4,071 banking fraud cases involving Rs 36,342 cr reported during H1 FY2022: RBI report

During the first half of the financial year 2021-22, the reported number of fraud cases in various banking operations increased to 4,071 as against 3,499 in the year-ago period, the RBI's Report on Trend and Progress of Banking in India 2020-21 showed. However, the amount involved in frauds in various banking operations based on the date of reporting declined to Rs 36,342 crore during April-September 2021 from Rs 64,261 crore in the corresponding period of the previous financial year, the report said on Tuesday.

In H1 2021-22, banks saw 1,802 reported cases of frauds amounting to Rs 35,060 crore which were related to advances. There were 1,532 reported cases of frauds linked to card/internet, involving Rs 60 crore, the report showed.

In terms of deposits, the number of reported cases of frauds stood at 208 of an amount involving Rs 362 crore, the report said.

During H1 of 2021-22, private sector banks (PVBs) accounted for more than half of the number of reported fraud cases. In value terms, however, the share of public sector banks (PSBs) was higher, indicating predominance of high-value frauds, it said.

While the major share of loan-related cases pertained to PSBs, PVBs accounted for a majority of card/ internet and cash-related cases, the report said.

In the financial year 2020-21, the reported number of cases of frauds declined to 7,363 (Rs 1,38,422 crore) from 8,703 cases (Rs 1,85,468 crore) in 2019-20, it said.

In terms of the amount involved, a bulk of these cases occurred earlier but were reported during the year 2020-21, it said.

In terms of the area of operations, an overwhelming majority of cases were reported during 2020-21 in terms of number and amount involved related to advances, while frauds concerning card or internet transactions made up 34.6 per cent of the number of cases, the report said.

In 2020-21, there was a marked increase in frauds related to PVBs, both in terms of number as well as the amount involved, the RBI report said.

Source: EconomicTimes

IndusInd Bank launches ‘Green Fixed Deposits': Check features and benefits here

Mumbai: IndusInd Bank has announced the launch of ‘Green Fixed Deposits’ where the deposit proceeds will be used to finance projects and firms supporting the United Nations Sustainable Development Goals (SDGs). IndusInd Bank is amongst few banks globally, to bring forth this proposition, thereby integrating SDG into a regular fixed deposit product.

These deposits shall be offered to both retail and corporate customers. The Bank, will use the proceeds from these deposits to finance a wide array of sectors falling under the SDG category including, energy efficiency, renewable energy, green transport, sustainable food, agriculture, forestry, waste management, and greenhouse gas reduction.

Speaking about the launch, Ms. Roopa Satish, Head - CSR and Sustainable Banking, IndusInd Bank said, “At IndusInd Bank, sustainable banking has always been a critical area of focus. We are the only bank in India to secure ‘band A’ in the Carbon Disclosure Project and we have maintained our leadership capability over the last 5 years. We are now delighted to bring forth Green deposits that provide our customers with an opportunity to contribute towards building a cleaner and better society. We encourage both corporate and retail depositors to avail this opportunity. The interest on Green deposit remains attractive with an additional benefit of 50 basis point for senior citizens. In all ways, it is similar to a regular bank deposit but in addition, depositors will be issued a ‘Green’ certificate as well as an ‘Assurance’ certificate confirming the end use of deposit proceeds at the end of the financial year."

Features & Benefits of Green Fixed Deposit

• Higher rate of interest up to 6% per annum
• Additional returns for the senior citizens of 0.50% per annum
• Deposits backed by insurance for up to ₹5 lakh
• Low pre-mature withdrawal charges of only 1%
• Assurance certification from a reputed external consulting firm

The launch of ‘Green’ deposits’ is part of IndusInd Bank's larger commitment of creating value for all its stakeholders, and remaining focused at driving sustainable economic growth of the country.

Source: Livemint

Vasudevan reappointed as MD, CEO of Equitas Small Finance Bank for 3 years

Equitas Small Finance Bank Limited board of directors has approved the proposal for re-appointment of Vasudevan Pathangi Narasimhan (PN) as the MD & CEO for three years, with effect from July 23, 2022, up to July 22, 2025, subject to the RBI and shareholders' approval.

Vasudevan is currently serving as the MD and CEO of the bank. He was appointed as the MD of erstwhile Equitas Finance Limited, now a bank, with effect from July 23, 2016. Before that, he was the MD of Equitas Holdings Limited.

He holds a bachelor's degree in science (physics) from University of Madras. A qualified company secretary from the Institute of Company Secretaries of India, he has extensive experience in the financial services sector.

Vasudevan has worked for about two decades in Cholamandalam Investment and Finance Company Limited, part of the Murugappa Group, where he joined as a management trainee and resigned as the vice president and head of vehicle finance.

He has also served as the executive vice president and head of consumer banking group in Development Credit Bank Limited for over one and a half years. Before that, he was the chairman of the managing committee of the South India Hire Purchase Association for fiscal year 2006.

Source: Livemint

RBI approves re-designation of Rajiv Anand as Axis Bank Deputy MD

The Reserve Bank of India has approved the re-designation of Rajiv Anand as the Deputy Managing Director of Axis Bank, the lender said on Monday. In October this year, the board of directors of the bank approved to re-designate Rajiv Anand as the Deputy Managing Director of the bank, subject to approval of the Reserve Bank of India, and the shareholders of the bank."The Reserve Bank of India vide its letter dated December 27, 2021, has approved the re-designation of Rajiv Anand as the Deputy Managing Director of the bank from the date of its communication and co-terminus with his approved term of appointment till August 3, 2022 (both days inclusive)," Axis Bank said in a regulatory filing.Anand is the Executive Director (Wholesale Banking) of the bank since December 2018.Anand, 55, had joined Axis Bank in May 2013 from its asset management arm, Axis Asset Management Co Ltd, where he was the Managing Director & CEO.Anand was appointed as a director of the bank in May 2016 and thereafter as the Executive Director (Retail Banking) in August 2016.
Source: Economic Times

HDFC Bank ties up with IPPB to deliver banking services in semi-urban, rural areas

HDFC Bank has tied up with India Post Payments Bank (IPPB) to offer its banking services to the unbanked and underserved segments in semi-urban and rural areas. A memorandum of understanding was signed between HDFC Bank and IPPB to cater to the majority of over 4.7 crore customer base of IPPB.

About 90 per cent of IPPB customers reside in rural areas, which may benefit from this tie-up.

HDFC Bank said the strategic alliance will enable IPPB to provide affordable and diversified offerings, including access to finance, to its customers through its innovative Doorstep Banking Service.

With nearly 2,00,000 postal service providers (Postmen and Gramin Dak Sevaks) equipped with micro ATMs and biometric devices, IPPB caters to the needs and requirements of various customer segments.

With this partnership, HDFC Bank aims to further strengthen its financial inclusion drive by leveraging the robust and extensive distribution network of IPPB's 650 branches and over 136,000 banking access points across India, the bank said on Monday.

"By bringing banking at the doorsteps of customers, IPPB is steadily transforming and reshaping the financial inclusion landscape across the country.

"Our endeavour is to build a unified platform offering various citizen-centric services, including credit, at the doorstep by leveraging digital technologies and alternate data sources in collaboration with lending partners," J Venkatramu, Managing Director and CEO, India Post Payments Bank, said.

Smita Bhagat, Country Head - GIB, CSC, e-Commerce, Start-ups and Inclusive Banking Initiatives Group, HDFC Bank, said the bank has been championing the cause of financial inclusion through several initiatives and this partnership is one more step in that direction.

"This alliance will allow us to take our best-in-class products and services to millions of IPPB customers in the remotest corners of India," Bhagat said.

The private sector lender said it is a significant tie-up for HDFC Bank as it will help expand its customer outreach to the last mile.

IPPB offers services such as savings and current account, 24x7 instant money transfer, Aadhaar enabled Payment System, DBT, including Mahatma Gandhi National Rural Employment Guarantee Scheme and payment of scholarships, bill and utility payments, digital life certificate, third party products among others. PTI KPM BAL BAL.

Source: Economic Times

IndusInd Bank, NPCI partner to simplify cross-border remittances through UPI

Indians can now get remittance money from their foreign sources in a much easier way as IndusInd Bank has tied up with NPCI to facilitate cross-border money transfer by using UPI IDs of the beneficiaries. This will obviate the need to remember one's bank account details to send money.

IndusInd Bank has joined hands with the National Payments Corporation of India (NPCI) to offer real-time cross-border remittances to India using UPI IDs, for its money transfer operator (MTO) partners, the bank said in a statement on Monday.

With this initiative, IndusInd Bank has become the first Indian bank to go live on UPI for cross-border payments or NRI remittances.

Under this arrangement, the MTOs will use the IndusInd Bank channel to connect with the NPCI's UPI payment systems for validation and cross-border payment settlement into beneficiary accounts.

To begin with, IndusInd Bank has started with Thailand for foreign inward remittance (FIR) through UPI by using DeeMoney.

DeeMoney is a Thailand-based financial solutions provider offering money transfers and foreign currency exchange services.

By adding the UPI IDs of the beneficiaries' in India on the DeeMoney website, one can easily transfer funds.

IndusInd Bank said it also plans to add more partners in various other countries for cross-border payments via UPI in the near future.

"It's a significant step towards simplifying remittances as a functionality, as individuals residing overseas will now be able to conveniently transfer money to a beneficiary by simply adding their UPI IDs, without having to remember their bank account details," Soumitra Sen, head (consumer banking and marketing) at IndusInd Bank, said.

Sen added that enabling foreign remittance through UPI is a major milestone towards strengthening its usage as a platform, and will go a long way in enhancing its adoption by NRIs across geographies.

NPCI Chief Operating Officer Praveena Rai hoped that the initiative will offer a much simpler and more efficient remittance experience for international travellers using UPI.

"We are confident that our association would act as one of the major contributing factors towards the evolution of cross-border payments through UPI," she said.

Source: Economic Times

RBL Bank MD and CEO Vishwavir Ahuja steps down, Rajeev Ahuja takes over

RBL Bank has announced that MD and CEO Vishwavir Ahuja would be going on leave with immediate effect.

The Board of Directors of the Bank at its meeting held today i.e December 25, 2021 accepted the request of Mr Vishwavir Ahuja to proceed on leave with immediate effect, the bank said in a filing.

The Board appointed Rajeev Ahuja (currently the Executive Director) as interim Managing Director & Chief Executive Officer of the Bank with immediate effect, subject to the regulatory and other approvals.

Vishwavir Ahuja joined RBL Bank in 2010. Prior to that, he was the MD and CEO of Bank of America, India from 2001 to 2009.

Earlier in the day, the bank had also informed that the Reserve Bank of India (RBI) has appointed its chief general manager Yogesh K Dayal as an additional director on its board.

Dayal's appointment is for a period of two years, starting from December 24, till December 23, 2023 or till further orders, whichever is earlier.

Source : EconomicTimes

ATM cash withdrawal rules to change from 1 January 2022: Free withdrawal limit, new charges here

Bank customers will have to pay more than what they were paying earlier for cash withdrawal from ATMs. The hiked charges will be applicable once the free monthly limit gets exhausted. Customers have been receiving notifications of hiked charges from their respective banks. “With effect from 1st January 2022, ATM transaction charge rate beyond free limit of Rs. 20 + taxes would be revised to Rs. 21 + taxes, wherever applicable," reads a notice on the HDFC Bank website.

“Effective 1st January 2022, financial transaction fee above the free limit in Axis Bank or other bank ATMs will be INR 21 + GST," noted Axis Bank.

1) According to the RBI notification, customers will have to pay ₹1 more than what they were paying earlier to withdraw money

2) Starting 1 January 2022, customers will have to pay ₹21 per transaction, instead of ₹20 if they exceed the monthly limit of free transactions. "To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase shall be effective from January 1, 2022," the RBI had said in a circular.

3) However, all bank customers with debit cards will be eligible for five free transactions (cash or non-cash transactions) at their own banks’ ATMs per month. 

4) Additionally, they will be eligible for three free transactions from other banks in metro cities and five free transactions in non-metro cities.

5) The Reserve Bank of India (RBI) has permitted banks to boost charges on cash and non-cash ATMs beyond the free monthly limitations.

Source : LiveMint

Technology is causing disruptions in banking, says K V Kamath

Veteran banker K V Kamath on Wednesday exhorted the banking industry to pitch for a level-playing field with technology-driven new age players, saying that the rise of technology has led to disruption in the financial services sector.

He said that bankers should make a case with the regulator for a level-playing field and the requirement of regulatory reporting should be extended to new age players.

"We now have a digital mindset at all levels, there is the rise of technology and the bank customers are now receptive to change. New players who are coming up and grabbing and leveraging the opportunity in the banking and financial space.

"As long as you are ring-fenced and protected by the regulator, you have the space to breathe ... now you need to see that you have the level playing field with these new players. It appears from a banker's point of view that the playing field is not level.

"I think it is up to us bankers to make the case with the regulator what is required there to make the level playing field," Kamath said while delivering the inaugural address at the 'FICCI-FIBAC 2021' virtual event on Tuesday.

Kamath, who has been appointed as chairman of National Bank for Financing Infrastructure and Development (NaBFID), noted that the disruption caused by these new players in the financial space was bound to happen.

"I hope it happens with level playing field. Similarly, the regulatory reporting that banks need to have (to RBI) ... I think these needs to be stretched to these players (as well). I think as we move ahead, in the next 6-12-18 months, we need to sort these out as players," he added.

Kamath recognised the great transition done by the banks over the last two years during the pandemic, however, the only issue is about how to compete.

"We have seen Indian platforms making enormous advances as banks. The only issue is about being able to compete, but you cannot take away from them the value they have brought in.

"I would say that disruptions are on us and it is for us to see how quickly we can change. Change is not always at the cost of money, it may cost much more than money if you don't take decision," Kamath said.

Talking about the digital economy, India has a lot of catching up to do, he said.

"The digital economy in China is around 40 per cent of the overall economy, in India it is more likely 4-5 per cent today. Where it will go two years from now, I think it will hit 5-40 per cent," he added.

On the operations of National Bank for Financing Infrastructure and Development (NaBFID), he said the lending institution will start disbursal of capital from April 2022.

"We have an idea of what could be their (businesses) needs...these are being internalized and I can mention that by April, we should be up for business. By then we should have the capital in," Kamath added.

Source : BUSINESS STANDARD

SBI, Union Bank to go ahead with Swiss Challenge auction for KSK Mahanadi Power loans

State Bank of India and Union Bank of India have decided togo ahead with the Swiss Challenge auction for the KSK Mahanadi Power loans next week despite observations by income tax officials last week that this method is opaque, implying an unholy nexus between the promoters and the asset reconstruction company, said people aware of the matter.

In the Swiss auction process, lenders first hold an auction of the NPA, and the offer made by the highest bidder (also known as anchor bidder) is set at a reserve price. Subsequently, they hold yet another auction, inviting bids at higher than reserve price, but the anchor bidder will get an opportunity to match the best bid.

SBI and Union Bank have invited bids for Rs 4101 crore and Rs 1773 crore respectively from ARCs, which is the largest auction of a single loan till date.

Four ARCs – Omkara ARC, CFM ARC, Rare ARC and Invent ARC - were raided on December 8 by income tax department which claimed that the Swiss challenge method for selling loans is opaque in nature and that defaulting borrowers can regain control of their companies by funding the ARC using the hawala route, ET reported.

Several commercial banks that spoke with ET disagreed with the allegations raised by the income tax department but declined to be named on apprehensions of being questioned by investigative agencies. Officials from the ARC industry too declined to comment on record.

“At present, the quickest way to recover dues is selling NPA to ARCs since it is a transparent and time bound process. In fact, all other mechanisms have failed,” said a senior official from a large commercial bank. Lenders also say that sale of NPAs to the ARCs is undertaken only after they have exhausted all other recovery options.

“At present, the two feasible options to resolve distressed debt are one-time settlement (OTS) and sale to ARC. IBC is no longer an attractive option since National Company Law Tribunal takes at least a year to get a company admitted to bankruptcy proceedings and another two years to conclude resolutions,” observed another lender.

An OTS would involve a haircut and giving existing management a second chance to revive the company. Recovery through Debt Recovery Tribunal and Securities and Reconstruction of Financial Assets and Enforcement of Securities Interest Act is also uncertain and not time bound. In fact, the posts of chairmen of all five Debt Appellate Recovery Tribunal and 15 NCLT judges are vacant, severely affecting recoveries for lenders.

The key allegation made by the income tax department is centred on whether a fair process is followed by ARCs to acquire the stressed loans and if the ARCs are evading taxes, said a senior official from a consulting firm.

Often there is difference between lenders and ARC on pricing of the loan, but banks no longer sell loans bilaterally, a senior official from an ARC said. The Reserve Bank of India has directed banks to use the Swiss challenge method for sale of distressed loans. Even the assets that lenders propose to sell to the National Asset Reconstruction Company of India will be through the Swiss auction.

However, the income tax raids on the four ARCs raised concerns about banks selling loans at a throwaway price benefitting the defaulter to regain control over the assets. However, lenders argue that the reserve price of loans for sale is based on the valuation of loans by external agencies, which eliminates the scope for subjectivity while officials from ARC say that the IBC regulation prevents them from selling the assets back to the promoter.

Source : Economic Times

Last-leg capital infusion into banks may take shape in Q4

The government proposes to recapitalize public sector banks (PSBs) which have emerged from the Reserve Bank of India’s (RBI’s) prompt corrective action (PCA) framework and may need additional funds to strengthen their books, two officials said.

The finance ministry will finalize the last round of capital infusion for PSBs early next year and will look into the requirements of each bank, especially weak ones that are still under PCA or have recently been out, they added.

PSBs have been asked to provide their capital requirement needs after finalizing the accounts for the third quarter of FY22. Based on the requirements, the finance ministry will decide the quantum of capital for each bank.

The budget for FY22 had allocated ₹20,000 crore for bank recapitalization, but a large part of it is yet to be disbursed. It is expected to be released in Q4. Allocations for bank recapitalization may not be a priority in the budget for FY23 and lenders may be encouraged to tap the markets as the government is of the opinion that the financial health of PSBs is showing signs of improvement and they are capable of raising funds from the market, the officials said.

Queries to the finance ministry remained unanswered till press time.

The banks’ capital requirements will be reviewed in the next quarter, before infusing money to meet the regulatory needs. Special attention will be given to requests from weak banks that came out of PCA to ensure they can further strengthen their financials and begin to expand lending services, they added.

In September, RBI had removed UCO Bank and Indian Overseas Bank from the PCA framework following improvement in various parameters and a written commitment that the state-owned lenders will comply with the minimum capital norms. Now, only Central Bank of India remains under the PCA, which is triggered when lenders breach certain regulatory requirements such as return on assets, minimum capital and the quantum of non-performing assets.

Capital needs of the banks may be prioritized when the next round of capital infusion is announced. Recapitalization is expected to help the lenders progress faster on strengthening their financials.

Source : Livemint

Physical, digital financial services to co-exist in India: SBI chairman

SBI Chairman Dinesh Kumar Khara on Wednesday said physical and digital modes of financial services delivery models will co-exist in India due to a wide geographical space.

"In India, we serve a variety of customers. We also serve those who are digital savvy and who would not like to have anything physical but on phone clicks. There are also customers who have financial and digital literacy as a major concern.

"So I think its not either/or situation perhaps for a country like India, the digital and physical, both will co- exist, its going to be phygital," Khara said while speaking at the FIBAC 2021, jointly organised virtually by FICCI and IBA.

On the emergence of the co-lending model in India, he said it is an essential mechanism which was initially meant for establishing connections with the last mile.

"Very often it is talked about that SBI has 65 per cent of its branches in semi-urban and rural areas, so do we still need a co-lending partner.

"I think we still need the co-lending partner for the reason the last mile connect which is there in these partners is that they are operating in a particular geography. It is more like a niche area where they have the adequate information about the borrowers," Khara said while speaking during session 'CEO Panel - Resilience & Rebound - Preparing for the journey towards a USD 5 tn economy'.

Khara said SBI has entered into two such partnerships and it is working with some other players as well on the co-lending model.

He said NBFCs and MFIs have reach on the ground and have much more informal information available with them, which is very integral for taking decisions.

"We have already entered into two partnerships. We are engaging with a few more (players) and we have seen that it serves the purpose on the ground," Khara said.

Axis Bank MD&CEO, Amitabh Chaudhry said there has already been disruption in the payments space with 95 per cent of the transactions on UPI originating on third party payment platforms and not on the banks.

He said the next disruption will take place in the lending space. "The next phase of revolution will take the concept of lending with the introduction of lending service providers (LSPs) who can leverage APIs to connect to the potential borrowers to all possible lenders on open credit network," Chaudhry said.

A K Goel, Chairman, IBA and MD & CEO, UCO Bank said with digital delivery of banking services, traffic has been reduced from the branches.

"But the major issue is that as on date, 30 per cent of the people are using feature phones," Goel said.

He said digital lending can be improved either by a co-lending model or with partnership with the fintechs, it will further ease the traffic at bank branches.

Source : Business Standard

Bankers are Superman - Stop Privatisation of Public sector Banks

Stop Privatisation  of Public sector Banks.        

                 

बैंक में एक पासबुक प्रिंट न होने पर भड़कने वाले लोगों की जानकारी के लिए बताना चाहता हूँ कि असल में बैंक वालों को कितने तरीके के काम करने होते हैं ये नीचे लिखा है...इसे पढ़ें और बैंक वालों को निकम्मा कहने से पहले एक बार सोचें...!

Works at Bank :- 

1. Lok Adalats

2. ATM management

3. Clearing

4. Pension disbursement

5. Death claims 

6. Complaints

7. Filing recovery suits

8. Filing EPs

9. RTI applications

10. Fresh NPA investigation

11. QMC investigation

12. CERSAI registration

13. SARFAESI action

14. Taking Possession

15. Fraud reports

16. Seizure of moveable

17. Auctioning of seized items

18. Auctioning of jewels 

19. Agriculture loans 

20. OTS settlements

21. SB account activations

22. Current accounts

23. LIC policies charge creation

24. OD facilities

25. PPF accounts

26. E-KYC

27. NRI customers 

28. Product marketing

29. Jewel loans

30. Mobile banking 

31. Net-banking 

32. Corporate Banking 

33. Housing loans

34. Vehicle loans

35. Educational loans

36. Compliance to RO/HO 

37. Advocates review

38. Valuers review

39. Seizure agents review

40. Jewel appraisers review

41. Bank Adalats

42. TDS/tax management

43. Cash management

44. Empaneling advocates

45. Empaneling valuers

46. Empaneling seizure agents

47. Empaneling jewel appraisers

48. Pnpa followup

49. Quarter end reports

50. Year end reports

51 cif De duplication

52 Self Audit

53 Jandhan yojna

54 Mudra Loan

55  General Insurance

56 aadhaar seeding

57 pmay

58 stand up India

59 pmjby

60 pmsby

61. Net banking failure.

62. ATM failed txn.

63. Maintaining records of ECS return.

64. Soil notes n pre 2005 notes return

65. Repairing of passbook printing kiosk

67. Atm  machine problems

68. Managing leave and deputation

69. Responsibility rectify Failure link.

70. Attending call from zo fgm office ho and Customers

71. Reply on unnecessary queries like Where does my ECS amount go, why atm hotlisting charged debited..🙄

72 RTGS Neft failure

73. Edu loan subsidy

74 stock audit

75 Locker SERVICE

76 unit visit

77 asset verification

78. stock statement

79. Filling up deposit and withdrawal slips of illiterate customers

80 banker account balancing

81. Phone service/ mail service to customers

82. Compliance report

83 cash remittances

84 pre sanctions visit

85 post sanctions visit

86 gold bond, apy

87. Upi mobile banking general card

88. cctv not working 

89. Electricity bill rent water bill

90. Replying Explanatory Letter 

91. Following up of complaint lodged by making calls in regular intervals

92. Maintaining cheque return register....

93. Concurrent audit ho inspection

94. Signature scanning

95. Loging complaint for not allowing to modify like DOB. N chk ready made reply "please contact concerned section..".

96. Giving clarification to fellow colleagues that what we want to to say

97. LPG subsidiary related queries

98. Remembering passwords of all Systems software 

99. Answering questions like Why bank cant issue pan card?

100. Removing pins stuck in the keyboard 😀😀

101 Promoting Digital Banking 

102 RBI audit

103 Statutory audit

104 Risk focused internal audit

105 Income tax audit

106 Banking ombudsman Complaints

107 Loading cash to ATM (not outsourced)

108 Govt sponsored schemes 

109 Attending meeting and video conference

110 Loan Melas on holidays

111 Attending CBS problem

112 political pressure on sanction of loans

etc etc. 

Along with this  , branch employee has to  read and reply the emails from head office, Regional Office, customers and so on.....

*Bankers are Superman*

PSU bank strike: Banking services at state-own lenders affected

Operations at state-owned banks were severely hindered on the first day of the two-day all-India strike against the planned privatisation of two state-owned banks.

While payments were seamless because of the technology adoption, transactions that needed physical execution were affected.

Even some private sector banks were forced to shut down shutters in several parts of the country, especially in cities where union movement is stronger.

Bank employees across the country also took to the streets to oppose the government's move. Bankers were also seen demonstrating protests at Azad Maidan of the country's financial capital.

Finance minister Nirmala Sitharaman announced in the Union Budget that two public sector banks would be privatised this financial year without giving specific names. LIC-owned IDBI Bank is also expected to be disinvested this fiscal.

The two-day nationwide strike starting December 16 was called by the United Forum of Bank Unions, an umbrella body of nine unions. Several public sector banks, including State Bank of India and Canara Bank had urged them to withdraw the strike.

The bank employees are also demanding withdrawal of the Banking Regulation (Amendments) Bill, 2021 which will enable the government to reduce their equity capital in the public sector banks below 51%. The Bill is listed for consideration in the ongoing Parliamentary Session.

Their counterparts at old-generation private sector banks and regional rural banks are also on strike. Employee unions from Life Insurance Corporation (LIC) and Reserve Bank of India have extended their support to the protests.

Source :  Economic Times

Banking, ATM services hit as PSB employees go on 2-day strike. Details here

Banking and ATM services have been hit by the two-day nationwide strike call given by the United Forum of Bank Unions (UFBU), an umbrella body of nine bank unions with over 10 lakh bank employees and officers.

The employees of several public sector banks, including State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda, are on a two-day strike -- December 16 and 17 -- to protest the proposed privatisation of the state-run lenders.

Earlier, PSBs had informed their customers that services might be hampered during the bank strike.

The unions operating under the aegis of UFBU are All India Bank Employees Association (AIBEA), All India Bank Officers' Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers' Association (AIBOA), Bank Employees Federation of India (BEFI), Indian National Bank Employees Federation (INBEF), Indian National Bank Officers Congress (INBOC), National Organisation of Bank Workers (NOBW) and National Organisation of Bank Officers (NOBO).

Earlier, SBI, and three more banks, Punjab National Bank, Central Bank of India, and RBL Bank, had said their operations will be affected due to the bank strikes on December 16 and December 17.

"While Bank has made all arrangements to ensure normal functioning in its branches and offices, it is likely that work in our Bank may be impacted by the strike," PNB had said.

SBI also said its normal functioning is likely to be impacted by the two-day strike. SBI also said it had made necessary arrangements to ensure normal functioning at its branches during the strike.

RBL Bank had said its employees associated with the protesting unions may participate in the strike, which is at the industry level and is nowhere related to bank-level issues.

Source :  Livemint

Yes Bank case: SC seeks CBI, ED response on Dheeraj Wadhawan bail plea on medical ground

The Supreme Court Wednesday directed the CBI and the Enforcement Directorate apprise it of their stand on plea of Dheeraj Wadhawan, a promoter of Dewan Housing Finance Limited (DHFL) and an accused in the Yes Bank fraud case, seeking interim bail on medical grounds. A bench comprising Chief Justice N V Ramana and Justices A S Bopanna and Hima Kohli asked the agencies as to why they want to keep the accused in jail and for what purpose when the charge sheet has been filed.

"We want to know as to for what purposes you want to keep him in jail. Do you want further investigation or what? Let him remain in jail or hospital. Tell us what you want to get out of him now...You are not denying that he has been in jail for 20 odd months," said the bench during the hearing.

"Additional Solicitor General is directed to obtain instructions on the prayer of the petitioner for bail on medical grounds, in the meantime," the bench ordered and listed the plea for further hearing on January 4.

During the hearing, additional solicitor general S V Raju, appearing for CBI and ED, said the accused has been in one of the best hospitals in the country and has been getting the best available treatment at the Kokilaben Ambani Hospital.

"This is one of the greatest scams where the huge amount of money of the bank has been siphoned off and around Rs 600 crore has been paid as kickback and the money of middle class and poor people has been taken away," the law officer said and sought time for responding to the bail plea.

"Can you afford to argue this for opposing the bail plea on medical grounds," the bench asked.

The law officer said he was responding to the query as to why the agencies want the accused to remain in jail and so far as the medical grounds are concerned, firstly the health conditions are exaggerated and secondly, the best available treatment at one of the best hospitals.

He also referred to the past violations of the bail conditions by the accused.

Senior advocate A M Singhvi, appearing for the accused, referred to the medical conditions of Dheeraj Wadhawan and sought interim bail on this ground alone.

The accused was not precluded from filing bail applications on medical grounds just because another plea of default bail is pending, Singhvi argued , adding that the accused has had the "history of heart and lung problems".

The law officer referred to the gravity of the offence as one of the reasons for keeping the accused in jail.

Earlier on November 4, the Bombay High Court had rejected the bail applications of Kapil and Dheeraj Wadhawan, promoters of Dewan Housing Finance Limited (DHFL), in the Yes Bank fraud case, holding that procedures were followed when a charge sheet was filed.

The high court had rejected the arguments made by the Wadhawan that the CBI failed to follow procedure while filing a charge sheet in the case.

The Wadhawans had sought 'default bail', claiming that the Central Bureau of Investigation, the prosecuting agency, had not complied with the Code of Criminal Procedure (CrPC) while filing a chargesheet in a special CBI court here.

A default bail is given when procedural aspects, such as filing charge sheet within the stipulated period, are not followed.

As per the FIR registered in the case by the CBI, Yes Bank invested Rs 3,700 crore in short-term debentures of DHFL between April and June 2018, for which the Wadhawans allegedly gave a kickback of Rs 600 crore to the bank's then CEO and managing director Rana Kapoor.

These kickbacks were in the form of a loan to a company registered in the name of Kapoor's daughters, it said.

Source :  Economic times

CSB Bank, Clear tie up to roll out ITR e-filing facility for NRI customers

Catholic Syrian Bank (CSB) on Thursday said it has tied up with online tax filing platform Clear (formerly ClearTax) to launch an income tax e-filing facility for its NRI customers.

The bank said e-filing options will be completely free of cost and that the partnership allows its customers to file their taxes online with reduced effort and lesser time. Customers will also have the option to opt for CA assisted ITR filing for specialized return filings and expert advisory on capital gains, global income, inheritance at a discounted rate for the bank’s customers.

This facility is also available to CSB Bank’s resident customers.

The bank customer should visit the CSB website, click on the value-added services option and under NRI/ Personal Banking option, follow the instructions to file their ITR. Customers can avail a discount using coupon code, wherever applicable, the bank said.

“Our partnership with ClearTax will not only enable basic free of cost self e-filing of income tax for NRI customers as well as resident customers of the Bank but also offer CA assisted options for specialized return filings and advisory at a discounted rate. While the free of cost self-filing option will add to the convenience of the customers by simplifying the process, the assisted option will address the complexities and queries that the customers may have related to the filing of their income tax. Besides, by providing such services under one roof, it would further enrich and enhance customer convenience and their overall experience with the Bank," C.VR. Rajendran, MD & CEO, CSB Bank.

The bank added in its statement that it will provide free tax tools, chatbot and call centre support to its customers for any queries related to self e-filing of income tax.

Source :  Livemint

Bank strike: 60,000 employees go on 2-day strike in Maharashtra. 4 points

Maharashtra will see a major hit in banking services on Thursday and Friday as close to 60,000 bank employees from various Public Sector Banks (PSBs) have started a two-day nationwide strike. The bank strike is against the government's decision to privatize two more state-run banks. Approximately 5,000 bank employees will demonstrate at Azad Maidan in Mumbai on Thursday.

Here's all you need to know about bank strikes:

Why bank employees are going on strike?

The bank employees are protesting against the government's decision to privatise two public sector lenders. In the Union Budget 2021, Finance Minister Nirmala Sitharaman had announced to raise ₹1.75 lakh crore through disinvestment. Modi government will raise this amount through privatization of several government firms as well as some banks. Bank employees' unions are opposing the government's proposed move to privatize two public sector banks.

Which banks are on strike?

The two-day strike has been called by the United Forum of Bank Unions (UFBU), the umbrella body of nine unions, including All India Bank Officers' Confederation (AIBOC), All India Bank Employees Association (AIBEA), and National Organisation of Bank Workers (NOBW). Unions claimed that about nine lakh employees of state-run banks are observing strikes across the country.

Apart from public sector banks, some employees from old-generation private sector banks and regional rural banks are also on strike. Employee unions from Life Insurance Corporation (LIC) and Reserve Bank of India (RBI) employees are also extending support to the strike.

Bank unions have decided to go on strike despite various public sector banks, including State Bank of India, Canara Bank, UCO Bank, Central Bank of India, urging them to withdraw the proposed strike.

Impact of bank strike on services

Services like cash withdrawals to deposits, business transactions, loan process, cheque clearing, account opening, and business transactions will be affected on Thursday and Friday due to a bank strike.

How many banks Modi government has privatized?

The government has already privatised IDBI Bank by selling its majority stake in the lender to LIC in 2019. Last year, the Centre consolidated 10 public sector banks into four and as a result, the total number of PSBs came down to 12 from 27 in March 2017. The government has merged 14 public sector banks in the last four years. The Centre merged: (1) PNB + Oriental Bank of Commerce + United Bank, (2) Canara Bank + Syndicate Bank, (3) Union Bank + Andhra Bank + Corporation Bank, and (4) Indian Bank + Allahabad Bank.

Source :  Livemint

RBI proposes new norms for capital requirement for banks

The Reserve Bank of India (RBI) has proposed to replace existing approaches for measuring minimum operational risk capital requirements of banks with a new Basel-III standardised approach.

'Operational risk' refers to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.

The central bank on Wednesday issued the 'Draft Master Direction on Minimum Capital Requirements for Operational Risk' as part of the convergence of its regulations for banks with Basel-III standards.

The RBI has sought comments on the draft by 31 January next year.

All existing approaches including, the Basic Indicator Approach (BIA), The Standardised Approach (TSA)/ Alternative Standardised Approach (ASA) and Advanced Measurement Approach (AMA) for measuring minimum operational risk capital requirements, are proposed to be replaced by the new standardised approach (Basel-III Standardised Approach).

The RBI aims to put the modified norms in place from April 1, 2023.

Meanwhile, in a circular, the central bank said any payment bank or small finance bank that intends to undertake the government agency business may be appointed as an agent of the RBI upon execution of an agreement with it.

The decision, the central bank said, has been taken in consultation with the Finance Ministry.

Source :  Livemint

Federal Bank starts international banking services for individuals at GIFT city

Private sector lender Federal Bank on Thursday launched product offerings for individuals, including non-resident Indians (NRIs), at Gujarat International Finance Tec-City (GIFT city).

It said that retail overseas foreign currency loans, current account, savings account and term deposit products are now available for retail customers. This is in line with the recent regulatory changes brought in by International Financial Services Centres Authority (IFSCA) in GIFT City to increase retail participation. These retail products are in addition to the bank’s existing line of trade finance, corporate loan and treasury products from GIFT City branch, it said.

The various product offerings include short term foreign currency deposits for period less than one-year, overseas loans to individuals, structured products, among others, not offered from the domestic jurisdiction. These products will help NRIs and residents to tap the avenues in line with products and services rendered by other global international financial centres like DIFC Dubai, Singapore and London, it said.

Ashutosh Khajuria, executive director, Federal Bank said, “Federal Bank, being one of the first entrants to GIFT City, has been serving corporate customers since its inception. With the recent changes, a window is opened for retail clients, offering an opportunity for our NRI clients, to look at some of the offerings like foreign currency deposits, which enables them to earn interest on short term deposits of less than one year that is not available on FCNR deposits at domestic branches, and many more such benefits."

Source :  Livemint

Care for your BANKERS

🔱 Care for your BANKERS

500s 1000s not legal tender --- call BANKERS (work on Saturday Sunday leave days) 

Chennai floods --- call BANKERS (work on Sunday)

Income tax collection --- call BANKERS (work on Sunday)

Insurance collection --- Push BANKERS 

Sell gold - call BANKERS 

Collect College fees school fees / exam fees --- call BANKERS 

Prime minister all free yojanas --- Rely on BANKERS 

Aadhar linkage --- Tell BANKERS

Gas subsidy --- Ask BANKERS 

Forex currency exchange --- Depend upon BANKERS 

ELECTION TIME - Call BANKERS on election duty

Big list not able to type more..!!!!

People don't pay loan --- blame BANKERS

Vijay Mallya absconding --- blame BANKERS 

Black money --- blame BANKERS 

Continuous 5 days holidays --- OMG, What the hell 😱😱 BANKERS r enjoy! 

Wage revision.. OMG why do bankers need me more salary ? They're already paid excess ..

Wage revision strike (salary cut) ---

 OMG, What the hell 😱 😱 BANKERS have to relax on weekly off day???

Bankers are the backbone of Indian economy and still get a bad name and r in the news for all wrong reasons .. No one bothers to recognize & support them . Nobody not the IBA nor Govt considers their salary for a worthy pay hike in comparison to 7th Pay Commission.

its fact without Banker's whole heart support implementation of demmonitisaton was not possible...still Bankers are blamed...

If you care for your BANKERS... 

Please spread the message.

Bank of India conducts last-mile outreach to disburse insurance payments

Bank of India on Sunday said it hosted a last-mile outreach campaign for the distressed account holders of 16 urban cooperative banks that went bust and helped them receive their deposit insurance cover of up to ₹5 lakh in a time-bound manner.

The event was held in the presence of Minister for Road Transport and Highways Nitin Gadkari and as per the directives of the department of financial services (DFS), ministry of finance. Bank of India is amongst 18 field locations selected for ensuring quick and smooth insurance disbursal. The principal event was webcast pan-India by Prime Minister Narendra Modi in New Delhi.

During the outreach event, Bank of India informed as well as assisted the affected depositors in filing insurance claims so that they received the payments seamlessly and without delays, it said. Following concerted efforts by all stakeholders, the campaign has gained momentum with interim payments by RBI subsidiary, Deposit Insurance and Credit Guarantee Corporation (DICGC), increasing manifold in the last 15 days.

“Specifically, over 200 depositors benefited from attending one such outreach event at Bank of India’s Sangli branch in Maharashtra. The bank assisted in remitting a deposit insurance amount of ₹37.23 crore to 4,389 account holders of Sarjerao Naik Shiarala Sahakari Bank, in the presence of Kapil Moreshwar Patil, minister of state for panchayati raj," it said.

The Deposit Insurance Credit Guarantee Corporation (Amendment) Act, 2021 came into effect on 1 September, to ensure that distressed depositors had access to deposit insurance cover, which was raised from ₹1 lakh to ₹5 lakh in February 2020.

Source : Livemint

State Bank of India raises Rs 3,974 crore capital through AT1 bonds

State Bank of India (SBI) has raised about Rs 3,974-crore capital through additional tier 1 bonds (AT1 bonds). The coupon for the AT1 bonds was fixed at 7.55 per cent, cheaper by 17-basis points over the last issuance in September 2021.

Bond dealers said the response to SBI’s offering was good. While the indicative size was Rs 4,000 crore, the issue received bids over Rs 6,000 crore. It opted for Rs 3,974 crore with a coupon of 7.55 per cent.

Source : Business Standard

Bank of Maharashtra reduces home and car loans, but expects least impact on NIM

State-owned Bank of Maharashtra slashed its home and car loan rates in an aggressive push that took its interest charges below the rates offered by the country's largest lender State Bank of India and mortgage lender Housing Development FInance Corporation.

The Pune-headquartered BoM has reduced home loan rates by 40 basis points to 6.4% from 6.8% earlier and car loan rates by 25 basis points to 6.8% from 7.05%. These fine rates will be available for customers with best credit scores from December 13, the bank said.

One basis point is one-hundredth of a percentage point. SBI offers home loans at a minimum of 6.7% a year and car loans at 7.25%. HDFC's festive rate on home loans also starts at 6.7%.

"The rate cut is to increase the demand and to increase our credit-deposit ratio," BoM managing director AS Rajeev told ET.

The present reduction may not impact net interest margin (NIM) much as increased credit will fetch more net interest income (NII). This is mainly due to switching from investments to credit, that too quality credit due to higher Cibil rating," he said, expecting a sobering impact on credit cost going forward.

BoM was among a handful of lenders which reported a rise in NII as well as NIM for the second quarter ending September over the same period last year while most of the public sector lenders witnessed a fall in these ratios following lending rate cuts ahead of the festive season.

Its NIM was at 3.27% for the second quarter as against 2.57% in the year ago period.

Rajeev said there would be no immediate change in deposit rates. He said that rates have bottomed out and may continue to be around this level during this fiscal with a maximum of 25 bps upward movement.

With the latest rate cuts, the bank is expecting home loans to grow at 25% rate, better than the 20% growth it is witnessing now.

"We are providing one of the lowest interest rates in retail loans especially for housing and car loans in the industry," executive director Hemant Tamta said.

Source : Economic Times

Ashu Suyash to join Kotak Mahindra Bank's board as an independent director

Ashu Suyash has been appointed as an independent director on the board of Kotak Mahindra Bank for a five-year term. The appointment effective from January 24, 2022 is subject to shareholders' approval.

Suyash, who was managing director and chief executive of CRISIL till recently, is setting up her own venture - an innovative platform for "daring and passionate entrepreneurs". She is an independent director on the board of Hindustan Unilever Ltd.

Prakash Apte, Non-Executive Independent Chairman, KMB said her deep and diverse experience across the financial services ecosystem will help to chart out the next phase of the Bank’s growth.

Suyash, with 33 years of experience, has led Indian and multinational businesses as CEO, set up companies, managed and grown complex regulated businesses and driven transformation and change. Suyash is a chartered accountant and holds a bachelor’s degree in commerce from University of Mumbai.

Prior to joining CRISIL, she was the CEO of L&T Investment Management Limited and L&T Capital Markets.

She started her career with Citibank India and during her 15-year tenure there she held several key positions across Citibank’s corporate and investment banking divisions and its non-banking subsidiaries.

At present, the Kotak Mahindra Bank's Board of Directors comprises chairman Prakash Apte, other independent directors Uday Chander Khanna, Farida Khambata, Uday Shankar, Ashok Gulati. C Jayaram, Non-Executive Director; Uday Kotak, Managing Director & CEO; Dipak Gupta, Joint Managing Director; KVS Manian, Whole-time Director and Gaurang Shah, Whole-time Director are other members of board.

Source: Business Standard