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. 

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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 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. 

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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 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.

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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 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.

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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 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 

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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

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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 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.

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