Chapter I INTRODUCTION TO BANKING
Introduction
Abankis afinancial intermediarythat acceptsdepositsand channels
those deposits intolendingactivities, either directly by loaning or
indirectly through capital markets. A bank links together customers
that have capital deficits and customers with capital
surpluses.
Due to their importance in thefinancial systemand influence on
national economies, banks arehighly regulatedin most countries.
Most nations have institutionalized a system known asfractional
reserve banking, under which banks hold liquid assets equal to only
a portion of their current liabilities. In addition to other
regulations intended to ensure liquidity, banks are generally
subject tominimum capital requirementsbased on an international set
of capital standards, known as theBasel Accords.
Banking in its modern sense evolved in the 14th century in the
rich cities ofRenaissance Italybut in many ways was a continuation
of ideas and concepts ofcreditandlending that had its roots in
theancient world. In thehistory of banking, a number ofbanking
dynastiesnotably theMedicis, theFuggers, theWelsers, theBerenbergs,
and the Rothschildshave played a central role over many centuries.
Theoldest existingretail bankisMonte dei Paschi di Siena, while the
oldest existingmerchant bankisBerenberg Bank.
BANKING IN INDIA-Originated in the last decades of the 18th
century. The oldest bank inexistence in India is the State Bank of
India, a government-owned bank that traces its origins back to June
1806and that is the largest commercial bankin the country.
Centralbanking is the responsibility of the Reserve Bank of India,
which in 1935 formally tookover these responsibilities from the
then Imperial Bank of India,relegating it to commercial banking
functions. After India's independence in 1947, the Reserve Bankwas
nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government
nationalized the six next largest in 1980.Currently, India has 88
scheduled commercialbanks (SCBs) - 27 public sector banks(that is
with the Government of India holding a stake), 31 private banks
(these do not have government stake; they may be publicly listed
and traded on stock exchanges) and 38 foreign banks. They have a
combined network of over 53,000 branches and 17,000 ATMs. According
to a report by ICRA Limited, a rating agency, the public sector
banks hold over 75 percentof total assets of the banking industry,
with the privateand foreignbanks holding 18.2% and 6.5%
respectively.
Early History-Banking in India originated inthe last decades of
the 18thcentury. The first banks were The General Bank of India
which started in 1786, and the Bank of Hindustan, both ofwhich are
now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bankof Calcutta in June
1806,which almost immediatelybecame the Bank of Bengal. This was
one of thethree presidency banks, the other twobeing the Bank of
Bombayand the Bank of Madras, all three of which wereestablished
under charters from the British East India Company. For many years
thePresidencybanks acted as quasi-central banks, as did their
successors. The three banks merged in1925 to form the Imperial Bank
of India, which, upon India's independence, became the
State Bank of India. Indian merchants in Calcutta established
the Union Bank in 1839, but it failed in 1848 as a consequence of
the economic crisis of 1848-49. The Allahabad Bank, established
in1865 and still functioning today, is theoldest Joint Stock bank
in India. It was notthe first though. That honor belongs to the
Bank of Upper India, which was established in1863, and
whichsurvived until 1913, when it failed, with someof its assets
and liabilitiesbeing transferred to the Alliance Bank of Simla.
When the American Civil Warstopped the supply of cotton
toLancashirefrom the Confederate States, promoters opened banks to
financetrading in Indian cotton. With large exposure to speculative
ventures, most of the banks opened in India during thatperiod
failed. The depositors lost money andlost interest in keeping
deposits with banks. Subsequently, banking in India remained the
exclusive domain of Europeans for next several decades until the
beginning of the 20th century.Foreign banks too started to arrive,
particularly inCalcutta, in the 1860s. The Comptoired'Escompte de
Paris opened a branch in Calcutta in 1860, and another in Bombay
in1862; branches in Madrasand Pondichery, then a French colony,
followed. HSBC established itself in Bengal in 1869. Calcutta was
the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking center. The Bank of
Bengal, which later became the State Bank of India. The first
entirely Indian joint stock bank was the Oudh Commercial Bank,
established in1881 in Faizabad. It failed in 1958. Thenext was the
Punjab National Bank,established in Lahore in 1895, which has
survived to the present and is now one of the largest banks in
India. Around the turn of the 20th Century, the Indian economy was
passingthrough a relativeperiod of stability. Around five decades
hadelapsed since the Indian Mutiny, and the social, industrial and
other infrastructure had improved. Indians hadestablished
smallbanks, most of which served particular ethnic and religious
communities.
The presidency banks dominated banking in India but there were
also some exchangebanks and a number of Indian joint stockbanks.
All these banks operated in different segments of the economy. The
exchange banks, mostly owned by Europeans, concentrated on
financing foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete
with the presidency and exchange banks. This segmentation let Lord
Curzon to observe,"In respect of banking itseems we are behind the
times. We are like some old fashioned sailing ship, divided bysolid
wooden bulkheads into separate and cumbersome compartments."The
period between 1906 and 1911, saw the establishment of banks
inspired by the Swadeshi movement. The Swadeshi movement inspired
local businessmen and political figures to found banks of and for
the Indian community. A number of banks established then have
survived to the present such as Bank of India,Corporation
Bank,Indian Bank,Bank of Baroda, Canara Bankand Central Bank of
India. The fervour of Swadeshi movement leadto establishing of many
private banks in Dakshina Kannada and Udupi district which were
unified earlier and known by the name South Canara ( South Kanara )
district. Four nationalised banks started in this district and also
a leading private sector bank. Hence undivided Dakshina Kannada
district is known as "Cradle of Indian Banking"
HISTORY OF BANKING IN INDIA -In ancient India there is evidence
of loans from theVedic period(beginning 1750 BC).Later during
theMaurya dynasty(321 to 185 BC), an instrument calledadeshawas in
use, which was an order on a banker desiring him to pay the money
of the note to a third person, which corresponds to the definition
of a bill of exchange as we understand it today. During the
Buddhist period, there was considerable use of these instruments.
Merchants in large towns gave letters of credit to one another.
RANGE OF ACTIVITIES-Activities undertaken by large banks
includeinvestment banking,corporate banking,private
banking,insurance,consumer finance,foreign exchange
trading,commodity trading,trading in equities,futures and options
tradingandmoney market trading.
Chapter IIBHARATIYA MAHILA BANK
INTRODUCTION :Bharatiya Mahila Bank (BMB) is an Indianfinancial
servicesbanking company based inNew Delhi, India. Former Indian
Prime MinisterManmohan Singhinaugurated the system on 19 November
2013 on the occasion of the 94th birth anniversary of former Indian
Prime MinisterIndira Gandhi.Although initially reported as a bank
exclusively for women, the bank allows deposits to flow from
everyone, but lending will be predominantly for women. India is the
third country in the world to have a bank especially for women,
afterPakistanandTanzania. The bank has been criticized as adopting
a segregational approach to gender equality. Uma Shashikant of
theThe Hinduwrites:Women-only banks are another instance of wanting
to treat women differently. We guise this in many forms, some in
garbs of reverence, some as protection, but they are all forms of
discrimination that promote gender-based stereotyping. Women-only
organisations stem from this eagerness to patronise women in the
name of preferential treatment.
BANKING FOR WOMEN-In India, only 26% of women have an account
with a formal financial institution, compared with 46% of men. That
means an account in either a bank, a credit union, a co-operative,
post office or amicrofinanceinstitution, according to a study by
the World Bank.Also, for women, per capita credit is 80 per cent
lower than males.
Furthermore, the results of a study using a global dataset
covering 350MicrofinanceInstitutions (MFIs) in 70 countries
indicates that more women clients is associated with lower
portfolio-at-risk, lower write-offs, and lower credit-loss
provisions, ceteris paribus provision.
CAPITAL-The Bank's initial capital consists of Rs 1,000 crores.
The government plans to have 25 branches of the said bank by the
end of March 2014 and 500 branches by 4th year of operation
(2017).US-based FIS Global, in partnership with Wipro is leading
the race for a Rs 1,000-crore contract to provide IT systems at the
countrys first women-focussed bank, it is reliably learnt.
KEY MANAGEMENT-Initially the bank will have a board of directors
consisting of eight women.The board consists of a business graduate
sarpanchfromRajasthan,Chhavi Rajawat,DalitentrepreneurKalpana
Saroj, who turned around a tubes business, retired public
bankerNupur Mitra, academicPakiza Samad, private equity
professionalRenuka Ramnath,Godrej Groupexecutive DirectorTanya
DubashandPriya Kumar, a government nominee.
ABOUT BHARATIYA MAHILA BANK LTD.
Bharatiya Mahila Bank Ltd is the first of its kind in the
Banking Industry in India formed with a vision of economic
empowerment for women. Incorporated under the Companies Act 1956 on
5 August 2013, the Bank received the certificate of commencement of
Business on 22 August 2013 and the Banking License from RBI on 25
September 2013. The Banks Corporate Office is at the IFCI Towers,
9thfloor, Nehru Place, New Delhi .Inaugurated on 19 November 2013,
the Bank, at present has 24 branches across the country and aims to
add 55 - 60 branches in the current financial year.While the Bank
focuses on the entire pyramid of Indian women, special attention is
given to economically neglected, deprived, discriminated,
underbanked, unbanked, rural and urban women to ensure inclusive
and sustainable growth. The Bank with a team of professionals with
rich experience and expertise has designed and developed new
products and services to suit the needs of women of all segments
including Self Help Groups, women entrepreneurs, salaried women,
HNIs and Corporates.The Savings Bank rate of interest for Rupees
One lakh and above is 5% and for amount less than Rs. One lakh, the
interest rate is 4.5%.The Bank has designed many women centric
products keeping in mind the core strengths of women so as to
enable them to unleash their hidden potentials, engage in economic
activities and contribute to the economic growth of the country.
Most of the products are offered with a concession in the rate of
interest for women customers.The Bank also conducts programmes on
financial literacy, skill development, training for women of all
segments of the society so that women in turn generate more income,
more jobs and growth opportunities and contribute significantly for
the economic growth of the nation.Mrs. Usha Ananthasubramanian is
the Chairman and Managing Director of the Bank.The Bank has been
allocated with an initial capital of Rs. 1000 Crores.
BOARD OF DIRECTORS OF BHARATIYA MAHILA BANK LTD.
Ms. Usha Ananthasubramanian, Chairman and Managing Director Ms.
S M Swathi Dr.N. Srinivasa Rao Ms. Nupur Mitra, Director Ms. Renuka
Ramnath, Director Ms. Tanya Dubash, Director Ms. Chhavi Rajawat,
Director Ms. Kalpana Saroj, Director Dr. Pakiza Samad, DirectorMs.
Usha Ananthasubramanian, Chairman and Managing DirectorMs. Usha
Ananthasubramanian is the first Chairman and Managing Director of
Bharatiya Mahila Bank Ltd.Prior to taking over as CMD of the Bank,
she was the Executive Director of Punjab National Bank for over two
years. She started her career with LIC. She joined the banking
industry in February 1982 as a Specialist Officer in the Planning
Stream of Bank of Baroda and rose to the rank of General Manager.At
PNB, she was part of the Committee formed for examination of the
blue print and other related tasks for setting up of the first
women focussed Bank of India. She was the Head of the core
management team constituted by the Ministry of Finance, Government
of India, for coordinating the process of establishment of the
Bank.In a career spanning over three decades, she has worked in
various positions in the banking and allied areas. Key assignments
held include General Manager South Zone, Bank of Baroda and Life
Insurance Joint Venture Formation. She was closely associated with
the transformation project of Bank of Baroda including rebranding
and innovative HR initiatives.She holds a Masters degree in
Statistics from the University of Madras and a Masters degree in
Ancient Indian Culture from the University of Mumbai.
Ms. S M Swathi,Executive DirectorMs. S.M. Swathiis the Executive
Director of Bharatiya Mahila Bank Ltd.Prior to taking over as ED of
the Bank, she was the General Manager of Corporation Bank. She
joined the banking industry in September 1980 as Agriculture Field
Officer in the Rural Banking Department of Corporation Bank and
rose to the rank of General Manager.In a career spanning over three
decades, she has worked in various places in different capacities.
She has handled large branches in Delhi and Bangalore and was Zonal
Head of Hassan and Delhi at Corporation Bank. She was also the
Circle Head of Delhi (North India) and Bangalore (Karnataka). At
Head Office, she was incharge of Retail Lending, Marketing,
Publicity, Corporate Communications and Research Divisions.She
holds a Postgraduate degree in Agriculture. She was a gold
medallist in graduation (BSc Agri). She is also an MBA in Finance
in addition to CAIIB.
Dr. N. Srinivasa RaoDr. N. Srinivasa Rao is Director, Department
of Financial Services, Ministry of Finance, Government of India.He
is an officer from Indian Economic Services cadre. He is Doctorate
in economics. Dr. N. Srinivasa Rao is also a director on the Board
of Oriental Insurance Company Ltd.
Ms. Nupur MitraMs. Nupur Mitra is a graduate in Science with a
Law Degree. Presently, she is Chairperson & Executive Trustee
of Stressed Assets Stabilisation Fund (SASF) since January 2013.
During November 1, 2011-December 31, 2012, she served as
Chairperson & Managing Director of Dena Bank.Prior to this
assignment she was Executive Director of Indian Overseas Bank. She
started her career with Bank of India where she rose to the rank of
General Manager.She has been a member on several committees
constituted by Government of India, Reserve Bank of India and
Indian Banking Association.
Ms. Renuka RamnathMs. Renuka Ramnath holds a Bachelor of
Engineering from VJTI, University of Mumbai and an MBA from the
University of Mumbai. She has also completed the Advanced
Management Programme from the Harvard Business School.She is a
private equity investment manager and founded Multiples in 2009.
Ms. Renuka has spent over two and half decades in the Indian
financial sector across private equity, investment banking and
structured finance. In her last role as the MD & CEO of ICICI
Venture for close to a decade, she has contributed in many ways to
the evolution of that firm to one of the largest private equity
funds in India.
Ms. Tanya DubashMs. Tanya Dubash is AB cum laud, Economics &
Political Science, Brown University, USA, and an alumnus of the
Harvard Business School. She was recognized by the WEF as a YGL in
2008. She is a Trustee of the Brown University and a member of the
Brown - India Advisory Council.She is on the boards of several
Godrej Group companies including Godrej Consumer Products, Godrej
Industries, and Godrej Agrovet. As Executive Director & Chief
Brand Officer she is also charged with enhancing the value of the
Godrej Brand and evolving the Group to a more Brand driven
organization.She heads the Strategic Marketing Group (SMG) that
guides the Godrej Masterbrand and portfolio strategy, and chairs a
Marketing Council comprising of Group Marketing Heads. She also
heads Corporate Communications and Media for the Group and oversees
Godrej Nature's Basket, a gourmet food retailing chain.
Ms. Chhavi RajawatMs. Chhavi Rajawat is currently Sarpanch of
village Soda in Tonk District of Rajasthan. She holds a business
management degree from Pune and a Bachelor of Arts from Lady
Shriram College in New Delhi. She has held senior posts with
private firms such as Bharti Airtel and the Carlson Group in the
past.She has been elected an Aspen Fellow and she co-chaired the
World Economic Forum India Summit (2012), received the Yuva Award
(2013), was announced a Young Global Leader by World Economic Forum
(2012), has been honored by Former President APJ Abdul Kalam
(2011), and was recognized by the Young Indian Leader award by CNN
(2010).
Ms. Kalpana SarojMs. Kalpana Saroj is chairperson of Kamani
Tubes and Acme Steel. She was on theboard of Kamani Tubes when it
went into liquidation in 2001, and after taking over the company,
restructured it and brought it back to profit.She was awarded the
Padma Shri for Trade and Industry and the Rajiv Gandhi Award for
Woman Entrepreneurs.Ms. Kalpana Saroj has keen interest in
Education also. More than 2000 students are benefited through
services rendered by institutions sponsored by her which provide
library, hostel and financial help to the needy students. She also
works actively for the up-liftment of the Adivasis, destitute
children, aged and infirm.
Ms. Pakiza SamadDr. Pakiza Samad is an academician.She is Ph.D.
in Commerce and is an Associate Professor in Commerce with Zakir
Hussain P.G. (Eve) College, Delhi University.
CHAPTERLAW OF BHARATIYA MAHILA BANK (BMB) :India's first women's
bank, Bharatiya Mahila Bank was inaugurated in Mumbai by Prime
Minister Dr.Manmohan Singh on the birth anniversary of Shrimati
Indira Gandhi.One of the key objectives of the bank is to focus on
the banking needs of women and promote economic empowerment. It is
being looked upon as thebeginning ofa unique newinstitution
thatwill providefinancial servicespredominantly towomen and women
self-help groups to the small businesswomen and from the working
woman to the high networth individual. Even though the bank is
making its debut in metros and urban centre, it will enter rural
areas before March 2014 and will focus on centres where working
women population is significant. In Budget 2013-14, the Finance
Minister had announced setting up of all-women bank with an initial
capital of Rs 1,000 crore.Only 26 percent ofwomen in Indiaadmit to
havinga bank account.Since fewerwomen than men have bank accounts,
fewer women are able to get loans. Per capita credit in the case of
women is 80percent lower than in the case of men. Hence the need
for a bank that predominantly serves women. Bank credit is expected
to grow at a compounded annual growth rate of 16.5 percent during
the twenty yearperiod from2010to 2030.That willmean atwenty-fold
increasefrom thelevel of creditin 2010.
Thedepositbaseisexpectedtogrowatacompoundedannualgrowthrateof14.6
percentthatis14timesthelevelof deposits in 2010. Assuming that the
share of credit for women remains the same which should not be the
case and the share must increase even at that level total credit to
women will grow to Rs.25 lakh crore. There is, therefore, an
opportunity to reach more credit to more women, stated the Finance
Minister during the inauguration of the bank. While the objective
of the bank is financial inclusion, it would initially set up
branches in all state capitals across the country to have a hub. It
is a recognition of the fact that viable banking needs presence in
areas of economic growth. Although, over 70% of banking business in
India is controlled by public sector banks, all these banks were
nationalized. The government has promoted only financial
institutions such as IDFC and IIFL. In the past, it had promoted
development financial institution IDBI, which converted into a
bank. Post inaugural, seven branches became operational across the
country, including Kolkata, Chennai, Ahemdabadand, Guwahati. The
government has proposed opening of the bank branches in Delhi and
Indore also after the Assembly polls. With its headquarters in
Delhi, the bank proposes to have 25 branches by March 31, 2014.
Therefore, after starting with one branch in each banking region,
the bank will expand to 500 branches by the fourth year of
operation, which is when it sees operations becoming
profitable.
ChapterPRODUCTS OFFERED BY BMB:
DEPOSIT PRODUCTS-
SAVINGS ACCOUNT a ) BMB savings account : Highest ROI amongst
nationalized banks: 4.5% - Up to Rs. 1 lakh 5.0% - Above Rs. 1 lakh
Interest payable on daily product basis Zero balance Free
International Debit-cum-ATM Card Free access to any bank's ATM up
to 10 transactions Immediate credit of outstation cheques up to Rs.
25,000 No charges for RTGS/ NEFT/ Banker's cheque Unlimited
transactions through bank's ATM and Debit-cum-ATM Card
b ) BMB Basic Savings Bank Deposit Account (BSBDA) Small :
Zero balance Relaxed KYC Free ATM Card 'RUPAY'
c ) BMB Silver Savings Account :
Rate of Interest: 4.5% - Up to Rs. 1 lakh 5.0% - Above Rs. 1
lakh Minimum opening balance: Rs. 10,000 Average quarterly minimum
balance: Rs. 25,000 Immediate credit of outstation cheques up to
Rs. 25,000 25% concession on processing fees on Retail Loans Free
50 cheque leaves Free personal accident coverage of Rs 2.00 lac
d ) BMBGold Savings Account :
Rate of Interest (on daily product basis):4.5% - Up to Rs. 1
lakh 5.0% - Above Rs. 1 lakh Minimum opening balance: Rs. 10,000
Average quarterly minimum balance: Rs. 10,00,000 Auto sweep/reverse
sweep facility is available in multiples of Rs.10 Lakhs Free
unlimited personalized cheque books of 50 leave Free personal
accident coverage of Rs 2.00 lakhs Unlimited debit and credit
transactions. No ledger folio charges Free Demand drafts, bankers
cheques, RTGS & NEFT charges 50% discount on processing charges
on all personal retail loans Transfer transactions are allowed
freely without any limit (at base branch)
e ) BMBMoney Box : This savings bank account can be opened by
all resident Indian children in the age group of 10 years to less
than 18 years singly and also jointly with their parents/ natural
guardian(s) Account may be opened with Rs.100/- Debit cum ATM card
(RuPay) with limit of Rs.100/200/500/1000/2000 only with
pre-authorization from parents at the time of opening of account
Free monthly transfer of funds from parents accounts Free monthly
account statement by e- mail to parents and child as well Takes
care of idle money by moving it to interest earning account
LOANS-
1 ) Loans to SME - a ) BMB SME Easy Loan: Purpose: Working
capital limits (both FB+NFB) & Term Loans for stocks and
buildup of inventory /current assets, fixed assets needed for
business purposes / capacity expansion/ modernization /technology
up-gradation / R&D / shoring of NWC etc.Eligibility: Existing
customer already availing credit facility from us New units
Takeover of existing loans from other Banks/ Fis, subject to
takeover norms, with satisfactory track record based on
satisfactory credit opinion report from other Banks as per IBA
format and obtention of CIBIL report where availableFeatures: A
combo of working capital & term loan Maximum loan up to Rs. 20
Crores 100 bps concession for women entrepreneurs Quick
sanction
b ) BMB Shringaar Beauty Parlour Loan :Eligibility : Individual
Woman, Women jointly, sole proprietorship firms of woman and
partnership firms and the companies where share of women
partner/(s) is not less than 50%, running or intends to establish
their own beauty parlours/ spas/ saloons Age of the applicant
should be between 20 years and 60 years Minimum 2 years of proven
experience or having degree/ diploma from a polytechnic / reputed
beauty institute / organization The judgment regarding the
competence of the applicant shall be vested exclusively with the
Branch ManagerPurpose: For the purchase of tools, equipment,
chairs, furniture & fixture, interior work, Jacuzzi and steam
baths electric installation, air conditioners, coolers,
refrigerator, heaters, TV, Music System, Computers etc.
Purchase/construction of Shop Working capital for meeting
day-to-day expenses of businessFeatures: Minimum amount of loan:
Rs. 50,000 Maximum amount of loan: Up to Rs. 10 lakhs Attractive
rate of interest Low processing charges
c ) BMB Annapurna Catering Service Loan :Eligibility: Individual
Woman, Women jointly, sole proprietorship firms of woman and
partnership firms/ltd. co, where share of women partner/(s) is not
less than 50%, companies where CEO is female or majority
stakeholder. Age of the applicant should be between 18 years and 60
years
Purpose: Purchase of utensils, cutlery, gas connection,
Refrigerator, Mixer cum Grinder, Gas stoves, Hot case, Utensil
Stand, Tiffin boxes, working table, water filter etc. Working
capital for meeting day-to-day expenses of businessFeatures:
Minimum loan amount: Rs. 5,000 Maximum loan amount: Rs. 1 lakh Low
processing fees Term loan/ overdraft
d ) BMB Parvarish Child Day Care Centre/ Crche Loan
:Eligibility: Individual woman, group of not more than three women
jointly, sole proprietorship firms of woman and partnership firms
where share of women partner/(s) is not less than 50% Age of the
applicant should be between 21 years and 55 years Should be a
graduate. This condition may be relaxed in deserving cases
Purpose of Loan: Purchase of utensils, cutlery, gas connection,
refrigerator, furniture, office equipment viz. computer, printer,
games, air conditioner, cooler, fan, water purifiers, & water
dispensers, etc. Amount payable for franchise arrangements, if any
For Interiors and furnishings. Working capital for meeting
day-to-day expenses of business
Features: Working capital & term loan Minimum amount of
loan: Rs. 50,000 Maximum amount of loan: Up to Rs. 5 lakhs Easy
repayment in 5 years No collaterals
2 ) Loans to SHG (Self Help Groups)- a ) BMB SHG Loans: Both
term-loan and working capital Savings linked loan Collateral: NIL
Margin: NIL Processing fees: NIL b) BMB Micro Credit Card: To
promote entrepreneurship in non-farm sectors like small artisans,
self- employedpersons, rickshaw owners, weavers, etc. Working
capital & term loan Maximum amount of loan: Up to Rs. 50,000
Margin: NIL
3 ) Loans to students- a ) BMB Saraswati Loan:Education Loan for
Higher Studies in India & AbroadEligibility: Should be an
Indian resident Should have secured admission for the eligible
course. Ameritorious student (who qualifies for a seat under
management quota) will also be eligible for loanFeatures: Easy
finance from basic to higher education Loan up to Rs. 10 lakhs for
studies in India and Rs.20 lakhs for abroad No security for finance
up to Rs. 4 lakhs Simple formalities and easy repayment facility 1%
concession in interest rate for girl students Concession for
students of IIT/ IIM/ AIIMS/ AFMC Special scheme for students
pursuing CA/ CS
4 ) Loans to professionals- a ) BMB Career Enhancement: For
fully qualified working CA/ CS to set- up their own office Working
capital & term loan Maximum amount of loan: Rs. 20 lakhs
5 ) Home loan- a ) BMB Apna Ghar Scheme: Eligibility All Indian
Residents All individuals singly or jointly In case of salaried
persons, principal applicant must be confirmed in the service &
should have two years of aggregate service in previous &
present employment put together Minimum age must be 21 years. Age
of the borrower plus repayment period should not be beyond
retirement age in case of salaried persons and 70 years in case of
others. However co-borrowers minimum age can be 18 years. Person
who already owns a house can also be considered for second house /
flat for the purpose of self-occupation. Where property is held in
joint names, all the joint holders should join as co- borrower to
the loan Where property is owned by applicants parents/spouse who
does not have regular/independent income, they should join as
co-applicant only, irrespective of their age. Housing loan to HUF
is not to be considered as it is not meant for the purposes of
family business of HUF and also there are certain legal
complications
Purpose: Construction of house / flat Purchase of ready built
house/ flat Construction of additional floor on the existing house
or extension of house Take-over of housing loan from other
Bank/Institution, subject to takeover norms Purchase of old
dwelling unit Purchase of plot of land, subject to the condition
that a house will be constructed thereon within 3 years or up to
the period allowed by Development Authority, whichever is earlier,
from the date of purchase of plot, without resorting to penal
interest.Features: No limit on loan amount Repayment period up to
25 years Lowest rate of interest No penalty for bulk amount &
no pre-payment charges if paid through own sources Interest on a
daily reducing balance method No hidden charges
6 ) Car loan- a ) BMB Dream Car:Purpose: Purchase of new car
Purchase of old car (not older than 3 years car)
Eligibility : Permanent salaried employees, self-employed
person, professional, farmer, businessman, proprietor/ partner of
firms, director of a company, (either singly or jointly with
spouse) with minimum net annual income of Rs. 3 lacs Income of
spouse / father / mother / brother / sister (any one) can be
clubbed, who will join as co-borrower Age Minimum 21 years &
maximum 65 years Minimum 2 years borrower employment is required (
need not be the same employer)Features: Low rate of interest and
EMIs Maximum loan amount: Rs. 75 lakhs for any car make/ model
Repayment period: Maximum 7 years Concession of 0.25% to women
borrowers Quick sanction Simple documentation No hidden charges
7 ) Advance against securities- a ) BMB Advance against
Securities: Loan for meeting contingency needs of personal nature
Loan against NSC/ KVP/ Govt. Bonds Easy documentation Low rate of
interest
8 ) Kitchen modernization loan- a ) BMB Efficient
Kitchen:Purpose: Renovation of kitchen - civil work, tiling &
flooring, kitchen platform, sinks, plumbing & electrical work,
painting, modular kitchen, CUPBOARDS, cabinets & lighting, etc.
Purchase of electronic and electrical appliances for the kitchen
viz. clean energy products like solar home lighting systems,
efficient cooking stoves, solar stoves, water purifiers, RO, water
softener, chimney, cooking range, dish washers, microwave ovens,
OTG, induction stove, pressure cooker, hand blender, toaster, wet
grinders, Home Flour Mill, mixer grinders, electric tandoors,
refrigerators, fan, geyser, exhaust fan, water dispenser, electric
rice cooker, food processors, juicer, barbeques, coffee maker etc.
Purchase of furniture items for kitchen, dining table and chairs
Purchase of utensils, crockery & cutlerywith a ceiling of Rs.
25000/-Eligibility: Permanent Salaried women employees,
self-employed women, women professionals, businesswomen,
proprietor/ partner of firms with net annual income of less than
Rs. 3 lacs Income of spouse / father / mother / brother / sister
(any one) can be clubbed, who will join as co-borrower Age of the
borrower Minimum - 21 years Maximum for salaried persons 60 years
and others 55 years Principal applicant must have consistent and
stable source of income minimum for last 2 years Women customers
maintaining satisfactorily conducted savings bank account (Bank
being new this condition may be relaxed initially) The flat/ home
should not be older than 25 yearsFeatures: Minimum amount of loan:
Rs. 50,000 Maximum amount of loan: Rs. 5 lakhs Long repayment
period: 7 years
Easy Banking- 1 ) BMB Credit Card - Gold & Platinum: In
affiliation with SBI Worldwide acceptable Cash withdrawal facility
Comprehensive monthly statements Add-on cards2) BMB International
Debit Card: Accepted at all Master ATMs in India & abroad
Accepted at all merchant outlets/ POS Mini statement from BMB's ATM
to check the balance Convenience of cashless purchasing power
Insurance-1 ) BMB-Sakhee (A Product of New India Insurance):
(For Rural Women A/C Holder of Bharatiya Mahila Bank)
Sum Insured Rs.50000/- Maternity cover up to first two living
children only after 2 years, if renewed without break is Actual
subject to maximum of Rs.5,000/- For any surgery - Actual subject
to maximum of Rs.25,000/- Age of insured is from 18 Years of age to
65 years Very Low Premium of Rs.506 only (Including Service
Tax)
2 ) BMB-Nirbhaya (A Product of New India Insurance): (For Rural
Women A/C Holder of Bharatiya Mahila Bank) Cashless Facility is
available Maternity cover up to first two living children only
after 2 years, if renewed without break is- Actual subject to
maximum of 10% of Sum Insured Cosmetic Surgery in case of
Accidental Injuries including acid attack 15% of Sum Insured
Gynaecological health check-up (if claim free) from 4th year of
policy is- 1% of Average Sum Insured Dedicated helpline for queries
on health and nutrition Minimum premium is Rs.1385 only3 )
BMB-Parivar Suraksha (A Product of New India Insurance): (Family
Floater) Day Care Expenses covered for any surgery due to the
advancement of Medical Technology for which less than 24 hrs of
hospitalization is required. Cashless facility is available. This
policy covers family consisting of self, spouse and three dependent
children (Additional premium shall be charged).
CHAPTERFEATURES OF BHARATIYA MAHILA BANK (BMB) :
Most of the senior executive of the bank have been hired on
deputation from other public sector banks. Some salient feature of
the bank are: First 25 branches of Bhartiya Mahila Bank to be in
state capitals Finance Ministry has sought RBIs forbearance on
rural norms.
Bank will offer 4.5% interest on saving deposits.
It will not insist on collateral since most title deeds are in
name of male family members. It will lend to micro businesses like
catering, crches & for upgrading kitchens in households.
The bank aims to have Rs. 60,000 crore business and 775 branches
by 2020.
It will provide loans primarily to women, and will give low-cost
education loans for girls.
Key positions, including treasury head and security head, held
by women.
All-women board includes Usha Ananthasubramanian, (chairperson),
Chavi Rajawat, Kalpana Saroj,Nupur Mitra, Priya Kumar, Renuka
Ramnath & Tanya Dubash.
The Government has been working towards empowerment of women in
the country.The flagship programs for rural employment and for
universalizing education and health-care provide equal access for
both men and women to help the cause of women empowerment. Nearly
half of those getting employment under the Mahatma Gandhi National
Rural Employment happen to be women. In addition, schemes for
taking care of the special needs of women have been started for
example; Janani Suraksha Yojana, which supports pregnant and
nursing mothers, the Sabla scheme, empowers adolescent girls
BHARATIYA MAHILA BANK LTD., the first womens public sector bank
in India has become operational from 19th November, 2013 and is
presently having -23- branches. The Bank has ambitious plan for
operations on a PAN India level with the key objective of focusing
on the banking needs of women and promoting their economic
empowerment.
BHARATIYA MAHILA BANK LTD. is positioning itself to achieve top
of mind recall for all women by providing best-in-class services to
woman belonging to the corporate/ HNI or the rural poor category.
Towards this end, the Bank has adopted an ideal mix of technology
and low cost delivery models to reach out to a wider group while
bringing in efficiencies. The Bank is committed to focus on skill
development and financial literacy through training besides
focusing on women with specific products and services as per target
profile. While the focus of the Bank would be to cater to the needs
of women it would not exclude any other segment/individuals from
its purview.BHARATIYA MAHILA BANK LTD. is in the process of
resourcing intelligent and passionate workforce committed to
assisting the organization in formulation, adoption and defining of
business strategies and goals from time to time as also delivering
business goals.
BHARATIYA MAHILA BANK LTD., wants employers to realize their
potential and fulfill their aspirations as a professional Banker.
It provides right environment, recognition and good career
opportunities for everyone.If any candidate have a dream to share
with and translate them into business reality and serve the country
through the medium of Public Sector Bank, and also fulfill the
prescribed eligibility criteria, they may be the right person
wherein Bharatiya Mahila Bank is interested in for the following
positions:
AMOUNT OF FEES / CHARGES FOR POSTAGE:The amount of fee to be
paid is indicated below:Category of ApplicantAmount of Fees/
Charges for postage (Non-refundable)
SC/ ST/ Persons with Disability (PWD)Rs 100/-
GEN/ OBC/ Ex-ServicemenRs 600/-
SALARY & EMOLUMENTS:ScaleScale of Pay *
SMGS-IVRs 30600 900/4 34200 1000/2 - 36200
MMGS-IIIRs 25700 800/5 29700 900/2 31500
MMGS-IIRs 19400 700/1 20100 800/10 28100
* The above salary scales are under revision with effect from
November 2012.At present, initial monthly emoluments of Middle
Management Grade/ Scale II Officers, including DA, HRA & CCA
are approximately Rs 36,500/- per month, Rs 51,375/- per month for
Middle Management Grade/ Scale III Officers and Rs 61,170/-per
month for Senior Management Grade/ Scale IV Officers, in a
Metropolitan Centre. Allowances may vary depending upon the place
of posting. In addition, Conveyance, Medical Aid, LTC and
retirement benefits are admissible, as per rules of the Bank, in
force from time to time.PROBATION PERIOD: The selected candidate
will be on probation for a period of Two years (-2- years) of
active service from the date of his/ her joining the Bank.
RELAXATION IN UPPER AGE LIMIT FOR RESERVED POSITIONS:1Scheduled
Caste/ Scheduled Tribe5 years
2Other Backward Classes3 years
3Persons with Disability10 years
4All persons who have ordinarily been domiciled in Kashmir
Division of J & K State during 01.01.1980 and 31.12.19895
years
5Ex-servicemen and Commissioned Officers including ECOs/ SSCOs
who have rendered at least 5 years military service and have been
released on completion of assignment (including those whose
assignment is due to be completed within the next one year from the
last date for receipt of application) other than by way of
dismissal or discharge on account of misconduct or inefficiency or
on account of physical disability attributable to military service
or on being declared as invalidi. by 5 years for selection through
written test and interviewii. by 3 years plus period of service in
Armed Forces for selection through interview onlyiii. by 3 years
for the post of Manager (Security) subject to a maximum age limit
of 40 years.
6Persons affected by 1984 riots5 years
NATIONALITY/ CITIZENSHIP (AS ON 01.06.2014):A candidate must be
either i) a Citizen of India or ii) a subject of Nepal or iii)
subject of Bhutan or iv) a Tibetan refugee who came over to India
before 1st January 1962 with the intention of permanently settling
in India or v) a person of Indian origin who has migrated from
Pakistan, Burma, Sri Lanka, East African Countries of Kenya,
Uganda, the United Republic of Tanzania (formerly Tanganyika and
Zanzibar), Zambia, Malawi, Zaire, Ethiopia and Vietnam with the
intention of permanently settling in India. Provided that a
candidate belonging to categories (ii), (iii), (iv) & (v) above
shall be a person in whose favour a certificate of eligibility has
been issued by the Government of India. A candidate in whose case a
certificate of eligibility is necessary may be admitted to the
examination/ interview conducted by the Bank but on final
selection, the offer of appointment may be given only after the
Government of India has issued the necessary eligibility
certificate to him.
RESERVATIONS:A) Reservation for SC/ ST/ OBC/ PWD candidates will
be provided as per Government guidelines. Candidates belonging to
and applying under Reserved OBC Category are required to submit a
Certificate regarding his/ her Community in the prescribed format
FORM OF CERTIFICATE TO BE PRODUCED BY OTHER BACKWARD CLASSES
APPLYING FOR APPOINTMENT TO POSTS UNDER THE GOVERNMENT OF INDIA
(Format available on Banks website along with This Notification)
and the Certificate should contain the NON-CREAMY LAYER CLAUSE
which is not more than one year old. Candidates not producing the
above certificate will not be considered under the OBC Category.B)
Persons with Disabilities: Under Section 33 of Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995 only such persons would be eligible for
reservation who suffer from not less than 40% of relevant
disability and are certified by a Medical Board appointed by the
Central/ State Govt. Accordingly, candidates with the following
disabilities are eligible to apply. Applicants claiming such
benefits should produce certificate in original in support of their
claim at the relevant time, as advised by the Bank.As the
reservation for Persons with Disabilities is on horizontal basis,
the selected candidates will be placed in the appropriate category
(viz. SC/ ST/ OBC/ GEN) to which they belong.Visually Impaired
(VI)Blindness refers to a condition where a person suffers from any
of the following conditions: i) Total absence of sight ii) Visual
acuity not exceeding 6/60 or 20/200 (Snellen) in the better eye
with correcting lenses (iii) Limitation of the field of vision
subtending an angle of 20 degrees or worse.Low vision means a
person with impairment of visual functioning even after treatment
or standard refractive correction but who uses or is potentially
capable of using vision for the planning or execution of a task
with appropriate assistive device.Deaf & Hearing Impaired (HI)
The deaf are those persons in whom the sense of hearing is
non-functional for ordinary purpose of life i.e. total loss of
hearing in both ears. They do not hear; understand sounds at all
even with amplified speech. Hearing impairment means loss of sixty
decibels or more in the better ear in the conversational range of
frequencies.Orthopedically Handicapped (OH):OH person is one having
minimum of 40% physical defect or deformity which causes
interference with the normal functioning of the bones, muscles and
joints and is so certified by a Medical Board appointed by the
State Government. Only those who fall in the following categories
are eligible to apply:i. BL Both Legs affected but not Arms;
ii. OA One Arm affected (Right or Left) - a) Impaired Reach; b)
Weakness of Grip; c) Ataxia;iii. OL One Leg affected (Right or
Left);iv. MW Muscular Weakness & Limited Physical
Endurance.
Use of a Scribe / Paper Writer:A SCRIBE / PAPER WRITER, to write
the written test / examination, on behalf of a Visually Challenged
(VC) [Blind] candidate & an orthopedically Challenged (OC)
candidate [whose writing speed is affected by Cerebral Palsy], may
be used. In all such cases where a Scribe is used, the following
rules will apply:i) The candidate will have to arrange his own
scribe at his/her own cost.ii) The scribe may be from an academic
stream different from that stipulated for the post. iii) Both the
candidate as well as scribe will have to give a suitable
undertaking confirming that the scribe fulfils all the stipulated
eligibility criteria for a scribe mentioned above. Further in case
it later transpires that he/she did not fulfill any laid down
eligibility criteria or suppressed material facts the candidature
of the applicant will stand cancelled, irrespective of the result
of the written examination.iv) Those candidates who use a scribe
shall be eligible for compensatory time of 20 minutes for every
hour of the examination.
SPEECH OF FINANCE MINISTER P.CHIDAMBARAM AT THE INAUGURATION OF
BHARATIYA MAHILA BANK IN MUMBAI.Mumbai :November 19,2013
The launch of Bharatiya Mahila Bank (BMB) is not only a symbol
of women empowerment but the substance of empowerment said Finance
Minister P Chidambaram at the inauguration of Indias first women
commercial bank the Bharatiya Mahila Bank by the Prime Minister Dr.
Manmohan Singh and UPA Chairperson, Ms. Sonia Gandhi in Mumbai on
Tuesday.
Addressing a post inaugural press conference, the Finance
Minister said only26 percent of women in India have bank accounts
and per capita credit for women is currently 80 percent lower than
that for men. He said, there is deep seated bias, at the
institutional and individual levels against women. Since fewer
women have bank accounts, fewer women get bank loans. Hence, the
need for a bank that caters predominantly to womens needs. Mr.
Chidambaram added that the seed we have sown today, when it
branches out and flowers, it will bring enormous benefits to half
the population of the country.
Finance Minister stated that the Bharatiya Mahila Bank will be a
universal bank which will establish branches across India and offer
all banking products that a regular commercial bank offers. He said
that BMB would design and offer special products tailor made to the
needs of women. It will cater to everybody from self help groups to
lower middle class women to high net worth individuals.
Apart from the Nariman Point branch which was inaugurated in the
hands of the Finance Minister today, Bharatiya Mahila Bank has six
other branches at Kolkata, Chennai, Bangalore, Ahmedabad, Lucknow
and Guwahati. Two other branches in Delhi and Jaipur would be
inaugurated in December, after the conclusion of state assembly
election process there. By the end of the financial year, the Bank
plans to open at least 25 branches, eyeing a presence in every
state capital. The bank network will be expanded in subsequent
years to reach 770 branches by 2020 covering Tier II and III
cities, rural areas and unbanked areas. The Bank has drawn up an
ambitious business plan to touch Rs 60,000 crores total business
(deposits + advances) by 2020.
Bharatiya Mahila Bank, headquartered in New Delhi is headed by
Ms. Usha Ananthasubramanian, a Public Sector banker with 31 years
experience. The Finance Minister also announced the 8 Member all
women Board of Directors of the Bank. The other members on the
board include Chhavi Rajawat an MBA and a sarpanch from Rajasthan,
Nupur Mitra former CMD of Dena bank, Renuka Ramnath of Multiples
Alternate Asset Management,Tanya Dubash (Godrej) Executive Director
and President (Marketing) of the Godrej group, Kalpana Saroj CEO of
Kamani Tubes and government nominee Priya Kumar.
In the Budget 2013-14, the Finance Minister had announced
setting up of all-women bank with an initial capital of Rs 1,000.
crore. Former Chairman of Canara Bank Mr. M B N Rao was tasked with
drawing the blue print of the Bank, the job he finished in a record
time of two months.
BHARATIYA MAHILA BANK LAUNCHES BMB RUPAY CARDMumbai -
07.08.2014
Bharatiya Mahila Bankhas launchedBMB RuPay Debit Card with EMV
chip.The card was launched bySmt. Usha Ananthasubramanian,Chairman
and Managing Director, Bharatiya Mahila Bank in the presence
ofShri. A. P. Hota,Managing Director and CEO, National Payments
Corporation of India (NPCI), at a function held here today.Smt.
Usha Ananthasubramaniansaid that, the launch symbolizes BMBs
eagerness and commitment in taking all technology services to its
valued customers at the
earliest.RTGS & NEFT services are already available at all
the branches of the Bank, she added. The Bank will soon be
introducing other innovative, value added products and services viz
EKYC for hassle-free account opening and biometric authentication
services for illiterate customers. BMB has already set up 23 ATMs
that accept cards of all brands and plans to deploy 60 ATMs in
current year.The firstBMB RuPay Cardwas received by Mrs. Usha
Kulkarni, Chairperson, Pratibha Industries Limited.The Indian
market offers huge potential for the RuPay card, said Shri.Hota, MD
& CEO of NPCI. The benefits of RuPay debit card are flexibility
of the product platform and high levels of acceptance, he added.The
cards issued by BMB can be accepted at all NFS Network ATMs of
1,73,000+, 9.89 lacs POS terminals at Merchants Establishments and
15,000 + online merchant sites.
BHARATIYA MAHILA BANK BAGS CORE BANKING SYSTEM INITIATIVE AWARD
2014.31.07.2014
Bharatiya Mahila Bank Ltdhas bagged the CoreBanking System
Initiative Award of the year2014 by the Asian Banking and Finance -
Retail Banking Awards 2014, Singapore.Smt. Usha Ananthasubramanian,
Chairman & Managing Director, Bharatiya Mahila Bank Ltd, said
that the Bank launched its operations with Core Banking Solutions
and ATMs from day one. This has been achieved within a period of
less than two months from the grant of license by RBI to the launch
date 19.11.2013. The Bank has automated almost all the processes
and will soon be launching internet banking and mobile banking
services. The internet banking of the Bank, will be offering
certain first of its kind, value added services.The Bank has lined
up branches at 12 new centres across the country which would become
operational shortly.