Standard Chartered Bank, a foreign based lender has launched ‘preferred banking’ for its affluent customers with high income. According to bank press release this new scheme will offer complete solutions including savings, borrowing and protection to the fast-growing emerging affluent segment consisting of individuals with an annual income between Rs 5, 00,000- Rs 40, 00,000.
Sandeep Das, bank's General Manager for Premium Banking informed, "In India, the emerging affluent is a sizeable and rapidly-growing customer segment at 18 per cent per annum with needs that have been largely underserved and undifferentiated. Their needs are quite distinct from those of the mass market and present a huge opportunity for Standard Chartered."
He said, through this new scheme bank aims to target young, upwardly mobile, techno-literate professionals between 25-40years of age, who look for recognition, convenience and rewards and solutions.
The bank release said, under the scheme, customers will be offered faster and simpler mortgage solutions at preferential rates along and they can avail overdraft facility of up to Rs 3, 00, 000 at the inaugural interest rate of 15 per cent. The release also stated, the customers will be offered world credit card as well as preferred platinum debit card, in which they can earn accelerated reward points and petrol surcharge waivers.
Wednesday, August 25, 2010
Friday, August 20, 2010
RBI received 41 pc complaints related to ATM malfunctioning
The Reserve Bank of India receives large number of complaints out of which 41% complaints are related to malfunctioning of Automated Teller Machines (ATMs), a senior official informed. In a function head of RBI's specially-instituted committee on improving customer services, M Damodaran said, "Of every 100 complaints we receive, 41 relate to poor functioning of ATMs...ATMs are supposed to finish the transaction in 60 seconds, but sometimes it feels the earlier (manual withdrawal) which took 15-20 minutes was better."
He said the maximum complaints forward by the customers are about not having received cash in spite their accounts showing debit entry and added majority of the affected customers have uncertainties against the "disinterested" call centre executives, who don’t try to solve their problems. Ex-Chairman of capital market regulator SEBI Damodaran, said, "Technology is changing...you are aiming at getting an ATM transaction done in 20 seconds, but the problems need to be solved in double-quick time."
Damodaran also strongly took up case for consolidation of public sector banks and asked for the logic behind the government owning 26 major banks, and competing among themselves. He said, "A lot of problems arise from the small size of banks. An Indian company doing an overseas acquisition cannot raise money from a local bank it has to go to a foreign bank. We should exert pressure for consolidation of banks."
Regarding the recent discussion paper issued on granting new bank licenses, Damondaran said there is a need for an effective method to ensure that new license holders bring banking to the unbanked areas.
He said the maximum complaints forward by the customers are about not having received cash in spite their accounts showing debit entry and added majority of the affected customers have uncertainties against the "disinterested" call centre executives, who don’t try to solve their problems. Ex-Chairman of capital market regulator SEBI Damodaran, said, "Technology is changing...you are aiming at getting an ATM transaction done in 20 seconds, but the problems need to be solved in double-quick time."
Damodaran also strongly took up case for consolidation of public sector banks and asked for the logic behind the government owning 26 major banks, and competing among themselves. He said, "A lot of problems arise from the small size of banks. An Indian company doing an overseas acquisition cannot raise money from a local bank it has to go to a foreign bank. We should exert pressure for consolidation of banks."
Regarding the recent discussion paper issued on granting new bank licenses, Damondaran said there is a need for an effective method to ensure that new license holders bring banking to the unbanked areas.
Tuesday, August 10, 2010
Union Bank offers OD facility to its non-frill account holders
As a part of its financial inclusion program Union Bank of India will be providing overdraft facility (OD) to all its non-frills account holders.
MV Nair, chairman and managing director, Union Bank of India (UBI), in his presidential address at a financial inclusion conference, in Chennai said this move will help in bringing customers to the bank for transaction also bank will be able to sell other products.
He said, “The needs of the poor for lifecycle events such as medical emergency, wedding among others are pressing and require immediate fulfillment. The bank will use its village knowledge centers, financial literacy and credit counseling centers, rural self employment training institutes (R-SETIs) and other mediums to spread awareness that to meet their emergency needs, an overdraft facility exits should they require.”
To strengthen the financial inclusion plan bank has drawn a medium term financial inclusion plan 2010-2013 for systematic coverage of the unreached and it aims to cover 32,000 villages in the next years that constitute approximately 5% of the projected number of villages in the country.
MV Nair, chairman and managing director, Union Bank of India (UBI), in his presidential address at a financial inclusion conference, in Chennai said this move will help in bringing customers to the bank for transaction also bank will be able to sell other products.
He said, “The needs of the poor for lifecycle events such as medical emergency, wedding among others are pressing and require immediate fulfillment. The bank will use its village knowledge centers, financial literacy and credit counseling centers, rural self employment training institutes (R-SETIs) and other mediums to spread awareness that to meet their emergency needs, an overdraft facility exits should they require.”
To strengthen the financial inclusion plan bank has drawn a medium term financial inclusion plan 2010-2013 for systematic coverage of the unreached and it aims to cover 32,000 villages in the next years that constitute approximately 5% of the projected number of villages in the country.
Monday, August 9, 2010
Central Bank launched online fund transfer service for remitters in USA
The Central Bank of India has launched a new service of funds transfer called CentFast2India, to enable for the remitters in the United States to transfer funds easily to beneficiaries in India through internet banking.
Chairman and MD of Central Bank, S Sridhar said, “This facility offers a hassle-free funds transfer by remitters in the United States to beneficiaries in India through Internet banking. It gives freedom to the remitter in the United States to remit money at his convenience from any bank account anywhere in the US to any account in India”.
In the beginning the maximum limit of transfer of funds is $5000.
Sridhar said this year bank will be focusing more on retail banking business.
He added, “Our focus was on the corporate sector last fiscal. This year we will focus on retail. We expect to increase our retail growth to 25 per cent in FY’11 from 20 per cent last fiscal”.
Chairman and MD of Central Bank, S Sridhar said, “This facility offers a hassle-free funds transfer by remitters in the United States to beneficiaries in India through Internet banking. It gives freedom to the remitter in the United States to remit money at his convenience from any bank account anywhere in the US to any account in India”.
In the beginning the maximum limit of transfer of funds is $5000.
Sridhar said this year bank will be focusing more on retail banking business.
He added, “Our focus was on the corporate sector last fiscal. This year we will focus on retail. We expect to increase our retail growth to 25 per cent in FY’11 from 20 per cent last fiscal”.
Friday, August 6, 2010
Corporation Bank to act as registrar for UIDAI
A Memorandum of Understanding (MoU) was signed between the Corporation Bank and Unique Identification Authority of India (UIDIAI). As per the agreement bank will act as registrar for unique identification project ‘Aadhar’.
In a statement issued by Corporation Bank said, "As per the agreement, the bank would enroll customers for issuing a 16-digit unique identification number by collecting biometric and demographic details as per UID norms."
It added, "The bank has been actively involved in financial inclusion and to provide basic banking services to the excluded population in rural and urban areas."
Up till now the State Bank of India (SBI) has been the first registrar of UIDAI.
'Aadhar' is India's new unique identification system, headed by Nandan Nilekani.
The working process of the AADHAR is based on one’s identify using the AADHAR code any combination of biometric identification, such as fingerprint or retina scans.
In a statement issued by Corporation Bank said, "As per the agreement, the bank would enroll customers for issuing a 16-digit unique identification number by collecting biometric and demographic details as per UID norms."
It added, "The bank has been actively involved in financial inclusion and to provide basic banking services to the excluded population in rural and urban areas."
Up till now the State Bank of India (SBI) has been the first registrar of UIDAI.
'Aadhar' is India's new unique identification system, headed by Nandan Nilekani.
The working process of the AADHAR is based on one’s identify using the AADHAR code any combination of biometric identification, such as fingerprint or retina scans.
Monday, July 26, 2010
You can operate bank account using your mobile phone
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.”
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.”
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.”
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