bank

The Reserve Bank of India (RBI) has issued clarifications on ‘new bank licenses’ after receiving 443 queries. The majority of the queries pertained to holding company structure, relaxation for non bank finance companies (NBFCs) converting into banks and having to contend with regulatory requirements (CRR, SLR, PSL). While providing eligible applicants up to 18 months for setting up the banks (v/s 12 earlier), RBI has not changed its stance on the holding company (hold co) structure norms.

The RBI reiterated that new banks would have to meet all regulatory requirements on all assets that will be transferred, including SLR, CRR, and Priority sector loans as is applicable for existing banks. They will be allowed to convert their existing branches in Tier 2-6 cities into bank branches. Tier 1 branches will be permitted to operate in Tier 1 cities with

The recent sharp correction in gold price has raised concerns on the business models of gold loan NBFCs (Muthoot and Manappuram)
with stocks falling 24-33% over the last 10 days. Among banks, South Indian (22%) and Federal (9%) have high gold loan exposure.

How does Gold Loan Lending Work in India ?
Gold loans are usually personal loans with gold jewellery as collateral. The normal LTV is 60% on value of jewellery (which normally works out to ~70% of gold by weight excluding peripherals like making charges, etc.). Interest rates charged by NBFCs tend to be in the 20-25% range (banks lend lower at 12-15%), with tenure of the loan ranging from 3 months to a year. The payment is usually in the form of a lump-sum (principal+interest) at the end

It is well known fact that Indian Politicians [90%] are Corrupt and have Unaccounted money also known as Black Money. This money is Invested by Bankers bypassing rules and regulations. There are ways to convert black money into white: invest in insurance, invest in gold, deposit the cash in bank’s account, split the cash in smaller chunks to avoid detection, open multiple accounts, and the likes. All these ways serve the purpose of the client well, fully covering the tracks so much so that government regulatory authorities would never get a whiff of such dubious transactions.

The modus operandi the bank officials

We’d like to present to you the total number of ATMs installed by all the banks in India. This will be helpful for citizens who travel a lot and who may require cash. RBI also has a customer friendly regulation of currency withdrawal at other bank ATMs other than the one where you have your account.

Indian Banks together have an ATM network of 99,218 machines dispensing cash across the country at end of June-2012. This includes ATM at Banks as well as Non-Bank locations. SBI leads the pack with 22,469 ATMs followed by Axis Bank with 10,337 ATMs. The difference between the First and Second is quite large for anyone else to come and fill the gap. Surprisingly, Barclays and American Express do not have any ATMs in India.

The Following chart shows Total Number of ATMs Installed by each and every Bank in India.

We’d like to share with you a chart that shows the Key Interest Rates in India – Repo Rate, Reverse Repo Rate, CRR and Inflation indicators WPI and CPI.

What is Repo Rate – The RBI’s lending rate or liquidity injection rate is the only ‘independently varying’ policy rate.

What is Reverse Repo Rate ? This is the liquidity absorption rate and is pegged at 100bps below the repo rate to
help improve monetary transmission.

CRR – Cash reserve Ratio – Proportion of deposits required to be held in cash by banks with the RBI.
The Following Chart Shows

The RBI Ombudsman Manual of 2010-11 discusses an interesting case of Fraudulent ATM withdrawals while ATM Cards are Safely in the Hands of Owners and they have not disclosed any PIN. This is for not just one or two customers but around 100 customers siphoned this way.

A series of complaints were received against a few banks alleging unauthorized debits in complainants’ accounts as a result of fraudulent withdrawals through ATMs. Considering the volume, value, timing