IDFC Bank using micro-ATMs to make inroads into un-banked areas

As a recent entrant to the world of universal banking, IDFC Bank is trying to change the vocabulary that one associates with the physical reach of the banking industry.Given the advantages that incumbent players have in terms of branch network, it knows that replicating that will take time and cost money. So, if it has to reach the top, IDFC Bank cannot get there by doing more of the same but has to find a new way to drive its costs lower while expanding its distribution and acquiring more customers.

Rajiv Lall, the bank’s founder MD and CEO, says that the bank’s customer acquisition and servicing strategy has to be branch agnostic. He says it is not the number of bran1559-real-estateches that matter but the points of presence that matter, and these can be anything — a kirana store with a micro-ATM, a business correspondent outlet or a branch.

Eventually, of course, these points of presence may not be necessary as customers become more sophisticated and connect digitally — through internet or an app on the smartphone. IDFC Bank knows that in rural areas, that would take a little longer. For now, the emphasis is on getting rural customers to come on board.


IT spending in banking, securities to reach $7.8 bn in 2017

IT spending by banking and securities firms in India will reach USD 7.8 billion in 2017, an 8.6 per cent rise from 2016, says Gartner Inc.

This forecast provides total enterprise IT spending for internal spending and spending on data center, devices, software, IT services and telecom services, Information technology research and advisory company Gartner said.

IT services and software will both be the fastest growing segments at 12.6 per cent in 2017, as firms in the banking and securities industry invest more in applications and business processes, specifically in business process outsourcing (BPO). “The focus is on integrating the digital framework firmly into the banking and securities industry in India,” it said in a statement

“The banking and securities industry is increasingly working towards investing in core banking solutions to transform the legacy systems. Additionally, we are also seeing a lot of investment from the banks to leverage digital technologies to enhance the customer facing platforms,” Principal Research analyst at Gartner, Moutusi Sau said.

The Gartner report, “Forecast: Enterprise IT Spending for the Banking and Securities Market, Worldwide, 2014-2020, 3Q16 Update,” provides information on total enterprise IT spending, including internal spending and multiple lines of detail surrounding spending on data center, devices, software, IT services and telecom services for 43 countries within 11 regions.

Source: Business line

India Post Payments Bank is working on striking synergies with the Post office Savings Bank

The india Post Payments Bank is working on striking synergies with the Post office Savings Bank of the Department of Posts to make sure that its customers don’t look elsewhere for parking deposits exceeding ₹1 lakh.

In view of the regulatory restriction that a payments bank will hold a most balance of ₹1lakh per individual client, the india Post Payments Bank (IPPB) is progressing to create a mechanism whereby balances over this limit get mechanically transferred to the Post office Savings Bank (POSB). during this regard, the IPPB is closely examining a clause within the reserve bank of India’s payments bank pointers whereby it will accept an  of cash to be remitted to variety of accounts provided at the tip of the day the balance doesn’t exceed ₹1 hundred thousand.

The IPPB and the POSB apparently need to make sure that as way as possible the customer’s cash stays within the government-owned postal system. So, a client opening a savings bank account with IPPB are given the option to also open a linked POSB account. The IPPB has been set up under the Department of Posts (DoP) as a public limited company wholly owned by the govt. of india. The DoP received ‘in-principle’ rbi approval to set up payments bank in August 2015.

The POSB currently offers investment options, including savings bank account, recurring deposit account, time deposit, monthly income theme, senior voters savings theme, and public provident fund, to small investors. These services ar offered as an agency service for the Finance Ministry.

As per rbi pointers, payments banks will settle for demand deposits — current deposits and savings bank deposits from people, tiny businesses and alternative entities. {they will|they will|they’ll} neither settle for mounted deposits and NRI deposits nor can they furnish loans.


New ‘benami’ Act to take effect from Nov. 1

The Benami Transactions (Prohibition) change Act can get force on All Saints’ Day, 2016, the Central Board of Direct Taxes aforementioned on weekday.

Following this, the present Benami Transactions (Prohibition) Act are going to be renamed because the Prohibition of Benami Property Transactions Act (PBPT Act).

“The PBPT Act defines benami transactions, prohibits them and additional provides that violation of the PBPT Act is punishable with imprisonment and fine,” the official notification aforementioned. “The PBPT Act prohibits recovery of the property command benami from benamidar by the important owner. Properties command benami area unit chargeable for arrogation by the govt while not payment of compensation.”

According to the new law, folks caught with ‘benami’ properties may dish up to seven years of rigorous imprisonment and got to pay a big fine. to boot, the properties are going to be taken over. underneath the Act, a dealing is called ‘benami’ if property is command by one person, however has been provided or purchased by another person.

A person may additionally face rigorous imprisonment for up to 5 years for wittingly giving false data and can got to pay a fine of up to ten per cent of the market price of the property.

Source : BusinessLine