BREAKING NEWS

BREAKING NEWS ""**If we want PSU bank to compete with Pvt bank ---Give them a break Saturday first*** DA FOR BANKER FROM FEBRUARY 2023 SEE DETAILS CHART FOR OFFICER AND WORKMAN***Outcome of Today’s meeting with IBA - 31.01.2023***All India Bank Strike 27.06.2022******PLEASE VISIT INDIAN TOURISM CULTURE & HERITAGE *****NITI Aayog finalised names of Two public sector banks and one general Insurance Co. for privatisation****No economic reason to privatise PSU banks---post date 24.05.2021******Mobile users may soon be able to switch from postpaid to prepaid and vice versa using OTP*****India May Privatise or Shut 46 PSUs in First 100 Days, Says NITI Aayog's Rajiv Kumar----We should start with the banks*****Expected DA for Bank Employee from August 2019 is 24 slab to 29 slab*****RTGS time window from 4:30 pm to 6:00 pm. with effect from June 01.06.2019******WITHOUT CUSTOMER'S CONSENT BANK CAN NOT USE AADHAAR FOR KYC ----RBI***** Salient features of Sukanya Samriddhi Account---Who can open and how?******OBC posts 39% rise in Q4 profit, OBC readt tWITHOUT CUSTOMER'S CONSENT BANK CAN NOT USE AADHAAR FOR KYC ----RBI o take another Bank--MD MUkesh Jain*******DA FOR BANKER FROM NOV 2018 IS INCREASE 66 SLAB I.E 6.60%****40,000 STANDARD DEDUCTION IN YOUR TAX - IS A GREAT DRAM/BLUFF BY JAITLY SEE DETAILS+++++++Cabinet approves plans to merge PSU banks-The final scheme will be notified by the central government in consultation with the Reserve Bank. post date 23.08.2017****IBA to restrict the negotiations on Charter of Demands of Officers' Associations up to Scale-III only post dated 07.07.2017*****

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BREAKING NEWS ""**If we want PSU bank to compete with Pvt bank ---Give them a break Saturday first****Outcome of Today’s meeting with IBA - 31.01.2023*********

Friday, September 29, 2017

Expected DA for Bank Employees from November 2017 may be 40 slab i.e 4%

Consumer Price Index (CPI) for the month of August 2017 has also been published by Labour Bureau, which is 285 i.e., at the same level as that for the month of July 2017. And if CPI for the next months i.e., September 2017 remains same at the same level (285) as that for the month of July 2017 and August 2017, DA slabs for the next quarter, November 2017 to January 2018 will be 516 i.e., 51.60 %. That means, bankers’ DA from November 2017 is expected to increase by 3.80%  from the present quarter (which is 47.80%). Dearness Allowance for bankers had declined consecutively for previous two quarter before the same increased by 2.20% during the quarter Aug-Oct 17.

  1. On assumptions that CPI would remain at least same as of Aug17 for the next month i.e.   Sep'17. In this situation the expected (tentatively) increase in DA Slabs would come to 38 slabs.(on this assumption the total tentatively revised DA slabs would be 516 i.e. 51.60%)
  2. On assumptions that there would be increase of one point in CPI data for the month of month  Sep'17. In this situation the expected (tentatively) increase in DA Slabs would come to 44 slabs.(on this assumption the total tentatively revised DA slabs would be 522 i.e. 52.20%)
  3.  Due to petrol and other fuel price increases  and other pulse and food grian price also inreasing order  DA may be increases  more than 45 slab
As per our experience and present market trend Consumer price index for the month of  August and September obviously will  increase  because   petrol  gold    potato  mineral ore  jute  and few other items price  in increasing order. Flood is also one of the reason for increasing commodity price.

So from November 2017 to January 2018  Da may  increase 40 to 44 slab for banker 



Dearness Allowance for bankers had declined consecutively for previous two quarter before the same increased by 2.20% during the quarter Aug-Oct 17.


Wednesday, September 27, 2017

India Post Payment Bank to open 650 branches this year

India Post Payment Bank (IPPB) is planning mega expansion to open 650 branches this year.
The first two branches of IPPB have been opened in January 2017 in Ranchi and Raipur.
``We intend to open at least one branch per district across the country. Each branch will be networked with about 1200 to 1500 post offices in a district,’’ B V Sudhakar, Secretary, Department of Posts, Government of India told newspersons at a press conference here on Monday.
When asked whether such a ramp was possible in a short span of time, the official said: ``Technology will allow us to do so.’’
There are 978 standalone ATMs for the Department now. The payment bank is also expected to install more ATMs with tie-ups with other banks. ``By December 2017, we will integrate core system software including core banking, postal operations and savings bank which will also help us,'' he added.
The focus of the payment bank will be on door-step banking, a survey conducted by the department showed `huge’ potential for door-step banking.
It will primarily focus on three products of financial inclusion, direct benefit transfer and door step banking.
The department will also be recruiting 55,000 Gramin Dak Savekas in rural areas out of which the process for filling up of 14,406 vacancies has already commenced.
SPEED POST
The department is also ramping up its focus on speed post as a premium product for revenue generation. ``Speed post facility will be made available in all branch post offices across the country by end of April,’’ Sudhakar said.
The revenue from speed post services had gone up from Rs. 1605 crore during 2015-16 to Rs. 1740 crore in 2016-17.
PASSPORT
Post office passport seva kendras will also be opened in all 811 head post offices across the country in country by March 2018. As of now, the service is available in 42 post offices across India.
The issue of passports in post offices have commenced in January 2017. So far 31,500 passports have been issued.
``Apart from convenience to people, issue of passports could bring us (projected) revenue of Rs. 750 crore,’’ Sudhakar said.
REVENUE
India Post is also expecting to bridge the gap between revenue and expenditure in next two years with a slew of initiatives being taken. For year 2015-16, it reported a revenue of Rs. 13,000 crore and an expenditure of Rs. 19,000 crore.

Biggest Bank Robberies in world

Every other day there is a story about bank robbery, some inspired by a movie and some with such mindblowing ideas that movies are made on them. But can you imagine what could be the amount of biggest bank robberies? There are bank robberies amounting in thousands of crores and some may be bigger than the economy of small countries. Here is the list of biggest bank robberies in the world:

$ 1 billion ~ Rs.65000 Crores, Central Bank of Iraq, Baghdad , 2003
In March 2003, just one day before the United States attacked Baghdad in hunt of Saddam Hussein , nearly $1 billion were stolen from the Central Bank of Iraq. This is considered one of the largest bank robbery in history.  A handwritten note signed by Saddam Hussein, ordering his son Qusay Hussein to withdraw $920 million was found. Qusay loaded the boxes of $100 bills secured with stamped seal known as security money, which took five hours. Later Saddam Hussein and Qusay were killed by US forces but where the money is hidden or what happened to that money is still a suspense.

$210 million ~ Rs.14000 crore, The British Bank of the Middle East, Beirut, Lebanon, 1976
The robbers exploited the chaos of the country’s civil war. Palestinian Liberation Organization blasted through the wall of a nearby church to break the bank. They opened up the vault with the help of a bunch of Corsican locksmiths. After the robbery, the robbers escaped to Switzerland and sold the personal valuables of people to them for profit of $50 to $100 million.






 $282 million ~ Rs.1830 crores, Dar Es Salaam, Baghdad, 2007
Those who have been entrusted with the security of bank stole $282 millions from the bank, yes the security guards flew with the money. It was suspected that some government official was also involved but nothing was confirmed. The robbery was noticed only the next day when employees of the bank found vault open and security guards missing. The currency stolen was US dollars, it was strange that why such huge money was kept in the bank and that too in US dollars and not the home currency. The security guards were arrested soon and most of the money was recovered.



$174 million ~ Rs.1130 Crore, Knightsbridge Security Deposit, Italy, 1987
Two men requested for a safe deposit box on rent in Knightsbridge Safe Deposit Centre. As the manager of the deposit centre showed them the vault the robbers took out their handguns and subdued the manager and security guards. They hung a sign on the door of the safe deposit centre that the Safe Deposit Centre is temporarily closed, so that no one try to enter the centre. They broke open the safe deposit boxes and and flew away with the money and valuables.  The exact value of robbery is not known but only estimated as the content and their value in safe deposit boxes are not reported.
The mastermind and leader of the robbery was Valerio Viccei which was identified through a bloody fingerprint traced during forensic investigation by the police. Viccei was arrested by police when he was trying to retrieve and ship his Ferrari to Latin  America. He was sentenced 22 years of prison and was killed in a gunfire after release from the prison.

$71.60 million ~ Rs.460 crores, The Banco Central Robbery, Brazil, 2005
A gang of burglars rented a  commercial property in the city, renovated it and posed as a landscaping company selling natural and  artificial grass and plants. Everybody in the neighbourhood understood it as a normal business activity. They had installed lighting and air conditioning system in the tunnel. They tunnelled 78 meters beneath two city blocks to reach beneath the bank. This took 3 months to tunnel and get into the bank.  The robbers removed five containers weighing about 3.5 tons. The burglars managed to disable the bank’s alarms and sensors, and was noticed by the bank only when it opened on Monday.

Rs 342 crore – a moving train, Tamil Nadu, India, 2016
A train booked by Reserve Bank of India (RBI) carrying around Rs.342 crores in 228 trunks of money and weighing around 23 tonnes was looted by robbers from a moving train in Tamil Nadu. The robbers entered the railway coach by cutting the roof of the coach.  The train was booked by RBI and was transporting money from Salem in Tamil Nadu. The incidence of robbery was noticed by RBI when the train reached Chennai. It was believed that robbers boarded the train midway and used steel-cutters and welding machines to cut the roof and enter the train coach.



£26.5 million ~ Rs.265 Crores,  Northern Bank, Belfast, Ireland, 2004
One night, groups of armed men arrived at the homes of two officials of the Northern Bank and held the officials and their families at gunpoint. Bank official Christopher Ward was taken to the home of his supervisor, Kevin McMullan, while gunmen remained at his home with Ward’s family. Subsequently, McMullan’s wife was taken from their home and held, also at gunpoint, at an unknown location. The following day both officials were instructed to report for work at the bank’s headquarters at Belfast’s Donegall Square West as normal. Next day a test run of robbery was done by Ward removing  £1 million.  Finally Cash was transferred to one or several vehicles and gang fled away. Following the raid, Northern Bank announced that it would recall all £300 million worth of its banknotes in denominations of £10 or more, and reissue them in different colours with a new logo and new serial numbers.


$28 mn ~ Rs.186 Crores – ABN Amro Bank, Brussels, Belgium, 2007
A person naming himself Carlos Hector Flomenbaum from Argentina (with a stole passport from Israel) stole diamonds worth $28 million from ABN Amro Bank in Brussel where he was a trusted customer for one year. The man was dealing with the bank for one year and used to visit the bank regularly to gain trust of bank employees. One fine day he managed to get the keys of vault and flew with diamonds worth $28 million and was never caught.

for my readers few pandel from kolkata durgapuja

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college square

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chaltabagan
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Tuesday, September 26, 2017

Payments for all government benefits, whether at the State, Central or even local level, would come under DBT


In a significant expansion of the direct benefit transfer scheme, the Centre is working to expand it to include all State government schemes as well.
“All States are on board and working with us. State government schemes should come within the ambit of DBT over the next few months,” said a senior official.
An estimated 3,000 schemes of State governments will then come under DBT, covering 40,000 beneficiaries and ₹3-lakh crore of funds.
Payments for all government benefits, whether at the State, Central or even local level, would then be done by cash transfers directly deposited into the beneficiaries’ bank accounts. In fact, government officials say that with the inclusion of State schemes, an estimated ₹6-lakh crore of government benefits would be paid through DBT.
At present, over 370 schemes of 55 Central ministries are part of the DBT platform, with over 76.38 crore beneficiaries.
Payments of over ₹39,623 crore for Central and Centrally-Sponsored Schemes have been done through cash transfers in the current fiscal, while a cumulative ₹2.22-lakh crore have been transferred through DBT.
States have already been working with the Centre to set up DBT cells in their own regions. “With most Central and CSS schemes already on DBT, on-boarding State schemes is the next logical step,” said the official.
At a meeting of the Inter-State Council last year, Prime Minister Narendra Modi urged States to join the cash transfer platform and use Aadhaar linkages to weed out fake beneficiaries.
Officials have said that while DBT for welfare schemes can continue, authentication of the beneficiary may be difficult without Aadhaar. The government is working to improve data protection and privacy.
Meanwhile, to improve the efficacy of fund transfers, the government plans to on-board DBT on its Public Financial Management System, a web-based onlin

What has been the experience of the merger of associate banks with SBI?

Dinesh Kumar Khara, managing director, State Bank of India (SBI), said that the bank had engaged with the subsidiaries with the help of an internet site wherein they were allowed to share any of their concerns. And those concerns were addressed. In an interview with The Indian Express, he discusses the merger of five associate banks with SBI and the future plans for other subsidiaries. Edited excerpts:
What’s your view on reports that employees are not happy with the merger of five associate banks with SBI and their career prospects?
I don’t think so. Up to scale 3, there were no sacrifices. That takes care of 80 per cent of staffers. They have got nothing to lose. When it comes to scale 4 and 5, the sacrifice was one year. For scale 6 and above, the sacrifice was two years. A two-year sacrifice means they have to wait for up to two years for promotions. The main bank had engaged with all of them with the help of an internet site wherein they were allowed to share any of their concerns. And those concerns were addressed.
Where were 73,000 employees of associate banks deployed? How many had taken Voluntary Retirement Scheme (VRS) out of 12,500 eligible for the scheme?
We were transparent. People from associate banks have been posted in the corporate centre, corporate banking group and national banking…people were posted in subsidiaries also. Those who don’t have a skill set and those who need to work on it might have felt…in any such process, you will find such people. They will have a reason to complaint. Around 4,000 staffers had taken Voluntary Retirement Scheme.
What has been the experience of the merger of associate banks with SBI?
Challenges are more in terms of technology and culture. When the merger happens, both the entities are going concerns. You have to integrate while they are going concerns. There are complexities when it comes to IT (information technology) systems.
Has the overall asset quality of the bank been hit with the merger of the associate banks?
Post-merger, they have all gone to the other verticals of the bank like the national banking group or the corporate banking group. They are in the process of rationalisation of branches and administrative offices. Corporate book is all accounted for and provisions were made. As much as 80 per cent of the corporate books are common between the associate banks and SBI. But retail is fragmented. So, there was no way for us to take a uniform approach.

What’s your strategy for subsidiaries, considering the bank’s subsidiaries are active in all segments?
As far as subsidiaries are concerned, we would like them to be in line with the status of the banking sector. They should be in the top rung only. They are now in a decent growth path and they are all well-positioned.
Will the cards subsidiary go public like some of the other subsidiaries of the bank?
SBI has five million cards now. We are planning merger of two subsidiaries (GE Capital Business Processes Management Services Ltd and SBI Cards and Payment Services Pvt Ltd) in 2018-19. The IPO might come in 2019-20. But, much of it will depend on the prevailing market conditions.
What about the asset management arm? Is there any plan to buy out UTI Mutual Fund?
There’s no concrete talk of any plan on the listing front. It will depend on the JV (joint venture) partner. We have over 18 per cent stake in UTI Mutual Fund. We have never really thought about it (buying out the entire stake). SBI Mutual Fund is a joint venture between SBI and Amundi of France, one of the world’s leading fund management companies.

Saturday, September 23, 2017

Payments Bank offer 7.25% interest in Saving a/c: What does it mean for you? Before open the account please read the article fully

Payments Bank: What does it mean for you?
Airtel Payments Bank- a joint venture between Bharti Airtel and Kotak Mahindra Bank  offers you an interest rate of 7.25 per cent on their savings account. The rate looks very attractive when one compares it with 4-6 per cent offered by commercial banks. In such a scenario should you open an account with the payments bank to earn high returns? What if you are already have a bank account? Does it makes sense to go for the second or third account? Well, there are few factors to consider before you make the final decision.
First, the rate of 7.25 by Airtel is just a welcome offer to bring more and more customers in its fold. Don't expect it to hold on to these rates for very long considering that interest rates are on downward trajectory. Currently, on an average the 10-year benchmark bond yield is ranging around 6-7 per cent, which means the rates offered by the payments banks needs to be lowered to earn a margin as they are not allowed to lend. According to the RBI guidelines, payments bank have to deposit 75 per cent of their money in Statutory Liquidity Ratio(SLR) eligible government securities, with maturity up to one year and hold maximum 25 per cent in fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.
How does Airtel manage to pay such high interest rate? Well, for the time being Airtel is subsidising the difference from its own pocket to attract more people for opening an account. Once it reaches the critical mass expect a decline in interest rates by the payments bank. There is a target within Airtel to convert at least 100 million of their 270 million customers with Airtel payments bank accounts.
Second, it is not free of cost to withdraw and transfer money from the payments bank. For withdrawal of less than Rs 4000 the Airtel Payments Bank charges you in the range of Rs 5 to Rs 25. For the amount above Rs4000 you are charged at 0.65 per cent of the withdrawal amount, which means higher the amount the higher will be the charges. Similarly there are charges ranging from 0.5-1 per cent of amount transferred from the payments bank to another bank. Compared with commercial banks, it is bit costly as NEFT allows you to transfer money at just Rs 2.5 . Similarly, there is no fees in for transferring money through UPI.
However, there are no charges on transfer of money from the payment bank to the payment bank through internet and USSD. Also, there is no fees for transfer of funds from Airtel Payments Bank to another bank for transactions of less than Rs 1000. So, if you do not have to make large transactions (You can maximum deposit upto Rs1 lakh in the payments bank) it might not cost you much to transfer and withdraw money.
Third, if you are already having a wallet don't worry as it will eventually get merged with the payments bank. Moreover, whatever discounts and offers you offered with wallets will continue to be offered under the bank.
The Reserve Bank of India main objective behind payments banks is to achieve financial inclusion of millions of people, particularly in the remote areas of the country. It is to serve the need of transaction and savings account in rural areas. But with transfer and withdrawing charges so high, it might not attain the desired purpose. In 2015, the Reserve Bank of India gave approval to 11 applicants including Paytm to set up these banks. Soon Paytm is expected to come out with its payments bank. Reach of Payments banks is sure going to be more than the number of bank branches in the country but unsustainable rates and high cost of transaction should not be deterrent in its expansion.

Friday, September 22, 2017

Jaitley says govt will extend resources needed to support banking system


Finance Minister Arun Jaitley has said the government will find resources required to support the banking system, which is the lifeline of the economy.
Speaking at the Indian Banks' Association's 70th AGM, the minister said whatever the solutions required to support the banking system, the government would back them.
This observation comes in the backdrop of public sector banks needing capital to not only provide for their huge bad loans, but also meet their capital requirements under the Basel-III capital accord.
'GST implementation smoother than expected'
PTI adds: Jaitley said the implementation of the new taxation regime, GST, was going smoother than expected in the initial phase.
The decision-making mechanism at the top between the Centre and the states has been “reasonably institutionalised” and the mechanism created to address day-to-day issues is robust, he said.
”... these are early days of the implementation of the alternative taxation system. It appears to be so far going on smoother than expected,” Jaitley said.
He said the number of people coming under the network itself is now likely to expand gradually.
The Goods and Services Tax (GST) was implemented from July 1 this year. It brings the economy under a uniform tax regime.
India’s GDP grew slower at 5.7 per cent during April-June — the lowest in three years of the Modi government, while lagging China for the second straight quarter — as manufacturing slowed ahead of the GST launch and note ban impact lingered.
Jaitley had recently attributed the lower GDP numbers to pre-GST de-stocking of goods and expressed the hope that the economy would grow at 7 per cent, saying manufacturing has bottomed out.
On demonetisation, Jaitley today said it was a conscious effort to alter the saving and spending pattern of Indian society, which was largely cash dependent.

IBA agrees to look into pension revision for retirees of bank employee





There seems to be light at the end of the tunnel finally for scores of retired bank employees.
The long pending demand for revision of pension has finally come up for positive examination by the Indian Banks’ Association (IBA).
From 1986, pension for retired bank employees has not been revised as there is no practice of periodical revision of pension along with the Pay Commission’s review of pay scales being followed in the case of government employees.
There has also been no increase in the quantum of pension payable to family members after the death of a serving or retired employee.
However, the United Federation of Bank Unions (UFBU) has been able to break the ice in these matters in its talks with the IBA team held a couple of days ago.
“The IBA has agreed to examine these issues and is sympathetic. It has called for details of the number of present pensioners, and family pensioners, from banks,” CH Venkatachalam, General Secretary, AIBEA, who represented UFBU along with its convener MV Murali and others, told Business Line.
A request for calculating uniform DA rate for those who retired prior to 2002 is also being taken up. After 2002, employees/pensioners get 100 per cent compensation when prices go up.  “Prior to that, we have been tapering the DA formula. So, we want the same uniform formula on DA for those retired employees also,” he said.
The employee body has also asked the IBA to expedite the cost calculation as the demands have been pending for quite a long time and the retired employees being aged, need to be considered with sympathy and without undue delay.
The IBA has assured the union to expedite work in this regard.
According to M Harshavardhan, Advisor, All India Bank Officers’ Federation, revision of pension and its regular updation will not cause ‘undue’ financial burden on banks as has been projected. “Banks are very much capable of bearing additional expenses to be incurred on account of revision in pension rate,” he said.
The IBA has also agreed to take up with bank managements the problems faced in reimbursement of health care costs/health insurance issues.
There is no consolidated data on the number of pensioners and the IBA is in the process of arriving at a figure shortly. There are about 11.50 lakh bank employees today with almost 50 per cent of them in clerical jobs. The number of retirements has gone up by 2-4 per cent in the last five years and the trend is expected to continue for the next three to four years.

Vijaya Bank, Dena Bank in initial exploratory talk for possible merger with OBC

Two mid sized PSU banks Vijaya Bank and Dena Bank are in initial exploratory talks for a possible merger with OBC. While there are talks of higher recapitalization for PSU banks, the government is also not dropping the ball on another important issue of consolidation in the banking space.
Discussing Pros and Cons of Merger 
Vijaya Bank and Dena Bank are said to be discussing synergies and the boards of both banks are discussing pros and cons of such a move. The alliance, if it gets through would be based on the geographical outreach of both banks. Vijaya has a strong presence in southern states while Dena has presence in Maharashtra and neighbouring states. “The combined entity could lead to a large mid-sized bank along the lines of OBC and take care of the banking needs in South and West India “, a source aware of the development added.Oriental Bank of Commerce has strong HRD as well as IT based infrastructure.Last Year they adopt new system with abolition of all regional office.

Balance Sheet
The boards of both the banks are said to be looking at each others balance sheet and future liabilities. Vijaya Bank reported 57% jump in Q1 profits to 255 cr rupees with NPAs at 7.3% of advances while Dena bank narrowed losses to 133 cr rupees with NPAs as a percentage of gross advances, rose to 17.37% as of June 2017.
Dena Bank, currently under Reserve Bank’s prompt corrective action, is looking at improving profitability. Thus, capital requirement post-merger will increase in light of Dena Bank’s high NPA. If blessed by the govt, merger could be completed by end of this fiscal.
Till  now ministry of finance not authenticate the news. News only spread in media 

Thursday, September 21, 2017

SAVE PUBLIC SECTOR BANKS SAVE INDIA

SAVE PUBLIC SECTOR BANKS
Dear friends,
Banking system in India is carefully studied under two categories as per the service rendered by the Banking sector to the common man of this country. They are Pre Independence Phase [1786-1947] and Post Independence phase [1947 till date].
The banking facility for the people of India during the Pre independence period and Post independence period shows two different poles of managerial and administrative approach.
The unique identity of the common man during the Pre independence period was the socio- economic exploitation. Though these two approaches show various positive and negative developments for the Indian economy, the expectation of the people is to get rid off from these socio-economic exploitations from those capitalistic sector, prevalent during the Pre independence era.
Because, the economic exploitation of the peoples during the Pre-independence period were the symptoms of socio-economic atrocities against the common man by those capitalistic dominance.
Due to this exploitative situation, people were keen to tap an alternate institutions through which their economic standard was getting uplifted.
The development of Banking system during Pre independence Period was derived from ancient Vedic period. During the Pre independence period the main objective of the banking system was meant for serving the highest business society only, with the support of the rulers.
The colonization made the banking system to serve for the purpose of developing the business of an individual capitalists. From that stage, banking system was emerged due to swadeshi movement in India for serving the people of India.
Thus shifting of banking industry from an unilateral service to multi focal services. We can understand the growth of our banking industry with the intensified contribution of our people. At the same time, people harvested the benefit of the growth of Banking industry vide various social schemes.
Though these schemes were initiated by the government, implementation, and the end use were assured by our PSB. Thus growth of the PSB and the people were achieved simultaneously.
From the following paragraphs we can understand that PSB and the people are inseparable.
DEVELOPMENT OF BANKING IN PRE INDEPENDENCE PHASE
Banking in India, in the modern sense, originated in the last decades of the 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.
The period between 1906 and 1911 saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to establish banks of and for the Indian community.
A number of banks established then have survived to the present such as Catholic Syrian bank,The South Indian bank, Bank of India, Corporation Bank,Indian Bank, Bank of Baroda, Canara Bank, and central Bank of India.
The fervour of Swadeshi movement led to the establishment of many private banks in Dakshina kannada and Udupi district, which were unified earlier and known by the name South Canara (South Kanara) district.
Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".
During the First World war (1914–1918) through the end of the Second World war (1939–1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918.
Bank of Calcutta was started in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government, and the other two were the Bank of Bombay in 1840 and the Bank of Madras in 1843.
The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence, became the State bank of India in 1955. These small mergers were planned for the better administrative purposes only.
For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve bank of India Act 1934.
STATUS OF BANKING SECTOR IN PRE INDEPENDENCE PHASE
The Indian banking system at the time of independence was under Private ownership. The rural population of the country had to depend upon money lender for their requirement. A huge number of people lost their life’s earnings. The common man had no access to banking facilities, and the PARTICIPATION OF RURAL POPULATION WAS NIL.
Growth of Private sector banks during this period was massive and paved ways for a unilateral capitalism. It was found that the private sector banks in the country did not provide the required credit disbursal support, especially to the unorganized sector.
We have our major portion of our human resources in this unorganized sector from our Rural back ground that is back bone of our country. The unorganized sector consisting of farmers, small scale industries, transporters, self-employed and professionals had to largely depend on private moneylenders who exploited them with extremely high interest rates.
During this period, class banking was prominent rather than supporting the rural mass. A massive shifting was required at that time from CLASS BANKING TO MASS BANKING to bring Banking facilities at the door steps of the rural peoples to protect them from economic exploitation from local money lenders and to safeguard the hard earned money of those rural peoples.
This has led the government to turn their attention towards ‘TO PROTECT THE PUBLIC MONEY AND TO SERVE THE GROSS ROOT RURAL MASS AGAINT ECONOMIC EXPLOITATION”. Because, the government realized that banking industry only can serve for the upliftment of our Indian economy and serve the people of India.
Thus, pre independence period also witnessed that, Banking industry is paramount for the Indian economy. But the private sector banks were working on the basis of profit making only without the conscious of serving the people. Government realized that Public sector Banking only can serve both for the upliftment of our Indian economy and the people of India.
People of India were also keen to accept a strong public sector forum, by which these ill effects of their day to day well being can be eradicated. The much awaited demand of the people was fulfilled by the government in the name of NATIONALISATION OF ALL THE PRIVATE SECTOR BANKS.
NATIONALISATION OF BANKING
Despite the provisions, control and regulations of the Reserve bank of India, banks in India except the SBI, all the remaining banks owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy.
At the same time, it had emerged as a large employer, and a debate was going around strongly in favour of nationalization of the banking industry. Smt Indira gandhi, the then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper titled "Stray thoughts on Bank Nationalization. The meeting received the presentation with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalized 14 largest commercial banks with effect from the midnight of 19 July 1969.
These banks contained 85 percent of bank deposits in the country. Sri Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.
A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the Government of India controlled around 91% of the banking business of India.
To solve this issues and better development of the country, the government of India initiated the nationalization of our Central Bank of India [Reserve Bank of India] in 1949 followed with 14 major banks in 1969.The basic idea behind nationalisation was to serve the poor and not to earn profit, and also to boost up our Indian economy.
The objectives of initiating such an act was to rapidly expand the bank branches and channeling the credit in accordance with the set targets. These banks were given quantitative targets for the distribution of credit to specific sectors in the economy and for the expansion of their network through branches.
Following this initiative, the government nationalized seven more scheduled commercial banks in 1980, This move gave the impression that in case a private bank grew beyond the size, it would be brought under ambit of nationalization.
The second nationalization took place in order to affirm more control over the Indian banking system. The Indian banking system was becoming increasingly important to expand their presence unexposed, even the poverty ridden parts of the country. It was also enabled to increase priority sector lending and sourced the funds to bridge the budgetary deficits. Along with the nationalization of the Indian banks, the government also set the lending targets for priority sector.
FAILURE OF PRIVATE SECTOR BANKS AFTER NATIONALISATION
After Nationalisation, government paved the way for providing services of the Banking industry towards the multi facial sector [PRIORITY AND NON PRIORITY] of the people of India. Their intention was that, Indian banking sector should reach all the sectors of the people without making much profit from the banking business. During this period the government objective was for the development of our Indian economy and the impartial services to all the sector of the peoples. Moreover, government realized that their objective will be fulfilled only with the help of the PUBLIC SECTOR BANKS ONLY.
The aspiration of the government and the people were completely fulfilled by our PUBLIC SECTOR BANKS ONLY.
This government call was against the interest of the Private sector banks. Because, their business was PROFIT ORIENTED. During the period between 1947 and 1969, our country faced a massive failure of the PRIVATE SECTOR BANKS once again.
Even after nationalisation, private sector banks continued to fail. One of the most prominent example was the high-profile Global Trust Bank. GTB was eventually merged with Oriental Bank of Commerce in 2003. Between 1969 and 2014, TWENTY THREE private sector banks were merged with public sector banks for their inefficiency.
In 1960, the State Bank of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These were till recently called as associate Banks.
In 1969 the Indian Government nationalized 14 major private banks; one of the Big Bank was Bank of India. In 1980, 6 more private banks were nationalised. These nationalised banks were the majority of lenders in the Indian economy. They dominate the banking sector because of their large size and widespread networks.
The Indian banking sector is broadly classified into Scheduled banks and non-scheduled banks. The scheduled banks are those included under the second Schedule of the Reserve Bank of India Act, 1934.
The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Bank (RRBs); foreign banks; and other Indian private sector banks.
The term commercial banks refer to both scheduled and non-scheduled commercial banks regulated under the Banking regulation Act 1949. All these sector wise divisions of the PSB, leads to unconditional service, for the benefit both the PRIORITY AND NON PRIORITY sectors of the people of India.
PUBLIC POLICY AND BANKING POLICY
The policy makers also realized that the Public policy and the banking policies are inseparable. Because, PSB are meant for the Publics only. Moreover PSB and the people of our country are interwoven, with the common agenda with MUTUAL INTEREST.
PREAMBLE of our Constitution of India, BY THE PEOPLE AND FOR THE PEOPLE IS CLEARLY VISIBLE IN OUR PUBLIC SECTOR BANKING ONLY. Any Private sector banks in our country cannot enter this zone, which is reserved for the PSB by the people of our country.
As per the government directives, the Public policy can be defined as courses of action, regulatory measures, laws and funding priorities concerning a given topic promulgated by the governmental entity or its representatives.
Banks undertake the two most important functions in an economy of providing payments services for the retail and wholesale markets and channeling savings into investment for ensuring economic activity and growth. Banks are highly leveraged entities using public funds; they have the ability to generate resources, they provide all types of financial services, hence our PSB operations are very much within the purview of public policy.
Here, once again we proves that PSB and the people of India are interwoven, their traditional socio-economic relationships can not be compromised at any cost. Because people of India already witnessed the failure of the private sector banks in various aspects.
PRESENT GOVERNMENT POLICIES
Though, the relationships between the PSB and the people of India are understood, our government is very keen towards merger and privatization of this massive economic asset.
The UPA had set up a committee under P.J. Nayak to suggest reforms in public sector banks in January 2014. The main thrust of its recommendations was Privatisation of PSBs.The present government not only endorsed the Nayak Committee report completely, but announced measures to implement the recommendations.
To achieve their ulterior ambition, they are tarnishing the best image being enjoyed by PSBs. In fact, no one in this country gained anything after independence,
When we closely observing the recent development in our Public Sector bank, we can understand the seriousness and treacherous activities done by our regulator and the government in a systematic way to eradicate our PSB in the arena of our Indian banking sector.
The latest those developments are appended below;-
From 2008-Compelling Indian PSB to become a major lender for the Infrastructure sector in India. This is being plunged to cover up the FISCAL DEFICIT of the government at the cost of the PSB.
Now Real estate sector also being included in this lending process. During this period, PSB stood first in lending and now it paved the way for a major NPA status from this sector.
PSBs are being forced to lend more for this sector for long term loan. Now, Tele communication also joins in this race. At the same time they encouraged the Private sector bank to lend more for the retail loans.
During that time onward, Private sector Banks are dominating in the Retail loans.
Then also, we were able to control the NPA level, though the regulator and the government were started tarnishing the best social sector of our Indian economy that is PSB. NPA level was within 1 Lakh crore upto 2015. At the same time, our NPA level suddenly raises from 1 lakh crore to 6.06 Lakh crore in December 2016.
This alarming NPA level is being artificially set out by the regulator and the government. This is not the natural NPA level during 2016. That was an artificial and man made NPA level during that accounting period such as
1. PROVISIONING FOR STANDARD ASSETS
2. BRINGS MORE ASSETS UNDER NPA CATEGORY BY AMENDING POLICIES
Thus government and regulator DEFAME our PSB and try to DE-LINK us from our best relation with general public, where no one in this democratic country achieved that after our independence. WILL IT BE SUCCESSFUL?
NEVER. Because, people of India never let down our PSB in the hands of big corporate.
Outcome of Cashless Economy such as, Digital payments, Adhaar based payment, all government ,social sector schemes payments to the publics, Payment of salaries to all the un organized sector and private sector employees, Small bank payments, Online transactions through various Applications , DEMONETISATION programmes is being well organized by the government and regulator, to accumulate the complete money through a single window.
Now the government is ready to channalise this huge money through this single window for the benefit of BIG CORPORATES. Cashless economy brings the normal citizen without cash. This cashless economy and Demonetisation does not bring any benefit for our brethren. But it makes the big corporates, to enhance their business in the Banking sector by sucking the common man income in the name of commission and extra charges.
Government is allowing, giving more interest rate by the Private Banks (CORPORATE OWNERS), and reducing the SB interest rate of the PSB simultaneously forcing the publics to rush towards the Private sector banks for depositing their hard earned money.
Accumulating poor man’s saving for long term basis for their individual business development. Final outcome of those deposits is understood for the economists of this country.
Finally, where they are going? What is their TARGET? Are they are marching towards PRIVATISATION!
The answer is YES. Now, the government and regulator ideology is to
1. PRIVATISATION OF PROFITS &
2. SOCIALISATION OF LOSSES
Now, government is mobilizing social media against our PSBs starting from our DEMONETISATION PROGRAMMES. They planned and turn the common man against the PSB to DE LINK PSB FROM PUBLIC.
Thus defaming the PSB in front of our common man. Now, they are making our common man to raise the question’WHY WE SHOULD pay for the alleged inefficiency of PSB.
We have to see the performance of PSBs, which have not only survived the major global economic crisis but also shared the government’s social agenda like the farm loan waiver, the Jan Dhan Yojana, priority sector lending and lending to small and medium enterprises. These are the activities which bring our profitability under pressure.
1. The contribution of Private sector banks in these social welfare schemes is almost NIL.
2. Private sector banks are not ready to share the government’s social responsibilities.
3. Private sector Bank even in the matters of recruitment, they don’t follow the government’s reservation policy.
4. Don’t show any enthusiasm in giving education loans to needy students.
Thus, we can see that privatisation is not the solution for problems facing PSBs. Moreover, Merger is also not the solution for the present situation.
MERGER INITIATIVE
As per the latest development in banking industry we have been informed by our (Regulator) Reserve Bank of India (RBI) HDFC Bank is the second largest private sector lender of country in list of Domestic Systemically Important Bank, (D-SIB).
HDFC is the third largest bank in our country after SBI and ICICI.
As per the RBI directives, our country’s economy is dependent upon these biggest banks.
Because, these banks are perceived as ‘Too Big To Fail” (TBTF) theory. This theory was initiated by the global bankers after the financial crisis 2008.
As per Business dictionary, the “Too Big To Fail theory asserts that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system in the country.
To evade that, those financial institutions must be supported by government when they face potential failure. The government might be tempted to step in if ‘THESE INSTITUTIONS FACES PROBLEMS / FAILURES WITHIN THE COMPANY OR OUTSIDE THE PROBLEMS”.
Bringing an illusion to the citizen of India that, Big financial institution only can serve better for the countrymen, than an individual PSB. Thus cultivate the symptoms of MERGER POLICY indirectly in the minds of the people.
When Global Financial institutions were facing the Crisis during 2008, only financial institution in this globe, to stand firm and proves the stability and confidence to their customers are our Indian Public Sector banks (PSB).
The remaining part of the globe formulated this TBTF theory to safeguard their economic slide, why the same formula is being followed for our Indian financial sector?
Regulator and Controller admit that, failures / collapse are prominent in these Too Big financial institutions also. At the same time, they are predetermined to save those big institutions with amended policies and frame work from time to time. Initially, they were safeguarding the individual PSB.
Afterwards, for the past three years, their policies are against PSB. Now they are supporting the too Big financial institutions only. Why the same strategy is not followed to set right for our individual PSB?
Now the Regulator and Controller are moving towards to set right of the Private sector banks. Bringing hope and confidence among the minds of the people, that Private sector banks are more secure than our PSB. They brainwash the minds of the common man that, PSB are under collapsed state, and the solution is the MERGER POLICY to follow the TBTF theory.
When Regulator and Controller are considering only the Gross NPA as a primary tool to decide the fate of the PSB, it is paramount for them to shows how maximum PSB falls under this poor GNPA status within last three years.
Also, the bifurcation of this Gross NPA is to be disclosed to the common man. The major NPA are coming under POWER, STEEL, ROAD INFRASTRUCTURE AND TEXTILES. My dear friends please spell out, who are the major owners of these sectors. No doubt, they are the major CORPORATES of our poor country.
As per the latest report of our RBI, Just TWELVE ACCOUNTS of corporate loan defaulters that accounts for TWENTY FIVE PERCENT of the total NPA in our Indian banking sector.
Our Regulator instructed banks to file insolvency proceedings against these companies, under the new Insolvency and Bankruptcy Code as per the revised BR Act 2017. The regulator did not explicitly name those12 accounts to the common man till now. Now, RBI is bringing those culprits under their shadow [Overseeing Committee (OC)]. SBI and RRB are brought under this scrutiny.
The treacherous activities of the government and regulator to be put forth in front of the common man that is PUBLIC. Because they are only going to be affected much. We as an employee of the PSB are included in that PUBLIC. Now, as a banker, we also have social responsibility to makes the common man to understand the treacherous developments in our PSB.
Every individual of us should make the common man to identify the danger for their social harmony and security, and explains the public regarding the dangerous situation prevailing in our PSB which would go against the common man.
Dear Brethren, the idea of the existing government is MERGER AND PRIVATISATION. Once this happens, the other recommendations, such as reducing priority sector lending or making it profitable, cutting down on unprofitable banking activities such as lending to small and medium entrepreneurs, will automatically follow.
This would totally defeat the idea of inclusive banking as it is practiced now and was the guiding principle at the time of nationalisation of banks. Besides, if we look at the government’s record, in 2000 too, the then NDA government tried to reduce the government’s share in PSBs but dropped the idea because of the stiff opposition from the Trade Unions and the Left parties. The present political situation is a volatile and a dangerous one towards PSB.
We need to tell the people,
Why it is necessary to save the public sector Bank?
Why concentration of wealth in the hands of a few powerful individuals is not good for the common people?
Why we should learn from the experiences of Japan, Korea and the USA?
Why we need to heed the earlier warnings by the RBI, which said in 2010 that private sector ignored SMEs [small and medium enterprises], agriculture, education and export?
CONCLUSION
These problems are not pertaining to Public sector banks alone; it is a WAR AGAINST THE WELFARE OF THE PEOPLE OF INDIA. The Public sector Bank is sailing along with the people of India, for their well being from beginning to till date. PSB, are the BOON for their socio-economic upliftment. This treacherous move of the government symbolizes, returning of the Pre-Independence period situation.
It is the moral duty of the each and every individuals of the PSB, to make the people to understand the present danger of the PSB..
We the PSB employees, are the best ambassadors to bring awareness among the people of our country. Because, we are having our banking branches throughout the country. Even, the remote areas are also having our bank branches. We must educate the customers and the public of our country regarding the MERGER AND PRIVATISATION threats by this treacherous government.
Apart from this we must join hands with other PSU organisations in our country, and architect a National Platform to bring all the Public Sector Officers’ Organisation under a single umbrella.
This unity can play a vital role, to arrest these types of ANTI PEOPLE ACTIVITIES. The representation from all the Public Sector enterprises, like Power engineers, Telecom, Insurance, and Railways should come together for this social cause to help the people of India.
We should plan a nationwide campaign to create public awareness. We will do it through street plays, short films and documentaries. We must plan to organise alternative Gyan Sangams to educate people on the tremendous contribution of PSB for the upliftment of the subjugated people of India towards nation building.
CBOA ZINDABAD
AINBOF ZINDABAD
AIBOC ZINDABAD
MURUGAN R
OFFICER, CANARA BANK
THENI ALLINAGARAM

Billionaire Rana Kapoor's Yes Bank Is Said To Cut 12% Of Jobs

Yes Bank Ltd. has cut about 12 per cent of its workforce to lower expenses and push technology amid an industry-wide lending slump, said people familiar with the matter.

In its first widespread reduction of jobs since it was founded in 2004, the lender cut about 2,500 roles, the people said, asking not to be identified as they aren't authorized to speak to the media. Most of the cuts are in the bank's sales team, the people said. The bank had 20,851 employees at the end of June, exchange filings show. The Economic Times newspaper had earlier reported about the cuts.

Yes Bank, led by billionaire Chief Executive Officer Rana Kapoor, is an outperformer in India's banking system. It has one of the fastest paces of loan growth while the broader gauge languishes at a two-decade low, because companies staggering under bad debt and excess capacity are awaiting evidence of a pick up in demand before they invest more.


The bank's push toward automation and innovation will make some roles redundant, and other staff cuts were due to natural attrition and "performance-linked actions," a Yes Bank spokesman said by email. More details will be communicated in the September-quarter results, the spokesman said, without sharing the exact number of employees being dismissed.

Yes Bank shares rose as much as 1.9 percent as of 1:14 p.m. in Mumbai on Thursday, and have more than doubled in the past year. The lender had 1,020 branches and loans of 1.4 trillion rupees ($17.6 billion) as of end-June, exchange filings show.

Wednesday, September 20, 2017

Central employees in West Bengal to get salary on 26th September

Due to Durga Puja and Dussera festival, Banks to remain closed from 27th Sep to 2nd October 2017, Central Govt. employees posted in West Bengal will get the salary of September 2017 on 26th of this month.

Cheque Book of six Banks will be invalid from Sept 30

Cheque book of six banks will be invalid from Sept 30. State Bank of India is largest public sector bank, there is a big news for subscribers of SBI subsidiary banks. The cheque of these banks will be invalid after 30 September. Cheque book of six banks will be invalid from Sept 30. So if you are also the bank account holder of these bank, then just submit the application to change the cheque book.
SBI has said that we request customers of SBI’s erstwhile Associate banks and Bharatiya Mahila Bank to apply for new SBI Cheque books. Old cheque books and IFSC codes will be invalid after September 30. Cheque book of six banks will be invalid from Sept 30.
The new cheque book will require submission of application through internet banking, mobile banking, ATM or later in the branch. State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank of Travancore (SBT), State Bank of Bikaner and Jaipur (SBBJ), SBI, And Bharatiya Mahila Bank (BMMB) has been merged with SBI.
Cheque book of six banks will be invalid from Sept 30 The country’s largest public sector bank has asked the bank account holders to stop cheque usage of these five banks before 11 days. Also, the applications will be deposited right now to get a new cheque book, so that they will not have to worry about transactions after September 30.

Abolishing personal income tax a good idea, but India just not ready yet

India has become largely a tax non-compliant society.” This statement by the Finance Minister Arun Jaitley during his Budget speech earlier this year was not a mere rhetoric. The income tax figures substantiate the argument. Only 2.4 per cent Indians paid income tax in the last financial year 2015-2016.
While 3.7 crore individuals filed income tax returns, 99 lakh of those claimed the yearly income below the exemption limit of Rs 2.5 lakh, leaving just 2.81 crore individuals who actually paid tax. Of these 2.81 crore individuals, mere 24 lakh people showed income above Rs 10 lakh, with only 1.72 lakh reporting an income of above Rs 50 lakh.
Taxing the middle
The meager percentage of taxpayers in India is good enough for many economists to argue against the regressive personal income tax, in which the middle-income group or the salaried class takes the maximum burden, the rich find ways to evade it, and the poor are exempted from it. Of the total 2.81 crore taxpayers, 2.47 crore people earned below Rs 10 lakh or belonged to the middle-income group.
What one can infer clearly from the income tax data is that the middle-income group bears the maximum burden of the tax, while the rich find ways to evade it, and hoard it as black money or in form of assets. Moreover, nearly 90 per cent of India’s employment is in the informal sector. A lot of those people, even while earning enough to fall in the tax bracket, escape the tax net because their incomes are not recorded.
There might be gains…
Many economists, including ruling party leader Subramanian Swamy, argue that abolishing the income tax will make the cash white, and unnecessary holding of assets like gold and real estate property will go down. Reason: People would either start spending or investing money, which they were paying as taxes or were trying to hide from the authorities. Both ways, the cash will flow into the economy accelerating growth. Bank deposits will rise, and as a result, the interest rates will come down, further accelerating industry investments. More industry investments will lead to more employment opportunities.
Albeit, the reform will demand a lot in return. First, it will drastically bring down government revenues; secondly, there is no concrete alternative proposed so far which could help the government meet the revenue shortfall. In the year 2015-2016, the government collected Rs 2.87 lakh crore. If the income tax is abolished, the government will have to — at least — recover this amount to prevent an economic crash either through indirect taxes or other alternatives. So far, the alternatives that are being suggested are at best theoretical and abstract.
Subramanian Swamy says spectrum and coal auction could be a source of government revenues. Another alternative could be of levying taxes on expenditure and bank transactions instead of income. This will need drastic economic reforms like the GST, which is going to take a lot of time, effort and support from all stakeholders. 
… but costs would be higher
Care Ratings Chief Economist Madan Sabnavis does not think abolishing personal tax is a feasible option. The current taxation system is robust, in which each individual pays tax on the basis of ability, Madan Sabnavis says, while raising the question that what would be the revenue model if the income tax is abolished. “If the tax is levied on bank transactions, it will be messy. Who will monitor the transactions for consumption and the transactions for saving?” Madan Sabnavis said in an interview with FE Online. “The current taxation system is equitable and progressive,” he added.
While India debates whether or not to abolish the income tax, there are only ten countries which do not levy a personal income tax, namely, Qatar, Oman, Saudi Arabia, UAE, Bahrain, Kuwait, Bermuda, Cayman Island, Bahamas and Monaco. Interestingly, six of them are oil-rich countries, and earn a majority of revenues from oil trading. The other four are island nations, and have repeatedly figured in conversations about tax evasion.
While doing away with the income tax may seem to be a good idea in theory, the nation seems to be far away from being fully prepared to make up for lost revenues and to build as robust an indirect tax system. 
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