BANKING – 2014 SEPTEMBER

Transcription

Banking Power-Pack – September 2014
BANKING – 2014 SEPTEMBER
September 1
RBI issued guidelines on implementation of Basel - III Capital Regulations.
* The revised and final guidelines for raising non-equity regulatory capital instruments by banks under the stringent Basel III framework
under which lenders can issue tier 2 capital with a minimum original maturity of 5 years as against 10 years now.
* It further, banks can issue tier 2 debt capital instruments to retail investors, subject to the board approval.
* Banks may now additional tier 1 capital instrument with the principal loss absorption through either conversion into common shares or
write-down mechanism (temporary or permanent) which allocates losses to the instruments.
* Comparison of Capital Requirements under Basel - II and Basel - III:
Requirements
Under Basel - II
Under Basel - III
Minimum Ratio of Total Capital To RWAs
8%
10.50%
Minimum Ratio of Common Equity to RWAs
2%
4.50% to 7.00%
Tier I capital to RWAs
4%
6.00%
Core Tier I capital to RWAs
2%
5.00%
Minimum Liquidity Coverage Ratio
None
60% by January 2015
70% by January 2016
80% by January 2017
90% by January 2018 100% by
January 2019
Timeline for full implementation of norms
31 March 2009
March 31, 2019.
RBI asks banks to set timeline to loans processing.
* To expedite credit decision, the RBI asked banks to set a timeline for disposal of loan proposals but did not ascribe a particular time frame
for the same.
* The move came after RBI noticed that there have been inordinate delays by banks to convey credit decisions, leading to delays in project
implementation and also that banks must put in place the required system within 30 days.
* But, RBI gave freedom to banks to decide each banks time by them self.
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September 2
The balance of payments recorded a surplus for a third straight quarter in April - June.
* The balance of payments registered a surplus of $11.2 billion in the first quarter up from $7.1 billion in the last quarter of the FY14.
September 3
RBI cancels Licence of The Merchant’s Co-operative Bank Ltd., Dist. Dhule, Maharashtra.
* The Reserve Bank of India has, on August 27, 2014, cancelled the licence of The Merchant’s Co-operative Bank Ltd., Dist. Dhule, Maharashtra
to carry on banking business under Section 22 of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) read with Section
56 of Banking Regulation Act, 1949.
* As such, the bank is forthwith precluded from transacting the business of 'banking' as defined in Section 5(b) of the Banking Regulation Act,
1949 (As applicable to Co-operative Societies) including acceptance/repayment of deposits.
RBI curbs banking operations of Choundeshwari Sahakari Bank.
* The RBI has issued directions to The Choundeshwari Sahakari Bank Ltd of Kolhapur, Maharashtra that will require the bank to seek prior
approval for its banking business.
* RBI said In particular, depositors of the bank will be able to withdraw a sum not exceeding Rs. 1,000/- (Rupees one thousand only) of the
total balance held in every savings bank or current account or any other deposit account by whatever name called, subject to the conditions
stipulated in the RBI Directions.
* As per the directions a copy of which is displayed on the bank's premises for perusal by interested members of the public, the bank, from
the close of business on August 30, 2014, cannot, without prior approval in writing from the RBI.
(i) Grant or renew any loans and advances,
(ii) Make any investment, incur any liability including borrowal of funds and acceptance of fresh deposits,
(iii) Disburse or agree to disburse any payment whether in discharge of its liabilities and obligations or otherwise,
(iv) Enter into any compromise or arrangement and sell, transfer or otherwise dispose of any of its properties or assets except as notified in
the RBI Directions dated August 28, 2014.
September 5
Axis Bank got featured in Forbes Asia's FAB 50 list.
* Axis Bank which is India's third largest private bank has been featured in Forbes Asia's FAB 50 list of 2014. This is the fourth time that Axis
Bank has been featured and is amongst the only two banks in this renowned list.
* The FAB 50 comprises of the best of Asia-Pacific's biggest publicly traded companies, chosen from a pool of 1,300 companies in the region
that have at least USD 3 billion in market cap or annual revenue.
* In January this year, Axis Bank became India's first private sector bank to open a branch in China.
September 6
SBI launched its first ''multi-currency international debit card''.
* The bank in association with the master card has launched this debit card that will allow the customers to make the payments of various
currencies through a single card.
* The deputy managing director of the bank stated that through this card the customer can make the payments in four currencies US dollar,
euro, Great Britain pound and Singapore dollar. Later on more currencies will be added to the card. The card also offers the facility of
loading currencies of choice at SBI’s branch network.
* The card will issued to customers levying Rs. 100 as the annual fee of the card.
* The maximum loaded in the card would be $200.
* This is a very beneficial card for the corporate, professional and the students travelling abroad for their studies. Currently the customer
can avail this card from 100 branches of SBI in the four major cities.
The cooperative banks will now provide CBS.
* The cooperative banks will now also provide the ''Core banking Services'' like such as any branch banking, NEFT, RTGS etc.
* 201 state and district level Central Cooperative Banks with 6914 branches have joined this plan of NABARD.
* With the aim of making banking transactions faster and baking more efficient the NABARD has decided to bring all the cooperative banks on
the CBS platform.
* With CBS, the cooperative banks are now in a position to offer the latest banking products to their customers.
* Through this the banks will be able deliver more efficient banking services allowing them to focus on serving customers better this will also
help the banks to save money and work in an effective manner.
September 7
RBI has established a supervisory college for the Axis bank in Mumbai.
* In order to maintain and improve the understanding of the risk profile of the banking group the RBI has set up this college.
* It will also look towards the enhancement of the mutual trust and co-operation among the supervisors.
* Through these supervisory colleges the RBI being the Apex bank of the country wants the Indian banks to work in enhanced way in the
foreign countries.
* These colleges are especially set up for the banks that have well established presence and working in the abroad. The RBI has already
established such banks for SBI, ICICI bank.
* It is the responsibility of RBI to monitor that exchange of supervisory information and perceptions becomes easy. These colleges are
supposed to facilitate effective supervision of internationally active banks.
September 8
India is the third most affected country in terms of Online banking frauds.
* India ranks third after Japan and US.
* Due to the rapidly increasing use of internet banking the crimes involving online banking frauds are rising heavily.
* According to the data of April to June 2014, it has been noticed that online malware has affected India severely. Within a period of month
India posed for cybercriminal expansion with an average of 2.5 million malware detection.
* The fraudsters find a new ways and techniques to continue their attacks. On the other hand it is also noticed that near about 33%of
malicious apps were downloaded.
* More than 10 millions of attacks have been observed as per the record of July. The lending institutions as well as the customers need to be
strictly alert in order to protect themselves from these frauds.
SBI has rolled out two new savings product for the minors 'Pehla Kadam' and 'Pehli Udaan'.
* Pehla Kadam is a saving account that children can open jointly with their parents.
* Pehli Udaan can be singly operated by the minors up to the age of 10 years. These products will offer several facilities to the holder.
* Both the products offer gamut of facilities including internet banking with limited transaction facilities such as bill payment, opening of fixed
deposits, recurring deposits.
About banking services to miners above 10 years
* In May 2014, RBI said the children above 10 yrs can independently open and operate the account. In order to boost the financial inclusion RBI
ordered banks to allow minors to open their account independently.
* All minors can now open a savings/fixed/recurring bank deposit account through either his/her natural guardian or legally appointed
guardian.
* Before this, banks allowed minors to operate bank accounts only along with a parent or a guardian. All children and teenagers below the age
of 18 are considered minors under current rules.
* RBI has also asked the bank to provide more banking facilities like ATM card, internet banking to the minors but should not allow these
accounts to be overdrawn and these accounts should always remain in credit.
* Banks may keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to
operate the deposit accounts independently.
* But banks will not charge any penalty on the non operative accounts.
September 9
The Reserve Bank of India will adopt a common recruitment system from next year to tap talent for its core functions. The larger
objective is to strengthen itself in the changing economic scenario.
* ''Starting from 2015, there shall be common recruitment for all core functions of the bank'', the RBI said in an internal report on HR
initiatives.
* At present, it recruits officers and support staff for core and non-core functions through different examinations, such as the Grade B
officers level exam. The RBI now has about 17,000 employees.
* The proposed common recruitment will not only cover traditional areas such as economics and statistics but also include niche skills,
such as risk management, financial markets trading, accounting, legal, human resources management and counselling.
* The officers that are recruited will have a common seniority. In effect, it will be like the common cadre under the All India Services of the
Union Public Service Commission.
RBI sets 70 years as upper age limit for MD, CEO of private banks.
* Within the overall limit of 70 years, individual bank’s boards are free to prescribe a lower retirement age for WTDs, including MD & CEO, as
an internal policy, RBI said in a circular (which was previously 21 years).
Background:
* As per the Companies Act, 2013 prescribes that "no company shall appoint or continue the employment of any person as Managing Director,
Whole Time Director or Manager who is below the age of 21 years or has attained the age of 70 years''.
IDBI Bank initiated its first e-lounge in Mumbai.
* This e-lounge will enhance the services offered to the customers. With more ease now the customers can make the banking transactions.
Services offered in E-lounge:
* The e-lounge will offer the facility of ATM, automated pass book printing, Transact terminal for various Card and Net Banking holders to view
balance, make a funds transfer, pay bills and recharge and much more.
* In addition to this the bank reported that the lounge will also offer the facility of LED screens allowing the customers to get the details of the
Interest rates, products rates from the screen.
Some India’s bank branches may face closure in UK.
* Recently it has been reported that various branches of Indian bank may face closure in U.K. Because of the global crises in England the Bank
of England's Prudential Regulatory Authority (PRA), responsible for supervising individual banks, stated that they may ask some of the Indian
branches to shut down.
* In order to curb with this global crisis in the economy the Indian Banks branches may face closure over there. The Indian banks will either
have to shut down their branches or they have to convert them completely from branch status to UK subsidiary.
September 10
SBI approached RBI to roll out contactless card.
* SBI has approached the RBI with the proposal to roll out a PIN free debit card.
* The bank wanted to launch a card through which the customers can make the transactions without entering the PIN for small transactions
(less than Rs. 2000).
* Before making this plan functional the bank is testing such contactless card at the metro stations in Mumbai and Chennai. Through this the
bank wants to eliminate the need of entering the PIN for making small transactions of up to Rs. 2,000. The Apex bank has yet to approve this
proposal.
Current norms:
* Currently to use the card for any purpose the customer is required to punch the PIN, bank wanted that for the small transactions i.e. for the
limit up to Rs. 2,000 the entering of PIN to use the card must be abolished.
RBI established a new financial literacy gallery.
* With the aim to maximize the awareness on finance and banking, the Reserve bank of India has established a permanent gallery that will
spread awareness on financial literacy in Mumbai. The gallery is open for the common people.
* It will be informing the people regarding the fundamentals of banking like purpose of savings, tips for secure banking, benefits of fixed
deposits, recurring deposits etc. The people will be guided through the digital display and audio visual facility.
* This an innovative measure taken by the apex bank in the favor the people that will assist to enhance the financial literacy among the people.
The RBI is also offering a three month internship for aspiring post graduates of finance and economics with a monthly stipend of Rs. 12,500.
Treatment of No-frills accounts opened for credit of Scholarship.
* As directed by the Bombay High Court, RRB’s and State/ Central Cooperative Banks are hereby advised to ensure that accounts of all
student beneficiaries under the various Central/ State Government Scholarship Schemes are free from restrictions of 'minimum balance'
and 'total credit limit'.
Background:
* Bombay High Court has brought to our notice that banks fix a limit on total credits in zero balance accounts opened for students studying in
primary, secondary/ higher secondary schools and technical institutions.
* Resultantly, in cases where scholarship amounts exceed the credit limit, banks do not allow the credit and return the amount to the
disbursement account of the Government.
* Further, in some cases banks are reported to have closed zero balance accounts unilaterally without intimating student beneficiaries
concerned. Instances of banks refusing to open zero balance account for students have also been brought to our notice.
RBI has revised the guidelines on wilful defaulters making them tighter.
* As per the revised guidelines, the bankers can classify the guarantor group firms and management as wilful defaulters.
* The guarantor group companies can be reckoned as wilful defaulters, in cases where guarantees furnished by the companies within the
Group on behalf of the wilfully defaulting units are not honoured when invoked by the banks/ FIs.
* The banker will be able to proceed against the guarantor/ surety even without exhausting the remedies against the principal debtor, when a
default is made in making repayment by the principal debtor.
* Where a banker has made a claim on the guarantor on account of the default made by the principal debtor, the liability of the guarantor is
immediate. In this case said guarantor refuses to comply with the demand made by the creditor/ banker, despite having sufficient means to
make payment of the dues, such guarantor would also be treated as a wilful defaulter.
* However, the revised guidelines applies only prospectively and not to cases where guarantees were taken prior to this circular. Banks/ FIs
may ensure that this position is made known to all prospective guarantors at the time of accepting guarantees.
ICICI Bank launches ‘Card-less Cash Withdrawal’ scheme.
* ICICI Bank launched a facility under which an account holder with it can transfer money to a mobile phone user in the country even without
the latter having an account with any bank.
How to send?
* A customer having a savings account with the country's largest private lender can initiate a fund transfer using online banking by giving only
the mobile number and address of the beneficiary.
How to receive funds?
* A secure six-digit code gets sent to the mobile number of the beneficiary, who can withdraw the amount from any of the bank's ATMs, using
that number.
* The money has to be withdrawn within two days of the transfer.
* The beneficiary need not have an account with any bank can also use this scheme.
September 11
Bajaj Finance applied for dedicated ‘housing finance company’ to National-Housing-Bank.
* Bajaj Finance, the non-banking lender, a housing finance company as a wholly-owned subsidiary and will now be applying to the sector
regulator National Housing Bank (NHB) for a licence.
* The company, which is headquartered in Pune, already has a presence in the mortgage space and nearly 40 per cent of its Rs. 27,000 crore
book is mortgage products, he said, adding that there were many benefits due to which the company had decided to have a dedicated
company.
* NBH is solo authority to give permission for HFC.
September 12
SBI chief Arundhati Bhattacharya finds place in Bloomberg's '50 Most Influential' list.
* Bhattacharya, who is the only Indian woman to be present in the list, is featured in the 'bankers' category.
* The final list consists of 10 people in each of the five categories-money managers, thinkers, corporate power brokers, bankers and
policymakers.
SEBI likely to be dragged to court for alleged irregularities in Bank of Rajasthan case.
* Alleging major irregularities in the order passed by the Securities and Exchange Board of India (Sebi) in the Bank of Rajasthan (BoR) case,
some minority shareholders of the bank have decided to approach the Bombay High Court (HC) for relief.
* Alleging that senior Sebi officials, including chairman U.K. Sinha and chief vigilance officer (CVO) R.K. Padmanabhan, showed favour to BoR
promoters, shareholders Rajesh Agarwal and Vijay Garg, backed by some 200-odd minority shareholders.
September 13
State Bank of India, SBI, celebrated 150 years of its operations in Sri Lanka at a glittering ceremony Friday evening. Addressing a
gathering in Colombo, SBI Managing Director Krishna Kumar reaffirmed the bank's commitment to partner in Sri Lanka’s efforts in
developing its economy.
* Sri Lanka’s Central Bank Chief thanked SBI for believing in Sri Lanka and investing money and skill in development of the country.
September 14
HDFC bank has planned to issue the debit card PIN to the customers through SMS.
* With the aim of being eco friendly the bank wanted to save paper and instead of sending PIN of the debit cards through post it will be send
through the SMS.
* The new PIN issued over SMS is named as 'Green PIN'. The green PIN will be issued to the customer at a time and location most convenient
to them.
About Green PIN:
* Basically green PIN is a one time generated password that will be sent to the customer registered mobile number.
TATA group is preparing to establish 15,000 new ATMs in the country in coming few years.
* 67% of the ATMs will be set up in rural areas.
* The TATA group has already established 2,000 WLA’s across the 18 states in the country and has received an overwhelming response from
the customers.
About white labelled ATM�s:
* White-label ATMs are similar to other ATMs in that they can be used by any domestic debit, credit or prepaid cardholder to withdraw cash,
make a balance inquiry, change the personal identification number or ask for mini statements.
* These entities have a mandate to deploy 67% of ATMs in rural locations (tier III-VI) and 33% in urban locations (tier I and II cities).
* White-label ATM operators need a sponsor bank to operate the machines. According to RBI rules, these sponsor banks will be liable to settle
transactions and maintain cash at these ATMs. Maintenance and servicing will be the white-label ATM operator’s job.
* Charges for customers remain the same as those levied by a card-issuing bank. So, the first five transactions in a month are free at these
ATMs too. The card issuing bank will pay the interchange fee for the ‘free’ transactions, but will charge you for anything beyond that limit.
WLA’s in country include
BTI Payments Private Limited
Bangalore
Srei Infrastructure Finance Limited
Kolkata
RiddiSiddhi Bullions Limited
Mumbai
* This new three are in addition to the four entities already authorised to operate as WLAs namely.
Tata Communications Payment Solutions
Mumbai
Vakrangee Ltd
Mumbai
Prizm Payment Services Pvt. Ltd
Chennai
Muthoot Finance Limited
Kochi
* In June 2012, the RBI had issued policy guidelines permitting NBFC’s entities to set up and operate WLAs. Prior to this, only banks were
permitted to set up and operate ATMs in the country.
September 15
MCX-SX gets conditional one-year renewal; SEBI seeks business plan.
* MCX Stock Exchange on got a one-year conditional renewal to function as a bourse and regulator SEBI asked it to submit a long-term
sustainable business plan and take other remedial actions.
* Besides, the exchange would not be allowed to introduce any new contract till it meets minimum networth requirement of Rs. 100 crore, for
which it has been given three-months time.
Issue regarding Licence
* The current recognition of MCX-SX, which was set up by Jignesh Shah-led Financial Technologies Group, expired on 15-7-2014, but SEBI has
now decided to extend it for a period of one year, commencing September 15 and ending on September 15, 2015.
MCX Stock Exchange
* Started by: Thomas Mathew.
* Chairman: Thomas Mathew.
* Started: 2008.
* Headquarters: Mumbai.
September 16
India's export growth slips to 2.35 % at 26.95 billion dollars in August.
* India's export growth slipped to 2.35 percent at 26.95 billion dollars in August, pushing up trade deficit to 10.83 billion dollars.
* Gold imports jumped to 2.03 billion dollars in August compared to 738.7 million dollars in the same month last year.
* According to the Ministry of Commerce and Industry's data, overall imports grew 2.08 percent to 37.79 billion dollars.
September 17
Allahabad Bank was awarded the second prize in ''region 'C''' banks for the year 2012 - 13 under the Indira Gandhi Rajbhasha Shield
Scheme of Department of Official Language, Ministry of Home Affairs.
* According to a release issued by Allahabad Bank, its Chairman and Managing Director, Rakesh Sethi, received the shield from the President,
Pranab Mukherjee, at a function help in the Rashtrapati Bhavan on September 14.
* Allahabad Bank is celebrating the month of September as Hindi month.
* Headquarters: Kolkata.
* Chairman: Rakesh Sethi.
RBI asks banks to roll out POS machines for debit cards.
* Reserve Bank of India (RBI) said that the central bank is mulling linking the debit card issuances to the number of point of sale (POS)
machines it puts up at merchant establishments.
* In comments that came in the midst of a massive account opening campaign launched by banks, under the 'PM Jan Dhan Yojana', Khan said if
there is not a commensurate increase in the POS terminals, the usage of cash will grow.
RBI Dy. Governor white label POS terminals as future plans.
* Like in the case of automated teller machines (ATMs), where the RBI allowed private, non-bank players to install the machines called as the
White Label ATMs, the central bank is also mulling to allow 'white label POS terminals.
Federal Bank announced new savings scheme for children.
* SBI, Federal bank has rolled out a new savings schemes for the children below 18 yrs.
* The bank has introduced the savings scheme for minors named 'Young Champs'. With the aim to develop the savings habit in children banks
are introducing these new schemes.
* Both Indian as well as NRI customers below the age of 18 yrs can avail this scheme. Children can open and operate this account on their
own.
* They will be provided with the facility of debit card along with the spent limit of Rs. 2,500. The net banking, SMS alerts, fund transfers will be
from parents account.
CCI rejects complaint against IRDA.
* Fair trade watchdog CCI has rejected charges that insurance regulator Irda's rules, which grant of corporate agency license to banks to sell
insurance products, are anti-competitive.
* The issue of abuse of dominance by IRDA does not arise and no case of contravention of the provisions of the (Competition) Act is made out
against IRDA and the information is ordered to be closed forthwith.
Background:
* A complaint filed with the Commission had alleged that banks in insurance retailing sector were imposing unfair and discriminatory
conditions on financed clients to purchase insurance product from them, indulging in predatory pricing, restricting and denying market access
to independent insurance agents, among others.
* As a result, the complainant had asked the fair trade watchdog to pass directions to Insurance Regulatory and Development Authority (IRDA)
to repeal the regulation.
* Finally, CCI noted in the case that IRDA was discharging its regulatory and statutory mandate and did not fall within the purview of
Competition norms.
September 18
SBH bank has introduced a new scheme for the borrowers whose accounts have become NPAs due to payment failures.
* State bank of Hyderabad stated that borrowers who fail to repay the interest, instalment or both can now easily make their account
operative with the SBH new ‘One time Settlement Scheme’.
* The customers can avail this scheme till the month of September. To avail the scheme the borrower need to contact the respective branch.
They will also be provided with some concession under compromise settlement.
UCO bank has entered in to partnership with bank bazaar.com.
* At the headquarters of the bank general manager of the retail banking of bank signed the agreement with the managing director of the
BankBazar.com. Through this tie up the bank will enhance its online selling of its retail banking products UCO home loans and UCO car loans.
About Bank Bazaar:
* Bankbazar.com is a reputed online portal with 1.7 million visitors per month. This online marketplace can help the bank to increase its online
sale. Bank expects to see its home loan and car loan portfolio to grow by 2000 applications a month through Bank Bazaar.
September 19
The Reserve Bank of India (RBI) proposed to segregate the post of Chairman and Managing Director (CMD) of Public Sector
Undertaking (PSU) banks.
* It also proposed a separate committee for appointment of directors on the board of PSU banks.
* These proposals are a part of corporate governance reforms in PSU banks and are based on the recommendations of various committees
including the P.J. Nayak Committee recommendations.
* At present, the post of CMD in PSU banks is vested with one person only. As a result CMDs of PSU banks enjoy absolute power and often
dominate the board during their tenure.
September 21
RBI has asked bank to launch more number of Point of sales machine at the merchant establishment.
* RBI is thinking to connect the issuance of Debit cards with the establishment of POS machines.
* RBI stated that under PMJDY, banks are creating millions of new savings account in turn millions of new debit card will get issued, so it is
necessary to create equivalent number of new POS else it might lead to the increase in the use of cash.
* These days use of electronic cash is high on demand therefore the card acceptance infrastructure needs to e created. Some banks are
putting up new POS machines. However RBI has not finalized this decision but the bank is mulling over this thought.
Background:
* According to the reports currently we have 1.1 million POS machines operational in the country at present, and even within those, there are
some which do not accept other banks' debit cards.
* With the aim to increase the POS machines it is expected that similar to the white label ATMs RBI may come up with the concept of White
label POS.
A new portal- e-integration in bancassurance launched by Canara, HSBC, oriental Bank of commerce.
* Private insurance Companies Canara, HSBC, Oriental Bank of Commerce Life Insurance propelled CHOICeNET portal. This portal is the part
of banassurance.
* CHOICeNet is an innovative portal launched to reach out the customers of the Canara Bank and OBC. This portal will facilitate bank provide
end-to-end information for their customers' life insurance policies.
About portal:
* Through this portal the bank employees will provide the information for their user life insurance policies.
* This new portal launched by the company is embedded with the partner banks' intranet. Through this the insurance company will easily
check the information of insurance policy details and will also enable them to track the progress of applications. This initiative will increase
the trust of the customers on the bank.
* This portal will also help the customers, it will enable them to renew premium payment using direct debit on Canara Bank and OBC's Core
Banking System.
State Bank of Travancore launched a Demat campaign for its customers. Bank organized this exclusive drive to help the customers
for starting up the 3 in 1 online Demat account.
* With the help of the Demat facility the customers will be able to convert their physical share in the electronic form.
* One of the official reported that the campaign was carried out yesterday at poojappura Branch of the bank and will held today at the main
branch of the bank in Thiruvananthapuram city. Customers as well the other corporate can visit and avail this facility.
Bank of Maharashtra is celebrating its 80th Foundation Day.
* On the occasion of its foundation Day, yesterday bank has launched a customer’s meet. At the different places all over the country, bank
organized functions.
* Bank also donated a sum of Rs. 51,000 to Tamana a NGO that works for the mentally retarded people.
* The customers, in turn, appreciated the Bank's efforts for organizing a Customer Meet on its 80th Foundation day. The bank assured that
bank will keep on servicing its customers like this only.
September 22
EPFOs plan to provide UAN to its customers will be launched on 16th October, 2014.
* The universal account number (UAN) will assist the subscribers to track the latest details of their accounts along with the downloading
facility and collation of pensionable service.
About UAN:
* This UAN will abolish the need for the customers to apply again in case they change their job. Their account number will be universally
acceptable and portable. The EPFO is in the process of making UAN operational for its 4.17 crore contributing subscribers by October 15.
* Along with this the govt. has decided to launch unified web portal LIN (Labour Identification Number) for simplifying business regulations
and bringing in transparency. The LIN and UAN both will be launched on 16 the October, 2014.
V.G. Mathew is appointed as new CEO of South Indian Bank.
* The Reserve Bank of India (RBI) approved the appointment of V.G. Mathew as Managing Director (MD) and Chief Executive Officer (CEO) of
Kerala-based South Indian Bank Ltd.
* V.G. Mathew is appointed for a period of three years with effect from 1 October 2014. He will replace V.A. Joseph who will retire on 30
September 2014 after serving the bank for 12 years.
* His appointment was made under the Section 35B of the Banking Regulation Act 1949.
* Headquarters: Thrissur City, Kerala.
September 23
RBI releases Report of the G. Gopalakrishna Committee on ''Capacity Building in Banks and non-Banks''.
Some important recommendations are:
* Create the position of ''chief learning officer'', responsible for leadership development and collaborative learning in commercial banks.
* Conducting a common Banking Aptitude Test (BAT) at entry levels.
* Banks should endeavour to expand enrolment of select internal employees as part-time faculty to provide internal support for training
initiatives.
* To deal with talent replacement, there should be free movement of talent within the organisation for creation of a larger workforce of
trained personnel.
* Job rotation, especially in PSBs, should not be carried in a mechanical manner but through a well laid down criterion.
* All banks may adopt e-learning methods and ensure that function-specific lessons are made available to its staff.
About chief learning officer:
* Banks to focus on skill building, it recommended a 360 degree feedback mechanism, coaching and mentoring paradigm, pre- and postrecruitment training and talent retention along with creating a position of ‘Chief Learning Officer’ in all commercial banks, responsible for
leadership development and collaborative learning across the organisation.
About Job rotations:
* Job rotation in banks especially PSBs, should not be done in a mechanical manner, but through a well laid down criteria. Transfers should
focus on critical requirement like leadership across the geography and posts that require high concentration of power. In short, need-based
transfers may be undertaken.
About creation of talent:
* Talent and leadership requirements need to be planned strategically over the long term, say over five years and above.
About creating separate departments:
* Bankers will need to specialise in different business functions, while maintaining basic general competency. Corporate banking, retail
banking, treasury, risk, finance, technology, and HR will increasingly require staff with relevant aptitude. Banks need to identify five to six such
tracks, within which the staff can be groomed
* Certain job families like credit, treasury and technology are typically in deficit and need to be planned for at various levels.
September 24
ICICI launches ‘Saving Bank account’ for minors.
* Private sector bank ICICI Bank launched a savings account for minors above 10 years of age.
* The account, which will be opened in the name of the minor, will offer a personalised cheque book and a debit card with a picture of his or
her choice, the bank said in a statement.
* The 'Smart Star' account, will allows minors to operate their accounts independently. This will help to inculcate a habit of saving and
responsibility of spending wisely.
* Minors will be able to undertake various banking transactions including issuing cheques, paying bills, recharge mobile phones, open
fixed deposits and recurring deposits among others.
About banking services to miners above 10 years
* In May 2014, RBI said the children above 10 yrs can independently open and operate the account. In order to boost the financial inclusion RBI
ordered banks to allow minors to open their account independently.
* All minors can now open a savings/ fixed/ recurring bank deposit account through either his/ her natural guardian or legally appointed
guardian.
* Before this, banks allowed minors to operate bank accounts only along with a parent or a guardian. All children and teenagers below the age
of 18 are considered minors under current rules.
* RBI has also asked the bank to provide more banking facilities like ATM card, internet banking to the minors but should not allow these
accounts to be overdrawn and these accounts should always remain in credit.
* Banks may keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to
operate the deposit accounts independently.
* But banks will not charge any penalty on the non operative accounts.

BANKING – 2014 SEPTEMBER

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