Indian Banks

For micr codes with bank names and state wise – Click Here

What is the difference between IFSC Codes and MICR Codes ?

In the Structured Financial Messaging System (SFMS), the Indian Financial System Code (IFSC) is being used as the addressing code in user-to-user message transmission. The Payment System Applications such as RTGS, CFMS and NEFT developed by the Reserve Bank of India (RBI) use these codes. The code consists of 11 characters – first 4 characters (4!A) represent the entity; fifth position has been defaulted with a ’0′ (Zero) for future use; and the last 6 characters (6!X) denote the branch identity.

IFSC is being identified by the RBI as the code to be used for various payment system projects within the country, and it would, in due course, cover all networked branches in the country. In due course, when all bank branches participate in electronic payment systems, they would need to have a single identifiable unique code and IFSC would serve the purpose effectively.

and the Magnetic Ink Character Recognition, or MICR, is a character recognition technology adopted mainly by the banking industry to facilitate the processing of cheques.

Popularity: 2% [?]

Popularity: 1% [?]

Ref.No.IDMD /2914/08.02.033/2009-10

January 1, 2010

All Scheduled Commercial Banks /
All State Co-operative Banks/All Scheduled Primary
(Urban) Co-operative Banks /All Financial Institutions/
All Primary Dealers

Dear Sirs,

Auction of Government of India Dated Securities

Government of India have offered to sell (re-issue) of  (a) “7.32 percent  Government Stock 2014 ” for a notified amount of Rs.4,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(1)-W&M/2009 dated January 1, 2010, (b) “6.90 percent Government Stock 2019” for a notified amount of Rs.3,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(1)-W&M/2009(i) dated January 1, 2010 and (c) “8.28 percent Government Stock 2032” for a notified amount of Rs. 3,000 crore (nominal) through a price based auction using uniform price method vide Notification No.4(1)-W&M/2009(ii) dated January 1, 2010. The Reserve Bank of India at Mumbai will conduct the auctions on January 8, 2010. The salient features of the auctions and the terms and conditions governing the issue of the Stocks are given in the Notifications (copies enclosed), which should be read along with the General Notification F. No.  4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.

2. We wish to draw your attention, in particular, to the following:

(i) The Stocks will be issued for a minimum amount of Rs.10,000/- (nominal) and in multiples of Rs.10,000/- thereafter.

(ii) In all the auctions, Government Stock up to 5% of the notified amount of sale will be allotted to the eligible individuals and institutions under the Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (enclosed with the notifications F. No.4 (1)-W&M/2009, F. No.4 (1)-W&M/2009(i) and F. No.4 (1)-W&M/2009(ii) all dated January 1, 2010). Each bank or PD on the basis of firm orders received from their constituents will submit a single consolidated non-competitive bid on behalf of all its constituents in electronic format on the Negotiated Dealing System (NDS).  Allotment under the non-competitive segment to the bank or PD will be at the cut-off price that will emerge in the auction on the basis of the competitive bidding.

(iii) Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 8, 2010. Bids in physical form will not be accepted except in extraordinary circumstances such as general failure of the NDS system. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.

(iv) An investor can submit more than one competitive bids at different prices in electronic format on the Negotiated Dealing System (NDS). However, the aggregate amount of bids submitted by a person in an auction should not exceed the notified amount of auction.

(v) On the basis of bids received, the Reserve Bank will determine the minimum price up to which tenders for purchase of Government Stock will be accepted at the auctions. Bids quoted at rates lower than the minimum price determined by the Reserve Bank of India will be rejected. Reserve Bank of India will have the full discretion to accept or reject any or all bids either wholly or partially without assigning any reason.

(vi) The result of the auctions will be announced on January 8, 2010 and payment by successful bidders will be on January 11, 2010 (Monday).

(vii) The Government Stocks will be issued by credit to Subsidiary General Ledger Account (SGL) of parties maintaining such account with Reserve Bank of India or in the form of Stock Certificate. Interest on the Government Stock will be paid half-yearly.

(viii) The Government Stocks will be repaid at par on October 20, 2014, July 13, 2019 and February 15, 2032, respectively.

(ix) The Stocks will qualify for the ready forward facility.

(x) The Stock will be eligible for “When Issued” trading during the period January 4-8, 2010 in accordance with the guidelines on ‘When Issued’ transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI /2006-07/178 dated November 16, 2006 as amended from time to time.

Yours faithfully,

(Rajendra Kumar)
Deputy General Manager

Popularity: 1% [?]

Government of IndiaMinistry of FinanceDepartment of Economic AffairsBudget Division
New Delhi, dated January 1, 2010
NOTIFICATIONAuction for Sale (Re-issue ) of ‘7.32 per cent Government Stock, 2014′
F. No.4 (1)-W&M/2009: Government of India hereby notifies sale (reissue) of ‘7.32 per cent Government Stock, 2014’ (hereinafter called ‘the Stock’) for an aggregate amount of Rs. 4,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2    The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using uniform price auction method.
Allotment to Non-competitive Bidders
3.   The Government Stock up to 5 % of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex).
Place and date of auction
4.    The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on January 8, 2010. Bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 8, 2010. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.
When Issued Trading
5.   The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.
Tenure
6     The Stock will be of five-year tenure commencing from October 20, 2009. The Stock will be repaid at par on October 20, 2014.
Date of issue and payment for the stock
7.   The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on January 8, 2010. The payment by successful bidders will be on January 11, 2010, i.e., the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of original issue i.e., October 20, 2009 to January 10, 2010.
Interest
8. Interest at the rate of 7.32 per cent per annum will accrue on the nominal value of the Stock from the date of original issue and will be paid half yearly on April 20 and October 20.
By Order of the President of India
(Shaktikanta Das)Joint Secretary to the Government of India

Popularity: 1% [?]

Government of IndiaMinistry of FinanceDepartment of Economic AffairsBudget Division
New Delhi, dated January 1, 2010
NOTIFICATIONAuction for Sale (Re-issue ) of ‘8.28 per cent Government Stock, 2032’
F. No.4 (1)-W&M/2009(ii): Government of India hereby notifies sale (reissue) of ‘8.28 per cent Government Stock, 2032’ (hereinafter called ‘the Stock’) for an aggregate amount of Rs. 3,000 crore (nominal). The sale will be subject to the terms and conditions spelt out in this notification (called ‘Specific Notification’) as also the terms and conditions specified in the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 issued by Government of India.
Method of Issue
2. The Stock will be sold through Reserve Bank of India, Mumbai Office, Fort, Mumbai- 400 001 in the manner as prescribed in paragraph 5.1 of the General Notification F. No. 4 (13)–W&M/2008, dated October 8, 2008 by a price based auction using uniform price auction method.
Allotment to Non-competitive Bidders
3. The Government Stock up to 5 % of the notified amount of the sale will be allotted to eligible individuals and institutions as per the enclosed Scheme for Non-competitive Bidding Facility in the Auctions of Government Securities (Annex I).
Place and date of auction
4. The auction will be conducted by Reserve Bank of India, Mumbai Office, Fort, Mumbai-400 001 on January 8, 2010. Bids for the auction should be submitted in electronic format on the Negotiated Dealing System (NDS) on January 8, 2010. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.30 p.m.
When Issued Trading
5. The Stock will be eligible for “When Issued” trading in accordance with the guidelines issued by the Reserve Bank of India.
Tenure
6. The Stock will be of twenty five-year tenure commencing from February 15, 2007. The Stock will be repaid at par on February 15, 2032.
Date of issue and payment for the stock
7.  The result of the auction shall be displayed by the Reserve Bank of India at its Fort, Mumbai Office on January 8, 2010. The payment by successful bidders will be on January 11, 2010 i.e., the date of re-issue. The payment for the Stock will include accrued interest on the nominal value of the Stock allotted in the auction from the date of last coupon payment i.e., August 15, 2009 to January 10, 2010.
Interest
8. Interest at the rate of 8.28 per cent per annum will accrue on the nominal value of the Stock from the date of last coupon payment and will be paid half yearly on  February 15 and August 15.   By Order of the President of India
(Shaktikanta Das)Joint Secretary to the Government of India

Popularity: 1% [?]

Reserve Bank of India is likely to hike the cash reserve ratio (CRR) – the portion of deposits banks have to keep with the central bank – by 25-50 basis points without waiting for the scheduled review of the monetary policy in January 2010. The CRR remains unchanged since January 17, 2009 when it was cut 50 basis points to 5 per cent.
Duvvuri Subbarao (RBI Governor) met Pranab Mukherjee(Finance Minister) to discuss the macro-economic situation after the latter presented the mid-year review of the Indian economy today in Parliament . According to Mukherjee’s the growth outlook for the full year is likely to be 7.75 per cent or even higher.
As per, the finance ministry “ base effect gives , rise in the price index. Therefore unlike the finance ministry, the RBI is also worried about rising prices.
Inflation for November rise from 4% to 4.78%, which was 1.34% in the previous month.

Popularity: 1% [?]

The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century.

The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

The Bank was constituted to
* Regulate the issue of banknotes
* Maintain reserves with a view to securing monetary stability and
* To operate the credit and currency system of the country to its advantage.

The Bank began its operations by taking over from the Government the functions so far being performed by the Controller of Currency and from the Imperial Bank of India, the management of Government accounts and public debt. The existing currency offices at Calcutta, Bombay, Madras, Rangoon, Karachi, Lahore and Cawnpore (Kanpur) became branches of the Issue Department. Offices of the Banking Department were established in Calcutta, Bombay, Madras, Delhi and Rangoon.

Burma (Myanmar) seceded from the Indian Union in 1937 but the Reserve Bank continued to act as the Central Bank for Burma till Japanese Occupation of Burma and later upto April, 1947. After the partition of India, the Reserve Bank served as the central bank of Pakistan upto June 1948 when the State Bank of Pakistan commenced operations. The Bank, which was originally set up as a shareholder’s bank, was nationalised in 1949.

An interesting feature of the Reserve Bank of India was that at its very inception, the Bank was seen as playing a special role in the context of development, especially Agriculture. When India commenced its plan endeavours, the development role of the Bank came into focus, especially in the sixties when the Reserve Bank, in many ways, pioneered the concept and practise of using finance to catalyse development. The Bank was also instrumental in institutional development and helped set up insitutions like the Deposit Insurance and Credit Guarantee Corporation of India, the Unit Trust of India, the Industrial Development Bank of India, the National Bank of Agriculture and Rural Development, the Discount and Finance House of India etc. to build the financial infrastructure of the country.

With liberalisation, the Bank’s focus has shifted back to core central banking functions like Monetary Policy, Bank Supervision and Regulation, and Overseeing the Payments System and onto developing the financial markets.

Popularity: 1% [?]