PAYMENT BANK LICENSE TO DOP
MANY NEWS ARE COMING ABOUT PAYMENT BANK LICENSE TO DOP
SO WE MUST KNOW WHAT WILL HAPPEN WHEN DOP WILL GET IT .HERE IS THIS INFO
The Payments Bank will be set up as a differentiated bank and shall confine its activities to further the objectives for which it is set up. Therefore, the Payments Bank would be permitted to undertake only certain restricted activities permitted to banks under the Banking Regulation Act, 1949, as given below:
Acceptance of demand deposits, i.e., current deposits, and savings bank deposits. The eligible deposits mobilised by the Payments Bank would be covered under the deposit insurance scheme of the Deposit Insurance and Credit Guarantee Corporation of India (DICGC). Given that their primary role is to provide payments and remittance services and demand deposit products to small businesses and low-income households, Payments Banks will initially be restricted to holding a maximum balance of Rs. 100,000 per customer. After the performance of the Payments Bank is gauged by the RBI, the maximum balance can be raised. If the transactions in the accounts conform to the “small accounts”1 transactions, simplified KYC/AML/CFT norms will be applicable to such accounts as defined under the Rules framed under the Prevention of Money-laundering Act, 2002.
Payments and remittance services through various channels including branches, BCs and mobile banking. The payments / remittance services would include acceptance of funds at one end through various channels including branches and BCs and payments of cash at the other end, through branches, BCs, and Automated Teller Machines (ATMs). Cash-out can also be permitted at Point-of-Sale terminal locations as per extant instructions issued under the PSS Act. In the case of walk-in customers, the bank should follow the extant KYC guidelines issued by the RBI.
Issuance of PPIs as per instructions issued from time to time under the PSS Act.
Internet banking - The RBI is also open to applicants transacting primarily using the Internet. The Payments Bank is expected to leverage technology to offer low cost banking solutions. Such a bank should ensure that it has all enabling systems in place including business partners, third party service providers and risk managements systems and controls to enable offering transactional services on the internet. While offering such services, the Payments Bank will be required to comply with RBI instructions on information security, electronic banking, technology risk management and cyber frauds.
Functioning as Business Correspondent (BC) of other banks – A Payments Bank may choose to become a BC of another bank for credit and other services which it cannot offer.
The Payments Bank cannot set up subsidiaries to undertake non-banking financial services activities. The other financial and non-financial services activities of the promoters, if any, should be kept distinctly ring-fenced and not comingled with the banking and financial services business of the Payments Bank.
The Payments Bank will be required to use the word “Payments” in its name in order to differentiate it from other banks.
Deployment of funds
The Payments Bank cannot undertake lending activities. Apart from amounts maintained as Cash Reserve Ratio (CRR) with RBI, minimum cash in hand and balances with a scheduled commercial bank/RBI required for operational activities and liquidity management, it will be required to invest all its monies in Government securities/Treasury Bills with maturity up to one year that are recognized by RBI as eligible securities for maintenance of Statutory Liquidity Ratio (SLR). The Payments Bank will participate in the payment and settlement system and will have access to the inter-bank uncollateralised call money market and the collateralised CBLO market for purposes of temporary liquidity management.
6. Capital requirement
Since the Payments Bank will not be allowed to assume any credit risk, and if its investments are held to maturity, such investments need not be marked to market and there may not be any need for capital for market risk. However, the Payments Bank will be exposed to operational risk. The Payments Bank will also be required to invest heavily in technological infrastructure for its operations. The capital will be utilised for creation of such fixed assets. Therefore, the minimum paid up voting equity capital of the Payments Bank shall be Rs. 100 crore. Any additional voting equity capital to be brought in will depend on the business plan of the promoters. Further, the Payments Bank should have a net worth of Rs 100 crore at all times. The Payments Bank shall be required to maintain a minimum capital adequacy ratio of 15 per cent of its risk weighted assets (RWA) on a continuous basis, subject to any higher percentage as may be prescribed by RBI from time to time. However, as Payments Banks are not expected to deal with sophisticated products, the capital adequacy ratio will be computed under simplified Basel I standards.
As the Payments Bank will have almost zero or negligible risk weighted assets, its compliance with a minimum capital adequacy ratio of 15 per cent would not reflect the true risk. Therefore, as a backstop measure, the Payments Bank should have a leverage ratio of not less than 5 per cent, i.e., its outside liabilities should not exceed 20 times its net-worth / paid-up capital and reserves.
7. Promoter’s contribution
The promoter’s minimum initial contribution to the paid up voting equity capital of Payments Bank shall be at least 40 per cent which shall be locked in for a period of five years from the date of commencement of business of the bank. Shareholding by promoters in the bank in excess of 40 per cent shall be brought down to 40 per cent within three years from the date of commencement of business of the bank. Further, the promoter’s stake should be brought down to 30 per cent of the paid-up voting equity capital of the bank within a period of 10 years, and to 26 per cent within 12 years from the date of commencement of business of the bank. Proposals having diversified shareholding and a time frame for listing will be preferred.
8. Foreign shareholding
The foreign shareholding in the bank would be as per the extant FDI policy.
9. Voting rights and transfer/acquisition of shares
As per Section 12 (2) of the Banking Regulation Act, 1949, the voting rights in private sector banks are capped at 10 per cent, which can be raised to 26 per cent in a phased manner by the RBI. Further, as per Section 12B of the Act ibid, any acquisition of 5 per cent or more of voting equity shares in a private sector bank will require prior approval of RBI. This will also apply to the Payments Banks.
10. Prudential norms
As the Payments Bank will not have loans and advances in its portfolio, it will not be exposed to credit risk and, the prudential norms and regulations of RBI as applicable to loans and advances, will therefore, not apply to it. However, the Payments Bank will be exposed to operational risk and should establish a robust operational risk management system. Further, it may face liquidity risk, and therefore is required to follow RBI’s guidelines on liquidity risk management, to the extent applicable.
11. Business plan
The applicants for Payments Bank licences will be required to furnish their business plans and project reports with their applications. The business plan will have to address how the bank proposes to achieve the objectives of setting up of Payments Banks. The business plan submitted by the applicant should be realistic and viable. Preference will be given to those applicants who propose to set up Payments Banks with access points primarily in the under-banked States / districts in the North-East, East and Central regions of the country. However, to be effective, the Payments Bank should ensure widespread network of access points particularly to remote areas, either through their own branch network or BCs or through networks provided by others. The bank is expected to adapt technological solutions to lower costs and extend its network. In case of deviation from the stated business plan after issue of licence, RBI may consider restricting the bank’s expansion, effecting change in management and imposing other penal measures as may be necessary.
12. Corporate governance
The Board of the Payments Bank should have a majority of independent Directors.
The bank should comply with the corporate governance guidelines including ‘fit and proper’ criteria for Directors as issued by RBI from time to time.
SOURCE :RBI
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Showing posts with label BANKING. Show all posts
Showing posts with label BANKING. Show all posts
Wednesday, July 1, 2015
PAYMENT BANK LICENSE TO DOP
Tuesday, May 26, 2015
BANK EMPLOYEES WAGE REVISION-15% INCREASE IN SALARY AND ALLOWANCES
BANK EMPLOYEES WAGE REVISION-15% INCREASE IN SALARY AND ALLOWANCES
Indian Banks' Assassination
10th Wage Agreement
Indian Banks Association inked wage settlement with Employee Unions and Officers’ Associations today, 25th May, 2015. The settlement gives 15% increase in salary and Allowances to about 10 lakh bank employees.
Employees and officers from 43 banks including public sector banks, old private sector banks and some of the foreign banks benefit from the wage revision. The current wage revision is effective from 1st November 2012 and will be valid for 5 years. In all 11 All India Employees Unions and Officers’ Associations participated in the wage revision exercise.
The scale pay of Officers has been revised from Rs.14500 - Rs.52000 to Rs.23700 - Rs.85000. (Special allowance for officers ranging from 7.75% to 11% of basic pay along with applicable Dearness allowance has also been introduced)
The scale pay of Workmen - non-subordinate has been revised from Rs.7200-Rs.19300 to Rs.11765-Rs.31540, also the scale pay of Subordinate staff has been revised from Rs.5850-Rs.11350 to Rs.9560-Rs.18545. (Special allowance for workmen @7.75% of basic pay along with applicable Dearness allowance has also been introduced)
Another important feature of the settlement is that a medical insurance scheme is being introduced for families of employees.
The 15% wage revision would cost the Public Sector banks Rs.4725 crores as incremental Salary and allowances in a year. Banks have been making provision for wage revision from November 2012. Mr. T M Bhasin, Chairman, IBA and Mr. Rajiv Rishi, Chairman, Negotiating Committee of IBA led the Management team in the negotiations. IBA expects banks will implement the revision immediately.
IBA expects the salary revision to improve the moral of the bank employees, leading to better productivity.
Source: http://www.iba.org.in/  | |
PSU bank employees will soon get pay hike, arrears for 30 months
PSU bank employees will soon get pay hike, arrears for 30 months
Mumbai, May 22: Employees of public sector banks, old generation private sector banks and some foreign banks will be a happy lot as they will soon get 15 per cent pay hike, arrears for the last 30 months, and other benefits as part of a deal that the unions and bank managements have reached.
Unions, under the aegis of the United Forum of Bank Unions, and bank managements, represented by the Indian Banks’ Association, have worked out a detailed Bipartite Settlement/ Joint Note and the same will be formalised on May 25. The benefits that about 7.50 lakh bank employees stand to get are a special pay, a new hospitalisation scheme backed up by insurance and holiday on every second and fourth Saturday in a month. The back wages (arrears) that bank employees will get for the last 30 months will warm the cockles of their heart. Income tax authorities too will be happy as arrears will be taxable. S Nagarajan, General Secretary, All India Bank Officers’ Association, said “A special allowance has been introduced for employees… there is a new hospitalisation scheme backed up by insurance.” The wage settlement will benefit 3,04,000 odd officers (as on March 31, 2012) in the banking sector. Officers will get health insurance cover of Rs. 4 lakh and the clerical and sub-staff will get Rs. 3 lakh cover, he added. A corporate buffer will be created by banks to reimburse hospitalisation expenditure exceeding the abovementioned limits. Pointing out that the last wage settlement expired in October 2012, Nagarajan, in a lighter vein, observed that “Five years is the tenure of the wage settlement. We have already exhausted 30 months in coming to a settlement. It’s time now to submit the next charter of demands.” Vishwas Utagi, Vice President, All India Bank Employees Association, said the wage settlement will benefit about 4.50 lakh clerical and sub-staff in the banking sector. Bank employees will get close a couple of lakh rupees, on an average, as arrears in gross terms, he explained. Since payrolls are computerised, the arrears could be credited to employees’ accounts in a month. Utagi said the issue of upgradation of pension of retirees and 100 per cent neutralisation of dearness allowance will be taken up by the United Forum of Bank Unions separately. Source:http://www.  | |
Sunday, March 15, 2015
Easy Registration for Mobile Banking Services to Customers by Banks
Easy Registration for Mobile Banking Services to Customers by Banks
The Reserve Bank of India (RBI) has asked the banks to make registration process for mobile banking services easy and activate the services at the earliest to expand the reach of mobile banking. The RBI vide its circular dated 4.12.2014 has asked banks to strive to provide options for easy registration for mobile banking services to their customers through multiple channels, thus minimizing the need for the customer to visit the branch for such services.
Banks have also been asked to ensure that the time taken between registration of customers for mobile banking services and activation of the same should also be minimized. Further details in this regard are available at RBI’s website www.rbi.org.in. This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today. Source:http://www.pib.nic.in/  | |
MoU between Indian Army and HDFC Bank
MoU between Indian Army and HDFC Bank
On 13th Mar 2015 a Memorandum of Understanding (MoU) was signed between the Indian Army and HDFC Bank on the Defence Salary Package. The signing in ceremony was chaired by Lt Gen Rakesh Sharma, Adjutant General of Indian Army and attended by top dignitaries of HDFC Bank headed by Mr Rajender Sehgal, Group Head (Govt Business).
The first MoU between HDFC Bank and the Indian Army was signed in 2011 and was valid for a period of three years. The revised MoU is tailor made to suit the requirements of serving soldiers, pensioners and families. Number of additional facilities have been incorporated in the revised MoU after concerted efforts. Army is hoping that this MoU will benefit a large number of serving and retired Army personnel who are having their accounts with HDFC and provide them an opportunity to access modern banking facilities. The basic features of the MoU are free drafts, free cheque books, free funds transfers to any bank in India through RTGS / NEFT and free ATM cards. Some features which have been improved from before are enhancement of Personal Accident Insurance (PAI) cover and its applicability both on Account and Debit Card, Air Accident Insurance of Rs 25 Lakhs, Interest concession on auto loan and 50 % waiver on processing fees for auto and house loan. Two major additions have been applicability of the and overdraft facility to pensioners. The MoU also has a provision for yearly review of specific features and requests. Click here to see photograph: Col Rohan Anand, SM Source:http://www.pib.nic.in/  | |
Tuesday, February 24, 2015
Second and fourth Saturdays will henceforth be holidays for banks. The remaining Saturdays in a month will be full working days.
Wednesday, December 3, 2014
Bank Strike: Wage Negotiations with Bank Employees Unions/ Associations
Wage Negotiations with Bank Employees Unions/ Associations
Indian Banks' Association
Press Release
Wage Negotiations with Bank Employees Unions/ Associations
IBA is issuing this press statement in the backdrop of proposed relay strikes and agitational programs by Employee Unions/ Associations causing severe inconvenience to bank customers and general public.
2. Last bipartite settlement with the workmen unions was signed on 27.4.2010 and was valid from 1.11.2007 to 31.10.2012. Joint note with officers’ associations was also effective w.e.f. 1.11.2007. As per practice, wage revision in banks is done every five years.
3. The apex level workmen unions and officers’ associations submitted their Charter of Demands in October 2012 for wage revision. The management team under IBA took up bipartite talks almost immediately thereafter. With a view to increase profitability and market share, we proposed productivity linked compensation structure. Plan to introduce cost to company concept of compensation and splitting of wages into fixed and performance linked variable components were placed before unions/ associations. Unfortunately unions/associations rejected our proposals.
4. The Negotiating Committee of IBA has convened 14 rounds of meetings with the representatives of Unions/ Associations so far and two important issues viz., effective date of settlement and merger of CPI at 4440 points (60.15%) as on November 2011 have been amicably settled. The wage revision in banks is done keeping in view the paying capacity of the banks. It is pertinent to note that in the recent years, while operating profits of Public Sector Banks have shown some growth, the net profits have shown declining trends. Staff expenses have gone up substantially in excess of increases in income mainly due increases in dearness allowances which compensate for the impact of inflation. As such, the banks are not in a position to accept the demand of the Unions/ Associations for 23% hike in salary and allowances. Moreover, the banks are required to implement Basel-III norms by 2018 for which additional capital is to be infused. Raising capital from the market will require banks to better their profitability. Considering the present paying capacity of banks, a hike of 11% on salary and allowances has been offered.
5. Considering the financial constraints / depleting profits of banks, IBA advised unions/ associations that IBA is not in a position to increase more than the last offer of 11% in pay slip. This works out to 12.5% on Bank's establishment cost taking into account cost of superannuation benefits. However, IBA is willing to negotiate further if Unions/ Associations reduce their demand substantially from 23%. Despite the appeal by the IBA and Chief Labour Commissioner (C) at the conciliation meeting held on 10.11.2014 not to go on strike and resolve the issue through bipartism, the Unions/ Associations did not pay heed to the appeals and went on strike on 12.11.2014. While IBA is always flexible and keen on early settlement of wage negotiations, the Unions/ Associations are stonewalling suggestions to improve productivity and profitability and demanding unaffordable wage increases. The relay zonal strike programme being launched by unions/ associations from December 2, 2014 is unreasonable, unethical and unwarranted. We appeal to the unisons/associations to give up the agitational path and return to the negotiating table.
6. IBA deeply regrets the inconvenience caused to bank customers and general public due to the agitational programme launched by the employee unions/ associations.
M V Tanksale
Chief Executive
Source: http://www.iba.org.in/ | |
Thursday, August 7, 2014
Dearness Allowance for Workmen and Officer Employees in banks for the months of August, September & October 2014
Dearness Allowance for Workmen and Officer Employees in banks for the months of August, September & October 2014
Indian Banks’ Association
HR & INDUSTRIAL RELATIONS
No.CIR/HR&IR/D/76/D/2014-15/
1st August, 2014
All Members of the Association
(Designated Officers)
Dear Sirs,
Dearness Allowance for Workmen and Officer Employees in banks for the months of August, September & October 2014 under IX BPS/Joint Note dt. 27.4.10
The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960=100) for the quarter ended June 2014 are as follows:-
The average CPI of the above is 5569.52. The DA paid for the quarter ended July 2014 was at CPI 5436.00. Hence, there is an increase in CPI of 133.52 points, i.e., increase of 33 slabs over the current level.
Consequently, dearness allowance to employees is payable for 683 slabs for the period August, September & October 2014 i.e. an increase of 33 slabs over the current level.
In terms of clause 7 of the 9th Bipartite Settlement dated 27.04.2010 and clause 3 of the Joint Note dated 27.04.2010, the rate of dearness allowance payable to workmen and officer employees for the months of August, September & October 2014 shall be 102.45% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.
We advise banks to pay the difference between the old and revised salary and allowances to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.
Yours faithfully,
sd/-
K S Chauhan
Senior Vice President
Source: www.iba.org.in
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Monday, May 6, 2013
Vijaya Bank Recruitment 2013 of Probationary Manager (Security)
Vijaya Bank Recruitment 2013 of Probationary Manager (Security)
Vijaya Bank Recruitment 2013 of Probationary Manager (Security) -Security in MMG Scale-II Vijaya Bank invites application , for appointment of 17 ‘Probationary Manager-Security in MMG Scale-II’... for more details, visit website link given above or go to jobalerts.successcds.net | |
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Tuesday, March 19, 2013
State-wise educational loan outstanding of Public Sector Banks
State-wise educational loan outstanding of Public Sector Banks
The Government receives suggestions and representations highlighting the requirements of students in availing education loans, under the Model Educational Loan Scheme of Indian Banks’ Association (IBA). These are forwarded to Banks for corrective action. Keeping in view the needs of the students and suggestions received from the stakeholders the Scheme is modified by Indian Banks Association (IBA) from time to time. The last such revision was made in September, 2012. The outstanding education loans by Public Sector Banks has increased from Rs.35,855 crore in 19.11 lakh accounts as on last reporting Friday of March, 2010 to Rs.52,982 crore in 25.09 lakh accounts as on 31.12.2012. State-wise details, including for Kerala, is Annexed. State-wise educational loan outstanding of Public Sector Banks
( Amount in Rs crore ) ( No. of A/Cs in actual)
As on the last reporting Friday of March
Source: RBI. **
Source: PSBs (Data is Provisional) The above detailed information was submitted by the Minister of State for Finance Shri. Namo Narain Meena in the Lok Sabha on 8th March, 2013. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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