Blank checks

Even as the planning authorities have said there has been no regulatory failure (“Fraud at Citibank not a regulatory failure” January 6), there is a need for a quick review of the performance of not only all the branches of the financial sector but the regulatory efficacy to protect customer’s interests and access to service providers, supervisory and audit. There are other apprehensions too. Take the banks’ new “one service for one pin” rule for ATM operations. This is not to be viewed in isolation. There is a clear pattern. For three years now, the banking regulator has been trying to persuade the new-generation private banks to issue pass books. But the banks have not fallen in line and continue to post monthly accounts to customers. Private insurers have closed 400 branches owing to cost considerations as if there are no other avenues to achieve this.  Mutual funds have gone a step ahead. They have cautioned even old investors that their investments would be redeemed if they do not fulfil the know-your customer (KYC) requirements. This is authoritarian and arbitrary. They send emails and SMSs but do not send by post the requisite form for fulfilling the KYC requirements. For this, the customer has to go to some other place, stand in queue to obtain it and fill in the form with requisite proof, and then wait in another queue to file it. The respective regulators seem either helpless or have not appreciated the full implications of these restrictive practices. 

Gokarn Says India’s Food Inflation Rate Is ‘Worryingly High’

Reserve Bank of India Deputy Governor Subir Gokarn comments on the nation’s food inflation rate. He was speaking in the Indian city of Indore today. India’s food inflation, measured by wholesale prices, surged 18.32 percent in the week ended Dec. 25 from a year earlier, the highest since July, according to a commerce ministry statement in New Delhi today. “Food inflation level has been worryingly high despite good monsoon this year. “The new wholesale-price index, which has higher weight for protein sources, reflects the changing consumption pattern because prices of these items are rising steadily. “On the other hand, the consumer-price index basket still gives predominant weight to cereals, reflecting consumption pattern of many years ago. “Because, cereal prices have been favorably impacted by good monsoon, the overall inflation measured by the consumer- price index presents a relatively more optimistic picture. The prices are high but falling rapidly. “This difference adds another dimension to the problem of choosing between indices.”

RBI proposes timelines for Basel II norms

The Reserve Bank today proposed timelines for banks to migrate to advanced risk norms under Basel II, which entails improved standards for banks worldwide to assess their risks. I has proposed that banks can apply to the central bank for migrating to these norms earliest by April 1, 2012, while it may give approvals for that by March 31, 2014. The Reserve Bank said banks are advised to undertake an internal assessment of their preparedness for migration to the advanced norms and decide whether to migrate to them. Already, basic approach for three kinds of risks relating to credit, operation and markets -- have been implemented for banks in India.
Basel II norms are improved version of Basel I, for preparing banks to assess different kinds of risks. These norms assume significance after the global financial crisis. Basel I required banks to calculate a minimum level of capital that has to be kept aside by assigning risk weight for each of a limited number of asset classes like mortgages, consumer lending, corporate loans etc. Basel II goes beyond this, allowing banks to use their own risk measurement models to calculate the capital that has to be kept aside.

SBI to set up 600 financial inclusion centres

In a bid to give back-end support to business correspondents operating in rural areas and also exercise administrative control on them, State Bank of India has decided to set up 600 financial inclusion centres across the country. The move to set up FICs is aimed at powering the bank's drive to reach basic and affordable banking services to 12,421 out of the 72,315 unbanked villages (identified according to 2001 census) having a population of over 2,000 by March-end 2012. According to the Government and the Reserve Bank of India's directive, banks, especially from the public sector, between them have to ensure that all identified villages have appropriate banking services by March-end 2012. These services have to be provided using the business correspondent (BC) and other models with appropriate technology back-up. As the FICs have been envisaged by SBI, each centre will provide the BCs back-end support services for opening ‘no frills account', processing applications for micro-credit (up to Rs 25,000) sourced by them, and cash management. Further, the centre will also keep tabs on the progress made by the BC in furthering the bank's financial inclusion plan.

Five ways to impress your boss.....

Exceed your boss’ expectations

The easiest way to impress your boss is to be competent in the area where you work. “Be disciplined, be proactive, and help your boss in all situations, especially the more challenging assignments. Making sure you have your facts right, being well-prepared, delivering and then communicating to your boss about the good work you've done. “Always be around to take responsibility and go beyond his/her expectations,” says Rahul Kulkarni, head — HR, Kale Consultants.

Punctuality goes a long way

Another no-brainer, but it’s often ignored. “Whether it’s attending meetings on schedule, finishing projects on time or meeting timelines and time commitments, this is something that gets you into your boss’ good books,” says TeamLease Services MD Ashok Reddy.

Give credit and earn goodwill

When you complete a project, thank your boss for his inputs and support. At the same time, show that you genuinely value them, rather than just trying to massage his ego. If your boss gives you an assignment, treat it as top priority, even if it means pushing yourself to complete it. “It’ll earn you loads of brownie points,” says Ritesh Bhatia, who put in late nights at work for over a month to complete a job. At the end of the year, it bagged him a substantial bonus.

Show initiative

“Take ownership and responsibility of your own tasks. Put timelines and find solutions,” says Team-Lease’s Reddy. “The use of initiative is very important for a boss to realise your full potential,” he adds.

Never bad-mouth your boss

Don’t talk behind your boss’ back. If you have something you don’t like about him/her, keep it to yourself. Otherwise, it might end up reaching his/her ears one day. So save your criticisms, and say good things about your boss.