Category Archives: Banking Products

Safe ePayments on the Roll – NPCI & NABARD join hands to train RRBs for Electronic Payment Systems

 

            In India, the large number of Regional Rural Banks spread across the country play a vital role in economic system.

            Majority of the RRBs have migrated to CBS (Core Banking System). To leverage the full benefits of CBS, RRBs have to roll out Safe ePayment modules.

            RRB customers are willing to migrate from paper based transactions to electronic based transactions provided that they are assured the safety of their account balances.

            As a steps toward Safe ePayment Modules, NPCI (National Payments Corporation of India) and NABARD (National Agricultural Bank for Rural Development) are conducting two day workshops, with a focus on procedural guidelines for various electronic payment products available in our country.

            It might be noted that as a result of amalgamation, number of the RRBs has been reduced from 196 to 64 as on 31 March 2013. However the number of branches of RRBs increased to 17856 as on 31 March 2013 covering 635 districts throughout the country. The amalgamation exercise is expected to enhance the operational efficiencies of the RRBs.

            Out of the present 56 RRBs present in our country, 47 RRBs are part of the NPCIs NFS (National Financial Switch) network. A NFS member can access the NPCIs ATM network, as well as other electronic payment products viz CTS, NACH, IMPS. 

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sbiINTOUCH – Experience the new way of Digital Banking

 

State Bank of India on its founding day launches sbiINTOUCH to enable Indians to experience the new frontier in digital banking.

 

In the first phase the sbiINTOUCH kiosks will be located in Malls in major cities of India. The sbiINTOUCH digital banking kiosk will have INTOUCH Window, Express Banking Kiosks, Remote Exert Pod and Smart Table.

 

Today the sbiINTOUCH kiosks will be thrown open to the public in the cities of Mumbai, Chennai, Kolkotta, Ahmedabad and Bangalore.

 

Depending on the feedback and footfalls, similar sbiINTOUCH digital banking kiosks will be open in the rest of the country.

 

Best of luck SBIIians.

sbiintouch_Fotor

Reserve Bank of India announces rate of Interest on Floating Rate Bonds 2015

 

On 27/06/2014, RBI has announced that the rate of interest on the Floating Rate Bonds, 2015 (FRB, 2015) applicable for the year (July 2, 2014 to July 01, 2015) will be 8.83 percent per annum.

Dated Government securities are long term securities and carry a fixed or floating  coupon (interest rate) which is paid on the face value, payable at fixed time periods (usually half-yearly). The tenor of dated securities can be up to 30 years.

Floating Rate Bonds – Floating Rate Bonds are securities which do not have a fixed coupon rate. The coupon is re-set at pre-announced intervals (say, every six months or one year) by adding a spread over a base rate. In the case of most floating rate bonds issued by the Government of India so far,the base rate is the weighted average cut-off yield of the last three 364- day Treasury Bill auctions preceding the coupon re-set date and the spread is decided through the auction. Floating Rate Bonds were first issued in September 1995 in India.

The rate of interest on the FRB, 2015 was set at a mark-up (as decided in the auction held on July 1, 2004) over and above the variable base rate. The variable base rate for payment of interest shall be the average rate (rounded off up to two decimal places) of the implicit yields at cut-off prices emerging in the three auctions of Government of India 364 day Treasury Bills immediately preceding the relative annual coupon reset date which worked out to be 8.64 per cent. The mark-up decided in the auction held on July 1, 2004 was (+) 0.19 (plus 0.19) percent. The coupon rate has been fixed at 8.83 per cent per annum accordingly.

RTGS/NEFT open on July 1, 2014 – Magic of eKuber

Till last year, RTGS/NEFT were closed on July 1, 2014 as RBI was closed for public transactions on account of its annual closing of accounts.

It may be noted that RBIs accounting year is July to June.

This year as a departure from the norm, RBI will work on July 1, 2014 to facilitate Public Transactions.

This is aid the settlement of market transactions, as also, to aid the transactions of the general public and also: –

  • Services, such as, RTGS/NEFT, transfer of funds and settlement of securities will be available from 12:00 noon onwards;
  • Settlement of funds as well as securities for all transactions that settle on T+0 basis will be effected from 12:00 noon onwards;
  • Settlement of all outstanding transactions under the Reserve Bank’s liquidity adjustment facility(LAF)/marginal standing facility(MSF) due for reversal will take place at 12.00 noon on that day;
  • The morning LAF window will operate between 12.30 p.m. and 1.30 p.m.

ePayment participants have sufficient lead time, to now plan for their transactions on July1,2014