India's economic growth rate in 2012-13 pegged lowest in a decade CSO

 

 

                                    

India's economic growth rate this fiscal is estimated to be sharply lower at 5%, lowest in a decade, on account of poor performance of manufacturing, agriculture and services sector.

This estimate by CSO is drastically lower than what has been projected thus far by the government and RBI.
"The growth in GDP (Gross Domestic Product) during 2012-13 is estimated at 5% as compared to a growth rate of 6.2% in 2011-12," according to the Advanced Estimates released today by the Central Statistical Organisation (CSO).
In 2002-03, the GDP had grown at 4%. Since then the Indian economy has been expanding at over 6%, the highest rate being 9.6% in 2006-07.
CSO's advance estimate lowered the growth in agriculture and allied activities to 1.8% in 2012-13, compared to 3.6% 2011-12.
Manufacturing growth is also expected to drop to 1.9% in this fiscal, from 2.7% last year.
The CSO's GDP growth projection is a lower than the 5.5% forecast made by the Reserve Bank in its quarterly monetary policy review last week.
In its mid-year Economic Review, the government had also estimated growth ranging from 5.7-5.9%. The current estimate is a sharply lower than the 7.6% growth projection for 2012-13 made by government in Budget.
The latest estimate of 5% for the entire fiscal means that the pace of economic expansion has slowed sharply in the second half of 2012-13, given that GDP growth in the April-September period stood at 5.4%.
According to the advance estimates, the services sector including finance, insurance, real estate and business services sectors are likely to grow by 8.6% this fiscal, against 11.7% last fiscal.
However the growth in the mining and quarrying is likely be slightly better at 0.4%, compared to contraction of growth of 0.6% a year ago.
Growth in construction is also likely to be 5.9% in 2012-13, against 5.6% last year.
According to the CSO's advance estimates, growth in electricity, gas and water production is likely to decline to 4.9% in 2012-13, from 6.5% in 2011-12.
During the current fiscal, the trade, hotel, transport and communication sectors are projected to grow by 5.2%, as against 7% last fiscal.
Community social and personal services growth however would be slightly better at 6.8%, compared to 6% in previous fiscal.
Overall, the 5% growth in the advanced estimates is lower than what experts have been forecasting.
Yesterday, the International Monetary Fund (IMF) had said that the Indian economy would grow by 5.4% in 2012-13, but should pick up to 6% in next fiscal.
The Indian economy had expanded by 8.4% in both 2010-11 and 2009-10, while growth in 2008-09 was 6.7%.
The advance GDP estimates are released by the CSO before the end of a financial year to enable the government to formulate various estimates for inclusion in the Budget            

IMPS (Inter- bank Mobile Payment Service)

An IMPS is the 24*7 instant fund transfer system through mobile phones. This service allow you to book railway, cinema tickets and mobile recharges etc .There are two types of IMPS system


1) P2P (Person to Person)


2) P2M (person to Merchant)


How does the P2P and P2M works?


Register your mobile number with the bank and get a seven digit Mobile Money IdentifierOr MMID number. Customer can use this MMID number to make transaction through mobile phones.


1) P2P (Person to Person) 

                              To send or initiate mobile payment service trough SMS or Mobile app  you need to know the MMID and M pin


2) P2M (Person to Merchant)

 There are two ways in P2M transaction works. Customer Initiated transactions (P2M push) Merchant initiated transactions (P2M pull). In P2M push transactions like paying insurance premium, mobile recharges, pizza order etc. P2m pull transactions are the transaction trough mobile apps.

What is Cheque Truncation System

Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques.

Of late you must have noticed advertisements in newspapers put up by banks urging account holders to stop circulating non-CTS compliant cheques and replace their old cheque books with new CTS enabled ones.

Some banks also created awareness through various modes of communication like SMS alerts, letters, display boards in branches and ATMs, pop-up messages in internet banking and notification on website. All this is because we are moving from an old format to a new format of cheque clearance in India.

Beginning 1st April 13, Cheque Truncation System (CTS) would be implemented, whereby the flow of the physical movement of the cheque will be eliminated in the cheque clearing process. Instead, an electronic image of the cheque will be sent along with relevant information.

While the existing cheque standard was supposed to be phased out from circulation beginning 2013, the Reserve Bank of India (RBI) extended the deadline to 31st March 13 based on representations by some banks as they needed more time to set up the systems.

The shift from the old system to the new cheque format essentially means that if you have given any post-dated cheques to your banks for loan EMIs you will have to replace them with new cheque leaves. And if you hold any post-dated cheques beyond 31st March you will have to arrange to get it replaced with a new Cheque Truncation System cheque.

CTS is an efficient way of clearing cheques. It is in fact, better than the existing method. This article attempts to explain CTS and its benefits both to account holders as well as banks.

What is a Cheque Truncation System?

Cheque Truncation System (CTS) is a cheque clearing system undertaken by the Reserve Bank of India (RBI) for faster clearing of cheques. As the name suggests, truncation is the process of stopping the flow of the physical cheque in its way of clearing. In its place an electronic image of the cheque is transmitted with key important data.

Cheque truncation thus obviates the need to move physical instruments across branches. This effectively eliminates the associated cost of movement of physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing. It is a system which is practised worldwide in the banking sector.

Cheque Truncation System (CTS) was introduced and implemented in the National Capital Region (NCR) in February ’08 on a pilot basis. The number 2010 in 'CTS-2010' is because the guidelines for Cheque Truncation System came up in the year 2010.

Why CTS?

In India, the RBI has made available inter-bank and customer payments online in near-real time in the form of RTGS and NEFT. However, cheques still remain a prominent mode of payment in the country. Physical cheques still account for 75% to 80% of all transactions.

So, the RBI has decided to focus on improving efficiency of the cheque clearing cycle. Thus, offering CTS is an alternative. CTS also reduces operational risks in banking operations as clearing is a highly fraud-prone operation. This explains CTS from the regulators’ perspective.

Benefits to Account Holders

Since there is no physical movement of cheques, there is no fear of loss of cheque in transit. Usage of CTS cheques also means quicker clearance, shorter clearing cycle and speedier credit of the amount to your account. Depending on whether the cheque is local or outstation, the cheque can get cleared on the same day or within 24 hours.

The biggest advantage is that CTS-compliant cheques are more secure than old cheques and, hence, less prone to frauds. Also, as the system matures, it is proposed to integrate multiple locations and reduce geographical restrictions in cheque clearing.

Hence, there are chances of multi-city cheques getting cleared on the same day, going forward.

For banks the benefits from CTS could be summarized as follows:

• Shorter clearing cycle
• Superior verification and reconciliation process
• No geographical restrictions as to jurisdiction
• Operational efficiency for banks and customers alike
• Reduction in operational risk and risks associated with paper clearing

Also, to reiterate, scope for frauds are minimum under the CTS regime, which is good for banks. In addition to this, obviating the need to move physical cheques is extremely beneficial in terms of saving cost and time for banks. Certain benchmarks across the country have been prescribed like quality of paper, watermark, bank’s logo in invisible ink, void pantograph, etc, and standardization of field placements on cheques. This will achieve standardization of cheques issued by banks.

TMB Recruitment of Asst. Managers 2012-13

 

 

Opening date for Registering Online E-application: Jan 30, 2013.

 

Closing date for Registering Online E-application: Feb 20, 2013.

 

Create an user id in TMB job portal first, then submit your resume and then finally Apply Online.

 

Qualification:

A Post Graduate degree holder in Commerce / Business Administration / Mathematics with First Class from a recognized University in regular college course with knowledge in Computer Operations.

Note: Both graduation & Post graduation should have been in regular college course and scored 60% and above marks in both the courses. In the case of SC/ST candidates’ minimum marks is 55% in both courses.

Age:

Maximum: 26 years as on Dec 31, 2012.
Relaxation for MBC / BC will be 2 years. Relaxation for SC / ST / Physically Handicapped will be 5 years.

Cut Off Date of Birth:

• For General: Date of Birth on or after - Jan. 01, 1987
• For MBC / BC: Date of Birth on or after - Jan. 01, 1985
• For SC / ST / PH: Date of Birth on or after - Jan. 01, 1982

Fee:

 

Candidates will have to pay a fee of Rs. 500.00 by way of crossed demand draft drawn in favour of Tamilnad Mercantile Bank Ltd. Payable at Thoothukudi / Tuticorin or Tirunelveli.

 

Procedure for selection:

The candidates should appear for an ONLINE Objective Type Examination. The date, Time and Venue of Online Test will be communicated to the eligible candidates individually by post/email. After evaluation, on the basis of the Online Test, candidates will be short listed for a personal interview in the order of merit.

 

Probationary Period:

Selected candidates will be on Probation for a period of one year. At the end of the probationary period they will be subjected to an internal screening process to evaluate their performance before being confirmed in service.

 

Cadre, Pay and allowances:

 

Selected candidates shall be posted in Assistant Manager (Scale-I) cadre. They will be fixed in the following pay scale with applicable DA:
14500 - 600/7 - 18700 - 700/2 - 20100 - 800/8 - 26500
The emoluments during the period of probation will be Basic Pay of Rs. 14,500/- plus applicable DA (At present Rs. 11,092/-) and other perquisites like reimbursement of house rent, fuel, entertainment, canteen, newspaper etc as applicable to the Scale-I officers.
In addition, he/she will be eligible for facilities like Gratuity, Pension, Leave Encashment, and Leave Fare Concession for self & dependent family members, Hospitalization Expenses for self & dependent family members, group insurance etc. as applicable under Bank's rules.
 

Submission of Hard Copy:

The applied candidates should submit a hard copy of the E-application which is printed after online registration and it should be accompanied by the following documents:

• Demand Draft.
• One recent passport size color photograph should be affixed on the Hard Copy of e-Application and the e-Application should be signed.
• Age Proof (Self attested Photo Copy of SSLC or Higher Secondary Mark Sheet or recent Transfer Certificate).
• Self attested Photo Copy of both degree Certificates or Provisional Certificates and SSLC, Higher Secondary & Consolidated Degree Mark Sheets.
• Proof for both degree completed in regular college course. (Any certificates received from the college. i.e. College name printed in degree certificate / mark sheet, Transfer Certificate, Conduct / Character certificate etc.

The printed hard copy of the e-Application along with the enclosures stated above should reach us within 5 days from the date of Online eApplication registration and in any case not later than Feb 25, 2013.

The cover containing printed e-Application should be super scribed as "Application for Recruitment of Asst. Managers 2012-13" and should be sent within 5 days from the date of online e-application filing but not later than Feb 25, 2013 to:

The General Manager,
Human Resources Development Department,
Tamilnad Mercantile Bank Ltd.
Head Office, # 57, V. E. Road,
Thoothukudi 628 002.

How to Apply for this Job Online:

• First you need to register on our servers and get a user id with password.
• After registering, login with the user id and password as selected by you. You must login with your user id and password to apply for this job.
• After login, you need to upload your complete resume on the server (if you have already uploaded your resume, skip this step).
• Once the complete resume is updated on the server, please visit this page again and you will see the option "Click Here to Apply for this job online". If you still do not see this link, you can try to re-load / re-fresh this page from the server. Please remember this option will be accessible only after you login with your user id and password.

 

FM expects 4- 5 firms to get new banking licences

 

Amid a debate on whether or not industrial houses should be allowed in the banking space, Finance Minister P Chidambaram has said he does not see anything wrong in companies getting banking licences, subject to final Reserve Bank of India ( RBI) guidelines, which should be issued in two weeks. The licences would be given to four-five companies after the guidelines, he hopes. In an interview to Reuters TV, he said: “If the guidelines are formed and transparently spelt out, and if a company satisfies those, I don’t see why it should not be given a licence.”He, however, made it clear he didn’t know if the final guidelines were not going to permit industrial houses, or any specific company, in the banking sector. “Whether or not a company or any kind of company will be excluded, I cannot say... RBI has drawn up draft guidelines, which say more licences will be given to the private sector... the governor told me he will give out guidelines in two weeks.”In this interview, and the one with the Financial Times, Chidambaram said: “We expect four to five licences will be granted.”This would be the first time since 2004 that RBI will be issuing licences to new players. Chidambaram’s comments are significant, especially in the light of prominent voices against inclusion of industrial houses in the banking space. Notably, many economists and institutions, including Nobel laureate Joseph Stiglitz and the International Monetary Fund, have cautioned India on this. Former RBI governor, Y V Reddy, too, has advised careful weighing of risks vis-a-vis benefits before such a step. In its draft guidelines, issued in August 2011, RBI had suggested firms could be allowed entry in banking, but with stringent conditions. It proposed diversified ownership, sound credentials and a successful track record of ten years among main conditions. Besides, those with more than 10 per cent of assets or income from real estate or brokerage business were proposed to be excluded from entering the space. However, the finance ministry had wanted it to remove a clause in its final guidelines that did not allow promoters with real estate and stock broking businesses to apply for the licenses.

Indian Rupee at Over 3-Month High

 

 

Indian rupee rose to its highest level in more than three months against the U.S. dollar Wednesday, tracking strong gains in the euro.

At 1005 GMT, the dollar was trading at 53.37 rupees, after falling to 53.35 rupees--a level not seen since Oct. 23. The dollar was at 53.76 in late Asian trade Tuesday.
The euro touched a fresh 13-month high of $1.35367 Wednesday.
The rupee benefited also from hopes of more monetary-policy easing by the central bank in 2013 to help boost economic growth which has slowed to its weakest in nearly a decade.
Tuesday, the Reserve Bank of India trimmed its key lending rate by a quarter-percentage point to 7.75%--the first rate cut in nine months--and said "it is critical now to arrest the loss of growth momentum."
The RBI said its policy stance intends to "provide an appropriate interest rate environment to support growth as inflation risks moderate."
Rate cuts are seen as crucial for India to kick-start the investment cycle and revive economic growth. Better economic prospects will help attract capital inflows and support the local currency.
Traders said foreign banks were seen selling the dollar on behalf of their clients, while there may have been some inflows related to a $877 million share sale by Axis Bank Ltd. 532215.BY +1.73%
The share sale, which started Monday, was oversubscribed 3.5 times within 24 hours of its opening, a person involved said Tuesday

Loans to get cheaper as RBI cuts rates for first time in 9 months

 

After a gap of 9 months, the Reserve Bank of India (RBI) on Tuesday slashed short term lending (repo) rate by 0.25 percent to 7.75 percent, a move that will reduce the cost of home, auto and corporate loans.

The reverse repo rate under the liquidity adjustment facility, determined with a spread of 100 basis points below the repo rate, stands automatically adjusted to 6.75 percent.

The RBI also slashed the cash reserve ratio ( CRR) by 0.25 percent to 4 percent. As a result of this reduction in the CRR, around Rs 18,000 crore of primary liquidity will be injected into the banking system.

While repo rate cut will reduce the cost of borrowing for individuals and corporates, the reduction in CRR, which is the portion of deposits that banks have to park with RBI, would improve the availability of funds.

"The stance of monetary policy in this review is intended to provide an appropriate interest rate environment to support growth as inflation risks moderate," Subbarao said while unveiling the policy review.

"The moderation in inflation conditions provides the opportunity for monetary policy to act in conjunction with fiscal and other measures to stem growth risks," Subbarao said.

He praised government's recent reform measures including liberalisation of FDI in retail, deferment of GAAR and progressive deregulation of fuel prices saying these actions would "help engender stable macroeconomic conditions and return the economy to its high growth trajectory."

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the CRR cut will have impact on long term interest rates.

"I think this is the right thing to do at this point of time given that (the decline) in economy is beginning to bottom out," he said.

On the possible impact of the RBI's decision on the interest rates, Bank of India executive director N Seshadari said most of the banks will transfer the rate cut. "Full transmission will happen on both lending and deposit rates. A 0.25 per cent cut is most likely."

Echoing similar views, Canara Bank executive director A K Gupta said the bank would consider interest rate cut in the light of RBI policy action.

The bank last cut rates in April 2012 following an aggressive monetary tightening drive to contain inflation. It has been resisting calls from business leaders and politicians to reduce borrowing costs to spur the economy.

In a report on the economy, issued a day before its policy review, the RBI has lowered the growth projection for the current fiscal to 5.5 percent from 5.6 percent projected earlier. They have also cut the growth forecast for the next financial year to 6.5 percent from 6.6 percent.

RBI Governor D Subbarao said, "Large fiscal deficit will crowd out private investment and will also accentuate current account deficit gap. Financing current account deficit with a volatile flows is risky".

As regards inflation, the RBI said it was likely to moderate below its projection of 7.5 percent by March-end. However, it added, "suppressed inflation continues to pose a significant risk to the inflation in 2013-14. As some of the risks materialises, inflation path may turn stick."

Referring to recent reforms initiatives, it said, "(they) have reduced immediate risks, but there is a long road ahead to bring about a sustainable turnaround for the Indian economy. Business sentiments remain weak despite reform initiatives and consumer confidence is edging down."

Referring to the problem of rising Current Account Deficit (CAD), difference between outflow and inflow of foreign exchange, the RBI said it was likely to exceed 4 percent for the second successive year in 2012-13.

"The CAD/GDP ratio reached its highest ever peak of 5.4 percent of GDP in Q2 of 2012-13. Early indications are that it may increase further in Q3 of 2012-13. CAD has widened mainly due to worsening of trade deficit," the RBI said.