TELL ME MORE

--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.

Bank of Baroda Flexi RD account

A recurring deposit account with flexibility of having varying monthly instalments. The core monthly instalment to be minimum Rs 100/- which can be increased in multiples of Rs 100/- to a maximum of three times the core amount. The maximum monthly instalment can be Rs 10,000/- only. The term of the deposit account can be 12 months to maximum of 36 months. Loan upto 95 percent of the total deposit is allowed.

UCO Bank money back RD account

Long term recurring deposit account with intermediate withdrawal facility. Maturity after 120 months with first withdrawal after 60 months or withdrawal after 36months and 72 months and balance after 120 months.

HDFC Family Savings Group

This account enables 4 individual savings accounts of the same family to be linked together under family savings group. The minimum average quarterly balance for the group is applicable instead of individual accounts. Family member with NRI status is eligible to be part of the group. 5 free cash withdrawals allowed from SBI ATMs and upto 2 free demand drafts on HDFC account per month upto a maximum of Rs 25,000/ per instrument. International debit card with free bill payment facility with internet banking and mobile banking. Cash delivery facility at home on payment of Rs 50/- per delivery and free passbook delivery. Additional facility of 25 percent discount on locker rent charges, free demat account for the first year and Gold debit card on one time payment of Rs 250/-.

HDFC Bank Multi deposit account

Savings or current account linked to multiple fixed deposit accounts with facility of transfer of amount from fixed deposit accounts in units of Rs 1/- so that interest loss is minimum on fixed deposits Free international debit card and free cheque book facility is also available.