RBI Governor slams banks for dismal CDR in JK

RBI Governor D Subbarao (R) speaks during a special meeting of “State Level Bankers' Committee” of Jammu & Kashmir, in Jammu

…..the banking community in J&K should expand the branch network and at least 25% of new branches should be opened in villages with a population of less than 10000 souls. “They should train business correspondents and also lay emphasis on self-help group (SHG) formulation and linking them to banking activities,” he said. It was for the first time in recent past that the RBI Governor addressed SLBC in JK. “The credit-deposit ratio, which was 35% as at the end of December 2011, indicates unsatisfactory performance of banks. This is less than the half of the national average CDR of 75%,” the Governor said……..

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RBI workshop on understanding payment needs of northeast

SHILLONG: With an aim to understand the payment needs of the North East, the Reserve Bank of India is organising a workshop here this saturday, officials said today. Themed 'Enhancing Financial Inclusion through modern electronic payments systems - Look North East', the workshop has been specifically organised to understand the payment needs of the NE region and to provide impetus to the growth of electronic payments. Reserve Bank Deputy Governor H R Khan, its Executive Director G Padmanabhan and the Chief Secretary of Meghalaya W M S Pariat will address the gathering, officials said.  The workshop be attended by senior officials from the eight NE state governments, Central government agencies and Banks.

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RBI Governor meets J-K CM

Jammu, Mar 21 (PTI) Reserve Bank of India Governor D Subba Rao today met Jammu and Kashmir Chief Minister Omar Abdullah here and discussed matters relating to the functioning of banks in the state, and assured full support in strengthening the financial institutions…………….

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Banks should open 25% branches in unbanked areas: RBI

….."At RBI we have said at least 25 percent of all the branches opened in a given year should be opened in unbanked areas with population of less than 10,000," RBI Governor D Subbarao told a state-level conference of bankers Wednesday. "I hope that prescription would be complied with (by all the banks). It should be done in consultation with state government," the Governor further said while referring to financial inclusion and awareness drive……

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India-US trade vital for global economy: Godrej

(from Left) Mr Ron Somers, President, USIBC, with Mr Terry McGraw, Chairman, USIBC, Dr Subir Gokarn, RBI Deputy Governor, and Mr Adi Godrej, President Designate, CII, at the CIIUSIBC Leadership Round Table session in Mumbai on Wednesday

HBL

We may differ with RBI, but come to a consensus: D K Mittal

People are bound to have different opinions in any system, but they ultimately reach an understanding, says D K Mittal, secretary, financial services. In an interview with Vrishti Beniwal, he defends rumours about differences between the government and the banking regulator over issues ranging from new bank licences to bank account portability. Edited excerpts:…………

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Debate on separation of public debt office from monetary management continues

Separation of the public debt office from monetary management is being debated at policy level since as early as 1997, during which five finance ministers and three RBI governors have been at the helm. A working group on separation of debt management from monetary management submitted its report to the Reserve Bank of India in December 1997…………….

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Bill to amend Banking Regulations Act hangs

………The finance minister has again promised to table the bill before Parliament, but this time he may face resistance not only from Opposition parties, but also from allies, who stall new measures. The bill also empowers the Reserve Bank of India to supersede the board of banks and has an enabling provision that no individual or an entity can acquire stake in a bank above 5% without their approval. As of now, the Reserve Bank of India exercises these options under its power to issue direction, but not under the legal framework.

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Bank cricket losing its charm for want of jobs

………..Shridhar Korgaonkar of RBI was of the view that the job opportunities will get the interest back in to the tournament. “It is one of the biggest tournaments for bankers. Many leading cricketers have participated in it, but lack of job opportunities to cricketers is just not helping the cause. It is sad to see that these youngsters who play on stipend or contracts will not get jobs in future. The management should create opportunities for the young cricketers, otherwise it will be very difficult in future.”…………….

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Can Mumbai ever become international Financial Hub?

....... Of course, the sign of things to come was apparent at one of the functions to debate on the topic. When Rakesh Mohan, the then RBI Deputy Governor, got up to speak on the topic, the sound system fell silent. In desperation, he asked: "Can this city become one?"

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Banking Ombudsman: Slipping Badly

.............On one hand, RBI has deregulated rates and charges and does nothing about the rampant mis-selling of insurance and other products by banks. On the other, stricter account-opening and KYC rules as well as linkages, electronic payments of bills or auto debit on loans and mortgages, make it difficult for customers to switch banks. We need proactive BO to hear customer issues, dispense justice and also provide feedback to RBI to frame better regulation. Is RBI listening?

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RBI offices to remain open on Mar 31 for special clearings

……"With a view to facilitating accounting of all government transactions of the current financial year (2011-12)...all regional offices of Reserve Bank of India and branches of agency banks have been advised to conduct "Special Clearings" with same day return clearing in the evening or night of March 31, 2012," the central bank said in a notification……..

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Strengthen NPA database through existing systems: RBI

……."The RBI plays an important role in providing a large pool of statistics as public good. This, however, puts on it the concomitant responsibility to provide timely, reliable and meaningful data and its dissemination, by harnessing technology to its fullest possible extent,"……

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Stricter norms for jewel loans by NBFCs

.....In a significant move, the Reserve Bank of India (RBI) has tightened the rules for lending against gold jewellery by non-banking finance companies (NBFCs). It has now made it mandatory for NBFCs to maintain a loan-to-value (LTV) ratio of not exceeding 60 per cent for loans granted against the collateral of gold jewellery. Also, it has made it compulsory for them to disclose in their balance sheet the percentage of such loans to their total assets............
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Read - The Hindu

PPF may earn you 9% from April 1

Just a week after the interest rate on deposits to the employees’ provident fund was slashed by 1.25 per cent for 2011-12, the government is set to hike the rate of interest on small saving instruments like the Public Provident Fund (PPF) starting April 1............

Read - Indian Express

Impatient banks move ahead with… RATE CUTS

Tired of waiting for the Reserve Bank of India (RBI) to cut rates and give them a cue, commerical banks are taking matters into their own hands. While substantial cuts in bank base rates have not yet happened, lenders have begun giving small reliefs in various products, to ensure that the customer gets a fair deal...................

Read the full Story - DNA

RBI to conduct survey on collateral issue of banks in J-K

…."As a point was raised about denial of credit facility to entrepreneurs on the demand of collateral is concerned, RBI will conduct a study, a survey in J&K (in this regard to find out for itself)," RBI Governor D Subbarao told a bankers conference Wednesday………

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Take the short-term route

.... However, the Reserve Bank of India's (RBI) capital injection hasn't quite stabilised the debt fund market (March typically sees a tight monetary situation). In the last six months, the apex bank injected Rs 2 lakh crore into the banking system, by lowering the cash reserve ratio (CRR) and through open market operations (OMOs)…..

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SKS Microfinance in focus after RBI extends deadline for micro-lenders' provisioning

…..SKS Microfinance will be in focus as the deadline for new provisioning and asset classification norms has been extended by a year. The Reserve Bank of India (RBI) has deferred the implementation of asset classification and provisioning norms for non-banking financial company-micro finance institutions (MFIs) to 1 April 2013, from 1 April 2012. The move is after taking into account the difficulties faced by MFI sector and the representation received by it, RBI said in a notification………

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No rebate on investment in infrastructure bonds to hit taxpayers

Taxpayers may have got some relief through the increase in the basic exemption limit and widening of the 20% tax slab, but the government has taken away a crucial tax saving option. The budget for 2012-13 has not extended the Rs 20,000 rebate available for investments in infrastructure bonds this year, which was over and above the Rs 1,00,000 maximum rebate available under Section 80C. Infrastructure bonds allowed taxpayers in the highest 30% slab to save a maximum of Rs 6,180 in tax……

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