SRI D.V. KRISHNA RAO, SR. VICE PRESIDENT, CBOA, AP PROPOSING VOTE OF THANKS
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SRI A.R. SAIFULLA IS PRESENTED WITH MEMENTO BY A.P. UNIT
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SRI A.R. SAIFULLA IS FELICITATED BY HYDERABAD UNIT
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SRI A.R. SAIFULLA IS FELICITATED BY VIJAYAWADA UNIT
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SRI C.A. MALLIKARJUNA RAO, GENERAL SECRETARY, CBOA ADDRESSING THE GATHERING
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LEADERS ON THE DAIS
From left to right: Sri James Xavier, Chairman, Sri C.A. Mallikarjuna Rao, General Secretary, Sri A.R. Saifulla, President, AICBOF, Sri K. Kumaraswamy, President and Sri L. Prabhakara Rao, Treasurer
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SRI A.R. SAIFULLA VISITED HYDERABAD
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CBOA, AP CIRCULAR NO. 002 DATED 04.01.2011
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BANKS TO ALLOW SINGLE ATM TRANSACTION FOR ONE PIN ENTRY
In order to check misuse of ATM cards by unauthorised people, RBI has asked banks to allow only one transaction at ATM machines for one entry of PIN (Personal Identification Number which acts like a password for ATM transactions).
The transactions that a bank customer can conduct through the ATMs (Automated Teller Machines), by inserting or swiping the card and entering the PIN, include withdrawal of money, deposits, fund transfer, bill payments, checking account details etc.
Previously, customers were allowed to conduct multiple transactions through the ATM by punching in their PIN only once in a single session.
However, the practice was vulnerable to misuse by unauthorised people, especially in case authorised customers forgot to collect their ATM card after conducting the transaction.
There have also been cases when some people tamper with the ATM machines in a way that a customer cannot collect the ATM card after conducting the transaction. Once the customer moves out of the ATM machine thinking that the withheld card needed to be collected from the bank, the fraudster goes into the ATM and withdraws money as previous session remains active with the PIN already punched in.
Having received several complaints about the vulnerabilities of the existing practice, RBI has asked the banks to make changes in their systems to allow only one transaction for every entry of the PIN.
Although, RBI had asked all banks to follow these guidelines with effect from January 1, 2011, some of the banks are still in the process of updating their systems with the required changes. In the meantime, the banks have started communicating to their customers about the changes in the way ATM transactions are conducted.
ATMs have become a preferred mode of banking transactions for both customers and banks, due to the convenience and cost-saving factors. The volume of ATM transactions increased from 17,797 lakh aggregating to Rs 4,38,151 crore during 2007-08 to 23,530 lakh aggregating to Rs 6,16,456 crore during 2008-09, as per RBI.
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NH BANK SEES RATES GOING UP; REALITY SET TO CORRECT
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CASH-STRAPPED BANKS UNLEASH FD RATE WAR
This is great news for senior citizens, mainly the retired people, who have most of their life’s savings in bank FDs and depend on interest income they earn on these. What is more, market players believe the FD rates have not yet peaked and expected to go up further from here.
Consider this: On Tuesday, IDBI Bank said it will pay an interest rate of 10% to senior citizens for FDs of 1,100-day maturity. For regular customers, the applicable rate of interest for the same maturity is 9.25%. The icing on the cake is that the bank will not charge any penal rate in case any of its customers, across all maturities, decides to break an FD before maturity.
Compared to IDBI Bank’s rates, SBI is paying senior citizens 9.5% for FDs of 555 days and 1,000 days, and 9% to regular customers. And HDFC Bank will pay 9.50% to senior citizens and 9% to regular customers for FDs of 2-yearand-16-day maturity. The case is the same for most other banks, including foreign banks, which have hiked FD rates several times in the last few months.
Not only in one, two and three-year brackets, even for shorter duration FDs, rates have been increased. For example , IDBI Bank is paying 8% for FDs of 279-day to 1-year maturity, SBI is paying 7.75% for FDs of 181 days to 1 year and HDFC Bank is paying 7.75% for the 9-monthand-16-day scheme, all to regular customers. For senior citizens, the rates are higher by 50-75 basis points.
There are at least three reasons why banks are competing for FD funds and the fight could continue for some more months. For one, the loan growth of banks is higher than deposit growth in the economy. Recently, in its policy review meeting, Reserve bank of India (RBI) pointed out that while loan growth rate was at nearly 23%, the corresponding number for deposit growth was about 15%. This means loan offtake from banks had a much higher rate than the rate at which people were keeping money with banks, an undesirable situation for the banking system.
On its part, to tackle inflation , RBI has tightened the liquidity situation. The latest WPI figure was 7.4% while the food inflation rate was 14.4% with expectations that both these rates would again rise. “Unless inflation is brought under control, RBI will not ease the liquidity situation in a big way,” said a bond dealer. “And there is no indication that inflation will come down anytime soon,” he added. Recently, RBI has announced open market operations (OMOs) and cut down on the size of government borrowing to ease the extremely tight liquidity situation to some extent. The net repo outstanding has now come down to about Rs 69,000 crore from a high of Rs 1.7 lakh crore on December 22.
The Rate Card
State Bank of
555 days and 1,000 days: 9% for regular customers, 9.50% for senior citizens
ICICI Bank
990 days: 8.50% for regular customers, 9.25% for senior citizens
HDFC Bank
2 years, 16 days: 9% for regular customers; 9.50% for senior citizens
IDBI Bank*
1,100 days: 9.25% for regular customers, 10% for senior citizens
Bank of
1-2 yrs: 8.50% for regular customers, 9% for senior citizens
*No penalty on pre-mature breaking of FDs, unlike other banks
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C.B.O.A., A.P. CIRCULAR NO. 1 DATED 03.01.2001
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BANK OF INDIA INCREASES DEPOSIT RATES BY UP TO 0.75 PC
Bank of India increased interest rates on a few fixed deposit schemes by up to 0.75 per cent.
The announcement by the bank follows similar moves by its peers, including State Bank of India , IDBI Bank , Kotak Mahindra Bank and Dena Bank among others, which have hiked their respective interest rates in line with the higher interest rate scenario.
Bank of India's revised rates are effective from 03.01.11 and the minimum size of a deposit has to be Rs 1 lakh.
Revisions have been done across deposit sizes, starting from those under Rs 15 lakh to Rs 5 crore and above.
Under the revised interest rates, a 180-269 days deposit under Rs 15 lakh will fetch an interest of 7.25 per cent as against 6.50 per cent earlier while one for 270-364 days will earn the depositor 7.50 per cent per annum compared to 6.75 per cent earlier.
In another move, for deposits of Rs 1-crore and above, the daily rate of interest will be quoted by the bank's treasury department on the core banking system ( CBS )) ticker after taking into account liquidity position and the market conditions for 1 year and above but less than 2 years bucket.
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IDBI BANK HIKES RETAIL TERM DEPOSIT RATES BY UP TO 75 BPS
The interest rates were hiked for deposits of both less than Rs 15 lakh as well as those of between Rs 15 lakh and up to Rs 1 crore.
In an additional offering to woo customers in the current stage when interest rates are on an upswing, IDBI Bank has decided to do away with penalties on premature withdrawals of fixed deposits. Currently, the bank levies a premature withdrawal penalty of 1 per cent.
In a rising interest rate scenario, customers prefer shifting their deposits to a bank offering higher interest rates and withdrawal of the penalty will help the bank attract more deposits.
Fresh deposits and renewals made after January 1, 2011 will not be charged a withdrawal penalty, the bank said.
The rate hike announced is from immediate effect and with the revision, the highest interest on retail term deposits would be 9.25 per cent.
For deposits of up to Rs 15 lakh, the maximum hike is of 75 basis points.
The interest rate on deposits with a maturity period of 270 days and above, but less than one year, has been increased by 75 basis points to 8 per cent.
Furthermore, the rates for deposits with a tenor of between one year plus one day and 499 days have been hiked by 35 basis points to 8.50 per cent.
For retail term deposits with a maturity period of 500 days, the bank has revised the interest rate to 9 per cent, up 50 basis points from the prevailing rate.
Another major hike will be effected on deposits with a tenor between 500 days and 1,099. The rate of interest on such retail term deposits has been increased by 75 basis points to 9 per cent.
Besides, for deposits with a maturity of 1,100 days, the new rate will be 9.25 per cent, up 50 basis points.
For deposits of up to Rs 15 lakh with a duration of seven year to ten years, the rates have been revised upward by 25 basis points to 8.75 per cent.
Other lenders such as Dena Bank, Kotak Mahindra Bank, State Bank of
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PNB RAISES FIXED DEPOSIT RATES FOR NON-RESIDENTS
Interest rates on non-resident external rupee term deposit for two years to less than three years has been upped from 2.51 per cent to 2.60 per cent and for three years to five years from 2.79 per cent to 3.09 per cent.
Similarly for foriegn currency non-resident (B) deposits hike has been made for deposits in US dollar, pound sterling, euro, Australian dollar and Canadian dollar.
The hike in deposit rates for non-residents by PNB came in the wake of major lenders announcing increase in deposit rates.
Major lenders, including State Bank of India (SBI), ICICI Bank and HDFC Bank, had raised their deposit rates by up to one percentage point.
With inflation at 7.48 per cent in November and food inflation expected to increase it further in December, deposit rates in India are in fact not giving much returns adjusted for the rate of price rise.
In fact, RBI has been asking banks to raise deposit rates, to more people in parking their funds with banks.
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AIBOC CIRCULAR NO. 168 DATED 31.12.2010
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AIBOC CIRCULAR NO. 167 DATED 30th DECEMBER 2010
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AIBOC CIRCULAR NO. 166 DATED 28th DECEMBER 2010
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