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
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
SRI A.R. SAIFULLA VISITED HYDERABAD
The meeting, which was arranged at Hyderabad, on the visit of Sri A.R. Saifulla, President, All India Central Bank Officers' Federation, has been turned out as a grand success. We are placing the photographs taken on the occasion for our readers.
CBOA, AP CIRCULAR NO. 002 DATED 04.01.2011
CBOA, AP issued its circular No. 002 dated 04.01.2011 on the general meeting arranged at Hyderabad on 08th January on the eve of the visit of Mr. A.R. Saifullah, President, All India Central Bank Officers’ Federation (A.I.C.B.O.F.). We are placing the same here for our readers.
CIRCULAR NO.: GS: 2011: 002 Date: 04.01.2011
TO ALL MEMBERS
Dear Friends,
MR. A.R. SAIFULLAH, PRESIDENT, A.I.C.B.O.F. VISITS HYDERABAD
A GENERAL MEETING IS ARRANGED ON 8TH JANUARY 2011
You are aware that Mr. A.R. Saifullah, Sr. Vice-President, All India Central Bank Officers’ Federation has been co-opted as President, after the retirement of Mr. N.K. Pareek from the services of our Bank. You are also aware that Mr. Saifullah has been leading the Officers’ movement in our Bank as General Secretary, Central Bank Officers’ Association, Tamil Nadu since long.
We are glad to inform you that Mr. Saifullah will be visiting Hyderabad Hyderabad
We would also like to inform you that our Federation has been invited by the Central Office Management during the last of week of December to have full fledged discussions on long pending issues of the Officers – Fitment Formula, Transfer Policy and Promotion Policy. During the meeting, we have raised several important issues and put forth various suggestions for the benefit of Officers. Final outcome of the discussions is expected to come out shortly.
As Mr. Saifullah will be visiting Hyderabad in the backdrop of our above discussions with the management at Central Office and he being one of the key participants of the discussions, a general meeting for the Officers has been arranged to enable the officers to have first hand information on Fitment Formula, Transfer Policy, Promotion Policy etc. and also to get ourselves enlightened with the latest developments in the Bank as well as the Industry.
Accordingly, the meeting is arranged at 05.00 p.m. on Saturday at Hotel Mandakini Jaya International, Abids, Hyderabad
We request all of you to make it convenient to attend the meeting as well as the felicitation programme in large numbers and make it a grand success.
Yours sincerely,
Sd/-
(C.A.
GENERAL SECRETARY
BANKS TO ALLOW SINGLE ATM TRANSACTION FOR ONE PIN ENTRY
Next time you go to a bank ATM, be ready to re-enter your PIN afresh for every transaction you wish to conduct, such as money withdrawal, balance enquiry and checking account details.
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.
NH BANK SEES RATES GOING UP; REALITY SET TO CORRECT
According to Mr. R.V. Verma, Chairman and Managing Director, National Housing Bank expects lending rates to go up further and reality prices to correct because of the current tight liquidity situation and higher provisioning for realty loans.
CASH-STRAPPED BANKS UNLEASH FD RATE WAR
The good old days of high FD rates are back. As banks—hard-pressed for funds—raise fixed deposit rates, risk-averse investors, who prefer the safety of bank deposits that earn them a fixed amount at regular intervals, are all set to reap rich dividends.
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
C.B.O.A., A.P. CIRCULAR NO. 1 DATED 03.01.2001
CBOA, AP issued its circular No. 1 dated 03.01.2011 reproducing the circular received from AIBOC. The same is placed here for our readers.
CIRCULAR NO.: GS: 2011: 001 Date: 03.01.2011
TO ALL OFFICERS PLEASE CIRCULATE
Dear Friends,
We reproduce hereunder the CIRCULAR No. 1 dated 01-01-2011 received from A.I.B.O.C. for your information.
With best regards
Yours sincerely
Sd/-
(C.A.
GENERAL SECRETARY
“WELCOME, THE NEW YEAR 2011
We are yet again on the threshold of a new year 2011, which holds new hopes, new challenges and exciting new opportunities for all of us in the Banking Industry. In the backdrop of the country achieving 9% growth in GDP, the country has a daunting challenge of sustaining the growth and move forward to achieve new horizons on the economic front. With a robust financial market, our country has been in a position to attract FDI, in a substantial size, giving fillip to the economic activities, spurring growth in employment opportunities, thereby generating income to the vast mass of the country. The Government’s efforts to alleviate the problems of the poor, through generation of employment and massive literacy programmes, need to be augmented on a massive scale. Otherwise, attainment of 9+% of GDP will be a hollow concept, meaning nothing for more than 45% of poor people of the country who are below the poverty line struggling for a square meal. The Government, which is scam ridden, should come out with people oriented programmes, with clean and corrupt free administration. The lopsided policies of the Government, rampant corruption in Government Departments, glaring inequalities, yawning gap between the haves and have-nots, need to be addressed with a human heart added with strong political will.
The country’s quest for a permanent seat in the U.N. Security Council is on the anvil and is likely to be reality before soon. There is also an urgent need to strengthen our relationship with the neighboring countries, to achieve sustainable peace in the subcontinent.
The Banking Industry which showed a robust growth achieved spectacular results, achieving all time high profitability. The growth trajectory is expected to move northward in the coming year.
All India Bank Officers’ Confederation occupied the centre stage in the struggle for achieving a satisfactory salary revision and another option for pension, a long cherished dream come true, bringing joy to the PF optees. The saga of struggle to achieve the best of facilities, allowances, perquisites will continue, without any let up. Having achieved the best salary revision in the Banking Industry, it is AIBOC’s single minded pursuit and campaign to achieve the wholesome good of the officers’ community. We are yet to traverse a bumpy road to achieve the following residual issues.
I) Pension shall be upgraded /updated on revision of scales. There shall be higher pension for older pensioners, as available to Central Government Employees.
II) Commercial Bank allowance of Rs.5000/- p.m. is paid to all officers as available in RBI
III) Pension at 50% of last drawn Basic Pay without linking to number of years of service
IV) Improvement in commutation formula at 40% of Basic Pay
V) Introduction of separate Consumer Price Index (CPI) for Bank Employees
VI) Payment of Family Pension at enhanced rate for first 10 years
VII) Five day week for Bank Employees/Officers
VIII) Child care leave to women officers to be extended to two years as is being done in case of Central Government Women Employees
IX) Insurance covering the lending risks
X) Provision of 15 days lodging facility on transfer
XI) Setting –up of an exclusive Central Administrative Tribunal and Central Vigilance Commission for Bank Officers
XII) Pension option to officers who retired under VRS scheme of the Banks, retired on account of imposition of punishment of compulsory retirement, discharge, termination etc
XIII) Improvements in Housing and Conveyance loan facilities etc
XIV) Review of Service Rules and disciplinary proceedings etc.
The list is illustrative and not exhaustive. The AIBOC will be on a campaign trail from now onwards. We are aware of the aspirations and expectations of our Members across the country and our New Year resolution will be to achieve the above issues expeditiously.
Now that, we have achieved Salary Revision and Pension Option for the PF Optees, we cannot bask in the past glory and it is time for all of us to sweat more and more during peace time, so that there is less bleeding during war time.
With hopes of a bright and better future for all of us, we will move forward to achieve the goals set before us. Our unity and solidarity will be further fortified during the New Year. Let us march together hand in hand, with fusion of our hearts and minds to realize our dreams, hopes and aspirations.
Year’s end is neither an end nor a beginning, but a continued march on, with all the wisdom that experience can instill in us.
WISHING ALL OUR AFFILIATES AND MEMBERS
A VERY HAPPY, SUCCESSFUL NEW YEAR 2011”
With seasons greetings
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
OFFICERS’ COMMUNITY …… ZINDABAD
A.I.B.O.C. …… ZINDABAD
A.I.C.B.O.F …… ZINDABAD
C.B.O.A. …… ZINDABAD
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.
IDBI BANK HIKES RETAIL TERM DEPOSIT RATES BY UP TO 75 BPS
IDBI Bank announced an increase in the interest rate on certain retail term deposit schemes by up to 75 basis points, in line with similar steps by its peers.
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
PNB RAISES FIXED DEPOSIT RATES FOR NON-RESIDENTS
In line with increasing interest rates, Punjab National Bank announced hike in fixed deposits rates for non-residents denominated in rupee and foreign currencies by up to 10 basis points.
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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