RBI on September 16, 2015 granted in-principle approval to 10 entities to set up small finance banks. The in princile approval is valid for 18 months.The entities who got the permission are Ujjivan Financial Service (Bengaluru),Janalakshmi Financial Service ( Bengaluru) Au Financiers (Jaipur), Equitas Holdings (Chennai),Capital Local Area Bank (Punjab), Disha Microfin (Ahmedabad), ESAF Microfinance (Chennai), RGVN (North East)…
The authorized agent who canvasses for sale of Kisan Vikas Patra (KVP) is eligible to receive the commission from the bank to which he/she is attached for the purpose.The agent can register at multiple branches of banks in his/her area of operation for the purpose of canvass and purchase of KVP certificates on behalf of…
The flows of credit from commercial banks are the major and the most noticeable cause of credit risk. Besides loans there is other type of credit risks in banking operations which is called counterparty risk. Loan has default risk; a derivative has counterparty risk. We are discussing here on Counterparty risks. What is the meaning…
In view of 2nd and 4th Saturdays of the month declared as public holidays for banks with effect from September 1, 2015, there is a change in RTGS time window. Hereafter, transactions will not take place on 2nd and 4th Saturdays of the month. Further, the process of future value dated transactions under RTGS which…
[The article explains the method of determining Lending rate of a bank under MCLR regime, method of calculating MCLR and the position of existing loans etc. Updated till 01.04.2016)]. The banks in India set their lending rates on loans and advances with reference to ‘Base Rate’ which is computed on the basis of the cost…
All scheduled and non-scheduled banks – public, private, foreign, cooperative, regional rural and local area banks whether or not included in the II Schedule to RBI act 1934 will observe public holiday on second and fourth Saturdays from September 01, 2015. The remaining Saturdays will be called as working Saturdays and will observe full working…
As a security and risk mitigation measure RBI vide its circular dated May 07, 2015 directed that with effect from September 01, 2015 all debit and credit, domestic and international cards issued by the banks shall be EMV Chip and PIN based cards. However in view of various banks expressing difficulties in meeting the above…
On a review of withdrawal through POS, it has been decided by RBI to enhance the cash withdrawal at POS from Rs.1000/- to Rs.2000/- per day in Tier III to VI centres with immediate effect. The cash withdrawal limit of Rs.1000/- per day through POS in Tier I & II centres remain unchanged. As per…
The Government of India has reduced the criteria of Crop loss from 50% to 33% for providing input subsidy (compensation) to the farmers. Accordingly, Reserve Bank decided to allow SLBC/DLCC/Banks to take view on rescheduling of loans if the crop loss is 33% or more. Banks may allow maximum period of repayment of up to…
The Finance Ministry, in exercise of powers conferred under the Negotiable Instruments Act, 1881, on Thursday issued a notification declaring the second and fourth Saturday of every month as public holiday for banks in India, with effect from September 1, 2015. Accordingly, the first public Saturday holiday for banks will be on September 12, which…
