it on the minimum balance between the 10th and the last day of each month.(BL 09092010)

Canara Bank launches retail loan festival

Canara Bank has launched a 5 month long retail loan festival for home loans and vehicle loans from Sept.1 to Jan 31,2011.The Bank has come up with special interest rates for home loans & vehicle loans. According to a press release from the bank, housing loans upto Rs 30 lakh would be available at an interest rate of about 8.50% an annum, and there would be an interest concession of 0.5% an annum for all slabs upto Rs 1 crore.The Bank also announced a waiver of processing charges upto 75%. Home improvement loans would also be offered at home loan interest rates during the offer period. Vehicle loans are offered at 10% an annum, with nominal processing charges.(BL 08092010)

"Allow UK banks to open branches here"

The Indian Government should allow UK banks the freedom to open branches in India, similar to the UK Govt. which allows Indian banks to expand in the UK, said Lord James Sassoon,Commercial Secretary to the Treasury ,UK while speaking at the recently held FICCI-IBA banking seminar at Mumbai. He expressed his desire to see Indian banks establish themselves even more prominently across the UK- and basing international businesses out of the UK. Lord Sassoon further said that London has the advantage of being a financial capital as well as a gateway to other European markets. He cited the example of ICICI Bank which has used its UK subsidiary to open branches in Belgium and Germany and State Bank of India that has decided to make London its European headquarter.(BL 08092010)

HDFC extends dual rate home loan offer

HDFC Ltd. has announced it is offering its dual rate home loan scheme which had ended on August 30 to till the end of September. But the housing finance company has increased the interest rates following the hike in its benchmark retail prime lending rate (RPLR),with effect from September 01. Under the revised scheme, the interest rate on home loans will be available fixed rate at 8.50% upto March 31,2011, 9.50% for the period between April,2011 and March 31,2012 and the applicable floating rate for the balance term.These rates are applicable for all the new home loans, irrespective of the loan amount, said a press release issued by the company.(BL 08092010)