Lets read the article:: http://www.thehindu.com/business/Industry/article3727674.ece?homepage=true
Interview of IOB chairman about Indian Banking...
@[597680:matmw] thanks for this info 😃
Financial Inclusion could be important. No need to know about it in Detail. But the reason being: recently, there was a symposium at Bhubaneshwar. Details at RBI website:
http://rbi.org.in/scripts/BS_SpeechesView.aspx?Id=711
symposium on “Financial inclusion in Indian Economy” organized by the Indian Institute of Public Administration, Bhubaneswar on June 30, 2012-- Presided by HR Khan
Words he has used in his speech that are important: Lets make sure we use them in case we are asked these questions:
" to ensure growth with equity" (Please note that equality and equity are two different concepts. Equality is: Same outcome for all (eg: 2200 calorie food for all). Equity is: Same quality of outcome for all (eg: more cal. count for laborers and less but nominal for IT professionals)..)
"objective of inclusive growth"
Access to finance -is it a public good? Khan says: "A good is considered a public good if it meets the conditions of 'non-rivalness' in consumption and non-excludability".
What he means is: YES- It is public good.
Lets not complicate things: What he is trying to say is: Same thing must not be sought by all but it is also essential for all. Eg: Money- is sought by all- but also a corporate CEO doesn't want to grab a daily-wager's Rs 32/day (Thank you- Ahluvalia Sahab) livelihood. Each one has his own means of earning.
Khan says: "Financial inclusion efforts do have multiplier effect on the economy"
What happens is:
we are bringing the production sector under Financial Inclusion -> production increases->sustainable development -> production meets local (national) demand -> Producers profit -> Their saving increase -> Investment increases in banks -> their std. of living increases and they get access to assets -> they become capable of participating in macro economic activities -> Govt. profits for leakage in welfare benefits are tapped.
Challenges to Financial Inclusion: AML/CFT (What the heck is that???)
AML: Anti-Money-Laundering (Changing black to White money is Money Lundering-- Paise ko laundry bhejna...)
CFT: Combating financing of terrorism (Like HSBC bank scandal @ Mexico that happened recently)
How are these challenges to Fin. Inclusion? Many people from rural background find KYC norms very elaborate. So there is a floating argument that we need to "Dilute" KYC norms to help bring about Fin. Inclusion. But if you do that then AML/CFT preventions become the problem! (Get real! Anshans are not gonna solve these issues! )
Khan has a great point though: He says- When every one who is capable of participating in financial activities of the country participate - we can make the monetary policies more effective. This will reduce inflation and reduce dependence on "informal sector" (lobbyists?--and others... but use the word "informal sector" which he has used). ("It also reduces reliance on the informal sector which tends to dent the impact of monetary policy decisions.")
He suggests methods to enhance Financial inclusion:
We measure Fin Inc based on: Financial Inclusion Index -- this is based on 3 dimensions:
-> banking penetration (ratio of bank accounts to the total population)
-> availability of the banking services (number of bank outlets available per 1000 people)
-> usage of the banking system (volume of outstanding deposit and credit as proportion on the net district domestic product) -- Phew! (many categories he's given... Lets's not show we know more in case they start drilling us!)
What banks are doing? Establish the basic right of every person to have access to a bank account.
How they do it? Khan brilliantly speaks about 5 As (This stuff is super cool!)
-> Adequacy and Availability of financial services for all
-> Awareness of such services
-> Affordability and Accessibility of the appropriate financial products
So what mechanisms are available to address the 5 As?
Regional rural banks (RRBs), urban co-operative banks (UCBs), primary agricultural credit societies (PACS) and post offices; self-help groups (SHGs) and Micro Finance Institutions (MFIs)
Banks follow 2 approaches: Minimalist approach- credit/remmittance etc to financially excluded people and Expanded approach- Apart from banking solns. general insurance, health insurance, micro-pension, mutual fund etc.
Innovation in the Fin Inc sector: SHG-Bank Linkage Programme (SBLP)- began in 1980s. In '92, NABARD began linking with SHGs.
"The model was also successful in providing solution to the twin problems faced by banks, i.e., low recovery of loans in rural areas and high transaction costs in dealing with small borrowers at frequent intervals".- says Khan (Seriously cool!)
What else have they done?
(1) Business Correspondents (BCs) for ensuring door step delivery of financial products and services. (individuals like retired bank/government employees, kirana/fair price shops, insurance agents, operators of common service centres, etc.), have been brought in under the BC model )
(2) NFA- No-Frills Account- That is- either nill or low balance accounts
(3) Kisan credit cards
(4) Upgrade technology- ATMs, mobile technology, Aadhaar Enabled Payment Systems (AEPS), etc.
(5) Mobile Banking (Don't forget- India is 2nd largest Mobile user in the world!) -- Inter Bank Mobile Payment Service (IMPS), an instantaneous 24x7 electronic funds transfer system has been developed by the National Payment Corporation of India (NPCI).
Problems in implementing: Security concerns/Infrastructure problems (Where is the power?? 8-12 hours power cut!) -- many models are needed for each region has peculiar problem... A village in Rajasthan is not the same as a village in Assam!
What is needed? More tie-ups with MIs etc., Innovative solutions, creation of banking awareness (IMP!!!!-- Reserve Bank of India is in the process of launching electronic Banking Awareness And Training (e-BAAT) programmes to increase awareness about technology enabled financial services.!!!), mind-set, cultural and attitudinal changes at the grass-root levels and user friendly technology.
Think this is enough-- but if you need to learn more- go through the speech in the RBI link.
Note that: none of these is mine-- all are simplification of what Mr. Khan has said in his speech! He has said some damn good points!
@[597680:matmw] dude! great effort!
Thanks!
@[597680:matmw] thank you for this but still looks complicated. 😃 but really a great work
can anyone suggest some institutes in delhi which take mock interviews and specializes in interview preparation ..........
Guys how many of knew that u can only apply for that zone from where u have done your graduation ........ I didnt knew and as of now my interview stands cancelled ........ 
@[538847:nitinakamortal] have u received any mail? ur intv zone?
I have done my graduation from Noida and applied for mumbai zone ........ I called them today they told that they are in process of sending notifications to selected candidates who are not eligible for interviews. So if u've done the same mistake u'll hear from them soon.
anybody on 20th chennai
hope i m the first batch
anyone there on the day
@[538847:nitinakamortal] sabse pahle mumbai region k candidates ko hi mail gaya not others.
May b ....
Actually it is really an unfortunate thing that people who cleared the written exams are being sent such cancellation mails! But I don't understand what is the necessity to study in the region of application! NOTE : The candidate should have passed the qualifying examination from the University/Board within the Recruitment Zone of the concerned Office to which he/she is applying. Name of office Recruitment Zone 1. Ahmedabad Gujarat and Union Territories of Daman and Diu 2. Bangalore Karnataka 3. Bhopal Chhattisgarh and Madhya Pradesh 4. Bhubaneswar Orissa 5. Chandigarh Haryana , Himachal Pradesh, Punjab and Union Territory of Chandigarh 6. Chennai Tamil Nadu and Pondicherry 7. Guwahati Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura 8. Hyderabad Andhra Pradesh 9. Jaipur Rajasthan 10. Jammu Jammu and Kashmir 11. Kanpur/ Lucknow Uttar Pradesh and Uttarakhand 12. Kolkata West Bengal, Andaman and Nicobar Islands and Sikkim 13. Mumbai Maharashtra (excluding Vidarbha Region) Goa and Union Territories of Dadra and Nagar Haveli. 14. Nagpur Vidarbha Region of Maharashtra State, Madhya Pradesh and Chhatisgarh 15. New Delhi Delhi and Haryana. 16. Patna Bihar and Jharkhand 17. Thiruvananthapuram Kerala and the Lakshadweep Islands This condition, however, is not applicable to the Candidates belonging to Ex-servicemen / children of Ex-employees of RBI. http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2502 But seriously guys! What's the point of this whole condition??
But henceforth- whatever exam it may be- we must carefully go through the advertisement!
RBI has mentioned this point in a note beneath the Edu: Qualification Requirement...
Scheduled Tribe candidates residing in Vidarbha Region of Maharashtra are eligible to apply for vacancies in Mumbai Office.
But main thing is that only mumbai region people are getting these mail not other regions...so it is adding more confusion
@[322138:karthideepa]
yes... i think u r the first batch... how many marks do u except....what is ur category...how is ur preparation going on...
kisi ka interview hua kya? Eager to see inerview experiences here.......................
Dont forget to read about the new priority sector lending guidelines:
Foreign banks having more than 20 branches also come under this purview now...
Standard and Charterd Bank, Citi Bank, HSBC and Royal Bank of Scotland have more than 20 branches in India.
Frnz plz post ur interview experiences asap!!
@[525624:abhibharti] and @[534789:neelk18] have their interviews on 13th and 14th aug respectively. Waiting for them to share their experiences. They have contributed their best to this thread and I hope they will help by posting their interview experiences too!