Restriction on Free Access of Third Party Bank ATMs

Earlier, in April this year, RBI had brought out a directive, which gave the consumers a freedom to use ATMs of third party banks, without attracting any penalty. This was being viewed a a great start to the Financial Year and more such consumer-friendly reforms were expected over the coming months. But the news of restriction of this freedom has come as a shocker to the Indian consumers.

August 09, Reserve Bank of India (RBI) has asked the banks to impose restrictions on third part ATM usage from the middle of October 09. This step has been taken, keeping in mind the recommendations of an Industrial lobby, IBA (Indian Bank's Association).

As per the new directive, savings account holders will get 5 free third party ATM transactions per month, with a cap on withdrawal amount of Rs. 10,000 per transaction. Also, this facility won't be extended to the Current Account holders.

Thus, from now on the freedom of entering into any Bank's ATM, other than in which the customer holds an account will become restricted from 15th of October 09. This step is seen as the result of the influence IBA has over RBI, since it made RBI make a 180 degree turn on the directive rolled out by them at the start of the financial year, which was being perceived as one of the best customer-friendly moves by the central bank of the country till date.

This step of RBI has come up as a roadblock towards the implementation of new Basel Reforms that we were so eagerly waiting for. We hope that the RBI would keep in mind the consumer sentiments and give it another thought before the implementation of this new directive, or atleast increase the no. of transactions so that the effect on common man is restrained.

Exit Load waiver give MF Companies a run for their money

Ever since SEBI directive came to waive off the entry load for all Mutual Funds, Asset Management Companies (AMC) are in a hurry to close their NFOs before the deadline of 01st of August 09. Most of the comanies are closing their New Fund Options on 31st July 09. Even though the directive says that the NFOs opened before 01st of August can continue to charge entry load for the same, but the AMCs want to play a safe game and to avoid any complications leading to further confusion among investors, they are closing their NFOs by the end of July.

Even when SEBI had waived off entry load for direct applications, the AMCs had resorted to a similar behavior, but their concerns were brought to rest when the no. of direct applications accounted for only single digit percentage of all. At that time, some of the organizations had gone on to express their displeasure, stating that their objective of entering the rural market itself will be defeated by this step taken by SEBI.

Anyways, for a lazy individual investor like me who finds it too much of a task to send direct applications, its a welcome step by SEBI and it will be a further help in increasing my market investments.

A proud moment for India: Indra Nooyi named "CEO of the Year 2009"

Indian women have done us proud again!!
Indira Nooyi, the Chairman & CEO of Pepsico has been named the "CEO of the Year 2009" by Global Supply Chains Group (GSCG). Ever since joining Pepsico, she has been instrumental in various CSR (Corporate Social Responsibility) initiatives by her company. She's also kept the cause of "Climate Change" in her top agenda and has contributed a lot for the same. She's a true Global Citizen, setting high benchmarks for the corporate world.

Its very heartening to see that the women of India are making us proud in all the walks of life; hope this helps in changing the views of our fellow countrymen who don't consider women on par.

Cheers again to Ms. Nooyi for yet another feather in her cap!!

Patna better than Mumbai to start business

I came across this interesting article which I feel is a must share with you all....

This may come as a big surprise to some of you, but a World Bank study says that Patna is ahead of Mumbai when it comes to the ease of starting a business.

According to the World Bank ranking announced on Tuesday, Patna is second only to New Delhi in this regard, but way ahead of Mumbai.

Of the 17 cities that figured in the World Bank and International Finance Corporation's 'Doing Business In India 2009' report.

Of the 17 cities considered, Patna was ranked 14th, above Chennai, which stood at 15th position, while Kolkata was at the bottom of the list. Mumabi was place 16th, way below many Indian cities.

Starting a business measures the necessary steps to enable a small or medium enterprise in general commercial or industrial activities to operate legally in 17 Indian cities -- including permits, inscriptions, notifications and inspections.

The report further said doing business is the easiest in Ludhiana, followed by Hyderabad, Bhubaneswar, Gurgaon, Ahmedabad, New Delhi, Jaipur and Guwahati.

It is easier to pay taxes in Ludhiana, Jaipur and Noida, while it is difficult to do so in Chennai, Kolkata and Patna. The report ranks the cities based on seven parameters - starting a business, dealing with construction permits, registering property, paying taxes, trading across borders, enforcing contracts and closing a business.

Strangely, the World Bank rankings do not take into account the macroeconomic conditions, infrastructure, workforce skills or security.

The report said that it is easier to start and operate business in India than it was three years ago in many large cities of the country.

It said starting a business is the fastest in Mumbai and Noida, while in cost terms, business start-up is least expensive in Patna.

Paying taxes records all taxes and mandatory contributions that a medium-sized company must pay as well as measures the administration burden of paying taxes and contributions.

According to the report, that it is the easiest to export and import goods from Bhubaneswar, while it is most difficult from Gurgaon.

The report also said that compared to economies world wide, cities in India lag most in the ease of closing a business and paying taxes.

In India, where more than 90 per cent of jobs are in the informal sector, regulatory reforms can help businesses operate efficiently in the formal sector, it said.

"Reforms that cut red tape, clarify property rights, and streamline regulatory compliance, can yield big payoff for firms and workers," World Bank group financial and private sector development acting vice-president Penelope Brook said in a CII function.

Source: http://business.rediff.com/slide-show/2009/jun/30/slide-show-1-patna-better-than-mumbai.htm

Personal Vendetta???

Tech Mahindra buying out Satyam is old news now. Infact, Satyam's bee rechristened as Mahindra Satyam (How Innovative!!). Satyam also has shown profits for last FY's Q3 results. Its shares are hitting circuits, its bagging big deals. It seems like everything is getting back to normal in this IT outfit. But then suddenly, there's news of Satyam introducing Virtual Pool Program (VPP). ITs nothing but a sophisticated way of kicking out a large chunk of its non-billing associates. Associates who have been transferred to VPP will only be getting Basic & PF components of their slary, which is about 1/4th of their actual salary. Also, they will be in the VPP for the next 3-4 months; hwat happens after this time period is over, is still a secret that only the top officials know about. People weere expecting some interference, but all that was brought to rest when one of the Govt. representatives said that their work was done and now it was upto the officials of TechMahindra & Satyam to take it foreward from here.
In the first list, around 10,000 people got the mail confirming their transfer to the VPP. Another list of around 14,000 associates is expected to come pretty soon. The kind of treatment these associates are getting, all because of their being a part of the company, whose top management was involved in a fraud will make people think twice before shifting to the IT industry. My friends have reported me that their login to the various systems had been cutoff even before their receiving the notice. Also, by informing the employees of their transfer to VPP (read termination) via bulk mails will only tarnish the already soiled image of the company.

Now, Vineet Nayyer could rejoice on the fact that his company has been able to acquire one of the gems of the India IT industry, but with these harsh steps, I don't think he's going to earn many friends in the Industry. Atleast he can count me out of his friends' list. I feel he's got a personal vendetta against me. Earlier he terminated one of my siblings from his company Tech Mahindra, and now he's taken all the pains to acquire Satyam, so that he'd be able to transfer my newly wed wife to the VPP. I think he's gone too far this time and has eaten more than he can swallow. I am going to bring an end to this for once and for all. I vow to avenge my personal loss and make him pay for it. Hope you all will wish luck to me (Atleast I can expect support from the entire bench strength of the VPP)