Wednesday, February 19, 2014

CHECK LIST FOR LOANS FOR BANKERS

CHECK LIST FOR LOANS FOR BANKERS


FOR PERSONAL LOAN
FOR KCC &SCC
FOR HOUSING LOAN
FOR EDUCATION LOAN
FOR CC & VCC
FOR 2 WHEELER & CAR

SELF HELP GROUPS

    SELF HELP GROUP(SHG)


A self-help group (SHG) is a village-based financial intermediary usually composed of 10–20 local women or men. A mixed group is generally not preferred. Most self-help groups are located in India, though SHGs can also be found in other countries, especially in South Asia and Southeast Asia.

Members make small regular savings contributions over a few months until there is enough capital in the group to begin lending. Funds may then be lent back to the members or to others in the village for any purpose. In India, many SHGs are 'linked' to banks for the delivery of microcredit.

Contents 
1 Structure
2 Goals
3 NABARD's 'SHG Bank Linkage' program
4 Advantages of financing through SHGs

A Self-Help Group may be registered or unregistered. It typically comprises a group of micro entrepreneurs having homogenous social and economic backgrounds, all voluntarily coming together to save regular small sums of money, mutually agreeing to contribute to a common fund and to meet their emergency needs on the basis of mutual help. They pool their resources to become financially stable, taking loans from the money collected by that group and by making everybody in that group self-employed. The group members use collective wisdom and peer pressure to ensure proper end-use of credit and timely repayment. This system eliminates the need for collateral and is closely related to that of solidarity lending, widely used by micro finance institutions.[1] To make the book-keeping simple enough to be handled by the members, flat interest rates are used for most loan calculations.
Goals
Self-help groups are started by non-governmental organizations (NGOs) that generally have broad anti-poverty agendas. Self-help groups are seen as instruments for a variety of goals including empowering women, developing leadership abilities among poor people, increasing school enrollments, and improving nutrition and the use of birth control.Financial inter mediation is generally seen more as an entry point to these other goals, rather than as a primary objective.This can hinder their development as sources of village capital, as well as their efforts to aggregate locally controlled pools of capital through federation, as was historically accomplished by credit unions.
NABARD's 'SHG Bank Linkage' program[edit]
Many self-help groups, especially in India, under NABARD's SHG Bank Linkage program, borrow from banks once they have accumulated a base of their own capital and have established a track record of regular repayments.
This model has attracted attention as a possible way of delivering microfinance services to poor populations that have been difficult to reach directly through banks or other institutions. "By aggregating their individual savings into a single deposit, self-help groups minimize the bank's transaction costs and generate an attractive volume of deposits. Through self-help groups the bank can serve small rural depositors while paying them a market rate of interest.
NABARD estimates that there are 2.2 million SHGs in India, representing 33 million members, that have taken loans from banks under its linkage program to date. This does not include SHGs that have not borrowed.[4] "The SHG Banking Linkage Programme since its beginning has been predominant in certain states, showing spatial preferences especially for the southern region – Andhra Pradesh, Tamil Nadu, Kerala and Karnataka. These states accounted for 57 % of the SHG credits linked during the financial year 2005–2006.
Advantages of financing through SHGs

An economically poor individual gains strength as part of a group.
Besides, financing through SHGs reduces transaction costs for both lenders and borrowers.
While lenders have to handle only a single SHG account instead of a large number of small-sized individual accounts, borrowers as part of an SHG cut down expenses on travel

NABARD

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India having headquarters based in Mumbai (Maharashtra)[3] and other branches are all over the country. The Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), set up by the Reserve Bank of India (RBI) under the Chairmanship of Shri B. Sivaraman, conceived and recommended the establishment of the National Bank for Agriculture and Rural Development (NABARD). It was established on 12 July 1982 by a special act by the parliament and its main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non farm sector and completed its 25 years on 12 July 2007.[4] It has been accredited with "matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India". RBI sold its stake in NABARD to the Government of India, which now holds 99% stake.[5] NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.[6]

Contents  [hide] 
1 History
2 Associated with NABARD
3 Role
4 Rural innovation
5 Microfinance and NABARD
6 NABARD a 100 % CSR company
7 References
8 External links
History[edit]

NABARD was established on the recommendations of Shivaraman Committee, (by act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981. It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). It is one of the premier agencies to provide credit in rural areas. Nabard is India's specialised bank.

Associated with NABARD[edit]

International associates of NABARD ranges from World Bank-affiliated organizations to global developmental agencies working in the field of agriculture and rural development. These organizations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimizing the agricultural process. [7]

Role[edit]

NABARD is the apex institution in the country which looks after the development of the cottage industry, small industry and village industry, and other rural industries. NABARD also reaches out to allied economies and supports and promotes integrated development. And to help NABARD discharge its duty, it has been given certain roles as follows:

Serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas
Takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.
Co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation
Undertakes monitoring and evaluation of projects refinanced by it.
NABARD refinances the financial institutions which finances the rural sector.
The institutions which help the rural economy, NABARD helps develop.
NABARD also keeps a check on its client institutes.
It regulates the institution which provides financial help to the rural economy.
It provides training facilities to the institutions working the field of rural upliftment.
It regulates the cooperative banks and the RRB’s, and manages talent acquisition through IBPS CWE.[8]
NABARD's refinance is available to State Co-operative Agriculture and Rural Development Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural Banks (RRBs), Commercial Banks (CBs) and other financial institutions approved by RBI. While the ultimate beneficiaries of investment credit can be individuals, partnership concerns,

Thursday, February 13, 2014

BANKING GROWTH IN INDIA

Banking Sector in India

Last Updated: January 2014

Indian Banking Sector: Brief Introduction
India’s banking sector is currently valued at Rs 81 trillion (US$ 1.31 trillion). It has the potential to become the fifth largest banking industry in the world by 2020 and the third largest by 2025, according to an industry report. The face of Indian banking has changed over the years. Banks are now reaching out to the masses with technology to facilitate greater ease of communication, and transactions are carried out through the Internet and mobile devices.

With the Parliament passing the Banking Laws (Amendment) Bill in 2012, the landscape of the sector will likely change. The bill allows the Reserve Bank of India (RBI) to make final guidelines on issuing new bank licenses. This could lead to a greater number of banks in the country; the style of operation could also evolve with the integration of modern technology into the industry.

Online Banking
IDBI Bank Ltd has started an online Public Provident Fund (PPF) subscription facility for its customers. The bank had already received approval from the government to operationalise PPF transactions through the Internet. The facility would help accomplish the government’s initiative of electronic transactions in banking services, and also provide a strong platform to mobilise funds through the Small Saving Schemes. PPF account holders of the bank will have the benefit of accessing their PPF account online, view account details, print statements, and make subscription to PPF by way of online transfer of funds.

Simple steps such as memorising personal identification number (PIN), bringing down credit limits on cards, using virtual cards for internet transactions and deactivating transactional services linked to a mobile number can limit bank frauds, according to experts. Changing the password regularly can also save an account from fraud attacks.

Online money transfers and money credited directly to an account are the second preferred mode of inward remittances in India, rising to 22 per cent in fiscal 2013 from 14 per cent in 2009, according to an RBI report. "While electronic wires/SWIFT continue to be the dominant mode of transferring remittances by overseas Indians, in the recent period, there has been a significant increase in the share of remittances transmitted through direct transfer to bank accounts and through online mode," the report stated.

Key Statistics
The revenue of Indian banks increased four-fold from US$ 11.8 billion to US$ 46.9 billion in the period 2001–2010. In that phase, the profit after tax rose about nine-fold from US$ 1.4 billion to US$ 12 billion.

Banking Index with the Sensex (Bankex) that tracks the performance of primary banking sector stocks grew at a compounded annual growth rate (CAGR) of nearly 20 per cent over the period 2003–2012.

Total number of onsite and offsite ATMs of Indian Banks reached 100042 in July 2012.

Recent Developments
The central banks of Japan and India have agreed to a proposal that expands the maximum amount of the Bilateral Swap Arrangement (BSA) between the two countries to US $50 billion. The agreement is for a three-year period (2012–15); the previous size of the BSA was US $15 million. The new agreement will enable the two countries to swap their local currencies against the US dollar for an amount up to US$50 billion.

Public sector banks will soon offer customers insurance products from different companies as against products from one company. The finance ministry has asked public sector banks to become insurance brokers instead of corporate agents. This move was one of the steps stated by finance minister Mr P Chidambaram in early 2013, as a way to increase insurance penetration.

Citi has promoted Mr Anand Selvakesari as the head of consumer banking for the Association of Southeast Asian Nations (ASEAN) region. Mr Selvakesari will continue his present role as Citi’s consumer banking business head in India – a post he has occupied since July 2013 – as well as look after the consumer banking operations in Indones

BANKING GROWTH IN INDIA

Banking Sector in India

Last Updated: January 2014

Indian Banking Sector: Brief Introduction
India’s banking sector is currently valued at Rs 81 trillion (US$ 1.31 trillion). It has the potential to become the fifth largest banking industry in the world by 2020 and the third largest by 2025, according to an industry report. The face of Indian banking has changed over the years. Banks are now reaching out to the masses with technology to facilitate greater ease of communication, and transactions are carried out through the Internet and mobile devices.

With the Parliament passing the Banking Laws (Amendment) Bill in 2012, the landscape of the sector will likely change. The bill allows the Reserve Bank of India (RBI) to make final guidelines on issuing new bank licenses. This could lead to a greater number of banks in the country; the style of operation could also evolve with the integration of modern technology into the industry.

Online Banking
IDBI Bank Ltd has started an online Public Provident Fund (PPF) subscription facility for its customers. The bank had already received approval from the government to operationalise PPF transactions through the Internet. The facility would help accomplish the government’s initiative of electronic transactions in banking services, and also provide a strong platform to mobilise funds through the Small Saving Schemes. PPF account holders of the bank will have the benefit of accessing their PPF account online, view account details, print statements, and make subscription to PPF by way of online transfer of funds.

Simple steps such as memorising personal identification number (PIN), bringing down credit limits on cards, using virtual cards for internet transactions and deactivating transactional services linked to a mobile number can limit bank frauds, according to experts. Changing the password regularly can also save an account from fraud attacks.

Online money transfers and money credited directly to an account are the second preferred mode of inward remittances in India, rising to 22 per cent in fiscal 2013 from 14 per cent in 2009, according to an RBI report. "While electronic wires/SWIFT continue to be the dominant mode of transferring remittances by overseas Indians, in the recent period, there has been a significant increase in the share of remittances transmitted through direct transfer to bank accounts and through online mode," the report stated.

Key Statistics
The revenue of Indian banks increased four-fold from US$ 11.8 billion to US$ 46.9 billion in the period 2001–2010. In that phase, the profit after tax rose about nine-fold from US$ 1.4 billion to US$ 12 billion.

Banking Index with the Sensex (Bankex) that tracks the performance of primary banking sector stocks grew at a compounded annual growth rate (CAGR) of nearly 20 per cent over the period 2003–2012.

Total number of onsite and offsite ATMs of Indian Banks reached 100042 in July 2012.

Recent Developments
The central banks of Japan and India have agreed to a proposal that expands the maximum amount of the Bilateral Swap Arrangement (BSA) between the two countries to US $50 billion. The agreement is for a three-year period (2012–15); the previous size of the BSA was US $15 million. The new agreement will enable the two countries to swap their local currencies against the US dollar for an amount up to US$50 billion.

Public sector banks will soon offer customers insurance products from different companies as against products from one company. The finance ministry has asked public sector banks to become insurance brokers instead of corporate agents. This move was one of the steps stated by finance minister Mr P Chidambaram in early 2013, as a way to increase insurance penetration.

Citi has promoted Mr Anand Selvakesari as the head of consumer banking for the Association of Southeast Asian Nations (ASEAN) region. Mr Selvakesari will continue his present role as Citi’s consumer banking business head in India – a post he has occupied since July 2013 – as well as look after the consumer banking operations in Indones