IDBI Bank joins IMPS with soft launch

IDBI Bank joins IMPS with soft launch

IDBI Bank – the only Bank in ‘OTHER PUBLIC SECTOR BANK’ group has jumped on to the IMPS Bandwagon, on 01/04/2011, via a soft launch.

I am trying to understand the logic of 01/04/2011, is it the end of a new financial year or the beginning of a new financial year

Anyhow, IDBI Bank has started off 2011-2012 with a bang, by joining IMPS on the first day itself.

The most interesting aspect of IDBI Bank is that it is the only Bank under the ‘OTHER PUBLIC SECTOR BANK’ sub-group.

RBI had to create a new sub-group i.e ‘OTHER PUBLIC SECTOR BANK’, to place IDBI Bank.

Ministry of Finance has vide its circular no. F.No. 7/96/2005-BOA dated December 31, 2007 advised Secretaries of all Ministries/Departments of Government of India that the bank may be treated on par with Nationalized Banks/State Bank of India by Govt. Departments/Public Sector Undertakings/other entities for all purposes, including deposits/bonds/investments/guarantees etc. and Government business.

Not only this, Section 10(23D) of the Income Tax Act 1961 has been amended, in terms of Finance Act 2009, incorporating 'Other Public Banks' in the expression 'Public Sector Banks' appearing therein.

One interesting document on IDBI Bank’s website is the document on :

Central Interest Subsidy Scheme on Education Loan

The same can be accessed @

http://www.idbibank.com/pdf/CentralInterestSubsidyScheme-EL-uploadontheinternet_03011011.pdf

At present, IDBI Bank is offering the subsidy scheme in 4 states of Kerala, Maharashtra, TamilNadu and Andhra Pradesh.

The scheme will be rolled out to other states, as and when the list of designated authority/authorities, is received by the Bank.

CSIS is a Central Scheme to provide Interest subsidy during the moratorium period for the educational Loans taken by students from Economically Weaker Sections to pursue Technical / Professional educational Studies in India.