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Monday, September 30, 2013
Rajan’s theme: Change with continuity - Dr.N.A.Mujumdar
India's got the Rajan it needed
......Rajan is having a charmed life so far. Fortunately for India, he is the right person at the right time. An academician of outstanding credential and with vast international experience courtesy the Inter-national Monetary Fund, Rajan is a man of tremendous equanimity. He is quite unlikely to be a person who would let a good crisis go waste by being blinded by some coincidental turn of good fortunes........
Righting a wrong, RBI way
.........The intent of the RBI — in ensuring that truth prevails in business of lending — is surely laudable. However, it could not have come at a worse time. Asset-based financing is languishing. Defaults and delays are mounting. NBFCs are facing the toughest time over last decade or so. At this stage, anything which affects business will soon worsen into an existential question.
RBI Governor not to address IIM-R conclave
..........Sources said the IIM-R had sent a formal invitation to Rajan to address the conclave, scheduled to be held on October 5 and 6 October on the campus of Maharshi Dayanand University. However, Rajan declined the invitation citing his busy schedule and prior commitments.............
RBI man tears up illegal advertisements wherever he finds them
Seeing that no action is being taken against illegal posters in local trains, Ramchandra Karve, an officer with the Reserve Bank of India (RBI), has been following up on the issue himself, tearing up these posters in local trains whenever he finds them Mr Karve has been writing letters to divisional railway manager (DRM), general manager (GM) and even the Railway Board, but after getting no results from administration, he has been tearing up these posters when he comes across them. An officer of the rank of an assistant manager with the RBI, Mr Karve has made a list of all the babas advertising ‘miracle cures’ and written to senior officers of the Railways, including the chairman of the board...........
Thane chopper was deployed to carry RBI cash to red zone
......The Bell-212 chopper was scheduled to take off on Monday, and take a few more sorties during the coming fortnight. This is a routine exercise taken up by the RBI in every 2-3 months. However, authorities at RBI as well as the airport remained tight-lipped over the issue. It was confirmed at the airport that the helicopter was supposed to land at Nagpur, but no further details were divulged. The RBI's Regional Director Phulan Kumar said the bank had nothing to do with the incident. "How can you link an air crash with RBI's currency remittance operations?" she said. ............
7TH PAY PANEL TO WORSEN INFLATION RIDDEN ECONOMY
......The 7th pay commission, however, is a selective prosperity doled out by the state to a few individuals by compromising economic prosperity of the country. The new commission is nothing but connivance between two parties who happen to be the same. Thus it is unlikely that anyone will complaint. There are economic consequences to it however...............
Face of the nation
....On September 24, this year -- Poona Pact Day -- a roundtable conference was held in the Capital demanding that Ambedkar’s image also be imprinted on currency notes. “Throughout the country, statues of Ambedkar are being vandalised. Somewhere they break the hand, sometimes the nose and sometimes the head. But if we print Ambedkar’s face on Rs 1000 note, then nobody will tear it. Like this, we can maintain our dignity,” said Dalit Pandiyan, National Convenor, Dalit Liberation Movement who has been spearheading the movement since few years now............
Govt should complement RBI's efforts
Revival of domestic growth is no doubt very critical; however, recovery in growth without attaining macroeconomic stability cannot be given a priority - The Mid Quarter Monetary review of the Reserve Bank of India (RBI) on September 20 - led by the new RBI Governor Raghuram Rajan had just indicated that. .............
DFIs no longer relevant now: RBI
.....Chakravarty, who was speaking on 'IDBI's role as a DFI' organised by United Forum of IDBI Officers and Employees here last night, said that earlier banks did not have access to long-term funds and used to provide short-term working capital. On the other hand, the DFIs with government support had access to long-term funds and were able to provide term loans. "But the scenario has changed now. The banks are now having access to long-term funds through pension and insurance funds," he said..........
Finding no place on Nachiket Mor committee, cooperatives feel let down
Constitution of a ‘Committee on comprehensive financial services for small businesses and low-income households’ has triggered a fresh controversy in the cooperative sector. The Reserve Bank announced on September 23 the setting up of the committee under the chairmanship of Nachiket Mor, member on the central board of directors. Representatives of new generation banks and corporates dominate the committee, cooperative activists told Business Line here, requesting anonymity. The cooperatives sector, which has pioneered the financial inclusion drive in the country for more than a century, feels let down after failing to find representation on the committee..........
Farmers vow to fight against Bakshi panel report
Farmers bodies and employees in the cooperative sector have resolved to fight against the ‘anti-farmer’ Prakash Bakshi Committee report on short-term Credit Cooperative Structure. At a roundtable conference organised by the N.G. Ranga Kisan Samastha here on Saturday, they expressed fears over the very existence of the Primary Agricultural Cooperatives (PACs). They urged the State government to reject the recommendations in the interest of the three-tier cooperative credit institutions.......
Finance minister all for women's bank branch in city, says Khaire
AURANGABAD: Union finance minister P Chidambaram has assured local Member of Parliament Chandrakand Khaire that a branch of India's first all-women bank - the Bharatiya Mahila Bank - will be opened in Aurangabad. The finance minister's pledge came after Khaire wrote Chidambaram a letter, congratulating him on the initiative to set up 25 branches of the bank by the end of this fiscal year. Khaire had also requested for a branch to be set up in the city at least in the second phase of the bank's proposed establishment.........
ZCF demands more bank branches in Tamenglong
........."While the Central Government and the RBI are talking of Bank branches expansions to rural areas, RRBs, Business Correspondence (BC) Model, EBT, White level ATMs, Financial Inclusion mainly to cater to the financial services needs of the rural India, what id preventing the State Government of Manipur from taking the step forward along with the willing Private and Public Sector bank(s) especially the SBI in creating an infrastructure and opening a full-faced bank branch(s) and an ATM in Tamenglong HQs is a question one only needs to ponder". It stated, the only UBI branch in Tamenglong Hqs cannot meet the demand and needs of customers of the area, and the only SBI is located in Longmai, inside the Assam Rifle camp..........
RBI works overtime to meet Rajan's deadline on banking licences
...........Apart from officials from the department of banking operations and development -- the department which has drafted the licence norms and primarily responsible for short listing -- some 20 odd officers are also now involved in the screening process. According to sources, these officers have been chosen based on their core competency in areas like corporate finance, accountancy and legal, among others. Four to five teams have been created -- headed by a general manager -- to look into various aspects of the applications. The entire process of screening the applications is being overseen by Anand Sinha -- the deputy governor of RBI, in charge of banking operations and development portfolio...........
Bank licences, an efficacy test for RBI: Mahapatra
Even as a debate is raging over the wisdom of allowing industrial and business houses to apply for new bank licences, the Executive Director of the Reserve Bank of India, B. Mahapatra, asserted that the apex bank would have to be extra vigilant in the evolving context. In his inaugural address at the National Institute of Bank Management Conclave on ‘Implications of new bank licences’ in Pune on Saturday, he said the regulatory and supervisory effectiveness of the RBI would be tested in preventing the new banks promoted by industrial and business houses from self-dealing..........
RBI defends letting corporates apply for banking licences
............Many such as eminent economist Joseph Stiglitz and former RBI Governor Y V Reddy had raised concern on allowing corporate houses into banking. An International Monetary Fund staff report had said this would lead to conflict of interest. However, RBI pointed out the advantages of such a move and highlighted the safeguards taken to implement it. “Financial inclusion being the overall objective of the present bank licensing policy, it was considered industrial houses with their deep pockets could fill the gap, as financial inclusion is a capital and technology-intensive project,” RBI Executive Director B Mahapatra said at a seminar in Pune on Saturday..............
Rahul Gandhi cautions RBI private banking norms
New Delhi, Sep 29 (TruthDive): Banking licenses for corporates have raised many concerns by the parliamentary standing committee headed by ex-Finance Minister Yashwant Sinha and had Rahul Gandhi as one of the members who did not raise any dissent note on the report. The report came at the time when RBI is going through the applications and plans to send the shortlisted ones to Bimal Jalan panel. The parliamentary committee also wanted RBI to increase the paid-up capital from Rs 500 crore to Rs 1000 crore. It also was not in favour of vesting discretionary powers with RBI since it could be misused in the background of many scams............
Sinha wants RBI to turn back on road to new bank licences
......... “(Bank) Licences have not been issued so far; only applications have been submitted. Therefore, the process can be rolled back and it cannot be legally challenged by anyone. We have called upon the RBI and the government to reconsider the decision (to allow corporates in banking). If the RBI and the government have another view, let us agree to disagree."................
Barons of Banking
‘Repo rate is immaterial, please throw it out...’
...........The outspoken banker, who steps down on September 30 (Monday), set off many discussions and debates in the banking circles. His view that the cash reserve ratio must be done away with ignited vigorous debates among top bankers and policymakers. Chaudhuri believes that even a top bank must compete aggressively for public deposits and be anchored in boring, yet safe, banking fundamentals................
Pratip Chaudhuri’s legacy at SBI
.........His colleagues say he is analytical, well read, sharp but could not form a cohesive team at the top end. They also say Chaudhuri has a tendency for micro management. At every board meeting, he has been the first to speak and that discouraged others from expressing views that changed the boardroom dynamics. This, of course, points to a larger issue on whether the chief executive officer should also be the chairman of a bank.
SBI chairman summoned to court on last day in office
........A notice has been sent to Chaudhuri in his personal name as well, D. Thomas Franco Rajendra Dev, General Secretary of the Officers’ Union, Chennai circle, informed Business Line. The contempt petition was invoked against breach of an interim stay on a contentious circular issued by the bank withdrawing the ‘check-off’ facility provided to the association. This facility provided a lifeline to the association in the form of individual subscriptions from salary accounts of member-officers routed to its account by the bank...........
People’s obsession with gold led to economic crisis: Dr Narendra Jadhav
Move to assess gold in temples comes a cropper
The Reserve Bank of India’s initiative to elicit information on the quantity of gold stored by various temples has become a non-starter. Several temple trusts and Devaswom Boards, which received the letter from RBI a few weeks ago, have cold shouldered it. While some of the temple trusts are understood to have decided not to respond to the letter, others are yet to take a decision............
Gods forbid: India's temples guard their gold from government
.....The central bank, which has already taken steps that have slowed to a trickle the incoming supplies that have exacerbated India's current account deficit, has sent letters to some of the country's richest temples asking for details of their gold. It says the inquiries are simply data collection, but Hindu groups are up in arms. "The gold stored in temples was contributed by devotees over thousands of years and we will not allow anyone to usurp it,"...........
Onus for forging consensus lies with government
......Former governor, Reserve Bank of India, Bimal Jalan, speaking on the theme "Capital Fear: Managing liquidity and Funding Growth," called for "complete harmony and coordination between the central bank and the finance ministry." He said that while the views of the RBI and the government may differ but larger objective of growth should be kept in mind..............
RBI asked to share money laundering details with probe agencies
......It was decided that CBI will probe cases of money laundering that have come to the notice of RBI during its inspections. One such case pertains to a cooperative bank in Lucknow linked to a BSP member of Parliament where transactions amounting to several thousands of crores have come under suspicion. In fact, RBI had filed a criminal case in Lucknow's chief judicial magistrate's court against directors and CEO of the cooperative bank but failed to alert either the FIU or CBI on it. .......
Is Kerala's development a chimera?
RBI governor Raghuram Rajan's panel report, that laid out new norms for determining development and backwardness among states, placed Kerala in the highest category of 'relatively developed' and, that too, ahead of states like Tamil Nadu, Maharashtra and Gujarat. But when it comes to investments Kerala is at the bottom of the ladder.......
Raghuram Rajan’s report politics
....Of the six members, Najeeb Jung ceased to be a member after taking over as the Lt Governor of Delhi. Another member Shaibal Gupta had strong reservations on a lot of criteria used in the report which were never addressed, forcing him to write a strong dissent note. The report itself states that they did not achieve full consensus on every issue. Can a report whose committee members themselves are not unanimously convinced of it’s merit, be trusted?............
The state of States
............ No sensible person though would see this as an excuse for its not-so-impressive performance in generating growth and jobs. The underdevelopment index is useful mainly for serving as a rational basis for allocating Central funds to States. No politics here, please.
Smart shopping made easy
.....RBI has been generally uncomfortable with teaser products. RBI Deputy Governor K C Chakrabarty, whose current portfolio includes department of banking supervision and customer service, had red- flagged teaser products way back in February 2010 with: "Don't just tease new customers, also tease old customers by charging a uniform rate for both." The comment was in response to teaser loan products launched by the country's largest bank, State Bank of India. Many other banks and housing finance companies had been forced to introduce similar products to protect their market share. The apex bank's latest salvo seems to be in line with this.......
The story behind 0% interest EMI schemes
......The Reserve Bank of India, in a bid to keep things simple for the consumer, ensure more transparency on part of the manufacturer, the financier and the retailer and to protect the consumer from such complexities, issued instructions to commercial banks to desist from practices that thwart fair and transparent pricing of products including the most prevalent zero per cent loan and subvention schemes............
Cyber frauds: Puneites lose Rs 5 cr in 9 months
......“We keep wondering how these fraudsters manage to open fake accounts by submitting fake KYC forms of people, open accounts in different banks and make real transactions in these accounts,” Shinde added. Shinde claims that they have also asked bank authorities to create awareness among customers about the latest security measures and also to be vigilant while submission of KYC forms to weed out fake accounts. .............
NEW-AGE BANKING
....By
embracing modern age technology, banks have increased their efficiency
in banking transactions. Modern-day banking applications allow
individuals to pay utility bills, transfer funds, invest in a wide range
of investment products from fixed deposits to mutual funds etc. Banks realise this and have been active in the wealth management space for some time now.........
ICICI Pocket Application May Be Insecure And Violative Of Indian Laws
.....However, doubts have been raise about the legality of such a service and its use in India especially keeping in kind the recent developments in the banking field. Techno legal experts have opined that ICICI’s Facebook application Pockets may be violating Indian cyber and banking laws. According to Praveen Dalal, managing partner of New Delhi based ICT law firm Perry4Law and leading techno legal expert of Asia, the Reserve Bank of India (RBI) has recently declared that Risk Management for Card Present Transactions would become operational from 1st October 2013............
Saturday, September 28, 2013
Towards a new RBI
RBI to hear customer grievances on Oct. 6
.......On October 6, The Reserve Bank of India (RBI) has called for an Outreach Programme to propagate the various programmes of banks and also to counsel and listen to banking-related grievances of customers. The meeting — to be chaired by J.B. Bhoria, Regional Director of RBI, Maharashtra and Goa — will be held in south Goa’s Ugem village in backward Sanguem taluk. Apart from representatives of banks, Banking Ombudsman Rosemary Sebastian would be present for the outreach programme............
Joyful hymn..........
My View on t "Line of Credit":
Dr R R has many aces up his sleeve,
He knows how to knit, stitch and also weave,
We can unhesitatingly repose our full confidence in him,
In his honour let's all sing a joyful hymn.
- F R Misquith
12 injured in lift mishap at Lucknow Nabard office
Twelve people were injured when the lift at the Nabard office here fell from the fifth floor to the ground after its cable suddenly snapped, police said. The incident took place at the bank’s office in posh Gomtinagar area. Superintendent of Police, Trans-Gomti, Habib-ul-Hasan told IANS that the occupants of the lift were coming down from a monthly meeting when the incident took place..........
RBI sets Feb 2014 deadline for Rupee Bank takeover
PUNE: The issue of the takeover of Rupee Cooperative Bank Ltd has reached the decisive stage as the Reserve Bank of India (RBI) has given an ultimatum that a merger must be announced before February 2014 or it will start the process to liquidate the cooperative bank. The more than a century old Rupee bank has been under RBI directions since February 22, 2013, following large-scale irregularities in its operations and mounting non-performing assets which put its viability in jeopardy. Mumbai-headquartered Saraswat Cooperative Bank Ltd is the principal contender to take over the bank, with its offer for a complete takeover. Other cooperative banks have shown willingness to take over only a certain number of branches........
Urban co-operative banks permitted to seek scheduled status
.......According to the RBI notification, UCBs with deposits not less than Rs 750 crore on a continuous basis for one year, a minimum capital adequacy ratio of 12%, and continuous net profit for the previous three years will be eligible to apply for scheduled bank status. Such banks should have gross non-performing assets (NPAs) of 5% or less and need to be in compliance with the mandatory cash reserve requirements stipulated by RBI. Besides, such lenders should not have any major regulatory and supervisory issues..........
RBI’s new Financial Inclusion Committee: Rife with conflicts of interests
.........How strange that while Dr Rajan is trying to give out banking licences in a fair and transparent manner, several members of the newly appointed financial inclusion committee, themselves are associated with groups looking to get a new banking licence................
'PNB, IDBI, Canara under lens'
With growing vulnerability to an adverse business environment and pressure from stressed assets, global rating agency Fitch on Friday said it would step up scrutiny of three public sector banks (PSBs) — Punjab National Bank (PNB), IDBI Bank and Canara Bank. Indian banks, especially PSBs, will see more of a rise in bad loans and restructured assets in the next 12 to 18 months due to a long spell of economic slowdown, banking sector analysts with Fitch Analytics said in a conference call. The agency is slated to release a report on the Indian banking system early next week....
Strong measures
.......Several viewpoints have been floated since the RBI announced this ban, largely speculating on a fall in real estate prices as a consequence. It has been opined that developers’ holding power will be significantly reduce, forcing them to reduce prices. This analysis of the situation is based on the currently high levels of inventory that developers are saddled with, especially in larger cities like Mumbai, Bangalore and Delhi...............
HC tells SBI to pay 50k over ‘frivolous’ petition
.....Justice Rekha Sondurbaldota dismissed a petition by SBI challenging Pune city civil court’s order issuing summons
to its chairman and 17 senior officers in a suit filed by S S Gadokhe
& Sons, Engineers and Contractors, which sought damages of more than
Rs 4.3 crore.............
Red - TOI
RBI ban: Cards stacked against retailers
.......If the RBI can bar zero-interest schemes in retail, why is not such a policy applicable to the banking sector, asks Mohandas, who had worked with public interest litigants. The authorities had given green signal to sharia-compliant financing in Kerala recently, which forbids interest regime.
RBI asks banks to bear the cost of deploying e-KYC of Aadhaar
In yet another example of burdening bank customers, RBI has asked banks to deploy infrastructure at own cost for using UIDAI’s Aadhaar biometric authentication for KYC. Although the Supreme Court has ruled that Aadhaar number from Unique Identification Authority of India (UIDAI) is not necessary for essential services, several government agencies are enforcing it on helpless citizens. Going a step further the Reserve Bank of India (RBI) is asking banks to bear the cost for deploying electronic-know your customer (e-KYC) launched by UIDAI...........
Banks to bear card fraud cost in absence of security features
..."It has been decided not to grant any further extension of time. Accordingly, banks not complying with the requirements shall compensate loss, if any, incurred by the card holder using card at POS (points of sale) terminals not adhering to the mandated standards," RBI said in a notification. In this context, it said, since the card holder would be approaching the card issuing bank for any fraudulent POS transaction in India which have occurred after September 30, 2013), the bank should claim the amount paid by it to the customer from the respective bank which have acquired the POS transaction in question......
State Bank to expand reach of cash deposit machines to woo retail money
........“Approximately 10 per cent of the economy is cash with people. So, if a part of that cash comes back into the system, I think, that itself puts more resources with the banks and the country would benefit,” said Pratip Chaudhuri, SBI Chairman, .............
New ATMs to double up as branches
.....ATM makers are targeting new banks with their latest offering - a machine that virtually doubles up as a branch. The machine can count notes and sniff out the fake ones while accepting deposits, and use the same notes for withdrawals. The machine can perform cheque truncation - the process of settling cheque payments on the basis of cheque images. The ATM also has a virtual teller where an executive will videoconference from the bank's call centre and try and sell account holders mutual funds and insurance when customers withdraw funds. ..........
MobiKwik Launches Mobile Wallet
...........What’s interesting here is that Mobkwik is transitioning its user base from a closed wallet to a semi-closed wallet. Singh clarified that there are no specific RBI guidelines which prevent this transition, and frankly, we don’t see why there should be – consumers are getting the opportunity to use their money to pay for more goods and service, instead of being restricted to a single merchants offerings. The semi-closed prepaid payments wallet allows customers to add up to Rs 50,000 by credit or debit card, Internet banking or cash cards. MobiKwik has apps for Android, Apple, J2ME and Blackberry, and transactions are also possible via their website, SMS. The company is planning to launch a Windows App............
Aadhaar, fingerprint scan enough to open bank a/c
A
few weeks after RBI governor Raghuram Rajan stressed on building credit
histories of individuals based on the Aadhaar number, one bank has
introduced unique identity-based eKYC for opening loan and savings
accounts. Axis Bank, which is using payment company Visa’s
network to access Aadhaar database, will introduce the eKYC facility in
around 25 branches next week. The branches will open loan and deposit
accounts based on the Aadhaar number and fingerprints instead of proof
of address and proof of identity..........
Read - TOI
Read - TOI
Par panel against corporates getting bank licences
...The Parliamentary Standing Committee on Finance, headed by former finance minister and BJP leader Yashwant Sinha, finalised its report on the new bank licences at its meeting here Friday. According to sources, the most of members opposed the bank licences going to corporate houses and the same concerns have been reflected in the report which will be submitted to Lok Sabha Speaker Meira Kumar soon. The members felt that since there is no such practice to give bank licences to corporate houses anywhere in the world, India should not be an exception.........
‘Govt won’t be kind to wilful defaulters’
..Non-performing
assets (NPAs) are something that nobody would like to encourage, and
certainly we are not interested in encouraging them or in supporting
them or holding out a fig leaf of an apology on behalf of NPAs. There
are reasons why they suddenly appear to have grown. We have created a
system of system-based NPAs, which means the system itself throws up
NPAs. Now that system-generated NPAs have started coming out, some
balance sheets have taken a hit..............
FM backs priority sector tag for exports
Finance
minister P Chidambaram has said that his ministry supported the demand
for including exports under priority sector finance and will take up the
matter with the Reserve Bank of India. Priority sector refers
to the business activity identified by the regulator with mandatory
lending targets. Banks not meeting the targets have to invest in
low-yielding government funds for that sector......
Read - TOI
Read - TOI
Decoding Rajan’s Frankfurt speech: Why central banks fuel bubbles
....Rajan in his Frankfurt speech for a change agreed with Greenspan. As he said “We should wonder whether lower and lower interest rates are in fact part of the problem, I say I don’t know.” It is easy to conclude from the statements of Greenspan as well Rajan that central bank governors do understand the perils of printing money to keep interest rates low. Given that why are they still continuing to print money?............
RBI governor says forex reserves comfortable
.......Rajan, who was speaking at a seminar in Frankfurt, reiterated the policy stance of the central bank was “neutral” at this point in time, though he said high and persistent retail price inflation was a concern. “At this point, we are neutral, we will see how things develop,” he said when asked about the central bank’s policy stance. The RBI chief added inflation was not just due to higher food prices. “Unfortunately, there is still some inflation when you strip out the effects of food and energy. Therefore, it is not just food, it’s other factors also, which are driving inflation,” Rajan told reporters on the sidelines of the conference............
Manish Chokhani backs RBI governor; says India story intact
Just for the near-term talking about interest rates how did you read the recent move from Reserve Bank of India ? There was a lot of optimism that maybe Raghuram Rajan’s rein will mark the beginning of softer interest rates, something which a lot of people think is a perquisite for the kind of bull market that we saw few years back. Do you get the sense that we will probably have to live with fairly high interest rates for a protracted period of time even from here?.............
Mamata unhappy with Rajan Committee Report
..........."I am deeply shocked and anguished by the outright and discriminatory approach of the Central Government towards Bengal in entertaining the Raghuram Rajan Committee Report," Mamata stated on her official Facebook page............
Rajan panel wasn't unanimous in framing underdevelopment index
There is some consolation for Bharatiya Janata Party’s prime ministerial candidate and Gujarat Chief Minister Narendra Modi: Not everyone in a panel headed by Reserve Bank of India Governor and former chief economic advisor Raghuram Rajan had favoured the inclusion of Gujarat in the list of less developed states........
Raghuram Rajan Committee report on states 'least developed'
.......Had this come to me as a paper submitted for publication and sent to me for "refereeing”, I would have sent it back, asking for substantial revisions. It is a least developed report. And the tragedy is that, unlike a journal paper, there will be serious discussions around it.
Friday, September 27, 2013
Deutsche Bank award for ‘financial economist’ Raghuram Rajan
Line of Credit
...........When the central banker offers himself as the only game in town, in an environment where politicians only have choices between the bad and the worse, he becomes the only game in town. Everyone cedes the stage to the central banker, who cannot admit that his tools are untried and of unknown efficacy. The central banker has to be confident, and will constantly refer to the many bullets he still has even if he has very few. But that very public confidence traps him because the public wants to know why he is not doing more................
He deserves it...........
My View on "Raghuram Rajan brings Wall Street flavour to Mint ...":
"Raghuram Rajan brings Wall Street flavour to Mint Street,
This is definitely no mean feat,
For this he deserves a wholesome treat,
We have no doubt he is in the right seat.
- Frank R Misquith
Vijaya Bank opens 10 branches in Mandya
........Speaking at the financial inclusion outreach programme organised by Vijaya Bank in Adichunchanagiri in Mandya district, RBI Deputy Governor K.C. Chakrabarty stressed on the need for the rural people to move towards formal financial mainstream so that the excluded sections of society could get the benefits of banking services. He also emphasised the need for inculcating the habit of savings among the rural people and called upon them to get credit facilities from banks to improve their living standards. He also lauded the efforts of Vijaya Bank in bringing the hitherto deprived sections of society into banking fold............
Banks urged to ensure large firms to make payments to SMEs on time
RBI shouldn't micromanage, says Jalan
.....At the convention, though unwilling to comment about Reserve Bank of India (RBIs) recent diktat on zero percent EMI schemes former RBI governor Bimal Jalan told CNBC-TV18's managing editor Shereen Bhan that the central bank should not undertake micro-management of the policy. “Reserve Bank or the central bank of India should not be in the business of micro-managing,” said Bimal Jalan, former governor, RBI..................
Will look into new bank licences after RBI scrutiny: Jalan
The proposed external committee will look into new bank licence applications once RBI completes the basic scrutiny, said Bimal Jalan who heads the High Level Advisory Committee (HLAC). "Work is still in progress. The Reserve Bank has received applications. It is doing first round of scrutiny. Then we will see how we go about it," Jalan said at AIMA event .........
RBI prods banks to bring in more dollars
................In a separate release, the RBI assured banks that it would take appropriate measure to infuse liquidity, including bond purchases under open-market operations, if needed. “The Reserve Bank is closely and continuously monitoring liquidity conditions and will take actions as appropriate, including open-market operations, to ensure that adequate liquidity is available to support the flow of credit to productive sectors of the economy,” the central bank said...............
SBI clamps down on trade union activity
State Bank of India, the country’s largest lender, on Wednesday terminated the so-called check-off facility to its officers’ federation in its biggest clampdown on trade union activities in decades. Under the check-off facility, SBI used to remit the subscription fee from the salary accounts of member officers to the account of the association on the day of salary payment, typically the 25th of every month. This is the latest of a series of steps the SBI management has taken to control the officers’ union. Since August last year, SBI has taken action against officers engaged in trade union activities, including transfers to far-off locations and issuance of chargesheets.......
SBI chairman’s post: Arundhati Bhattacharya’s name cleared by FM
Mumbai: Finance minister P. Chidambaram has cleared the name of Arundhati Bhattacharya, managing director and chief financial officer of State Bank of India (SBI), for the post of chairman of the bank, according to two people familiar with the development. Bhattacharya’s name will be finalized for the SBI top job only after the appointments committee of the cabinet (ACC), headed by Prime Minister, gives its clearance. The announcement is likely by the end of this month. If indeed that happens, she will be State Bank’s first woman head....
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