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Monday, October 27, 2014

Centre scraps 9 names listed by UPA to head PSU banks

Amid allegations of widespread irregularities, the government on Monday scrapped two panels of candidates for top jobs in public sector banks that was finalized towards the end of UPA regime. It will now launch a fresh exercise to appoint eight bank chiefs (nine candidates had been shortlisted, with one person earmarked against a future vacancy) and 14 executive directors. 

Several top state-run banks including Bank of Baroda and Canara Bank have been without a full-time chairman and managing director and Punjab National Bank joined the list on Monday with KR Kamath's term coming to an end. Sources said that the appointments are expected to be finalized over the next few weeks. 

New rule to pick PSU bank heads

The government today scrapped the selection process of public sector bank heads after a high-level panel found irregularities in the exercise by the previous UPA government.

The probe into the selections to banks such as Bank of Baroda and Canara Bank was initiated following the arrest and termination of the tenure of Syndicate Bank chairman S.K. Jain in August for alleged graft.

A finance ministry statement said the future vacancies of chairman and managing directors (CMDs) as well as executive directors of PSU banks would now be filled through a new selection process.

Wednesday, October 22, 2014

RBI asks banks to partially freeze KYC non-compliant accounts

Customers, who have not complied with KYC requirements despite repeated reminders, may face trouble with RBI today asking banks to partially freeze and subsequently close such accounts.

"As regards non-compliance of KYC ( Know Your Customer) requirements by the customers despite repeated reminders by banks, it has been decided that banks should impose 'partial freezing' on such KYC non-compliant in a phased manner," the Reserve Bank said in a notification.

RBI revises rules on reporting of bad loans

The Reserve Bank of India issued new guidelines on Tuesday on the reporting of bad debt and the working of the Joint Lenders' Forum (JLF).

It said banks will be permitted to report their SMA-2 (Special Mention Accounts) and JLF formations on a weekly basis, at the close of business on every Friday. If a holiday, banks will have to report the details on the next working day.

Monday, October 20, 2014

Monday, September 15, 2014

General insurance wage talks ; many ready to join New Pension Scheme

Ahead of the second round of wage negotiations beginning tomorrow in New Delhi, state-owned general insurers have written to the government expressing the readiness of a section of their employees to join the new pension scheme which they had rejected twice in the past.

"We have written to the government on the NPS issue, and sought its approval," New India Assurance Chairman-cum Managing Director G Srinivasan, who is also the Chairman of the General Insurance (Public Sector) Association (GIPSA), which is holding the wage talks, told PTI.

The four public sector non-life insurers have around 70,000 employees, of which around 50,000 had already moved on to the New Pension Scheme (NPS).
Around 20,000 employees, working at the four state-owned general insurance firms, will be benefited in case the third option of pension is offered to them as they did not opt for it when the second pension scheme was offered to them falling in line with the banking industry in 2008, he said.
The Monday's wage negotiations will be the second round on the issue, as the first round had already taken place earlier during the year.
All the heads of the four state-owned general insurance companies are likely to attend the meeting which will be held by the GIPSA.

The unions are seeking a hefty 40 per cent hike in net salary and if allowed it will benefit 70,000 employees.
"Majority employees of PSU general insurance firms had not opted for it when the option for pension was offered to them for two times in past as the interest rate on deposit was comparatively high with the banks those days," Bharatiya Veema Karamachari Sena (BVKS) general secretary Prasad Samant said.
"In fact, when the new pension option was offered to us for the second time, we were not given enough time to give our consent and hence a majority of us opted out and hence we want it now," BVKS working president Amrish Sinha said.

Courtesy: Economic Times _ 14092014

Wednesday, September 10, 2014

Performance-link incentives for bank staff under PMJHY likely

The government may offer performance based incentives to banks under the Jan Dhan Yojana which will depend on parameters like the number of accounts opened, the number of households covered, camps conducted and house to house surveys being done by the bank staff.

Industry lobby group Indian Banks' Association (IBA) is engaged in giving a broad outline and conceptualising the incentive scheme. Bankers said that it is the government which will take the final call.

The Pradhan Mantri Jan Dhan Yojana announced by Prime Minister Narendra Modi on August 15 and was launched on August 28 envisages access to banking services to all the un-banked individuals in India. Under this scheme, 75 million people would be provided with a bank account and overdraftfacility of Rs 2000.

Further, they would be provided with a RuPay debit card and Rs 1 lakh accident insurance cover. Those opening an account before January 26, 2015 will also be entitled to avail of a life insurance cover of Rs 30,000.

Courtesy: Business Standard