Monthly Archives: January 2014

Oriental Bank of Commerce moved a step forward to make account opening easier for its customers

Oriental Bank of Commerce has made the account opening process easier for its potential customers with the newly introduced Aadhaar based account opening process. This process works on KYC (Know Your Customer) documents and hence the account can be opened without any hassles. The Aadhar card contains almost all the details of the holder and it is recognised as the identity proof for almost all purposes. The private sector banks have already started this KYC service for account opening and hence made the account opening easier for its customers. Oriental Bank of Commerce has now become the first public sector

Life insurance market likely to witness 400 plus new products in the current year

The competition is intensifying in the life insurance sector as both private and public sector entities are coming up with different products to woo their customers. The current year is expected to rope in more than 400 new life insurance products in the market. These products are already approved by Insurance Regulatory and Development Authority (IRDA) and will hit the market anytime this year. The insurance companies have surely made this move to bit the competition but the customer will also benefit a lot from these plans. IRDA had come up with a directive that the life insurance products need

Home loans may take the upward swing as RBI hikes the rates – Home loan market surprised by this move

The home loan market is again heading towards sudden rise in interest rates as Reserve Bank of India has declared the hike in policy rates. This hike is of 25 basis points and may reflect in the home loan interest rates of major home loan providers. The hike in rate by RBI has come as a surprise for most of the home loan providers. The experts speculate a rise in home loan rates following this hike but the home loan giants like HDFC and SBI still deny any immediate rate hike. The hike in rate will directly affect the banks

Old currency notes will soon become paper – Exchange before it really happens

The currency notes are kept in circulation to keep the economy running but RBI has now directed people to exchange their old currency notes soon. The currency notes that fall in pre-2005 group must be exchanged immediately. The Reserve Bank of India has said this in its fresh directive. These old notes will soon be out of circulation and hence the special exchange facility is provided to general public. The large volume of older currency would be withdrawn from circulation as a part of this initiative. Still the exact volume of such currency notes is not known. This withdrawal is

Know more about the Repo rate, SLR and CRR

The repo rate is the known term to many as the rate which governs the interest rate fluctuations. These rates are usually controlled by the Reserve Bank of India as it is the governing bank for the entire credit rate and its supply. RBI decides the cost of borrowing the funds and this cost is charge from the borrower in terms of the interest rate. The tools called CLR, SLR and Repo rate are used to control the economic growth and inflation. The banks depend on RBI for these rates and this is how the whole economy is controlled. You

Banks chosen to sell Axis Bank stake – Government intends to act soon

J M Financial Ltd, J P Morgan Chase & Co. and Citigroup Inc. are the three majors selected by India to support the sell of its Axis Bank Ltd. stake. The government stake amounts to $ 925 million in Axis Bank Ltd and it now intends to sell half of this stake to reduce the fiscal deficit. Government targets to raise funds to reduce the fiscal deficit to 4.8 percent of GDP by March 2014 which was earlier 4.9 percent. The sources reveal that Government has decided to auction half of its 20.7 percent stake from Axis Bank that is

Health insurance companies asked to fix the rates for each ailment

The health insurance sector came out with mixed reviews on the Bombay High Court declaration over fixing up the insurance package for each ailment. As per this directive, the insurance companies may be required to fix up the package rates for each ailment to help the hospitals plan their rates on similar lines. This move was taken with a view that hospitals and insurance companies go on same track of pricing. The health insurance companies usually have tie up with some of the hospitals and the insured may get cashless or full paid treatment there. There are still many charges

The real estate sector can now expect a good time in 2014

The loan rates that were going upwards earlier has now taken a downward trend with the banking majors cutting down their interest rates on home loan. The starting of the year 2014 has been quite beneficial for the real estate sector. The lower interest rates may encourage the home loan buyers to some extent as predicted by the experts. The unsold property for Mumbai is up to 44% and that is highest amongst all major cities of India. This amounts to almost 1,30,000 units unsold against the total of 2,90,000 units under construction. The figures for Delhi NCR are quite

Banks planning to restrict the free ATM transactions to 5 per month

If you like to visit the air-conditioned bank ATMs just like that to inquire balance, withdraw cash or get that mini statement then beware as banks are planning to restrict the free transactions for ATM to 5 per month. The use of ATM is mainly intended by the customers to withdraw cash, inquire balance, transfer funds or get the mini statement. Operating that easily accessible machine anytime anywhere is fun but banks have now requested RBI to limit these transactions to check the misuse of the facility. Till now ATM usage was free and the customers could use their bank’s

Public Sector banks may observe 2 day strike from 20th January, 2014

The banking operations may halt for 2 days from 20th January, 2014 owing to the demands of the PSU bank employees. This strike has been declared by UFBU (United Forum of Banks Unions) and will be supported by major PSU banks. The demands behind this strike mainly consist of certain employee related issues and the wage revision. The strike has been declared after many agitations and demand being raised for more than 14 months now. As per Mr. M V Murali, the national convener of UFBU, their demand for revising the wages by 32% has been ignored by Indian Banks