RECAPITALISATION OF BANKS:

RECAPITALISATION OF BANKS: Finance Minister in their budget 2014-15 raised  recapitalization of the bank.Recapitalization of banks could also be high on the priority list of the government. Stressed assets of Indian banks amount to 10 per cent of total bank loans.  According to Reserve Bank of India (RBI) estimates, the total quantum of stressed assets, that includes non-performing assets, is about Rs 10,00,000 crore. There is a possibility that the government might set up a fund that buys out stressed assets of banks, freeing...

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CENTRALISED RETAIL BANKING BOUTIQUES: Allahabad Bank opens seven more CRRBs at Surat ,Vadodra,Dunlop Bridge (Kolkata)  Banglore, Vijayvada City,Mohali & Hawrah thereby increasing the total numbers of CRRBsthroughout the centralised  retail banking boutique is a specialised delivery channel whichdeals exclusively  with Housing Loan,Car Loan,Commercial Vechicle loan, Education Loan and saral loan.  ...

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RBI tightens norms for credit card issuers on minimum dues

RBI tightens norms for credit card issuers on minimum dues RBI SETS NORMS FOR LATE FEE ON CREDIT CARDS: RBI has told banks that the can charge late fees only in the next billing cycle following a missed payment. At present  card issuing banks charge a late fee for any payment made after the due date. The late fee imposed by card issuers ranges between Rs.100 and Rs.700 depending on the outstanding amount above Rs.20000 most...

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INTEREST RATE RBI BEST TOOL TO CONTROL INFLATION

INTEREST RATE RBI BEST TOOL TO CONTROL INFLATION : Add caption RBI Governor Mr.Raghu Ram Rajan said the "BEST TOOLS" available with the central bank to control price rise is interest rate. Our best tool to control inflation is interest rate he said addding the government too has tools like increasing agricultural production and inproving suppply. Both need to work together and will work together . we were expecting some increase in the CPI...

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Minors over 10 years can operate bank accounts: RBI

Minors can operate bank accounts: RBI RBI has allowed banks to offer additional facilities as internet banking ,ATM,debit card and cheque book to a minor account holder. Banks should not allow a minors account to be overdrawn and that these accounts should always remain  in credit. RBI has given the leeway to banks to fix the minimum age at which they will allow minors to operate saving bank accounts independently . In a separate...

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FINANCE MINISTER ASKS PSB CHIEFS TO INCREASE USAGE OF SARFAESI LAW TO RECVOER BAD LOANS:

FINANCE MINISTER ASKS PSB CHIEFS TO INCREASE USAGE OF SARFAESI LAW TO RECVOER BAD LOANS: The finance ministry has asked public sector banks to increase the usage of Sarfaesi Act provisions to quickly recover bad loans. it also wants PSBs to adopt the latest sophisticated risk management tools to effectively measure risks in lending and price loans accordingly so that there is an improvement in the asset quality .These were measures suggested by the new Financial Services Secretary Mr.G.S.Sandhu to the PSB Chiefs. This development comes...

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MANAGEMENT AND GOVERNANCE ISSUE IN PUBLIC SECTOR BANK

MANAGEMENT AND GOVERNANCE ISSUE IN PUBLIC SECTOR BANK: Reserve bank of India and government over bad loans at public sector banks have led to a bitter exchange of notes between the banking regulator and the finance ministry that controls state run lenders. Bad loans at state run banks have gone up at a brisk pace ,unlike their private sector banks. The RBI says this was because of reckless lending to corporate and allegation that has not gone...

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