Page 8 - Banking Finance October 2015

BANK UPDATE

Private agents will sell Atal Pension scheme: FinMin Time for PSU banks to

The Finance Ministry intends to ap- lem is that the channel of distribution transform: PNB Chief
point private agents in order to enrol is limited. So, we need to increase the
more subscribers to the Atal Pension channels of distribution. Bank branches PNB's newly appointed chief Usha
Yojana (APY) which is currently being may not have time to explain APY. So, Ananthasubramanian has said " Time
sold by the banks. Atal Pension is one we will have to go to non-bank channels, will tell whether the appointment of
of three social security schemes (the private entrepreneurs, private individu- private sector executives as head of
other two are Pradhan Mantri Jeevan als, who can be given an attractive com- state-run lenders is successful or not".
Jyoti Bima Yojana or PMJJBY and mission to push the product. Other than She also said, the newly announced
Pradhan Mantri Suraksha Bima Yojana banks, we need to appoint private seven-point plan "Indradhanush' for
or PMSBY) that was launched by Prime agents," he said. revival of PSU banks is the first major
Minister Narendra Modi on May 9, announcement in this regard, as
after an announcement in the Budget. At present, the government pays Rs. against the earlier practice of reforms
120-150 for every new account and in 'bits-and-pieces'.
In an interview Financial Services Sec- subsequently Rs. 100 per account ev-
retary Hasmukh Adhia had said that ery year for persistence as incentive, Axis Bank chosen as a
the life and non-life insurances promotion and development charges
schemes were running fine, but the on the pattern of the earlier social se- trustee bank for NPS
third one had not picked up. APY pro- curity scheme, Swavalamban. How-
vides a minimum guaranteed monthly ever, despite this payment structure The Pension Fund Regulatory and
pension of Rs.1,000, Rs.2,000, Rs and 50 percent contribution by the Development Authority has selected
3,000, Rs 4,000 or Rs 5,000 to people government for subscribers joining be- Axis Bank as the trustee bank for the
in the age group of 18-40 years. fore December 31, the response was National Pension System, a press re-
not encouraging. lease from the regulator said. "The
"Pension is a push product and the prob- Evaluation Committee has found Axis
Bank as the best value bidder". A
Union Bank eyes tie-ups with payments banks Trustee Bank acts as an intermediary
and is responsible for day-to-day flow
Union Bank of India is in talks with some successful payments bank licence appli- of funds and banking facilities in ac-
cants to forge partnerships said CMD Arun Tiwari. "Payments cordance with the guidelines issued
bank would be a facilitator to a part of banking... We have by the Authority under the National
got in touch with nine ( payments bank licensees) and are Pension system.
waiting for their response," he said on the sidelines of the
FIBAC event. Earlier RBI granted in principle approval to 11 Bankers set to deliver on
of the 41 applicants to set up payment banks. It also awarded
RBI's 50 bps call, SBI
licences to entities including the Department of Posts, Reliance Industries and
Vodafone m-pesa. takes lead

India can become a multi-million dollar economy Within couple of hours of rate cut by
the Reserve Bank, country's largest
India has the potential to become a multi-million dollar economy with a per lender SBI slashed its lending rate by
capita income of about $40,000 by 2050, if it manages to 0.40 per cent, while the largest pri-
grow at seven percent annually for the next 30-35 years, a vate sector lender ICICI Bank hinted
World Bank official has said. "If we grow at seven per cent at cutting its base rate by at least 0.25
for 35 years, we will not only be the second largest economy per cent. SBI chairman Arundhati
at that time, but will also be prosperous and people will be Bhattacharya was not present at the
rich enough," said Subhash Chandra Garg, World Bank Ex- customary post-policy press confer-
ecutive Director for Bangladesh, Bhutan, India and Sri Lanka. ence organised by banking industry
lobby grouping IBA, but her bank an-
nounced a 0.40 per cent cut in its
lending rates to 9.30 per cent from
October 5 onward, right afterwards.

8 | 2015 | OCTOBER | BANKING FINANCE

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