BHUBANESWAR: The State Bank of India (SBI) and its subsidiaries have come under the glare of the banking ombudsman (Odisha) as maximum complaints were lodged against them last fiscal year. Releasing his annual report at the Reserve Bank of India here on Friday, banking ombudsman Bijay Kumar Mishra said, "We received 753 complaints against SBI and its associates, which is 50.27% of the total complaints received against all banks in 2013-14." .....
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Monday, August 11, 2014
SBI asked to pay Rs 5,000 for receiving double payment of EMIs
........."The complainant has not disclosed this fact in his complaint and has hidden the relevant fact. Impact of this transition in the payment terms and its processing time as well as return of unused cheques must have been agreed between both parties involved in the transaction and effected upon. "...However, it is apparent that in the process, Opposite Party (OP) has received EMI payment twice for the months of March and April, 2011, but the same was accounted for in statement of account given to the complainant. "Thus, OP (bank) is only deficient on account of receiving double payment of EMI for month of March and April, 2011," the forum said..........
We may not merge associate banks, says SBI
Is Someone Using Your Cheque Book?
..........There was someone, he knew, who had deposited a cheque with the same number to take money out of his account. Is it possible? What was happening? Kataria sensed that he was not a victim of new-age frauds that newspapers have been reporting about: no one had stolen his Net banking password; no hacker had fished out his credit card data. Instead, someone had simply used a cheque that was a replica of a leaf in his cheque book. Half an hour later, Kataria was told by the bank's Mumbai branch manager that the cheque was debited at the bank's branch in Nipani, a non-descript town in Karnataka and 37 kms from Kolhapur. While Kataria did not lose any money (as the amount was credited back to his account by the end of the day), he as well as his branch manager are clueless of what happened, how it happened.......
Aadhaar Down, RuPay Up in Financial Inclusion Drive
.............The finance ministry has decided to limit Aadhaar's role in its welfare scheme payments and, instead, use ATM-enables RuPay cards for last-mile authentication to withdraw money. While it will continue to use Aadhaar for opening accounts and to eliminate ghosts and duplicates from beneficiary rolls, the ministry has decided to give RuPay ATM cards with bank accounts being opened under to-be-announced financial inclusion drive, Sampoorn Vittiyea Samaveshan, government officials told ET............
The Aadhaar conundrum
...........Incidentally, the Reserve Bank of India recently made the Aadhaar card a valid document for opening bank accounts, along with voter identity card, PAN card, driving licence, passport and MNREGA job card. Now, UIDAI officials have suggested that the Latwal family return the envelopes to the Aadhaar enrolment centre for further investigation. UIDAI officials, who learnt about this case, examined their records and found out that the Aadhaar cards were issued on the basis of the address proof provided, which in this case was the ration card.......
Rangarajan calls for timely completion of mega projects
.................Dr. Rangarajan, former chairman, Economic Advisory Council to the Prime Minister, in his lecture gave details on how economic liberalisation was initiated in 1991 and challenges faced by the country in implementation of structural reforms. He called for the need to complete mega projects in a time-bound manner and efforts to find out solutions to environmental and land acquisition problems. He said good governance was the key to economic growth and called for continuity in policies in various States to achieve the desired objectives.......
Fencing India’s economy from global shocks
.........................What is more important is that the Indian central bank has credibility about its ability to control inflation. In his conference with economists after he announced the new monetary policy last week, Raghuram Rajan did well to point this out: “My sense is that for the most part we would be driven by domestic conditions rather than external conditions in determining the interest rate, which is precisely why we are fighting very hard to build inflation credibility, because I think once you get some inflation credibility it gives you................
Now, easy transfer of jewellery to bank gold deposit schemes
............These centres will take just 45 minutes to weigh, melt the gold, verify the purity and issue the certificate against 90 days taken at present. The consumer will be witness to the whole process, against the present practice of completing the process (except weighing) in a remote location at Government-owned mint houses or in Switzerland. Once the process is completed in a purity verification centre, the gold will be taken to the company’s refinery near Delhi...................
Loan Reschedule Only in 4 AP, 3 Telangana Districts
.......According to sources, RBI executive director Deepali Pant Joshi, in the latest letter to AP chief secretary IYR Krishna Rao and TS chief secretary Rajiv Sharma, made it clear that the rescheduling facility would cover only loans given by commercial, cooperative and rural banks.
The RBI’s letter also said this concession would only include short-term production loans and exclude crop loans taken against gold loans for other allied activities..........
Loan waiver: Banks in the red
........."As a result, the effect on both banks and farmers is immense. While the banks have been hit by bad loans, they are losing on revenue as they are not issuing fresh loans. For farmers, it is worse as they are not getting loans when they badly need it, while interest on their defaulted loans is increasing by each passing day," ..............
Apex bank to the rescue once again
...........“As against Rs 33,000 crore proposed in the interim budget, actual dividend from the RBI stands at Rs 46,000 crore,” the government said in its medium-term fiscal policy statement last month, a document that is issued along with the Union budget. “Over the past years, the RBI has been setting aside a portion of its profits as reserves before declaring dividend to the central government. Over the years, sufficient balances have been built up in various reserves and, as such, the RBI has decided to pass on higher dividend to the government. Accordingly, the dividend declared in 2014-15 has been revised upwards,” the document added.........
Government banks shying away from lending to lower rated firms
.........Nitsure said capital conservation pressures will substantially cut down “irrational expansion of loans” in some smaller banks, which used to grow at a rate much higher than the industry average. The companies coming to banks, in turn, will have to make themselves more creditworthy for banks to lend. “The conservation of capital is going to inculcate a lot of discipline in both banks and borrowers,” she said..................
To Clean up System, Banks Turn Screws on Middlemen
State-owned Indian Bank and Andhra Bank are cracking down on middlemen, who act as facilitators between lenders and borrowers, to clean up the system after the recent arrest of the Syndicate Bank chairman and company executives over corruption related to enhancing credit limits..............
Read - ET
Read - ET
Damage control: Syndicate Bank merger on the cards?
..........“We will look into the matter (of Syndicate Bank) in detail and decide on next steps... At this point, we cannot say anything and we cannot rule out anything including its merger,”........
Bad loans and worse
....................Of course, these cases may well be the exceptions. But their high profile and visibility do raise questions about both the integrity of the credit-appraisal processes within banks and the quality of governance and supervision. The formality of credit appraisal is well-established. All banks have some objective and transparent formulae to score loan proposals on a variety of risk parameters. Committees at different levels are supposed to minimise individual influence on specific decisions. Despite all the paraphernalia of objectivity, these and other cases suggest that ...........
Ghost in the Cash Machine
.............The majority of Indian banks have a top-down approach to loan clearance, justified on the grounds of speed and improving market share. In case a branch manager does not approve the loan, promoters go directly to zonal or regional managers. In case they are reluctant, they go to the general manager, executive director or the chairman-managing director. And every superior justifies the decision on the ground of business growth but without any transparency or accountability . No wonder Percy Mistry , who chaired a government panel on financial sector reforms, chose to call Indian public sector bankers “zombie bankers“.........
IDBI Bank's Kingfisher Airlines loan under CBI scanner
..............“There was no need for the bank to take the exposure when other banks’ loans (to the airline) were getting stressed,” the CBI official said. “Along with other lenders to Kingfisher Airlines, CBI also asked us for details about the loan account. Most of the information has already been furnished. A few documents will be handed over to agency in the next few days,” said a senior IDBI Bank executive who did not wish to be named..........
Scrutiny of bad loans set to increase
Recent moves by the Central Bureau of Investigation (CBI) against IDBI Bank Ltd and the chairman of Syndicate Bank Ltd are likely signs of the government getting tough on bad loans in the banking system—as much a reflection of the rot in Indian banking as it is of the economic slowdown and policy paralysis that delayed projects. There could be more such action by enforcement and investigative agencies in the weeks and months to come and the banks themselves could get more aggressive in dealing with the sour loans on their books...............
Saturday, August 9, 2014
Vittaldas Leeladhar to be honoured
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