SBI's self service banking centre

State Bank of India(SBI) has opened a self-service banking centre in Hyderabad to increase customer convenience and provide 24/7 access to banking. The centre, a branch-less and staff-less technology-based banking outfit, has a multifunction kiosk for internet banking and to print statements. It also ptovides multiple banking facilities such as ATM,internet and mobile banking, cheque book request,mobile top-up, train ticketing and income tax payments using debit or credit cards. It has three ATMs,including one for the visually challenged with braille keypad.One BNA (bunch note acceptor) would be whereinstalled shortly customer can deposit money through the machine, a release said (BS 28032011)

Union Bank opens financial literacy centre

Union Bank of India,lead bank of Ernakulam District,has set up its first financial literacy and credit counselling centre(FLCCC) at Perumbavoor. FLCCCs, recommended by the High Power Committee headed by Ms Usha Thorat on Lead Bank Scheme, are being set up in every district with the intention of providing financial counselling service through face-to-face interaction as well as through other available media like email, fax, mobile etc,educating people in rural and urban areas with regard to various financial products and services. In the first phase of financial inclusion, all villages having population in excess of 2,000 are being targeted to set up banking facilities. (BS 28032011)

Now, ICICI customers can withdraw cash at shops

ICICI Bank, the country's largest private sector lender, today launched cash withdrawal facility for customers at point of sales(POS) terminals or merchant outlets.
Customers with debit cards will have the option to withdraw cash upto Rs 1000 whether they buy or not buy at merchant outlets.
"The facility will be available to all ICICI Bank debit card holders who can withdraw Rs 1000 a day. Cash can be withdrawn with or without associate purchase transaction at an approved and enabled merchant estasblishment with POS terminals", the Bank said.
In July 2009, RBI issued guidelines in which cash withdrawals of upto Rs 1000 a day from POS terminals were permitted through all debit cards issued in India.RBI, however, had left it to the bank's discretion to decide on the fee.
Union Bank of India, the first bank to start this facility a year back, albeit only in rural areas, said the experience was not encouraging.(BS 20.01.2011)

Banks told to cap cash deposit charges at Rs 5

The Reserve Bank of India(RBI) has told banks not to charge more than Rs 5 for any cash deposit made at a non-home branch (other than the one where the customer has the account).Some banks charge as much as Rs 110 for such cash deposits.
In 2008, RBI said the charges for a transaction under the National Electronic Fund Transfer (NEFT)upto Rs 1 lakh should not exceed Rs 5. Now, the regulator says cash deposit charges should be in line with NEFT charges.
The central bank generally refrains from specifying interest rates and charges. However, it has acted where it feels banks are being needlessly stubborn or unfair.Last year,RBI had mandated a fixed charge for cash withdrawal from third- party automated teller machines, beyond the five free transactions. Banks used to charge customers as much as Rs 55 for cash withdrawal from other bank ATMs.
RBI feels since banking is a highly regulated service industry, with very stiff entry norms, customer service cannot entirely be left to market forces. It is the regulator's duty to protect small customers.
To review customer service in banks, RBI recently set up a committee under former Securities and Exchange Board of India Chairman, M.Damodaran. It would look at the range of services offered to retail and small borrowers, including pensioners and suggest a mechanism to expedite grievance redressed. Its report is to come next month. (BS 13.12.2010)

Banks use 'negative list' gambit to make defaulters pay up

To recover dues, bankers are trying to put the fear of God into obstinate defaulters to pay up. And how? By making it plain that they could get reported to the Credit Information Bureau, banks have been able to achieve a modicum of success in recoveries. Some defaulting borrowers do see the writing on the wall when they are sensitised about the deleterious consequences of finding their names on the bureau's negative list, say bankers. By delivering the simple key message that the doors of the banks will be shut for the defaulters once they are on the negative list, banks are gradually making headway in recoveries. The prospect of future banking relationship getting jeopardised convince some defaulters to repay loans.
According to the Credit Information Companies (Regulation)Act 2005, every credit institution has to become member of at least one credit information company. Credit institutions, including banks and housing finance companies, have to provide credit data (positive as well as negative) to the credit information company. By tapping into a credit information bureau, credit grantors get complete picture of the payment history of a borrower.(BL 22.11.2010)

Banks forging tie-ups with brokerages

Banks are increasingly looking at online equity trading as an opportunity to boost their fee income and also increase the proportion of low cost current and savings account (CASA) deposits in total deposits. The recent spate of public issues, especially public sector units, has led to a revival of the retail interest in the equity markets. The total no. of demat accounts with CDSL and NSDL crossed the 1 crore mark and is now at 1.80 crore.
Banks are also hoping that the increase in the investment limit for retail investors in primary markets ( from Rs 1 lakh to Rs 2 lakh) will see more inflows into the equity markets. With State Bank of India, ICICI Bank and HDFC Bank have their own subsidiaries that offer online booking, others are tying up with online booking firms to offer the same, as they look for more avenues to increase fee income.( BL 19.11.2010)

SBI to open exclusive branch for youth

Trendy music, a cafeteria for chatting over a cup of coffee and catchy ambience. It's an exclusive "Youth branch" to be set up by State Bank of India in Andhra Pradesh in a first-of-its kind initiative in the country . This is a new concept and the idea is to project SBI as a bank for youth too, Mr. Shiv Kumar, Deputy Mananaging Director, SBI, told newspersons after the formal launch of e- payment system for commercial taxes in Andhra Pradesh on Thursday.
The proposed branch, to be set up in about three months, may have criteria such as age for opening accounts. "We were working on deciding an age bracket- something below 35 years of age", he said. The nature of branding/naming of the branch is also being discussed.
SBI now believes that a segmented approach to cater to different types of customers is the way to go.Further, with a view to helping its retail and corporate customers to pay commercial taxes, SBI has launched an e- payment platform.(BL 19.11.2010)