Page 8 - Banking Finance July 2017

BANK UPDATE

IBA writes to parliament Revised transaction charges by SBI
for Banks not ready for The country's largest bank (SBI) has revised the service charges on many bank-
ing facilities from June 1 as announced earlier. Now all
GST rollout cash withdrawals through ATM by customers of its mo-
As he whole nation is preparing for bile wallet State Bank Buddy will now be charged at Rs
roll-out of GST 25 per transaction.
within next For basic savings banks deposit account, beyond four
one month,the withdrawals in a month the service charges applicable will be Rs 50 plus service
Indian Banks' tax per transaction; Rs 20 plus service tax at other bank ATMs; and Rs 10 plus
Association service tax for SBI's own ATMs. All normal savings bank accounts will continue to
(IBA) has in-
formed a parliamentary panel that get eight free ATM transactions in metros and 10 free transactions in non-
lenders are not yet geared up for metros.
implementation of the new indirect IMPS fund transfer charges through internet banking/ UPI/ IUSSD will be Rs 5
tax regime. "Since the GST will be plus service tax for amounts of up to Rs 1 lakh; Rs 15 plus service tax for above
operational from 1 July 2017, banks Rs 1 lakh and up to Rs 2 lakh; and Rs 25 plus service tax for above Rs 2 lakh and
have to make lot of changes in their up to Rs 5 lakh. Over the counter cash deposit up to Rs 10,000 will attract a
systems and other procedures. The charge of 0.25 % of the value with a minimum of Rs 2 and maximum of Rs 8 plus
preparedness of all banks for imple- service tax.
mentation of GST on 1 July 2017, is a
question mark," as conveyed by the Financial Resolution and Deposit Insurance Bill to deal
IBA to the parliamentary standing with crisis in banks
committee on finance.
To protect the stability and resilience of the financial system, protect public funds
Tie up between Canara and obligations of consumers up to a reasonable limit,
the Union Cabinet approved a proposal Wednesday to in-
Bank and New India As-
troduce the Financial Resolution and Deposit Insurance
surance Company Bill, 2017 that will pave the way to set up a Resolution
Canara Bank and the New India As- Corporation to deal with bankruptcy in banks, insurance
surance Com- companies and financial entities.
pany have en- The proposed law can benefit a large number of retail
tered into a depositors because the Bill not only aims to strengthen and streamline the cur-
corporate rent framework of deposit insurance, but also seeks to decrease the time and
agency ar- costs involved in resolving distressed financial entities.
rangement to improve distribution of
insurance products. The pact allows It seeks to give comfort to consumers of financial service providers during finan-
cial distress, and aims to instill discipline among financial service providers in the
Canara Bank to offer non-life insur-
ance products to its customers across event of a financial crisis by limiting the use of public money to bail out distressed
metros and tier II and III cities entities. This will help in maintaining financial stability in the economy by ensur-
through the bank's extensive net- ing adequate preventive measures, and at the same time provide necessary in-
work of over 6,000 branches. The struments to deal with an event of crisis.
pact also strengthens distribution
network of New India Assurance. As DCB launches Aadhaar based ATM
per the agreement, New India Assur- DCB Bank launched its high-tech ATM in Telengana which
ance will make offer a bouquet of would dispense cash without debit card as the machine veri-
products such as motor, home, fies the customer from the Aadhaar details like the iris and
health, travel, fire, marine, and en- fingerprint. The new ATM can also accet the normal debit
gineering insurance policies via card though. The bank also opened three new branches in
branches of Canara Bank. the state at Mancherial, Mothe and Narsapur.

8 | 2017 | JULY | BANKING FINANCE

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