Banks will required to lend at least Rs 1,68,000 crore in less than 50 days to reach the 16% increase in credit set by RBI for the present fiscal. As year on year credit expansion up to February 12 is just 9.9% compared to the targeted 16%, it is quite doubtful that banks will achieve… Read More »
Indicating toughening of interest rates in the industry, India’s biggest private sector lender ICICI Bank on Thursday increased deposit rates in certain tenures by up to 0.50% with immediate effect. After this, the rate on deposits for 390 days goes up to 6.75% as against 6.5% previously, ICICI Bank spokesperson said. Interest rates on deposits… Read More »
Cheques will soon come with more security features such as water marks and hidden logo. This was decided when Reserve Bank of India (RBI) asked banks to adopt extra steps to avert forgeries and frauds. Over and above the extra security features, the cheques that will be issued by commercial banks as well as rural… Read More »
In order to grow the private banking sector, banks are now aiming at the rich from smaller towns. The growth in these towns is much more since these markets are not so nicely penetrated though bigger cities continue to bring in volumes. During the recent years, banks have been focusing on their private banking business,… Read More »
Berating the banking sector for its inability to reduce interest rates, the Economic Survey said borrowers are looking at optional and low-cost funding sources while cash-rich banks are keeping their excess money with the Reserve Bank of India. The pre-Budget statement about India’s financial health said, “The transmission of monetary policy measures (geared towards reviving… Read More »
RBI has recommended that the BPLR system be replaced by a base rate system below which no lending can be done. This recommendation comes in the backdrop of the BPLR system failing to achieve what it was originally intended for – transparency in lending rates charged by banks. The report submitted by the working group… Read More »
The evolution of the BPLR can be traced back to September 1990 when the first attempt to rationalize the administered lending rate structure was made by removing multiplicity and complexity of interest rates. According to this structure, the advances of scheduled commercial banks were divided into six slabs and progressively higher interest rates were prescribed… Read More »
All loans given after 01 April 2010 will be calculated as Lending rate =Base rate + X. The variable X will be based on parameters fixed by the banks which could include Operating costs, duration of loan, risks involved etc. This would also include charges relating to specific borrowers.
Unlike the manual clearing of cheques where there is a possibility of many human errors and subsequent delay in clearing, the MICR code on the cheque printed with a unique magnetic ink usually iron oxide has magnetic material present in it and thus makes it machine-readable and almost error proof! Under this method the reading… Read More »
On Thursday, ICICI Bank said that it foresees the interest rates to go up from the 2ndquarter of the forthcoming financial year, since investment activities will go up from then on.