Boring banks theory does not work anymore: Subbarao

…. “So the question is, is making banking boring necessary and is it sufficient to prevent the recurrence of financial instability? If so then what is the cost of making banking boring?”….

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‘Company secys should be aware of new laws’

MYSORE: The company secretaries of those firms which have significant trade transactions globally must be aware of the new laws and regulations, said Uma Shankar, Regional Director, Reserve Bank of India, Bangalore, on Thursday.  Uma Shankar was speaking at the workshop on foreign exchange organized by the Institute of Company Secretaries of India-Mysore chapter in association with the Foreign Exchange Department, Reserve Bank of India, Bangalore.  Uma Shankar touched upon the transition from FERA to FEMA. She said liberalization under the remittance facility scheme also enjoin upon all those making use of foreign exchange responsible and accountable to the regulators and policy makers.  M Palanisamy, Banking Ombudsman for Karnataka, said the Banking Ombudsman scheme was introduced by RBI in 1995 to provide inexpensive and expeditious resolution against complaints relating to deficiency in the services provided by banks. There are 24 grounds on which complaints can be preferred with the office of Banking Ombudsman.  These include deposit accounts, loan products, pension payments, ATM/credit cards, levy of charges etc., Palanisamy added.  Apart ftom nearly 100 company secretaries from various cities of south India, chartered accountants, industry representatives and students attended the programme.

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Kulavaipatty declared as model village for financial inclusion

Reserve Bank of India declared Kulavaipatty near here as a ‘model village for financial inclusion' among the rural pockets selected by it under its outreach activities. A function was organised at the village on Friday when a number of officials from banking industry and district administration felicitated the villagers for their cooperation to the efforts taken by the RBI for the past several months. N.S.Vishwanathan, Regional Director, Reserve Bank of India, Tamil Nadu and Puducherry, said that the RBI had identified a few villages as either ‘unbanked' or ‘under-banked' areas under the ‘Outreach Activities'............

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Banks may tap informers to track defaulters

....Law enforcement agencies resort to them. The tax authorities find them useful. Now, banks too are looking at them. ‘They' are informers, and the Reserve Bank of India has sought the Indian Banks' Association's views on whether banks can tap such sources about the assets owned by defaulting borrowers and offer rewards for the information......

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Bank customers tortured by recovery agents; ombudsman helps out

......The apex bank had laid guidelines to be adhered by the banks’ recovery agents. However, experts point out the need for recruiting trained recovery agents. “Banks should engage trained agents to recover the money, as it is important to deal with debtors with ‘humaneness’,” GS Hegde, RBI’s principal legal adviser, was quoted saying by PTI.

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Expert views on RBI`s CRR cut

"This is a surprising move but it's definitely a step in the right direction. This will ensure that liquidity situation improves in the market and smooth credit flows to priority sectors. The move brings us closer to a cut in the interest rates."..................

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‘Financial inclusion programme not making much headway’

 

RBI Governor D Subbarao rules out SLR cut

Pune : "SLR cannot be reduced at the moment because there are a number of pre-conditions to such a decision which cannot be met," he said, addressing a convocation at National Institute of Bank Management (NIBM) here................

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CRR cut will ease liquidity, say bankers

The cut in Cash Reserve Ratio by the Reserve Bank of India will go a long way in easing the liquidity deficit in the banking system, said bankers. The move will inject around Rs 48,000 crore into the system.................

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Subbarao’s surprise CRR cut puts ball in Pranab’s court

...... Inflation, after all, still remains the RBI’s biggest enemy, and he has attempted to oil the slowing growth engine a bit by infusing fresh liquidity (the CRR cut is effective 10 March). Some, however, are betting on a 25 basis points cut in the repo rate soon. This is a bold RBI governor. And he has the ability to surprise either way. And as of now, he holds all the aces.

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RBI cuts CRR: Developers hail cut; hope banks to fund realty projects

.... "This is a positive step by the RBI. This will help financial institutions to lend money to entrepreneurs for the growth of business as well as the economy,".....

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RBI cuts cash reserve ratio by 0.75%, demand for money rises

 ..... Two weeks ago, RBI deputy governor Subir Gokarn hinted at an action.  Here are pointers that could help explain the reaction: .....

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Rate cut on the cards

..... the only way to raise savings is to lower the public sector deficit, since it is the rising public sector deficit that has led to lowered savings rate in the country over the past few years. Even so, Thursday’s CRR cut is a positive boost to sentiments and raises hopes of the Budget being more pro-reform than most believe.

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RBI's CRR cut a proactive step, but policy rate cuts still weeks away

.....Off late, RBI Governor Duvvuri Subbarao has been vocal about the limitations that monetary policy tools in an economy which runs higher twin deficits on both fiscal and current accounts. So, the tight rope walk of RBI continues. The Budget, scheduled for March 16, will be something that Subbarao will take his next cues from.

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RBI delivers, can lame duck govt?

....While the RBI has done all it can for now, can the Union government reciprocate by cutting expenditure in the Union Budget next Friday, and allow the central bank to cut interest rates too, especially since the debacle at the hustings in Uttar Pradesh and other states? .....

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Industry seeks more cuts in CRR

….The Associated Chambers of Commerce and Industry of India (Assocham) sought another CRR cut, one of 100 basis points, before the monetary policy review next week, saying policy rates should also be slashed in the review on Thursday to stimulate fresh investment…..

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RBI cuts CRR: Will March 15 credit policy be a non-event?

........ The RBI is scheduled to announce the mid-quarterly review of its monetary policy on March 15, a day before the presentation of the Union Budget 2012 in Parliament. So, now what happens on March 15? Will it be a non-event?.........

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First sign RBI’s shifting to growth mode

....The surprise 75 basis points (bps) cut in the cash reserve ratio (CRR) by the Reserve Bank of India (RBI) on Friday is more than a liquidity-easing move. The Street was expecting a 50 bps cut in the monetary policy review on March 15 and the fact that the RBI cut more can be taken as the central bank indicating a complete shift in its monetary stance. Tight liquidity conditions have provided an opportunity for it to indicate the shift from controlling inflation to spurring growth......

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IIM Rohtak completes its first-ever final placements process

.... The companies that participated in the final placements include HSBC, Pfizer, Tata Motors, BPCL, HDFC, Tata Steel, Cognizant, Mother Dairy, Yes Bank, Tata Power, Max New York Life Insurance, Berger Paints, RBI, Titan and Ernst & Young among others……

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TimesOfMoney Plans Domestic Mobile Remittance Service

............ At the moment, domestic remittance services are mostly offered through banking correspondent tie-ups, since the RBI has enforced strict guidelines and require KYC (know your customer) documentation. Although the central bank had proposed relaxations in the guidelines, and had removed the Rs 50,000 cap on mobile transfers, mobile money hasn’t really picked up in India…………….

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Polaris’ Intellect Wins XCelent Customer baxse Award for Asia-Pacific Region

.......Leading in the Asia-Pacific region, Polaris outsold other vendors with its Intellect solution, based on its RBI deal. Polaris' major deals were a major part of the deal scores, with the RBI win helping Polaris score strongly in the ranking index........

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