RBI office to improve credit-deposit ratio

....The RBI office in Shillong is the third in the Northeast after Guwahati and Agartala. It is in Apphira Building, Fruit Garden, along the Shillong-Jowai Road, and will function under the charge of General Manager P. Shyam Sunder. The office is expected to focus initially on the development of banking services in the state, and gradually take up other central banking functions........

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Former Reserve Bank of India deputy governor Rakesh Mohan on the outlook...

India's economy could return to growing by eight per cent in the medium term, thanks in part to the "pretty good" financial health of the domestic corporate sector and the country's strong savings, says Rakesh Mohan, former Deputy Governor of the Reserve Bank of India

Ringside view of the economy

I. G. Patel’s remarkable quality of being willing to change his views when confronted with new data served him well in his policy-making role.I. G. Patel was clearly not enamoured by all the talk of India becoming a superpower in years to come. He favoured a more modest role for the country.............

Read - HBL

RBI stresses entrepreneurship in NE to raise CD ratio

Shillong : ....Notwithstanding the backwardness of the region in terms of financial exclusion, the RBI Dy Governor said that banks and state governments have to work towards achieving overall growth. “There is no inclusive growth without financial inclusion, which is linking everybody with banks,” Chakrabarty explained.......  

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RBI to float global tender on polymer bank notes

SHILLONG: The Reserve Bank of India (RBI) would soon float global tender for introducing polymer currency notes, Deputy Governor K.C. Chakrabarty said Friday. "We have already submitted our proposal to the Ministry Of Finance and Ministry of Home Affairs for clearance. Once it is cleared, then our next process is to float global tender for introduction of polymer bank notes," Chakrabarty told journalists after inaugurating the RBI branch office here in Meghalaya.....

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Distribution, delivery problems leading to coin shortage

Shillong, August 24: RBI Deputy Governor KC Chakrabarty said “distribution” and "delivery” are the contributory factors leading to shortages of coins and currency notes in the country........ 

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Trader held with counterfeit notes worth Rs 29k

...The fake notes which initially fooled some bankers have watermarks that look exactly like those on genuine currency. Bank employees were on strike when crime branch officials seized the fake currency. "Since we could not use the UV machine at any bank, we headed to a petrol pump where UV light machines are a norm. A petrol pump employee however was quick to recognize the counterfeits by feeling the currency note. He told us 'The Reserve Bank of India' on currency notes is embossed. This was not so in the fake notes. A metallic strip that runs down the middle of currency notes appears green and blue at different angles in genuine notes, in the fake it remained green. The UV light later further confirmed what the employee had said.

Read - TOI

If Subbarao’s a hawk, he should be raising interest rate

....Not one of the analysts polled before the policy thought that the central bank should raise rates, which is what this writer has been urging for months. Apart from raising rates, the Reserve Bank of India (RBI) should move to a fixed CRR (cash reserve ratio) regime, instead of tinkering with it all the time. It would be even better if it abolished paper money – created by the printing presses – but this would be a really outlandish suggestion for the current crop of central bankers who love to print money..........

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DRM for Banking

Sanovi Technologies has announced its DRM for Banking solution. This software complements the company's existing DRM Suite, helping banks automate their Business Continuity and Disaster Preparedness plan and comply with the regulations and guidelines set out by the Reserve Bank of India. This launch comes in the wake of the approaching one-year deadline set by the RBI's Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds (also known as the Gopalakrishna Committee) for implementation of their recommendations on Business Continuity Planning (BCP) in Banks. In its role as regulator for banking operations in the country, the RBI had issued its policy guideline contained in the report of the Working Group under the Chairmanship of Shri G. Gopalakrishna, Executive Director, RBI...............

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Don’t wait for RBI

......A reduction in the headline rate of interest by the RBI will help in the short term. What will help more in the long run, however, is for investment to be treated as a matter of urgency by the government.

Read - Indian Express

ICAI to meet FM on bank branch audit in September

....A committee comprising officials of the RBI and the Ministry of Finance had proposed increasing the minimum advance limit for the PSU bank branches eligible for independent audits from Rs 6 crore to Rs 20 crore from 2012-13.......

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Chennai Youth Discover the Awesome Power of Compounding

``Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn`t, pays it.``..........

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India not saving enough, says RBI

....“According to the preliminary estimates released by the Reserve Bank of India (RBI), the drop in net financial savings can be attributed to an absolute decline in small savings and lower growth in households’ holdings of deposits, currency and life insurance funds,”.....

Read - DNA

Bengal urges financial institutions to set up offices in Kolkat

....West Bengal Government minister for Urban Development and municipal affairs Firhad Hakim said Kolkata was one of  the fastest growing financial cities in the country and the industry should benefit from the locational advantages on the newly planned hub. Representatives of banks Reserve Bank of India, State Bank of Hyderabad, Andhra Bank, Canara Bank, Bank of Baroda, SIDBI and other financial institutions were present in the meeting.

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Karnataka Banking Ombudsman resolve 3,563 complaints in a year

Bangalore: Karnataka's banking ombudsman received 3,647 complaints and resolved 3,563 of them between July 2011 and June 2012, reports PTI. "The complaints pertained to net banking frauds, delay in payment of pension, clearance of cheques and issue of credit and debit cards," Karnataka's Banking Ombudsman M Palaniswamy told reporters......

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Sebi seeks further comments on financial education strategy

.....The draft National Strategy has been prepared under the aegis of the Sub Committee of the Financial Stability and Development Council (FSDC) and the time line is being simultaneously extended by all financial sector regulators, Sebi said. FSDC has representation from Sebi and RBI among other regulators and policy makers of the country.......

Read - ET

RBI for Singaporean way of project clearance, blames babus

Mumbai: Alarmed by the slowdown in infrastructure projects due to policy delays, the RBI  put the onus on the bureaucracy, reports PTI. It advocated the Singaporean practice, where multiple agencies and ministries sit together to give their decisions on  investment project clearances quickly. "The onus for such clearance clearly rests on the bureaucratic machinery," RBI said in its annual report, released on Thursday........

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Gold loan cos cut rates by 300 bps on new norms

Increased competition from banks and stringent regulations from the Reserve Bank of India, such as stricter KYC norms as well as the 60% cap on loan-to-value (LTV) ratio, has forced gold loan companies to lower interest rates to attract borrowers..........

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Government ropes in corporate honchos to reform regulatory norms

....Apart from corporate leaders, the committee includes sectoral experts from banks and research institutes and representatives from ministries such as finance, commerce and industry, power, petroleum and also the Reserve Bank of India. The committee will gauge and suggest ways to improve the compliance climate in India and also suggest measures to incorporate good corporate governance practices to bring in credibility in conducting businesses...... 

Read - ET

Traders come down against bank stir

Kochi : .... Earlier, the RBI had made a clearance arrangement through a few new generation banks in the event of a strike. But the step was not effective. The striking employees have been found to disrupt the smooth functioning of the alternate arrangements as well. “Earlier, the RBI had taken steps for the speedy clearance of transactions. But since the strike was an all-India one, the system could not come handy,” said K S Raveendran, Special Assistant, Reserve Bank of India...... 

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