Cosmos Bank opens Chennai branch

Cosmos Bank, a co-operative bank, on Friday inaugurated its first branch in Chennai. The branch was inaugurated by S Karuppasamy, Executive Director, Reserve Bank of India, and Vijay Pingale, managing director of Co-optex, according to a release on Friday.

BS

Why RBI’s Subbarao will find it tough to cut interest rates

..............It’s hard not to feel sorry for Reserve Bank of India Governor D Subbarao. For months now, everyone from assorted businessmen to the government has been bearing down on the governor to cut policy rates to provide a helping hand to economic growth, which slumped to 6.1 percent in the quarter ended December.But so far, the governor has resisted those pressures................

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No cap on bank lending to sector, RBI says

The Reserve Bank of India has not mandated any sectoral exposure limits on banks, and hence, banks should not say that having hit the limit for the power sector they are unable to lend to the renewable power sector. Banks may have their own internal sectoral exposure limits, but the RBI has not imposed any such limits, according to Dr K.C. Chakrabarty, Deputy Governor. It is however true that the RBI stipulates lending limits with respect to borrowing entities, but there is nothing sector-wise, he said. Dr Chakrabarty said in response to a query that players in the renewable-energy industry are finding it difficult to raise loans because banks say they have exhausted their ‘limits' by lending to thermal power projects.

HBL

Raising overseas investment cap depends on current account, says RBI

MUMBAI: The Reserve Bank today said an immediate hike in the cap on overseas investments by corporates depends on improvement in current account. "Any further liberalisation (of overseas investments by corporates) can take place perhaps after current account condition improves," Reserve Bank Deputy Governor H R Khan told a meet on Outward FDI here this evening...........

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Bankers urged to achieve objectives of financial inclusion scheme

...............Bankers should evolve ways to achieve the objectives of the Financial Inclusion scheme of the government, said the Deputy Governor, Reserve Bank of India (RBI) K.C. Chakrabarty at Kotagiri on Friday.He was inaugurating a Rural Self Employment Training Institute and a Financial Literacy and Credit Counselling Centre promoted by the Indian Overseas Bank (IOB).............

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Banking correspondent model still in ‘evolutionary stage'

Kothagiri (TN), March 2: The banking correspondent model of extending services to the unbanked regions is still in an evolutionary phase, Dr K.C. Chakrabarty, Deputy Governor, Reserve Bank of India, said here on Thursday.“We are yet to find an appropriate delivery model,” he told journalists on the sidelines of a function of Indian Overseas Bank here. The bank on Thursday opened a rural self-employment training institute and a financial literacy and credit counselling centre here..................

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Priority sector lending: Call to hike cap on bank loans to NBFCs

..............“If RBI's intention is to ensure that cost of delivery does not increase then they can put a cap on the final interest rate charged,''......................

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As liquidity crunch worsens, RBI turns to open market operations to ease pain

.....…..RBI Governor D. Subbarao has said that OMOs can become a case of acquiescence in fiscal dominance. Meanwhile, the calls for a cut in CRR are becoming louder. Bankers have called for a second round of CRR cut before March 15, ………………..

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Old-generation pvt banks come in RBI's line of fire

Ambiguity over the ownership structure and issues related to governance in some of the old-generation private banks have raised the hackles of the Reserve Bank of India (RBI), with the regulator now questioning some of these lenders on their transactions with a few companies............

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RBI clears air on norms to tackle frauds

....... frauds monitoring cell (FMC) within RBI, will monitor frauds in commercial banks, financial institutions, primary urban cooperative banks (UCBs), local area banks, NBFCs, etc............

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Now, use Facebook for your financial transactions

....... ICICI Bank, India's largest private bank, is one of the early movers. Its application lets customers check the balance in accounts; request statements and cheque books; or even upgrade debit cards right from their Facebook home page. "Social media is not a fringe channel and has become an important tool to interact with consumers," said Sujit Ganguly, a general manager at the bank......

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Mobile funds: ICICI Bank says 'now pay'

Leading private sector bank ICICI Bank will charge its customers Rs 5 per transaction from next month for transfer of funds over mobile phones, a service available for free as of now...............................

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Why RBI’s policy dilemma just got tougher

...... Not surprisingly, the focus is once again back to whether the mandarins at Mint Road will cut key rates when the Reserve Bank of India (RBI) meets on 15 March to review monetary policy, one day before what is being seen as a crucial Union Budget......

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Centre, RBI must act boldly to spur growth

..........It is hoped the Reserve Bank takes a bold step, not a “baby step”, in relaxing interest rates in its next policy. All is not lost as growth continued, though not across the board.............

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Why not MFI banks?

...........The structure for such banks can be that either an existing MFI becomes an MFI bank, or new MFI banks come into being. They should be allowed to operate only in the rural areas, and lending can be to only the lowest income class that is not covered by banks. The maximum amount of money that can be lent to an individual (R25,000) can be fixed along with tenure (1 year) and repayments (weekly, fortnightly, monthly). A rural credit bureau should be set up simultaneously as it will help to spread the word about the creditworthiness of borrowers..............

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Budget 2012: NHB-like entity for microfinance?

....While not everyone is comfortable with the Microfinance Bill in its current form, there is hope that it will get an early nod from the Parliament. Reason: it will help sort out a major hurdle on the regulatory front - it will lay out a clear regulatory role for the Reserve Bank of India (RBI), clearing up some of the lack of uniformity in regulation and enabling closer monitoring of the sector. Such a provision will ensure that state governments do not intervene (as was the case in Andhra Pradesh in 2010).......

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