...........There are distinct advantages in being first off the block in the pursuit of increasing the gold proportion. There has all along been a strong aversion, both in the government and the Reserve Bank of India (RBI), to enhancing the gold proportion in reserves. It is argued that the present price of gold is too high and that it may well crash. The movements of gold and currencies are not predictable. A 9 per cent gold proportion in reserves leaves the Indian economy vulnerable, if gold prices explode. It would be prudent to gradually raise the proportion of gold to, say, 20 per cent over the next 12-24 months.............
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.
Friday, October 5, 2012
Banks urged to report suspicious transactions
Banks are expected to submit reports on fraudulent transactions handled at the branches to the Finance Ministry, but most of such incidents go unreported. The financial intelligence unit of the Finance Ministry will impose penalty on banks that do not report fraudulent transactions, said Sanjay Kumar, Additional Director, financial intelligence unit, Finance Ministry. He was addressing a seminar on ‘compliance with Prevention of Money Laundering Act,’ organised by the National Federation of Urban Cooperative Banks and Credit Societies and Kerala Cooperative Urban Banks and Credit Societies, on Wednesday. He said the financial intelligence unit had imposed penalty on some private banks for not complying with the Act. P.N. Nandakumar, AGM, RBI, Thiruvananthapuram, inaugurated the seminar.
The Hindu
More change as Rs 10 note gives way to coin
Tweak laws to allow Islamic banking: RBI
PUDUCHERRY: The Reserve Bank of India (RBI) has written to the government to "restructure" or "amend" the laws to allow Islamic banking in India. Speaking at a local event, RBI Governor D Subbarao said: "Islamic banking is allowed in many parts of the world, but the Banking Regulation Act of India does not conform to Islamic banking because it allows banks to borrow from and deposit money with the RBI on interest. But we are in correspondence with the government on how our laws can be restructured or amended so that they are in conformity with Islamic banking."...........
Also read BS ....... Islamic banking on radar
Subbarao meets Chief Minister
PUDUCHERRY : The Reserve Bank of India (RBI) Governor D. Subbarao met the Chief Minister N. Rangasamy on Wednesday here. It was described as a courtesy call. The Chief Minister brought to his attention the large number of education loan applications pending in Puducherry.
Hindu
Yes Bank, FT to organise 2nd International Banking Summit in Mumbai on Oct 15-16
........Key speakers include Planning Commission Deputy Chairman Montek Singh Ahluwalia, Corporate Affairs Minister M Veerappa Moily, Banque de France first deputy governor Anne Le Lorier, Banco de Mexico deputy governor Manuel Ramos Francia, Reserve Bank of India Deputy Governors K.C. Chakrabarty, Subir Gokarn, H.R. Khan and Anand Sinha, Brookings Institution President Strobe Talbott,........
Surface switch
In November 2010, the government formed a High Level Committee on Financing Infrastructure under the chairmanship of former Reserve Bank of India Deputy Governor Rakesh Mohan. But when the committee’s report was released on Wednesday, it had metamorphosed into the Deepak Parekh committee. What happened? .............
Govt initiates discussions on crucial issues through panels
........The Rakesh Mohan Committee was appointed to suggest measures on financing infrastructure projects. In meantime, Rakesh Mohan resigned from the committee, and HDFC group chairman Deepak Parekh was appointed its head. In its draft report submitted to Prime Minister Manmohan Singh, the panel recommended hike in railway passenger fares as well as electricity, natural gas and port tariffs. ........
Growth in India's net software exports slides to 10-year low
MUMBAI: The higher risk aversion by the Western outsourcing clients has impacted India's software receipts in the 12 months to June 2012. According to the latest trade data from the Reserve Bank of India (RBI), net software exports grew at the slowest rate of 4% in the last 10 years. .......
'Financial laws should be reviewed every 10 years'
........The FSLRC, which released an approach paper on harmonising financial sector laws on Monday, is likely to propose a sunset clause of about 10 years in its final report to be given to the government in March 2013. “From 1934 (when the Reserve Bank of India Act was passed) to 2012, you cannot have the same legislation in the country. Law itself can give a sunset clause. It could be 10 years and after that the law can be reviewed,” FSLRC Chairman Justice B N Srikrishna told reporters on Thursday.........
Don't forget the CAD
.......The RBI is not a single-issue bank, with a laser focus on inflation, as some might want it to be. Nor should it be such, for a certain amount of active, prudent management is essential to maintain macroeconomic stability in an economy as vulnerable as India’s. In this case, it is clear that the current account deficit is at levels that are, while not yet likely to cause a crisis, certainly enough that observers should worry........
'Fiscal deficit important policy input'
........The board meeting held on Thursday also discussed the Kelkar panel recommendations in this regard, he added. “We also reviewed the global and domestic macroeconomic situations. In that connection, we discussed the Kelkar committee recommendations to the central government. That is relevant and important to RBI because what the fiscal deficit is going to be is an important variable in our monetary policy calculation,” .......
Need to bring down inflation further: D Subbarao, RBI Governor
PUDUCHERRY: India's central bank Governor said on Thursday inflation had to be brought down further, signalling the bank would stick to a hawkish stance, and the size of the fiscal deficit would be a key factor in determining monetary policy.............
RBI keeps up hawkish tone, says fiscal deficit key
.........“We must recognise, it was above 10 per cent, it has come down from double-digit level to what is now at 7.5 per cent. So first, we have to acknowledge that inflation has come down, we need to bring it down further,” Subbarao said. “The number of things that are necessary for inflation to come down, we will take into account, as we go into our October 30 policy,” Subbarao said after a central bank board meeting.........
Central bank's position paper on student loans
The Reserve Bank of India (RBI) is to issue a position paper on educational loans. The effort would be to push the education loan schemes in various banks, on the basis of the complaints the central bank had got from various stakeholders, said RBI Governor D Subbarao. The decision was taken in its central board meeting here, based on complaints that some banks were reluctant to do much on education loans, putting up various conditions for issuing these.........
Government should tackle subsidy issue, says RBI
The federal government must tackle subsidies to restore fiscal discipline, Reserve Bank of India Deputy Governor Subir Gokarn said on Wednesday, highlighting tensions between the country’s policymakers amid fears that it could suffer a credit rating downgrade..........
Won't intervene with rupee unless it turns volatile: RBI Governor
The Reserve Bank of India will not 'intervene' to manipulate the rupee now that it is appreciating, apex bank governor D Subbarao said today. "Our policy is to intervene only to tackle volatility, not otherwise," he maintained............
Services sector grows at fastest pace in 7 months
.........Liquidity injections from the Fed and other major central banks have in the past pushed global commodity prices higher and resulted in rising inflation in emerging markets. That could pose a complication for the Reserve Bank of India which, although determined to fight inflation, may find the task difficult. “The RBI has limited room for policy rate cuts given the persistence of inflation, although further progress on fiscal consolidation and structural reforms may eventually pave the way for some easing,” .........
Cabinet OK for Competition Act changes
......."Voluntary mergers will come under the competition Act, involuntary mandated mergers, amalgamations mandated by the RBI in the case of banks mandated by the IRDA in case of insurance companies...We are asking for exemption. It will be in the Act," Chidambaram said. "We will ask for exemption for that category and the power is in the Act to provide for exemption...These are two cases where the Act already provides for involuntary amalgamation........
Havala, politics and the rupee
.........The Reserve Bank of India should act on its commitment to financial inclusion and amend its Master Circular on risk management to permit small to mid-sized companies (with net worth less than Rs 100 crore) to use these products. And if the havala becomes a noticeable smell in the air, the government should, despite its fiscal constraints, reduce the customs duty on gold to prevent the gold smuggling beast from coming back to life.
5.53 lakh households get ‘doorstep banking’
...........Started as a part of the financial inclusion program of the Reserve Bank of India (RBI) on behalf of several banks by FINO Paytech Limited, the unique program relies on an elaborate BC network comprising the local population, primarily shopkeepers, who act as the “village banker” with a portable equipment. The banking transactions are done through a biometric smart card, which acts as a passbook and ATM card for the account holders.
Read.....
Policy holders need safeguards in new life insurance norms: Experts
.......The Insurance Regulatory and Development Authority (IRDA) has also to see that the Reserve Bank of India (RBI) permit banks to become insurance brokers. The RBI has allowed banks to act only as corporate agents or referral partners........
RBI to allow 4 new banks, begin process this month
.......New banks are expected to make the sector more competitive and promote financial inclusion through greater access to banking services. The RBI had last issued guidelines for new banks in 2001 and given licences to Kotak Mahindra Bank and Yes Bank in 2003. The RBI’s announcement now will imply that the central bank has accepted the government position that it is not necessary to wait for the enactment of the Banking Laws Amendment Bill before the final guidelines are issued. However, the new licences will be given only after Parliament passes the bill.........
RBI's inaction over bank branches in unauthorised premises despite SC order
........Following a ruling by the Supreme Court on bank branches in unauthorised premises, local authorities had initiated action, however, the Reserve Bank of India (RBI) whose rules and guidelines were openly violated, still has not taken any action against the erring banks.......
Read - Moneylife
Banks suspected of laundering let off with 5L fine
...All this unaccounted money, the IB alert said, could have been inducted into the banking system. Worse, the Reserve Bank of India, upon receiving complaints, had audited the functioning of the bank and concluded that 'Know Your Customer' guidelines were not followed by the Mercantile Cooperative Bank. It fined the bank Rs 5 lakh for the lapse. ..........
Read - TOI
Surge in fake Indian currency seizures, Delhi tops the list
Intelligence agencies have seized fake Indian currency notes (FICN) of over Rs two crore face value during 2011-12, the highest seizure in past three years, with Delhi accounting for a major chunk........
Central Bank of India to add 1,750 ATMs in next 6 months
.......TM inaugurated today was the first ATM sourced under common tenders floated by public sector banks, statement further said. There are 1,00,620 ATMs across the country by the end of August end according to the Reserve Bank of India data. Out of these 49,023 are ATMs which are located on the branch. There are 51,597 off site ATMs.
SBI plans to roll out 4,000 'Talking ATMs' for visually impaired
Banking major State Bank of India intends to roll out 4,000 Automated Teller Machines to cater to the needs of visually challenged people in the country. This target is expected to be achieved in the next two years, Rakesh Puri, General Manager, SBI, told Business Line here. SBI on Thursday launched its first ever "Talking ATM" that would allow visually and physically challenged people to access banking facilities at the machine, without having to visit the branches........
Read - HBL
ANU to offer courses in banking
......Certificate courses in trade finance, ALM & KYC, information system banker, project finance course, treasury for RBI employees, quantitative methods, customer service and banking codes and standards, SME, credit card for bankers, debt recovery agents, DRA – tele callers, financial inclusion, basics of banking and credit card operations are under examination.
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