3997iibf vision january 2015

A Monthly Newsletter of Indian Institute of Banking & Finance

Committed toprofessional excellence

(Rs. 40/- per annum)

Volume No. : 7 January 2015Issue No. : 6

"The information / news items contained in this publication have appeared in various external sources / media for public useor consumption and are now meant only for members and subscribers. The views expressed and / or events narrated /stated in the said information / news items are as perceived by the respective sources. IIBF neither holds nor assumes any responsibility for the correctness or adequacy or otherwise of the news items / events or any information whatsoever."

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Top Stories ...............................................1Banking Policies.......................................1Banking Developments ............................3Regulator's Speak....................................4Insurance .................................................5Products & Alliances ................................5New Appointments / Forex ......................6Basel III-Capital Regulations....................6Financial Basics .......................................7Glossary...................................................7Institute's Training Activities .....................7News from the Institute ............................7Market Roundup ......................................8

Banking Policies

Savings A/c for girl childThe government has announced the launch of 'Sukanya Samriddhi Account' a new small savings instrument for the girl child. The instrument will cater to the requirements of education and marriage of the girl child. The account can be opened and operated by the natural or legal guardian of a girl child till she attains the age of 10 years, after which she can herself operate it. The deposits in the account may be made by the guardian or any other person or authority. An account can be opened with `1,000. It will require a minimum deposit of `1,000 and a maximum deposit of `1.5 lakh ina financial year. Interest at the rate, to be notified by the Government, compounded yearly shall be credited to the account till the account completes fourteen years.Debit card for inter-bank fund transfers at ATM centresA customer of a bank can now transfer money from his account to a customer of another bank through his debit card, via an Automated Teller Machine (ATM). Some banks have allowed inter-bank fund transfers through debit cards. A customer has to simply go to the ATM and punch in the amount and the 16-digit debit card number of the person to whom the money is to be transferred. Immediately, the customer's account gets debited and the other person's account linked to the card gets credited. Banks have been trying to reduce the number of consumers' visits to branches, by increasing the number of services available through ATMs. Fund transfers are allowed even through internet channels; but the sender needs to add the receiver as a beneficiary. This later process takes up to 24 hours, unlike an instant card-to-card transfer.

Extension of deadline for exchanging pre-2005 notesRBI has extended the deadline to exchange currency notes printed before 2005 to June 30, 2015. Such notes can be exchanged for their full value and continue to remain legal