SBI picks 2 US firms for point-of-sale terminals deal

State Bank of India has zeroed-in on two US-based companies -Visa international and Elavon Inc as joint venture partners for setting up a network of point-of-sales(POS)terminals across the country.The two foreign partners will help India's biggest lender with payments technology solutions for its ambitious plan to roll out six lakh POS terminals at merchant establishments over the next five years.POS terminals are devices seen in retail and hospitality establishments for processing credit cards ,debit cards,smart cards and other electronically submitted transactions in a traditional retail environment.A retail POS system includes a computer ,monitor,cash drawer,receipt printer,customer display,barcode scanner, integrated card processing system,a signature capture device and a customer pin-pad device. The merchant swipes the customer's card at the terminal or keys-in payment information and the terminal does the rest.In the future ,the bank is also envisaging use of POS for mobile top-ups,utility bill payments,booking of railway and movie tickets.(BL06052010)

Bajaj Finserv awaits RBI nod for banking foray

Bajaj Finserv ,financial services wing of the Bajaj Group is keen to foray into banking sector. Bajaj Finserv MD Sanjiv Bajaj said that they are a zero-debt company having an idle cash of Rs800 crore and would like utilise the resources to venture into banking.The final guidelines from the Reserve Bank of India on awarding new banking licences are awaited before the proposed plan in banking foray is taken forward.The two new segments that the firm is likely to venture in near future include mutual fund and wealth management.(FE 06052010)

Financial inclusion

The government is open to the idea of providing financial support to banks for implementing financial inclusion as the lenders fear that the move may be unviable in initial years.The government in a recent meeting with banks expressed it was open to the idea of subvention in initial years. The government met representatives of 32 banks to identify the challenges facing them for implementing financial inclusion.The government has embarked on an ambitious plan to cover all villages having a population of more than 2000 to have banking facilities by March 31,2012.There are about 64000 villages in the country with a population over 2000 lacking a formal banking channel.The central bank is currently reviewing the plans on financial inclusion submitted by banks.RBI had asked banks to submit their board-approved p;ans of financial inclusion for 2010-11 (BS 06052010)

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)