..........While work in the Reserve Bank of India (RBI), in the latter part of the 1980s, by A. Seshan, C. Rangarajan and N. D. Jadhav highlighted the possibility of explosion of internal public debt, no specific scheme on debt repayment was worked out. The RBI attempted some tentative work in the late 1980s to evolve a scheme for debt repayment, but it could not find a satisfactory resolution. Work in the RBI continued in the first half of the 1990s and in 1996 the RBI came up with a comprehensive scheme of a Consolidated Sinking Fund (CSF) which would, over time, become self-sustaining...............
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, May 31, 2013
India’s Human Cash Machines
.........At a conference Tuesday of 90 banking correspondents and banks, organized by the Reserve Bank of India in Pune, correspondents said that they hadn’t been trained to use the hand-held devices or how to sell banking products. But the most frequent complaint among them was a delay in salary payments. The meeting was an attempt to understand what’s happening at the grassroots level and improve the banking correspondent system, Reserve Bank of India Governor Duvvuri Subbarao, said................
Mann Deshi Bank opens first branch in Pune
After the grand success of chamber of commerce, bank and business school for rural women entrepreneurs Mann Deshi Bank has now started its operations in urban areas by opening first branch Pune. The branch will help Mann Deshi to scale and expand its operations. This will be the bank's seventh branch with other six branches in remote areas of Maharashtra like Mhaswad, Dahiwadi, Waduj, Godavale, Lonand and Satara. Most importantly, Mann Deshi have started operations where other banks were already present but had refused to accommodate lower income group individuals as their customers..........
Reserve Bank Staff Quarters School has achieved 100% result in the CBSE 10 std Examination
Info courtesy - Shri S.Venugopalan (EXRBITES Group), Chennai (Ph: +91 44 42151321)
Manmohan Singh: A legacy of records
......Then prime minister P.V. Narasimha Rao, who already had a blueprint for reforms (inherited from the outgoing regime led by Chandra Shekhar), first turned to I.G. Patel, who declined the job on account of failing health. Patel recommended Singh. The rest is history. The dramatic turnaround of the economy, together with Singh’s understated demeanour, made him the darling of the middle class and the Congress party............
UFBU MISERABLY FAILS IN THE FIRST ROUND ITSELF
......Vide Circular No 7 dated 22/04/2013, UFBU informed the cadre that a meeting with IBA has taken place wherein IBA informed that the total establishment expenditure / wage bill of the public sector banks as on 31/03/2012 is Rs 56,292 crores which will be the basis of negotiations. Thus, assuming that UFBU is able to extract 20% wage hike, the total benefit to workmen and officers will be Rs 11258 crores or about Rs 1,000 crores per month. Considering that the rate of interest on FDs for staff is around 9%, the bankers are losing Rs 90 crores per month in the shape of interest alone.............
Read........
My View on 'Total overhaul of existing financial system needed'
There could hardly be any dispute over Justice Srikrishna’s view expressed as under:
“Therefore, you need something that is drastic, something that is total overhaul of the existing financial system," But, FSLRC missed the opportunity to do this. Going round and round the idea of destabilizing the central bank (RBI) which is the only institution functioning satisfactorily and cutting and pasting recent innovations elsewhere brought about in different contexts and refusing to do the strenuous task of looking at India-specific issues and country-specific solutions for them, the Commission ended up where it started the work !
- M.G.Warrier
RBI asks banks to expand internet, mobile banking reach
........."We are going through an era of technological revolution," said RBI Deputy Governor H R Khan at a workshop on e-Banking organised by Bank of India here on Thursday. "And mobile and internet penetration is on the rise in the country. Therefore, banks need to formulate strategies to popularize mobile and internet based banking services." Khan asked banks to also focus on elderly and pensioners besides urban clientele...............
'RBI for more White Label ATMs in state'
.........The move is aimed at encouraging personal banking among people, according to RBI's Deputy Governor H R Khan, who was in the city to address the awareness programme on electronic banking, called e-Baat, organized by Bank of India (BOI). Khan said the RBI's aim is to give to the people the privilege of "anytime, anywhere banking" but the only requirement is that one should have a mobile phone. This facility, according to Khan, will make banking a queue-less procedure.............
Bank Customers can ask for CCTV Recording of ATM Transactions in India
..........."At present, there is no provision for the complainant to request for the CCTV / Camera Images in the Complaint Form for ATM disputed transactions. In this regard, the Member Banks are advised to make a provision in the "Customer Complaint Form" for the complainant to raise a request for the CCTV/Camera Images if the customer so desires at the time of submitting the Complaint Form to the Issuing Bank".........
Acquiring Banks to Provide Details of Three Transactions before and after Failed ATM Transaction
.....The circular states that as per the requirement of Customer Service Department of Reserve Bank of India, some changes are necessitated in the Representment related process. At the time of Representment (time of responding to the complaint), the Acquiring Bank must provide three transactions before and three transactions after the Disputed Transaction in the EJ / JP Logs......
RBI to focus on containing inflation, CAD: Subbarao
......"Growth is significantly moderated, inflation is somewhat off its peak but there are several upside risk factors, the balance of payments is under stress and investments have to pick up," ...........
Some truth in Cobrapost expose, will take action: D Subbarao, RBI
......."We have done study of those banks, investigated them ... We have done a larger study of those banks and we have issued notices to the bank managements and shall take appropriate actions,"...............
Banks opened accounts for different customers with same PAN: RBI report
....The study has also revealed a nexus between co-operative banks and commercial banks. Central Bank, for instance, opened 200 accounts of the Sahara Credit Cooperative Society in different branches and on many occasions, high-value deposits were made into these accounts. The RBI has also found that a few banks gave employees incentives to encourage the sale of third party products like insurance and mutual funds, sale of gold coins with the incentives taking the form of foreign training or white goods...........
Subbarao's grim prognosis sends rupee tumbling to 10-month low
...........The Governor said, "Growth is significantly moderated, inflation is somewhat off its peak but there are several upside risk factors, the balance of payments is under stress and investments have to pick up." The comments sent the rupee tumbling by 21 paise to end at new 10-month low of 56.38 against the dollar. Coming just a day before the government releases the data for the fourth quarter GDP for 2012-13 it was an affirmation that the numbers would be dismal...............
We can’t take soft prices for granted, says Subbarao
............Reserve Bank of India Governor D. Subbarao, on Thursday, warned of upside risks to inflation and expressed worry over the high current account deficit, denting hopes for rate cuts and sending bond yields to a two-week high and the rupee to a ten-month low.........
When the RBI chief got 'pink slips'
The last thing RBI Governor Duvvuri Subbarao, who came to deliver a lecture on "India's Macroeconomic Challenges — RBI perspective" in Ahmedabad, expected was some 50 pink slips in a matter of 10 minutes after his talk at the Ahmedabad Management Association (AMA) building. But the pink slips were in fact questions posed by the audience after his speech on Thursday. The significance of the pink slip remark came to a pass as the RBI chief started by recalling that within days of his appointment to the RBI top post in August 2008, a series of economic downturns took place, starting with the collapse of Lehmann Brothers in USA in September that year signalling the start of the global recession. Even as the motley audience consisting of bankers, businessmen and students tittered at this piece of information, he added that no sooner had the economic situation in India bounced back, he was again reinstated in the Governor's post for two more years in August 2011 after which the country is now battling another economic crisis. As the room drowned in raucous laughter to this pronouncement, D Subbarao delivered the final punch as he said, "Now I don't have to tell you when the economic situation here is going to improve, as you can already guess!"
India can still grow at 7-8% or even more: Subbarao
......Enumerating the challenges faced by the Indian economy, Reserve Bank of India (RBI) governor Duvvuri Subbarao today said the ‘India Growth Story’ was still intact. Speaking at the 12th RL Sanghvi Endowment AMA Lecture on Economics here, he added that India could still grow by seven-eight per cent or even in double digits annually.......
Apex bank to wait for banks to "revert and rectify" violations
The Reserve Bank of India will wait for banks to "revert and rectify" violations brought to light in a recent study authorized by it and only take action in case the errors lead to serious repercussions. According to top RBI sources, the know-your-customer and other violations committed by as many as 30 private and state-owned banks - as indicated by a report "inspected" by the apex bank - will attract action only if the errors went beyond "transactional" lapses into something more serious ..........
RBI sets stiff norm for debt recast
......These steps were suggested by the Mahapatra committee of loan restructuring which the central bank has now accepted and implemented despite banks having reservation on the recommendations on the ground that the economy is passing through difficult times which has increased bad loans in the banking sector........
DCT will not lead to misuse of money: Montek
........Asked about the study highlighting problems faced by beneficiaries in opening bank accounts, he replied, "RBI has issued guidelines that the banks will open no frills account... opening a bank account and transacting in a bank will not be a problem (in coming days)." According to Ahluwalia, the direct benefit transfer scheme will be a game changer and a very important instrument for the financial inclusion of people of the country..............
I-bankers see opportunity in downturn
...........As the investment banking sector goes through a churn in the downturn, redundancies and job losses are becoming the norm. Several banks have pared their business, bringing down the curtains on the career of many............
RBI penalizes Bhilwara Mahila Urban Co-op Bank
Now it is Mahila Urban Cooperative Bank’s turn. So would it seem. The Reserve Bank of India has imposed a monetary penalty on the Bhilwara Mahila Urban Co-operative Bank Limited, Bhilwara............
The Break Out Formula
........The RBI deregulation provided wind to its sail but what has worked for Yes bank is its "knowledge banking", approach with a
focus on sectors like Food and Agribusiness, Engineering,
Infrastructure & Logistics, TMT (Technology, Media & Telecom)
and Healthcare. This well researched approach to sunrise sectors has
helped Yes Bank obtain domain expertise, and hence, through knowledge
arbitrage, the bank has customised solutions as per the client needs.
"It has also helped in managing risk in a better way, which
consequently led to creating a niche for itself through knowledge
banking.........
HDFC Bank's Puri continues to be highest paid Indian bank CEO
.....As per the Reserve Bank of India's (RBI) guidelines on compensation released in January, 2012 the performance bonus of private banks' chiefs is capped at 70 per cent of their fixed pay. Also, if the amount of performance bonus is more than 50 per cent of the chief executive's fixed pay, the bonus payment needs to be deferred over a period of time......
'State Bank approached to finance Vizhinjam Project'
....Chaudhuri said that at present the State Bank was supporting all ventures in Kerala as the majority of the deposits are from the state. On funding the flyovers in the state, he said that it depended on the funding pattern. Even if the Reserve Bank of India (RBI) cuts the repo rate, the interest rate will not come down. To make the Cash Reserve Ratio (CRR) more effective, there should be a system to provide interest rate by RBI for CRR........
Large MFIs may get to keep 12% margin cap this financial year
...........The Reserve Bank of India (RBI) might allow large microfinance institutions, or MFIs (with a loan book more than Rs 100 crore) to keep a margin cap of 12 per cent for this financial year. It is expected RBI would issue a notification in this regard soon...........
No fast rebound for India’s moribund economy
..........“It is imperative that both the government and the RBI get their acts together,” said Jyotinder Kaur, an economist with HDFC Bank, who believes the Reserve Bank of India (RBI) should take action to get money flowing into the real economy..........
Govt hopes inflation-linked bonds can curb gold buys
...............Ultimately, the government hopes the linkers will provide some alternative to gold, reducing demand for imports of the precious metal that have helped push India's current account deficit to worryingly high levels. India is looking at these auctions to professional investors as a way to settle on the right pricing before directly selling them to local households later this year............
Gold sales by banks: High and inconsistent rates and different KYC rules
............We also noticed that there is no uniformity amongst banks when it comes to customer verification. This makes is easier to target some banks to launder money, and then sell the gold later to someone else. RBI does not permit banks to buy back gold. Some banks use KYC while some accept PAN cards and that too at different values...............
Indians plan sweet revenge on Govt’s move to curb gold
If the Indian government was horrified with its people’s love for gold in the past, it has reason to be more horrified now. That is because a sharp fall in gold prices is holding up the demand for gold...........
Thursday, May 30, 2013
'Total overhaul of existing financial system needed'
........."Regulators like RBI are to aide the government in administering and governing... No single central bank in the world can say, I am autonomous, therefore, I will decide what I will do,...........
Read - ET
Open House with Dr K.C.Chakrabarty, Deputy Governor, Reserve Bank of India
Are you angry
about being harassed by Bank services? Are you worried about Bank charges
being too high?
|
 |
This is a rare opportunity to voice your concerns and share all your
issues relating to banking services. Don't Miss It!
|
| Read............. |
Obituary
Mr. P.J. Kothandaraman, Retd. Treasurer, Reserve Bank of India passed away on 27.05.2013. No.20, Poes Road, First Street, Teynampet, Chennai – 600 018. Phone: 044-2435 0428 / Mobile: 99400-43255
Currency Notes from Chemicals?
...........The woman is a doctor and one does not become a doctor without some intelligence. How then was she duped? The good doctor met three conmen who had some ‘special’ chemicals that could produce duplicate currency notes, no less. Yes, the same notes that we normal, unlucky humans work our butts off to buy the next square meal!...........
RBI to hire 525 assistants
.............The recruitment would be conducted through an online examination and interview. The written test would be conducted in four phases in the last week of July. Interested candidates can apply between May 30-June 20, 2013...........
My View on "(Re)quest for VITALINFO......................."
Nice to know that more and more people are showing interest in reading articles/comments on current issues in financial sector. Representing both sides (readers and contributors), may I request users of VITALINFO to express their views on important issues? This may help VITALINFO to further grow and become more effective in participating in thought process of people who matter.
- M.G.Warrier
SBI, Kotak Bank among 30 violating KYC norms: RBI report
A Reserve Bank of India study has brought into light irregularities that are plaguing the entire banking system. The recent expose by Cobrapost was limited to questionable transactions in Axis Bank , ICICI Bank and HDFC Bank , but the RBI study has found out Know Your Customer (KYC) and anti-money laundering (AML) violations in a thematic study of 30 banks....
RBI review: What do banks do about your ATM complaints
........Okay, so this is according to the review done by RBI, and good to see that banks are taking initiatives. But, there is still a good possibility that what the review says, is very different than what you experience. For instance, an absent caretaker at a sensitive ATM location. Or may be you still get torn, soiled notes from the ATM..............
Finance Ministry, State Bank of India rescue young couple in distress
.......The couple pleaded repeatedly with the manager of the bank to allow them to access the money, but to no avail. Desperate, they wrote to the department of financial services in the finance ministry and SBI’s head office seeking help, and got a response. “It was an unusual request and not something that we usually handle. It was taken up for action, and the rest was done by SBI,” a senior ministry official said. SBI chairman Pratip Chaudhuri declined to comment on the case.......
Filing tax return is important, but it is not the final step
........While completing the task of filing of ITR is an important milestone, however, the same is surely not the final one. The Tax Office would like to verify your ITR and ensure if all transactions, tax payable thereon have been reported therein and such taxes have been duly paid. Accordingly, it is important to understand the process deployed by the Tax Department, likely outcomes and challenges, if any, which could arise there from and be prepared for it..........
BHILWARA SANGAM UNIVERSITY BBA MBA STUDENTS ATTEND FINANCIAL LITERACY SESSION AT RBI JAIPUR
.......Dr. Sathyan David, Regional Director inaugurated the special session which was arranged for the Sangam students in the Lecture Hall of RBI Jaipur. Highlighting about history of money, evolution of central banking and the role of Central Bank in economies of countries, Dr Sathyan advised the students to read a variety of journals and books, so that they may keep themselves abreast with the latest developments around the world. Two short films on the History of RBI were also shown to the students..............
Read.........
Less grey out there
............Interestingly, while it is commonplace to say that just a fraction of India’s high-value transactions get reported to the taxman—that’s what the Cobrapost sting suggested—the taxman’s data is quite reassuring. Less than a fifth of all transactions captured are taking place without valid PAN details. Whether or not those making the transactions are paying the correct amount of tax is something the taxman has to investigate, but it is clear that it is not just the rich who are avoiding paying of taxes. .............
RBI steps in after rupee falls to 10-month low
The Reserve Bank of India stepped in to prop up the rupee after it fell to a 10-month low to the dollar on Wednesday, according to bank dealers. This, coupled with the strengthening of the euro after a report showed business confidence in Germany unexpectedly rose for the first time in three months in May, helped the rupee recoup 18 paise before closing 0.5% down from its previous close...........
False signs
.......Yes, news on the macroeconomic front — particularly inflation, as reflected in both wholesale and consumer price indices — has been a little heartening. It is also widely anticipated that the Reserve Bank of India could loosen monetary policy a little bit more, and interest rates could decline some more........
Amber light on gold
.............Seen against this backdrop, it is time the RBI reviewed its policy of placing curbs on gold lending and focussed instead on monitoring lenders more effectively to ensure that they adhere to norms on Know-Your-Customer besides following prudential lending norms. A comprehensive review of all regulations at one go, as the working group has suggested, instead of piecemeal announcements as now, may also ensure greater certainty for players operating in this business.
Rein in gold coin sale, banks told
............ “If people want to buy gold for savings, the route should be available for them but for genuine purpose. But if the LTV (loan-to-value) ratio is not restrained, there is a possible risk. Gold loans form a small part of the bank's business and there is the concern of instability of NBFCs,” ....................
RBI wants you buy gold from banks. You will lose twice!
Facing huge gold imports that is worsening India’s balance of payments, the government wants to curb gold buying. However, the RBI is pushing savers to buy gold from the banks. This is one of the worst options for everybody. While banks sell you gold at a premium the RBI does not permit banks to buy them back. You will have to sell them to jewellers and get a lower price!..........
Large NBFC-MFIs may get one more year to comply with 10% margin cap
.........The industry has been demanding that the transitioning time be extended so as to allow the large NBFC-MFIs enough time to comply with the regulation. “We have requested the RBI to give us more time to transition to a 10 per cent interest cap. We are hopeful but are yet to get a notification from the regulator,” Sadaf Sayeed, Chief Operating Officer – Micro Finance, Muthoot Fincorp said.........
Microfinance flows again as fund taps reopen
......“The Reserve Bank of India has now recognised MFIs as a special category NBFC and has issued a circular, giving clear-cut guidelines for the sector. And now with RBI regularly monitoring the sector, investors have got back their confidence. Banks have also funded MFIs as part of their priority sector lending during the last financial year. This in turn has helped in regaining confidence of PEs and VCs,”..........
RBI to hold first auction of inflation bonds on 4 June
......The bonds are being issued with an aim to “protect savings of poor and middle classes from inflation and incentivize household sector to save in financial instruments rather than buy gold,....
The interest rate illusion
..........What now remains to be seen is whether, with inflation well within what has famously come to be known as the RBI's tolerance level, growth will perk up. And, if it does, will infrastructure sectors, in general, and mining, in particular, improve their performance? ........
India poised for gradual economic recovery: OECD
........The organization, a grouping of developed economies, said the Reserve Bank of India (RBI) had the scope to cut policy rates further due to the expected drag from fiscal consolidation and as non-food, non-energy price inflation softens, even as headline inflation remains “stubbornly high”. OECD said the fiscal consolidation road map presented in October 2012 should help lower the general government deficit from 7.5% of GDP in 2012 to 6.5% in 2014.........
Bihar to study laws against chitfund companies in other states
.....The meeting decided to provide training to senior deputy collectors (banking) to keep an eye over functioning of non-banking companies. The training to make these officers aware of existing laws against such non-banking companies would be organised by Reserve Bank of India on June 5..........
Read - ET
Read - ET
Amway India chief likely to appear before ED tomorrow
.......... The Reserve Bank of India (RBI) too issued guidelines which clearly put the activities of Amway under the purview of banned activities like lottery and gambling. Foreign Exchange Management (Current Account) Rules 2000 issued by the RBI brings multi-level marketing techniques and methods under the schedule of banned activities. .........
Increase retirement age of government employees to 62
......Such ad hoc decisions are taken because of specific individuals. There is one particular individual whom government wishes to place in one particular position. Once he is placed there, government wishes him to benefit from increase in retirement age. But to ensure he is placed there, one needs to ensure those who are senior to him get out of the way first. After all, supersession is not desirable. Hence, announce the decision after some people have retired at 60 and exited. This is the way decisions are taken.................
Read - ET
Kisan credit cards: Sushil Kumar Modi asks rural banks to take steps for meeting loan target
...In a review meeting with regional rural banks,Deputy Chief Minister and state's Finance minister Sushil Kumar Modi expressed dissatisfaction over distribution of only 1.30 lakh kisan credit card against a target of 2.53 lakh in 2012-13 fiscal. Modi asked the three leading rural banks of the state--Central Bihar rural bank, Bihar Regional rural bank and North Bihar rural bank-- to take effective steps to achieve the target of distributing Rs 13260 crore loan in 2013-14. In addition to senior officials of the three banks, a representative from Reserve Bank of Indiawas also present at the review meeting, a release from Modi's office said.......
Wednesday, May 29, 2013
Dynamic executive no more...................
I am sorry to advise you of the sad demise, in Pune, on May 26, 2013, of Shri.W.S Tambe, former Executive Director of RBI. He was 86 years old. He was the Executive Director during the period 1979 to 1983 -- the I G Patel era. Though he was in charge of DBOD he had contributed to Staff welfare measures in a big way. A dynamic Senior Executive, Shri Tambe was highly respected, very intelligent and friendly to all. He joined the World Bank after his term in RBI was over.
May his soul rest in peace.
- P.P.Ramachandran (via e-mail)
RBI Governor to attend credit disbursement camp
........Mr. Rama Rao said the camp was aimed at sensitising bankers in favour of meeting the targets under the RBI’s scheme. Although the scheme envisaged credit delivery by banks from Rs. 25 lakh to Rs. 1 crore in a hassle-free manner, without any collateral security and third party guarantee, implementation of the scheme was quite disheartening for want of awareness and motivation in bankers, the FAPI president pointed out...........
(Re)quest for VITALINFO..............
First of all, congratulations and thank you very much for taking efforts by spending your precious time for updating the daily news about banking industry for the benefit of all. I learnt that you are sending the daily Vital Information about banking to all the members whoever enrolled with you. I also learnt that it is very useful for updating our knowledge about the banking sector including RBI. I am requesting you to add my mail id in your data base for getting VITALINFO Dailyzine regularly.
Regards
S. Purushothaman, Manager
Centre for Advanced Financial Research and Learning (CAFRAL)
Reserve Bank of India (RBI)
Mumbai
HDFC Bank manually clears 1.61 lakh cheques in a day
HDFC Bank conducted a full-fledged Business Continuity Plan (BCP) drill during which it processed a record 1,61,373 instruments worth Rs 1,130 crore in a single day in Ahmedabad. The exercise was carried out recently under the guidance of the Reserve Bank of India (RBI) to check the readiness and manual processing capacity of its back-up centre, in case of any disruption in the electronic clearing system in the future, the bank said in a statement...........
Nabard suggests three-way joint venture for women’s bank
..............A top Nabard official told the ‘Committee to prepare a blueprint for the proposed India’s first Women’s Public Sector Bank’ that the Government should hold 26 per cent stake in the proposed bank, which will be run by women exclusively for women, while public sector banks and Nabard will together hold 74 per cent. “This (partnership between the Government, public sector banks and Nabard) will ensure good governance, focussed attention to the principal objective (lending exclusively to women entrepreneurs, achieving financial inclusion and women’s empowerment) and availability of resources at an appropriate cost,” said the presentation.............
Coming soon: debit-cum-credit cards to help you shop freely
.....What's more, such a card will switch automatically from debit to credit mode when cash runs out in an account. The card will act as a credit card in case of unavailability of funds in a customer's account and debit card when the account has sufficient funds. Unlike the current practice of a maintenance fee, this card will be given free to customers.....
Expand branches in unbanked rural areas: RBI
...........“To facilitate speedier branch expansion in unbanked rural centres for ensuring seamless roll out of the Direct Benefit Transfer/EBT Scheme of the government, banks are advised that they may consider front-loading (prioritising) the opening of branches in unbanked rural centres over a three-year cycle co-terminus with their FIP(2013-16),” RBI said..........
RBI plans open market operations
The Reserve Bank of India is looking at conducting open market operations (OMO) after assessing the Government's cash balance, according to Deputy Governor, H.R. Khan. "We will assess (the liquidity situation) and then see what the government balance is...wether it is short term or long term," Khan told reporters on the sidelines of a conference on Business Correspondent Model to check financial inclusion.................
Delays push new bank permits close to polls and uncertainty
D Subbarao, the outgoing Governor of the Reserve Bank of India, is unlikely to begin receiving applications for new bank licences before his term expires in early September. This has created a problem for the finance ministry: it pushes back the date for the grant of the licences to the middle of 2014 from the February-March period it was expecting. This would mean the first banks would get their papers only after the general elections...............
Deadline for new bank permits could be extended
Private banks rain goodies on staff as talent war hots up
.......Jobs in the banking sector are likely to boom after remaining dull throughout 2012, once the Reserve Bank of India issues licences to new players. However, according to headhunters, the recruitment drive would gain momentum only if new banks decide to focus on retail business and not remain confined to corporate banking............
RBI asks banks to disclose details of capital issuance
.............The new rule, issued to conform with Basel III banking capital reforms, will be applicable from July 1 and lenders should report details on their September-end balance sheets, the central bank said in a statement..........
Cobrapost sting: I-T notices to ICICI, HDFC and Axis banks
...........In its report on accusations against the three banks, RBI had said there were instances of splitting cash deposits below Rs 10 lakh to avoid reporting it as a cash transaction.It said the banks were found to be accepting cash of Rs 50,000 or more without a permanent account number (PAN)..............
RBI distressed by rising number of illegal schemes: Subbarao
In its effort towards financial inclusion, the Reserve Bank of India Governor D. Subbarao said women demanding banking services is the biggest accomplishment in the last four years. He was speaking after the frontline managers’ conference on business correspondent (BC) model in Pune...............
I-T Dept will come down hard on banks violating KYC norms
............Now, data related with Form 60 is being looked into. The Department has also obtained an enquiry report of the Reserve Bank of India, which identified a number of cases in which neither PAN nor Form 60 was obtained by the banks. Not only this, dummy PAN has been quoted in case of multiple entities, it has been alleged. This issue was discussed in the two-day Annual Conference of Chief Commissioners and Director Generals of Income Tax, inaugurated here by Finance Minister P. Chidambaram on Tuesday.........
‘Fly-by-night’ finance company in Vizag downs shutters
............These schemes do not have the approval of the Reserve Bank of India. As many as 1,800 depositors fell into the trap and the company mobilised Rs.5 crore in a span of just four months and wound up its operations in January this year and escaped with the money by duping the investors.................
It may be worth giving the first inflation-indexed bonds a miss
The more one learns about the government’s inflation-indexed bonds (IIBs), the less it seems like a real effort to give the saver a good deal. The Reserve Bank of India (RBI) has put out details about how the scheme will work in practice, and the examples given are not particularly exciting..............
India’s Golden Problem
...Addressing that issue might be possible with a slightly bolder option – allowing the Reserve Bank to issue gold bonds. This system would allow households to take their physical gold and exchange it for certificates – not only will these be redeemable at any point but they will also be transferable, allowing holders to buy and sell these certificates at prevailing market rates. It will also be cheaper for households, eliminating their explicit (vaults, bank lockers) and implicit (risk of fire, theft) holding costs. The Reserve Bank can then put these assets to work by lending it out to jewelers and earning a return while simultaneously curbing gold imports......
What's next for gold borrowers?
......Under such circumstances, unless you are in need of immediate funds, it’s best to look at other cheaper resource-raising alternatives. Taking into account the present value of gold per gram and the margin requirements, you will have to look for other modes of raising funds such as a personal loan, loan against assets like property or fixed deposit........
Why should depositors from better banks pay for cooperative banks’ failure?
..........What is worse, co-operative banks are poorly regulated under the dual regulation of the Reserve Bank of India (RBI) and the Registrar of Cooperatives. It is an open secret that RBI's supervision is completely ineffectual when it comes to co-operative banks, because of the enormous political influence wielded by their promoters.............
More than a dozen co-operative banks go belly up. Should you worry?
.........The good part is that Reserve Bank’s credit insurance arm has paid Rs 159.85 crore to depositors of 13 cooperative banks which went bankrupt during April 2012 to March 2013, according to DICGC.
Why enhance education loans?
.........Now, banks stung by bad loans are buying insurance to cover default risk, which should make borrowing costlier for students. The total value of all currently disbursed loans, according to Reserve Bank of India data, is Rs 5,510 crore. In 2011-12, the ratio of bad loans was 4.5 per cent, and according to banking experts, has gone up in 2012-13 by another 100 basis points. That makes it important to ask ourselves should we be treating educational loans as other loans.............
Singapore NPA norms hit banks
..............Banks such as State Bank of India (SBI), Bank of Baroda (BoB), Bank of India (BoI) and ICICI Bank, who have businesses in Singapore, are the ones affected by this. While banks don’t reveal the exact geographical break-up of their international advances, between 5-10% of the international lending for these banks could come from Singapore operations................
SBI chief may get extension, LIC & UTI await new heads
The ills of public sector banks, SBI included, can be traced to their parentage
.......This is not to hold a blind brief for public sector banks. Admittedly, they are often lethargic and function more like bureaucracies than like commercial ventures. But the very fact that many of the top-rung at new private sector banks cut their teeth in these very same PSBs that are now being condemned should give lie to the naïve belief that the latter are inherently ‘unbankable’ as one business daily scathingly put it............
Talks on for merger of bank with SBI
Tuesday, May 28, 2013
Why isn’t anyone accepting Rs.5 notes in Hyderabad?
.........While the 50ps coin presents a minor problem, the issue of the 5-rupee note is yet to receive clarity. Most businesses do not accept 5-rupee notes, declaring that the “banks don’t take them anymore.” Countering this, officials from the RBI Hyderabad insist that no such move to phase out 5-rupee notes has been undertaken so far. “In the case of phased out notes or coins, you will realise that it is only the coins below 25 paise that have been phased out. The 1-rupee, 2-rupee and 5-rupee as well as the 50ps coins are still legal,” said an official of the RBI..................
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