.....It is important that all such accounts are active and do not end up like no-frill accounts, a majority of which are dormant and hence unviable," said a top executive of a public sector bank. The government has also decided to extend its financial inclusion drive, called 'Swabhimaan campaign', to habitations with population of more than 1,000 in the north east and hilly states as per the 2011 census. The ministry maintains this model of financial inclusion is not in conflict with the blueprint prepared by the Reserve Bank of India. "There are no differences and the RBI's model of "one district-many banks-one lead bank" is being followed," another finance ministry official said.
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.
Tuesday, May 29, 2012
RBI asks co-op banks to formulate norms for conversion of FDs
Reserve Bank on Monday permitted cooperative banks to formulate policies to check the practice of premature conversion of fixed deposits into other deposit schemes by customers with a view to obtaining higher interest rates. "In order to facilitate better Asset Liability Management (ALM), it has been decided to permit banks to formulate their own policies towards conversion of deposit with immediate effect", RBI said in a notification..........
RBI eases banks' short term deposit restrictions
The Reserve Bank of India has removed restrictions imposed on banks which earlier prevented lenders from levying penalty on customers for foreclosure of some term deposits..................
Read......
Read......
Maharashtra State Co-Op Bank omits key information from its annual report
......In the 2010-11 fiscal, according to the annual report, it is pertinent to note that the company was imposed a penalty of Rs5 lakh, for non-compliance of Reserve Bank of India (RBI) directions issued u/s 35A of the Banking Regulation Act, 1949 (The Act). According to Section 35A of the Act, it gives RBI the powers to give directions to a bank, in the interest of depositors and to safeguard their interests. Furthermore several deviations were noted in the annual report and stated in verbatim, below:
Has cloud computing come of age?
......While there’s excitement over the benefits of the cloud, Mahajan cautioned that the industry needs to address the issue of data sovereignty. “RBI (Reserve Bank of India) mandates all the banks and their branches to keep data within geographic boundaries. Hence, there is a gap for pure public solutions,” he said. Garkel of Deloitte agreed that the main concern today was from a regulatory perspective as it (the cloud) had not come under the purview of RBI. For example, regulatory perspectives regarding audits are yet to be introduced in the area of cloud computing. Currently only non-core activities are in the cloud. “There has to be more clarity on how the regulatory landscape evolves,” said Garkel........
Banks can lower interest rates if CRR cut further: SBI
Ahead of RBI's mid-quarterly policy review, State Bank of India today said a cut in cash reserve ratio (CRR) will give a room to banks for lowering interest rates."More the RBI cuts CRR, greater will be the ability of banks to reduce rates," SBI Chairman Pratip Chaudhuri told reporters here................
RBI and 926 bank branches to collect advance income tax
...."As many as 926 computerised branches of public and private sector banks will receive...These arrangements have been made for the convenience of the income tax assesses," RBI said in a statement.......
Read............
Read............
Here, women deal a ‘biz’ blow to dry spell
........Manndeshi Mahila Sahkari Bank, which was started in Mhaswad in 1997, has been able to transform thousands of lives in rural Satara. The bank is the first micro-financing initiative in India and tends only to women. Riding on women power, the Mhaswad-based bank has now reached Vaduj, Gondavale, Dahiwadi, Satara and Lonad along with two mobile branches. Each branch has “Rural-B schools” which helps women learn various skills and encourages them to form self-help groups for better sustainability. Despite economic slowdown across the globe, this women bank has grown to Rs2.25 crore from an initial capital of Rs6 lakh. Women are managing finance better than men. “Our repayment rate is 98%. As women are programmed to save more and manage better than men, we were sure about the success of the bank though our application had been rejected by RBI initially,” says Chetna Gala Sinha, the founder of the Mann Deshi Mahila Bank, who gathered all illiterate women of Mhaswad to launch this bank in 1997......
Nabard FY14 operating surplus soars 28 pc to Rs 1,635 cr
.....Serving special needs, the bank ploughs back the surpluses in its reserves and other funds and does not pass on anything to the government which owns 99 per cent stake in it with the remaining 1 per cent being held by the RBI, the bank said in a statement issued here. A Bill is pending in Parliament to allow the RBI to divest this residual one per cent stake too. Earlier, the RBI and the government were equal owners of the development bank.............
Tread cautiously on risks, Pranab tells banks
...... the Financial Services Secretary, Mr D.K.Mittal, later told reporters that the current gross NPA level of over 3 per cent for 2011-12 was a matter of concern, but there was no need to panic. “Indian banking system is much sounder than the European system,” he said. Mr Mittal highlighted that there was continued efforts to address the NPA issues in the Indian banking system. Asked whether the Government, in consultation with the RBI, was contemplating a special dispensation for asset recognition in the wake of the current difficult economic environment, he replied in the negative. “There is no need for separate dispensation. Banking system has to face the challenge,” he said..........
Will RBI and government learn their lessons from current crisis?
.....If you do not consolidate your gains and reform during your good times you are forced to do that in the worst of times. If the RBI and the government learn that one lesson from the current crisis, we will have done well. Is that too much to hope for?
Read............
Read............
‘Rupee slide to have less impact on sovereign ratings'
.....However, the rupee's fall is also a result of India's existing credit weaknesses such as loose fiscal policy, which has boosted domestic demand, inflation, and import spending; government subsidies, which support India's reliance on imported commodities; and domestic regulatory uncertainties, which have deterred foreign portfolio and direct investment........
Read - The Hindu
Read - The Hindu
RBI's two options to guide rupee
RBI deployed strong ammunitions to dilute the momentum in rupee fall but could not prevent the “run” into 56-57 (low of 56.39). This is seen as strong support zone for rupee where genuine .................
Read.............
Read.............
Rupee decline fans inflation risk
....The Reserve Bank of India will probably be unable to lower borrowing costs until October-to-December, Goldman said. Tushar Poddar, an economist at the company in Mumbai, wrote in a note to clients that the RBI will now likely lower interest rates by half a percentage point in the final three months of 2012, compared with the 75 basis points previously forecast
.
Mobile money: Kenya good, India bad
Although the government made a similar push for inclusion in India, the Reserve Bank of India took a more cautious approach when the product was introduced last December. Vodafone could offer its mobile service, says Joseph, but it had to team up with a bank to materially cash in and cash out the transfers.................
Ahmedabad SE plans revival, will sell land to raise net worth
....Tie-up talks between NSE and ASE have been going on for two years. The plans got delayed as Sebi had set-up a committee under former Reserve Bank of India (RBI) governor Bimal Jalan to study working of stock exchanges and prepare a road map. As per recent norms all stock exchanges in India should have a net worth of Rs 100 crore. ........
BANKS SWELL WITH DEPOSITS, DON’T LEND A PENNY IN JK
.....Pertinently, during his visit to the state in March this year, Reserve Bank of India (RBI) governor, Dr D Subbarao had also slammed the banks for having dismal CDR in J&K. According to observers, the CDR should have increased in view of “peace in the state last year”, as compared to past three years when the Valley saw different agitations..........
Subscribe to:
Posts (Atom)