PRIVATIZATION OF NATIONALIZED BANKS

After burying the vital sectors in the name PPP mode of our country viz. coal, mines, lands, ports, forest and many more, now this government is making a headway in privatizing the consolidating economic pillars of our country Banking and Insurance sectors.

Country’s corporate tycoons and international lords of different companies are now showing immense interest in buying stakes in nationalized banks and insurance companies. Modi’s government is inviting private entities to come and capture the entire Indian market belittling the exact meaning of swadesi. This government is of the view that if private set ups will come up then our country will flourish and will be able to showcase India’s position on global platform in a better way. Government has forgotten the reason behind the nationalization of banks way back in the year 1969

and 1982.

Total number of branches of nationalized banks is now at 75000. And in these branches the amount of hard earned money deposited by our people is 80 lakh crore. Out of these deposited amount 61 lakh crore rupees have been used as advances and loans by the banks. In the fiscal year 2013-2014, the banking institutions had registered a profit of 1, 28,000 crore rupees. But the net profit was pegged at 37000 crore rupees only because those corporates who had taken the loans from banks and not made any repayment towards the advances. In order to write off  these loans huge provisions had been made that is the reason of reduced net profits in the banks.

Instead of blacklisting and probing the wrong doings of these finger countable corporate and private firm owners, the government is interested in promoting these entities to have pie in the BFSI sector. The pace at which this government wants to privatize the nationalized outfits is more as compared to that of the erstwhile UPA government.

CONTACT LESS MULTI CURRENCY FOREX CARD SCHEME

 Axis Bank is India's Third largest private sector lender.

 It launched the first Contact less Debit, Credit and Multi Currency Forex Card in association with VISA the payments gateway company in the country.

 Axis Bank's Contact less cards contain chip and an antenna (based on Radio Frequency) that is designed to make payments quicker, seamless and hassle free.

 The bank will offer a contact less debit/credit cards to its 1.7 Million Premium customers, which also enables withdrawal of 15 currencies via Multi - Currency Forex Facility.

 Once the merchant enters the purchase amount in the contact less POS terminal, then customer simply has to tap the card on the terminal and the payment is processed wirelessly in a secure manner. The customer will alert through SMS and E-mail.

 The use of this card is very easy.

 The symbol  on your card and on such machine will be same. It means you can get benefit of contact less card on that machine.

 This card has a facility that you have to not to enter your password (up to Rs. 2000) at billing counter where contact less terminal is kept. 

 This card benefits you because you have no need to carry more cash.

BANDHAN BANK

Recently, there is a buzz about BANDHAN BANK, Lets know about it:

 Bandhan Bank was set up in 2001 to handle dual objective of poverty alleviation and women empowerment.

 It was previously a Non - Banking Financial Company

(NBFC) butBandhan Bank received its universal banking licence

from Reserve Bank of India.

 The bank rolled out its services on 23rd August, 2015 (Founded).

 The bank started with 501 branches in all most 22 states in India which is highest branches of any private bank on the first day.

 The bank will provide funds to help and develop the Small and Medium Enterprises (SME).

 The saving interest rates have been fixed at 4.25% below Rs. 1,00,000 and 5% above Rs. 1,00,000.

 It is interesting to know that Bandhan was the only micro-finance institution that applied for a banking licence.

 Headquarters is located at Kolkata, West Bengal.

 Slogan of bank is "Aapka Bhala, Sabki Bhalai".

 Incidentally, Bandhan is the first bank to be set up in eastern part of India after Independence.

 MD and CEO of bank is Chandra Shekhar Ghosh.

PAYMENT BANKS VS SMALL FINANCE BANKS

Payment banks can receive deposits and remittances, but cannot lend, focusing on migrant labour and low income households.

Small banks will lend to “unserved and under-served sections”, including small business units, small and marginal farmers, and micro and small industries.

Payment Banks

Objective

Provide small savings accounts and payments /remittance services to migrant labour workforce and low-income households

Small Finance Banks

Financial inclusion and supply of credit to small business units and farmers through high-technology and low-cost operations

Eligible Promoters

Individuals or professionals with necessary experience and eligibility, existing NBFCs, corporate banking correspondents, mobile companies, supermarket chains, real estate co-ops and corporate entities

Resident individuals or professionals with 10 years of experience in banking and finance, companies and societies owned and controlled by residents, existing NBFCs, microfinance institutions and local

area banks owned and controlled by residents

Membership

 Any country can become the member of world bank if 75% of the existing member countries approved the application.

 Any member nation can also resign from its membership voluntarily or if any country violates the rules of the world bank.

Management

 Management of world bank includes - Board of Governors, Board of Executive Directors, Loan Committee, Advisory Committee, President and other members of the staff.

 Board of Governors of the world bank includes one Governor (Finance Minister) and one alternate governor (governor of central bank) appointed by each member country for a term of 5 years. Each governor has voting power in relation to its financial contribution to the capital of the bank. Board is required to meet at least once in a year.

 Executive Directors are 21 and out of this 6 are appointed by the six largest shareholders like USA, UK, Germany, France and Japan. The remaining 15 members are elected by the rest of member countries. It meets once a month to carry on daily routine work.

WORLD BANK

World Bank is an international financial institution that provides loans to developing countries for development programs.

 World Bank was formed on July 1944 at the Bretton Woods Conference.

 Headquarter of World Bank is located at Washington D.C. (U.S.A.)

 The main purpose of the world bank is ''Reduction of Poverty''.

 Current member nations of world bank are 188.

 Now the president of the World Bank is Jim Yong Kim.

 World Bank is comprises of two institutions - International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

 World Bank is member of the United Nations Development Group as well as World Bank Group.

 World Bank Group includes - International Bank for Reconstruction and Development (IBRD), International Development Association, International Finance Corporation, Multilateral Investment Guarantee Agency, International Center for Settlement of Investment Disputes.

 The president of the world bank comes from the largest shareholder. Members are represented by a Board of Governors.

 If a country wants to be a member of world bank, it has to purchase the shares of world bank group institutions as per agreement, rules and regulations set.

 The five largest shareholders are U.S. , U.K. , France, Germany and Japan.

 The largest shareholders nations has their own Executive Directors.

Objectives and Functions of World Bank

 To help in reconstruction and development of member countries.

 Spread peace all over the world regarding financial terms.

 Helps to the economies of those countries destroyed by wars.

 Helps to developing and less developed countries by crediting the finance.