Bank of Baroda has launched bob PAL (Portfolio-backed Approved Limit), an overdraft facility against securities that allows eligible customers to raise funds without selling their investments.
Customers can pledge eligible equity shares, mutual funds, bonds, debentures and Sovereign Gold Bonds (SGBs) to avail an overdraft of between ₹1 lakh and ₹5 crore, subject to applicable security-wise limits.
For facilities of up to ₹1 crore, customers can complete the onboarding and processing digitally through Bank of Baroda‘s bob World app, internet banking and website.
As an overdraft facility, interest is charged only on the amount utilised, according to the bank. Customers continue to hold their pledged investments and remain eligible for applicable investment benefits such as dividends and bonus issues.
The facility is intended for short-term personal or business funding requirements and allows customers to raise liquidity without immediately exiting their investments.
Separately, Federal Bank has launched OneTag – FASTag Portability, allowing eligible customers to shift their FASTag issuer relationship to Federal Bank without replacing the physical FASTag installed on their vehicle.
The portability process starts through the RajmargYatra app, where customers need to enter their vehicle registration number, complete OTP authentication and provide consent. Within 72 hours, customers can complete the migration through Federal Bank’s FASTag portal.The facility is currently available for Vehicle Class 4 (VC4), which covers cars, jeeps and vans. The FASTag must be active, have the vehicle number updated, have no active disputes and must not have been ported previously.
Under the facility, customers do not need to remove or replace the existing FASTag. After completing the migration, they can manage the FASTag through Federal Bank.
The two launches come as banks use digital platforms to offer customers more flexibility in managing credit and payment-related services.
Sanjay Mudaliar, Executive Director, Bank of Baroda, said the bank’s new facility allows customers to access the value of their financial investments while remaining invested.
Federal Bank said its FASTag portability facility will allow users of other issuer banks to migrate their FASTag relationship without replacing the physical tag.