ATMs being installed in 1.25 lakh post-offices

ATMs being installed in 1.25 lakh post-offices: Jayant Sinha in LS

→ Hitachi keen to partner Postal Department for payments bank: Ravi Shankar Prasad

Work is on to install ATMs and micro ATMs at over 1.25 lakh post offices across the country to help people living in far-flung areas to withdraw money,government said in Lok Sabha.

Responding to some members speaking about difficulties faced by people in distant places, Minister of State for Finance Jayant Sinha said that 'bank mitra', people hired temporarily at branches with inadequate staff, will also be of a big help in this regard.

Replying to a question about vacancies in public sector banks, he said during the Question Hour that all the backlog vacancies are being filled and added that over 60,000 people were recruited against the retirement of 38,000 people.

There were 38,254, 38,170 and 21,500 vacancies of officers in public sector banks in 2013-14, 14-15 and 15-16 respectively and the corresponding recruitment numbers were 35,549, 30,359 and 24,133.

Japan-based Hitachi is keen to partner with Postal Department for payments bank solutions, Communications and IT Minister Ravi Shankar Prasad said.

The President and CEO of IT Systems, Hitachi Ltd, Yutaka Saito,  called on the minister and discussed about the possibility of Hitachi offering its banking solutions in a revenue sharing model to the Postal Department.

"I have heard them, they have already met the Postal Department people. I have asked them to make elaborate presentations. They have come with the idea of revenue sharing model to install the banking solutions in all the post offices in India. We will consider it," Prasad said after the meeting.

"I have asked the Postal Department to work out the details," he added.

Hitachi payment services offer banking solutions related to ATM, point of sale (POS), cash and deposit machines and card management solutions to all leading banks of the country.

"They are very keen to parter with Postal Department for payments bank solutions in the vast network of India's postal operations across the country and in rural areas," Prasad said.

The minister further said what is important is the technical upgradation of rural post offices to make payment bank a success.

"I have assured them that with Digital India opening up in India in a big way, there is enough scope for products, marketing, consumer base and above all innovation," he added.

The Reserve Bank granted in-principle approval to 11 applicants, including Postal Department, in August to set up payments banks.

As per RBI guidelines, payments banks would offer a limited range of products such as demand deposits and remittances. They will not be allowed to undertake lending activities and will initially be restricted to holding a maximum balance of Rs 1 lakh per individual customer.

They will be allowed to issue ATM or debit cards as also other prepaid payment instruments, but not credit cards.

#DepartmentofPost #ATM #PaymentBank #Hitachi  #DigitalIndia

Irregularity worth Rs 278 crore found in Mumbai DCC Bank: Minister

Maharashtra government today admitted in the state Legislative Assembly that irregularity to the tune of Rs 278 crore has taken place in transactions of Mumbai District Central Co-Operative Bank (MDCCB).

Replying to a query raised by Prakash Surve of Shiv Sena and others during the Question Hour regarding irregularities within MDCCB, state Minister for Co-operation, Marketing and Textiles and Public works, Chandrakant Patil informed that District Deputy Registrar Co-operative Societies (Mumbai Suburban West) in its internal report filed in December, 2013, found irregularities in large scale in the banking transactions.

The auditor found irregularities to the tune of Rs 278 crore that included giving bank premises on lease, purchase of land worth Rs 1.23 crore, disbursement of loan and its recovery that accounted for Rs 112.94 crore, computer purchase worth Rs 4.53 cr and waiving off loan of Rs 137.27 crore to Madhya Pradesh Industrial Corporation Ltd.

On receipt of final audit report from Divisional Joint Registrar Cooperative Societies, the government has initiated legal action against the Bank, the minister said.

#MaharashtraDistrictCentralCooperativeBank #MDCCB #Irregularity #Audit

Reworking branch strategy, banks put technology first to serve Digital India

Reworking branch strategy, banks put technology first to serve Digital India

→ We are left with only 12% transactions that are done in branches right now : HDFC Bank

Banks are witnessing a sharp growth in electronic transactions, prompting them to invest in technology rather than spend on new bricks-and-mortar branches.

The top three private banks said that digital channels now account for more than 60% of their total transactions. While conventional transactions grew in single digits in the past two years, the digital channels saw a near doubling of transactions. "We have seen the power of digital impacting branches," Rajeev Sabharwal, ICICI Bank's executive director told in an interview. "Branches are becoming smaller and tech savvy in terms of the number of machines in the branches than in the past. You will find today that branches have fewer employees than in the past but still more transactions being done in the branches," he said.

Nitin Chugh, head-digital banking at HDFC Bank said the bank's transactions through internet and mobile phones have grown to nearly 63% from 44% two years ago. "Now, to that if you add ATM and phone banking, then we are left with only 12% transactions that are done in branches right now, which at some point of time used to be 30%," he said.

In September, ICICI Bank saw transactions worth Rs 7,800 crore via the mobile banking channel, while the figure for HDFC Bank was over Rs 6,900 crore and for Axis Bank it was nearly Rs 5,500 crore. With internet and phone banking becoming the channels of choice for customers, banks are reworking their branch banking strategy and adding recyclers and cash deposit machines, along with setting up e-corners in almost all branches.

"We are focusing on how to automate our branches and make them more digital," said Sabharwal. "Almost all the new branches that we are opening have an e-lobby before you enter the branch. This lobby allows customers to do all transactions on their own before they step in the branch.

All our new branches have a self-service e-lobby," he said. Axis Bank recently set up express branches that are conveniently located in either a mall or office complex to provide 24x7 customer service. The express branches offer facilities for instant cash and cheque deposits, instant account opening and online purchase of insurance and advisory services.

"The percentage of transactions that happen via branches has drastically come down," said Sohini Rajola, head-electronic banking at Axis Bank. However, Rajola said this does not mean an automatic slowdown in branch additions.

"Branch expansion is really necessary, because beyond the top cities we still need branch penetration. Branches are a symbol of trust," she said. Currently, ICICI Bank has more than 4,000 branches, while HDFC Bank has over 4,200 branches and Axis Bank has over 2,700 branches.

#Banks #DigitalBanking #DigitalIndia #PrivateBanks #HDFCBank #ICICIBank #AxisBank