RBI allows RRBs, cooperative banks to transfer funds online

To popularise electronic transfer of funds, the Reserve Bank today allowed regional rural banks (RRBs) and cooperative banks to participate in the centralised payment systems. With this, all the banks can now transfer funds electronically through real time gross settlement system (RTGS) and national electronic funds transfer (NEFT).……..

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More banks can join electronic payment system

In a move to popularise electronic payment system, the Reserve Bank of India (RBI), on Monday, allowed all licensed banks, including urban co-operative banks, State co-operative banks and district central cooperative banks, to transfer funds through the centralised electronic payment system as sub-members. These banks would participate in the centralised payment systems, Real Time Gross Settlement System (RTGS), and the National Electronic Funds Transfer (NEFT), through their sponsor bank, which is a direct member of this system, the RBI said in a notification to all banks.......

Read - The Hindu

‘Note’ worthy: Fake currency flooding banks

….Sources in the RBI said in a meeting of Fake Indian Currency Notes (FICN) Co-ordination Cell (FCORD), fake currency operators are using banks in West bengal’s Malda district to introduce fake notes into organised banking channels…..

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Proposed KYC depository may not be limited to banking sector

….The central know-your-customer (KYC) depository announced in the Union budget may not be limited to just the financial sector but may include others such as telecom as well. The KYC database is expected to facilitate easier customer acquisition and reduce the possibility of fake documents being used as identity proofs.……

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Ministry wants bank audit panels to get more time to vet earnings

….The audit committee is part of the bank board. At present, both the audit committee meet and the board meeting take place on the same day, because of the price-sensitive nature of the information. The bank management first presents the balance sheet to the audit committee, which then approves and gives it to the full board on the same day. The results are communicated to stock exchanges after the board approves these……..

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Dhanlaxmi Bank to grow gold loan business

......Speaking to newspersons in Mumbai on Monday, Mr Jayakumar said gold lending is a very attractive and secure business and many banks are aggressively pursuing it. The RBI is perhaps more comfortable with banks doing this business than NBFCs because banks follow the required Know Your Customer norms before giving loans.........

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Most candidates who clear bank clerical exam are from UP

......Uttar Pradesh had the highest number of successful candidates in the common written exam for clerical posts conducted last year. The Institute of Banking Personnel Selection had conducted the exam for recruitment to 19 public sector banks in four phases during November-December 2011.....

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Be wary of investment schemes that guarantee very high returns

.....The RBI and Sebi regularly issue public notices and warnings about such schemes and companies. In a July 2011 notice, the RBI observed, "Certain firms posing as MLM agencies for consumer goods and services have been mobilising large deposits from the public (with promise of high return) by opening accounts at various banks. These funds, running into crores of rupees, were being pooled at the principal accounts of the firms and eventually flowing out of the accounts for purposes appearing illegal or highly risky."..........

Read - India Today

RBI fixes Rs 50,000 cr ceiling for market stabilisation scheme

In order to absorb excess liquidity, the Reserve Bank has pegged the quantum of intervention through Market Stabilisation Scheme (MSS) at Rs 50,000 crore...........

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RBI cancels licence of Bhadran Cooperative Bank

The Reserve Bank of India (RBI) has cancelled the licence of Gujarat-based Shri Bhadran Mercantile Cooperative Bank, following deterioration in its financial condition and save the interest of depositors. The decision was taken in view of the fact that bank had ceased to be solvent, all efforts to revive it in close consultation with the government of Gujarat had failed and the depositors were being inconvenienced by continued uncertainty, RBI said in a statement……….

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Sahara co-op society not under us: RBI

….In an e-mail response to the complaint, a senior RBI official said, “It is observed that your complaint pertains to the functioning of Sahara Credit Co-operative Society Ltd., which is a co-operative credit society. We advise that Reserve Bank of India (Urban Banks Department) does not regulate and/or supervise the functioning of co-operative credit societies.”……

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Credit growth to Gujarat small units shrinks

….“There is immense uncertainty in the market. We do not know what the Reserve Bank of India (RBI) will announce in its monetary policy review later this month. Macro economic factors are hurting. All banks are concerned about an increase in non-performing assets (NPAs),”……

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Service tax: Your bills will jump. So will inflation

……..The RBI has repeatedly urged the government to get a handle on its wayward finances in the past. However, apart from an assurance of reducing the fiscal deficit to 5.1 percent by the end of the next financial year, there was no road map on how it plans to reach that mark. So, overall, high service charges, climbing inflation and lower chances of an interest rate cut. Not a great way to start the new financial year.

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RATE CUT WILL BE A CLOSE CALL

Reserve Bank of India (RBI) Governor D. Subbarao will present the first monetary policy of fiscal year (FY) 2013 next week. Interestingly, when one looks back, the first monetary policy of FY12 was a watershed event. The RBI changed its approach of gradual calibrated tightening and surprised the markets with a 50 basis points (bps) hike in rates. One bps is one hundredth of a percentage point. RBI firmly acknowledged that in the long run high inflation hurts growth because investment suffers from inflation uncertainty............

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Crisil floats new method to measure core inflation

....According to some school of economists, the core measure used by the RBI has two drawbacks: a) It is prone to volatility: it includes base metals prices, directly linked to international price movements, which are influenced by temporary shocks and b) It is less useful for gauging future demand-side pressures: it excludes processed food prices (manufactured food)......

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