CVC appoints Shyamala Gopinath as chairperson of advisory board

Mumbai, March 29: Ms Shyamala Gopinath, a former Reserve Bank of India Deputy Governor, has been appointed as Chairperson of the Advisory Board on Bank, Commercial and Financial Frauds. Ms Gopinath's appointment by the Central Vigilance Commission is for a period of two years and is effective from March 26, 2012. The chairperson's position was vacant for nearly two months prior to her appointment. Mr Janki Ballabh was the Chairman of the Advisory Board till January 31.  The Board is part of the organisational infrastructure of the Central Bureau of Investigation (CBI), with the RBI providing the required investigative and secretarial services, along with necessary funds. The Board's jurisdiction is confined to those cases, where in disagreement or dispute with a bank, public sector undertaking or financial institution, the CBI wants to register a regular case/preliminary enquiry in respect of an allegation of fraud. The frauds covered by CBI investigations include those in borrowal accounts in public sector banks, and financial or commercial frauds in a financial institution or public sector undertaking.

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CVC reconstitutes advisory board to check commercial fraud

......Other members of the board include retired Indian Administrative Service officer, Mr Vivek Mehrotra; retired Indian Police Service officer, Mr Balwinder Singh; former Chairman and Managing Director, Bank of Maharashtra, Mr A. S. Bhattacharya; ex-Executive Director of Corporation Bank, Mr Asit Pal; and Chartered Accountant, Mr T. N. Manoharan.

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Worst part of eurozone crisis over: Ex-RBI governor

….."The worst part of negotiation is over. But in any case this will not be resolved in current calendar year, because elections are due in many countries," Reddy, said in his lecture on "Indian Economy: Review and Prospects" organised by IIT Madras……

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Back-end issues in financial inclusion

The Financial Inclusion Plan drawn up by RBI envisages bringing more than 3.5 lakh villages into the formal banking network by March 2013. The count achieved till now is approximately 1.2 lakh villages. In view of the massive scale of rollout targeted, banks have been permitted to outsource part of the technology and manpower requirements of their FI projects from competent technology services providers (TSP). Further, RBI having permitted corporate entities to be enlisted as banking correspondents, eligible TSPs can also undertake BC services, thus participating end-to-end in the FI delivery process...........

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IIM-B convocation

..... D Subbarao, Governor of Reserve Bank of India, is expected to be the chief guest. As many as 371 students will be attending the ceremony.

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RBI Scholarship Scheme for Economics Faculty Members 2012

….The main objective of the scholarship scheme is to increase awareness about the activities of the Reserve Bank among faculty members and student community. The scheme will provide exposure to faculty members teaching subjects of economics and or finance in different areas or activities in the Reserve Bank of India……….

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RuPay: Your role to play

......This short article does not provide the space to fully explain the extremely intricate and often hyper-secretive details of the payment processing industry. Suffice it to say that this is the next logical step to what RBI and its wholly-owned subsidiary, the National Payment Corporation of India (NPCI) has already done to establish control of ATM switches in India.......

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Blow to NCP-controlled bank

In a fresh setback for the Sharad Pawar-led NCP, the Reserve Bank of India (RBI) on Thursday dissolved the board of directors of the NCP-controlled Sangli District Central Cooperative Bank for rampant irregularities and blatant violation of the Banking Regulation Act……….

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New panel for ‘reliable’ inflation, IIP data

.... The government's decision to review the entire data collection, collation and calculation mechanism for inflation and industrial production is welcome. It's not just economists who have reservations about official data, even RBI has raised doubts over its reliability. Given the fact that crucial policy decisions depend on official data, this is very worrying……

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Banks haven't made significant penetration in m-banking: RBI

.... "Banks have not really made a significant penetration even among their existing customers to extend mobile banking services," RBI Deputy Governor KC Chakrabarty said at an International Banking Summit in Mumbai……

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RBI allows cross border remittances through mobiles

....Banks will have to be responsible for ensuring quality of funds, adherence to know-your-customer, and so on, said Dr K.C. Chakrabarty, Deputy Governor, Reserve Bank of India, at an International Banking Summit.......

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Government to unveil revised FDI policy paper tomorrow

..... The government in 2010 had decided to come out with consolidated FDI policy paper summarising all the regulations including those of FEMA and Reserve Bank of India (RBI) for the benefit of foreign investors……

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RBI moves step closer to issuing pvt bank licences

....The Reserve Bank of India (RBI) has moved a step closer to issuing fresh private sector bank licences, with the government moving to seek the Cabinet’s approval for amendments in the Banking Regulation Act (BRA). The amendments in the BRA would empower the RBI to supersede the boards of banks and suspend licences in case of any wrongdoings. The Cabinet is expected to approve the amendments as early as this week........

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Foreign firms with minor bank links may get to do proprietary trading

……"RBI has agreed to re-examine the regulatory regime in the case of foreign companies where its parent is not a bank," a government official said. A meeting on the issue, held in February, was attended by representatives from RBI and departments of industrial policy and promotion, financial services and economic affairs………..

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Banks told to better manage NPAs

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Rectify spike in NPAs: RBI orders banks

....."Concerns (on NPA) are there. Banks have to improve their ability to manage NPAs. We have told banks what is their lacuna. They have to improve their information system. But we see that the situation is not alarming. Though this is our concern. Hope banks will be able to manage them," Deputy Governor K.C.Chakrabarty told reporters on the sidelines of a function organised by Yes Bank here.....

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Loan-deposit ratio may tie RBI hands on rates

The Reserve Bank of India is facing yet another challenge in its endeavor to lower benchmark rates, as high loan-to-deposit ratio will make it difficult for lenders to lower borrowing costs even if the RBI takes policy measures to ease the pressure………

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State Bank's deposit rate increase stumps peers

..... SBI officials said it was unlikely the bank would pare its base rate anytime soon. “Even if there is a repo rate cut by the Reserve Bank of India (RBI), market rates are not going to come down. Also, at a time when companies are not sure about their future and credit risks are high, it does not make sense for banks to lend at lower rates,” a senior executive of the bank said……..

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RBI keeps ‘Ways and Means Advances' to States at last year's level

.....A State entrusts its banking business — including payments, receipts, collection, remittance of money, management of public debt and issue of new loans — to the RBI by voluntarily entering into an agreement with the RBI......

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The market's three worries : Akash Prakash

….The second issue concerns the direction and pace of interest rate cuts and monetary policy easing. Many market observers had pencilled in 150 basis points of interest rate cuts by the Reserve Bank of India in the calendar year 2012, and a full pass-through of these cuts by the banking system, and thus were quite bullish on both the market and the general economic outlook. However, this may no longer be possible. Many of the more astute economic commentators now think that rate cuts will not be more than 50 to 75 basis points — and even these will not be fully passed on by the banking system to borrowers……

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Temple panel seeks SC permission to open vault B

….Meanwhile, it asked the panel to supply copies of its report relating to the plea to other parties in the dispute. The committee in its report had stated that construction of a new high security vault on the lines of the RBI may be taken up only after opening vault B of the temple to determine the quantum of wealth artifacts stored in it since several generations……

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Bangalore costliest Indian city to live in: Survey

Glitzy tech capital Bangalore just earned a new sobriquet - the costliest Indian city. An analysis of the Reserve Bank of India's Consumer Price Index (CPI) shows that Bangalore is a couple of notches higher than the all-India cost-of-living average, with financial capital Mumbai just a shade behind……………..

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Revised RBI norms for NBFCs to improve asset quality: Assocham

Industry chamber Assocham today said the revised guidelines on fair practices code for non-banking finance companies (NBFCs) will bring adequate disclosures and non-coercive recovery methods. The steps by RBI are pro-active and timely for orderly and transparent growth of NBFC sector, it said……….

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Muthoot Estate Investments barred from taking public deposits

...."The RBI has directed Muthoot Fincorp Ltd to stop allowing the use of its premises or branches or officials, in any manner by Muthoot Estate Investments for accepting deposits from public," the RBI said in a notification......

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