Key Rates of RBI Unchanged but Reserve Bank of India Raises SLR By 1%

Recently, the biggest news came from RBI. The bank repo rate is unchanged at 4.75%. The RBI CRR is also unchanged. The bank has raised nominal SLR only 1% from 24% to 25%. According to the experts, the minimal hike will not impact on liquidity.

The GDP forecast for financial year 2010 was also unchanged at 6%. On the home loans also, there is no impact with the announcement of RBI Monetary policy. On this occasion, Governor Subbarao told the chief executives of commercial banks at the central bank’s headquarters,

“As always, the Reserve Bank will endeavor to ensure price stability and anchor inflation expectations. It bears emphasis that the Reserve Bank is mindful of its fundamental commitment to price stability. It will continue to monitor the price situation in its entirety and will take measures as warranted by the evolving macroeconomic conditions swiftly and effectively.”

Bank rate unchanged with 6%, Repurchase rate unchanged with 4.75%, Reserve repurchase rate unchanged with 3.25%, Cash reserve ratio unchanged with 5% and SLR hiked only 1% on this occasion by RBI.

In April, the repo rate and the reserve repo rate were cut by 50 basis points. RBI had cut 5% to 3.5%.

The raise of SLR to 1% will be effect from November 7th, 2009. Currently, CRR is 5%, Repo is 4.75% and 3.25% respectively which are remained unchanged by the RBI.

These minor changes affect the BSE, Sensex, Nifty and NSE. Minor losses were seen that time with the opening of stock exchange. However, it is being said by the experts that there will be no impact on liquidation by the minor changes.

The minimum hikes in statutory liquidity ratio has made mandatory for the banks also to invest more funds in specified securities. This investment should be against of deposits and some liquid cash.

 

PNB to Introduce World Travel Card

There is good news for world travelers. Public sector bank, Punjab National is to launch World Travel Card. The bank has already introduced Global Credit Card earlier this year in February. Now, the company has planned to introduce World Travel Card for globetrotters.

Chief General Manager of PNB from credit card venture division, Ranjan Dhawan said to ET,

“It would be the safest and the convenient currency instrument to carry. Instead of carrying traveller’s cheque or global currency like Dollar or Pound, the World Travel Card holders would be able to withdraw local currency convertibles from any bank ATM of respective countries they visit. The holder has to pre load the card with the amount he would like to carry.”

The World Travel Card of Punjab National Bank will be introduced by November this year. This card would be pre-loaded with that amount which you want to carry along with on your tours of world.

You will be able to withdraw relevant currency of that country where you are traveling. This can be Dollar, Pound, Euro or Yen. It is just like a credit card that will be for tourists. The card will make your way easiest. Now, you needn’t to worry about currency converter. You are free to carry that currency which you want to carry. That will be relevant to your traveling country.

Yes, the World Travel Card is very good thing for world travelers but surly, it is not a new product. Recently, Reliance Group had also introduced the same card that was known as Reliance Money Travel Currency Card. The card was also for travelers. It was also equipped with multi currency.

So, there is no new offer by PNB as World Travel Card but surly, it is incorporated offer to make easier world traveling. The World Travel Card will be available for travelers only.

 

Register and Verify Credit Cards to Enhance Online Security

Online credit cards dealing are not easy now. From the security point of view, RBI has made more deep security for online credit cards dealing. The new rule is effective from 1st of August, 2009. According to the rule, you need to register and verify your credit cards to enhance one more step online security.

We have already faced credit cards fraud reports in the near time. Banks were suffered from fraud very much. There was no rule to reduce the deception but now it is available by RBI. Reserve Bank of India already announced that to use credit cards online there is needed one more step security.

During the purchasing and booking any services, we had to already fill – credit cards number, expiry date and three digits CVV security code number but now you have to know your secret 6 digits credit cards pin number also. Some banks had already made the mandatory of online login to buy or book any services. ICICI had made mandatory rule of debit cards numbers which are printed on cards, during the online transactions.

Banks had intimate to their customers when he made any transactions that exceed Rs 5,000 by SMS. It was also the rule of RBI. But all these were not effective for hackers.

So, we are talking about the new rule of RBI which is effective from 1st August, 2009. According to this announcement you need a credit card pin number also while any online transactions whether it is a service or purchasing.

The rule is same for Master cards and Visa cards both. If you are a holder of Master card then you should follow the link: http://www.mastercard.com/us/personal/en/cardholderservices/securecode/sign_up.html and have to choose your credit cards related bank. You have to register your name, credit card number, CVV number and a desired pin number which will able to make any online transaction. Visa cards holder have to follow this link: http://www.visa-asia.com/ap/sea/cardholders/security/activate.jsp and have to do same thing as Master card.

Once you complete the registration for the verification of online credit cards, you will be able to use your credit cards for any online purposes. It is mandatory and it will surly enhance the security against the fraud. I welcome the rule because it is simple and very effective against any fraud.

 

Credit Cards Reform to Reduce Rewards

Recently, the news effectively came in light that all credit cards companies are trying to reduce rewards points.

Credit Cards issuers are much frustrated due to huge losses and more expensive while, they are getting less attractive redemption points as rewards. They are attracting to the card holders that if they use cards more often to earn the redeem points, they can get cash back or to fly somewhere.

An analyst at FBR Capital Markets, Scott Valentin said,

“To the extent that interchange is cut, you will see a pretty lineal impact on rewards. You could see rewards being 10 or 15 percent more expensive for consumers. If you have a 25,000 reward points for an airline ticket, it might go to 35,000 or 40,000”

To cut rewards or on raise fees, Michael Kon who is the analyst of Morningstar Inc said to ET,

“You either cut rewards or raise fees, because you have to have a credit card industry that is viable and generates a reasonable return.”

According to the analysts, the credit card industry is not making money until 2011. However, companies are trying to great reform in this industry.

Above analysis clearly state that banks are busy in reducing credit cards redemption points. We always see to promote banks their cards along with some great offers. Customers also are going to make their payment frequently to get some redeem points. In these conditions banks should decide to cut the charges from their clients not from their customers.

Here all things are opposite; banks are busy in reducing redemption point which is benefits of customer. They are not targeting corporate or sales offices where the credit cards being used to purchase goods very frequently.

Things are clear here, it is the collaboration of banks and corporate world. Here is nothing for a customer who uses credit cards.

 

Reliance Group Introduces Reliance Money Travel Currency Card

Reliance Money announced to launch a multi-currency card that would offer facility of purchasing goods and services. It would be Visa enabled point-of-sale terminals and ATMs also globally.

It is Reliance Money Travel Currency Card. It has been launched in collaboration with Citibank. Reliance Money Travel Currency Card will target overseas travelers.

In a statement Reliance Money said to Economic Times, “Issued by Citibank, the card offers all the conveniences of plastic money by allowing customers to purchase goods and services by swiping the card over 13.5 million Visa enabled point-of-sale terminals worldwide and 900,000 Visa ATMs across the world.”

According to Reliance Money the Travel Currency Card would be for multi use – prepaid ATM access & point-of-sale-enabled card, loadable in US dollar, Euro and British pound.

CEO of Reliance money said to ET about it, “We plan to use our wide distribution network of over 10,000 outlets across 5,000 cities and towns in India to reach out to both retail and corporate clients.”

On this occasion Sandeep Bhalla who is the Business Manager (Cards) of Citibank India said, “This form of payment method provides ease of use, removes hassles of cashing traveler cheques and gives access to funds, anytime and anywhere.”

Already a month before Standard Chartered bank had launched a new credit card which will be known as SmartTravel FX. The card was also a gold pre-paid travel card with payment option of making payment in US dollar, Euro and Sterling Pound.

In credit cards industry Travel Currency Card is same like as SmartTravel FX. These credit cards will attract customers by their benefits and features. Reliance Money has entered with this card as a big competitor of Standard Chartered bank.

 

SmartTravel FX from Standard Chartered and LIC Credit Cards Announced to Launch

Last month, many banks had announced to launch credit cards by open a fixed deposit. Now, this month Standard Chartered bank has announced to launch a new credit card which will be known as SmartTravel FX. The credit card will be gold pre-paid travel card which will offer an option of making payment in US dollar, Euro and Sterling Pound.

Sai Narain who is the general manager of Standard Chartered’s from Consumer Transaction Banking said with Economic Times, “the new SmartTravel FX card combines extraordinary convenience with safety. The currencies in which the card is denominated are universally accepted, which makes the card valid across most countries Indians travel to.”

The card will offer pre-loaded subjects limits by Reserve Bank of India for international traveling. The credit card specially will fulfill the need of traveling across the world with the easiest option of currencies transaction.

On the other hand LIC announced to launch its own credit card this month. According to the B R Bhat who is the General Manager of Corporation Bank said that the date is not decided to launch but the LIC credit card will be launched soon.

The credit card was pre-decided to launch in January but due to some formalities completion it is taking some time. With the white-labelled credit card LIC has tied-up with Karnataka-based Corporation Bank.

Forms and contents have not been revealed of LIC’s credit card but it seems that the card will be for all purposes like other cards. However, SmartTravel FX has been launched with well decision by Standard Chartered bank.

In the credit cards market there are many option now to explore the growth rate so, big companies like LIC, Reliance etc. are coming with new offer for their customers. No doubt, LIC will get succeed in this industries also because it has own loyal customers and employees to use that.

 

Get a Credit Card by Open a Fixed Deposit

Recently, several banks announced to offer credit cards for new customer and existing customers on the opening of fixed deposits. The card will be known as fixed deposit cards (FD cards) and will be linked with fixed deposits.

Recently, ICICI which is the largest bank of India has announced to offer credit cards if a customer open fixed deposit. It is for that customer who doesn’t meet the conditions of Bank criteria. The card which will be offered by ICICI FDs account will be known as Fixed Deposit Instant Credit Card.

In this row Axis bank is also announcing the same features and scheme. There are many other banks also who are ready to launch the scheme but now they don’t want to comment on the scheme.

From HSBC, Ravi Subramanian who is the head of cards said in news, “this product not only secures the lending, but also allows banks to issue a credit card to a person who is otherwise not eligible.”

About the scheme banks are announced to open fixed deposit accounts from Rs 20,000 of minimum amount and Rs 3 lakh of maximum amount. The card limit will be 85% of the FD amount.

In this condition the FD holders can’t withdraw their amount to remain cards active. But they are able to withdraw their interests.

The T&C is very high with the card. If a customer is not able to pay his outstanding amount within 90 days then bank has the right to transfer amount from the FD.

From the foreign bank credit cards head said in news, “Many banks are toying with this idea with a view to expanding their credit card base. But it makes sense only for low-end customers.”

We can’t say how effective it will be in the future but it has own importance because it is the business plan by banks to make a longer time and loyal customer for their services.

 

Nationwide has changed its credit cards and debit cards policy

Recently, Nationwide bank has changed its credit cards and debit cards policy on the use of abroad. In their policy they had to not charge customers to use credit cards and debit cards on the use of outside Europe.

After a long period now they have decided to charge for their services if a customer uses his credit or debit cards outside the Europe. It will be charged by Visa.

Recently, it has been seen that Nationwide has charged 0.84% for every transaction to those customers who have used their cards outside of continental Europe and other countries along with Israel.

On the debit cards also same fees will be applied. From the July the charge will be raised by 1% for Visa.

According to the Google Press Association a Nationwide spokeswoman said, “It’s not our fee, it’s a third party fee. We have absorbed it up to this point. But we have to look at the product in the whole and the other benefits we offer our customers.”

By the policy the customers who are using Mastercard cards of Nationwide rather than Visa cards are not affected.

According to telegraph.co.uk Steve Blore of Nationwide said, “”As a prudent organisation, we have to maintain the balance between offering competitive products while ensuring they are sustainable in the long term, particularly in the current economic climate. Our cards remain commission-free when used anywhere in the world and customers using their cards in Europe will not receive any charges, as the Visa fee does not apply here.”

It is unexpected news for the users of credit cards and debit cards of Nationwide bank. It is one of the biggest financial building societies of Europe. In spite of the charge by Nationwide bank it is lower than others credit and debit card providers because they typically charge commission about 2.75% on abroad transactions.

 

Training for ICICI Credit Cards Job

I have already told you my situation and experience about ICICI credit cards job in my previous post. Now, I want to let you know in details about my training for ICICI credit cards job.

Our 1st day was introductory class with 50 guys. At 1st our trainer asked about us in short then he proceeds to the training. In the beginning of training he asked about ICICI but no one replied. I was known about ICICI but wanted to listen him so, I remained silent. He surprised that no one knows about ICICI. But I was not surprised because I was aware that all are from small villages of India and everyone has requirement of an urgent job so, they can do anything for job.

He started, “ICICI is one of the largest banks of India in private sector. ICICI mean as Industrial Credit and Investment Corporation of India. It has large network in all over India of its branches and ATMs. 1st time in 1994 ICICI established Banking Corporation and later it was renamed as ICICI Bank Limited. By the formal establishment it started its services taking deposits, credit cards, car loans etc. In 2001 it acquired Bank of Madura and became India largest bank in private sector.” It was an introduction for us by our trainer to attach with ICICI bank’s credit card services. It was for trust towards ICICI bank.

Second day, there was only 30 guys in 50. He started, “Credit is the trust of a person by a service or system. By that credit a system gives credit cards to use that while you have no money.”

He told us to say customer, “ICICI credit cards are free for whole life. It has no annual charges, no interest rate, no hidden charges etc. If you get a credit card of ICICI then you will be an insured person by default. ICICI offers death insurance if you crash in airplane or in train. A condition is applied with this that your ticket should book with your credit card. Any customer, who uses their credit cards to purchase any product, will get credit of 50 days. Within 50 days if a customer pays their credit amount then he would be bound to pay any interest and other amount. If he doesn’t pay then in next time he would have to pay 2.3% interest rate on whole purchasing amount”

It was great offer by ICICI credit cards to attract any customer but it was only in theory because there are many banks with lots of offer with their credit cards also. So, it was competitive age of banking services.

Last day we were only 15 guys in our training. He started, “you have to collect some information and documents if a person agrees for credit cards. You have to collect one ID card, 1 address proof, 2 photos and one valid phone number.”

All these things were in our training to convince a customer but reality was far away from theory. We had no way to convince customer. We had theory but we had no practice to convince a customer to make ICICI credit cards.

 

My Experience with ICICI Credit Cards Job

When I came in Delhi I started to search a suitable job for me but I was unable to find out myself. That time one of the friends recommended me to do marketing job. I was absolutely unaware from the marketing job. But I decided to do. He talked to his another friend who was the manager in a DST of ICICI credit cards branch.

The DST was far away from my home. That time I had no any business so pocket was also empty. My friends had same problem. That time in that DST I joined with my 3 friends. All are from small towns and village.

We had not enough money that time to travel by bus on our work station. However, our manager has satisfied us to promise of 4500 Rs. salary per month. We had target to get about 30 credit cards interested customer in a month. If we succeed then we get salary otherwise after 3 months we will be fired. However, in a month we had to submit about 15 credit cards interested person in a month at any cost otherwise we had to loose our salary also.

We got 3 days training in that institution about the credit cards and credit cards making process. In these training periods we felt that it is very hard to convince customer about the making of credit cards. After having completed 3 days training we got a job by our manager and team leader with the lecture of making money. He said, “If you work here consciously, smartly and very hard then you can get money as much as you want in a month. See, I am the manager here and in just 2 years in this field I get more than 60 thousands in a month. My consistency has made me a rich person. You have a great chance to boost your career in marketing field. So, start your work from the day and get convinced customer to make a credit card.”

We were inspired with that lecture but that inspiration was only for some days. Next day we had to go in a market near a bank or ATM machine and had to convince customer to make credit cards of ICICI.

I went 1st day and that was my last day because no one ready to listen our talk. Some guys like our already there to convince customer.

We were very distressed and after that day we never turned around the ICICI DST to submit the firm of credit cards.

During the training period we learned about credit cards. Credit is the trust of yours character which a bank recognized and give you some money on that credit to expend for your requirements. ICICI credit cards give you major facilities. If you purchase something from credit card then you will get the credit of 50 days credit to pay your money.

Before make a credit cards a bank decide about negatives and positives areas. All the colonies, villages and unauthorized areas are in the negative categories of banks. Call center employees, software company employees and this type of irregular employees are also in the negative categories.

After this banks need some documents also to get a person credit card. If you are employed then need a salary slip. A work number and home contact number are needed. An address proof and an identity proof are also needed.

After the getting trained I thought the job is as hard as to get a people credit cards in India. These are the banks which decide who are capable to pay credit cards bill after that they make credit cards. ICICI credit cards making job was not my 1st job however I learned many thing about the banks and credit cards.