Page 9 - Banking Finance June 2017

BANK UPDATE

NABARD targets for Rs. 10,000-cr biz in Telangana
Banks to accept soiled &
The National Bank for Agriculture and Rural Development (NABARD) has set a
scribbled notes: RBI target to do a business of over Rs. 10,000 crore in Telangana.
RBI comes up with a circular stating The Bank has done a business of Rs. 9,266 crore in 2016-17,
that that the highest for the bank in the State. This was 16.12 % more
the banks than the previous year's figure.
cannot The regional office has so far sanctioned Rs. 3,145 crore (Rs.
refuse to 1,384 crores disbursed already) to the State government for
accept the Mission Bhagiratha which aims to provide drinking wa-
scribbled ter to all the habitations in the State.
or faded notes. The Central Bank
mentioned that these notes have to Marriage allowance and Special Leave for SBI employees
be treated as "soiled notes" and dealt The State Bank of India has come up with the marriage allowance and a seven
with as per the RBI's "Clean Note days' leave for first time marriage of its employees during
Policy". the entire career. The marriage allowance seems to be
The circular to banks was sent by the only for bachelor and there is a monetary ceiling.
RBI after receiving complaints from A plain reading of the circular gives an impression that it
the public that many branches are may be gender discriminatory. Perhaps that will be ad-
not accepting banknotes, specifically dressed soon with a clarification whether the term bach-
in the denomination of Rs 500 and Rs elor includes spinsters too.
2,000 with anything written on them As per the circular, all award staff (not officers) will be
or where they are smudged with eligible for a maximum of Rs.3,000, while those in the Junior Management Grade
colour or faded due to washing. (Scale I), Middle Management Grade (Scale II and III) and Senior Management
Grade (Scale IV and V) can get up to Rs.5,000. Those in the Top Executive Grade
Full Balance paid by
(Scale VI and VII) and TEG (Scale I and II) are eligible for Rs.7,500 and Rs.10,000,
78% of credit card users respectively.

: Survey ADB developing the hub for South Asia at Delhi
A survey of 1,100 people, commis- The Asian Development Bank (ADB) aims to develop New Delhi as a regional
sioned by a hub for its South Asia operations to stimulate decision
credit infor- making and curtail time lag in project implementation..
mation com- "I would strongly urge the Bank to set up a regional hub
pany found in New Delhi for South Asia region so that a majority of
that as high as 78% of credit card us- the proposals could be processed there speedily.
ers pay off their full balance. It was Such hubs could be established in other regions too," Finance Minister Mr. Arun
also found that 13 % customers pay Jaitley mentioned in his speech. "We have already started out-posting staff for
more than minimum payment due
private sector operations and also for procurement. We have already started
but not the full balance. This included
working on the idea of a hub, but we have not announced this is a hub, but we
6 % who said they pay much more are out-posting more people," ADB President Mr. Takehiko Nakao said. In his
than the minimum balance and 7 % closing address, Nakao emphasized that ADB would be continuing to pursue
who said they pay slightly more than reforms in order to improve receptivity and to integrate the procedures.
the minimum required. Transunion
Cibil said 90 % of the respondents are Forensic Audit of defaulters
aware that non-payment can ad- The Government and the RBI are about to finalize few
versely impact their credit histories, changes in rules to curtail the size of bad loans in the bank-
but those in the 18-25 age bracket ing sector. According to sources the state-owned Banks
are less aware than the ones over have been asked to conduct a forensic audit of top 50 loan
35years of age. defaulters and separate genuine cases of business failure.

BANKING FINANCE | JUNE | 2017 | 9

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