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.
Saturday, March 30, 2013
RBI chief Subbarao to attend IMF conference next month
Financial inclusion likely to be part of banking code: Chakrabarty
‘Use e-court fee instead of stamp papers’
The Madras High Court has suggested to the Registry and all civil courts and Motor Accident Claim Tribunals to follow e-court fee payment system instead of judicial stamp papers. Justice R Sudhakar gave the suggestion while passing orders on a civil suit from United India Insurance Company praying for permission to pay the court fee of `48 lakh in the form of RBI challan instead of filing a big bundle of judicial stamp papers..................
AIRREA stir put off
.........."The proposed strike was deferred after conciliation with the government", said Dilip Kumar Mukherjee, secretary general of the association. AIRRBEA had called a strike on March 30 in support of its six point charter of demands. These included implementation of pension scheme for the rural bank employees at par with their counterparts in nationalized banks, amalgamation of all RRBs in the country and formation of the National Rural Bank (NRB) etc........
Modern central banking
Monetary committee needs to be handled carefully
.............Since the MPC in itself is a good idea as it brings a greater number of experts on board, it is important to ensure the baby doesn’t get thrown out with the bathwater. Ways have to be found to ensure the selection process is more independent and transparent, perhaps the number of persons to be appointed solely by the government can be reduced—let’s not forget regulators like the Chief Election Commissioner who have fixed tenures have tended to do a decent job. The onus of making it work lies with the government.
Read - FE Editorial
My View on "FSLRC report: RBI's authority in question"
No point in doing an MRI of FSLRC report or the dissenting notes. Application of ‘collective wisdom’ is conspicuous by absence in the whole affair. Some vested interests are itching for a truncated central bank with diminished role with no say in the non-bank financial sector, the government securities market and the foreign exchange market. Logically implying that RBI would have no say in the management of the exchange rate and thereby in the forex reserves. Add to this the Commission’s view on government debt management. The Commission opts for a separate Debt Management Office (DMO), totally separated from the RBI, which is the dispensation North Block has been trying to push and RBI has been resisting for valid reasons for a long time now. Our finance ministry and FSLRC, ignore the evolution of the role of Reserve Bank of India and the care with which RBI has nurtured the financial sector concurrently successfully safeguarding GOI interests even in several areas which do not come under traditional central banking functions. When found necessary, at the appropriate time, new institutions were built by RBI in association with GOI to transfer responsibilities which either conflicted with its core functions or became unwieldy or unmanageably heavy. Time is not opportune for dismantling or truncating RBI which is doing creditably well as is being admitted in several international forums. Any regulatory changes should be to consolidate and restate the roles so far evolved and should not be a tool for Finance Ministry or any government department to usurp powers or responsibilities now with statutory regulators.
- M.G.Warrier
FSLRC members dissent about regulatory overreach and controls
| ............“The regulations governing capital controls on inward flows should be framed by the Government, in consultation with the RBI. The regulations governing capital controls on outward flows should be framed by the RBI, in consultation with the Government.”........... |
Read - Moneylife
Is a unified financial regulator a good idea? - YES
The Financial Sector Legislative Reforms Commission (FSLRC) is right in opting for a single or super regulator to replace those in equity, commodities, pensions and insurance sectors. The idea is to move from sectoral regulation to a broader framework of rules and principles...........
Is a unified financial regulator a good idea? - NO
.......Before we address the FSLRC’s suggestions for a regulatory model, it might be useful to ask if we would like to replicate the models followed in the West: the conglomerate financial institution, the “too-big, too correlated too interconnected to fail” enterprise that stymied both the UK and US regulators. If we decide to stay with diversified institutions, “with different ownership, incentives and objectives”, as Joseph Stiglitz put it in his recent lecture at the RBI, then, well-trained multiple regulators could be the best bet.
Debate over rate right
.....the Srikrishna committee has wormed in some insidious elements in its recommendation that should set alarm bells ringing. These elements raise questions about the independence of the RBI going forward, and whether or not monetary policy should be conducted at an arm’s length from the government of the day. Neither the federal open market committee of the Federal Reserve nor the monetary policy committee of the Bank of the England — the policy-framing bodies in the two countries — has a representative of the government sitting in on the deliberations........
The FSLRC Report is flawed in its approach
The best thing to do is to moth-ball it!
What is the prognosis for the report of a 10-member Commission, signed only by seven members, four of who append notes of dissent? Not very bright, perhaps! And when the Commission in question is also headed by retired Justice BN Srikrishna whose reports, he rued in an interview to The Economic Times, are either not acted upon (Mumbai riots) or are selectively acted upon (Sixth pay Commission), the future of the report must necessarily be a bit bleak...........
Read - ET
Sting’ in the air
The 2007-08 nightmare of the US financial system collapse and its universal effect on regulators and the central banks will not go away in a hurry, and the RBI is no exception. That the RBI has put in place a number of riders for permitting more private players in Indian banking is understandable. After all, allowing higher foreign stakes in aviation or retail is different from opening up insurance and banking.The RBI has been averse to private bank conglomerates, as it would need to arm itself with greater insight into their workings, which have spread unease across the globe.
R. Narayanan (HBL)
Government’s sins come back to haunt us!
......The RBI puts it well :’To minimize the possibility of external shocks further disrupting India’s growth sustainability over the next few years it is important to not only focus on financing of CAD but also on compressing CAD to lower more manageable levels..........
Read - ET
ICICI Bank shuts door on ex-employees
That’s when the human resource (HR) dropped the bomb. “There is a change in policy. We are not taking back former employees, at all.” The new policy at the largest private-sector lender in the country, with a muster roll of over 58,000 employees (as of March 2012), would apply across the group; so, the old boys could not even join a sister concern, according to officials. .........
Industrial, commercial hot spots top in credit cards sales: Survey
The usage of plastic money (credit cards, debit cards) is catching up in India as industrial hot-spots and tourism destinations report high rates of card usage, says a survey. According to a survey by Retail Management Solutions provider, Ginesys, besides tier I cities, the usage of plastic money is high in industrial hot-spots and tourism destinations...........
Following BRICS bank plan with interest: IMF
.......... “We welcome the announcement of the establishment of a BRICS development bank and stand ready to work closely with the new bank to end poverty and build shared prosperity throughout the developing world,”......
Coming soon: Pre-filled I-T return forms
In a bid to increase tax compliance, the income-tax department is considering providing pre-populated forms for filing returns. A good portion of information, such as data received from employers and third-party sources, may be pre-filled by the tax department in these forms — in line with the global practice...............
Banks can corrupt everything
.........Use “sundry” accounts of the bank, they suggested, to deposit all the illegal cash from where it is to be routed into investment. Either use accounts of other customers, for a fee, to transfer money abroad, or use some shell company and take away a chunk of foreign currency as expenses toward business-cum-leisure trips. They would pamper you, offering you ‘privilege banking’ or ‘priority banking’, pulling out all stops to make the deal happen.
Read - The Goan
A wake up call from Cyprus for “debt-ridden” states like Kerala - M G WARRIER
.......Sometime last year, the RBI Governor who visited Kochi, during his morning walk found daily wage workers from Andhra Pradesh on the street, who told him that they were paid about Rs600 per day and were able to save and send home ‘something’. These commendable achievements are shadowed by near anarchy on the labour front, which has affected industrial progress and political instability.........
Read - Moneylife
Gold Imports Send India's Current Account Deficit To A Record High
............The central bank didn't quantify the increase in gold imports but the government has for sometime blamed them for the rise in the nation's current account deficit................
When CAD is bad, govt should let the rupee drop to 60
....... “The worsening CAD is partly signalling that the rupee is overvalued. But the RBI and everyone else are missing that clue. That is because policymakers further open up the tap to attract more volatile, risk-driven foreign capital to finance a worsening CAD. Indian policymakers are making a simple mistake to think that as long as capital inflows finance a worsening CAD, the rupee is appropriately valued. This is incorrect. ...........
HSBC overhauls incentive structure for its sales staff
........."We now reward based on how many consultations they (staff) have with
the customers. Did your customer increase the value of assets with you?
These are the kind of things based on which we are incentivising."........
Soon, prisons in Maharashtra will have ATMs
The government has decided to install automated teller machines (ATMs) in prisons across the state. Nationalised banks will be awarded contracts for a limited period and provided adequate security by the ministry of home affairs........
Rare coins donated to RBI Museum
The Reserve Bank of India has released an information brochure showcasing a few of the 138 rare antique coins donated from the collection of late M. R. Jambunathan by his daughter Ms Indira Anantharam Iyer........
Fake rupee notes on the rise, in India and abroad
........Also, contrary to the general practice of suspecting Rs 500 notes, you should be wary of Rs 100 notes, the data show. These account for 56 per cent of the counterfeit bank notes detected in India. The Rs 500 denomination notes made up a third of counterfeits detected. Notes of Rs 1,000 denomination accounted for 5.2 per cent, but even fake notes of Rs 10, Rs 20 and Rs 50 denomination have been detected.
FM inaugurates 300 bank branches in UP
Finance Minister P Chidambaram today marked the inauguration of 300 bank branches in Uttar Pradesh, the largest number of bank branches launched in a single day in India. He compared the feat to a “triple century in a cricket match”. The branches, belonging to 30 banks, are spread over 75 districts, primarily in rural areas...............
Securing a loan is a right: Chidambaram
......With obvious reference to commercial banks, he said the attitude towards loans should be changed. “A farmer has a right to an agricultural loan,” he said, adding the youth had a right to loans to start their own enterprises. “If you are qualified and have the ability to repay, you have a right to get a loan,”..........
Committee on FDI, FII definition to meet on April 4
.......“The meeting of committee is scheduled for April 4. The committee will take about two-and-a half months to come out with the report,” a senior finance ministry official said. The DIPP Secretary, an RBI Deputy Governor and a SEBI whole-time member are the other members of the committee. Mr. Mayaram had earlier said that there is a lot of confusion in mind of foreign investors because of distinction between FDI and FII..........
IRDA introduces credit rating norm for selecting foreign reinsurers
......The reinsurance programmes would commence from the beginning of every financial year. The details would have to be submitted to the regulator at least 45 days in advance. One of the objectives of reinsurance programme, according to the regulator, is to maximise retention (the portion of risk which an insurer assumes for its own account)......
Vegetable vendors shy away from Monday 'haat' at Unit-IV
..........With Postal Colony, RBI Colony, AG Colony, Shastri Nagar and Madhu Sudan Nagar near the market, at least 2,500 customers visit the 'haat' daily. But the number of customers is at least five times on Mondays, when 700-800 additional vegetable vendors and farmers from outside join regular retailers and vendors.............
Financial Inclusion of Muslims: Major Roadblocks
.........Indian Muslims (with 13.47% share in national population) just share have just 0.78% and 2.2% share in employment with RBI and SCBs..........
........Section 17 (1) authorizes RBI to accept deposits without interest; and section 45 allows RBI to appoint any bank as its agent to execute the work. Section 6 (1) (b) allows SCBs to work as an agent; section 6 (1) (m) allows banks to acquire and undertake the whole or any part of the business of any person or company, when such business is of a nature enumerated or described in this sub- section; and section 6 (1) (o) carries the provision to include new sort of business for banking companies. Section 19 of BR Act 1949 allows SCBs to open subsidiaries for specific business activities. So RBI on behalf of Government of India and the public can appoint any SCB as its agent to execute Participatory Banking......
Friday, March 29, 2013
Love the bank, hate the banker - Raghuram Rajan
.......Consider, for example, the debate about bank regulation. Bankers are widely reviled today. But banking is also mystifying. So any critic who has the intellectual heft to clear away the smokescreen that bankers have laid around their business, and can portray bankers as both incompetent and malevolent, finds a ready audience. The critic’s message—that banks need to be cut down to size—resonates widely. Bankers can, of course, ignore their critics and the public, and use their money to lobby in the right quarters to maintain their privileges. But, every once in a while, a banker, tired of being portrayed as a rogue, lashes out. He (it is usually a man) warns the public that even the most moderate regulations placed on banks will bring about the end of civilization as we know it. And so the shrillness continues, with the public no wiser for it........
Policy has to focus on domestic drivers for growth: Subir Gokarn
..............Gold is an important issue and the Reserve Bank came out a few months ago with a set of recommendations relating to development of financial products that can substitute for gold. On one hand these are things like inflation index bonds but there are also other gold specific products, what I would like to call dematerialise gold products or Demat gold products, which give you the investment attributes of gold, but without the need to physically possess it. That is the set of alternatives where the physical import of gold may be reduced even though people want to invest in it..............
Srikrishna emasculates RBI, shifts power to finmi
..............The RBI remains the regulator for the banking sector. But look closer, and the central bank’s centrality in financial regulation is gone: it will run monetary policy, regulate the banking sector and enforce consumer protection. Nothing more. What has gone out of its jurisdiction are the following...........
FSLRC report: RBI's authority in question
.........The dissenting notes have come from KJ Udeshi, former Deputy Governor, RBI, PJ Nayak, country head of Morgan Stanley (but formerly chairman and managing director of UTI Bank and joint secretary in the capital markets division of the finance ministry), YH Malegam, currently in the Board of Directors of RBI and JR Verma, the academic from IIM Ahmedabad..............
Panel for more government say on monetary policy
........Raghuram Rajan, the finance ministry's chief economic advisor, who many expect to replace Subbarrao when his term ends in September, told Reuters last week he favoured clipping the power vested in the post of governor and supported a committee approach. When it comes to making policy decisions, Subbarao in practice does take the views of staff and an advisory committee on board. But he often goes against the panel's advice, minutes of central bank meetings have shown. Under the draft bill, which would replace 15 different financial sector laws, the seven member monetary policy committee would be headed by the governor and include two members appointed by the government in consultation with the bank along with three outright government appointees............
Keeping NBFCs under RBI purview makes no sense: FSLRC chief
....That is another argument that doesn't make sense to me. NBFCs that take deposits have been recommended to be placed under the purview of the RBI with the mandate of acquiring a banking licence. But there are NBFCs that are doing business without taking deposits from the public. Now why did they come into existence at all?............
RBI freedom under threat
......The role of the RBI Governor will be severely circumscribed with the report suggesting that an executive monetary policy committee (MPC) will be formed to vote on policy decisions — borrowing an idea from the US Federal Reserve and the Bank of England. “The MPC would meet regularly, and vote on the exercise of these powers, based on forecasts about the economy and the extent to which the objectives are likely to be met,” the report said. RBI Governor Duvvuri Subbarao appears to have had some inkling of the momentous change that had been suggested........
Will govt get a greater say in fixing monetary policy?
In an interview to Bloomberg TV a few days after he announced the new Union budget, finance minister P. Chidambaram said in response to a question about interest rate policy: “I think the RBI should take comfort from what we have announced as the fiscal consolidation path and I am sure the monetary policy advisory committee will advise the governor appropriately.” It was odd that the finance minister had signalled to the monetary policy advisory committee rather than governor D. Subbarao directly, especially since the latter has often taken decisions contrary to what the committee had advised him..........
Consumer interests at centre of new financial sector omnibus law
...........The Code has drawn up a single judicial tribunal for the sector called Financial Sector Appellate Tribunal, a Resolution Corporation to wind up companies that get into distress, the Financial Redressal Agency, Public Debt Management Agency and the modified Financial Stability and Development Council.
Read - IE
Turn LIC, RBI into regular cos, says Srikrishna panel
A high-powered expert panel set up by the government to suggest a recast of the financial sector laws has recommended a level-playing field for financial firms by doing away with specific laws for public sector entities such as Life Insurance Corporation and State Bank of India. The justice B N Srikrishna headed Financial Sector Legislative Reforms Commission (FSLRC) has mooted incorporation of such entities like others in the sector under the Companies Act to ensure ownership-neutrality in regulation and supervision...........
Bank Alone Not a Safe Deposit for Women
After
lauding P Chidambaram’s move to set up a state-run women’s bank, there
is a growing concern in Congress that this may not be enough to fulfill the party’s promise to empower rural women with better access to credit.
Senior Congress leaders and sections of the government, feel that a
specialised financial institution similar to Nabard or Sidbi would be
more effective in meeting the party’s objective. In a letter to
Chidambaram, Rural Development Minister Jairam Ramesh has suggested an
alternative strategy and proposed setting up a “specialised
developmental financial institution” on the lines of Sidbi through an
act of Parliament............
Read - ET
Read - ET
Banking on the fair sex
GUWAHATI: Chidambaram may have hit upon the idea now, but Lakhimi Baruah of Jorhat has been running a profitable all-women bank for the past 14 years. When finance minister P Chidambaram announced an all-women public sector bank in his Budget speech, Lakhimi Baruah was thrilled. The 64-year-old, who lives in Jorhat in Assam, has been providing banking services for women, by women since 1998. "You don't know how happy I am that the finance minister proposed this. It will empower women financially," she says..............
Money chain case: woman held
........ The firm was running its business in violation of the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act 1978 and also Section 45 (s) of the Reserve Bank of India Act. Though the company had promised to purchase land in the name of its clients, none of the depositors had been given documents of such purchases..............
Bank of Maharashtra convenes 118th SLBC Meeting
 |
| (L-R) are : Shri. Madhukar Choudhari, Commissioner, Cooperation, GoM, Shri. M. V. Ashok Chief General Manager, NABARD, Smt. Phulan Kumar, Regional Director, Nagpur, RBI, Shri. J. B. Bhoria, Regional Director, Maharashtra & Goa, RBI, Shri. Narendra Singh C & MD, Bank of Maharashtra & Chairman, SLBC – Maharashtra, Shri Munaf Hakim, Chairman, Maharashtra State Minorities Commission, Shri C. VR. Rajendran, Executive Director, Bank of Maharashtra, Shri Shravan Hardikar, CEO, Maharashtra State Livelihood Mission and Shri A. A. Magdum, General Manager, Priority & Convener, SLBC, Maharashtra |
Come April, you can use RuPay even online
......These online-enabled cards may turn attractive for mainstream banks, unlike ATM-only and debit ones, which are targeted more towards co-operative and regional rural banks, and rural and semi-urban bank branches, respectively, because of less internet-savvy clientele there. “Mainstream banks will not issue RuPay cards to their customers till the e-commerce option is enabled. From April, they will start issuing,” said A P Hota, managing director and CEO, NPCI. To begin with, two banks will issue new RuPay cards from the second half of April, and others are likely to follow suit, Hota added. ........
RBI puts off Basel norms for forex derivatives to January 2014
MUMBAI: The Reserve Bank today postponed the implementation of Basel-III regulations for currency derivatives segment to next January pending resolution of norms regarding trade settlement, even as it said the new capital adequacy requirements will kick in from April 1..............
RBI notifies new rates for small saving schemes
The Reserve Bank of India (RBI) today notified 0.1 per cent reduction each in the interest rates on Public Provident Fund (PPF) and Senior Citizen Savings Scheme (SCSS) to be effective from fiscal beginning April 1, 2013...............
Chidambaram to inaugurate 300 new bank branches
......."At the meeting with RBI Governor D Subbarao on Jan 15, state chief minister Akhilesh Yadav requested him to open 3000 more bank branches keeping in mind the population of the state. Now RBI and state government has fixed the time table to open these branches by March 31, 2014", ..........
ACP envisages Rs. 3391.25 crore under priority sector
The Annual Credit Plan for Thanjavur district for the year 2013-14 envisages a total plan outlay of Rs. 3391.25 crore under the priority sector, which is an increase of Rs. 798.91 crore (31 per cent) over the last year's plan, said K.Baskaran, Collector, here on Wednesday.............
Rupee Bank to auction four properties to raise Rs 14 crore
PUNE: The administrative board of the city-based Rupee Cooperative Bank Ltd has decided to auction four properties together valued at Rs 14 crore to improve the bank's recovery, said Sanjaykumar Bhosale, one of the administrators of the bank, told reporters on Thursday..........
The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad now to be under RBI Directions till October 02, 2013
The Reserve Bank of India has extended the period of directions imposed on the The Bhuj Mercantile Co-operative Bank Ltd., Ahmedabad for further six months. The Bank with thus continue to be under directions from April 02, 2013 to October 02, 2013. The modified directive has been displayed on the bank premises for interested members of public to peruse.........
Read......
Read......
SBI wages rate war, undercuts competition
.A senior SBI executive, who is responsible for the “rate war” and does not want to be named, says there is no war and his bank can lend at a rate which is cheaper than many others for the simple reason that it has a lower base rate than others. SBI’s base rate is 9.7%, the same as that of HDFC Bank Ltd. India’s largest private sector lender ICICI Bank Ltd’s base rate is 9.75%, but most other banks have pegged their base at 10% or even higher. For instance, the base rate of both Punjab National Bank and Bank of Baroda is 10.25%.....
Thursday, March 28, 2013
RBI eases KYC norms for Self Help Group
.........“KYC verification of all the members of SHG need not be done while opening the savings bank account of the SHG and KYC (Know Your Customer) verification of all the office bearers would suffice,”............
Dr. Sandip - H(isto)R(y) persona lays down office today............
 |
| An institution within institution, Dr. Sandip Ghose, CGM-I-C, HRMD lays down office today. RBI PS Fraternity & VITALINFO wish him a very happy n healthy Re-Tyred life ........... |
Reputational risk is the bank’s responsibility
.........It is not as though the Reserve Bank of India (RBI) has not undertaken corrective measures in the past. Other than issuing direct guidelines for combating money laundering and potential for terrorism financing, RBI has issued loan recovery, credit card and fair practices codes from time to time. Blaming the regulator for lax supervision is escapism. We do not aspire to be a nanny state. RBI, warts and all, is already an admirably stringent regulator. There is a limit to how much can be achieved by policing. For example, it is not possible for RBI or the department of financial services to oversee the safety of women in bank workplaces. However, it is critical enough to expose banks to enormous reputational risk..........
Sting-less operation
After a recent meeting between bankers and the Reserve Bank of India on risk-based supervision, reporters were keen to know whether the cobrapost sting, in which officials in some banks were caught on camera offering to launder clients' black money, figured in the discussion, especially given the topic on hand. One chairman and managing director of a public sector bank quipped, "No wild animals were discussed, including cobra."
Banks and Liquidity Management - Dr.T.V.Gopalakrishnan
.............The mismatch in ALM is bank's own making and despite this RBI has come to their rescue in several ways which include cut in CRR and interest rate. Banks' approach to business has undergone a sea change and their dependence on borrowed funds rather than deposits can be identified as the major cause for their liquidity problems..............
BURA NA MANO HOLI HAI
Dear friends,
Pension updation
is the subject which seems to be haunting the retired RBItes the most.
Whenever retired employees, may they be in group or pair meet, the
conversation invariably turns to the subject. With every passing day,
desperation seems to have crept in the minds. Judges may come and judges
may go, the case will still stand at the same stage. By the time the
decision comes, if it comes, many of us will have retired from the life.
I have a suggestion. You should leave instruction to utter the words 'pension updation case has been won' if the crow does not pick the
riceball (pind) at the time of shraddha, to your relatives and I am sure
the crow will fly away with the entire stock.
BURA NA MANO HOLI HAI.......
- Sharad Fadnavis, Ex-RBItes, Nagpur
Why should we unnecessarily burden the close relative with one more mantra that the 'Pension updation case has been won'? Now itself we can alienate our mind from pension updation and make up our mind that we will reach salvation notwithstanding the positive/negative result of the case. Anyhow good imagination! Our children who will be in a hurry to leave the country, may not even notice whether the crow has taken the pind. Why bother about that ?
- Vathsala Jayarman, Ex-RBItes, Chennai
Why should we unnecessarily burden the close relative with one more mantra that the 'Pension updation case has been won'? Now itself we can alienate our mind from pension updation and make up our mind that we will reach salvation notwithstanding the positive/negative result of the case. Anyhow good imagination! Our children who will be in a hurry to leave the country, may not even notice whether the crow has taken the pind. Why bother about that ?
- Vathsala Jayarman, Ex-RBItes, Chennai
Ex-appreciable VITALINFO.............
VITALINFO helps to keep us abreast with the developments in the shortest possible time and the service rendered by you in this regard is most appreciable. But many a time response is limited to a mere "thanks". It not intentional. In the midst of daily routines many a time there is not enough time to react in a fitting manner. Please bear with us. We are always grateful.
Thanks and regards,
C S R Nair, Ex-RBIte (via e-mail)
Finance companies violating RBI, Sebi norms
GUMLA: The financial establishments here, which were sealed on Monday, were violating directives of the Reserve Bank of India and the Securities and Exchange Board of India (Sebi).............
KMSS for shutdown of all NBFCs
The Reserve Bank of India (RBI) is at present working on a plan to train the state police personnel to tackle the rising fake financial companies
............."There are hundreds of such NBFCs operating in the state. Many companies have already cheated investors of crores of rupees, shut down their operations and escaped from here. However, apart from arresting some of the officials, police have done nothing. We want the state government to take stern action to reimburse those who have lost their assets," ........
Govt bank staff await entry of new private players
Manoj has been watching the business papers closely ever since the Reserve Bank of India announced giving out licences for new banks. A junior officer with State Bank of India, he sees the entry of new entities into banking will not only energise the sector but also get him a lucrative job. And, he is not alone. Many among the over seven lakh public sector bank employees are hoping to switch to new private banks..............
Banks make progress, but more challenges lie ahead
.....The villages in India are witnessing a flurry of activity, thanks to the financial inclusion initiatives of banks. Most of the banks are now busy appointing business correspondents (BC) or opening up ultra small branches in villages under the financial inclusion plan. As the new financial year, 2013-14, is round the corner, the focus on is meeting targets........
FDI funds may be routed via independent accounts with banks to protect investors
..........The Reserve Bank of India is considering making it mandatory for foreigners to route foreign direct investment (FDI) into India through independent accounts with banks to ensure funds are not misused by company issuing shares. The move comes after the central bank detected that some companies were
using the flexibility in the rules to retain the funds remitted by the
foreign investor for as long as three months and return that later
without issuing any equity...........
Decking up small savings
.....Small savings schemes have witnessed net withdrawals over the last two years, mainly because the returns offered were much lower than those on bank deposits and other investment avenues. The situation, however, is now set to reverse. With the RBI cutting its policy rates by 75 basis points in the last one year, banks have revised their term deposit rates by a similar degree. What is more, further deposit rate cuts of 50 basis points too appear likely over the next one year, with the pressure on banks to reduce lending rates. .....
'BRICS bank could become future World Bank'
The BRICS bank, the setting up of which was approved by the group's leaders today, could become a World Bank in future due to the increasing influence of emerging countries, chairman of Goldman Sachs Asset Management said today..............
World Bank ready to work closely with BRICS bank
............"We welcome the announcement of the establishment of a BRICS development bank and stand ready to work closely with the new bank to end poverty and build shared prosperity throughout the developing world," ..............
Banks stare at MTM losses as bond yields surge
Banks are staring at huge mark-to-market (MTM) losses on their government bond portfolio in the fourth quarter, as yields on most liquid papers have moved up following the Reserve bank of India’s (RBI’s) hawkish tone in the mid-quarter review of its monetary policy.......
With fiscal-end nigh, banks gasp for cash
..........“In view of the anticipated large volume of banking transactions during the annual closing of account for financial year 2012-13, the RBI, in order to facilitate smooth and non-disruptive conduct of banking operations, has decided to conduct additional liquidity operations,..........
Can banks hound friends of defaulters for loan repayment?
.........Co-incidentally on the same day I saw a newspaper headline that said that India’s largest bank was all set to publish photographs of defaulters in newspapers and their own branches. This was an attempt to name and shame the “willful” defaulters into paying their over dues. In my opinion publishing of defaulters photo in newspapers is against the BCSBI code which requires that the bank respect the privacy of the borrower. This co-incidental overlapping of two separate incidents regarding collection practices by banks set me thinking............
Checklist before going electronic
Indian policymakers are keen to push bank depositors to write fewer cheques and make more transactions through the electronic route. The key benefit of e-payment is that transfer of funds is almost instantaneous. While the campaign is yet to kick off, we think that you should be aware of all the nuances of making e-payments before taking the plunge.........
Be careful with fancy credit cards
Planning to get a new credit card? Well, if you thought you just had a silver, gold or platinum card to consider, think again. The array of the credit card types available is quite bewildering. Besides these basic cards, there are a number of specialised ones which appear to offer more value or seem more attractive.........
Karur Vysya Bank will have new operation model
......“While innovation and technology adoption have helped capture the market initially, continuous improvement in branch operation model would help improve the in-branch experience,” .......
FirstRand Bank eyes break-even by '14-end
.....“We are hopeful that our commercial (corporate) banking arm will break even by the end of the next fiscal. The balance sheet of our India franchise stood at $200 million as of 2012, with an asset base of $52 million,” .........
Wednesday, March 27, 2013
Pangs of Separation: Debt Mgmt & Monetary Policy
Well over 15 years ago, a working group of the Reserve Bank of India first suggested the separation of its debt management and monetary policy functions of the central bank. In keeping with global practices of the time, the group made out a case
for separating the role of a bank in managing borrowings for the
central and state governments, leaving the RBI to focus mainly on setting interest rates and price stability. Although the government first announced its intention to form a new
debt management office in 2007, there has been little progress. The move
came appropriately at a time when the process of fiscal consolidation
was well underway.............
My View on "Leveraging the debt office"
- M.G.Warrier (Business Standard)
Reserve Bank of India : RBI holds Annual Statistics Conference 2013
The Annual Statistics Conference 2013 of the Reserve Bank of India (RBI) was organised by the Department of Statistics and Information Management during March 22-23, 2013 in Mumbai. The conference provided a platform to the statisticians of the Reserve Bank to present their research before external experts and receive their feedback in order to make the analysis more meaningful for policy and research. Dr. Urjit R. Patel, Deputy Governor inaugurated the conference. Shri Deepak Mohanty, Executive Director; heads of select central office departments of the Reserve Bank; renowned statisticians and economists from the academia; and the statisticians of the Reserve Bank participated in the conference..........
A Banking Revolution
.......Due
to significant country specific differences in banking regulations,
income distribution, customer needs and mobile usage, this revolution is
going to be complex as multiple players jostle for position… More
importantly, banks will be myopic if they view mobile as just another
channel for doing business.............
Read - ET
Co-op sector would sink if mining halt continues: Parrikar
....The chief minister said he would meet RBI Governor, who is currently out of the country. "Something has to be done about these loans. I will meet RBI Governor seeking his intervention," he said. ......
Subscribe to:
Posts (Atom)