The Reserve Bank of India has decided to rope in a third-party consultancy firm to help it incorporate global best practices in its supervisory role and prepare the risk ratings for various banks in the country. RBI currently conducts supervision of banks through an annual inspection of the banks and their offsite monitoring, but has now decided to rope in an outside agency to assist in its supervisory role in the wake of a sharp growth in the Indian banking sector in the past few years. The third-party consultancy firm would help RBI benchmark the global best practices in supervisory processes, develop risk profile templates and risk rating of commercial banks, and prepare a supervisory manual for conducting risk-based Supervision system........................
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Monday, May 7, 2012
Government writes to RBI for new NBFC category
New Delhi: The government has written to the Reserve Bank of India (RBI) to create a separate category of state-owned non-banking financial companies (NBFCs) that would face less stringent capital requirements, in order to allow the registration of a state-run infrastructure funding agency as one, the top official of the lender said.....................
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Goa police to seek RBI's help to check lottery scam: DIG
Goa police will seek help of the Reserve of India (RBI) to take action in the email and lottery scam going on in the state. Deputy Inspector General of Police Ravindra Yadav admitted that it was a matter of concern that people were falling prey to these gangs, who are mostly international criminals. He said in several cases, the gangs operate a certain bank account and abandon it after getting money from the victim.The 'know your customer' (KYC) policy of the banks usually doesn't allow dubious customers to open accounts, but the increasing competition among the banks to get more clients has left KYC policy ignored on several instances, he said, adding that the help of RBI's regional office would be taken to crackdown on these gangs............ Read.......... |
Dr Subbarao, easy money isn’t the answer. Stand firm
...............Dr Subbarao, as you set your monetary policy goals later this month, think of the retirees and middle class earners who lose the value of their income and savings from easy money. It may seem like a lonely fight when you deal with the political and governing class, but there is a silent majority that appreciates sound money and stable prices. In the movie, the Knight Templar and his fighters are on the verge of defeat when the French army arrives to save the battle. For the central bank the path back to sound money is a long one. It’s not a battle of swords or guns, but a battle of ideas. If the Reserve Bank really wishes for sound money, it has make the concept easy to grasp for the average citizens. Then it will see support rise for inflation fighting..................
IOB to migrate to Oracle platform, after RBI diktat
.......The Reserve Bank of India has told all banks to have a common platform -- Oracle -- for their database, so as to streamline the ‘automated data flow' (ADF). The ADF is a system through which the RBI will be able to ‘pull' any information it wants from a bank's dedicated server.............
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RBI issues alert against e-mail fraud
...........The fraudsters often have multiple accounts in the names of individuals or proprietary concerns in different bank branches for collecting such charges,” Alpana Killawala, Chief General Manager, said.
After accumulating a sizeable amount in these accounts, the fraudsters withdraw or transfer the money abroad and vanish, leaving the victims in the lurch, the official said.
UIDAI: Finance Ministry gives cold shoulder to Aadhaar project
Several players in the banking system are unsure about the UIDAI system at this point of time. This includes KC Chakrabarty, RBI deputy governor in-charge of financial inclusion, who feels banks should do authentication because Aadhaar is not ready. "Aadhaar was to give ID to people without cards, but it is giving to those who don't need one," he said. "Even if it signs up 500 million people in the next five to six years, and they are all people like you and me, it will not serve any purpose."..............
Trauma of death of a bank depositor - S.S.Tarapore
.................In the year 2000, there was a family dispute within a prominent business family on the assets of the deceased depositor. The response of the Reserve Bank of India ( RBI) was to issue very harsh measures and a deceased depositor's funds were to be released only after the successors produced a succession certificate or a letter of administration or a probate, all of which was beyond the capability of the Common Person In more recent years, the RBI has taken significant measures to streamline the procedures relating to the death of a depositor. In a benchmark circular dated June 9, 2005, the RBI Department of Banking Operations and Development set out a simplified and transparent procedure for settling the claims by the survivors/ nominees of a deceased depositor..............
Adding equity muscle to banks
These are testing times, indeed, for Indian banks. On the one hand, a slowing economy and repayment stress experienced by corporates have led to a piling up of bad loans. The so-called gross non-performing assets of the banking industry are estimated to have crossed 3 per cent of their total advances. The ratio would probably be twice or more if one also includes cases of ‘corporate debt restructuring' that entail bailouts to troubled borrowers by way of interest rate reductions or rolling over repayment obligations. In such a scenario comes the Reserve Bank of India's (RBI) move to issue the final guidelines for implementation of the latest Basel-III international banking capital regulation norms........
MANY SIDES TO A COIN!
.......The University of Mumbai has been conducting the M A ( Numismatics & Archaeology) programme through the DMINA for the last three years with three batches of numismatists out in the field. The two- year programme is conducted on the premises of the institute along with the Dinesh Mody Numismatic Museum which was established by Dinesh Mody, a senior Mumbai- based advocate and an eminent numismatist with large collections of Indian and world coins...........
Rupee depreciation: Not RBI, only government can make a difference
.....The way things have moved, RBI can only make peripheral impact on the currency. Only the government, if it musters the courage, can make a difference.......................
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Attracting FDI: Clarity in policy is the need of the hour
...........The RBI report gathers evidence through a panel exercise that actual FDI to India during the year 2010-11 fell short of its potential level partly on account of policy uncertainty. However, surmises apart, the real reasons behind the ebbing FDI are still to be ascertained. ...............
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Is our growth story going awry?
.............. RBI’s tightening since 2010 also affected investments at the margin. But his main point is that structural factors like the “still unfavourable business environment, weakening governance, and slower government project approvals may be depressing investment. Costs of doing business in India remain one of the highest in the world, and according to the World Economic Forum, in recent years, an increasing number of people are concerned about weakening governance in India”..............
RBI finally succumbs to market, Govt pressures - T.V. Gopalakrishnan
While announcing the policy in January 2010, the Governor, Reserve Bank of India, made an observation that “getting out of an expansionary policy is much more difficult than getting into it. It is like a Padma Vyuha in Mahabharatha –you know how to get in but not many people know how to get out.” ..................
TMB requires no capital infusion to meet Basel III
.........“We met with RBI officials few days ago and they were apprehensive about our preparedness to meet Basel III norms. They were relieved to know that we would not require any capital infusion till the year 2019,” AK Jagannathan, managing director of TMB told................
Indian households expect inflation to accelerate
The RBI has forecast an inflation rate of 6.5 per cent by March 2013. But according to its latest Inflation Expectations Survey of Households, most Indians think the inflation rate may well be 12.5 per cent by then.........
Private gold loan companies seek level playing field
Faced with the recent guidelines skewed in favour of nationalised banks, private gold loan companies (non-banking financial companies or NBFCs) have urged the Reserve Bank of India (RBI) to provide a level playing field. Through the Association of Gold Loan Companies (AGLC), headed by George Alexander Muthoot, managing director of Muthoot Finance, NBFCs have submitted a representation to RBI to reconsider its recent decision with regard to loan-to-value (LTV) and lending against gold coins.................
Why NRI deposit rates are rising
.......2012 is not 1991. So, the government mandarins and the Reserve Bank of India say every time one asks about the deteriorating macro-picture. ‘Our position is not that precarious', is the message they want to convey. But the steps being taken to address various problems only heighten the eerie similarities in the macroeconomic situation. Certainly, we seem to need foreign exchange now as we did then.......
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