1. LENDING RATE CUTS IS THE KEY TO ECONOMIC RECOVERY:Lending rate cuts are the only way to economic recovery as it would perk up demand and push investments. This is as per one economic survey report. The report said that structural reforms take longer time of 5-10 years to reflect in growth rate. Lending rate cuts would push demand, put idle factories to work and spark off investment.
2. SBI SAYS FINE FROM MINIMUM BALANCE DEFAULTS TO AMOUNT TO Rs 2,000 CRORE: SBI expects to realise over Rs 2,000 crore from Savings Bank account holders as penalty for not maintaining minimum balance in their account. Till June quarter end the Bank has recovered Rs 235 crore. The sum thus collected will be used to partly cover the costs incurred on linking of accounts with Aadhaar which is a very costly affair. Other than this, the cost of maintaining ATMs and business correspondents is also very high.
3. BANKING SECTOR’S CREDIT DEMAND TO GET BOOST FROM GOVERNMENT PROJECTS: State bank of India Chairperson Ms Arundhati Bhattacharya said that the banking industry is poised for a recovery in the credit demand as it stands to gain from the number of projects announced by the government. We just saw the declaration of bullet trains and various other corridors which are expected to come up soon and these projects will give a boost to the credit and investment cycle.
4. NPA RESOLUTION- BANK UNIONS ARE SCEPTICAL OF BANKRUPTCY CODE: Bank unions have claimed the bankruptcy process initiated by various lenders for NPA resolution will not help in bringing the money back. The Union press releasesaid the bankruptcy process is not going to yield desired results in terms of NPA recoveryas the recovery process is going to be very slow and there is no guarantee of banks getting back the entire dues. Banks will incur further loss on account of these accounts.
5. CARD PAYMENTS DRIVE MAY LAND BANKS WITH Rs.3,800 CRORE ANNUAL HOLE: As per a SBI research report, The government’s digital payments push, mainly online card payments through PoS machines may bleed the banks by a whopping Rs 3,800crore annually. The number of PoS terminals post –demonetization has increased from 13.8 lakh in March 2016 to 28.4 lakh as of July 2017.There is a huge cost involved in maintaining these PoS machines and the net loss would be a whopping Rs 3,800 crore annually. (This is all banks put together).
6. ALLAHABAD BANK TO INTRODUCE 2-TIER SAVINGS BANK INTEREST RATE FROM OCTOBER 1st: Following in the footsteps of some of the PSU banks which have already reduced the interest rate on Savings bank deposit, Allahabad Bank is going to introduce 2-tier savings interest rate from October 1st. It will be 3.5% interest for accounts having less than Rs.40 lakhs balance and 4% for accounts having balance of Rs.40 lakh and above.
7. NO COUNTING MACHINES BUT SOPHISTICATED CURRENCY VERIFICATION UNITS BEING USED FOR SCRAPPED NOTES: The Reserve Bank of India is not using counting machines for tallying the scrapped demonetized notes but it is using sophisticated Currency verification and Processing Machines (CVPS) for checking the numerical accuracy and geniuses of currency notes in all its offices.