This New Year will soon fetch you chocolate brown (inedible) coloured Rs 10 denomination notes.
The New Year for the banking sector began on a chocolaty note.
For banks, the first week of 2018 revolved more around the new currency notes in the market along with State Bank of India (SBI) facing a backlash on the amount it earned from penalties from customers for non-maintenance of minimum balance in the bank accounts. While, Insolvency and Bankruptcy Code (IBC) continued to play its course in the courts.
Rs 10 Chocolate brown currency notes
Beginning with the latest news, this New Year will soon fetch you chocolate brown (inedible) coloured Rs 10 denomination notes after the Reserve Bank of India announcement on Friday.
Here’s a look at the new notes that will soon be available for customers.
Rs 200 notes missing at ATMs
Moreover, the RBI has witnessed existing shortage of the new Rs 200 denomination notes with the public at large. Owing to this, it has asked banks to start dispensing these bright yellow coloured currency notes at ATMs.
However, banks and ATM operators suggest that a shortage of supply, high costs and the time taken to recalibrate ATMs have together resulted in the Rs 200 note being kept away from ATMs.
SBI cuts interest rate
In another new year’s gift, country’s biggest lender, State Bank of India (SBI), slashed base rate or minimum lending rate for existing customers who have taken loans before April 2016.
The base rate reduced from 08.95 percent to 8.65 percent p.a. effective from January 1.
SBI claims to pass on this benefit to nearly 80 lakh customers. It says about 25 percent of its customers are still on base rate.
In another big news, SBI also hinted at a likely reduction in the minimum average balance requirement, which currently is at Rs 3,000 for metros, Rs 2,000 for semi-urban areas and Rs 1,000 for rural areas. It also plans to change the mandate to quarterly balance from monthly requirement.
The public sector bank faced heavy criticism after it earned a whopping Rs 1,771.67 crore as penalty from customers for non-maintenance of monthly average balance in savings accounts during April to November 2017. This is much higher than its second quarter net profit of Rs 1,581.55 crore.
FinMin vs Sebi?
Coming to some regulatory news impacting the corporates and banks very critically.
The finance ministry is not in favour of the market regulator's proposal that listed companies should inform the stock exchanges as soon as they miss payment of monthly instalment on a term loan.
Clean up of Indian Overseas Bank
Indian Overseas Bank with the second highest non-performing assets (NPA) ratio among banks, has decided to clean up the losses by offsetting it through the amount from its share premium. This is one of the rarest occasions from a bank has proposed such a move.
Insolvencyprocess of filing bankruptcy proceedings in 25 cases of the likely 28 non-performing asset (NPA) accounts.