Protesting Bankers Including AGM Arrested

Bank staff protests in front of pvt hospital to recover loan-Business Standard-02.06.2015
In an unusual move to recover loan, employees and officials of United Bank of India today staged a protest in front of a prominent super specialty hospital here, demanding repayment of dues worth about Rs 100 crore to the bank.

The protesters were picked up by the police from the spot -- Vikram Hospital -- and later let off.

"Bank employees were picked up and were let off later after warning them. They did not have any permission to stage a protest in front of the hospital," police said.

The bank officials said their Regional Head and Assistant General Managers were picked up by police.

"The hospital has to pay us (bank) a total of Rs 110 crore (towards) loan, they are not paying it. They are also stopping us from holding a peaceful protest in front of hospital demanding repayment," a bank official said.

He said despite giving multiple notices, the hospital was not responding properly.

Clarifying on its part, the hospital termed the bank's action as "unfortunate" saying talks with it were still underway and also the matter was in the court.

"The earlier owners of our hospital had taken loan from United Bank of India. When the new owners came in they had discussed with the bank and asked for restructuring of loan. They had said we will invest and turnaround the hospital and pay back the loan," Vikram Hospital CEO Sudir Pai told reporters here.

He said "The bank had agreed to it then, we had also made some payment, but due to some reasons restructuring is taking time. We are in dialogue with the bank on how to restructure and what is to be done."

"But, all of a sudden last week they said that all outstanding amount should be paid at one time...; while discussions were still on they told us they will stage a protest in front of the hospital and inform public about non-payment of dues," he added.

In a first, China unveils facial-recognition ATM-Times of India

BEIJING: Chinese researchers have successfully developed the first automated teller machine (ATM) with facial recognition technology to reduce the risk of theft, media reports said.

The developers include Tsinghua University and Tzekwan Technology, a Hangzhou firm in eastern China's Zhejiang province that provides security protection for financial transactions. South China Morning Post quoted Chinese official media as saying.

Tzekwan chairman Gu Zikun, an anti-counterfeit technology expert, believes the technology will curb ATM-related crimes. The product has already passed certification and would soon be available for sale.

China currently relies mostly on imported ATM technology, the report said, but the new machine, which combines high-speed banknote handling, improved counterfeit-bill recognition and facial recognition, was wholly Chinese. Gu said the product had passed the authorities certification and would soon be available on the market.

However, it is unclear who will manufacture the ATMs and how it will collect facial data.

The news come a week after the state launched its " Made in China" campaign, which aims to transition the mainland from a manufacturing hub for low-end goods to high-quality products within the next 10 years.

Cash machines using fingerprint authentication have sprung up in countries like Chile and Colombia, though these biometric ATMs have not found favour with some countries like the United States because of privacy concerns and its high cost. These biometrics ATMs are not being used by some countries, such as the United States, because of privacy concerns and its high cost.

The new ATMs are expected to connect with the country's banks and public security networks, which allows only guarantees that only cardholders to withdraw money, even if someone else knows the password.

But opponents to the technology have taken voiced their concerns about privacy and accuracy online. "What happens if someone had plastic surgery to look like someone else," one user asked. "How much will it take to turn my face into Jack Ma's (founder of Ali Baba)? (the founder of Alibaba), questioned another.

http://timesofindia.indiatimes.com/home/science/In-a-first-China-unveils-facial-recognition-ATM/articleshow/47494277.cms

RBI Governor Rajan Asks Banks to Cut Lending Rates: Highlights-NDTV-03.06.2015

Reserve Bank Governor Raghuram Rajan on Tuesday cut the repo lending rate by 25 basis points to 7.25 per cent. The move was widely anticipated given RBI's comfort with consumer price inflation and the marked slowdown in industrial growth. Dr Rajan said banks have started passing on some of the rate cuts by the RBI in the past.

Here are the highlights of what Dr Rajan said:

• Global crude prices are a risk to inflation
• FY16 GDP growth target cut to 7.6% from 7.8%
• Banks have started passing through some of the past rate cuts
• Volatility in external environment can affect inflation
• Volatility in external environment can affect inflation
• Today's policy is neither aggressive nor conservative
• It is a "goldilocks" policy
• Mixed signs of recovery in the economy
• Impact of unseasonal rains moderate so far
• Monsoon delay, firming of crude prices are risks to inflation
• Risks to inflation still remain
• If monsoon is better than forecast, there may be more room for rate cuts
• If government contains inflationary impact, there may be room for more rate cuts
• Biggest uncertainty for inflation is outcome of the monsoon
• Global recovery still slow, getting differentiated across regions
• We think the economy is in recovery, but it is still slow
• Government's response to a poor monsoon is most important factor
• We have done what we could be given the current room
• Monsoon and policy response is biggest factor on RBI's mind
• Have to be on disinflationary path
• We have "erred" a little towards giving impetus to investment
• Banks have to deal with asset quality issues
• Banks have been sitting on asset quality issues
• We want quick clean-up of balance sheets
• We're talking to banks on dealing with bad assets
• Have given relaxations on dealing with bad assets
• Banks have to recognise the problem of bad assets
• Message to banks: Deal with asset quality issues now
• Banks need capital to finance lending
• There are some people who want a weaker rupee, there are some people who want a stronger rupee
• The markets will broadly find the appropriate rate for the rupee
• RBI only intervenes to check volatility in the rupee
• We have accounted for food inflation in our forecast
• Food management measures can help reduce inflation- the government is looking into them
• We have plenty of reserves to deal with the impact of US Fed action
• We still have very weak investment, haven't seen a strong pickup
• The corporate results have been quite weak suggesting that final demand is yet to pick up strongly
• Even with 7.5% growth numbers- how much that includes special factors like excise and subsidies is a question
• Economy is still below potential
• There have been signs that stressed projects are coming down if you look at the numbers it will take some time to clear up
• We want to do what is right to keep inflation under control
• Can't be reckless, we need data to give us more room to move on rates
• RBI's 25 bps rate cut today is the third cut in 2015
• Government bonds yields have come down
• Bond yields are also influenced by international yields
• The RBI is a not a cheerleader, other people in the economy who can play that role (on why there was no 'booster' rate cut on Tuesday)

 

FinMin, RBI set up panel on reducing cash transactions-Business Standard

Apart from checking the flow of unaccounted money, reduction in cash usage is held to improve cost effectiveness for banks

 

To reduce cash transactions in the economy and boost the usage of cards and point of sales (PoS) terminals, the Union finance ministry and Reserve Bank of India (RBI) have set up a committee to look at ways to encourage use of plastic money.

The committee has representatives from National Payments Corporation of  India, State Bank of India and ICICI Bank. It was formed last month.

A source said it would also look at ways to widen the spread of PoS machines and other enabling infrastructure to increase card acceptance. Last year, RBI had said it was mulling whether to link the deployment of PoS machines by a bank to the number of cards being disbursed.

 

RBI data at the end of December 2014 showed 1.05 million PoS machines in the country, whereas there are over 500 mn debit cards and at least 20 mn credit cards. In 2013-14, according to a Boston Consulting Group report, the number of cash transactions in the economy was 26 per cent of the total; cheque transactions were 19 per cent. Another 37 per cent were through ATMs or cash deposit machines. Transfer through ECS systems was three per cent; NEFT/RTGS use was four per cent. PoS accounted for five per cent and transactions through the internet were six per cent.

 

 The eventual aim is to move to a cashless economy. RBI has said it would soon be issuing a discussion paper on this. This ties in with the government’s focus on addressing the issue of undisclosed incomes. It has taken steps to improve the use of credit and debit cards and has put limits on cash transactions. For instance, quoting a PAN (income tax record) number has been made mandatory for any sale or purchase over Rs 1 lakh.

 

 Apart from checking the flow of unaccounted money, reduction in cash usage is held to improve cost effectiveness for banks. “By digitising processes end-to-end, engaging customers on the digital channel for sales and transactions, and collectively working towards eradication of cash, banks can achieve up to a 30 per cent jump in sales productivity, reduce administrative staff by 10-15 per cent and improve back-office staff productivity by 20 per cent,” said the BCG report.

 

http://www.business-standard.com/article/economy-policy/finmin-rbi-set-up-panel-on-reducing-cash-transactions-115052501192_1.html