IBA RELEASED CIRCULAR TO MEMBER BANKS ON PENSION OPTION TO THOSE OFFICERS WHO HAD TAKEN VOLUNTARY RETIREMENT FROM THE BANK’S SERVICES WITHIN THE MEANING AND PROVISION OF REGULATION 19 (1) OF BANK OFFICERS’ SERVICE REGULATIONS, 1979.

IBA has finally issued the much awaited circular on pension option to those officers who had taken VRS in terms of Regulation 19 (1) of Bank Officers’ Service Regulations, 1979 giving much needed relief to those Officers.

We are placing here the circular issued by IBA to member banks for our readers.

Please click on the image to view fully/download the circular

CENTRAL BANK OF INDIA’S RESULTS FOR THE SECOND QUARTER ENDED SEPTEMBER 30, 2012

MAJOR HIGHLIGHTS –Q2 FY13

                                                                                                Y-o-Y

Ø  Total Business Rs.357139 crore                   12.04%

Ø   Total Deposits Rs. 203538 crore                 8.10%

Ø  Total Core Deposits Rs. 149687 crore       18.49%

Ø  Advances Rs. 153601 crore                           17.73%

Ø  Net Profit Rs. 330 crore                                                 35.25%

PERFORMANCE HIGHLIGHTS

Ø  Total Income has registered a growth of 10.45%, from Rs. 5234 crore to Rs. 5781 crore on y-o-y basis.

Ø  Total Interest Income registered a growth of 8.51% from Rs. 4910 crore to Rs. 5328 crore on y-o-y basis.

Ø  Net Interest Income of the Bank  registered a growth of  1.29% from  Rs. 1397 crore to Rs. 1415 crore on y-o-y basis.

Ø  Non Interest Income of the Bank registered a growth of 8.95% from Rs. 324 crore to Rs. 353 crore on y-o-y basis.

Ø  Operating Profit of the Bank stood at Rs. 816 crore as on Sep 30, 2012 as compared to Rs. 796 crore as on Sep 30, 2011 on y-o-y basis.

Ø  Bank recorded Net Profit of Rs. 330 crore as on Sep 30, 2012 as compared to Rs. 244 crore as on Sep 30, 2011, registering y-o-y growth of 35.25%.

Ø  Average Business per Employee increased to Rs. 956 lakh in Sep 2012 from Rs. 862 lakh in  Sep 2011.

Ø  Gross NPA to Gross Advances increased to 5.54 % from 4.87% of previous quarter.

Ø  Net NPA to Net Advances increased to 3.80 % from 3.22 % of previous quarter.

Ø  Total Business of the Bank increased to Rs. 357139 crore as at Sep 2012 compared to Rs.318754 crore as at Sep 2011, registering y-o-y growth of 12.04%.

Ø  Total Deposits grew by 8.10 % on Y-o-Y to Rs.203538 crore from Rs. 188286 crore in Sep-11 whereas Core Deposits grew by 18.49% Y-o-Y.

Ø   CASA percentage improved to 33.00% in Sep 2012 as against 32.82 % in Sep 2011.

Ø  Gross Advances of the Bank grew by Rs. 23133 crore i.e. to Rs. 153601 crore in Sep 2012 from Rs. 130468 crore in Sep 2011, registering a Y-o-Y growth of 17.73%.

Ø  Agriculture Advances increased by 23.72% to Rs. 18677 crore in Sep, 2012 from Rs. 15096 crore in Sep, 2011.

Ø  MSE Advances registered y-o-y growth of 20.27% to Rs. 14692 crore in Sep, 2012 from Rs.12216 crore of corresponding quarter.

Ø  Retail Loans showed substantial growth of 34.13% on y-o-y basis to Rs. 18964 crore from Rs. 14138 crore.

Ø  Housing Loan portfolio of the Bank stands at Rs. 6695 crore consisting of 35.30% of the total Retail Portfolio.

Ø  Education Loan portfolio of the Bank registered y-o-y growth of 25.22% to Rs. 2473 crore in Sep, 2012 from Rs.1975 crore of corresponding quarter.

Ø  Bank Stood first among all channel partners of Life insurance corporation of India and collected Rs.100 crore LIC premium during half year.

Ø  The Credit Deposit Ratio has moved from 69.29% to 75.46% on y-o-y basis.

AWARDS /RECOGNITION

Ø  Our Bank has been awarded with the  “Best Bankers’ Award-2012”  by The Sunday Standard (The New Indian Express Group).

Ø  Our Bank has been awarded with prestigious GOLD award (highest independent honour in India) for  “INNOVATIVE URBAN FINANCIAL INCLUSION IMPLEMENTATION MODEL” in the 30th SKOCH SUMMIT organized at New Delhi.

Ø  Our Bank has been awarded with prestigious ‘GOLDEN PEACOCK HR EXCELLENCE AWARD’ for the year 2012 instituted by Institute of Directors. This award has been bestowed on the Bank for achieving overall effectiveness in its HR and People Management practices, thereby contributing to the needs of the businesses, profession, employees, Industry and the Nation.

NEW INITIATIVES

Ø  Appointed Chief Customer Service Officer exclusively for redressal of customer complaints.

Ø  Started service called Missed Call Alerts for its CASA customers, whereby customers can get detail of balance and last three transactions free of cost.

Ø  The Customer Grievances Redressal Mechanism has been made fully online for quick disposal of grievances.

Ø  Arranging Recovery Camps all across for OTS/Upgradation.

Ø  Recovery through outside Recovery Agents/ Enforcement Agents.

Ø  Extensive use of SARFESI Act for maximum recovery in cases where securities are available.

Ø  Web Portal has been established for monitoring DRT cases.

Ø  Launched Festival Bonanza for various retail products.

Ø  Introduced new retail loan product “CENT COMBO”.

Ø  Introduced new variant of Saving Account -“CENT PREMIUM”.

Ø  An automated loan appraisal and monitoring software called CLASS for speedy disposal of retail, corporate and agriculture loans has been made operational.

Ø  Introduction of new Recurring Deposit schemes-CENT LAKHPATI RDS and CENT SWASHAKTI FLEXI RDS.

Ø   Launched new variants of Debit and Credit cards with special features.

Ø  Opened 1131 ULTRA SMALL BRANCHES,62 Full fledged Branches and upgraded 9 extension counters to full fledged Branches on 131st Birth Anniversary of our founder Sir Sorabji Pochkhanawala .

Ø  Biometric smart Card Based FI implemented in 373 districts.

Ø  Cent prosperity  – special scheme for minorities with CGTMSE coverage and concessional rate of Interest.

SOURCE: https://www.centralbankofindia.co.in/upload/news/70._Press_Editors_Press_Release__-_2sepresu.pdf

CENTRAL BANK OF INDIA RECEIVES GREENTECH CSR AWARD

Sri K.A. Somayajulu, Chief General Manager is seen receiving award from Dr. Bhaskar Chatterjee, Director General & CEO, Indian Instt. Of Corporate Affairs, Govt. of India in presence of Sri Kamleshwar Sharan, President, Green Tech Foundation. Sri M. Elangovan, Field General Manager and Sri Ajai Kumar Agarwal, Asstt General Manager-Marketing of Hyderabad Zone are also seen. 

Central Bank of India received Greentech CSR Award for its active role in CSR activities towards the upliftment of the poor and providing help to needy & weaker sections of the society at Pan-India level.

Sri K.A. Somayajulu, Chief General Manager, Central Bank of India received the prestigious award from Dr. Bhaskar Chatterjee, Director General & CEO, Indian Instt. Of Corporate Affairs, Ministry of Corporate Affairs, Govt. of India in a glittering function held at Novotel Hyderabad Airport Hotel.

Speaking on the occasion, Sri K.A. Somayajulu assured that Central Bank of India will continue such activities in future towards the betterment of society.

SOURCE: https://www.centralbankofindia.co.in/upload/news/csrawardPress_Release_.pdf

CENTRAL BANK OF INDIA BAGGED ‘INDIRA GANDHI RAJBHASHA SHIELD’

Central Bank of India has been awarded prestigious “Indira Gandhi Rajbhasha Shield” for the Implementation of Official Language Policy of Government of India in a function, held on the occasion of ‘Hindi Day’ on 14^th September, 2012 at Vligyan Bhawan, New Delhi. H.E. President of India Shri Pranab Mukharjee presented the Shield to Shri Mohan V.Tanksale, Chairman & Managing Director, Central Bank of India.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release48_.pdf

CENTRAL BANK OF INDIA AWARDED ‘CERTIFICATE OF EXCELLENCE’

Central Bank of India has been awarded ‘Certificate of Excellence’ for the proactive Role in establishing Rural Self Employment Training InstituteS (RSETI) across the country during the year 2011-12. The award has been handed over by Hon’ble Union Minister, Rural Development Shri Jairam Ramesh at the function held at Vigyan Bhawan, New Delhi.

Central Bank of India has established 46 RSETIs across the country. The objective of establishing RSETIs is to promote Self employment as also up gradation of skills of Rural Youth for gainful employment.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release_.pdf

CENTRAL BANK OF INDIA APPOINTS CHIEF CUSTOMER SERVICE OFFICER

Central bank of India is the first Nationalised Bank to appoint a Chief Customer Service Officer.  Mr. U. Sangekar ( Ex GM HRD, Bank of Baroda) has been appointed as the Chief Customer Service Officer of the Bank – another giant step to tone up customer services in the Bank.  His prime function is redressal of dispute between Bank & its Customer before it is referred to Banking Ombudsman. By his appointment redressal of grievances will become faster and focused as the aggrieved customer can approach his office directly who will act as an Internal Ombudsman.

Any dispute can be represented to him on the following address:

Chief Customer Service Officer

Central Bank of India

2^nd floor

Mumbai Main Office

M G Road, Fort

Mumbai 400 023

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release_customer.pdf

CENTRAL BANK OF INDIA WINS PRESTAGEOUS ‘GOLDEN PEACOCK HR EXCELLENCE AWARD-2012’

Central Bank of India has won the prestigious GOLDEN PEACOCK HR EXCELLENCE AWARD’ for the year 2012 instituted by Institute of Directors (IoD), a non-profit professional Organization of high repute.  This award has been bestowed on the Bank for achieving overall effectiveness in its HR and People Management practices, thereby contributing to the needs of the businesses, profession, employees, Industry and the Nation.

. 

This Award has been received by Shri M V Tanksale, Chairman & Managing Director along with Major (Retd) Shri Ved Prakash, Director on the Board of Directors of the Bank and Shri G S Bhaskara Rao, Management Specialist (HRD)/Asst. General Manager (HRD-IRP) from the hands of Dr. (Shri) M. Veerappa Moily, Union Minister of Corporate Affairs & Power in a glitzy

function held on 17^th August 2012 at New Delhi coinciding with  23^rd Annual Day of the Institute.  This Award which is the sixth in the Award tally of the Bank on HR Excellence, reflects and symbolizes the Bank’s intent towards unleashing people-oriented HR Policies, Practices and initiatives which in turn will have positive impact on business development.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release__2_.pdf

RBI LEAVES KEY RATES UNCHANGED

The Reserve Bank of India surprised the markets again by pressing the pause button. Two months ago, it had delivered a higher than expected 50 basis points cut in repo rate.

This time around the RBI kept the rates pat despite calls from trade and industry and the Finance Ministry to further lower interest rates to spur flagging growth.

Industry bodies Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) expressed their disappointment at the RBI's monetary policy stance.

With rate cut expectations not materialising in the RBI's mid-quarter monetary policy review, the benchmark BSE Sensex closed 1.4 per cent (or 244 points) down at 16,706 compared to the previous close. The fall in the index was led by banking and realty stocks.

Since the central bank kept its policy rates unchanged – repo rate at 8 per cent and cash reserve ratio (a portion of deposits that banks have to park with RBI) at 4.75 per cent – banks are likely to maintain a status quo on deposit and lending rates.

“Inflation continues to be high even as growth has slowed. Under the circumstances, the RBI has struck a fine balance to address both these concerns by keeping policy rates unchanged and providing banks liquidity enhancement in the form of export credit refinance,” said Mr M.D. Mallya, Chairman and Managing Director, Bank of Baroda.

Mr Mallya added that since his bank had cut both deposit and lending rates in April, it will now adopt a wait-and-watch approach.

LIQUIDITY ENHANCEMENT

Even as it held interest rates steady, the RBI announced an important measure to augment liquidity and encourage banks to increase credit flow to the export sector. It has increased the limit of export credit refinance (ECR) from 15 per cent of banks' outstanding export credit to 50 per cent,

The higher ECR limit will potentially release additionally liquidity of over Rs 30,000 crore, equivalent to about 50 basis points reduction in the CRR.

STATUS QUO

The RBI reasoned that further reduction in the policy interest rate at this juncture could exacerbate inflationary pressures. Factors other than interest rates are contributing more significantly to the growth and investment slowdown.

The central bank observed that it had frontloaded the policy rate reduction in April with a cut of 50 basis points. This decision was based on the premise that the process of fiscal consolidation, critical for inflation management, would get under way, along with other supply-side initiatives.

CHALLENGES

The economy is facing challenges on the growth-inflation front. GDP growth has moderated to a nine-year low of 5.3 per cent in the January-March 2012 period; the index of industrial production increased by just 0.1 per cent in April; and wholesale price index inflation has inched up from 7.2 per cent in April to 7.6 per cent in May, driven mainly by food and fuel prices.

While growth in 2011-12 has moderated significantly, headline inflation remains above levels consistent with sustainable growth. Importantly, retail inflation is also on an uptrend, said the RBI.

According to Ms Brinda Jagirdar, General Manager (Economic Research), SBI, State Bank of India, “The status quo on policy rates, though surprising, is for the good. Besides growth and inflation, the RBI has to take into account the uncertainties emanating from the Euro Zone, and the outcome of the Federal Open Markets Committee and G20 meetings over the next few days.

“Further, UK and the European Central Bank may announce Long-Term Refinancing Operations. Hence, the RBI may be waiting for more clarity on the external front.”

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3542097.ece

HIGHLIGHTS OF RBI'S MONETARY POLICY REVIEW

Following are the highlights of the ‘Mid-Quarter Monetary Policy Review: June 2012’ announced by the Reserve Bank of India today.

*No change in key policy rates

*Inflationary pressure still high

*Higher export refinance limit to release Rs 30,000 crore

*Global economic conditions have deteriorated since April

*Domestic economic situation raises several concerns

*Factors besides high rates more responsible for slowdown

*Rupee slide offset impact of fall in crude oil on inflation

*Sticky inflation points to serious supply bottlenecks

*Oil subsidy crowding out public investment

*Slowing capital flows will have adverse impact on India

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3542385.ece

SEVEN BANK GENERAL MANAGERS ELEVATED AS EXECUTIVE DIRECTORS

The Centre has elevated as many as seven general managers to the posts of executive directors in various public sector banks.

In this round of appointments, banking majors Punjab National Bank (PNB) and Bank of India (BoI) have, for the first time, got a third executive director. United Bank of India and Vijaya Bank have got their second executive director.

Mr P. Srinivas, who was general manager at Andhra Bank, has been elevated to the post of executive director at Bank of Baroda (BoB).

Mr S. K. Jain, who was general manager at Dena Bank, will move to BoB as executive director.

Mr Arun Tiwari, who was general manager at BoB, will move to Allahabad Bank as executive director.

Bank of India will have an executive director in Mr B. P. Sharma, who was till date general manager at PNB. He will be the third executive director of BoI.

The Centre has also elevated Mr S. R. Bansal, who was general manager at Dena Bank, to the post of executive director in PNB. Mr Bansal will be the third executive director at the bank.

Mr S. D. Arya, who was general manager at Bank of Maharashtra, has been appointed as executive director at United Bank of India.

Mr K. R. Shenoy, who was general manager, Corporation Bank, has been appointed as executive director at Vijaya Bank.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3543726.ece

BANK OF INDIA'S ALOK MISRA IS NEW IBA CHAIRMAN

The Indian Banks Association on Monday said Bank of India chairman and managing director Mr Alok Misra has been elected as the chairman of the bankers body for the current fiscal.

The IBA managing committee elected Mr Misra at its AGM held last Satruday.

The heads of Punjab National Bank Mr KR Kamath, Mr JP Dua of Allahabad Bank and Ms Chanda Kochhar of ICICI Bank have been elected as deputy chairmen, while Mr Pratip Chaudhuri of SBI is the honorary secretary of the association for 2012-13.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3543034.ece

SBI CUTS LENDING RATES BY 0.5-3.5%

Days ahead of the RBI reviewing the interest rate, State Bank of India (SBI) today announced cut in lending rates between 0.5-3.5 per cent, mainly for the small and medium enterprises (SME) and the agriculture sector.

However, interest rate on home and retail loans will remain unchanged, the banking leader said, adding they are low and competitive.

Announcing the reduction in interest rate, SBI Managing Director and Group Executive (National Banking) A Krishna Kumar said the base rate will also remain unchanged at 10 per cent.

The Reserve Bank of India is scheduled to come out with its mid-quarter review of the credit policy on Monday amidst expectations of a cut in the short-term lending rates.

Though near 8 per cent inflation leaves small room for the big reduction in interest rate, the industrial growth slowing to mere 0.1 per cent in April is exerting pressure on the banking sector to go in for easing of the monetary policy.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/sbi-cuts-lending-rates-by-0-5-3-5/articleshow/14149856.cms

BANKS TO SEE MODERATE GROWTH THIS FISCAL: BARCLAYS

The banking sector is likely to witness moderate growth in the current fiscal coupled with downside risks to net interest margins (NIMs) following the difficult economic environment, a Barclays research report said here today.

"Growth is likely to be moderate, as investment activity remains sluggish and an inflation fighting RBI restrains monetary growth. On the revenue front, we expect fee growth to remain moderate and we see some downside risks to NIMs," the report said.

The report warned that the current financial year will be a difficult year for the banking sector.

"We maintain our view that FY13 will be another tough year for the banking sector. The macro environment is likely to remain difficult, particularly in contrast to the sharp recovery of FY10," it said.

Referring to overall credit and deposit growth, the report said it would remain sluggish, as system growth is likely to remain moderate, with deposits at 16 percent and credit at 17 percent, following low investment activity as well as a tight interest rate, as the RBI will continue to fight inflation which is heading north.

Giving the rationale behind such sluggish growth, the report said slowdown in project sanctions activity in FY12 is expected to impact the overall system growth over the next year.

Referring to credit quality, the report said things are not likely to witness any sharp improvement in the current financial year.

"Credit quality has deteriorated sharply and the levels of restructuring and slippages have spiked in FY12. We do not expect a sharp improvement in credit quality trends in FY13," it said.

Elaborating the reasons, the report said the industrial sector, which constitutes around 45 percent of total credit, continues to witness sluggish growth prospects.

"While growth is slow, leverage among a concentrated set of large borrowers remains high. In our view, the combination of weak industrial growth and high levels of leverage will continue to put pressure on credit quality -- a view that is consistent with that of the rating agencies," it said.

The report also said that asset quality is likely to come under stress in the second half of current financial year.

"There is already a large pipeline of loans that are awaiting restructuring, and credit quality issues in private generation should start impacting banks in the second half of FY13 as newly commissioned plants face fuel shortages.

Hence, while bank managements are expecting strong recoveries from non-performing assets (NPAs) created in FY12, we expect fresh problem in asset generation to remain high," it said.

About growth in fee-based income, the report said it would remain moderate in this financial year.

"We expect fee income growth to remain below asset growth as in FY12, as loan approvals remain slow," it said, adding this will have adverse impact on net interest margins.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/banks-to-see-moderate-growth-this-fiscal-barclays/articleshow/14149075.cms

CENTRAL BANK OF INDIA SIGNED AN AGREEMENT WITH NPCI FOR ISSUANCE OF RUPAY CARDS

Indian Payment System, on the lines of Master and Visa International, was launched by National Payment Commission of India at Mumbai.  Initially only seven scheduled banks were allowed to undertake this business.

Central Bank of India signed an Agreement with NPCI for issuance of RuPay Cards and we are in the process of configuring all our EDC machines to be RuPay Compliant.

 

With this Central Bank of India will be in a position to issue RuPay cards as well as make payment of all RuPay cards issued by other Banks in the country. The agreement, on behalf of bank was signed by Shri B.N.S. Ratnakar, General Manager and Mr. A.P. Hota, CEO, NPCI in the presence of Mr. N. Narayanamurthy, Chairman of board of NPCI.

At present, the charges levied by RuPay are almost at par with others.  It is assured by the NPCI that these charges will be brought down shortly.  The NPCI has also requested banks to issue RuPay cards for Financial Inclusion and Kisan Credit Card.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release_NPCI.pdf

NPA FOR ONE BANK TO BE NPA FOR REST TOO; RULE TO CURB BORROWING FROM ONE BANK TO REPAY ANOTHER

Failure to repay one bank could result in an account being classified as a bad loan by all banks, according to guidelines issued by the finance ministry early this month. The rule is aimed at discouraging companies from gaming the system by borrowing from one bank to repay another or to extract concession by skipping payments to one.

This marks the latest instance of a flurry of activity in which North Block, as the finance ministry is often referred to, has sometimes appeared to micro-manage banks.
"Since the counter-party for all lenders is the same, the status of the borrower across all lenders shall have to be same," the finance ministry said in a note to all PSU banks. "The move is aimed to prevent undue leverage in the hands of the borrower and will also incentivise early resolution of any irregularity with all the lenders," it added.

The finance ministry's directive comes at a time the sharp downturn in the economy has hit company cashflows, resulting in a spike in the quantum of bad loans in the books of banks. Gross bad debt rose 51% to Rs 1,03,891 crore for the year ended December 31, 2011, according to a reply to Parliament by Minister of State for Finance Namo Narain Meena.

In some cases, the finance ministry's activism has led to it getting into areas that have been the RBI's domain.

DISCIPLINING BORROWERS 

The RBI, for instance, does not require all lenders to classify an account as a bad loan even if the borrower fails to repay one.

Some experts say such detailed instructions are legitimate as the government is the majority owner of most of the country's leading banks.

The instruction on bad loans is part of a wider proposal from the ministry asking all PSU banks to adopt a consortium-lending approach for loans above Rs 150 crore. Consortium lending refers to banks acting in concert, including sharing information about borrowers and ensuring that loan agreements are uniform.

The finance ministry issued a draft note in March asking banks to enter into a joint lending arrangement for debt above Rs 150 crore to inculcate financial discipline in borrowers.

In the final guidelines issued early this month, the ministry said all loans above Rs 150 crore to a single borrower should be brought under the ambit of a joint lending arrangement within six months, and the bank that has the largest share of the debt should lead the consortium.

In the same note, the ministry said pricing of the loan should be uniform among all member banks. "It will not be open to any member bank to waive the penal interest or vary the margin stipulated unilaterally."

SOURCE:

http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/npa-for-one-bank-to-be-npa-for-rest-too-rule-to-curb-borrowing-from-one-bank-to-repay-another/articleshow/14071135.cms

ELECTRONIC FUND TRANSFERS SET TO BECOME FREE; RELIEF TO BANK CUSTOMER

In a move that would bring relief to bank customers, the government has asked the Reserve Bank to work out a framework under which funds could be transferred electronically free of charge from one account to the other.

These suggestions were made by Finance Minister Pranab Mukherjee in his address at a meeting with chief executives of the public sector banks, which among others, was also attended by RBI Deputy Governor K C Chakrabarty.

At present, banks charge between Rs 5 to Rs 55 for electronic transfer of funds from account of one bank to another through National Electronic Fund Transfer (NEFT) and Real Time Gross Settlement (RTGS).

"I would also urge upon Reserve Bank of India (RBI) to proactively work on this front and to see that all electronic banking transactions should be possible without any charges being levied," Mukherjee had said yesterday.

Cost free electronic transaction would encourage customers to use this medium for inter-bank as well as intra-bank fund transfer across the country.

The move would also help reduce cash movement and cash transaction, a senior official of a public sector bank said.

For outward transactions under RTGS mechanism, banks charge Rs 30 for electronic transfer of Rs 2 lakh to Rs 5 lakh and Rs 55 for amounts above Rs 5 lakh.

On the other hand, under NEFT the charges range between Rs 5 and Rs 25.

Citing example of Oriental Bank of Commerce, which has waived all charges for electronic transactions up to Rs 1 lakh, Mukherjee had said, "I am confident that all the public sector banks would follow this excellent initiative."

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/electronic-fund-transfers-set-to-become-free-relief-to-bank-customer/articleshow/14093392.cms

BANKING SECTOR TO BE OUT OF CCI REACH: GOVERNMENT

The government has said that the banking sector will be out of the purview of competition watchdog once the amendments to the banking law are passed.

"If the Banking (Laws) Amendment Bill, 2011 is passed, then mergers and acquisitions in the banking sector will be taken out of the purview of Competition Commission of India," corporate affairs secretary Naved Masood told reporters at the sidelines of a function.

However, if any bank was guilty of abuse of its dominant position or anti-competition practices then the CCI had the power to take action under Sections (3) and (4) of the Competition Act.

Corporate affairs minister Veerappa Moily said there's no conflict between CCI and regulators.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/banking-sector-to-be-out-of-cci-reach-government/articleshow/14039854.cms

RBI CUTS RTGS DEALS THRESHOLD TO RS 1 LAKH TILL TOMORROW

The Reserve Bank today said it has cut down the threshold limit in Real Time Gross Settlement System transactions to Rs 1 lakh from existing Rs 2 lakh until June 9, 2012 due to some technical issues.

"To ensure that customers were not unduly inconvenienced, the Reserve Bank temporarily brought down the threshold limit in Real Time Gross Settlement System ( RTGS) to Rs 1 lakh from the existing Rs 2 lakh. This arrangement would continue till Saturday, June 9, 2012," RBI said in a notification.

There was delay in processing of transactions of RBI's National Electronic Funds Transfer (NEFT) on June 5 due to some technical glitches that resulted into delay in transmission to destination banks.

However, issues were addressed to large extent by June 6, RBI continues to monitor and address some residual issues, it said.

The NEFT which is operational since 2005 is a pan-India one-to-one funds transfer system used by individuals, corporates and governments. The transactions in the system are put through various bank branches across the country.

Around 18 million transactions are processed every month on an average through this system.

The volume of transactions processed in NEFT over the last three years has witnessed 100 per cent year-on-year growth, RBI said.

SOURCE: http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/rbi-cuts-rtgs-deals-threshold-to-rs-1-lakh-till-tomorrow/articleshow/13928876.cms

CENTRAL BANK OF INDIA REVISES INTEREST RATES ON FCNR-B DEPOSITS W.E.F. 01.06.2012

Central Bank of India has revised interest rates on FCNR-B deposits. The bank now offers interest of 2.63 % for USD deposit of 2 years to less than 3 years, 3.71 % for USD deposit of 3 years to less than 4 years, 4.42 % for GBP deposit of 5 years, 4.21 % for EURO deposit of 5 years, 4.58 % for Canadian dollar deposit of 5 years & 6.60 % for Australian  Dollar deposit of 1 year to less than 2 years.

On NRE deposits for single deposit upto Rs. 1 crore,  the bank offers 9% (tax free) interest for a period of 1 year to less than two years &  for single deposit of Rs. 1 crore to Rs. 10 crores for a period 2 years to less than 5 years .

All branches of the bank accept the deposits.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_Editors_Press_Release_FCNR.pdf

OVER 12 LAC ACCOUNTS OPENED UNDER FINANCIAL INCLUSION IN MADHYA PRADESH

The 147^th meeting of State Level Bankers’ Committee, Madhya Pradesh was held ON 06/06/2012 at the Zonal Office of Central Bank of India, Bhopal. The meeting was co-chaired by Shri R. Parasuram, IAS, Chief Secretary to Govt. of M.P.  and Shri M.V. Tanksale, Chairman & Managing Director, Central Bank of India.  The meeting was also attended by many Senior Govt. Officials alongwith Smt. V.R. Iyer, Executive Director, Central Bank of India, Shri Umesh Kumar Singh, General Manager, Central Bank of India and Convenor, State Level Bankers’ Committee, Madhya Pradesh.

Addressing the participants, Shri R. Parasuram, Chief Secretary to Govt. of M.P. advised that important areas of concern should underline our efforts in the current financial year to put up a better performance. Commenting on the role of R-SETIs, Shri Parasuram desired that these institutes should not confine themselves to rural sector and should play a more significant role in skill development in other sectors as well.  Under Financial Inclusion, all the 2736 unbanked villages with  population above 2000 have been covered. Referring to financial inclusion drive in the State, Shri Tanksale informed that more than 12 Lac financial inclusion accounts have been opened in the State.

Speaking on the occasion, Shri M.V. Tanksale, Chairman & Managing Director, Central Bank of India stated that Madhya Pradesh has been doing better than many other States in many areas. The novel thought process of holding workshops for Lead District Managers originated from Madhya Pradesh which was appreciated and institutionalized by Govt. of India. He complimented State Government officials and Bankers for the achievements.  Referring to the functioning of R-SETIs and FLCCs, Shri Tanksale favoured a tracking system for assessing the impact of the training imparted by them in skill development.

The House also deliberated on the progress of Revival Package for Handloom Sector and reviewed the performance under ongoing programmes like Financial Inclusion, Kisan Credit Card Scheme, Credit to SME Sector, PMEGP, implementation of Annual Credit Plan, SHGs and Low C:D Ratio in certain districts,  progress under Interest Subsidy for Housing the Urban Poor (ISHUP) Scheme and Chief Minister’s Rural Housing Mission etc.

SOURCE: https://www.centralbankofindia.co.in/upload/news/Press_slbc.07.06.12.pdf