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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.
Thursday, November 29, 2012
Smile index
J&K Bank elaborates various schemes to customers
.....During the discussions various aspects regarding the safeguards to be ensured by the customers and the need for awareness to ensure safety of their funds were also discussed. The officials also clarified several issues relating to bank and banking services raised by the answer session. The meeting was presided over by M Rajeshwar Rao, CGM and Banking Ombudsman, New Delhi and was attended by K.K Saraf, Regional Director, RBI, Jammu, D.G Kale, General Manager, Customer Service Department, RBI......
Is gold import stressing Indian economy?
India’s numero uno ‘golden achievement’ is not making the government proud these days. In fact, the Indian government is not happy as the finance ministry and the Reserve Bank of India (RBI) say gold is putting extreme grave pressure on the country’s economy! Can high gold imports and consumption create economic stress on a developing country like India?.........
RBI issues draft norms on fixed rate loan products
The Reserve Bank of India (RBI) has brought the issue of long-term fixed rate loan products, including home loan, on the discussion table. On 9 November, RBI published on its website the draft report of a committee headed by K.K. Vohra, Chief General Manager, Internal Debt Management Department, RBI, assessing the feasibility of introducing long-term fixed interest rate loan products. The Vohra committee was set up after it was pointed out in the April 2012 monetary policy that while interest rates on deposits are predominantly fixed, most of the retail loan products, especially home loans, are sanctioned on floating rate, which exposes borrowers to interest rate risk..........
Allow MFIs to become business correspondents: MFIN
.....MFIN demand for allowing NBFC-MFIs to become business correspondents comes close on the heels of the Finance Minister P. Chidambaram’s remarks that financial inclusion architecture is incomplete without microfinance........
FM P Chidambaram asks banks to initiate penal action against wilful defaulters
NEW DELHI: Worried over rising bad loans, the government has asked state-owned banks to crack the whip on willful defaulters and initiate penal proceedings against them............
Farce of PSBs competing with one another
Finance Minister P. Chidambaram is right when he says Indian banks should not fight shy of consolidation because we need global-sized banks to take on the might of foreign competition, both in our home turf as well as abroad. And this is not the first time he has made this suggestion. But one wonders why he has not impressed upon his own Government to kick-start the process of consolidation by starting off with public sector banks (PSB). What is the big difference, after all, between Punjab National Bank, for example, and Canara Bank, given that both are substantially owned by the Central Government?.......
Bank mergers
Regarding the editorial “Banking muscle”(Business Line, November 28), while it is desirable to have banks of international stature, in a growing economy such as India’s, the need is to have more banks/branches, especially in the rural areas, and to improve efficiency of service. The expansion of banking networks, banking products, is required. Expanding the existing banks through acquisition of smaller ones may have the adverse effect of fall in efficiency, and thereby, profitability.
T.R.Anandan, Coimbatore (HBL)
Now FM Is Bent Upon To Destroy Indian Banking Sector - Regulators Are Our Only Hope
With the grace of God, India has always seen some wonderful people (of course only a small percentage), who are honest and dedicated, and do not bend even under pressures. In recent times we have seen people like RBI Governor, CAG Chief, SEBI chief etc. who have resisted the government attempts to dilute our strong fundamentals
....It is not that I am against issuing of new bank licences to corporate, but I am worried about the hurry shown by FM to hasten the process without putting in place the guidelines and nudging RBI for starting the process of issuing new bank licences to corporate. Raja too issued spectrum in great hurry. The question arises why FM is in such a great hurry? Is he afraid that his government may not last for long and then he will not be able to oblige corporate close to Congress? Can this great hurry lead to some other scam. Government has already lost all credibility. RBI Governor has clearly said that they are considering the same on merits and will initiate steps as soon as amendments are put on record. Now let us suppose RBI clears these and later on this Government falls, then who will take responsibility for such action by RBI......
FM: Integrate microfinance firms with financial system
.............“We are hopeful that the Bill will be cleared by the Standing Committee, then brought to Parliament for passage. Once the Bill is passed, I hope that it will provide an adequate legislative framework for the entire gamut of micro-finance services,” .......
Read - IE
Read - IE
Buying a home to get cheaper as RBI says no to restructuring of real estate loans
....Builders will get the benefit of paying the same loan over a longer period without feeling the pinch to repay, RBI Deputy Governor KC Chakrabarty is supposed to have told bankers in a recent meeting, said the two bankers who did not want to be identified. Banks will be at ease once the loan is prevented from becoming a sub-standard asset, Chakrabarty said........
Banks can perform only if economy improves: PNB's Kamath
........But the finance minister clarified the government did not have a roadmap for consolidation and added that the process had to be driven by the management-boards of banks. So, consolidation is not on the top of my mind as of today. Though I cannot comment on this as the chairman of the Indian Banks' Association (IBA), but as chairman of PNB, it not a priority. But if there is an enabling environment and availability of opportunity, I will not hesitate to encash that opportunity.........
Don’t use LIC to prop up divestment
If the Reserve Bank of India (RBI) is the lender of last resort for the Indian Government, the Life Insurance Corporation of India (LIC) — with some prodding from the Government that owns it — seems to be imposing the title ‘saviour of last resort’ on itself. ..........
Micro-finance is in danger zone: Jairam Ramesh
Micro-finance is in a "danger zone" and to think that poverty alleviation in India is possible through this "discredited model" is "crap", Rural Development Minister Jairam Ramesh said today. "Nothing can stop an idea whose time has gone. And micro-finance is in a danger zone. It is a discredited model. It has raised more questions that it has answered," the Minister said in his valedictory address at the Micro finance summit here.....
Indian corporate bond market still remains a mirage
........Many in the government and elsewhere have often stressed on the need for developing the Indian corporate bond market to fund infrastructure projects given that banks which have funds of short- to medium-term maturities run the risk of a mismatch by financing long-term bonds. But the central bank had in the past not quite shared this view. Former Governor Y.V.Reddy has said that nowhere in the world are infrastructure projects financed by the public bond market except perhaps in the deepest bond market in the world - the US. It may not be easy for the government to nudge the regulators in that direction considering the local version of a fiscal cliff. And, as a long-term observer of the Indian securities market put it, it is also a matter of perspective. The RBI reckons that it has done quite a bit on reforming and deepening the government securities market. But the fact remains that.........
SBI to open 24-hr locker-cum-gold loans branch in Vizag
VISAKHAPATNAM, NOV 28:
State Bank of India (SBI) is opening a dedicated ‘Locker Shoppe-cum-Gold Loans’ branch in Visakhapatnam having round-the-clock operations, a top officer said today. “The proposed branch would remain open for 24 hours for locker operations and gold loans which would be sanctioned up to 8 pm everyday,” said SBI General Manager (Andhra Circle) Gopal Krishan Kansal on the sidelines of a function.......
Bank staff and CVC
“Take public sector bank staff out of CVC purview” (Business Line, November 26) is a relevant suggestion. While the CVC machinery at the Central level and at individual bank levels is doing a wonderful job in vigilance-related tasks, yet an atmosphere has been created where the general mass of bankers feel demotivated and, in fact, scared to take even genuine banking business and credit-related decisions. The Government must revisit the rules that force bankers to file FIRs against borrowers for their credit defaults. Frauds have to be prevented, fraudsters have to be penalised but innocent bankers and right decision makers need to be protected at all costs. The wearer alone knows where the shoe pinches.
I.K. Kilam (HBL)
University in Chandigarh at work on software for banks
Chandigarh based Punjab Engineering College (PEC) University of Technology is developing a software to ensure security of information that banks use, under guidelines issued by the Reserve Bank of India (RBI). The project is being funded by IT major IBM India, and the PEC University is working on the technology development for the project.......
Karnataka Bank implements revised RBI norms on KCC
MANGALORE: Karnataka Bank Ltd. has introduced the revised guidelines of Reserve Bank of India on Kisan Credit Card (KCC) scheme. This will help large section of farmers across India. As per the scheme which is effective from November 15, farmers can avail working capital loan in the form of overdraft for raising various crops and maintaining their farm equipments and also term loan for meeting their investment credit requirements.........
Read - TOI
Read - TOI
Fraudsters turn cloning HDFC credit cards into a business
......"Domestic cards were cloned by Kamal and international cards by Devender Chauhan of Agra with the help of a professional hacker. The data of genuine customers was stolen through the skimmer (an instrument used to copy the data of a card) and then copied on a plain card having magnetic strip," ........
Banks wary of lending to MFIs, says Nabard study
Commercial banks are losing their confidence in lending to microfinance institutions (MFIs), according to a National Bank for Agriculture and Rural Development study. This is evident from the fact that fresh lending to MFIs by banks during 2011-12 declined by 38 per cent to Rs 5,205 crore against Rs 8,449 crore last year..........
Making ATMs run like a well-oiled machine
How would an operator in Chennai monitor whether the light in an automated teller machine (ATM) in Jammu has been switched on/off or whether the air-conditioner inside an ATM in Sikkim is working? There is help for such problems in the form of machine-to-machine (M2M) technology, which has been developed by a Chennai-based company. The ATMs will be connected through the Internet and will communicate with each other, transmitting vital data to a central location........
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