Almost all the banks are offering mobile banking facilities. Now in few months the bank customers will be able to withdraw, deposit and transfer cash using mobile phones that too without opening a conventional bank account. The government is finalizing the norms related to elaborate technology and regulatory architecture for delivering banking services through “mobile-linked no frills accounts.”
Most probably by September government will come out with guidelines and roll out the first such account as it aims to bring about financial inclusion of all section by spreading banking services in remote areas.
Meanwhile government has identified 73,200 villages having a population of more than 2,000 people where it will be providing mobile-linked basic bank services by March 2012.
In India there are about 500-million-plus mobile phone network, government aim to use these network to offer basic financial services, especially in those areas where still there is no bank branches.
An anonymous official told most likely the scheme will be rolled out from Orissa, in the state the mobile phone coverage is below 50 per cent through this roll out it aims to serve twin objectives of spreading banking services and cellular phone penetration.
At present the customers using their mobile phones are able to deposit up to Rs 5,000 with telecom operators.
This amount can be used for merchant transactions, but customers cannot do physical transfer of funds outside of the banking system. Such accounts will also involve less paper work. It will require valid government ID scheme.
Inter-Ministerial Group (IMG) recommended timelines for mobile-banking solutions which were finalized earlier this month.
An official who was present in the meeting told the National Payment Corporation of India, a non-profit company that provides low-cost infrastructure for providing payment services among banks, will be helping in preparing the back-end technology solutions. This will link the mobile number of the person to his no-frills bank account. Finally, it will be incorporated with the Unique Identity number once it gets operationalized.
Another official informed, “The roll out of the first accounts is likely to begin by September 2010.”
Monday, July 26, 2010
Thursday, July 22, 2010
Bajaj Group keen in venturing into banking space
Like other big industrial houses, the Bajaj Group is interested in venturing into banking but there are some hurdles in the way as the regulator is not interested in issuing new banking licenses to large industrial houses. On the other hand Rahul Bajaj, chairman of Bajaj Finserv and Bajaj Auto Finance, is optimistic about getting licenses.
The Reserve Bank of India will be releasing draft of guidelines on the issue of new banking licenses to corporate thus company’s entry will depend on these guidelines.
The Delhi government has not put any restrictions on giving banking licenses to private corporate groups and NBFCs and is open to reconsider the norms. But, RBI is not interested in allowing industrial houses to enter into banking space.
The shareholders of Bajaj Auto Finance and Bajaj Finserv are quite interested in entry of group into banking. Bajaj told shareholders of Bajaj Finserv and Bajaj Auto Finance, “We are in principle interested in getting into banking.”
Bajaj said, denying industrial houses banking licenses is not justified, instead the groups should be given license as they had the track record, financial standing and the net worth needed however, RBI can put restrictions on loans and investments to the group companies as safeguards. He suggested, “Give it to the good guys and not those who will run away with the depositor’s money.” He said, “We can’t go back to the old policies in this age and time.”
Bajaj accredited that RBI steered the economy well in difficult times, managed interest rates and liquidity well but he disagreed on the issue of not allowing the large industrial houses into banking.
Either Bajaj Finserv or its subsidiary, Bajaj Finance, which will be used to get into banking, will be depending on their eligibility criteria. He said, “We intend to do it as a new company. It will need capital of Rs 500 to Rs 1,000 crore and BFL will not be able to do it, so it could be Bajaj Finserv.”
The Reserve Bank of India will be releasing draft of guidelines on the issue of new banking licenses to corporate thus company’s entry will depend on these guidelines.
The Delhi government has not put any restrictions on giving banking licenses to private corporate groups and NBFCs and is open to reconsider the norms. But, RBI is not interested in allowing industrial houses to enter into banking space.
The shareholders of Bajaj Auto Finance and Bajaj Finserv are quite interested in entry of group into banking. Bajaj told shareholders of Bajaj Finserv and Bajaj Auto Finance, “We are in principle interested in getting into banking.”
Bajaj said, denying industrial houses banking licenses is not justified, instead the groups should be given license as they had the track record, financial standing and the net worth needed however, RBI can put restrictions on loans and investments to the group companies as safeguards. He suggested, “Give it to the good guys and not those who will run away with the depositor’s money.” He said, “We can’t go back to the old policies in this age and time.”
Bajaj accredited that RBI steered the economy well in difficult times, managed interest rates and liquidity well but he disagreed on the issue of not allowing the large industrial houses into banking.
Either Bajaj Finserv or its subsidiary, Bajaj Finance, which will be used to get into banking, will be depending on their eligibility criteria. He said, “We intend to do it as a new company. It will need capital of Rs 500 to Rs 1,000 crore and BFL will not be able to do it, so it could be Bajaj Finserv.”
Tuesday, July 20, 2010
Standard Chartered launched online remittance service for NRIs
Standard Chartered Bank has launched its online remittance service Transfer2Home for NRIs.
According to a press release by the bank, using this service the customers will be able to transfer money to India from the US, UK, UAE, Singapore, Hong Kong and Bahrain.
To offer remittance service in these countries bank has tied-up with TimesofMoney.
TimesofMoney is a leading payment service provider and has tie-up with various financial institutions offering them money transfer service. Under its private label remittance service it offers services to the global cross-border money transfer industry.
Its transaction processing is fully compliant with payment norms suiting regulatory framework in several countries worldwide.
The release said, the bank has also signed strategic deal with BNY Mellon to offer Automated Clearing House (ACH) based remittance service from the United States.
BNY Mellon offers asset management and securities servicing globally. BNY Mellon’s Treasury Services group has high-quality expertise in global payments, trade services cash management, capital markets, foreign exchange and derivatives thus helping clients make payments, optimize cash flow, and manage liquidity more efficiently around the world in more than 100 currencies.
According to a press release by the bank, using this service the customers will be able to transfer money to India from the US, UK, UAE, Singapore, Hong Kong and Bahrain.
To offer remittance service in these countries bank has tied-up with TimesofMoney.
TimesofMoney is a leading payment service provider and has tie-up with various financial institutions offering them money transfer service. Under its private label remittance service it offers services to the global cross-border money transfer industry.
Its transaction processing is fully compliant with payment norms suiting regulatory framework in several countries worldwide.
The release said, the bank has also signed strategic deal with BNY Mellon to offer Automated Clearing House (ACH) based remittance service from the United States.
BNY Mellon offers asset management and securities servicing globally. BNY Mellon’s Treasury Services group has high-quality expertise in global payments, trade services cash management, capital markets, foreign exchange and derivatives thus helping clients make payments, optimize cash flow, and manage liquidity more efficiently around the world in more than 100 currencies.
Friday, July 16, 2010
Use of plastic money on increase in India
In Western countries using credit and debit cards is very common thing. Now, in India it is becoming a part of Indian shopping culture. However western countries have been facing credit card abuse by shopaholics that put an entire country in debt. In India, it is yet to be seen whether the younger generation is able to handle in better way.
Now days many college students have debit cards so that, they don’t have to ask for cash from their parents. Therefore it becomes necessary to see how students take care of this.
Anirudh Wodeyar, a student says, “I feel that credit cards, more than debit cards, can prove to be dangerous for youngsters like us because of their higher limits. Having either makes us feel as though we have an unlimited source in our wallets with which we can whip up a treat to our friends or host a party or anything else.”
However most of the youngsters know how to handle cash, then also, sometimes they might feel difficult to deal if frequenting restaurants and theatres become a part and parcel of daily life.
Anirudh points out, “More often than not, students are aware that they shouldn’t spend more than a certain amount of money,” says Pooja, a student. “But the peer pressure of being called kanjoos can be tough to handle.”
According to some it is easy to keep track of spending with card as it gives an idea of where exactly your money has gone. Abhijith Vijayendra, a third year engineering student says, “Spending through cash is not as effective as paying for the credit card bill in one shot at the end of the month. People who are responsible realize how much they have actually spent and keep a tab on the expenses through such things.”
It is not that youngsters over spend with cards, the splurging problem can be seen in adults also. Anirudh says, “I’d say in general, with reference to the middle class youngsters who dominate
today's youth, we’re pretty careful with money whether it’s spent electronically or in paper.”
In fact students tend to be careful as they know, they aren’t earning. Some students still prefer cash over cards realizing, the pressure might have to deal with the card.
Abhijith says, “Spending in cash is better because you don’t get that massive accumulated bill or statement at the end of the month. As they say, Zor ka jhatka dheere se lage.”
Now days many college students have debit cards so that, they don’t have to ask for cash from their parents. Therefore it becomes necessary to see how students take care of this.
Anirudh Wodeyar, a student says, “I feel that credit cards, more than debit cards, can prove to be dangerous for youngsters like us because of their higher limits. Having either makes us feel as though we have an unlimited source in our wallets with which we can whip up a treat to our friends or host a party or anything else.”
However most of the youngsters know how to handle cash, then also, sometimes they might feel difficult to deal if frequenting restaurants and theatres become a part and parcel of daily life.
Anirudh points out, “More often than not, students are aware that they shouldn’t spend more than a certain amount of money,” says Pooja, a student. “But the peer pressure of being called kanjoos can be tough to handle.”
According to some it is easy to keep track of spending with card as it gives an idea of where exactly your money has gone. Abhijith Vijayendra, a third year engineering student says, “Spending through cash is not as effective as paying for the credit card bill in one shot at the end of the month. People who are responsible realize how much they have actually spent and keep a tab on the expenses through such things.”
It is not that youngsters over spend with cards, the splurging problem can be seen in adults also. Anirudh says, “I’d say in general, with reference to the middle class youngsters who dominate
today's youth, we’re pretty careful with money whether it’s spent electronically or in paper.”
In fact students tend to be careful as they know, they aren’t earning. Some students still prefer cash over cards realizing, the pressure might have to deal with the card.
Abhijith says, “Spending in cash is better because you don’t get that massive accumulated bill or statement at the end of the month. As they say, Zor ka jhatka dheere se lage.”
Wednesday, July 14, 2010
Yes Bank, Poalim Capital together to offer expertise to firms on cross-border deals
YES Bank a private sector lender and Poalim Capital Markets, a leading Israeli investment bank and a part of Bank Hapoalim B.M inked a co-operation-agreement to offer advice to Indian and Israeli firms on cross-border deals.
As per this agreement YES Bank and Poalim Capital Markets will able to provide their combined expertise, strong local knowledge and excellent corporate relationships to open up mergers and acquisitions, joint ventures, equity raises and merchant banking opportunities for their respective clients. This will help in increase the investment flow in the Indo-Israeli corridor.
YES Bank's Managing Director and CEO Rana Kapoor said, "This alliance with Poalim Capital is another step forward in our commitment towards the Indian and Israeli business corridor. This privileged partnership will enable us to further enhance our investment banking services and facilitate overall development of both the nations through strategic interventions."
Poalim Capital Markets's CEO and President Amir Aviv said, "In our strategic plan for 2010, we marked India as an important geography to expand our investment banking capabilities, and after careful consideration of various alternatives we decided to join forces with Yes Bank."
As per this agreement YES Bank and Poalim Capital Markets will able to provide their combined expertise, strong local knowledge and excellent corporate relationships to open up mergers and acquisitions, joint ventures, equity raises and merchant banking opportunities for their respective clients. This will help in increase the investment flow in the Indo-Israeli corridor.
YES Bank's Managing Director and CEO Rana Kapoor said, "This alliance with Poalim Capital is another step forward in our commitment towards the Indian and Israeli business corridor. This privileged partnership will enable us to further enhance our investment banking services and facilitate overall development of both the nations through strategic interventions."
Poalim Capital Markets's CEO and President Amir Aviv said, "In our strategic plan for 2010, we marked India as an important geography to expand our investment banking capabilities, and after careful consideration of various alternatives we decided to join forces with Yes Bank."
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