Surara border hamlet gets JK Bank branch on RBI Guv's promise

Jammu, Mar 27 (PTI) J&K Bank today opened a branch at Surara village located close to the Indo-Pak border in Samba district, within days of RBI Governor D Subbarao's assurance to provide banking facilities to the residents of the area. The bank today inaugurated a fully computerised Business Unit at Surara – a far flung village in Gagwal block of district Samba…………..

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RDHS exhibits various produces in RBI program

ITANAGAR, Mar 27: The Rural Development and Heritage Society (RDHS), Sangram participated in the Reserve Bank of India (RBI)-hosted financial outreach programme at Kimin under Papum Pare district yesterday. During the program, more than 34 SHGs and Lower Jhumi farmers’ club under RDHS exhibited their agriculture, sericulture and handicraft produces, dry flower making, door mats and traditional ornaments. Before the start of the main function, H R Khan, Deputy Governor, RBI and other top banking officials spoke on the credit linkage of banks to the SHGs and farmers and other related schemes. They also discussed the function of SHGs. In the main function, RBI Deputy Governor and Chairman APRB gave away sanction letter to six farmers on Kishan Credit Card.

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1 lakh self-employment opportunities in the next 5-yr-Plan: Tuki

The state government has planned to create at least one lakh self-employment opportunities in the next Five Year Plan through 'Chief Minister's Transport Subsidy Scheme, Arunachal Pradesh Chief Minister Nabam Tuki said. While interacting with RBI deputy Governor H R Khan, who called on him late last evening here along with chief general manager SBI R K Garg, regional manager (Itanagar) B N Das and other officials, Tuki expressed his government's desire to coordinate with banks, especially SBI, to implement self-employment schemes for the educated unemployed youths..............

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Two sides of a tinkling coin story

THIRUVANANTHAPURAM: Saving a penny for the future is not only a wise man’s counsel but for the Reserve Bank of India also, on a different scale. But when the state is reeling under acute coin shortage, the RBI Regional Office here has created a record of sorts by holding Rs 29.04 crore worth of coins of various denominations as on December 1, 2011. In a startling disclosure, forced through the RTI filed at the Department of Currency Management, RBI Central Office, Mumbai, it has come to light that the RBI Regional Office has kept more than 80pc of the coin stocks under its custody from January-November, 2011. The information availed of by the Right to Information Protection Forum (RIPF) shows that though coins …………

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Shortage of coins hits Surat

........ According to an estimate, coin remittance of Rs 50 lakh takes place from RBI Ahmedabad to Surat in one installment. The only problem is, two such installments come in a year against the demand of Rs 1 core in a month. This problem is not faced in cities like Ahmedabad and Mumbai which have RBI branch………..

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Counterfeit currency from ATMs?

When such a currency note pops out at you from an ATM, you can do nothing about it. Take it back into the bank branch, the staff with write ‘FAKE’ or similar on it in thick marker ink, indelible, and you are on your way, poorer but not wiser. The RBI has to be much more proactive to stop the menace.................

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RuPay out to make debit cards safer

......NPCI's RuPay will be accepted at all 91,000 ATMs and over 6 lakh Point of Sale (PoS) terminals in the country. According to the Reserve Bank of India (RBI) data there are close to 27 crore debit cards in India. Public sector lenders Bank of India and Union Bank of India have already started issuing RuPay debit cards to customers and other banks are likely to do the same soon..........

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Avoid sharp variations on similar term deposits' rates: RBI

……"If it (the difference between retail and bulk deposit rates) varies too much, then there is something wrong," Reserve Bank Deputy Governor KC Chakrabarty said. He asked banks to discourage moves to offer sharply different rates on deposits with very little differences in maturities……….

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'Indian system not feasible for interest-free Islamic banking'

…"RBI has informed that in the current statutory and regulatory framework, it is not legally feasible for banks in India to undertake Islamic banking activities in India or for branches of Indian banks abroad to undertake Islamic banking outside India,"………

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Making priority sector lending work

……..The M V Nair Committee on priority sector lending has recommended “allowing non-tradable Priority Sector Lending Certificates (PSLCs) on pilot basis that can be only transacted between domestic scheduled commercial banks, foreign banks and RRB. ”. Furthermore it says “Based on the experience gained from the above-restricted pilot project, RBI may consider allowing use of the above instrument to all other market participants and putting in place architecture of tradability of these certificates.”…….

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From sugar to eggs: what our food basket says about our income

..... We know that per capita income is up. And we know anecdotally that food prices are soaring, but can we say the two are linked? And if yes, what parts of the food basket are seeing the biggest price push? Using data from two papers written by Reserve Bank of India (RBI) Deputy Governor Subir Gokarn,........

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Scam-hit MMCB gets another jolt: RBI warns it may cancel licence

........ In yet another jolt to the crisis-ridden Madhavpura Mercantile Cooperative Bank (MMCB), the Reserve Bank of India (RBI) has threatened to cancel the licence of the bank. It issued a show-cause notice to the board of administration last week seeking clarification on why the bank's licence should not be cancelled………

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Cocktail FY13

.....Meanwhile, projections on interest rates and the money supply situation hint at another good year for fixed income asset classes. Estimates on policy rate cut by the Reserve Bank of India have already turned tepid, coming down to 150 basis points for the whole of 2012-13 from 250 basis points projected before the budget........

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Govt to play catch up on encryption norms

.....The policy entails increasing the encryption norms from 40 bits to 128 bits. Bits are used to define the level of coding of a message; the more the bits, the greater is the security of an online transaction or even an email. Entities including the Reserve Bank of India (RBI), commercial banks, insurance companies, service providers, and the Indian units of Microsoft Corp. and BlackBerry-maker Research In Motion Ltd (RIM)have already switched to a minimum encryption of 128 bits, said a high-ranking government official.......

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RBI to continue tight liquidity stance till inflation eases

NEW DELHI: The Reserve Bank today said its tight liquidity stance would continue as long as inflation is above its comfort level. "If inflation is high above the comfort level, RBI's general effort will be to keep the liquidity tight," RBI Deputy Governor KC Chakrabarty told reporters on the sidelines of SKOCH summit here………

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Govt to borrow Rs 3.79 lakh cr in Apr-Sep

....."We have budgeted fiscal deficit at Rs 5.13 lakh crore. In the first half gross borrowing will be Rs 3.79 lakh crore," Department of Economic Affairs Secretary R Gopalan told reporters here after a meeting to decide the borrowing calendar for the next fiscal. The meeting was attended by RBI Deputy Governor H R Khan and senior officials of the finance ministry........

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Will RBI’s Subbarao be forced to play villain in April?

The Reserve Bank of India’s job of managing inflation just gets tougher everyday. Overall prices in the economy show few signs of cooling; instead, everyday there’s news about something that will take prices even higher…………

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Emerging economies may see growth under pressure: Ajay Bagga

.... As expected, the RBI has kept all key policy rates unchanged in the recent monetary policy review. The central bank highlighted its inability to provide a clear monetary easing signal, noting persistence of inflation risks due to rising global crude oil price, weak domestic fiscal position and a vulnerable exchange rate. The RBI has been keen to cut rates since the January policy meeting, but with both global and local economic indicators bottoming out and inflation not easing sufficiently, its room for cutting rates has arguably shrunk…….

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SBI hikes fixed deposit rates by up to 1%

.... According to analysts, hike in fixed deposits rate of short-term maturities is mainly because of tight liquidity situation in the system. Tight liquidity situation in the system had forced banks to borrow over Rs 1.90 lakh crore from the Reserve Bank of India (RBI) yesterday……..

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Mani urges banks to reduce interest rates

…..The meeting was attended by P K Mohanty, Additional Chief Secretary, Subrata Biswas, Principal Secretary, Planning & Economic Affairs Department, V P Joy, Principal Secretary, Finance Department, Sarada Muraleedharan, Executive Director, Kudumbashree, Suma Varma, Regional Director, Reserve Bank of India, K C Shashidhar, Chief General Manager, NABARD,…….

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Small ticket

.... Once the RBI initiates cuts in its repo rate, banks may opt to reduce the rates on their deposits first before lowering rates for borrowers. On the other hand, the new interest rates on small savings are applicable for the entire financial year from April 1. This – along with the possible diminished appetite for gold from the recent Budget imposts and also the huge 125 basis point reduction in the rate on statutory Employees Provident Fund deposits – may somewhat redeem the image of small savings schemes among those looking for safety and stability in returns.....

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HC seeks RBI views on silver bricks

Orissa High Court has issued notices to the Reserve Bank of India (RBI) soliciting its views on a petition seeking to auction all the 522 silver bricks, worth over Rs 80 crore, retrieved from a mutt in Puri last year. Justice M M Das yesterday issued notices to RBI and fixed the next date of hearing of the case on April 30. The notice followed a petition filed by the Emar Mutt pleading the High Court to direct the RBI to auction sale the silver bricks and to keep the proceeds with the RBI until their ownership was decided…………….

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Gold loan firms to meet RBI over new lending norms

...............Gold loan NBFCs are upset about the RBI circular as it will put them at a further disadvantage compared with commercial banks. While banks can lend 140 per cent of the gold value, these NBFCs can now give loans only to the extent of 60 per cent...........

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Gold loan stocks tank as firms see slowdown ahead

.....“It is an indication that investors are gradually exiting the stocks after realizing the impact of the RBI regulations. Many global private equity investors and FIIs had a fancy for gold loans NBFCs and considered them safe. But the recent developments have instilled a fear of gold loans business going the microfinance way,” ........

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