UBI to inter-connect branches over BSNL network
Kolkata: United Bank of India (UBI) has chosen BSNL to connect its bank branches and regional offices. BSNL will provide the bandwidth required for 'Multi-Protocol Label Switching Virtual Private Network

.The bank has tied-up with BSNL for nationwide bandwidth and connectivity at a cost of Rs28 crore. The total project cost for the bank is around Rs60 crore and the project is being implemented by HCL Comnet.

The project will be implemented in four phases in three years and some 800 locations would be connected through Wide Area Network. In the first phase 364 branches were connected.

The bank said the rollout of VPN (Virtual Private Network) will allow the bank to introduce net banking and core-banking solutions.
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RBI imposes Rs5-lakh penalty on co-op bank
Mumbai: The Reserve Bank of India (RBI) has imposed a penalty of Rs5 lakh on New India Cooperative Bank, Mumbai for violation of the provisions of Banking Regulation Act, 1949.

During the course of statutory inspection of the bank, it was found that the bank had violated the Section 5 (ccv) of the BR Act, 1949 (AACS) by admitting a few cooperative societies as members. It had also granted credit facilities to a few stockbrokers in violation of RBI directive dated April 19, 2001 in this regard, the central bank stated.
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Aviva hikes capital base by Rs100-cr
New Delhi: Aviva Life insurance has increased its capital base by Rs100 crore, pushing up the total paid-up capital to Rs559 crore.

Aviva India managing director Stuart Purdy said, the current capital infusion will allow the company to further expand its operations, launch new products and reach out to the target audience.

The company said the increase in the capital base of Aviva will be in the ratio of 74:26 by Dabur and Aviva.

The company has increased its branches from 41 in December 2005 to 107, and increased its Bancassurance partners to 22. it is now reaching out to customers in 378 locations across the country.

Aviva currently holds 5.1 per cent market share in the insurance sector with new business accounting for Rs438 crore in 2005-06, it said adding that against the sector's annual gro wth of 32 per cent, the company has recorded an annual growth of 118 per cent in 2005-06 year on year.
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SBI to promote plastic money in tier II towns
New Delhi: State Bank of India has launched the 'Cash Back Programme' in select two tier towns to encourage the use of plastic money in these areas.

The bank will launch its 'Cash Back Programme' tomorrow in Chandigarh where the ATM cum debit card holders will get back the 3 per cent, 4 per cent, 5 per cent and 6 per cent or maximum of Rs10,000 on the transaction made through the ATM cum debit cards.

Studies conducted by the bank across the country revealed that though plastic money instruments were a big hit in the metros a large population in two tier towns is still not used to plastic money. So the bank decided to take the initiative to introduce the plan for one month (June 15 to July 16, 2006) to encompass the potential customers in the upcoming metros.

202 establishments in Chandigarh including restaurants and utility stores have points of sale terminals. In May, the customers of SBI in Chandigarh conducted 4,900 transactions through plastic cards aggregating Rs50 lakh.

He said this modern method of payment saves cost of bank. The transaction done through ATM/debit cards costs approximately one third of the manual transaction at bank branch.
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ESIC to hike wage ceiling for coverage
New Delhi: The board of the Employees State Insurance Corporation (ESIC) has decided to increase the wage ceiling for insurance coverage under the ESI Act from Rs7,500 per month to Rs10,000 per month. It has also decided to takeover all ESI hospitals so far run jointly by States and the Centre, subject to the willingness of the State Governments.

According to rough estimates of senior labour leaders, the move to increase the salary ceiling could benefit around 10-12 lakh workers. The decision would be sent to the Government for approval. The total extra cost for taking over the hospitals from the states would cost ESIC to the tune of Rs400-500 crore.
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