RBI road map for rural banking

RBI Deputy Governor Subir Gokarn at Parakuchi village in Kamrup district on Sunday.

Guwahati, Dec. 12: The Reserve Bank of India (RBI) has drawn a road map to bring 2,327 villages in Assam with a population of over 2,000 under the banking system. The exercise would be completed by March 2012. RBI deputy governor Subir Gokarn said the RBI was committed to bring banks closer to people and was taking all steps to do the needful. Gokarn’s first visit to Assam brought him to Parakuchi village, 40km from Guwahati, in Kamrup district to inaugurate a financial outreach camp.  On the issue of directing private banks to set up facilities in rural areas, Gokarn said they could not direct the banks as there was always a question of viability. “If it is viable, they will come,” he said

Microfin pioneer Yunus lashes out at Indian outfits

BANGLADESHI microfinance pioneer Muhammad Yunus on Sunday attacked companies for “misusing and abusing” his original concept of helping the poor via small loans, after a backlash against profit-making lenders.   Mr Yunus admitted the reputation of microcredit had been tarnished by Indian commercial companies that charge high interest rates and use heavy-handed tactics to collect repayments.

Bimal Jalan Committee Report on stock exchanges sparks debate

The Bimal Jalan Committee report on stock exchanges is a good report and well-argued though the committee may have erred on the side of caution," Rajesh Chakrabarti, assistant professor ­finance,ISB,observed on Friday . Kicking off a panel discussion on the report held in the city,  Chakrabarti pointed out that the 5% cap, the maximum stake that individuals and corporations can hold in an exchange, was the rule in many countries. He also argued that stability and not mindless competition was more important. Competition, he said, could be sub-optimal and "haven't really done too much on Wall Street". An exchange chief's role was to bring ininvestors to trade at one place and increasing the number of exchanges could lead to greater fragmentation.