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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TARGETTING INFLATION-Govt to allow more private banks

TARGETTING INFLATION-Govt to allow more private banks  The Governor of Reserve Bank of India Mr.Rajan will explain to the new Government the need to keep inflation under control. Further keeping interest rates relatively high may be un avoidable to achieve that government officials famillar with RBI .RBI which is in the process of formulatingnew guidelines for bank licence was unlikely to allow corporate houses set up new banks in the...

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RBI AUDIT 2014- Big Loan Defaulters to Face RBI Audit

RBI AUDIT 2014- Big Loan Defaulters to Face RBI Audit Reserve Bank of India has taken upon itself the task of investigatinf bank frauds after a series of inquiries by banks themselves i high profile cases such as those involving Deccan chronicle and Kingfisher Airlines yielded very little. The Board of Financial Supervision chaired by RBI Governor Mr.Rajan, has in fact cleared a proposal that the central bank will conduct an independent forensic...

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RBI customer norms 2014- RBI issues fresh norms to curb customer discrimination

RBI customer norms 2014- RESERVE BANK OF INDIA ISSUED FRESH PRESCRIPTION FOR BETTER CUSTOMER SERVICE: 1. For calculating base rate ,the marginal cost of funds be factored if average maturity of deposit is lower. 2. Floating rate loan covenant to have interest rate reset periodicity and resets allowed on those dates only. 3. Sunset clause for benchmark prime lending rate,no extra spread/fees when customer shifts to base rate. 4. IBA to develop...

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Bharatiya Mahila Bank news in India- Mahila Bank to offer services via mobile Van

Mahila Bank To Offer Services Via Mobile Vans- Bhartiya Mahila Bank Limited ,India first women s bank is considering to have mobile banking  vans fitted with automatic teller machines (ATM) to cater to customers living in areas where there are no bank network. We can not expect women to visit our Hyderabad branch for far off places around the city.Also ,we cannot have a wider branch network to be present in every neighborhood like...

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RBI ALLOWS 5 PRIVATE BANKS TO IMPORT GOLD

TOP 5 BANKS ALLOW TO IMPORT GOLD The Reserve Bank of India has allowed five domestic private banks to import gold.Sector officials said this could be a significant step towards easing of tough  curbs o the metal imposed last year to cut the country trade deficit. The central bank allowed imports by  HDFC Bank,Axis Bank, Kotak Mahindra Bank,IndusInd Bank,YES Bank ,officials at the respective banks told Reuters.Two sector sources confirmed...

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Live Currency Exchange Rates Free currency converter

Live Currency Exchange Rates Free currency converter Live Currency Exchange Rates Free currency converter Currency Converter...

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RBI Prepayment charges for floating rate home loans

RBI GOING TO SCRAP  PRE - PAYMENT CHARGES: The Reserve Bank of India is going to order to the Banks to scrap the pre -payment charges on all the small and corporate loans. RBI observed that there is no justification for banks to charge pre-payment charges on any loan since the entire system has moved to floating rates . Banks are seen to be discriminatory between retain and big corporate clients who often arm twist lenders to charge them...

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DIFFERENTIATED BANKING LICENCE- RaghuramRajan pitches for differentiated bank licences

RaghuramRajan differentiated bank licences - RaghuramRajan supports for differentiated bank licences The differentiated banking licence are more appropriate for some private entities aspiring to setup banks in India before granting in principle approvals for banking licence to two companies , Bndhan Financial  Services and IDFC. The banking regulator RBI has assessed various  applications. RBI...

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Axis Bank new loan plan 2014- Axis Bank new plan 30-year home loan for lower income Group

30 YEAR LOAN FOR  THE LOWER INCOME:  Axis Bank has launched "ASHA " Home Loan a 30 year loan product for first time in the lower income segment.The risk factor is higher in this segment so that the rate of interest will be 10.75% in variable rates and 11.75%at fixed rate for the entire 30 years. ASHA home loan will offer loans to customers even with family income from Rs.8000-10,000 per month and above.Customer can pool their...

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2014-15 HOME BUYERS Loan- IN 2014-15 HOME BUYERS MAY GET SOON 90% LOAN:

IN 2014-15 HOME BUYERS MAY GET SOON 90% LOAN At present lenders offer maximum loan up to 80% of the property value. The National Housing  Bank is considering proposal that seeks to allow lenders to give loan up to 90% of the property value as home loan.  The proposal is for above Rs.20 lakh loans that carry mortgage guarantee cover.Housing finance companies enter into a contract with mortgage guarantee companies...

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RBI keeps repo rate unchanged ahead of polls 2014-15

RBI repo rate 2014-15,  RBI keeps repo rate remains same at 8 per cent . LENDING RATES UNCHANGED RBI Governer Mr. Rajan today focused on banking policy where they had indicated that lending rates will remain the same and no further hikes are expected in this year and if inflation remains comfortably low.Further the EMIs will not rise immediately. GROWTH PROSPECT 2014-2015 RBI forecast for India's GDP growth in the...

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