A strategic partnership deal was signed between Lakshmi Vilas Bank and Life Insurance Corporation of India (LIC), India’s largest life insurance player, for bancassurance.
Under this deal the bank’s customers across India will be able to access the wide range of products of LIC. Lakshmi Vilas bank as the corporate agent for LIC has been providing holistic offering of banking services, will now be offering LIC’s best products to its customers through its 274 branches.
K.S.R. Anjaneyulu, managing director & CEO, Lakshmi Vilas Bank said, “With this strategic tie-up, we are now well on our way to offer an assortment of retail banking products to our customers. Given the fast changing market dynamics and its volatility, customers today are seeking avenues for financial security. Through this tie-up we can address this very need of the customers through our products and services and build a universal banking franchise.”
After signing the deal A.K. Dasgupta, MD of LIC India said, “We are keenly looking forward to the partnership with LVB, which is one of the leading schedule commercial banks in India with a strong clientele base, excellence in banking technology and delivery of high quality service, to give new and lasting value proposition to the esteemed customers of LVB through life insurance services.”
To provide all the financial services through one window, the bank has also signed a deal for a bancassurance with Bajaj Allianz General Insurance Co. for general insurance distribution business and arrangements for distributing the mutual fund products of various reputed AMCs
Friday, June 18, 2010
Thursday, June 17, 2010
95 percent of Meghalaya population still without bank accounts
The Reserve Bank of India is trying to cover all the villages under financial inclusion program by providing banking services to the people living in villages. It has also instructed banks take various measures for the implementation of financial inclusion in the villages in which they have to set up branches or through business correspondents they have to provide banking facility to the villages having population of 20,000 people.
Still over 95 percent of households in Meghalaya State do not have a bank account. The Chief Minister Mukul Sangma, who also holds the finance portfolio, told that it is becoming difficult to implement several of the central government’s flagship welfare programs as most of the households do not have a bank account.
He told as most of the population in the state, especially the rural poor does not have access to banking transactions, so it is not possible to implement centrally-sponsored flagship schemes such as Mahatma Gandhi National Rural Employment Guarantee scheme and others which are credit linked.
Sangma said, “A total of 95.9 percent households do not indulge in banking transactions. Moreover, the credit-deposit (CD) ratio in the state is very low.”
He informed that he has taken up these issues with union Finance Minister Pranab Mukherjee.
He added, “I have highlighted Meghalaya's constraints relating to poor implementation of the UPA (United Progressive Alliance) government's flagship programs before the finance minister and the central government will look into our problems.”
Still over 95 percent of households in Meghalaya State do not have a bank account. The Chief Minister Mukul Sangma, who also holds the finance portfolio, told that it is becoming difficult to implement several of the central government’s flagship welfare programs as most of the households do not have a bank account.
He told as most of the population in the state, especially the rural poor does not have access to banking transactions, so it is not possible to implement centrally-sponsored flagship schemes such as Mahatma Gandhi National Rural Employment Guarantee scheme and others which are credit linked.
Sangma said, “A total of 95.9 percent households do not indulge in banking transactions. Moreover, the credit-deposit (CD) ratio in the state is very low.”
He informed that he has taken up these issues with union Finance Minister Pranab Mukherjee.
He added, “I have highlighted Meghalaya's constraints relating to poor implementation of the UPA (United Progressive Alliance) government's flagship programs before the finance minister and the central government will look into our problems.”
Thursday, June 10, 2010
An innovative Cheque Truncation System launched to increase efficiency of banks
Newgen Software Technologies Limited is a leading company in Business Process Management (BPM) and Enterprise Content Management (ECM). The company has launched its next generation Cheque Truncation System (CTS) adapted to RBI “CTS – 2010 standard”. The main aim behind launching this system is to fully automate data extraction, verification and fraud detection in the CTS environment.
In this new specification the layout format of the cheques has been standardized to a much greater degree in comparison to the earlier one, also it includes various cheque security features. These security features not only ensure uniformity across all cheque forms issued by banks in the country, but will also help in scrutinizing cheques of drawee banks in an image-based processing scenario.
Speaking on the merits of ‘CTS-2010 standard’, Mr. Virender Jeet, Senior Vice President, Technologies said, “CTS-2010 standard is the right step towards achieving the true benefits of Cheque Truncation. Newgen’s research and development team has been working on the different aspects of cheque security and automatic data extraction for quite some time and now we can derive immense returns from these innovations”.
This standard also have another innovative security features - pantograph and ultra-violet logos. On all cheques bank logos will be printed with UV ink and these logos will be visible only under ultra-violet light. Moreover any corrections on the cheques will not be allowed.
More than 50 banks across Asia Pacific, India, Middle East, Africa and Europe including ING Vysya, Kotak Mahindra Bank, Bank of Baroda, Andhra Bank, Indian Bank, United Bank of India, Karnataka Bank, Abu Dhabi Commercial Bank, RAK Bank, Mashreq Bank are already gaining business benefits from Newgen’s CTS solution.
Newgen’s innovative solution will completely computerize Cheque Truncation and automate data extraction of all cheque fields which will be a great help for the banking industry as a whole and will improve the functioning of banks.
In this new specification the layout format of the cheques has been standardized to a much greater degree in comparison to the earlier one, also it includes various cheque security features. These security features not only ensure uniformity across all cheque forms issued by banks in the country, but will also help in scrutinizing cheques of drawee banks in an image-based processing scenario.
Speaking on the merits of ‘CTS-2010 standard’, Mr. Virender Jeet, Senior Vice President, Technologies said, “CTS-2010 standard is the right step towards achieving the true benefits of Cheque Truncation. Newgen’s research and development team has been working on the different aspects of cheque security and automatic data extraction for quite some time and now we can derive immense returns from these innovations”.
This standard also have another innovative security features - pantograph and ultra-violet logos. On all cheques bank logos will be printed with UV ink and these logos will be visible only under ultra-violet light. Moreover any corrections on the cheques will not be allowed.
More than 50 banks across Asia Pacific, India, Middle East, Africa and Europe including ING Vysya, Kotak Mahindra Bank, Bank of Baroda, Andhra Bank, Indian Bank, United Bank of India, Karnataka Bank, Abu Dhabi Commercial Bank, RAK Bank, Mashreq Bank are already gaining business benefits from Newgen’s CTS solution.
Newgen’s innovative solution will completely computerize Cheque Truncation and automate data extraction of all cheque fields which will be a great help for the banking industry as a whole and will improve the functioning of banks.
Wednesday, June 9, 2010
Know about Banking Ombudsman
Banking Ombudsman is a forum for bank customers for resolving their complaints related to certain services offered by banks. The Banking Ombudsman Scheme was introduced under Section 35 A of the Banking Regulation Act, 1949, by RBI in 1995. The Banking Ombudsman official is appointed by RBI who is responsible to address customer complaints against deficiency in certain banking services.
The customers can lodge their complaints at the office of the Banking Ombudsman, under whose jurisdiction, the bank branch is situated against which the complaint is being lodged. The complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction, the billing address of the customer is located.
In case of complaints related to credit card operations the Banking Ombudsman can award compensation not exceeding Rs 1 lakh to the complainant, for mental agony and harassment. But in this the Banking Ombudsman will not take into consideration the loss of the complainant’s time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant while passing such award.
The first attempt of the Banking Ombudsman is to settle the issue by an agreement between the complainant and the bank named in the complaint. In such case the terms of settlement offered by the bank are acceptable to one in full and final settlement of one’s complaint the Banking Ombudsman passes an order as per the terms of settlement which becomes binding on the bank and the complainant.
In case one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority against the Banking Ombudsman’s decision. Deputy Governor of RBI has an Appellate Authority.
The complainant can also move to the consumer court. The bank can also file an appeal before the appellate authority under the scheme.
The customers can lodge their complaints at the office of the Banking Ombudsman, under whose jurisdiction, the bank branch is situated against which the complaint is being lodged. The complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction, the billing address of the customer is located.
In case of complaints related to credit card operations the Banking Ombudsman can award compensation not exceeding Rs 1 lakh to the complainant, for mental agony and harassment. But in this the Banking Ombudsman will not take into consideration the loss of the complainant’s time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant while passing such award.
The first attempt of the Banking Ombudsman is to settle the issue by an agreement between the complainant and the bank named in the complaint. In such case the terms of settlement offered by the bank are acceptable to one in full and final settlement of one’s complaint the Banking Ombudsman passes an order as per the terms of settlement which becomes binding on the bank and the complainant.
In case one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority against the Banking Ombudsman’s decision. Deputy Governor of RBI has an Appellate Authority.
The complainant can also move to the consumer court. The bank can also file an appeal before the appellate authority under the scheme.
Monday, June 7, 2010
SBI in collaboration with Eko enable saving account accessible through mobile phones
The state government of Bihar has launched ‘Mobile Money Transfer System’ in Patna. The service has been launched in collaboration with United Nations Office for Project Services (UNOPS) and Norway-India Partnership Initiative (NIPI), an aid agency funded by Norway government. And, this service will be implemented by Eko Indian Financial Services Limited, a New-Delhi based company, in partnership with the State Bank of India (SBI). Through this service the Social Health Activists (ASHA) workers will receive their salary in a mobile bank account which would be linked to their cellphones.
In the beginning the projects has been as a pilot project in Sheikhpura district and by the year end it will be extended across the state.
Executive director, State Health Society, Sanjay Kumar while launching the project said, "Under the said scheme, ASHA workers would receive their pay in their SBI `no frills' Savings account which would be accessible from their mobile phones."
Kumar added that Eko will help Customer Service Points (CSP) to open an SBI mini savings bank accounts on their mobile phones for all financial transactions with zero capital expenditure. He informed that as the mobile number of a person is globally unique, therefore number will be used as an alias of the customer’s SBI bank account number and added that all transactions can be done by dialing the said number. He said all the transactions will get completed in real time the customers will be sent instant confirmations through SMS. Also, he said, when the health care workers have registered their mobile enabled bank accounts with local retailers, they will be able to deposit or withdraw funds by using a unique pin number.
Kumar said, this is the first time such type of system has been introduced in the country, the program aims is to empower women by promoting their financial inclusion with simple and secure access. He further added, that to provide payment to ASHA workers on time is a tough job therefore this project will enable to make payment to them on time.
On the other hand state co-coordinator, UNOPS-NIPI, Bihar, S P Sinha said with the implementation of this initiative gives an opportunity to effectively make use of available resources to accelerate the process of economic and social development.
CGM, rural business, SBI, J K Sinha said, "As SBI has always been at the forefront of providing banking outreach to rural areas, the project is an innovative use of technology in women empowerment."
Eko CEO Abhishek Sinha said, Eko main objective is to build a low cost financial services infrastructure with the mobile phone as its primary transaction interface, thus, this will help in reaching the financially excluded population where up till now no bank has been able to reach.
He told up till now Eko has over 470 outlets across Delhi, Bihar and Jharkhand with 70,000 customers making transaction of Rs 15 lakh per day.
In the beginning the projects has been as a pilot project in Sheikhpura district and by the year end it will be extended across the state.
Executive director, State Health Society, Sanjay Kumar while launching the project said, "Under the said scheme, ASHA workers would receive their pay in their SBI `no frills' Savings account which would be accessible from their mobile phones."
Kumar added that Eko will help Customer Service Points (CSP) to open an SBI mini savings bank accounts on their mobile phones for all financial transactions with zero capital expenditure. He informed that as the mobile number of a person is globally unique, therefore number will be used as an alias of the customer’s SBI bank account number and added that all transactions can be done by dialing the said number. He said all the transactions will get completed in real time the customers will be sent instant confirmations through SMS. Also, he said, when the health care workers have registered their mobile enabled bank accounts with local retailers, they will be able to deposit or withdraw funds by using a unique pin number.
Kumar said, this is the first time such type of system has been introduced in the country, the program aims is to empower women by promoting their financial inclusion with simple and secure access. He further added, that to provide payment to ASHA workers on time is a tough job therefore this project will enable to make payment to them on time.
On the other hand state co-coordinator, UNOPS-NIPI, Bihar, S P Sinha said with the implementation of this initiative gives an opportunity to effectively make use of available resources to accelerate the process of economic and social development.
CGM, rural business, SBI, J K Sinha said, "As SBI has always been at the forefront of providing banking outreach to rural areas, the project is an innovative use of technology in women empowerment."
Eko CEO Abhishek Sinha said, Eko main objective is to build a low cost financial services infrastructure with the mobile phone as its primary transaction interface, thus, this will help in reaching the financially excluded population where up till now no bank has been able to reach.
He told up till now Eko has over 470 outlets across Delhi, Bihar and Jharkhand with 70,000 customers making transaction of Rs 15 lakh per day.
Friday, June 4, 2010
Govt. committee recommends measures to bring professionalism in India’s banking industry
The employees of public sector banks (PSBs) are earning good salary in comparison to their private sector counterparts but there is lack of professionalism in India’s banking industry.
After the Sixth Pay Commission award for central government employees, as per a deal settled between IBA and employees’ unions, bank employees were given a 17.5% salary hike last year. But the service range of PSBs is becoming bigger and more complex, thus, there is a need for employees with specific skills as over 58% of middle-level managers in PSBs will be retiring in a couple of years.
Although, India’s 27 PSBs combined manpower strength is around 7 lakh. But the industry — which accounts for 70% of the banking business in the country — is experiencing a shortage of talent in high-end areas like risk management and treasury operations. To make the PSBs more competitive and infuse a greater degree of professionalism, a government committee has recommended 15-20% variable component in the salaries of PSBs employees, also has recommended the removal of the existing upper limit for their remuneration. It has also proposed for a hike in the retirement age to 62 years from the current 60, as told by sources in the committee. The committee has been set up by the finance ministry, is likely to submit its report next week.
If committee’s recommendations are accepted then each bank will get free hand to fix its salary structure based on its financial strength and also can reward the highly-skilled with out-of-turn promotions which will help in creating competitiveness amongst the employees resulting into constant up gradation of knowledge and skills.
The panel, headed by Bank of Baroda’s former chairman AK Khandelwal, has also recommended that each public sector banks should be allowed to settle salaries for its employees in line with their specific skill sets and the bank’s overall performance.
The panel of members of committee set up last year include MV Nair, CMD of Union Bank of India, Deepak B Phatak of IIT-Mumbai and TV Rao of IIM-Ahmedabad . Nair, who is also chairman of Indian Banks’ Association (IBA), told FE that “the report to be presented next week would have measures needed to revamp recruitment processes, career and succession planning and training.”
Currently PSBs follow an industry-wide wage settlement brokered by IBA once in five years, if the recommendations of the committee are accepted then this old system will be scrapped. However IDBI Bank tried to fix the wage structure of its own employees had to withdraw the policy due to opposition from employee unions.
An anonymous member of the panel said, “Many PSBs are not able to recruit and retain skilled people in key functional areas like risk management and treasury operations.” According to committee the promotions in highly specialized areas should be done on the basis of expertise and not on seniority basis.
After the Sixth Pay Commission award for central government employees, as per a deal settled between IBA and employees’ unions, bank employees were given a 17.5% salary hike last year. But the service range of PSBs is becoming bigger and more complex, thus, there is a need for employees with specific skills as over 58% of middle-level managers in PSBs will be retiring in a couple of years.
Although, India’s 27 PSBs combined manpower strength is around 7 lakh. But the industry — which accounts for 70% of the banking business in the country — is experiencing a shortage of talent in high-end areas like risk management and treasury operations. To make the PSBs more competitive and infuse a greater degree of professionalism, a government committee has recommended 15-20% variable component in the salaries of PSBs employees, also has recommended the removal of the existing upper limit for their remuneration. It has also proposed for a hike in the retirement age to 62 years from the current 60, as told by sources in the committee. The committee has been set up by the finance ministry, is likely to submit its report next week.
If committee’s recommendations are accepted then each bank will get free hand to fix its salary structure based on its financial strength and also can reward the highly-skilled with out-of-turn promotions which will help in creating competitiveness amongst the employees resulting into constant up gradation of knowledge and skills.
The panel, headed by Bank of Baroda’s former chairman AK Khandelwal, has also recommended that each public sector banks should be allowed to settle salaries for its employees in line with their specific skill sets and the bank’s overall performance.
The panel of members of committee set up last year include MV Nair, CMD of Union Bank of India, Deepak B Phatak of IIT-Mumbai and TV Rao of IIM-Ahmedabad . Nair, who is also chairman of Indian Banks’ Association (IBA), told FE that “the report to be presented next week would have measures needed to revamp recruitment processes, career and succession planning and training.”
Currently PSBs follow an industry-wide wage settlement brokered by IBA once in five years, if the recommendations of the committee are accepted then this old system will be scrapped. However IDBI Bank tried to fix the wage structure of its own employees had to withdraw the policy due to opposition from employee unions.
An anonymous member of the panel said, “Many PSBs are not able to recruit and retain skilled people in key functional areas like risk management and treasury operations.” According to committee the promotions in highly specialized areas should be done on the basis of expertise and not on seniority basis.
Wednesday, June 2, 2010
StanChart to set up 100 express banking centers
Standard Chartered Bank is planning to open 100 express banking centers during this fiscal. Recently bank has raised around Rs 2,490 crore through Indian Depository Receipts (IDRs).
Express banking centers are mainly the ATM sites having additional facility like an electronic cheque deposit box, transfer funds facility and self-service counter for other services.
According to a statement by StanChart, with these express centers, latest in banking technology, the customers will be able to easily access their banking requirements in a pleasing environment.
It added these centers will be set up in the areas close to customer’s homes and offices which will increase Standard Chartered's reach and this will also include a mobile version.
The first 27 express centers are already in operation and by end June, setting up of over 50 centers will be completed and made operational, it added.
It said the centers have been intentionally set up in areas which are near to places where customers mainly live and work thus making the bank more accessible and visible to its customers.
Express banking centers are mainly the ATM sites having additional facility like an electronic cheque deposit box, transfer funds facility and self-service counter for other services.
According to a statement by StanChart, with these express centers, latest in banking technology, the customers will be able to easily access their banking requirements in a pleasing environment.
It added these centers will be set up in the areas close to customer’s homes and offices which will increase Standard Chartered's reach and this will also include a mobile version.
The first 27 express centers are already in operation and by end June, setting up of over 50 centers will be completed and made operational, it added.
It said the centers have been intentionally set up in areas which are near to places where customers mainly live and work thus making the bank more accessible and visible to its customers.
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