RBI for waiving ATM charges for senior citizens, differently-abled

....The Reserve Bank of India wants banks to do senior citizens and physically/visually challenged customers a good turn. The banking regulator wants banks to see if these category of customers can be allowed unlimited number of ATM transactions at any bank ATM. It also wants the annual ATM card fee waived for these customers....

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Most banks to work full day today

After three holidays this week, all public sector and many private banks would function full day tomorrow. Banks usually are open for public dealings between 10 am and 1 pm on Saturdays. However, the Finance Ministry has asked all the public sector banks to function full day this Satuday, official sources said. Country's largest bank SBI has said that all its branches will remain open till 5 pm on Saturday. " In order to facilitate transactions for our customers, it has been decided to keep all branches of our bank open for public transactions up to 5 pm on April 7, 2012," State Bank of India ( SBI) said in a notice. Many private sector lenders, including HDFC Bank and Karur Vysya Bank, have also decided to work full day this Saturday. Banks were closed for public dealing on Monday. They again remained closed on April 5 & 6 on account of Mahavir Jayanti and Good Friday, respectively.

FPJ

CAR head constable injured in freak incident

Bangalore,Apr 6 (PTI) In a freak incident, a Head Constable attached to the City Armed Reserve was today injured when his loaded gun accidentally fired while on duty in front of the Reserve Bank of India here, police said. Venkatesh had slung the gun in "shoulder-arm" position, police said, adding, he sustained minor burns and bruises. He has been admitted to hospital and is stated to be out of danger, police sources said. Venkatesh was recently deputed to RBI.

IBN Live

Axis-Enam passes RBI litmus test; deal to go through after 17-month wait

The Reserve Bank of India, or RBI, has approved Axis Bank's purchase of Enam Securities, ending a 17-month wait and paving the way for the private bank to expand its business to include investment banking and other advisory services…………….

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Netizens like e-banking to online shopping

.... A majority of Indians prefer to use the internet for banking and other financial services than shopping online, shows a new survey..........

Read - Express India

Dr.T.V.Gopalakrishnan's views on "Fiscal indiscipline curbs RBI's options - S S Tarapore"

Feedback / comments on  Fiscal indiscipline curbs RBI's options - S S Tarapore

The article has brought out well about the need for RBI not to fall prey to the pressures of politicians, industrialists, and top Govt officials to reduce the policy rates. The economy is in fact in reverse gear and in case the RBI decides to change the policy rates as wanted by all including the bankers, neither the economic growth nor the price stability can be achieved. It will worsen the situation and damage control will become a difficult task and more than anybody the masses will suffer. The inflation, the ccurrent account deficit, the fiscal deficit, the GDP growth, the severe fall in exchange rate, poor flow of both FDI and FII funds, loss of confidence in attracting foreign funds thanks to retrospective changes proposed in some of policies relating to tax on international investments etc are not favourable for investment and growth in the near future, the Reserve Banks' policy is the only hope left to put the economy on right and growth track. Will RBI heed to the requirement?

- Dr.T.V.Gopalakrishnan

RBI may plan differential rate regime for fiscally weak and strong states

The Reserve Bank of India (RBI) may be contemplating measures to minimise the distortions in borrowing rates of state governments where both fiscally sound and weak ones pay nearly the same rates for their loans, a top central banker said…………….

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Time to look at the common man

..... Once there were signs of the country coming out of recession in 2009-10, the builders again went on developing only luxury homes. Banks went on funding such high-end projects in a big way, even ignoring the RBI's cautions. And HFCs also followed suit in a bid to not lose the market share. Today, if the real estate sector is tottering in high debts, low liquidity and tepid demand, it is because of excessive exposure to high-end projects. The situation has been invited by both the builders and banks and as such both should be equally blamed. The builders should understand that by developing affordable housing projects, which is a long-term viable business preposition, the value earned from focussing on the deserving masses would be more than satisfying.....

Read - The Hindu

Subir Gokarn's view on macro economic concerns

RBI tells mkts to price state bonds on financial health

Mumbai : The Reserve Bank of India (RBI) Deputy Governor Subir Gokarn on Friday said states with weaker finances are able to raise cheaper funds due to the market perception that state debt is sovereign-guaranteed. There was a need to bring about formal institutional fiscal discipline, he said. “State government debt is apparently implicitly guaranteed by the sovereign. So, with or without a formal guarantee the market perceives that state debt has been fully backed,” said Gokarn. Because of this, states with weak fiscal condition don’t pay much premium compared to those with strong fiscal conditions, he added. He was addressing the 14th Annual Money and Finance Conference organised by the Indira Gandhi Institute of Development Research here today……….

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It’s early to act on inflation: RBI

……….. RBI’s stance suggests it will wait for inflation, which has been in the negative territory for eight consecutive weeks since early June, to creep up before embarking on any reversal of its expansionary policies. “However, we are aware that sometime down the line pressure could hit us, and certainly when signs of inflationary pressures show up, we will take action,” he said adding, that the RBI is monitoring the situation…….

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Piling the pressure on D Subbarao to bring down interest rates

……On April 17, it is a given that RBI governor would cut rates. The only issue now is whether there would be a series of interest rate cuts, that has been the cry from industry for long. It looks doubtful given the big inflation variable in the interest rate matrix.

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Farm credit growth declines in Dec quarter

…..The SLBC report also noted that agriculture advances could not meet the targets set by an RBI-appointed Committee. "The performance against benchmark under Agriculture Advances fell short by 1.17 per cent and remained at 16.83 per cent as against the benchmark of 18 per cent," the report stated.……

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Nabard to get Rs 500 crore capital infusion during 2012-13

….As per the RBI's guidelines, the outstanding total resources mobilised at any point of time by a Financial Institution should not exceed 10 times its NOF.  The apex agriculture and rural development bank got a capital support of Rs 1,000 crore during the financial year ended March 2012. At present, the authorised capital of Nabard is Rs 5,000 crore, of which the paid up capital is Rs 3,000 crore……

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States rely more on market borrowing

..... The decline in the share of NSSF is in line with the recommendations of the Shyamala Gopinath committee, which had suggested a reduction in the mandatory share of State governments in the collection of small savings under NSSF from 80 per cent to 50 per cent. The idea is to “equalise the burden shared by the Centre and the States, as the interest rates on borrowings from the NSSF are higher than the market rates.” .......

Read - The Hindu

Govt borrowing creates liquidity stress

.....As liquidity shortage has breached its tolerance, RBI, has reduced CRR on two occasions in the recent past. Notwithstanding the two cumulative reductions, banks on an average borrowed Rs 1.50 lakh crore from the RBI on a daily basis between March 10 and March 31, 2012. What have been the drivers of persistent liquidity shortage in the system in the last six months? ........

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Man of mettle

....Sinha set aside apprehensions of a panel led by former RBI Governor Bimal Jalan, by going ahead and allowing stock exchanges to be listed on rival platforms. This is considered a big reform measure, given the elaborate mechanism he put in place to guard against listing malpractices by the stock exchanges themselves......

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