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Staff Training Centre, Salt Lake,
Kolkata
Important News highlights : Banking & Finance
News Update
30-04-2004
Compiled
by: Abhijit Kr Ghosh, Faculty
16-04-2004
RBI to probe bank?s retail loan growth
The annual inspection exercise of RBI this
year is focusing on commercial bank?s retail loan books. The regulator is looking into home loans , car loans,
and other consumer loans to check whether there is any bubble building up in
the industry. Frauds perpetrated by retail loan borrowers have not escaped
the regulator?s eye and any fresh irregularities unearthed now is likely to
impact the retail loan growth . RBI have already called upon the Banks to
tighten their existing systems and
control to prevent occurrence of frauds
as it is apprehensive of quality dilution in the war for increased
market share. The possibility of lending institutions facing a home loan
bubble has prompted the central bank to set up two separate committees, one
on the modus operandi of frauds and the other on to sensitize the overzealous
banks going in for over 100% growth every year.
RBI directs Banks
to discontinue cheque drop box facility.
RBI
have directed new Pvt & Foreign Banks to acknowledge cheques deposited at
branches and not insist
the customers to use the drop box facility. Also directed to make provision
that will allow customers to collect cheque
books from branches. Banks have been asked to specify the transaction details to pass books and
account statements.
Frauds cost the
world $ 1 Trillion every year
Cost estimated due to corruption both in rich and developing countries is around USD 1 Trillion as per a World
Bank Institute study. According to Daniel Kaufman , the institutes Director
for Governance, this is the estimate for bribes paid worldwide.
Economic Times
17-04-2004
Reliance Info & SBI ties up for ATM connectivity via
wireless
Reliance Info has entered into an agreement with SBI for rendering CDMA
wireless connectivity to its 100 ATM?s across the nation which marks the
largest in the country migration of ATM to wireless connectivity mode. The
pilot venture went with the installation of floating ATM on the ferry boat
plying between Kochi & Vypeen in Kerala. CDMA based wireless connectivity
provides secure and cost efficient
quick deployment of ATM?s. With this process SBI emerges as the leader in the
new generation banking practices.
RBI Caps rates on NRE Deposits
In a bid to check arbitration dollar deluge RBI capped the ceiling on interest offered to
Non- Resident (External ) term deposits at a rate not exceeding the Libor /
Swap rates for dollar for the corresponding maturity .Also with a view to
aligning the interest rates on various categories of NRE deposits, it
was decided to link the interest rates on savings
deposits too with Libor/ Swap rates.
Economic Times
18-04-2004
Forex reserves exceed
external debt
According to RBI?s latest weekly statistical supplement
, forex reserves have shot up further to touch USD 116 .06 billion as on
April 2004. This is higher than the outstanding external debt of USD 112.10
billion for end 2003. In other words, the country?s forex kitty today
provides for almost 100% coverage
for its outstanding external debt.
19-04-2004
Foreign holding in Banks nearing vertical limit
Foreign investment in a growing number of
Indian banks is close to hitting the upper limit set by the Govt, narrowing
the headroom available for off-shore investors to buy more. The net foreign
holding including FII?s, NRI?s. ,
OCB?s & GDR?s for two large PSU Banks (BOB & Oriental Bank of
Commerce) and a small
Pvt Bank (Centurion Bank) have already reached the trigger limit of 18% &
72% respectively. The current foreign holding in ICICI Bank is already
nearing the trigger limit at 72% .For the PSB?s the trigger limit has been
set at 18%. The current foreign holding in SBI equity is around 19.3%. The
latest data on holding
level & Cap is as:
Name of the Bank Total foreign holding Cap
STATE BANK OF INDIA 19.4% 20%
ICICI Bank 72.7% 74%
Bank of Baroda 18% 20%
Oriental Bank of Commerce 18% 20%
Centurion Bank 72% 74%
Economic Times
20-04-2004
SBI to help customers shift to
e-banking
SBI has started to give top priority to
technology products to make the
customers feel the technology based products like ATM , Internet Banking.
According to the Chief General Manager (Chennai Circle), bank is also
planning to introduce shortly e-Payments and Salary accounts on the Net and these products will also be
beneficial for the Pensioners. The focus in Chennai is also to refurbish the
interiors of select branches , growth in
retail lending and business process re-engineering and bringing under core-banking 2800
branches by March 2006.
Business Line
24-04-2004
Web based new design ATM?s to hit rural India
Finger print access, web camera based low cost ATM?s designed as cash
dispenser
and easy to use for rural mass is being tested with network integration
between the machine and remote server at IIT Madras. The maker is Vortex
Engineering a Chennai city based firm
floated by IIT ALUMNI. Costing around Rs 40,000/ each , the GRAMATELLER Indi
will do away with PIN and just
a thumb impression is enough to get
cash from the machine. While a magnetic stripe card is used for a normal cash
dispensing in ATM, in Gramateller Indi
a user only has to display a smart card and authenticate oneself through the fingerprint identification module. The machine will send
this image through a personal computer
that has a web camera to a remote server of the bank. When the remote
server confirms the
identity by comparing the images that are stored in the server, the person can use the key board of the
machine to specify the cash required and subsequently will dispense cash. The smardcard to be issued can also be used for offline application including
proof of identity . The bank and kiosks where the machines will be
installed will be networked through CorDECT connectivity, which offers
simultaneous voice (telephone) and data (internet) services. All communication to and
from the machine will be secure . For the kiosk operator, there is no
investment except the PC, Peripherals and connectivity. Bank will invest the
machine.
Business
Line.
25-04-2004
Designer look for SBI core banking branches.
As a part of its business process re-engineering initiative SBI is setting up
to spruce up its core banking solution (CBS) Branches by translating the
brand image into a standardized visual identity. SBI is currently considering
hiring an interior design firm to translate the bank?s brand image, and the
branch design developed by the
bank to be translated into a
standardized visual identity in terms of the layout, look and feel of CBS
branches . The firm will be entrusted to design the look and feel and create a design manual , which can be
used to rollout the standard new format across the country. The bank has
already introduced CBS at 39 branches
and three branches of Associate Bank. The number would be gradually
enhanced to
2600 to 3000. Approximate cost to be incurred per branch is estimated to be around Rs 25 lacs and
lookout is on for obtention of EoI (_expression_ of interest ) from
firms.
Business Line
26-04-2004
SEBI plans
implementation of T+1 Settlement by Oct?04
According to the Chairman SEBI , if RTGS can take care
of the transaction settlement process and Banking industry is able to expand
the scope of both in terms of number of players and also the nature of transactions put through, and SEBI finds the
situation to its satisfaction by
another couple of months will announce the T+1 settlement in the country.
Business Line
26-04-2004
Online Tax Accounting(OLTAS) to be operational from June 1st
OLTAS , a simplified tax payment
system will become operational from 1st June?2004. The new system
aims at streamlining payment procedure at the collecting branches of designated
banks. According to income-tax department,
the OLTAS will also help in
streamline the accounting of direct tax payments
as the department collects more than Rs 1,00,000/ crores as direct taxes.
During 2003-04 about Rs 64,000 crores was collected as Corporation tax and more than Rs 40,000 crores as income tax
which it seeks to increase to
Rs 80,000 crores as Corporation Tax and Rs 46,000 crores as Income Tax during
current financial year.
Under the new scheme, all authorized tax collecting branches will be
networked and integrated with the tax information network (TIN) and
also I/T Dept. The new system envisages single copy challan cum
acknowledgement enabled with challan identification number (CIN) instead of
present 4 copy, and will have fewer fields. This will facilitate correct
credit of payment by tax payers and faster on line accounting.
Financial Express
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