RBI workshops to work on stopping ‘parallel economy’

To deal with the parallel economy, what the fake currency note system is un-popularly known for, the Reserve Bank of India (RBI) is stressing more on customer awareness. The regulator bank apart from publishing advertisements pointing out unique features of Indian currency would also organise workshops to tame the menace.

Directing to hold such an awareness camp in Ranchi, Suma Verma, Chief General Manager, of the RBI instructed General Manager HN Panda about this while adding that the problem can be rectified by working in tandem only..........

Read - The Pioneer

'Super regulator not ideal solution for financial sector'

M Damodaran, Former Chairman of SEBI believes there is no final solution to what could be the best structure for a regulatory authority.Damodaran points out that every regulatory organization has over the years developed its own identity and has its own philosophy to regulate that part of the financial world......

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Social banking and finance – opportunities in inclusion

Session keynote address by Dr K C Chakrabarty, Deputy Governor of the Reserve Bank of India, at the 2nd FT-YES Bank International Banking Summit, Mumbai, 15 October 2012

........With the introduction of banking technology and the realization that poor are bankable, the coverage of unbanked population into the financial system is expected to improve. Financial inclusion, along with Government’s developmental programmes, is expected to result in overall financial and economic development in the country. As in the case of most developing countries, extending the banking services to unbanked groups is expected to be the key driver for inclusive growth.........

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Forecasts: Love them? Hate them? Use them

Everybody loves a forecast and wants to know where dollar-rupee is headed. This is natural because forex is the business of every importer/exporter. Even the RBI conducts a Survey in which it seeks the views of professional forecasters on various aspects of the economy, including the Rupee. Yet, people tend to have very low respect for forecasters. This is not so much because their forecasts tend to go wrong. What people do not like is the lack of sense of accountability displayed by many forecasters, whether in banks, in companies, or outside. Even G Padmanabhan, Executive Director, RBI, lamented this fact at his recent “Goa to Goa” speech on 23rd August......

Read - HBL

Trust completes two-years, spread financial literacy among 2.44-lakh people

MANGALORE: Jnana Jyothi Financial Literacy and Credit Counselling Trust, jointly sponsored by Syndicate Bank and Vijaya Bank, and Set up according to the model scheme of Reserve Bank of India on October 20, 2010 has completed two years of service. The Trust so far has opened 32 centres in 25 lead districts in India, of which 14 centres are in Karnataka, five in Andhra Pradesh, two in Kerala, six centres in Uttar Pradesh and 5 centres in Haryana........

Read - TOI

'Choking demand through monetary action suicidal for growth'

 The Reserve bank should not always use monetary tools to control inflation as choking demand will be "suicidal" for economic growth, Assocham said Sunday. The chamber said that in a study a majority of 200 participants said that it is wrong on the part of RBI to be obsessed with always using monetary tools to control inflation.......

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A problem of coordination?

With the govt failing to rein in the fiscal deficit, RBI may think twice before agreeing with suggestions of a rate cut

Should there be close coordination between the fiscal policy authority, the Union finance ministry in New Delhi, and the monetary policy authority, the Reserve Bank of India (RBI) in Mumbai? Yes, in the normal course, there should be close coordination between the two authorities. This, of course, should be without any one of them undermining the independence of the other. The economy and all economic entities will gain if the finance ministry and RBI were to see eye to eye on what needs to be done to achieve higher growth with low and stable inflation.............

Read - BS

‘Wrong notion among people’

A.S. Rao, Regional Director of Reserve Bank of India on Friday said there was a wrong notion among people that the State Government would come out with an agricultural loan waiver scheme......

Read - The Hindu

It's time to focus on growth

.........The government has done a great deal to assuage the RBI’s legitimate fear of a huge fiscal deficit, and should commit itself to doing even more in the coming months. But the RBI must take its assurances on trust, for it can make the next cuts only after industry and employment begin to grow and spending power starts to rise once more. Dr. Manmohan Singh needs to make this clear to the RBI Governor and remind him forcefully, as he reminded his predecessor Y.V Reddy when the latter was reluctant to bring down interest rates even after the onset of global recession in August 2008, that when push comes to shove it is the RBI Governor who holds his post at the government’s pleasure and not the other way round.

Read - The Hindu

High time RBI props up growth, say banker

.........“While monetary policy needs to focus both on inflation and growth, given the recent fiscal measures, which are hopefully going take us towards a better situation on fiscal consolidation, I think the leaning of policy right now needs to be on growth,” ...............

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Basel III or basic growth: Take your pick

.....While the Basel III guidelines improve the ability of banks to withstand financial duress by implementing more stringent capital requirements, raising the capital to fulfil the Basel III requirement is a major challenge for Indian banks. Basel III released in December 2010 is the third in the series of guidelines written by the Basel Committee on Banking Supervision (BCBS) whose mandate is to set the reform agenda for global banking sector. Basel I and Basel II are earlier versions and were less stringent. Named after Basel in Switzerland , which is the headquarter of Bureau of International Settlement (BIS), the Basel norms focus on risks to banks..........

Read - The Pioneer

Aadhaar will now be used as identity proof, for bank KYC

Read - TOI

Student falls prey to impostors

......Scamsters said the payments will be routed through Reserve Bank of India and put up a fake website resembling the central bank's original website. Further, the email is sent by fraudster with complete address and contact details as RBI employee. The cyber crime cell of UP police has traced the gang to Delhi........

Read - TOI

'1L ATMs to be opened in next 4 yrs'

.......The study titled 'The Indian ATM Industry: Gearing Up for the Next Phase of Growth' said, several forces are driving the heightened importance of ATMs in India. The biggest push has come from the Reserve Bank of India. RBI, in conjunction with the government of India, has been focusing on the issue of financial inclusion for some time now, it noted......

Read - Indian Express

Soon, open a bank account with the swipe of a finger

.............The Unique Identification Authority of India ( UIDAI) is ready with electronic know-your-customer authentication (eKYC) service which will pave the way to provide identity and address proof by just providing your fingerprints for biometric identification. Officials said the facility of a one-touch eKYC could start as early as next month after government and other agencies, such as Reserve Bank of India (RBI), notify the new norms that explicitly provide for Aadhaar as a valid identity proof.............

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Over 50 conned by cyber thugs in 60 days

Cyber fraudsters have duped more that 50 people through the duplicate Reserve Bank of India (RBI) web page in the past two months. The fact came to light during the investigation of Devendra Singh con case, where...

Read - Hindustan Times

Code of Bank’s commitment to Customers: Long on promise but short on performance !

Despite core banking and full scale computerization, the quality of service in banks has generally deteriorated and the Code of Bank’s Commitment to Customers has done precious little to improve it. It is only by making the minimum of level of quality of service mandatory that public can hope to get trouble-free, stress free and tension free banking, which they rightly deserve. Banking Codes and Standards Board of India (“the Board”) has issued an advertisement in newspapers recently, inviting suggestions for improving the Code of Bank’s Commitment to Customers (“the Code”) introduced by the Board in August 2009 for compliance by banks and which is now due for review..........

Read - Moneylife

More credit to farm sector urged

.....the credit deposit ratio in the State stood at 115.53 per cent on June 30 as against the prescribed minimum of 60 per cent by the RBI and emphasised the need for resource mobilisation, especially in untapped rural, semi-urban areas. Minister for Cooperation Kasu Krishna Reddy, Minister for Handlooms Prasad Kumar, RBI’s Regional Director A,.S. Rao and Chief secretary Minnie Mathew also spoke.

Read - The Hindu

Axis Bank forms new unit for i-banking

......The deal, first announced in November 2010, went through many changes because the Reserve Bank of India (RBI) refused approval, most notably because Enam’s founder chairman Vallabh Bhansali was offered an Axis bank board seat in the initial deal.............

Read - Mint

RBI policy must prioritise price stability: Rangarajan

.........C Rangarajan, Former RBI Governor said the objectives of monetary policy have been growth and price stability amongst others, but the latter should be given priority. He further clarifies, though the RBI is saying that inflation is at an uncomfortable level, there has to be an idea about the comfortable level. Essentially, that would force monetary authority towards targeting a single number and that according to Rangarajan, can be reached through an ideal price stability..............

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Promise belied

.......The Reserve Bank of India has just released its regular survey of the finances of select public limited companies for the year 2010-11, covering a sample of 3,485 companies, and providing information on their aggregate foreign exchange expenditure and earnings.......

Read - The Hindu

Too soon for central bank rewards

............The RBI gave the government an undeserved present when it unexpectedly reduced its interest rate by half a percentage point in April — the first cut in almost three years, and one that didn’t do its credibility to fight inflation much good. It’s too early for the government to expect another reward.

Read - BS

Universal slowdown, common dilemma

........The RBI, among others, feels handicapped in implementing monetary policy because of the absence of support from the fiscal authorities. Inflation is up on the ascendance. The RBI will continue to face its own dilemma-whether to focus on controlling inflation or encourage the flagging growth through possibly lower interest rates.

Read - The Hindu

Relationship manager or salesman?

.......The more complicated part is the redressal mechanism. A bank is regulated by the Reserve Bank of India, but its insurance arm is under the Insurance Regulatory and Development Authority and the brokerage arm under the Securities and Exchange Board of India. Under these circumstances, you may have been sweet-talked into buying an insurance product by a bank employee, but the redressal may often lie with some other regulator...........

Read - BS

Caught in the gold trap

......Till restrictions were lifted on gold import and a few commercial banks were allowed to import gold and sell the yellow metal to jewellers and exporters in 1997, the spread between the London and Mumbai market prices was huge but that has shrunk dramatically. There is no incentive for gold smuggling any more but with the bank and post office branches selling gold coins to retail customer, we are facing a different problem—wider current account deficit. Historically, the government and the Reserve Bank of India have tried hard to wean away people from gold and bring the yellow metal out of the household closets for productive purpose without any success...........

Read - Mint

Needed, a level-playing field for public sector banks

......Financial inclusion can never be complete without financial literacy. This can be achieved only by making the rural folk aware of all the banking products and how they can benefit by them. Much more needs to be done in the area of inculcating financial literacy if the purpose of financial inclusion is to be served...........

Read - HBL

PNB chosen as the best public sector bank

Central Bank adopts new management solution to speed up process, cut costs

Central Bank of India has implemented a human resource management solution (HRMS) package to improve the productivity of its 36,000 odd employees, ensure skill development and chart out succession planning. After automating all customer-centric functions through the core banking platform, the bank has done the same for its internal customers (employees), said Executive Director V.R. Iyer. The HRMS package, which has been implemented by IBM, has automated 30 human resource (HR) processes, including pay roll, leave application, reimbursement of hospitalisation, newspaper, and leave travel concession, and booking of holiday homes..........

Read - HBL

RBI softens stand on FDI with in-built options, proposes one year lock-in period

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FDI in retail: Much ado about nothing

........ Relying on the Foreign Exchange Management Act (FEMA), notably Annexure “A” of which contains prohibition of FDI in retail trading (except single brand which was partially opened up in 2008) the petitioner has alleged that the DIPP notifications have been issued in bad faith to over-reach the RBI, or more specifically the provisions of FEMA. Fortunately, the Hon’ble Court did not stay the FDI policy. However, the Attorney General (AG) who appeared for the Union of India was directed to ensure that RBI amends the FEMA regulation. This led to considerable media speculation on the oral observations ostensibly made by the Hon’ble Judges............

Read - BS

PMEAC member lambasts Centre, India Inc

........These reforms only have a symbolic value than real value. They did of course help in bringing in foreign institutional investors (FIIs) that stabilized the rupee and enabled to keep a check on inflation,” said M Govinda Rao, at a seminar on “Economic Reforms: Challenges and Opportunities for India Inc.” organized by the Bangalore Chamber of Industry & Commerce on Friday. Govinda Rao is also Director of the National Institute of Public Finance and Policy, New Delhi.........

Read - Deccan Herald