Base Rate, BPLR increased by SBI
Nation's biggest bank, State Bank of India has increased its base rate and BPLR (Benchmark Prime Lending Rate) by 75 basis point which was kind of expected after RBI's rate hike last week. The SBI bank's base rate or the minimum lending rate is now and the BPLR is now14%. Comparison of Base Rates “The increase in lending rates is in line with the policy rate rise by RBI earlier this month, which was aimed at curbing inflation,” said Managing…
Analysis of RBI Policy
The highlights of the Reserve Bank of India's Monetary Policy Statement for 2011-12 (Apr-Mar): MEASURES * RBI Policy shifts to single rate regime * Operating target of policy to be weighted average call money rate * Hikes Repo Rate 50 bps to with immediate effect * Ups Reverse Repo Rate 50 bps to with immediate effect * Keeps Bank Rate unchanged at * Keeps Cash Reserve Ratio unchanged at * Ups savings bank rate to from with immediate effect…
Can foreign nationals or tourists open banking account in india?
In short, the answer is "YES". Please read on for Can foreign tourists open a bank account in India during their short visit? A. Yes. Foreign tourists during their short visit to India can open a Non-Resident (Ordinary) Rupee (NRO) account (Current / Savings) with any Authorised Dealer bank dealing in foreign exchange. Such account can be opened up to a maximum period of 6 months. What are the documents required for opening such accounts? A. Passports and other valid…
How can NRIs and PIO invest in india?
The following facilities/options are available to the NRIs (Non-Resident Indians) and PIO (Person of Indian Origin) for investments in India. I. Bank Accounts and Deposits a) Non-Resident (External) Rupee (NRE) Accounts (Principal / Interest Repatriable) Savings - The interest rates on NRE Savings deposits shall be at the rate applicable to domestic savings deposits. Currently the interest rate is Term deposits – For 1 year to 3 years, the interest rates on fresh repatriable Non-Resident (External) Rupee (NRE) Term deposits…
Micro Credit or Micro Finance Facility, India
Micro Credit/ Micro Finance Facility : A Lifeline for the Poor 1. What is Micro Credit ? Micro Credit is defined as provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve living standards. Micro Credit Institutions are those which provide these facilities. 2. What are the interest rates applicable ? The reform of the interest rate…
How to encash Cheques in foreign currency?
One of the services rendered by banks as part of their normal banking operations is collection of cheques deposited by their customers, some of which could also be drawn or payable on banks that are outside the country. Such cheques are called foreign currency cheques and, presently, a significant part of these cheques are US-Dollar denominated payable by banks in the United States of America. In the interest of better public awareness, the following FAQs have been prepared for cheques…
What are Gilt Funds in India?
Gilt Funds Gilt funds, as they are conveniently called, are mutual fund schemes floated by asset management companies (AMCs) with exclusive investments in government securities. The schemes are also referred to as mutual funds dedicated exclusively to investments in government securities. Government securities mean and include central government dated securities, state government securities and treasury bills. The gilt funds provide to the investors the safety of investments made in government securities and better returns than direct investments in these securities…
Electronic Clearing Service (ECS), India
What is Electronic Clearing Service (ECS)? Ans : ECS is an electronic mode of payment / receipt for transactions that are repetitive and periodic in nature. ECS is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, etc. Essentially, ECS facilitates bulk transfer of monies from one…
Exchange torned, soiled, mutilated and damaged Banknotes
This FAQ describes how and where to exchange torned, soiled, mutilated and damaged Banknotes What are soiled, mutilated and imperfect banknotes? (i) Soiled banknotes are banknotes, which have become dirty and limp due to excessive use. A single numbered banknote cut into two pieces but on which the number is intact is now treated as soiled banknote. A double numbered banknote cut into two pieces but on which both the numbers are intact is now treated as soiled banknote. (ii)…
Deposit insurance and credit guarantee corporation (DICGC)
Q1 Which banks are insured by the DICGC? Commercial Banks: All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC. Cooperative Banks: All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union…