Showing posts with label citibank. Show all posts
Showing posts with label citibank. Show all posts

Friday, August 8, 2014

MP govt to launch financial inclusion drive across state

This will ensure timely payment of wages and other compensation against various government-sponsored welfare schemes



To meet the total financial inclusion programme to be launched by Union government on August 15 this year Madhya Pradesh has geared up to launch its total financial inclusion drive in its all 51 districts. This will ensure timely payment of wages and other compensation against various government-sponsored welfare schemes. 

"The banking service area mapping has been completed in all 51 districts in Madhya Pradesh. The area of operation has been allotted for implementation of total financial inclusion (Sampoorna Vittiya Samavesh) to all banks in all districts has also been completed. Opening of accounts of Head of every household will commence from August 15 in camp mode," a senior government official said.

Every bank will prepare a monthly and quarterly calendar for holding camps in allotted areas and connectivity issue is to be informed to state level bankers committee. "The bank will have rights to shift the business correspondent, who will operate accounts, locations to the village within 5 km radius, where connectivity is available. If there is no connectivity in any of the villages, banks will have to explore to provide satellite connectivity through VSATs for those locations," the official said, adding, Ministry of Finance may be requested to reimburse the cost of the same to banks through the financial inclusion fund.

At least one account for every household in the country is mandatory, for the head of the household. Every household will have access to banking services within 5 km by September 2015 except hilly, tribal, forest and desert areas.

"The idea was floated by state government to provide banking services by bank branches within periphery of five kilometers," the official said. Under the plan Issuance of Rupay Card in accounts is to be encouraged. But the bankers will have to ensure that the card and accounts should not become dormant through motivating account holder to make card transactions.

"An overdraft limit of Rs 5,000 is to be allowed to the account after a reasonable period and after taking into consideration the saving or credit history of account holder," the official said.

Thursday, May 30, 2013

RuPay impact: Banks eye to buy stakes in NPCI

Source : http://www.moneycontrol.com/news/business/rupay-impact-banks-eye-to-buy-stakesncpi-_687351.html
 
Banks are eying to buy stakes in the National Payment Corporation of India, the nodal agency for the first-ever indigenous payment gateway  RuPay, which charges less to banks as compared to two others: Visa and MasterCard. Currently, five more banks (both public and private sectors) are looking to take ownership in the NPCI.

Banks are eying to buy stakes in the National Payment Corporation of India (NPCI), the nodal agency for the first-ever indigenous payment gateway  RuPay , which charges less to banks as compared to other two payment gateways: Visa and MasterCard. Currently, five more banks including Axis Bank , IDBI Bank , Central Bank of India , Standard Chartered Bank and Corporation Bank are looking to take ownership in the NPCI, an industry source familiar with the development told Moneycontrol.com.

NPCI was established in late 2009. In 2010 ten banks including State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC had picked up 10% stake each in the NPCI. Each bank had infused Rs 6 crore to bring in Rs 60 crore in total. The authorized capital has been pegged at Rs 300 crore

Narayana Murthy, former chairman, Infosys Technologies is the present chairman of NPCI as nominated by the Reserve Bank of India. An email sent to NPCI remained unanswered at the time of writing this article.

Moneycontrol.com has learnt that the top management of NPCI is not so keen in expanding its promoters base. It currently wants to focus more in generating business volume. Moreover, the existing banks are not in favour of increasing the number of promoters. Even, they are ready to bring in more capital to the organization.

The proposal is under discussion. We are hopeful to get the nod. If we have a say in their governance, we can also suggest in their product designing. RuPay will gradually emerge as a major payment gateway wherein all banks will subscribe, said a top official from the Central Bank of India.

Another top official from the IDBI Bank confirmed the development adding that the final decision is not yet taken. Emails sent to Axis Bank and Standard Chartered Bank did not elicit any response.

NPCI was incorporated as a section 25 company under the Companies Act. Hence, it is not bound to give any dividend or share of profit to its promoters. Rather, it has the mandate to redeploy any gains back into the business.