Tuesday, December 27, 2016

Cash Costly, allow Banks to Charge for Cash Transactions

Mumbai, December 26: The country’s largest bank, State Bank of India, wants the government to allow banks to charge customers for cash transactions, said a senior executive. “We must be allowed to charge bank account holders to charge for cash transactions. Handling cash is a huge cost to banks,” said Manju Agarwal, deputy managing director at SBI. “Given that this is an opportune time, there needs to be incentives to use cards or internet to make electronic payments and discourage cash.”

The Reserve Bank of India and commercial banks face a total of Rs.21,000 crore ($3.5 billion) in currency operations costs annually. Speaking about the digital push after demonetisation, Agarwal said they have seen multifold rise in debit card and mobile banking usage to make payments. Banks, including SBI, have been promoting cashless transactions through cards and their mobile applications. SBI is aggressively promoting its SBI Buddy. Moreover, in collaboration with telecom firm BSNL, it has launched its new app – ‘mobicash’ which features three-way access to transfer fund from the mobile phone.

Agarwal said there were easy and secure ways to make cashless transactions even on basic phones which facilitate transactions through SMS or USSD code. Last week, SBI chairman also spoke about finding ways to disincentivise cash transactions, such as imposing a charge or levy above a specified limit or threshold, after normalcy is restored in banking operations.

With about 90% of our transactions done in cash, India has a cash-to-GDP ratio of about 12.2%, believed to be relatively high compared to many of its peer countries like Brazil, Russia and Mexico. Though the withdrawal of high-value currency notes has taken the number to 7.3% of the GDP, which is lower than US at 7.8% (as per RBI data), it is estimated to settle at 10% after the entire demonetised value is back in the system.

Bhattacharya said if India wanted to de-emphasise cash, not only should there be an incentive for people to move towards a cashless economy, but also a disincentive for transacting excessively in cash, leaving out small-ticket transactions. “Cash imposes a huge burden. We don’t understand it as it is not immediately visible. It is a huge burden on society,” she added.

Possession of Rs 10,000 in Old Notes after December 30 may invite Rs 50,000 Penalty

New Delhi, December 26: The government is likely to come up with an ordinance to penalise anyone caught in possession of old Rs 1,000 and Rs 500 notes worth more than Rs 10,000 after December 30, the last date to deposit demonetised currency notes in banks.

Sources said the ordinance is likely to be finalised before December 30. They added that the government is working out the penalty on the same which could go up to Rs 50,000 or more. The move is aimed at ensuring that people adhere to the deadline and deposit demonetised notes in bank by December 30.

Under the Garib Kalyan Yojana, people have till March 31, 2017 to disclose their illegal wealth and pay 50 percent tax, while locking in another 25 per cent of the declared income for four years. This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood.

The scheme is a part of the Taxation Laws (Second Amendment) Bill, 2016, passed by Parliament on November 29 to amend the income tax laws to provide for stiffer penal tax in the wake of the November 8 demonetisation. However, there would be no immunity from criminal acts like Prevention of Money Laundering Act, Naroctics Act or for holding 'benami' (by proxy) properties and smuggling offences.

Tuesday, December 13, 2016

Associate Banks of State Bank of India to offer VRS before merger with SBI

Kolkata, December 9:  The Associate Banks of State Bank of India (SBI) have started preparations to unveil voluntary retirement schemes (VRS) for their employees before the proposed merger with the parent bank. 

State Bank of Hyderabad (SBH) board has approved the VRS while other associate banks will place the scheme before their boards in the next few days, according to two senior SBI group officials.

The VRS in associate banks would help SBI curb in staff cost escalation after the merger. SBI’s staff expense was Rs 6,853 crore in the September quarter, rising 11.6% year-on-year. SBI’s pension obligation is estimated to be around Rs 3,500 crore. This would rise once associate bank employees come under SBI fold.

SBI has nearly 2.02 lakh employees while its associate banks have a cumulative headcount of 70,000. SBH, the largest among all the five associate banks, has around 18,000 employees. State Bank of Patiala has around 15,000.

The details of VRS is not known as yet. Sources in the SBI said all associate bank employees opting for it would get similar benefits. A good chunk of them are likely to go for VRS as there has been apprehensions across levels about their pecking order under the State Bank of India.

The government approved the merger in August while the exercise is likely to be over by March 2017. The integration of IT platform-- a key aspect to SBI’s merger with associate banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore– is in the final stages.

SBI chairman Arundhati Bhattacharya earlier said there would be no pay cut and job loss for associate bank employees after the merger. At the time of State Bank of Saurashtra and State Bank of Indore's merger with SBI, there were allegations that fairness was compromised demotivating associate bank employees.

As on September 30, associate banks cumulatively have Rs 5,21,344 crore of deposits and Rs 3,92,436 crore in advances. This will get added to SBI’s Rs 18,58,999 crore of deposits and Rs 14,81,832 crore of advances, making the group's total business nearly five times of ICICI Bank's business of Rs 9,03,371 crore.

Sunday, December 11, 2016

RBI asks banks to upload KYC with central registry from January 1

Mumbai, December 8 (PTI): Reserve Bank today directed all banks to upload the Know Your Customer (KYC) data pertaining to new individual accounts opened after January 1, with Central KYC Records Registry. Besides, it has been decided to allow One Time Pin (OTP) based e-KYC subject to certain restrictions.

"All Scheduled Commercial Banks (SCBs) are required to invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017, with Central KYC Records Registry," RBI said in a notification. All banks are, however, allowed time upto February 1 for uploading date in respect of accounts opened during January 2017, it said.

Regulated entities other than banks are to upload the KYC data pertaining to all new individual accounts opened on or after from April 1, with Central KYC Registry.

For OTP, it said, restriction would include specific consent from the customer for authentication and the aggregate balance of all the deposit accounts of the customer should not exceed Rs 1 lakh.

Besides, the aggregate of all credits in a financial year, in all the deposit taken together, should not exceed Rs two lakh.

"Banks should invariably upload the KYC data pertaining to all new individual accounts opened on or after January 1, 2017 with CERSAI in terms of the provisions of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005," it said.

Under Foreign Account Tax Compliance Act (FATCA) and Common Standard on Reporting (CRS), regulated entities should adhere to the provisions of Income Tax Rules and determine whether they are a reporting financial institution as defined in Income Tax Rule.

Thursday, December 8, 2016

Black money estimates overshot as 82% of cash deposited in banks

About Rs.12.6 trillion had been deposited
into bank accounts as of 3 December

New Delhi, December 6 (Bloomberg):  Indians have validated 82 percent of bank notes rendered worthless by Prime Minister Narendra Modi’s surprise move last month, according to people with knowledge of the matter, undermining the government’s estimate of black money in the economy.

About 12.6 trillion rupees ($185 billion) had been deposited into bank accounts as of Dec. 3, the people said, asking not to be identified citing rules for speaking with the media. The government had estimated that about 5 trillion rupees of the 15.3 trillion rupees sucked out by Modi’s move would stay undeclared, implying that this was cash stashed away to evade taxes, known locally as black money.

Lack of a meaningful cancellation could be a double blow for Modi as the measure was being used as a political and economic gauge of the success of his Nov. 8 move. One of Modi’s biggest campaign pledges was to expose black money in Asia’s No. 3 economy, and economists were viewing the cash as a potential windfall for the government.

“Some of the windfall that the government was hoping for from the cancellation of notes will be dented,” said Anjali Verma, chief economist at PhillipCapital Ltd. “That means the fiscal stimulus that was being expected might also take some hit. That is not good news at a time when direct consumption, private investment is not expected to pick up.”

Private indicators published over the past week signal that the $2 trillion economy will be hurt by the cash clampdown. Economists have also slashed India’s growth forecast for October-December, imperilling the nation’s status as the world’s fastest-growing big economy.

‘Defeats the Theory of Black Money’

Finance Ministry spokesman D.S. Malik wasn’t available for comment. The rupee ended little changed at 68.22 a dollar in Mumbai on Monday, the benchmark stock index rose 0.5 percent and the yield on the 10-year sovereign bond fell to 6.22 percent from 6.24 percent.

“Markets are not too worried at the moment,” said Chakri Lokapriya, Mumbai-based managing director at TCG Advisory Services, which manages about $3 billion. “But if 12-13 trillion rupees comes back into the system it defeats the whole theory of black money.”

In such a situation where the gains of demonetisation aren’t apparent, individuals will more closely analyse the pain. A slump in demand due to the cash shortages will hurt company revenues and government tax collections, widening the budget deficit and ultimately weakening the rupee, Lokapriya said.
- Bloomberg

Monday, July 4, 2016

SBI signs pact with World Bank ( July 04, 2016)

State Bank of India has inked agreements with the World Bank for a $625-million (around Rs.4,200 crore) facility to support grid connected rooftop solar programme in the country. This will help SBI finance grid connected rooftop solar photovoltaic projects at very competitive rates, the bank said in a statement. “This, in turn, will catalyse the market and support the government to faster achieve its target to generate 40 GW of electricity from widespread installation of rooftop solar photovoltaic panels,” it said. The eligible beneficiaries under the facility would be developers, aggregators and end-users, who wish to set up solar PV projects mainly on commercial, industrial and institutional rooftops.

SBI in pact with Flipkart for EMI facility ( July 02, 2016)

State Bank of India (SBI) on Friday partnered with Flipkart to offer pre-approved equated monthly instalment (EMI) facility to the bank's customers. Under this partnership, SBI will provide an overdraft facility to pre-qualified set of customers for transacting on Flipkart for a minimum purchase of Rs.5,000.
The EMI facility will be available in three tenures - 6, 9 and 12 months - and the bank will not charge any fees to process the facility. The interest rate s for such overdrafts will be same as personal loan the bank offers. Rajnish Kumar, managing director (National Banking Group), SBI, said: “We have identified 1 million SBI account holders who have qualified for the overdraft.” He said this facility aims to bring EMI facilities on Flipkart to people who do not have credit cards.
“The objective is to provide finance to credit worthy individuals through an end-to-end online facility without having to go through the process of applying for a personal loan for simple purchases,” Kumar said. The bank also launched SBI Mingle- the social media banking platform for Face-book and Twitter users. Using SBI Mingle, customers can do a host of banking services on Facebook or Twitter at their own convenience.

State Bank to offer banking services on Facebook, Twitter ( July 02, 2016)

Leveraging on the popularity of Facebook and Twitter, State Bank of India (SBI) has launched "SBI Mingle", allowing its customers access various banking services via these social platforms. "Using SBI Mingle, the bank's customers can do a host of banking services on their Facebook orTwttter accounts at their own convenience,” the bank said. Simultaneously, SBI has also tied-up with Fllpkart for preapproved EMI facility on purchases and launched "SBI Digital Villages” lo make a select rural segment part of the cashless ecosystem.

Saturday, March 19, 2016

RECRUITMENT OF OFFICERS IN SPECIALISED POSITIONS FOR WEALTH MANAGEMENT IN STATE BANK OF INDIA

RECRUITMENT OF OFFICERS IN SPECIALIZED POSITIONS FOR WEALTH MANAGEMENT
Important Events
Dates
Commencement of on-line registration of application
16/03/2016
Closure of registration of application
31/03/2016
Closure for editing application details
31/03/2016
Last date for printing your application
07/04/2016
Online Fee Payment
16/03/2016 to 31/03/2016

Advertisement No. CRPD/SCO-WM/2015-16/10

Saturday, March 12, 2016

SBI HOLIDAY SAVINGS ACCOUNT

SBI HOLIDAY SAVINGS ACCOUNT

Advance planning and regular saving will ensure that your holiday does not remain just a dream but turns to reality! State Bank of India in association with Thomas Cook India presents a unique savings plan for holiday goers. Under this scheme you can save monthly amounts in the form of a recurring deposit with the Bank in order to avail a vacation packagelisted under Holiday Savings Account packages on Thomas Cook website.
How it works:
  • Visit the Thomas Cook HSA website and choose a package of your choice.Click here

  • The cost of the package you choose will be divided by 13. You will be redirected to the OnlineSBI portal where you can setup an e- Recurring Deposit (e-RD) account for 12 monthly instalments.

  • Your e-RD will earn interest as per the prevailing interest rates for the 12 month period.

  • At the end of 12 months, the maturity proceeds will be transferred to Thomas Cook to pay for your pre-selected holiday package.

  • Thomas Cook will fund the balance amount i.e. the 13th installment to purchase your package after factoring in the accrued e-RD interest.

  • Enjoy your holiday!

Disclaimer and Terms & Conditions for SBI Holiday Savings Account
  • This e-RD account is opened for enrolling in Holiday Savings Account scheme of Thomas Cook and therefore information on this account will be shared with Thomas Cook.

  • The tenor for this product is fixed at 12 months and the amount is decided by Thomas Cook based on the package chosen by the customer.

  • This e-RD account in INR will be generated in the name(s) of the account holder(s) as the account from which it is funded.

  • If this e -RD account is closed prematurely, the proceeds will be credited to the account from which the e-RD account was initially funded.

  • e-RD account with additional rate of interest for Senior Citizens will be issued if option for "Senior Citizen" is selected by the customer and age of customer is 60 yrs or above, on the date of creating the recurring deposit, as per date of birth recorded with the Bank.

  • Premature closure of this e-RD account is allowed and the Bank’s applicable premature withdrawal penalty will be applied.

  • Penalty in case of delay in payment of instalment of RD shall be Rs 1.50 for every Rs. 100, per month.

  • On maturity of e-RD account, the maturity instruction set for the account will be executed and the proceeds will be transferred to Thomas Cook unless customer changes the maturity instruction to be credited to the Savings Account from which the e-RD account was funded.

  • The Bank will not be liable for any issues/ complains/ loss arising due to non-fulfilment of terms by Thomas Cook India.

  • This e-RD account is subject to TDS. The TDS is applicable on the Customer Information File (CIF) value and the amount of TDS applicable cannot be ascertained beforehand. The application of TDS may reduce the amount of funds transferred to Thomas Cook at the time of maturity and hence it will be the sole responsibility of the Depositor to pay the difference to Thomas Cook.

SBI : New : Youth for India


Monday, February 29, 2016

SBI launches Green PIN to generate paperless ATM PIN

Arundhati Bhattacharya Chairman of State Bank of India (SBI) along with the top management of SBI at the launch of Green Pin in Mumbai.Green PIN is an easy and convenient way to generate Debit card PIN through various channels like ATM, Internet Banking, IVR and SMS. It will benefit the customers with more convenience by avoiding delay and visits to branch for submitting regeneration ATM PIN requests.This initiative will save substantial cost on stationary and courier.

Saturday, January 30, 2016

Dearness Allowance – 28 Slabs (2.80%) more from February 2016 for Bank

Dearness Allowance – 28 Slabs (2.80%) increased from February 2016

DA chart for the months of February 2016 to April 2016
426 slabs :: DA Rate 42.60%

Officers

Clerical

Sub-Staff

Basic
D.A.
Increase
Basic
D.A.
Increase
Basic
D.A.
Increase

Officers up to Scale III

11,765
5,400.31
354.95
9,560
4,388.18
288.43
23,700
10,878.66
715.03
12,420
5,700.97
374.71
9,885
4,537.36
298.23
24,680
11,328.49
744.60
13,075
6,001.62
394.47
10,210
4,686.54
308.04
25,660
11,778.32
774.16
13,730
6,302.28
414.23
10,535
4,835.72
317.84
26,640
12,228.16
803.73
14,545
6,676.37
438.82
10,860
4,984.90
327.65
27,620
12,677.99
833.30
15,360
7,050.47
463.41
11,270
5,173.10
340.02
28,600
13,127.83
862.86
16,175
7,424.57
488.00
11,680
5,361.30
352.39
29,580
13,577.66
892.43
17,155
7,874.40
517.57
12,090
5,549.49
364.76
30,560
14,027.50
922.00
18,135
8,324.24
547.13
12,500
5,737.69
377.13
31,705
14,553.07
956.54
19,115
8,774.07
576.70
12,910
5,925.88
389.49
32,850
15,078.64
991.08
20,095
9,223.91
606.27
13,400
6,150.80
404.28
34,160
15,679.95
1,030.61
21,240
9,749.48
640.81
13,890
6,375.72
419.06
35,470
16,281.26
1,070.13

...