BANKING AWARENESS

1.    RBI introduces Dollar – Rupee Swap Facility

Objective: To increase the flow of Credit to the export Sector to support incremental Pr-Shipment Credit in Foreign Currency (PCFC) by banks.
NOTE: 
i. As per RBI, Banks will have the option to avail rupee refinance to the extent of the Swap with RBI under a special export credit refinance facility. The facility will be available to banks from Jan 21 till June 28, 2013 for a fixed tenor of three or six months.

ii. The total limit for the banking system works out to $6.5 billion.  Banks will be able to buy US dollars up to its eligible swap limit from RBI and at the same time sell the same amount of dollars forward as per the term of the Swap, at the prevailing markets rates for Swaps of similar tenor. At the end of the Swap term , the Bank will exchange the dollars against the Rupees with RBI.

III. RBI will decide upon the number of the banks that can access the facility, the maximum amount of swap that RBI would contract with Banks and the maximum limit each bank can do on a particular day after taking into account market conditions.

2.    Banks to ask RBI to permit interest on current accounts:

When central bank RBI will review its Monetary Policy, banks will ask the central bank to allow them to pay interest on current account deposits.

NOTE: i.Currently, there is no interest given by banks on Current Accounts. Banks are of the view that providing interest on current account will generate more cash flow into the system which otherwise stays with the establishments.

ii. Current Accounts make 9.85% of total deposit with banks.

iii. Banks will also demand a cut in CRR as well in Repo Rate.
 

3.    Corporation Bank Unveils RuPay Aadhar Card:

i. Corporation Bank has launched Corp RuPay Aadhar Card which has a primary aim to provide easy and smooth banking services to the financially excluded and underprivileged sections of the society having Aadhar number.

ii. Corporation Bank is an associate in the direct cash/ benefit transfer scheme launched by the Govt. which will enable direct transfer of various social security and benefits and subsidies straight into the accounts of the beneficiaries.

4.    R.K. Dubey assumed charge as CMD of Canara Bank:

i. R.K. Dubey has assumed charge as the Chairman and Managing Director of Canara Bank with effect from January 11.

ii. Dubey has vast knowledge and multidimensional banking experience, spanning over three decades. His key areas of expertise include planning and budgeting, resource mobilization, credit, risk management, HR, IT and marketing.

NOTE: He joined Punjab National Bank in 1977 as a management trainee and moved up to the ranks of a General Manager in 2008 and was appointed as Executive Director of Central Bank of India in 2010. 

5.    Allahabad Bank Signs MoU with CIMSME:

i. Allahabad Bank has inked an MoU with the Chamber of Indian Micro, Small and Medium Enterprises (CIMSME) to pop its priority sector lending.

ii. CIMSME communicates the interest of companies in MSME sector, with banks, financial institutions, concerned ministries and other organizations.

About Agreement: As per the agreement, CIMSME would mobilize proposals from its members for consideration of the bank. Once the loan is approved, the organization would support the bank in – follow up and recovery of dues and provide early warning signals.

NOTE: The agreement will help speed up the process of disposal of loan proposals under the MSME and help the bank collect quality proposals and enhance credit flow to the sector.

6.    Raj Kumar Goyal appointed as the new ED of Central Bank of India

Raj Kumar Goyal appointed as the new Executive Director of Central Bank of India. Goyal replace R.K Dubey, who has taken over the control of Canara Bank as its chairman & Managing Director.

7.    SBI unevils MobiCash Easy: 
SBI has unveiled its mobile wallet named State Bank MobiCash Easy which provides facility such as fund transfer, balance enquiry, mini statement, mobile top-ups and DTH recharge etc.

How does it work:

i. SBI is carrying out this plan with collaboration with a private service provider Oxigen which will do round the clock money transfer and other services.

ii. To avail the facility one can contact Oxigen outlets by sending SMS to 9870888888.

iii. After registration one can deposit money at the outlet and get his account recharged.

iv. The sum of money one deposit with the bank, the money can be used to send remittances to any bank account, transfer funds to other wallets issued by SBI, simply by messaging.

NOTE:  The facility is available to SBI’s customers as well as non – customers.

ii. SBI customers have an additional option of topping up the wallet using SBI’s mobile banking services.

iii. The service is currently available in Delhi & Mumbai only.

Aim: The service is aimed to migrant labourers who send money back home from SBI branches.

It will also address the requirement of financial inclusion as it is facilities to extend financial services.

8.    Urjit Patel appointed as the new Deputy Governor of RBI:

Urjit Patel succeeded Subir Gokaran to become new deputy governor at the RBI.

Patel is PHD in Economics from the Yale University and a non-resident senior fellow at the Brooking Institution, a US-based think tank. He will have the 2 year term.

9.    RBI establishes Working group to reviewBanking Ombudsman Scheme:

RBI has constituted a working group which will be headed by Suman Verma with an aim to review, update, and revise the Banking Ombudsman Scheme, 2006.

As per the Annual Report of the Banking Ombudsman Scheme , 2011-12 released by the RBI:

i. 72,889 number of customer complaints received in Banking Ombudsman office of the RBI in2011-12.

ii. Highest number of customer complaints received by Kanpur and New Delhi in 2011-12, followed by Chennai and Bhopal.

iii. Largest no. (25%)of customer complaints were about failure to meet commitments/non observation of fair practices code.

iv. 21 % related to (ATM/Debit/Card) complaints.

v. 12 % related to deposit accounts.

Types of complaints this scheme handles: It looks into a wide range of complaints pertaining to deficiency in banking services rendered by scheduled commercial banks, Scheduled Primary Urban Co-operative banks and the Regional Rural Banks.

The Key areas of customer complaints covered under the scheme include:

i. Credit card complaints

ii. internet banking

iii. deficiencies in providing the promised services by bank.

iv. levying service charges without prior notice to the customer

v. non adherence to Banking codes and Standards Board of India’s Code of Bank commitment to customers.

NOTE:There are 27 grounds on which customer can approach Banking Ombudsman mentioning deficiency in banking services.