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(Note :- The entries posted here are the views of authors of the Entrires and not of the DRGB Officers' Organisation, the Organisation does not necessarily subscribe to these)

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लुभावनी दरों वाले आवास ऋणों का अंत शीघ्र..?

Posted by drgorg on January 13, 2010 at 11:20 AM Comments comments (0)

लुभावनी दरों वाले आवास ऋणों का अंत शीघ्र..?

There are reposrts that, the special loan rate schemes offered by nationalised and private sector banks are facing criticism from Reserve Bank of India (RBI). Deputy Governor RBI, Usha Thorat said that the teaser rate schemes were a cause for concern.

At some levels it is a worry that loans offered at special rates by banks for a fixed period could turn into bad loans, and this may have caused the comments from the Deputy Governor . Teaser rates or soft loan rates are typically offered for a specific period, which is then replaced by a floating rate.

In a rising interest rate scenario, floating rates are estimated to rise, which could lead to a rise in bad loans.

Bigger banks such as State Bank of India and Bank of India offer home loans at 8% whereas HDFC @ 8.25%. and private sector banks such as ICICI Bank and Axis Bank also offer home loan at lower rates to attract borrowers.

The Concern of RBI is not baseless, CRISIL, the Rating agency has estimated that gross non-performing assets of banks will touch around 5% of advances by 2011, up from 2.3% in March 2008.

As per Bloomberg UTV SBI officials told  that it would be difficult to continue with the 8% home loan scheme beyond March if interest rates are hiked in the coming months. With RBI now expressing concerns over possibility of rising non-performing assets, there is a likelihood that most banks will be cautious on aggressive lending to the housing sector.

:) but by then wouldn't it be too late.? What about the customers who have been migrate to these banks for getting the lower rates..? Wouldn't they feel duped.? and what about the Banks who lost all those customers.?

What do you think.?

Your views and comments are welcome as always..

Till we meet again..

Take good care of yourself



Cheque Truncation System (CTS) in India

Posted by drgorg on January 11, 2010 at 11:14 AM Comments comments (0)

Cheque Truncation System-What is it.?

To improve the efficiency of the Cheque Clearing Cycle, Reserve Bank of India has decided to introduce Cheque Truncation System (CTS) in India. Further, Cheque Truncation is a more secure system than the current exchange of physical documents in which the cheque moves from one point to another, thus, not only creating delays but inconvenience to the customer in case the instrument is lost in transit or manipulated during the clearing cycle.

Cheque Truncation speeds up collection of cheques and therefore enhances customer service, reduces the scope for clearing related frauds, minimizes cost of collection of cheques, reduces reconciliation problems, eliminates logistics problems etc.

The Cheque Truncation System (CTS) was implemented in the National Capital Region in February 2008. Cheque Truncation System (CTS) will be rolled out at Chennai. National roll-out of CTS will be considered once this project is operationalised.

What is it..?

Truncation is the process of stopping the flow of the physical cheque issued by a drawer to the drawee branch. The physical instrument will be truncated at some point en-route to the drawee branch and an electronic image of the cheque would be sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc.

The images captured at the presenting bank level would be transmitted to the ClearingHouse and then to the drawee branches with digital signatures of the presenting bank.Thus each image would carry the digital signature, apart from the physical endorsement of the presenting bank, in a prescribed manner.

The criteria for banks participating in the Cheque truncation system are:

  1.  Membership of the clearing house in the NCR.
  2. Membership of the Indian Financial Network (INFINET) In respect of banks who are not members of the INFINET, the following alternatives are available
  1. They may become the sub-members of the direct members or
  2. Such banks may use the infrastructure of the other banks having INFINET membership without being the INFINET members themselves and there clearing settlement can be done either directly or through the member through whom they are participating.


The Technological improvments are comming in leaps and bounds in Banks, but are we ready to take on these changes and challanges..?

Just one point at this time to ponder upon..Some BIG Banks are installing Biomatric ATMs, ( works on thumb impression) and not opening the accounts of illiterate poors/ NAREGA,  :)

OK OK, I got it,- may be it is for the Millionares who dont use Cash at all,  with a view to Enhanced security to prevent frauds etc....isnt it..?

Until next time


Have a tension and stress free time


Artical Courtsey :- news Item from Banknet

होम लोन पर जारी रहेगी टैक्स छूट ??

Posted by Baghel on January 10, 2010 at 11:23 AM Comments comments (0)

होम लोन पर जारी रहेगी टैक्स छूट ??

मकान खरीदने की तैयारी कर रहे लोगों और रियल एस्टेट कंपनियों के लिए एक अच्छी खबर है। संभावना दिख रही है कि सरकार होम लोन पर मिल रही कर छूट जारी रखेगी ताकि डायरेक्ट टैक्स कोड का नया मसौदा आम आदमी की नजर में अधिक आकर्षक हो। वित्त मंत्रालय के एक अधिकारी ने कहा, 'हम डायरेक्ट टैक्स कोड के उन प्रावधानों पर विचार कर रहे हैं जिनका सीधा सरोकार आम आदमी से है।'

इस समय, होम लोन के जरिए मकान खरीदने वाले करदाताओं को उस कर्ज पर चुकाए गए ब्याज को अपनी आमदनी में से घटाने की इजाजत होती है। हालांकि इसकी सीमा सालाना डेढ़ लाख रुपए तक होती है। इसके अलावा कर्ज की मूल राशि के रीपेमेंट को भी आयकर की धारा 80सी के तहत उपलब्ध छूट के दायरे में शामिल करने की इजाजत होती है। इसकी अधिकतम सीमा एक लाख रुपए होती है।

सरकार ने कुछ महीने पहले प्रत्यक्ष कर प्रणाली में व्यापक सुधार का प्रस्ताव रखा था और उसके लिए डायरेक्ट टैक्स कोड का मसौदा जारी किया जा चुका है। इस मसौदे में धारा 80सी के तहत छूट की सीमा बढ़ाकर 3 लाख रुपए करने का सुझाव दिया गया है, लेकिन छूट के लिए उपयुक्त व्यय/बचत की सूची में होम लोन पर ब्याज भुगतान या कर्ज की मूल राशि के भुगतान को शामिल नहीं किया गया है।

होम लोन पर उपलब्ध कर लाभ खत्म करने के इस कदम पर गंभीर आपत्ति जताई गई है। अधिकारी ने बताया कि प्रत्यक्ष कर से जुड़ा निकाय यह सोच रहा है कि सरकार को कुछ और समय के लिए यह छूट जारी रखनी चाहिए।

केपीएमजी के पार्टनर विकास वासल के अनुसार , 'सरकार को यह छूट पहले मकान या कम से कम एक मकान पर यह छूट जारी रखनी चाहिए क्योंकि इस देश में मकान मालिक होना अब भी तमाम लोगों के लिए स्वप्न ही है।'

वित्त मंत्री प्रणव मुखर्जी ने पहले ही संकेत दे दिया है कि उनका मंत्रालय नए डायरेक्ट टैक्स कोड के विवादित प्रावधानों की समीक्षा करने के लिए तैयार है। उन्होंने कहा था, 'मैंने कुछ प्रस्ताव डायरेक्ट टैक्स कोड के रूप में रखे हैं, लेकिन यह भगवद्गीता नहीं है। और ऐसा नहीं है कि इसे बदला नहीं जा सकता।'

अगर 30 फीसदी के अधिकतम टैक्स स्लैब में आने वाला कोई व्यक्ति होम लोन पर अधिकतम कर छूट लेता है तो सरकार को कर के 77,000 रुपए से हाथ धोना पड़ेगा.

आप का समय शुभ हो और

अपनी अगली मुलाकात तक के लिए अलविदा  

बघेल बी. एस.


Credit growth tentative

Posted by drgorg on January 10, 2010 at 10:56 AM Comments comments (0)

Credit growth 16 per cent

“Credit growth is still tentative in the banking system. It is yet to gain momentum. Currently, it is 16 per cent. It may reach the RBI'sprojection of 18 per cent by the year-end.  As far as SBI is concerned, we will cross the 16 per cent estimate we have made for credit growthas of now" said the State Bank of India Chairman, Mr O. P. Bhatt,  "If credit growth picks up a little more, we can cross 18 percent also,” he said at a curtain raiser to announce Indian Banks' Associations' two-day Bankers' Conference (Bancon), which begins onJanuary 11.

When asked about the risk of retail loans going bad, the SBI chief underscored the fact that retail lending comprised only 10 per cent of SBI's total credit portfolio.

The average size of home loans, which comprise a major chunk of theretail portfolio, was around Rs 15 lakh. “We are catering to the retail demand mostly from the salaried and the self-employed. There is no extra risk of higher level of non-performing assets due to focus on retail loans,'' he said.

The SBI chief observed that even the RBI were to raise the Cash Reserve Ratio by 25-50 basis points, banks would still have enough liquidity. SBI has been trying to depress deposit accretion. This year, despite retiring bulk deposits aggregating over Rs 60,000 crore, the bank was still faced with liquidity overhang as every month savings bank deposits of Rs 5,000 crore were coming in.

According to Mr M. D. Mallya, Chairman and Managing Director, Bank of Baroda, the bank had substantially cut down dependence on bulk deposit as one of the sources of funds. BoB has retired over Rs 20,000-crore worth of bulk deposits in the last one year.

“We have seen 20 per cent year-on-year credit growth in the December quarter. The growth in April to December period is around 12 per cent.For the full year credit growth will be 20-21 per cent. There have been new loan sanctions aggregating to Rs 27,000 crore between April and November. Disbursals are taking place now,” said Mr Mallya.

For the banking system credit growth as of now is actually only 10-11 per cent. On the one hand credit growth has slowed down and on the other NPA growth has accelerated, said Mr Bhatt and added that there will be a lag effect. NPA formation will continue at a faster pace for one or two quarters more.

Friends, these are the statements from two of the biggest Banks in India, who have a huge capital base and can afford ro write off a huge portion of their NPAs, think about the effect on our economy and what about the smaller Banks and RRBs, will they be able to absorb the shock of increasing NPA and low credit growth.?

Your views are invited,

Have a nice time

Until next time..



Mobile Banking- RBI Increased Limit.

Posted by Satyajit on December 25, 2009 at 9:30 AM Comments comments (0)

Mobile Banking Transactions in India

The RBI vide its circular "RBI/2009-10/273DPSS.CO.No.1357/02.23.02/ 2009-10 dated December 24, 2009 has now permitted the Banks to offer this service to their customers subject to a  daily cap  of Rs 50,000/- per customer for both funds transfer and transactions involving purchase of goods and /or services. At present, such transactions are subject to separate caps  of Rs 5000/- and Rs 10000/ -respectively.

Banks are now permitted to provide fund transfer services which facilitate transfer of funds from the accounts of their customers for delivery in cash to the recipients. The disbursal of funds to recipients of such services can be facilitated at ATMs or through any agent(s)  appointed by the bank as business correspondents

Banks are to carry out proper due diligence of the persons before appointing them

as authorized agents for such services, and the Banks shall be responsible as principals for all the acts of omission or commission of their agents.


Now where do we stand..? Ponder over it with regards to The RRBs, specially DRGB, where we have to seek permission every time for every tit and bit from DENA BANK.

A word of caution- just yesterday there was a news on NDTV India about a fraud using the stolen sim / duplicate sim of a lady customer in Pune, the amount were withdrawn using the Duplicate sim and transferred to some other Accounts.

Please be very sure to use all the precautions while using the technology, like clearing your Mobile Cache every time, changing the password frequently, using alpha-numeric passwords of atleast 6 characters and in any event of such kind, e.g. losing your mobile, be promt to inform the Bank immediately and get your facility suspended.

Please give your views and comments.

Wishing you all a very wonderful year End and Even a Better New Year

Until next time



Caution Opportunities and News

Posted by drgorg on December 11, 2009 at 1:04 PM Comments comments (0)

Alert for RRBs -Transaction with IRAN & PAKISTAN

The Reserve Bank has directed regional rural banks to keep a watch ontransactions of customers with countries like Pakistan and Iran since concerns have been raised about the rules there in combating terror funding.

"Regional Rural Banks are accordingly advised to take into account, risks arising from the deficiencies in anti-money laundering (AML),combating of financing of terrorism (CFT) regime of Iran, Uzbekistan, Pakistan,Turkmenistan and Sao Tome and Principe," RBI said in a notification toRRBs.

The notification follows concerns raised by the Financial Action Task Force (FATF), an inter-governmental body, regarding AML and CFT norms in these countries.

UTI Beats SBI & LIC in Pension Plans

UTI Retirement Solutions, a pension arm of UTI AMC, has outperformed two leading fund managers, SBI Pension Fund and Life Insurance corporation fund in the New Pension Scheme (NPS) for government employees.

Industry officials point out that UTI Scheme I for central government employees yielded returns of 12.16 percent, greater than SBI's 11.70 and LIC's 11.88 percent returns. These returns are calculated on the mark-to-market basis which necessitates usage of market prices of instruments in the portfolio.

Since May 1, 2009,the pension fund regulatory, PFRDA has asked companies to report their net asset values (NAVs). Civil servants recruited after 2004 are now eligible for NPS.

The industry estimates reveal that over 6.5lakh central and state government employees are under the ambit of thisnew pension scheme as a result of which there has been an accumulationof nearly Rs. 3,700 crore in the pension corpus.

Out of this Rs. 3550 crore has been contributed by central government employees and the rest by state government employees.

"This performance is because of the strong credit-profile portfolio and better equity stocks selection," says Balram Bhagat, CEO, UTI Retirement Solutions.

As per the new pension scheme, fund managers have to invest 85 percent in debt while the rest is to be invested in equity.

RBI's Vision for Payment Systems in India

India's payments industry has revenues of nearly $14 billion and is poised for a major growth. The rapid advancements in the field of information technology (IT) have contributed to emergence of new products as well as methods of payment and settlement. In recent years, the use of electronic payments has witnessed manifold increase, partly reflecting increased adoption of technology.

RBI has recently released it's Draft Document on the "Payment Systems in India - Vision 2009-12". TheMission Statement articulated for payments system focuses on six distinct and succinct components- Safety, Security, Soundness,Efficiency, Accessibility & Authorisation.

The retail payment system includes cheque Clearing, retail electronic fund transfer and card payment. The ChequeTruncation System (CTS) was implemented in the National Capital Regionin February 2008 to enhance the efficiency of the paper based clearing system. Between end-March 2009 and end-September 2009, the branch network of national electronic funds transfer (NEFT) enabled banks increased from 54,200 to 60,839 and the RTGS enabled branches increased from 55,000 to 60,144. As at end-September 2009, 114 banks with 30,780 branches have been participating in national electronic clearing service (NECS) which was introduced in September 2008.

SCBs and non-bank entities are now permitted to issue pre-paid payment instruments. In August 2009, other entities were also permitted to issue mobile phone based semi-closedsystem pre-paid instruments for a maximum value of Rs.5,000. Since October 8, 2008, the ReserveBank has so far granted approval to 32 banks to provide mobile banking facilities to their customers. Cash withdrawal from Automated Teller Machines (ATMs) of the banks was made free of charge with effect from April 1, 2009.

Thats all for now..

Its also heard that the RBI is developing a system to replace payment through VISA/ Mastercard


which will help Banks in India to save a huge revenue they have been paying to these concenrns.

Your comments are welcome as usual

Have a nice time

Untill next time


State Bank Of Indore to be Merged ..??

Posted by drgorg on December 6, 2009 at 10:44 AM Comments comments (0)

SBI to Takeover SB Indore SOON

News says that, The Indian government has given approval to State Bank of India to initiate the process of acquiring one of its associate lenders,State Bank of Indore, the junior finance minister told lawmakers on Friday.


SBI, India's largest bank, has already acquired one of its subsidiaries - State Bank of Saurashtra. It has six other associate banks and plans to take over all associates eventually. "SBI has already initated the process," Namo Narain Meena told the lower house of parliament in a written reply.


State Bank of Indore had informed the Bombay Stock Exchange on Oct 31 that its board had approved the proposed acquistion of the bank by SBI, including a share exchange ratio proposing allotment of 34 equity shares of SBI in lieu of every 100 equity shares of State Bank of Indore.

The minister said bank employees' unions have expressed apprehensions over the proposed consolidation in the banking sector, particularly state-run banks. "Some of the apprehensions are closing of bank branches, retrenchement of existing employees, regional sentiments about some particular banks, etc," he said.


He also said government has not given "direction to any specific bank to consider proposal for merger or amalgamation with a particular bank." The initative for consolidation had to be taken by the managements of the banks and government would play a supportive role as the common stakeholder.

(source Economic Times 4 Dec 2009,)

In this era of overtaking, aquisition, mergers and amalgumation, what do you think about the Banking scenario in comming 5- 10 years..? will our economy be strong enough to absorb the SHOCK of recession, as it could in recent days, in Future also. when our Banks are merged and Stake of Govt. is reduced as being done now?

Give your views and comments,

And have a very festive time till then


Merger Of Dena Bank..2

Posted by Satyajit on November 26, 2009 at 11:31 AM Comments comments (1)

Dena, Andhra, and Corporation banks are the  most sought after acquisition targets

Dena bank, Andhra Bank and Corporation banks are the favourite acquisition targets among leading public sector banks.

News Report says that, Sources from banking industry said that that Union bank of India, Bank of Baroda and Punjab National Bank were keen on acquiring Corporation Bank while Canara Bank and PNB were interested in acquiring Dena Bank.

Bankers say that the consolidation talks would take long to materialise since they were in preliminary stages. Sources say that the finance Ministry officials are expected to meet CEOs of small and medium sizedpublic sector banks to know their views on consolidation.

The News further says that the large banks did not show any interest in acquiring banks like Bank Of Maharashtra, Central Bank of India and Punjab & Sind bank largely due to union problems faced by the banks. The large banks did not show any inclination in buying banks located on the eastern belt due to fear of resistance from the political front and labour issues (Rupee Times Nov 25, 2009)

Friends, it seems just a matter of time for the change to take place doesn't it..? inevitable?

Tell me what do you think about it..

Until then have a wonderful time.


Merger Of Dena Bank..??

Posted by drgorg on November 25, 2009 at 11:37 AM Comments comments (0)

Possiblility of Merger Of  Public Sector Banks

In what could turn out to be the beginning of consolidation of Indian public sector banks, Canara Bank is understood to be zeroing in on acquiring mid-sized Dena Bank, for which it had appointed a consultant. The country’s third largest public sector lender, Canara Bank, had mandated Ernst & Young for exploring the possibility of such a deal, sources close to the development said.

When contacted, The Then Canara Bank chairman and managing director MBN Rao had said, “I would not be able to make any comment.” Sources, however, said that the consultant had already submitted a preliminary report and the evaluation process was on. (Financial Express Wed, 25 Nov 2009 News dated 09-05-2007)

Already, the country’s biggest lender, State Bank of India, is in the middle of a consolidation drive. The bank plans to merge all its seven associates with itself. While, State Bank of Saurashtra has been merged, the process of merging State Bank of Indore is on.

In the backdrop of reports that Canara Bank is looking for a merger with Dena Bank, the chairman and managing director of Canara Bank A.C. Mahajan said that he felt consolidation is bound to happen among public sector banks. “Consolidation within the industry in inevitable and we may talk to a bank which may give us wider presence and has the same style of functioning as we do,” Mahajan told Financial Chronicle (Financial Chronicle Nov 23 2009 )

Friends, Now in this backdrop, Can anyone think of merger of RRBs..? about which the Hon'ble finance Minister had indicated that all speculations about FURTHER merger of RRBs should be put to an end for now, since the Fin. Ministry Didn't have any such plan at that time.

Think about it, and post your thoughts here

Untill then Have a very fine time.

Some Bad News about Banks in India

Posted by drgorg on November 24, 2009 at 11:18 AM Comments comments (0)

Credit Targets Are felt to be on a Higher Side

The credit growth situation in the country continues to deteriorate, the pace of growth in October is at a 12 year low of 9.5%. India Inc isn't spending and indirect tax and excise collections, the biggest macro indicators of economic activity, have dropped 20%.


According to Rupa Nitsure, Chief Economist, Bank of Baroda, "RBI may have to lower credit growth targets to 16% from 18%".


The Article about low growth in Loans (credit ) has already been posted byus here in this blog a few days back.,

Since the targetted level of credit, it seems, cant be achieved, therefore the view about reducing the targets by varous economic experts.

Increasing NPAs in Banks in India

Global rating agency Moody’s has expressed concerns on the outlook for India’s banking sector.

In its latest report, Moody’s has justified its negative outlook for the Indian banking sector on the grounds of challenging economic conditions and the rising level of problem loans which will have an adverse impact on their asset quality.

“Our main concern about the Indian banking system is the deteriorating asset quality and the volume of restructured loans,” it said. During fiscal year ending March 2009, absolute gross non-performing loans (NPLs) for all Indian commercial banks increased by 22.5% compared with 11.9% inthe previous year.

(sources Economic Times and BloomebergUTV dt 23-09-09)

Friends, we had posted an article about the Increasing trend of NPAs in the Indian Banking Industry , here in this Blog a few days ago. The Incerasing problem loans/ NPAs can cause what a havoc, USA and other countries are already witnessing,  where this problem was called "sub prime", and have to roll out BAIL-OUT Plans for their Banks/ Industries.

I Invite you all to express your views in this regard,

Wishing you the best of the times ahead.