While it’s easy to get caught up in treating industry regulations as a compliance exercise only, banking organizations should focus on enhancing an overall information security strategy.
This white paper offers effective tools and recommendations for banks and credit unions on:
Maintaining a process for compliance purposes
Building security into the organization
Gaining additional support for security initiatives
‘State Bank of India (SBI), the country’s largest lender, came out with an advertisement in all major national dailies on 5 November, stating that it will issue a new set of cheque book to its customers and that the existing cheque leaves will not be valid after 31 December 2012.
The Reserve Bank of India (RBI) has advised all banks to issue only CTS-2010 (cheque truncation system-2010) standard cheque. The initiative has been taken to standardize and enhance security features in cheque forms.
‘It is now mandatory for banks to strictly issue standardised and enhanced new format of cheques called CTS-2010. Which will be available from 30th Sept 2012. Also already circulated cheques will be replaced within 31st December 2012. So it is necessary for all to understand how your new cheque format looks like.
1) Paper-Same specification will continue related to paper specification as it exist now. In addition to that, paper should be image friendly and have protection against any alteration by having new features as chemical sensitivity to acids, alkalis, bleaches and solvents giving clear visibility of alteration. New cheque will not glow under Ultra-Violet light. This will make all cheques feel like same across all banks.
Truncation means, stopping the flow of the physical cheques issued by a drawer to the drawee branch. The physical instrument is truncated at some point en-route to the drawee branch and an electronic image of the cheque is sent to the drawee branch along with the relevant information like the MICR fields, date of presentation, presenting banks etc.
Cheque truncation, would eliminate the need to move the physical instruments across branches, except in exceptional circumstances. This would result in effective reduction in the time required for payment of cheques, the associated cost of transit and delays in processing, etc., thus speeding up the process of collection or realization of cheques.
As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker‘s Cheques will be reduced from 6 months to 3 months, from the date of issue of the instrument.(Stanchart)
During the process I do not get interest but Banks earn on this floating money.
Penalty for modern living.
“Leading private sector bankICICI Bank will charge its customers Rs 5 per transaction from next month for transfer of funds over mobile phones, a service available for free as of now.
The fee for inter-bank transfer of funds would be levied from April 1, along with a slew of revisions in the bank’s various service charges…
As per a circular issued by ICICI Bank, it will levy a service charge of Rs 5 per transaction on its IMPS (Interbank Money Payment Service) customers and would also limit such fund transfers at Rs 50,000 per transaction a day.
ICICI Bank is one of the top banks offering this service and has more than 30 lakh customers using the facility.
Regarding many other service charges, ICICI Bank has also decided moved to a monthly-basis of levying fees and maintenance of minimum account balance, from quarterly now.
For regular savings accounts, ICICI Bank would require its customers to maintain a monthly average balance of Rs 10,000 in metro and urban locations, Rs 5,000 in semi-urban and Rs 2,000 in rural areas.
For non-maintenance of minimum balance, it would levy a charge of Rs 250 per month in metro/urban areas, as against Rs 750 per quarter currently, in case of the average balance being Rs 5,000-10,000 and Rs 350 per month for average balance falling below Rs 5,000.
For ECS debit returns, the bank has increased the charge from Rs 250 per return to Rs 350 with effect from April 1.
The bank would allow four free cash transactions at the base branch in a month, as against 12 in a quarter now, and would levy a charge of Rs 90 per transaction thereafter (from Rs 50 currently).”
Net NPAs: Rs 12,347.90 crore
Gross NPAs: Rs 25,326.29 crore
The gross non-performing assets (NPAs) of public sector banks increased by 20 per cent during June-September 2011.
Standard & Poor’s, which had in September downgraded standalone ratings of State Bank of India, said high credit risks in the Indian banking sector reflects that the country has a weak payment culture and legal system that often result in low recoveries and delayed settlement of foreclosures.
(NPA figures are for the year ended March 2011, Source: RBI)
Net NPAs: Rs 2,407.36 crore
Gross NPAs: Rs 10,034.26 crore
ICICI Bank has the highest NPAs among private sector banks. ICICI Bank has slightly improved its net bad debts to 0.90 per cent from 0.91 per cent in the earlier quarter.
Indian banks face challenges like increase in interest rates on saving deposits, a tighter monetary policy, restructured loan accounts and increasing infrastructure loans.
3. Canara Bank
Net NPAs: Rs 2,347.33 crore
Gross NPAs: Rs 3,089.21 crore
Canara Bank’s gross NPA ratio increased to 1.73 per cent (Rs 3,793 crore) for the quarter ending September 30 from 1.49 per cent (Rs 2,636 crore) in the year-ago period. The net NPA ratio stood at 1.43 per cent (Rs 3,117 crore) in September.
Net NPAs: Rs 2,038.63 crore
Gross NPAs: Rs 4,379.39 crore
The NPAs of Punjab National Bank (PNB) rose by 29 per cent during the July-September quarter to Rs 5,150 crore.
Net NPAs: Rs 1944.99 crore
Gross NPAs: Rs 4,811.55 crore
The bank’s gross non-performing assets (npas) stood at 3.02 per cent, up 33 basis points sequentially, while net NPAs stood at 1.98 per cent, up 71 basis points sequentially.
Net NPAs: Rs 1,824.55 crore
Gross NPAs: Rs 3,150.36 crore
As NPAs mount, UCO Bank is eyeing a 20 per cent growth in its business and a reduction in its non-performing assets (NPAs) to less than 3 per cent in FY12.
Net NPAs: Rs 1,803.44 crore
Gross NPAs: Rs 3,622.82 crore
The system based NPA recognition method has led to a rise NPAs. Compared to the manual method, the system based study gives an accurate picture of bad loans.
However, the Union Bank is optimistic about cutting down NPAs. It expects gross NPAs to be below 3 per cent in the coming quarter.
Net NPAs: Rs 1,677.91 crore
Gross NPAs: Rs 2,784.73 crore
While IDBI’s gross NPA rose to 2.47 per cent from 1.88 per cent, net NPA shot up to 1.57 from 1.19 per cent in the second quarter.
Net NPAs: Rs 1,328.42 crore
Gross NPAs: Rs 3,089.59 crore
The gross NPA stood at Rs 3,090 crore in March 2011, as against Rs 3,611 crore in March 2010.
In percentage terms, the gross NPA ratio was 2.72 per cent as on March 2011 compared to 4.47 per cent in March 2010.
Net NPAs: Rs 1,030.84 crore
Gross NPAs: Rs 2,598.97 crore
While the net non-performing assets (NPAs) increased to Rs 1,052 crore for the second quarter ended September, as against Rs 917 crore in the year-ago period, the percentage of net NPA declined marginally to 0.93 per cent, as against 0.97 per cent in the same period last year.
If you find that there is an unaccounted credit into your account ,immediately report to the bank.
You have no right to spend the money and you will go to jail.
It could also be due to some one deposting money in your account to be retrieved later.( it is possible when online transactions are done); you might leave it with out touching it,if the money is with drawn by the third party and it is found that the money is being used for illegal activities,you will face a stiffer sentence..
A Laguna Beach, Calif., man was arrested after he allegedly spent more than half of a $110,000 tax refund that wasn’t his but was deposited into his bank account.
Oh, my. Can we learn some personal-finance lessons from this? (Tip o’ the hat to Washington PostPF columnist Michelle Singletary for alerting her many readers, including us, about this teachable moment.)
Technically it wasn’t the bank’s mistake. The 67-year-old Los Angeles woman who was owed the refund in 2010 gave the IRS a number for a bank account she had closed in 2004. That account was later assigned to Stephen Reginald McDow, 34, authorities said. The Orange County Register tells the rest of the story:
The error was discovered months later and McDow was asked to return the money to the rightful owner. Prosecutors say he wrote to the victim’s attorney in March saying he had spent most of it.
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