Monday, 16 February 2015

Secure Your Future with SBT Fixed Deposit



The State Bank of Travancore fixed deposit schemes have the solution to a secure and stress-free future

About State Bank of Travancore

State Bank of Travancore was established in 1945 as Travancore Bank LTD. and was sponsored by the former Princely State of Travancore. Under the SBI subsidiary Banks Act 1959, the special statute of the Indian Parliament, State Bank of Travancore was granted membership of the State Bank Group which is the largest banking group in India. State Bank of Travancore was also deemed an Associate of the State Bank of India.


Eligibility

State Bank of Travancore offers the opportunity for children of 10 years and above to open a fixed deposit account with a maximum deposit limit of Rs.2 Lakhs. In the event that a minor who is below the age of 18 years is offered guardianship, the maximum limit that the minor can deposit into their fixed deposit account is Rs.20 Lakhs.

An existing State Bank of Travancore bank account is not a prerequisite to open a fixed deposit account.

Adults over the age of 18 years can enjoy a fixed deposit account with State Bank of Travancore without any maximum limit cap on their fixed deposit account.

State Bank of Travancore Fixed Deposit Loan Schemes

Following are the categories that State Bank of Travancore offers fixed deposit schemes in-

     Domestic deposits
     Less than Rs.1 crore
     Rs.1 crore and above
     NRO fixed deposits
     Less than Rs.1 crore
     Rs.1 crore and above
     NRE fixed deposits
     Less than Rs.1 crore
     Rs.1 crore and above

Interest Rates offered on State Bank of Travancore fixed deposits-

FIXED DEPOSIT TYPE
AMOUNT
INTEREST RATES
Domestic deposits
Less than Rs.1 crore
7.5% - 9.25%
Domestic deposits
Rs.1 crore and above
7.0% - 8.75%
NRO fixed deposits
Less than Rs.1 crore
7.0% - 8.75%
NRO fixed deposits
Rs.1 crore and above
6.50% - 8.75%
NRE fixed deposits
Less than Rs.1 crore
8.75%
NRE fixed deposits
Rs.1 crore and above
8.25%

Amount that can be placed in your fixed deposit account

The minimum amount you can place in your fixed deposit account with State Bank of Travancore is Rs.1000. The best part about State Bank of Travancore fixed deposits is that there is no cap on the maximum amount that you can invest in your fixed deposit account. The only thing that you have to keep in mind is that an existing account cannot be updated with monetary inputs. In order to place more sums of money under a fixed deposit scheme, a new fixed deposit account needs to be created.

Tenure Period of your fixed deposit account

State Bank of Travancore offers its customers fixed deposit account tenures starting from 7 days and all the way up to 10 years. You can pick the tenure most beneficial to you at your discretion.

Are the fixed deposit accounts with State Bank of Travancore taxable?

State Bank of Travancore fixed deposit interests paid are tax deductible if the interest rate on the fixed deposit exceeds Rs.10000.

What about loans provided against fixed deposits?

State Bank of Travancore offers you loans against your fixed deposit account to a loan amount of up to 90% of your term deposit amount. Furthermore, the interest rate you are charged will be 1% of your State Bank of Travancore fixed deposit interest rate.

Special Rates for Senior Citizens

State Bank of Travancore offers attractive special rates for senior citizens under the domestic deposit scheme of less than Rs.1 crore.

State Bank of Travancore is a stable institution to invest with
State Bank of Travancore has the answer to all of your imminent financial fears. State Bank of India has infused capital into State Bank of Travancore, thus increasing its capital to Rs.6018.46 crores as evaluated on December 31st 2014. Its non-performing assets percentage has decreased by leaps and bounds in the last quarter. Furthermore, State Bank of Travancore’s capital to risk weighted assets ratio has shown a substantial increase. Also, State Bank of Travancore has shown steady a increase in bank deposits, NRI deposits and yield on advances with its phenomenal decreases in cost of deposits and its total advances.

Wednesday, 14 January 2015

New Set of Rules from RBI for Small Finance and Payment Banks

Reserve Bank of India (RBI) has released the new set of norms and regulations for the ‘small finance’ and ‘payment banks’. In the new rule, the RBI has said that these institutions must have a minimum of 100 crore as capital requirement to start off their savings accounts, provide fixed deposits, payments or remittent services which caters to the migrant labours, lower economic groups or small and medium scale industries etc.
The new rules comes on the back of the union budget in July which aimed at creating specialized banks for providing unique services. The new rule pertains to providing banking services to the local surrounding area, payment banks, and fixed deposit schemes, to lend money or serve as a remitter of money for small businesses, unorganized sectors, farmers, migrant labours, and the lower economic groups.

The promoters who can apply
Any existing non-bank Pre-paid Payment Instrument (PPI) issuers, individuals or professionals, non-banking finance companies, corporate business correspondents, mobile phone companies, super-market chains, companies, real sector cooperatives owned by residents or public sector organizations can open payment banks.
Residents or professionals with 10 years of experience in banking and finance or companies, societies owned and run by residents can open small finance banks. Even resident owned NBFCs, Micro Finance Institutions (MFIs), and Local Area Banks (LABs) can also set up small finance banks.
What can they do?
Payment banks can take deposits of up to 1 lac per person and issue debit cards but not credit cards. Can provide transaction services in partner through networks or join as business correspondent with other banks. They can also sell mutual funds and insurance or other no risk sharing simple finance products.
How can they deploy the funds?
Payment banks cannot lend money apart from the minimum capital amount; they will have to invest 75 percent of demand deposit balance money in government debt instruments for one year and save maximum of up to 25 percent in current and time or fixed deposits.
Capital money required
With a minimum of 100 crore, payment banks should not have more than 33.33 times its net worth as liabilities.
How much can the promoter contribute?
A promoter can have a minimum 40 percent stake for the five years from business commencement for payment banks. For small banks it shall start at 40 percent and gradually reduce to 26 per cent within 12 years from the date of commencement of business.
Foreign ownership
The foreigner ownership can go up to 49 percent of the total paid-up capital by the bank. The NRI individual can go up to 24 percent.
Prudential norms & transition path for small finance banks
With the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) applicable, these banks must lend 50 percent of its loan and advances of up to 25 lakh to priority sectors as named by the RBI.
Small banks can move up the ladder to universal banks by reaching the minimum capital requirements of universal banks and their net worth. The past performance will also be taken into consideration along with due diligence from the RBI.