RBI is asked to provide white paper on cash supply

The VP of Syndicate Bank Staff Association, K S Bhat has urged RBI to provide with the white paper with cash supply details. K S Bhat believes that the white paper will help in clearing out confusion pertaining to the demonetization and cash supply to the banks throughout India. RBI is demanded to release the white paper with full details of cash supply. This will help in understanding the cash crunch situation in public sector.

RBI Permits Banks to Put Demonetized Currency at District Chests

To help banks in de-congesting their storage facilities, which are currently overflowing with the demonetized Rs 500 and Rs 1,000 notes, the Reserve Bank of India recently announced that it would be allowing banks to park the old currency at the district level currency chests.

Banks, especially ones which do not have a currency chest, will be allowed to deposit the old currencies in sealed boxes. The value of the deposited notes will be credited to the depositing bank’s current account held with the chest branch.

This facility has also been made available at post offices which are maintaining a current account with the chest branch managing CGV. RBI also mentioned that expenses incurred towards keeping round-the-clock security and towards the remittance of old currency notes to RBI will be paid by it.

RBI Opens another Banking Ombudsman Office

In New Delhi, the RBI (Reserve Bank of India) has opened a 2nd Banking Ombudsman Office because of the increase in the banking network. The 1st office will have jurisdiction over Jammu & Kashmir and Delhi, while the 2nd one will have jurisdiction over Ghaziabad, Haryana (except Panchkula, Ambala and Yamuna Nagar Districts), Gautam Buddha Nagar districts of UP.

RBI's payment system document does not impose uniform fees

While discussing about targeting to encourage cashless payment systems via four tactical steps, RBI's vision 2018 papers fails to levy uniform customer charges and other service charges levied by lenders and dealers. This non-uniformity has of course led to numerous complaints from the users. It is also alleged that banks are utilizing their disarray to pick the pockets of customers in the name of various services. Let us wait and see how RBI will address this issue.

Reserve Bank to expand electronic payment modes

In an attempt to generate best-in-class payment and reimbursement modes towards a cashless economy, RBI introduced a Vision-2018 declaration last week. This envisions appraisal of the National Electronic Funds Transfer (NEFT) system to facilitate quicker fund transactions and processing by launching settlement cycles that are more recurrent. As per the document, with growing acceptance of electronic payments among the masses, mainly those contributing to e-commerce and m-commerce, there is a rising call for quicker online payment services. This will enable easy cash transactions of all kinds for people as well as enterprises. All you need to know is the recipient’s account number and the bank IFSC Code.

RBI Allows Banks to Expand ATM Services

The Reserve Bank of India has given its permission for banks to offer all their banking services and products through ATMs. ATMs are automated teller machines that are used for only basic services that are approved by the RBI which includes withdrawing, balance enquiry, PIN change and deposits. But this will change soon as long as the banks have the technology to extend their services through these machines. ATM innovations are in the process to offer videoconferencing with bankers, along with statement and passbook printers integrated into the ATM. Soon smartphones will be able to interact with the ATMs. Up till now, banks have only offered financial products like loans and credit cards but there is no transaction at the ATM. Soon banks might be able to approve and dispense the loan money at the ATM itself.

Innovations in the banking system will soon revolutionise the way we bank. Banking has stepped into the digital world and social media. In the future, important marks of the Indian Banking system such as IFSC codes and deposit boxes may become outdated and replaced by new and exciting ideas.

Reserve Bank of India to Cut Back NBFCs for Efficient Management

The Reserve Bank of India (RBI) is striving towards harmonizing guidelines for non-banking financial companies (NBFCs) to bring down the number of classifications in the segment, its Deputy Governor, Mr. R. Gandhi. Going ahead, they want to strive towards bigger synchronization of the guidelines to slash the categories within the NBFC sector. The central bank is affiliated to the growing requirements of the economy and hence will go on to approve of new types of NBFCs if the economy needs them. RBI is aggressively reviewing the peer-to-peer advancing arrangements that are gradually attaining traction. NBFC account collectors will deliver technology-aided solutions to an individual. One can also perform online money transfer easily via NEFT and RTGS using IFSC Code to any account.

RBI to Introduce Fresh Vision Document on Payment Structure

The Reserve Bank of India is preparing to appear with a new vision document for the development of payment systems in India as the “payments landscape here is changing and is changing quickly”. RBI is working out the subsequent vision document which will cover what are the evolving initiatives the RBI is expected to encourage the field. RBI Deputy Governor, Mr. R Gandhi said at an event of the National Payments Corporation of India in Delhi. Gandhi said it is of serious significance that the populace in over 6 lacs villages in the nation is exposed to the alternative delivery portals. Some estimations designate that to reach the average levels of BRIC nations, India will require 20 million POS (point of sale) portals as against the present 1.2 million. The propagation of digital channels is obvious typically in the Tier I and Tier II hubs. So as to endorse digital banking networks, IFSC code used, it is obligatory on the ecosystem entailing the banks, network tie-ups and others.

The Reserve Bank of India Receives Applications from 4 Foreign Banks to Set Up Subsidiaries

Foreign banks are vying to establish their presence in India, with the Reserve Bank of India receiving applications from four banks to set up subsidiaries in the country. These applications are currently under processing, with several other banks on the anvil. Mauritius based bank SBM and Singapore’s top bank DBS have already requested regulatory permissions to convert their Indian branches to subsidiaries. Foreign banks requesting for such conversions will be treated just as Indian banks by RBI, with stamp duty benefits, capital gain tax and will also be allowed to procure local private banks. With the Indian industry flooded with a rising number of financial institutions, foreign banks have a tough challenge ahead of them, if they do intend to become a well-established player. Keeping in tune with the pulse of customers, these foreign banks will have to provide innovative banking solutions and state-of-the-art banking technology inclusive of internet banking, social media banking and mobile banking services. The e-banking services should definitely provide bank account management services, payment assistance and money transfers with IFSC codes, etc.