RBI increases CRR to 4% for non-scheduled UCBs
From July 12, 2014, non-scheduled Urban Co-operative Banks (UCBs) will have to keep more of their deposits with the central bank as the Reserve Bank of India (RBI) has raised the Cash Reserve Ratio (CRR) for these banks by 100 basis points to 4%. One basis point is equal to one hundredth of a percentage. The step will bring non-scheduled UCBs on par with scheduled primary UCBs. There are around 1,500 non-scheduled UCBs in India. To bring the primary UCBs on equal ground with commercial banks, the central bank slashed the Statutory Liquidity Ratio (SLR) requirement for them by 50 basis points to 22.50%.
- SLR is that portion of a bank’s deposits which the lender needs to keep in the form of gold, government bonds and securities. RBI has slashed the SLR requirement of banks to 22.5%.
- CRR is that part of a bank’s deposits that it needs to maintain with RBI. This money earns no interest. The current CRR level is 4%.
Achook and Agrim commissioned into Indian Coastguard
Two ships ICGS Achook and ICGS Agrim, the fifth and sixth ships in a series of20 fast patrol vessels have been inducted into the Indian Coastguard. These ships are new generation fast patrol vessels fitted with highly developed communication equipment and will be positioned in Mumbai.
These fast petrol vessels are being built at Cochin shipyard which is also building India’s first indigenous aircraft carrier.
Never dispense with your debit/credit card PIN: RBI
Recently, the Reserve Bank of India (RBI) made it compulsory for debit and credit card holders to key in the Personal Identification Number (PIN) while making transactions at retail outlets across the country. While the guideline is followed to curb frauds, cardholders still have a lot of doubt and fear about possible misuse of their cards. Many cases of fraud have happened as many people reveal the recently-obtained PINs, either in good faith or out of ignorance. Earlier, it was easier for fraudsters to create counterfeit cards with magnetic strips, or embed details on stolen cards and misuse them. But now the number of such frauds is likely to decrease as several banks have begun issuing of cards with embedded chips. Besides, if a cardholder enters the wrong PIN three times, the card gets blocked for a day. Banks have also started to provide wireless swiping machines — Electronic Data Capture (EDC) machines.
RBI’s advice to cardholders for a safer transaction:
- While there are no norms against merchants seeking the PIN from customers, it is the right of the customers to key in the PIN themselves.
- Customers should go where the EDC machine is kept and key in the PIN on their own for a safer transaction.
- They should cover the keypad while keying in the PIN, both inside the ATM and while using EDC machines.
- Customers should register their mobile numbers with their banks to get an intimation of the transaction as soon as the card is swiped.
- Customers should keep changing their PIN every 3 months to prevent cyber fraud.
- RBI is also collaborating with various banks to hold electronic bankingawareness and training (e-Baat) programmes.
Tennis French Open: Rafael Nadal clinches men’s title
Spaniard Rafael Nadal maintained his dominance in the French Open as he defeated Serbian Novak Djokovic in the final match. French Open 2014 is Nadal’s 14th career Grand Slam title. World no.1 Nadal also became the first man to win five Roland Garros crowns in a row as he took his record at the tournament to 66 wins against just one defeat. With 14 Grand Slams, Nadal has equaled the mark of Pete Sampras. Now, he is just three behind the all-time record of Roger Federer.
Tennis French Open: Maria Sharapova wins women’s title
Maria Sharapova won French Open women’s title after defeating Simona Halep in the final. It was Sharapova’s second French Open title victory. She has now won five Grand Slam titles, taking her to joint-11th on the Open era list alongside Martina Hingis.
The Russian rallied from a set down three straight times to reach this year’s French Open final and then prevailed in thrilling three-hour finale against rising star Simona Halep, 6-4 6-7 6-4. Halep, 22, might have been playing in her first Grand Slam final but she pushed the 2012 champion to the limit as for the first time since 2001, the French Open women’s final would require a final set.
ICICI Bank leaves behind HDFC Bank as biggest private bank employer
ICICI Bank has overtaken its competitor HDFC in terms of employee number with addition of over 10,000 jobs in the last fiscal. With this, ICICI has emerged as the biggest employer in the private banking space with more than 72,000 employees.
Except HDFC, the employee strength of other five lenders – ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank has increased by over 20,000 in 2013-14. ICICI Bank has also recorded higher total income and profits than HDFC Bank in the latest fiscal year. The number of employees in HDFC Bank was 68,165 at the end of last fiscal, while the same of ICICI Bank expanded by 10,161 to 72,226.
Except HDFC, the employee strength of other five lenders – ICICI Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank has increased by over 20,000 in 2013-14. ICICI Bank has also recorded higher total income and profits than HDFC Bank in the latest fiscal year. The number of employees in HDFC Bank was 68,165 at the end of last fiscal, while the same of ICICI Bank expanded by 10,161 to 72,226.
With the increase in staff strength, the staff expenses have also surged. But, at the same time, the Productivity Ratios – measured in terms of profit per employee and business per employee have also improved for most of these banks. Even for HDFC Bank, regardless of the reduction in its employee strength, profit per employee enhanced from Rs 10 lakh to Rs 12 lakh in 2013-14, while business per employee was up at Rs 8.9 crore (compared to Rs 7.5 crore in 2012-13). For ICICI Bank, profit per employee has remained nearly unchanged at Rs 14 lakh, while business per employee increased slightly to Rs 7.47 crore.
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