PAYMENT BANK : A BIG LEAP FOR INDIAN BANKING SCENARIO

It is a new dawn to India and its financial market. It's a dream come true for many small and big  players in this arena whose long wait is at last over. Reserve Bank of India at last accorded license  to eleven strong contenders in the country who applied for license for entering in Banking sector. This license given to them is at bit different. This license is given for the first time to function as 'PAYMENT BANK'. The term needs some details clarification towards it's functioning for the common man who many not be aware of the technical term. The major difference between a normal Bank which is termed as 'Universal Bank' and a payment bank is as under:

a) the payment bank may open account without any minimum balance and in the viral world. It will be totally hassle free something like getting a prepaid SIM card.

b) Payment Bank can receive deposits from account holders up to Rs 100000/- 

c) They cannot sanction any loans

d) They are permitted to issue debit card but debarred to issue credit cards.

c) They can function as 'Business Correspondent' of Universal Bank and cover rural area of the country as well as agent for mutual fund and insurance sector of parent Universal Bank.

d) The deposits received from public must be invested in Government Bonds.

e) They are to maintain Cash Reserve Ratio with RBI.

Now, among these eleven players, who have been given license RIL(Reliance Industries Ltd) has already made an agreement with market leader SBI and Kotak Mahindra Bank and has reached with an agreement with Airtel. With the strong workforce of these two Payment Banks SBI and KotakMahindra will definitely spearhead for Financial Inclusions under the central scheme of ' Pradhan Mantri Janadhan Yojana'. The chairman of SBI Ms Arundhuti Bhattacharjee has rightly commented on her action plan. 

Quote 

Our partnership with RIL brings together the strengths of two of India's Fortune 500 cos committed to making an impact on financial inclusion landscape.We see this license is an opportunity to promote financial inclusion by providing banking and transaction service to unbanked, underbanked  and small business.

Unquote 

Among other player biggest is India Post who with its 1.55 lakhs strong branches have the highest presence in rural areas. But they may take more time to come out with full fledged technical back than their rival private players like Vodafone, Airtel , Paytm etc.

Vodafone with its strong thirty thousand plus team members may be waiting to go with any of big Universal Bank like ICICI  Bank or HDFC Bank etc.

So, under this present scenario, probably those small PSU Banks will lose in this rat race because they will initially  not be in a position to coup up with other big players.

INDEPENDENCE DAY 2015

On the eve of our 69 Th INDEPENDENCE DAY I would like share (from alpha to omega ) mixed bag  of memories to my fellow friends of Independent India  during the year we have passed into eternity:

 a) I have seen lynching of my fellow Indian by a group of unruly savage rouges in the state of Nagaland.

b) I have seen rightful citizens of India are forcefully sent to detention camp in the border of the state of Assam 

c) I have persons in the name of Huriyat conference Indian citizen denied his citizenship openly to the electronic media

d) I have seen the extended hand of the Government forcefully implementing the law of food to be taken by our fellow citizen in the state of Maharastra and Hariyana.

e) I have seen nun of 71 years has been heinously raped in the state of West Bengal by a group of rouges.

f) I have seen adult  boys and girls are paraded and compelled to do sit down and stand up process continuously in front moral police without any fault of them at Uttar Pradesh.

g) I have seen married couple are raided and harassed in the hotel by long hand of moral police  of Mumbai

h) I have seen medical admission scam in Madhya Pradesh where chief minister did not care to take action or submit his resignation.

i) I have seen chief minister of the state of Rajasthan happily taken advantage and monetary benefit from a person against whom international Red Corner Notice for arrest has been issued.

j) I have seen clam and unmoved face of government machinery while   hundreds of my fellow farmers in this independent India committing suicide.

k) I have seen logjam in Parliament for almost entire session and Government of India had to go for a loss of Rs 425.00 Crores approximately due of unruly behaviour of our elected representatives.

l) I have seen lights of happiness in the eyes of those people who were living in disputed land for long 68 years are being identified as citizens of two countries.

o) I have seen people like Kailash Satyarthi, Sania Mirza  who brought prizes bouquets for the country. 

Let us celebrate   

LA INDI INDEPENDENT !!!! JOY HIND !!!

MORAL POLICE AND BAN

Government of India has again proved to be poking its nose in private area of citizens. No, I am sorry, this time its netizens. After getting an order from the Honorable Supreme Court to stop all internet channels contains child pornography, over enthusiastic bureaucrats under the Ministry has ordered telecom department to put a blanket ban on 857 adult channels in internet.Thus, they are prohibiting an adult to view the same. So far my poor knowledge goes, viewing of pornography in a private place does not qualify as illegal in India. Any adult person can watch such channels within his/her four walls with disturbing others. Now, one  bureaucrats favoring the ban has opined that, "every thing you do inside the four wall is not legal.You bring a prostitute in your house or you lay with a boy in the bed within four walls are not legal"

My question is why specifically the word 'boy' ? So, if a adult lady sleeps within four wall with a grown up boy is illegal? Or he meant that porno are watched by man only. Recent survey by TOI revealed that women watch pornography more than men in this country.Secondly banning such channels if anyone can give any guarantee that child sex, abusing or molesting of underage person will totally stopped in the country, then this a welcome move. Moreover, the monsters, who sexually abuse children are regularly doing the same on the nose of the Government.This, morning the banning has come into news and at the same time the news of a three years old girl child's molestation has come in the news at Bangalore.So what shield Government want to give?

They have banned the cow/buffalo slaughtering in Maharastra and Haryana. Thus taking away the small business of poor people as well food for some people. Now, they put ban on this, tomorrow on that. This 'Talibanism' will definitely effect the popularity of Government.How long this moral policing will continue? This is totally irrational, irresponsible and ridiculous. Are they putting some cover over Sun temple of Konarak or on sculptures on Ajanta, Elora and Khajuraho?

POST BANK : FINANCIAL INCLUSION

India Post has seriously decided to enter into total payment Banking business as per the requirements under RBI guideline.The Banking business under conventional Postal system where savings Bank accounts are opened for customers will stay back along with some other 7/8 products they offer to public. These will not migrate and will be available in approximately 25000 India Post branches throughout the country.

The new entity will come out shortly which will mainly cater the needs of  large chunk of un-banked population under the banner of 'Financial Inclusion' the dream project the Prime Minister of India. But truly speaking, this so called dream project of Prime Minister is not new.Many of you may be aware or not, this Financial Inclusion was first discussed in 31.07.2005 in a meeting headed by the than deputy governor of RBI under Financial Sector Structure Plan jointly with State Bank of India and the State Bank of India was given the responsibility to start with the Plan of Financial Inclusion. Accordingly, State Bank of India came with an agreement with "A little world" for technical support and with 'Zero Mass Foundation', NGO as its first Pan India Business Correspondent.State Bank of India made an initial State wise survey for  population who are excluded of all Banking facilities and they shortlisted three States to start with the project. Those are undivided erstwhile Andhra Pradesh, Himachal Pradesh and Mizoram of which Mizoram was found lowest average in percentage among this three States where least population are covered under any type of  Banking facilities. 

So, the State Bank of India jointly with A Little World and Zero Mass Foundation opened the Financial Inclusion project first in India at a place called 'Seling' about 21 km from Aizawl, the capital city of Mizoram on 7th November 2006. The author of this blog is proud to be part with this project on the day of opening and after. Thus it is the State Bank of India, and not the Prime Minister of India has first started the Financial Inclusion in the country.

Off course, we must agree that due to appeal from the Prime Minister the project has been boosted up and received more mileage.Now, if India Post enters in the arena fully equipped with technology and with its strong 25000+ branch base in the country, the dream  what State Bank of India authorities saw long back, may achieve full circle.