Bharat Rakshak

In Technology & Economic Forum,there is no dedicated thread for our vast and fast growing Indian banks and financial system.Current crisis in Global market is the example of our strength and governance in banking and financial sectors.So this thread is meant to news and discuss the Indian banking system as well as financial system.Here we can also discuss the RBI and Indian Government's planning and policies to govern this systems.

Expansion of banking network in the country off-site ATMs without prior approval

A gift to unbanked blocks in country and this will change the banking in Rural India.

Why does ICICI Bank ask for INR10,200 as a minimum deposit for a new savings bank account while govt banks and others demand less?
Can anyone shed some light on RBI guidelines regarding this?

its their business model. They dont want to deal with the poor people who have accounts with only salary of 3-4000 coming into their account and the next day they empty it so as to run their households. The minimum deposit of 10000 is another way of saying only rich are welcome.

RBI has not issued any guideline regarding minimum balance.

http://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=144

They dont mind if it is a salary account, most salary accounts are zero-balance anyway. But yes they dont want very small deposits from individual SB account holders.

Also, ICICI provides a lot more facilities than govt banks, and is ahead in terms of convenience etc. So I think 10k is pretty reasonable. Even SBI has a 'personal banking' branch network where the service is supposed to be better just like private banks, where the minimum balance is 10k.

Unclaimed EPFO money cannot be utilised: Government

Rs 3,837 crore

I am waiting for my 6 lakhs to be refunded to me for the last 6 months.

Govt to raise Rs 12,000 crore from sale of bonds

Govt. borrowing will push the interest rate northward.

How big are big Indian banks in global picture?

'Banks should focus on asset quality, risk mgmt tools'

http://www.ptinews.com/news/194277_-Banks-should-focus-on-asset-quality--risk-mgmt-tools-

Indian banks are little babies…….

Pre-financial meltdown thought process was that large consolidated banks are needed to rule the global financial markets. The new thinking at least from market stability POV, is that it is a bad idea as extra large banks create systemic collapse issues for entire economy.

US has/had largest banks but it also has 9000 independent small banks. In some ways they were a sperm like creature with very large head supported on a extremely long tail. The long tail struggled to stabilize the large head, the thinking now is to reduce the size of head and fatten the size of torso by reducing the length of tail

India needs a couple of extra large international size banks with balance sheet close to 50-75% of Indian GDP to take on the foreign competition and provide highly sophisticated financial products to Indian/foreign corporates. We also need a large fat torso (a couple of dozen large banks ~1-10% of GDP)with long tail consisting of thousands of small banks having small balance sheets working with rural folks.

Consolidation of SBI's subsidiaries would not make SBI balance sheet much bigger than what it is right now. It'll bring management synergy and cost reduction which will save capital that can than be invested in growing. That's why bank employees are against the move.

India's Financial Sector in Current Times, S Guhan Memorial Lecture by YV Reddy, Business Standard, Oct 26, 2009

It is worth reading in full. He asks and answers questions on macro economic management, banking etc etc.

Just one excerpt! -

There are nine such questions he poses and answers