RBI's new guidelines have given the domestic scheduled commercial banks a big fillip in their branch opening plans. As per the new guidelines, domestic scheduled commercial banks do not need explicit permission(license) to open new branches in cities with less than 50,000 population.
what this means for some of the banks
- PNB can open 440 more branches this year without bothering about RBI approval
- UCO plans to open 140 branches this year but would need licenses for only 89

Clearly, RBI wants the financial system to reach smaller towns & cities and this would be a big step in that direction.

The Raghuram Rajan Committee has recommended that RBI allow private companies to launch Local Area Banks (LABs) which will have a jurisdiction of 3 contigous districts.
This move which is aimed to increase the population under banking system will in all probability see a lot many financial institutions mushroom up in the semi-urban & rural areas.
The LABs will have an option to become small finance banks with a capital base below Rs 300 Crores if they show a good track record & want to raise their own deposits.

Have fun @ Deal4Loans while testing your Loans Knowledge.
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The Easy Loans Quiz

The Loans Quiz

Once you apply for a loan and fill in the form , the bank normally gives you two options to make a repayment either through (electronic clearing systems ) ECS or a cheque payment. Customers normally choose an ECS payment as it is hassle free. An ECS payment is done by the bank . It is a transfer of payment from one bank to another without the involvement of the customer.

We may miss our loan repayment at times due to unavoidable circumstances , like an unexpected medical expense may come up, loss of job , or any other unforeseen situation. Due to this default our credit rating gets affected. And in future availing of any kind of loan or credit card can be difficult.

Your bank loan is not sanctioned?Wonder why?? Because banks are now closely watching your credit history. This applies even if you have defaulted in paying a minimal sum on a loan taken several years ago.

Ready with the great business idea? Want to give it a concrete shape? All set to start the business? Once the details are being taken care of, the clients are set. Now you have to make the arrangement for finance which can set your business rolling...

Nowadays availing of a loan could be very simple and the best option to meet your needs. But are we take the loan for the right purpose? This is the right time to ask this question. The interest rates on most floating rate loans, be it home, car or personal, are up by almost 3-4%. On the other hand, cost of living has gone up thanks to rise in inflation.