Forex limit for overseas travellers hiked

Travellers going abroad can now carry more foreign currency.The RBI has increased the permissible limits for authorised dealers and money dealers selling foreign exchange to people travelling abroad from $2000 to $3000.In a circular issued,the RBI said authorised dealers and full-fledged money changers can sell foreign exchange in the form of foreign currency notes and coins upto $3000 to travellers proceeding to countries other than Iraq,Libya,Islamic Republic of Iran,Russian Federation and other Republics of Commonwealth of Independent States.(BL 05-05-2010)

Online banking frauds

Minister of State for Finance Shri N.N.Meena informed the Parliament that Online banking frauds are on the rise with the number of cases more than doubling over the past three years.The number of internet frauds rose from 102 in 2007 to 113 in 2008and 269 in 2009 involving an amount of Rs2.51crore,Rs5.53 crore and Rs5.90 crore respectively.The minister further said that the RBI has cited compromises on password and other safety measures as the main reason for the occurance of such frauds.RBI has already taken measures to check such frauds such as making it mandatory for banks to put in place a system for providing additional authentication and validation,an online alert system for card holders in case of transactions of a value of over Rs5000,redressal of grievances for wrongful billing and reporting of cases to police and ensuring follow-up action.(BS 05-05-2010)

New models of SBI ATMs

State Bank of India is shortly coming out with varied models of ATMs such as Solar ATM,Rural ATM with bio-metric functionality,multi purpose kiosks and Talking ATMs,which will help visually challenged customers operate the ATM with ease.All the ATMs of SBI Chennai circle are enabled with image capturing facility and the average cash dispensed a day is Rs 100 crore.(BL 05-05-2010)

SBI teaser home loan scheme

Despite the increase in policy rates -repo&reverse repo-and cash reserve ratio by 25 basis points,fund-flushed State Bank of India(SBI)has extended its teaser home loan scheme though with a marginal modification and for the second time till June30.The existing scheme was expected to be over by 30th April.In the modified scheme,the interest rate to be charged by the bank will be 8%for the first year and 9% for the second and third years.However,differential floating interest rates would be charged from fourth year onwards,a senior official of the bank told on condition of anonymity.While the bank would charge an interest rate of 9.25%(2.5%less than the State Bank advanced rate)on the loan amount upto Rs50 lakh,interest rate for the loan amount beyond Rs 50 lakh would be 9.75%(or 2%less than the SBAR)from the fourth year, said the official.(FE 03-05-2010)

Mobile money transfer

With the pilot project in Pune doing extremly well, Nokia expects mobile money transfers to take root and grow.At a strategy sharing session recently Nokia described its vision for mobile money services roll-out in India,a business with enormous revenue potential.
The RBI has permitted YES Bank to provide mobile money services in association with Nokia.(Obopay,a Californa-based compay in which Nokia has a stake offers the technology back-up for YES Bank).The pilot in Pune will end in a couple of months,the result of which will presumably be inputs for the RBI to regulate the roll-out of the services in India(BL 30-04-2010)

Banks can now appoint any individual as BC

With the objective of ensuring greater financial inclusion and increasing outreach of the banking sector, RBI had earlier allowed banks to engage NGOs,micro finance agencies and self-help groups for identification of borrowers,processing of loan applications,helping recovery and such other support services.In 2006 the RBI
had allowed banks to use intermediaries as BCs for providing financial and banking services.Banks can now engage any individual including those operating common service centres to work as business correspondents(BCs).BCs conduct banking business as agents of banks at places other than the bank premises.The central bank will issue operational guidelines seperately.The business correspondents are paid commission fees as per RBIguidelines while banks follow KYC norms while undertaking banking activities through them. (BS 030510)

BANKS IN NEWS

South Indian bank has launched ‘SIB Mahila’, a savings bank product for women. The product which is linked with recurring deposit provides 10 technological products/services for free including house to house transit insurance for Rs 50,000/- and an accident insurance cover for Rs 1 lakh. The product is available in two variations. The Mahila savings account can be opened with a minimum balance of Rs1,000/- and a recurring deposit account for minimum amount of Rs 100/- for minimum period of 12 months. Under the Mahila Plus savings account the minimum balance specified is Rs 25,000/- and the minimum RD amount is fixed at Rs1,000/-. There are other benefits as well. (BL200609)

Banks should be prepared for serious competition from the Postal department. The department plans to provide the convenience of on site ATMs to its SB account holders at select head Pos across various states. As of March 2009 Pos had 22.89 crore SB accounts and the aggregate amount in these accounts was Rs22,217 crores. The minimum balance to be maintained in a SB account is Rs50/- for non cheque book account and Rs 500/- for cheque book accounts. The maximum balance in individual account is Rs 1 lakh and Rs 2 lakh for joint accounts. Interest earned on savings accounts with post offices is tax free.(BL210609)

SBI has signed MOU with Credit Guarantee Trust for Micro and Small Enterprises CGTMSE to cover micro and small enterprises under portfolio guarantee scheme. Under this agreement the bank can consolidate all eligible loans on a quarterly basis and obtain guarantee cover from the Trust. (BL240609)

Bank of India is cutting interest rates on domestic term deposits by 25 to 75 basis points across various maturities effective from the 27TH June 2009. (BL240609)

Union Bank announced a 25 basis points reduction in its prime lending rates to 11.75 percent wef 1st July 2009. IDBI Bank cut its deposit rates by 25 to 50 basis points in different maturity baskets.(230609)

Indian Bank has opened specialized branches to promote micro finance. The bank has obtained licences for opening 25 specialised branches of which 22 has already been set up. The bank has lent Rs1,500 crores to 2,40,000 self help groups. (BL230609)

SBI reduces its BPLR by 50 basis points to 11.75 percent effective 29-06-09. All loans including home loans which are linked to BPLR will benefit from the latest rate cut. Other public sector banks are also likely to pare their lending rates. (BL250609)

Banks would observe a country wide strike in the subsidiary banks of SBI on 6th July 2009. The strike is to oppose the merger plans of the subsidiary banks with the parent SBI. (BS250609)