Click here to download the reslut of SBI PO exam 2011
http://www.statebankofindia.com/webfiles/uploads/files/1321609880326_SBI_PO_WE_RESULT.pdf
Saturday, 19 November 2011
State Bank of India (SBI) Probationary officer PO result 2011 declared
Click here to download the reslut of SBI PO exam 2011
http://www.statebankofindia.com/webfiles/uploads/files/1321609880326_SBI_PO_WE_RESULT.pdf
Bank of India RECRUITMENT OF SPECIALIST OFFICERS Scale II Result Announced
Bank of India Announced result of its Specialist Officers for Marketing MMG Scale II Post.
Click here to download the file
http://www.bankofindia.com/UserFiles/File/DISP.xls
All the Best for those who got the call for Interveiw
Please CLICK here for Result
Interviews will be tentatively held from 12.12.2011. However, interviews for Law Officer Scale - I may be preponed. Candidates are advised to keep watching our web notices for postponement/preponement of interviews.Interview Call Letters can be downloaded from Bank's website, 15 days before the date of interview.
Tuesday, 15 November 2011
Banking Glossary (F)
Fiscal Year
Fixed Deposit
Fixed Rate
Floating Rate
Floor Limit (Credit Card)
Foreclosure
Foreign Currency Convertible Bond
Fraudulent Transaction (Credit Card)
A fraudulent credit card transaction is one in which the rules and regulations are not properly followed. Generally such transactions are unauthorized by credit card holders and involve a lost, stolen, fabricated, counterfeit and fraudulent processing of a credit card.
Fraud
Funding Volatility Ratio
A fiscal year is a 12-month accounting period used by any company and it does not necessarily follow the calendar year. India fiscal year is April to March.
A deposit of funds in a bank under an agreement stipulating that the funds must be kept on deposit for a stated period of time at a predefined interest rate.
Also called the fixed interest rate, it is a fixed amount of interest, which is chargeable for a specified duration or for the entire tenure of the loan.
Floating rate or variable interest rate as it is also called doesn't remain fixed for the entire tenure of the loan. It varies according to the market conditions. This rate is linked to an external, market determined benchmark e.g. LIBOR. The lending is expressed with a spread above or below the benchmark rate. Repricing takes place after a predetermined period say, 6 months when the lending rate will be revised with reference to the benchmark rate as on that day.
Floor limit is the maximum amount; credit card brands like Visa and MasterCard have set forth for a single transaction for specific types of merchants, outlets and branches. An authorization is required, usually via a phone call to exceed the floor limit.
Foreclosure is a legal procedure whereby property pledged as security for a debt is sold by the lender to pay the debt in the event of default in repayment.
A bond issued in foreign currency abroad giving the investor the option to convert the bond into equity at a fixed conversion price or as per a pre-determined pricing formula.
A fraudulent credit card transaction is one in which the rules and regulations are not properly followed. Generally such transactions are unauthorized by credit card holders and involve a lost, stolen, fabricated, counterfeit and fraudulent processing of a credit card.
Frauds have been classified as under, based mainly on the provisions of the Indian Penal Code :
(a) Misappropriation and criminal breach of trust. (b) Fraudulent encashment through forged instruments, manipulation of books of account or through fictitious accounts and conversion of property.
(c) Unauthorised credit facilities extended for reward or for illegal gratification. (d) Negligence and cash shortages. (e) Cheating and forgery. (f) Irregularities in foreign exchange transactions. (g) Any other type of fraud not coming under the specific heads as above. Funding Volatility Ratio
Liquid assets to current and savings deposits - (Higher the ratio, the better).
Banking and Financial News October 2011 Part 3 of 3
Canara Bank enters into MOU with M/s Brickwork Ratings India Pvt Ltd.:
Canara Bank signed a Memorandum of Understanding on 19.10.2011 with M/s Brickwork Ratings India (Pvt) Ltd, a Bangalore based credit rating agency for rating of units (both existing and prospective) under MSME sector, in the presence of Sri Ashok Kumar Gupta, Executive Director, Sri G Sreeram, GM and Sri Vivek Kulkarni, Managing Director, M/s Brickwork Ratings India Pvt. Ltd. This is yet another initiative of Canara Bank, to boost the MSME Credit growth.
Bankers fear new borrowers will prefer housing finance firms:The National Housings Bank’s (NHB) latest circular waiving penalty on full home loan prepayment may give housing finance companies (HFCs) an edge over banks this festival season. Bankers said that the RBI should also issue the same guidelines for banks to avoid a situation where HFCs have an advantage over banks. Mr R S Sangapure, General Manager, Central Bank of India, says, “Even the RBI may waive prepayment penalty soon. We expect to hear something in a month or so because prepayment penalty is an important parameter for customers to choose a lender.” (BS dt. 21.10.2011 p. 7)
Central Bank launches direct taxes payment facility:Central Bank of India has launched a direct taxes payment facility through the bank’s ATM network. This facility was inaugurated by Mr C. R. Sundaramurti, Controller General of Accounts, at the bank’s Connaught Circus branch in the Capital. Speaking on the occasion, Mr Sundaramurti urged banks to provide IT-enabled services so as to make banking a hassle-free experience for all. Mr M. V. Tanksale, Chairman and Managing Director of the bank, and Executive Directors, Ms V. R. Iyer and Mr R. K. Dubey were present on the occasion. (BL dt. 22.10.2011 p. 6)
Forex reserves up $5.269 b to $317.5 b:India’s foreign exchange reserves surged by $5.269 billion to $317.500 billion in the week ended October 14, according to Reserve Bank of India’s ‘Weekly Statistical Supplement’. This is the second week in a row that foreign exchange reserves have seen an increase. In the previous week ended October 7, foreign exchange reserves rose by $749 million to $312.231 billion. (BL dt. 22.10.2011 p. 6)
Value of cheque transaction down:The total value of transactions carried out through cheques across the country in August amounted to Rs 7.43 trillion, down 83% over that in the same month last year. Banks had cleared cheques worth Rs 8.11 trillion in August 2010, according to the RBI data. The number of cheques cleared by banks in August also went down by 5% from the same month last year. A total of 11.16 crore cheques were cleared by banks in the month under review, compared with over 11.75 crore in the corresponding month of 2010. (Mint dt. 24.10.2011 p. 10)
SBBJ to unveil special branch for rich & famous:This Diwali, top 1,000 millionaires of the country will get a well decorated greeting card from public sector lender State Bank of Bikaner and Jaipur (SBBJ) inviting to open a privileged account in its upcoming 'crorepati only' branch in Jaipur. The bank is targeting rich and famous, including Anil Ambani, Amitabh Bachchan, Mukesh Ambani, Kumar Mangalam Birla, Shah Rukh Khan and Sachin Tendulkar among other stalwarts of respective fields who can open account with a minimum opening balance of Rs 1 crore. This will be the second crorepati branch of the country after SBI's 'Kohinoor Banjara Premium Banking Centre' in Hyderabad which was opened last year. (ET dt. 24.10.2011 p. 13)
3-year rural posting 'must' for new bank clerks:New clerk recruits in public sector banks will have to serve three years mandatory in rural and semi-urban areas. Also, only graduates will now be eligible for taking clerical examinations for banks, as opposed to intermediate passed candidates at present. These are some of the recommendations of the A K Khandelwal Committee that have been asked to prepare a human resource plan incorporating these recommendations and get them approved by their Boards of Directors latest by December 31, 2011. The Khandelwal Committee was set up on October 22, 2009 to study human resource issues of public sector banks. The committee has made 105 recommendations. (Bl dt. 25.10.2011 p. 1)
Syndicate Bank ties up with Asit C. Mehta for online platform:Syndicate Bank has tied-up with Asit C. Mehta Investment Interrmediates (ACMIIL) for the launch of ‘Synd e-Trade’ — an online trading platform. This platform will enable the customers of Syndicate Bank to make investments in equities, derivatives and initial public offerings, said the bank in a release. “Customers who have a bank account and demat account with Syndicate Bank, will now have the facility to open an online investment account with Asit C. Mehta Investment Intermediaries Ltd,” said Mrs Deena Mehta, Managing Director, ACMIIL. (BL dt. 25.10.2011 p. 12)
Find a fake note? Fear not to report it:If you come into possession of a fake currency note inadvertently, don’t be afraid to report it. No more will you face the threat of a police case or be treated with suspicion, thanks to new norms of the Reserve Bank of India. As per the existing norms, banks are required to file a first information report (FIR) immediately upon detection of a fake note. However, hesitation among customers as well as bank officials in taking the matter to police has led to under-reporting of the detection of fake notes. To address this, the apex bank now has instructed banks that there is no need to register a case with police unless five or more pieces of fake notes are detected in a single transaction. In all other cases where one or up to four fake notes are detected, a consolidated report can be sent to the police at the end of every month, the Reserve Bank of India said. This decision was taken on the recommendations of the High Level Group on Systems and Procedures for Currency Distribution Chaired by Ms. Usha Thorat, former Deputy Governor, Reserve Bank of India. (BL dt 28.10.2011 p.14)
High savings deposit rate likely to dent banks’ profits:Fears of banks’ earnings plummeting in a deregulated savings deposit rate regime appear to have gripped investors, with most analysts hinting that profitability may come under pressure due to higher cost of funds amid slowing growth in advances. “The rise in the savings deposit rate will increase pressures on banks’ profitability,” Mr Suman Chowdhury, head of Crisil Ratings, said. The rating agency expects the lenders’ return on asset ratio to shrink by five basis points (bps) because of higher savings deposit rate, even if banks increase their transaction and service charges on such deposits. The RBI allowed banks to decide on their own the interest rate on savings deposits. The central bank, however, asked banks to pay a uniform rate on savings deposits up to Rs 100,000 irrespective of the amount in the account. (BS dt 27.10.2011 p.6)
Banks look to young talent as retirements bunch up:For young, talented bank employees with a passion for work, there is opportunity to move up the ladder. To fill the leadership vacuum likely to be created in the middle-to-upper rungs of management due to retirement, many banks are now drawing up strategies to deal with the situation. In fact, this is one of the key recommendations of Dr Anil Khandelwal Committee, which looked into the human resources function of bank. Some of the suggestions of the panel are now being implemented by the Government in a phased manner. It is estimated that nearly half of the senior managers in banks would begin to retire in next 3-5 years and the trend would continue for some more years. This will open up new avenues for the younger employees to grow even as the lateral movement will create fresh vacancies at the entry level. (BL dt 29.10.2011 p.6)
Forex reserves up $858 m to $318.35 b:India’s foreign exchange reserves rose by $858 million to $318.358 billion in the week ended October 21, according to Reserve Bank of India’s ‘Weekly Statistical Supplement’. In the previous week ended October 14, India’s foreign exchange reserves rose by $5.269 billion to $317.50 billion The reserves increased on account of a $861 million rise in the foreign currency assets, taking it to $282.514 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves. In the week under consideration, the euro strengthened against the dollar from $1.3737 on Monday to $ 1.3896 on Friday.
(BL dt 29.10.2011 p.6)
Canara Bank signed a Memorandum of Understanding on 19.10.2011 with M/s Brickwork Ratings India (Pvt) Ltd, a Bangalore based credit rating agency for rating of units (both existing and prospective) under MSME sector, in the presence of Sri Ashok Kumar Gupta, Executive Director, Sri G Sreeram, GM and Sri Vivek Kulkarni, Managing Director, M/s Brickwork Ratings India Pvt. Ltd. This is yet another initiative of Canara Bank, to boost the MSME Credit growth.
Bankers fear new borrowers will prefer housing finance firms:The National Housings Bank’s (NHB) latest circular waiving penalty on full home loan prepayment may give housing finance companies (HFCs) an edge over banks this festival season. Bankers said that the RBI should also issue the same guidelines for banks to avoid a situation where HFCs have an advantage over banks. Mr R S Sangapure, General Manager, Central Bank of India, says, “Even the RBI may waive prepayment penalty soon. We expect to hear something in a month or so because prepayment penalty is an important parameter for customers to choose a lender.” (BS dt. 21.10.2011 p. 7)
Central Bank launches direct taxes payment facility:Central Bank of India has launched a direct taxes payment facility through the bank’s ATM network. This facility was inaugurated by Mr C. R. Sundaramurti, Controller General of Accounts, at the bank’s Connaught Circus branch in the Capital. Speaking on the occasion, Mr Sundaramurti urged banks to provide IT-enabled services so as to make banking a hassle-free experience for all. Mr M. V. Tanksale, Chairman and Managing Director of the bank, and Executive Directors, Ms V. R. Iyer and Mr R. K. Dubey were present on the occasion. (BL dt. 22.10.2011 p. 6)
Forex reserves up $5.269 b to $317.5 b:India’s foreign exchange reserves surged by $5.269 billion to $317.500 billion in the week ended October 14, according to Reserve Bank of India’s ‘Weekly Statistical Supplement’. This is the second week in a row that foreign exchange reserves have seen an increase. In the previous week ended October 7, foreign exchange reserves rose by $749 million to $312.231 billion. (BL dt. 22.10.2011 p. 6)
Value of cheque transaction down:The total value of transactions carried out through cheques across the country in August amounted to Rs 7.43 trillion, down 83% over that in the same month last year. Banks had cleared cheques worth Rs 8.11 trillion in August 2010, according to the RBI data. The number of cheques cleared by banks in August also went down by 5% from the same month last year. A total of 11.16 crore cheques were cleared by banks in the month under review, compared with over 11.75 crore in the corresponding month of 2010. (Mint dt. 24.10.2011 p. 10)
SBBJ to unveil special branch for rich & famous:This Diwali, top 1,000 millionaires of the country will get a well decorated greeting card from public sector lender State Bank of Bikaner and Jaipur (SBBJ) inviting to open a privileged account in its upcoming 'crorepati only' branch in Jaipur. The bank is targeting rich and famous, including Anil Ambani, Amitabh Bachchan, Mukesh Ambani, Kumar Mangalam Birla, Shah Rukh Khan and Sachin Tendulkar among other stalwarts of respective fields who can open account with a minimum opening balance of Rs 1 crore. This will be the second crorepati branch of the country after SBI's 'Kohinoor Banjara Premium Banking Centre' in Hyderabad which was opened last year. (ET dt. 24.10.2011 p. 13)
3-year rural posting 'must' for new bank clerks:New clerk recruits in public sector banks will have to serve three years mandatory in rural and semi-urban areas. Also, only graduates will now be eligible for taking clerical examinations for banks, as opposed to intermediate passed candidates at present. These are some of the recommendations of the A K Khandelwal Committee that have been asked to prepare a human resource plan incorporating these recommendations and get them approved by their Boards of Directors latest by December 31, 2011. The Khandelwal Committee was set up on October 22, 2009 to study human resource issues of public sector banks. The committee has made 105 recommendations. (Bl dt. 25.10.2011 p. 1)
Syndicate Bank ties up with Asit C. Mehta for online platform:Syndicate Bank has tied-up with Asit C. Mehta Investment Interrmediates (ACMIIL) for the launch of ‘Synd e-Trade’ — an online trading platform. This platform will enable the customers of Syndicate Bank to make investments in equities, derivatives and initial public offerings, said the bank in a release. “Customers who have a bank account and demat account with Syndicate Bank, will now have the facility to open an online investment account with Asit C. Mehta Investment Intermediaries Ltd,” said Mrs Deena Mehta, Managing Director, ACMIIL. (BL dt. 25.10.2011 p. 12)
Find a fake note? Fear not to report it:If you come into possession of a fake currency note inadvertently, don’t be afraid to report it. No more will you face the threat of a police case or be treated with suspicion, thanks to new norms of the Reserve Bank of India. As per the existing norms, banks are required to file a first information report (FIR) immediately upon detection of a fake note. However, hesitation among customers as well as bank officials in taking the matter to police has led to under-reporting of the detection of fake notes. To address this, the apex bank now has instructed banks that there is no need to register a case with police unless five or more pieces of fake notes are detected in a single transaction. In all other cases where one or up to four fake notes are detected, a consolidated report can be sent to the police at the end of every month, the Reserve Bank of India said. This decision was taken on the recommendations of the High Level Group on Systems and Procedures for Currency Distribution Chaired by Ms. Usha Thorat, former Deputy Governor, Reserve Bank of India. (BL dt 28.10.2011 p.14)
High savings deposit rate likely to dent banks’ profits:Fears of banks’ earnings plummeting in a deregulated savings deposit rate regime appear to have gripped investors, with most analysts hinting that profitability may come under pressure due to higher cost of funds amid slowing growth in advances. “The rise in the savings deposit rate will increase pressures on banks’ profitability,” Mr Suman Chowdhury, head of Crisil Ratings, said. The rating agency expects the lenders’ return on asset ratio to shrink by five basis points (bps) because of higher savings deposit rate, even if banks increase their transaction and service charges on such deposits. The RBI allowed banks to decide on their own the interest rate on savings deposits. The central bank, however, asked banks to pay a uniform rate on savings deposits up to Rs 100,000 irrespective of the amount in the account. (BS dt 27.10.2011 p.6)
Banks look to young talent as retirements bunch up:For young, talented bank employees with a passion for work, there is opportunity to move up the ladder. To fill the leadership vacuum likely to be created in the middle-to-upper rungs of management due to retirement, many banks are now drawing up strategies to deal with the situation. In fact, this is one of the key recommendations of Dr Anil Khandelwal Committee, which looked into the human resources function of bank. Some of the suggestions of the panel are now being implemented by the Government in a phased manner. It is estimated that nearly half of the senior managers in banks would begin to retire in next 3-5 years and the trend would continue for some more years. This will open up new avenues for the younger employees to grow even as the lateral movement will create fresh vacancies at the entry level. (BL dt 29.10.2011 p.6)
Forex reserves up $858 m to $318.35 b:India’s foreign exchange reserves rose by $858 million to $318.358 billion in the week ended October 21, according to Reserve Bank of India’s ‘Weekly Statistical Supplement’. In the previous week ended October 14, India’s foreign exchange reserves rose by $5.269 billion to $317.50 billion The reserves increased on account of a $861 million rise in the foreign currency assets, taking it to $282.514 billion. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the euro, sterling and yen held in reserves. In the week under consideration, the euro strengthened against the dollar from $1.3737 on Monday to $ 1.3896 on Friday.
(BL dt 29.10.2011 p.6)
Sunday, 13 November 2011
Important General Awarness 9
1. Who is the chief advisor to the Governer ?
a) Chief Justice of Indian Supreme Court
b) Chief Minishter
c) Speaker of Lok Sabha
d) President
2. Article 370 of the constitution of India provides for
a) temporary provisions for Jammu & Kashmir
b) special provisions in respect of Nagaland
c) provisions in respect of the financial emergency
d) Special provisions in the respect of Manipur
3. The United Kingdom is a classic example of
a) Arusticracy
b) Absolute monarchy
c) Constitutinal Monarchy
d) Democracy
4. Who is called father of History ?
a) Plutarch
b) Herodotus
c) Justin
d) Pliny
5. Gobar gas (biogas) mainly contains
a) methane and ethane
b) methane and butane
c) propane and butane
d) methane, ethane, propane and propylene
6. The full form of "AM" regarding radio braodcasting ?
a) Amplitude Movement
b) Anywhere Movement
c) Amplitude Modulation
d) None of above
7. Which Indian state is having border Nathu La , between India and China
a) Sikkim
b) Arunachal Pradesh
c) Himachal Pradesh
d) Jammu & Kashmir
8. 2010 FIFA Football worldcup was held in which nation ?
a) England
b) South Africa
c) Zimbawe
d) Brazil
9. The disease in which the sugar level of blood increases is known as
a) Diabetes mellitus
b) Diabetes insipidus
c) Diabetes imperfectus
d) Diabetes sugarensis
10. Prime Misnister of Great Britain is
a) Tonay Blair
b) Gordown Brown
c) Nicholos Sarkozy
d) David Cameroon
11. What is the principle ore of Aluminium ?
a) Dolomite
b) Copper
c) Lignite
d) Bauxite
12. The highest body which approves the Five Year Plan in India
a) Planning Commission
b) Lok sabha
c) Finance Ministry
b) Union Cabinet
13. Current Minimum Interest rate on Saving bank account is
a) 3.5%
b) 4%
c) 6%
d) 5.5%
14. The new hiked limit of PPF account is (in INR)
a) 70,000
b) 1,00,000
c) 1,80,000
d) 1,90,000
15. The new interest rate on PPF account is
a) 8%
b) 8%
c) 9%
d) 8.6%
_____________________
KEYS
1. (b) 2. (a) 3. (c) 4. (b) 5. (b) 6. (c) 7. (a) 8. (b) 9. (a) 10. (d) 11. (d) 12. (b) 13. (b) 14. (b) 15. (d)
a) Chief Justice of Indian Supreme Court
b) Chief Minishter
c) Speaker of Lok Sabha
d) President
2. Article 370 of the constitution of India provides for
a) temporary provisions for Jammu & Kashmir
b) special provisions in respect of Nagaland
c) provisions in respect of the financial emergency
d) Special provisions in the respect of Manipur
3. The United Kingdom is a classic example of
a) Arusticracy
b) Absolute monarchy
c) Constitutinal Monarchy
d) Democracy
4. Who is called father of History ?
a) Plutarch
b) Herodotus
c) Justin
d) Pliny
5. Gobar gas (biogas) mainly contains
a) methane and ethane
b) methane and butane
c) propane and butane
d) methane, ethane, propane and propylene
6. The full form of "AM" regarding radio braodcasting ?
a) Amplitude Movement
b) Anywhere Movement
c) Amplitude Modulation
d) None of above
7. Which Indian state is having border Nathu La , between India and China
a) Sikkim
b) Arunachal Pradesh
c) Himachal Pradesh
d) Jammu & Kashmir
8. 2010 FIFA Football worldcup was held in which nation ?
a) England
b) South Africa
c) Zimbawe
d) Brazil
9. The disease in which the sugar level of blood increases is known as
a) Diabetes mellitus
b) Diabetes insipidus
c) Diabetes imperfectus
d) Diabetes sugarensis
10. Prime Misnister of Great Britain is
a) Tonay Blair
b) Gordown Brown
c) Nicholos Sarkozy
d) David Cameroon
11. What is the principle ore of Aluminium ?
a) Dolomite
b) Copper
c) Lignite
d) Bauxite
12. The highest body which approves the Five Year Plan in India
a) Planning Commission
b) Lok sabha
c) Finance Ministry
b) Union Cabinet
13. Current Minimum Interest rate on Saving bank account is
a) 3.5%
b) 4%
c) 6%
d) 5.5%
14. The new hiked limit of PPF account is (in INR)
a) 70,000
b) 1,00,000
c) 1,80,000
d) 1,90,000
15. The new interest rate on PPF account is
a) 8%
b) 8%
c) 9%
d) 8.6%
_____________________
KEYS
1. (b) 2. (a) 3. (c) 4. (b) 5. (b) 6. (c) 7. (a) 8. (b) 9. (a) 10. (d) 11. (d) 12. (b) 13. (b) 14. (b) 15. (d)
Thursday, 10 November 2011
Banking Glossary (E)
Early Repayment Charge (Prepayment charge)
Charge that banks and financial institutions levy on borrowers when they prepay the loan amount before the end of loan tenure. Early repayment charge is also called prepayment penalty.
Electronic Clearing Service (ECS)
Electronic Clearing Facility : An inter bank arrangement where by a customer can give instructions to his bank where he holds a current or savings account to pay the monthly installments of payments due on loans / credit cards held with another bank.
Electronic Clearing Service (ECS) Credit ECS Credit is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.
ECS Credit can be utilised for payments like interest / dividend etc. in the accounts maintained with other banks by another bank.
Electronic Clearing Service (ECS) Debit ECS Debit is used for raising debits to a number of accounts of consumers / account holders for crediting a particular institution.
It is a scheme under which an account holder with a bank can authorise an ECS user to recover an amount at a prescribed frequency by raising a debit in his account. The ECS user has to collect an authorisation, which is called ECS mandate for raising such debits. These mandates have to be endorsed by the bank branch maintaining the account.
ECS Debit is normally used for collections, which include payment of utility bills (electricity, telephone), collection of taxes etc.
Electronic Funds Transfer (EFT) Any transfer of funds initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape.
EMI This refers to the Equated Monthly Installment (EMI) to be paid to the Bank towards the loan taken by the borrowers on a monthly basis. The EMI comprises of Interest and Principal component.
EMI Due date The payment due date assigned for the loan account to recover the EMI.
E-Payment On line payment system that facilitates payment online from the customer's account.
Expired Card A credit card or debit / atm card whose validity date has passed is an expired credit card.
Charge that banks and financial institutions levy on borrowers when they prepay the loan amount before the end of loan tenure. Early repayment charge is also called prepayment penalty.
Electronic Clearing Service (ECS)
Electronic Clearing Facility : An inter bank arrangement where by a customer can give instructions to his bank where he holds a current or savings account to pay the monthly installments of payments due on loans / credit cards held with another bank.
Electronic Clearing Service (ECS) Credit ECS Credit is used for affording credit to a large number of beneficiaries by raising a single debit to an account, such as dividend, interest or salary payment.
ECS Credit can be utilised for payments like interest / dividend etc. in the accounts maintained with other banks by another bank.
Electronic Clearing Service (ECS) Debit ECS Debit is used for raising debits to a number of accounts of consumers / account holders for crediting a particular institution.
It is a scheme under which an account holder with a bank can authorise an ECS user to recover an amount at a prescribed frequency by raising a debit in his account. The ECS user has to collect an authorisation, which is called ECS mandate for raising such debits. These mandates have to be endorsed by the bank branch maintaining the account.
ECS Debit is normally used for collections, which include payment of utility bills (electricity, telephone), collection of taxes etc.
Electronic Funds Transfer (EFT) Any transfer of funds initiated by electronic means, such as an electronic terminal, telephone, computer, ATM or magnetic tape.
EMI This refers to the Equated Monthly Installment (EMI) to be paid to the Bank towards the loan taken by the borrowers on a monthly basis. The EMI comprises of Interest and Principal component.
EMI Due date The payment due date assigned for the loan account to recover the EMI.
E-Payment On line payment system that facilitates payment online from the customer's account.
Expired Card A credit card or debit / atm card whose validity date has passed is an expired credit card.
Tuesday, 1 November 2011
Banking and Financial News October 2011 Part 2 of 3
2% interest subvention on rupee export credit extended:
The Government, on Tuesday, announced the extension of 2 per cent interest subvention on rupee export credit for a year with effect from April 1, 2011. In a notification the Reserve Bank of India said banks should reduce the interest rate chargeable to exporters eligible for subvention subject to a minimum of 7 per cent. Banks may pass on the benefit of 2 per cent interest subvention completely to the eligible exporters, Reserve Bank of India said. The four sectors which have been given the subvention are handicrafts, handlooms, carpet and small and medium enterprises.
(BL dt. 12.10.2011 p. 6)
Value of credit card transactions rises 29% in August:
Transactions carried out using credit cards in August were worth Rs 8,078.98 crore, 29.1 per cent more than that in the same month last year. Credit card transactions in August, 2010, amounted to Rs 6,259.42 crore. The number of credit cards in circulation has, however, declined by over 6.7 per cent to 1.75 crore as of August 31, 2011, from 1.88 crore at the end of the same period last year. According to the Reserve Bank of India data, transactions using credit card during the April-August period of this fiscal stood at Rs 37,678.25 crore, against Rs 29,024.75 crore in the same period of 2010-11.
(BL dt 11.10.2011 p.6)
Now, get a car loan online:
If you have a clean financial record, it is now possible to get a car loan instantly with a click of the mouse. State Bank of Bikaner and Jaipur has on Wednesday rolled out instant online car loan in which one can obtain a sanction letter if he/she is eligible for the loan. All one has to do is apply for the loan on bank’s Website - http://www.sbbjbank.com/ - and fill a one-page form. After checking the eligibility of the applicant, a sanction letter will be issued within seconds. “Such a service of instant sanction is not available with any Bank in India, in public or private sector,’’ Mr Shiv Kumar, Managing Director, State Bank of Bikaner and Jaipur, said in a release. (BL dt. 13.10.2011 p. 6)
Bajaj Finance ropes in Standard Chartered Bank for credit cards:
Bajaj Finance Limited, a non-banking financial company (NBFC), is set enter the credit card business by launching a co-branded credit card with Standard Chartered Bank. To start with, the NBFC would focus only on captive clients. It aims to issue 150,000-200,000 cards within 12 months of starting operations. Initially, the company would offer only premium segments cards, Platinum and World, powered by Mastercard, and the risk would be managed by the bank. The company is expected to announce its foray in the credit card business in a week. (BS dt. 13.10.2011 p. 7)
N Shakar is new ECGC chief:
The Government has appointed Mr N Shankar as the Chairman and Managing Director of the Export Credit Guarantee Corporation of India. The appointment is for three years Mr Shankar is currently an Executive Director at the Export-Import Bank of India. (BL dt 13.10.2011 p.6)
Govt Plans Holding Co for public sector banks:
The government is planning to change the way it controls state run banks, so that these institutions can raise lots of additional capital without the government losing control of the banks. The finance ministry thinks that one common holding company to unite 21 state run banks could eliminate the ad-hoc last minute infusion of resources that has been the practice so far. To retain control over banks, it is thinking of innovations like golden shares or shares with differential voting rights. A holding company structure allow for innovation in capital infusion, the reason why nearly 85% of banks in the US have such a structure. The holding structure will allow the parent company to raise debt from abroad and from domestic markets, the government’s share is bound to go down. (ET dt 14.10.2011 p.11)
Allahabad Bank ties up with Aditya Birla Money for online services:
Allahabad Bank has tied up with Aditya Birla Money to provide its customers the convenience of investing in financial products online. Aditya Birla Money is the broking, wealth management and retail distribution arm of Aditya Birla Financial Services Group. With online trading gaining momentum, the tie-up will enable Aditya Birla to tap the 27 million customer base of Allahabad Bank and provide them with online trading facilities, said a press statement issued by the bank. The bank’s accountholders will be able to benefit from the company’s single window interface to invest in equities, derivatives, commodities and IPOs. (BL dt. 18.10.2011 p. 6)
Focus on core business, centre tells banks:
The government has asked public sector banks to concentrate on “core banking activities” and delay their plans of floating insurance or other businesses, which are capital-intensive, at least till the end of the current financial year. The move comes at a time when the government is facing a cash crunch, and has increased its market borrowing plan by Rs 53,000 crore in the second half of the current financial year. The move would impact banks like Syndicate Bank, Indian Bank, Central Bank of India and Indian Overseas Bank (IOB), which had expressed interest to float either insurance or asset management businesses, since these would now have to put their plans on hold. "In view of the current market conditions, banks are asked to conserve their capital and use the resources efficiently. Hence, banks are advised to stay away from any new business initiatives which would require substantial capital," said a source, on the condition of anonymity. (BS dt. 19.10.2011 p. 6)
The Government, on Tuesday, announced the extension of 2 per cent interest subvention on rupee export credit for a year with effect from April 1, 2011. In a notification the Reserve Bank of India said banks should reduce the interest rate chargeable to exporters eligible for subvention subject to a minimum of 7 per cent. Banks may pass on the benefit of 2 per cent interest subvention completely to the eligible exporters, Reserve Bank of India said. The four sectors which have been given the subvention are handicrafts, handlooms, carpet and small and medium enterprises.
(BL dt. 12.10.2011 p. 6)
Value of credit card transactions rises 29% in August:
Transactions carried out using credit cards in August were worth Rs 8,078.98 crore, 29.1 per cent more than that in the same month last year. Credit card transactions in August, 2010, amounted to Rs 6,259.42 crore. The number of credit cards in circulation has, however, declined by over 6.7 per cent to 1.75 crore as of August 31, 2011, from 1.88 crore at the end of the same period last year. According to the Reserve Bank of India data, transactions using credit card during the April-August period of this fiscal stood at Rs 37,678.25 crore, against Rs 29,024.75 crore in the same period of 2010-11.
(BL dt 11.10.2011 p.6)
Now, get a car loan online:
If you have a clean financial record, it is now possible to get a car loan instantly with a click of the mouse. State Bank of Bikaner and Jaipur has on Wednesday rolled out instant online car loan in which one can obtain a sanction letter if he/she is eligible for the loan. All one has to do is apply for the loan on bank’s Website - http://www.sbbjbank.com/ - and fill a one-page form. After checking the eligibility of the applicant, a sanction letter will be issued within seconds. “Such a service of instant sanction is not available with any Bank in India, in public or private sector,’’ Mr Shiv Kumar, Managing Director, State Bank of Bikaner and Jaipur, said in a release. (BL dt. 13.10.2011 p. 6)
Bajaj Finance ropes in Standard Chartered Bank for credit cards:
Bajaj Finance Limited, a non-banking financial company (NBFC), is set enter the credit card business by launching a co-branded credit card with Standard Chartered Bank. To start with, the NBFC would focus only on captive clients. It aims to issue 150,000-200,000 cards within 12 months of starting operations. Initially, the company would offer only premium segments cards, Platinum and World, powered by Mastercard, and the risk would be managed by the bank. The company is expected to announce its foray in the credit card business in a week. (BS dt. 13.10.2011 p. 7)
N Shakar is new ECGC chief:
The Government has appointed Mr N Shankar as the Chairman and Managing Director of the Export Credit Guarantee Corporation of India. The appointment is for three years Mr Shankar is currently an Executive Director at the Export-Import Bank of India. (BL dt 13.10.2011 p.6)
Govt Plans Holding Co for public sector banks:
The government is planning to change the way it controls state run banks, so that these institutions can raise lots of additional capital without the government losing control of the banks. The finance ministry thinks that one common holding company to unite 21 state run banks could eliminate the ad-hoc last minute infusion of resources that has been the practice so far. To retain control over banks, it is thinking of innovations like golden shares or shares with differential voting rights. A holding company structure allow for innovation in capital infusion, the reason why nearly 85% of banks in the US have such a structure. The holding structure will allow the parent company to raise debt from abroad and from domestic markets, the government’s share is bound to go down. (ET dt 14.10.2011 p.11)
Allahabad Bank ties up with Aditya Birla Money for online services:
Allahabad Bank has tied up with Aditya Birla Money to provide its customers the convenience of investing in financial products online. Aditya Birla Money is the broking, wealth management and retail distribution arm of Aditya Birla Financial Services Group. With online trading gaining momentum, the tie-up will enable Aditya Birla to tap the 27 million customer base of Allahabad Bank and provide them with online trading facilities, said a press statement issued by the bank. The bank’s accountholders will be able to benefit from the company’s single window interface to invest in equities, derivatives, commodities and IPOs. (BL dt. 18.10.2011 p. 6)
Focus on core business, centre tells banks:
The government has asked public sector banks to concentrate on “core banking activities” and delay their plans of floating insurance or other businesses, which are capital-intensive, at least till the end of the current financial year. The move comes at a time when the government is facing a cash crunch, and has increased its market borrowing plan by Rs 53,000 crore in the second half of the current financial year. The move would impact banks like Syndicate Bank, Indian Bank, Central Bank of India and Indian Overseas Bank (IOB), which had expressed interest to float either insurance or asset management businesses, since these would now have to put their plans on hold. "In view of the current market conditions, banks are asked to conserve their capital and use the resources efficiently. Hence, banks are advised to stay away from any new business initiatives which would require substantial capital," said a source, on the condition of anonymity. (BS dt. 19.10.2011 p. 6)
Banking and Financial News October 2011 Part 1 of 3
FDI inflows rise sharply in first quarter:The net direct investment into India increased significantly by $7.2 billion during the April to June 2011 period, against $2.9 billion in the corresponding quarter last year, according to the Reserve Bank of India’s balance of payments data, released on Friday. Direct investment into India during the first quarter was to the tune of $12.9 billion ($6.1 billion in the corresponding quarter last year). This included investment in equities, which increased to $9.4 billion from $3.7 billion last year. Direct investment by India increased by $5.7 billion in the reporting period, against $3.2 billion in the year-ago period. However, portfolio investment in India was lower at $2.5 billion against $3.5 billion. (BL dt. 01.10.2011 p. 6)
Catholic Syrian Bank gets shareholder nod to hike share capital:The 90th annual general meeting of the Catholic Syrian Bank has unanimously passed special resolutions seeking shareholders’ approvals for increasing the bank’s share capital by way of issue of equity shares on preferential basis and/or through private placement mode. The AGM also passed a resolution for increasing the FII limit up to 49 per cent of the bank’s paid-up capital and also for establishing subsidiary or associate companies, firms, trusts, etc. (BL dt. 01.10.2011 p. 6)
Pilot study on mobile-enabled Kisan Credit Card launched:Pallavan Grama Bank, Region Rural bank sponsored by Indian Bank, has launched a pilot project on mobile-enabled Kissan Credit Card aimed at the farming community. This pilot project is funded by Nabard (National Bank for Agriculture and Rural Development). This project with a Rs 44.66 lakh grant assistance from Nabard taken up in Villupuram district, Tamil Nadu, aims at facilitating a paperless, doorstep banking transactions by farmers, who can use their mobile phones for various services such as purchase of farm inputs, cash withdrawal and deposit, said Mr T M Bhasin, Chairman and Managing Director of Indian Bank. (BL dt. 03.10.2011 p. 4)
SBM unveils new initiatives to make customers 'happy':Aggrieved customers of State Bank of Mysore now need to just send an "unhappy" SMS to an exclusive number. Within seconds, an auto-generated message acknowledges the message receipt with a complaint number, the sender's mobile number, date and time of receipt of complaint etc. "The 'SMS unhappy' project is one of our measures to ensure a customer-friendly grievance redressal mechanism. It envisage a simple, paperless means to facilitate our customers to represent their complaints for an early and economical resolution," Mr Dilip Mavinkurve, Managing Director, State Bank of Mysore told news-persons while launching the green banking initiatives of the bank. The 'unhappy' message should be sent to 9900020002. (BL dt. 03.10.2011 p. 3)
State-run banks may be allowed to revamp wages:State-run banks, which lag behind private sector and foreign rivals when it comes to staff compensation and HR policies, may soon get the freedom to raise their standards with the government set to speed up the revamp of personnel management at lenders controlled by it. The government has accepted most of the recommendations made by a panel headed by former Bank of Baroda chief Mr A.K. Khandelwal on HR policies at public-sector banks (PSBs) last year, according to two persons familiar with the development. They asked not to be named as the information is yet to be made public. “Once implemented, this will pave way to significant changes in the way employees are treated,” said one of the persons. State-run banks will be allowed to decide their own wage structure based on individual efficiency and the lender’s overall performance, besides officers getting variable pay and performance-based perks. (Mint dt 04.10.2011 p.9)
Union Bank arm to allow mutual fund deals on ATMs:Union KBC Asset Management Company Pvt Ltd (Union KBC), a subsidiary of Union Bank of India, is to introduce mutual fund-related transactions through ATMs. Initially, the facility christened as ATMfunds@Union Bank will be available to all the customers of Union Bank, who have a debit card. The facility will be launched nationwide this month, Mr G. Pradeepkumar, CEO of Union KBC, said here on Monday. It will also be launching on-line facilities for mutual fund-related transactions shortly. Union Bank KBC has also introduced UB KBC Prabodh, a series of investor awareness programs for mutual fund investors. (BL dt 04.10.2011 p.9)
Mr. Kumar is CMD of Corporation Bank:Mr. Ajai Kumar has been appointed the new Chairman & managing Director of Corporation Bank,a Mangalore-based public sector unit. Mr Kumar, formerly an executive director of UCO bank took charge on October 1st. (FE dt 04.10.2011 p.18)
IRDA slaps Rs 5 lakh fine on HDFC Standard Life:The Insurance Regulatory and Development Authority (IRDA) has imposed a penalty of Rs 5 lakh on HDFC Standard Life Insurance Company for violating norms on claim settlements. The fine was imposed based on an enquiry conducted by the regulator with regard to a complaint filed by a policy holder on nonreceipt of death claims in 2009. “It is noticed that the claim was repudiated after a gap of around 12 months from the date of receipt of claim intimation. (BL 07.10.2011 p.8)
BoI opens branch in NewZealand: Public Sector lender Bank of India on Thursday said it had opened a branch in New Zealand. The bank will offer its full range of retail banking products, including savings and current accounts, cards, term and call deposits, mortgages and international funds transfers to its New Zealand customers, the bank said. (BS dt 07.10.2011 p.4)
Another round of test to be held for bank Officer's posts:It is good news for about two lakh job aspirants who missed the first Common Written Examination for recruitment of Probationary Officers and Management Trainees in 19 Public Sector banks held in September. The Institute of Banking Personnel Selection will conduct a supplementary examination on November 13. Those who could not take the earlier examination can do so now. Despite clear instructions, some candidates came to the venues on September 18 with call letters but without photographs affixed, original fee receipts and identity proof. They were not allowed to write the exam, said Mr. M Balachandran, Institute Director. (BL dt 05.10.2011 p.6)
Allow housing finance cos to levy prepayment charges: Deepak Parekh:HDFC Chairman, Mr Deepak Parekh, disagrees with the present regulatory thinking on allowing complete waivers of prepayment charges. The Reserve Bank of India (RBI), which is the banking regulator, had recently floated a proposal that seeks to place a ban on levy of prepayment charges on floating rate loans. Banks have sought time to respond to this RBI proposal prohibiting recovery of prepayment charges on floating rate loans. The National Housing Bank (NHB), which is the housing finance regulator, has already stipulated that no prepayment penalty should be levied on a home-loan borrower when the prepayments are made from a customer’s own resources. Serious problems may arise if there is complete waiver of all prepayment charges, Mr Parekh said at a CAFRAL-NHB roundtable on housing finance on Friday. (BL dt 08.10.2011 p.6)
You can be jailed for default in fund transfer via ECS:If you pay your loans through the electronic clearing service, you better ensure there is sufficient fund in your account. Else, you can land up in jail, according to a latest circular from the Reserve Bank of India.Increasingly, people are opting to repay loans or other financial commitments electronically by giving a mandate to banks for monthly deduction from their accounts on a specified date instead of giving post-dated cheques. But many of these commitments are apparently not being honoured as there is no clarity on the punishment. However, in a circular sent to banks a couple of weeks ago, the apex bank communicated that the same set of rules against dishonour of cheques, according to Section 138 of the Negotiable Instruments Act, 1881, would apply for dishonour of electronic fund transfer instruction. “Section 25 of the Payment and Settlement Systems Act, 2007 accords the same rights and remedies to the payee (beneficiary) against the dishonour of electronic funds transfer instruction as are available to the payee under the Negotiable Instruments Act,'' the RBI said. (BL dt. 09.10.11 p 1)
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