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 near future .
RBI will talk to the next government on the inoprtance of inflation control , the inflation targer and the need to stay the course which the central bank is following.

RBI strenghthing its supervisory capabilities before issuing the new licences to the corporates.RBI hold a dialouge with the new government on a number of areas including the need oto present a credible budget.

The economy currently skating along at bottom but growth could pick up by at least one percentage point if measures were taken to unlock projects tied up in red tape.
we could see growth between 5.5% to 6% nudging the latter in the second half of hte current fiscal year. 

Read More

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 audit of corporates declared fraudulent by banks. Independents audit ,however will be restricted to corporates that have borrowed more than Rs. 1000 crore.
The Hyderabad based Decan Chronicle borrowed Rs.4000 crore from a consortium of 18 lenders ,who allege the company misused the banking system by borrowing from  one set of lenders without keeping others.

Banks officials say the central banks move reflects poorly on the banks and reaffirms the fact that banks and some promoters have developed cozy ralationship that has  led to thousands of crores of bad loans.

Independent forensic audit is one of the many steps taken by the RBI to check the rise in stressed assets in the banking system for instance RBI decided to incentivise lenders who take quick action to resolve such cases and penalise those who sit on them. Banker say the findings from forensic audit will enable RBI to devise policies that will help it keep a close watch on the creditor borrower relationship and quickly step in when there is misuse. 

Read More

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 new benchmark for floating loans.
5. Publish interest rates,fees and charges on websites.
6. Provide annual percentage rate (APR) representing the total cost of credit on an annualized basis.
7. Uniform terminology to be used by all banks.
8. Standardized loan format for retail customers covering terms and conditions.
9. Benifit of interest reduction while pre-payments to be given on the day the money is received by bank
    and not wait for the next EMI cycle dates.
10. Spread can only be increased if credit risk profile of customer deteriorates.

Read More

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 the established public sector banks. Therefore we are thinking of launching mobile banking vans that visit different locations at the fixed time schedules .

BMB Chairperson and Managing Director Usha Ananthasubramanian toil reporters after inaugurating a branch on March 22.

According to Ananthasubramanian , the bank has nineteen branches so far and by the end of this month another four five branches would come up . There are plans to open 55-60 more branches in he next financial year .Each branch will be manned by five six staff,out of this senior positions ate being filled by people brought from other banks on three year deputation. Staff manning form offices will be recruited by BMB.

Read More

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 the names of the banks.

The Government had enforced an 80/20 rule in July, making it mandatory to export a fifth of all gold imports.Under that ,only six banks and three state run trading agencies that had facilitated export of gold or jewelry in three years were allowed to import. 

The six banks were mostly state run lenders . The central bank has permitted banks though they had not facilitated any exports of metal or jewelry in three years.

RBI ALLOWS 5 PRIVATE BANKS TO IMPORT GOLD List-

1. HDFC Bank

2.Axis Bank

3.Kotak Mahindra Bank

4.IndusInd Bank

5.YES Bank 

Read More

Live Currency Exchange Rates Free currency converter

Live Currency Exchange Rates Free currency converter

Live Currency Exchange Rates Free currency converter

Currency Converter

Read More

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 lower because of their sheer size and have no penalty clause.The tenure is extended when big corporate default and they restructure their loan portfolio and pay lower rates of interest.
Central Bank told that all the prepayment be abolished who did not wish to be named when all the loans are based on floating rates where is the question of penalty.

Bank loan are retail loans while the share of small and medium enterprise loan is about 15% .In the monetary policy review last week ,RBI Governor Mr.Rajan had advise bank to stop charging prepayment charges on floating rate loans and non maintenance of minimum balance.Bank may argue that there is a cost involved in offering services such as cheque book charges ATM charges( transaction ) and Account Statement necessitating a minimum balance of Rs.20000/-.Charges for non maintenance of minimum balance vary between Rs.500 to 2000 .this is not the first time bank and the sector regulator may be on collision course .

Three years ago Reserve Bank of India had directed banks not to charge any penalty on prepayment of home loans ,after a similar nudge did not work.However banks continue to charge prepayment penalty on other floating  rate loans products sch as education,personal and car loan.

Mr.Mahajan said that if a customer is unable to maintain minimum account, banks should migrate such accounts to basic banking accounts,where they phase out value added services.

Read More

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 felt comfortable  with the Bimal Jalan committee .RBI opened up the possibility that will allow applicants to apply again ,  once they start giving licence on tap , as well as create differentiated banking licence.some of the applicants will be better off applying for differentiated licences rather than full licence as per version of Mr Rajan Governor  RBI.

Reserve Bank of India is going to offer only two New licences after a gap of a decade , due to public governess it considered this the most appropriate stance.

Several large industrial houses  Aditya Birla Group ,Reliance and bajaj Group and finance companies Shri Ram Capital ,L&T finance holding,Muthoot Finance had applied for a banking Licence.

Some of the entities that did not qualify for a full fledged banking licence in this round could re apply in the future.  In a discussion paper on India's Banking structure (released in Aug 2013) the banking regulator has said banks had shown significant progress in financial inclusion and in improving the  quality of risk management but added a lot more needs to be done.Mr Rajan added that RBI opened  up the possibility that will allow applicants to apply again, once they start giving the licence.  

Read More

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 family income instead of depending upon their individual income.

The product offers loans as small as Rs.1.0 lakh and up to RS.15 lakh in small town and up to Rs. 25 lakh in big town .

ASHA Home loan can be enjoyed by both salaried and self employed resident Indians.The product offer loan up to 90% of the property value.The product enables customers to purchase properties an area measuring 325 sq.ft. and above.

Loan can be taken under this scheme for new house ,resale ,ready ,under construction property .If you have a plot and you want to construct your house thereon , it also apply on that. 

Read More

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 at the time of loan origination.

Recently Dewan Housing Finance concluded the first ever mortgage guarantee backed securitisation deal for a pool of Rs.37.83 crore home loan coming from 288 loan accounts a person familiar with the matter .Each loan is below Rs.25 lakh falling in the category of Priority Sector Lending.

According to the Mr. Verma , Managing Director of National Housing Bank ,mortgage backed guarantee provides protection from possible defaults long term lending for housing loan up to 20-25 years.  

Read More

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 year 2014-15 about 5.5% from the projected 4.9%in 2013-14, ADB  forecast India's GDP growth during the year 2014-15 is 5.5%.

BIG RELIEF TO THE CUSTOMER OF THE BANKS:-

RBI has asked banks not to charge penalty for future for maintaining minimum balance in inoperative accounts from their customers.

Read More