1. There are happy tidings for the country’s financial inclusion policy. In a recent speech in London, Ms Usha Thorat, Deputy Governor, RBI, revealed that between March 2006 and 2007 as many as 60 lakh no-frills bank accounts were opened. New account holders should be enabled to have access to an array of banking products, so that there is also financial deepening.
2. With a view to addressing a variety of challenges faced by micro-finance institutions, National Bank for Agriculture and Rural Development (Nabard) has decided to evolve a model institution that ensures transparency in accounting disclosure and coercive-free recovery methods.While Nabard subscribed to 51% for this, the rest would be contributed by banks and State Governments.
3. Now one can buy jewellery not only on credit and but also pay in interest-free monthly instalments. Gitanjali Gems Ltd has in partnership with ICICI Bank launched ‘Jewellery Credit Card’ first of its kind in India. Purchases of Gitanjali products made by using the newly launched gold credit card will be eligible for discounts (5% on purchase up to Rs 10,000 and 7.5% beyond Rs 10,000). At the same time, the invoice value can be paid in interest-free EMI for three months/ six months.
4. Banks have started lowering bulk deposit rates (typically Rs 15 lakh and above). According to bank officials, some have even slashed it by 2 percentage points and may lower it further. But bankers are not sure if the trend will translate into similar downtrend in retail deposits or lending rates immediately.
5. Urban co-operative banks (UCBs) with a capital adequacy ratio not less than 9 per cent and with net non-performing assets (NPA) below 10% can now open new branches and extension counters (EC). The banks will also be required to fulfil certain other eligibility criteria for opening of new branch and extension counters, according to Reserve Bank of India notification.
6. The Chairman, Economic Advisory Council to the Prime Minister, Dr C. Rangarajan, has underlined the need to modify the country’s credit and financial services delivery system to achieve greater financial inclusion.This, he said, called for institutional changes, and innovative ideas to link bank branches with millions of farm households and other approaches will have to be thought off.
7. State Bank of India plans to formally launch an online share trading facility for its customers in Delhi on Wednesday. This facility would however be available at select branches only.
8. Tired of receiving calls for a new credit card or an attractive loan offer on phone? A customer unwilling to receive such calls can now heave a sigh of relief with the Reserve Bank of India asking banks not to engage telemarketers (DSAs/DMAs) without a valid certificate from the Department of Telecommunications.“Banks should not engage telemarketers who do not have a valid registration certificate from DoT, Government of India, as telemarketers,” said a RBI notification.
9. Centurion Bank of Punjab plans to raise Tier-I capital of about Rs 500 crore through qualified institutional placement of equity shares. This approval is subject to shareholder, regulatory and statutory approvals as applicable, said a statement from the bank. The capital adequacy ratio for the bank stands at 11.1 per cent, with Tier-I capital of about 9.9 per cent and Tier-II capital of about 1.2 per cent. The proposed exercise would enable the bank to sustain its growth a nd build on the business volumes and profitability over the ensuing quarters, said the statement. “This resolution is an enabling resolution for raising capital in the future, and the bank does not necessarily have to raise this capital immediately,” it said. Centurion Bank said it will finalise the specific timing for raising such capital from time to time and would do so when required.
