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, November 30, 2013
The Roadmap to Financial Deepening - Dr Deepali Pant Joshi
The “remaking” of Indian banking
......It must be noted that there is little innovation in the nature of the remaking Rajan recommends. What is being done and what is planned to be done are all proposals that have been unveiled in the past, by a series of “committees” (from Narasimham I and II, through Tarapore and Mistry, to Rajan) that were set up to launch the trial balloons that would test the political and public response to various kinds and degrees of financial sector “reform”. ...........
RBI creates awareness on Banking Ombudsman
The Reserve Bank of India in association with Lead Bank conducted an awareness programme on ‘Banking Ombudsman Scheme’ among the existing customers as well as the prospective customers of various banks, here on Friday. A.S.H. Ruchi, secretary-cum- Deputy General Manager in the office of Banking Ombudsman at RBI in Chennai, explained the functioning of Ombudsman and what types of complaints pertaining to various banking services could be taken up with him....
Responsibility of safe ATMs rests with commercial banks’
Dr. Charan Singh, RBI Chair Professor, IIMB, answers questions on who should play a role in ensuring safety at ATMs - the police, the Reserve Bank of India, or commercial banks. He also outlines a strategy for safer ATMs.......................
Assault at ATM: Bank union asks RBI to scrap ‘white-label’ model
.......Banks were following different methods of filling cash, daily maintenance and security at the ATMs and many of these functions were outsourced, leading to customer complaints. In the case of `white-labels’ it would be the responsibility of the private agencies to locate, instal, and maintain ATMs, but with no provision of security. In view of this, the RBI should scrap this move, Nandakumar said.
Withdrawal symptoms
With ATMs mushrooming across the city, it is common practice for many to avoid the ones where there is a queue to withdraw cash (a general scene during the start of the month). However, with gruesome ATM attack reported in the city and Andhra Pradesh, Bangaloreans now feel that it is better to wait in queue at ATMs than go to a deserted one. Many say they are tagging along with someone to feel safe......
A New Currency in Karnataka
A new type of currency is gaining ground in Karnataka’s Belgaum district. Issued by various shops, restaurants and other establishments, each note measures about an inch by two inches, is printed on laminated paper and available in denominations of mostly Rs 5 or less. Instead of offering them change, such establishments issue their patrons tokens marked with a rupee amount and the name of the establishment issuing it. ..............
Minor boy arrested in Bihar with fake notes
A minor boy was arrested with fake currency notes worth Rs.1.06 lakh in Bihar's East Champaran district. It is for the first time that a child has been caught with fake notes, officials said Friday. The 14-year-old boy was arrested late Thursday by the Directorate of Revenue Intelligence (DRI) on a specific tip-off that the people involved in the Fake Indian Currency Note (FICN) trade were using children as carriers.........
Savings account customers may get interest sooner than 3 months
Bank customers will now get interest on their savings accounts as well as term deposits at an interval shorter than a quarter, as per a new directive by the Reserve Bank of India (RBI). Most of the banks currently credit the interest accrued on the savings accounts every six months.......
Read.........
Read.........
The other side of the coin
My View on "Finance Ministry to seek special dividend from pro...":
This practice of ‘budgeting’ receipts from PSUs and putting pressure on organisations to declare dividend may not improve the image of finance ministry, even if the ministry succeeds in its pressure tactics and the ‘income’ enables it to show a reduced deficit figure. Actually the surpluses of profit-making PSUs should be ploughed back to further investment in infrastructure and R&D as also for supporting less profitable public sector ventures, rather than forcing a reverse flow of funds to government. The extent of pressure on organisations was visible last year also. RBI’s ‘surplus transfer’ of a huge amount even at a time the central bank’s reserves had not reached the optimum level fixed by the bank itself (2 per cent including Asset Development Reserves) should be viewed in this context.
- M G Warrier, Thiruvananthapuram
RBI to launch retail inflation-linked bonds in December
The Reserve Bank of India (RBI) plans to launch retail inflation-linked bonds in the second half of December, offering households a shield against negative returns on their savings. The 10-year bonds, which will be available through banks, will have a face value of Rs.5,000, an RBI announcement on Friday said. Investment in the bonds has been capped at Rs.5 lakh per applicant per year.......
Traders hope RBI will roll back cash constraints
..........“It is reasonable to expect the return of normalcy in the money markets as the rupee seems to have stabilised and the FCNRB and Tier 1 window would have attracted more than $30 billion,” said Sandeep Bagla, associate vice president at ICICI Securities Primary Dealership. However, a move to fully remove the cap on LAF borrowing is unlikely to come soon given some RBI officials are seen reluctant to return to the era of easy money for banks.
Monetary policy virtually ineffective: P. Chidambaram on inflation
Consumer inflation in India is entrenched due to high food and fuel prices, and monetary policy has little impact in curbing these prices, said Finance Minister P. Chidambaram on Friday. "I have been advised that inflation has got entrenched and monetary policy does not have any or has very little impact on food prices and fuel prices,"..............
Is the proposed law to regulate microfinance in jeopardy?
.....The state also said that it is doubtful if the Reserve Bank of India, which is saddled with larger issues facing the monetary system, will find time and attention to regulate this micro-sector. “Even in the recent past, authority which is already vested in RBI to regulate non-banking financial companies has not been used effectively, as a result of which crises like what happened in Andhra Pradesh could not be prevented”,................
RBI hauls up banks for not following its policy actions
........At a meeting with chief executives of the banks on Friday, RBI's Deputy Governor Anand Sinha sought to know why the lenders had not raised lending or deposit rates in tandem with the central bank's moves. RBI has raised the repo rate, the rate at which it lends money to commercial banks, twice by 25 basis points each since September 20 to contain inflation. However, most banks have desisted from raising rates. Although...........
'Good assets vital for banks to enter insurance'
..............Banks will be allowed to conduct insurance broking departmentally; there is no need to form a subsidiary or a joint venture. "In order to avoid any conflict of interest, banks undertaking insurance broking cannot enter into agreements either for corporate agency or for referral arrangements for insurance, either departmentally or through subsidiaries/group companies," RBI said, adding these guidelines would be reviewed after three years. The validity for the approvals granted would also be three years..............
How correspondents take banking to rural India
Patil is one of thousands of so-called Business Correspondents, or local bank representatives, who are taking banking to the doorstep of people in far-flung villages across the country. They help mostly illiterate Indian villagers understand the basics of banking in line with the Reserve Bank of India's 2009 guidelines on bringing the unbanked population into the fold of banking. The central bank said the process of financial inclusion involved access to banking and credit markets as well as financial education. Though still a relatively new concept, India already has more than 200,000 business correspondents who are as diverse as their rural customers : they could be carpenters, school teachers, village clerks, farmers or rural women with no education whatsoever........
Bajaj Fin may rejig mgmt to abide by RBI’s banking norms
.........The MD of Bajaj Auto said that it is engaging experts to ensure that while the new bank complies with the requirements at the same time lending to Bajaj Auto is not impacted. “Auto Finance division of Bajaj Auto is managed by me through my colleague who too is a Bajaj Auto employee. If Bajaj Finance becomes a bank then to avoid any 'conflict of interest' we may have to relinquish our roles in managing the auto division,” Bajaj told CNBC-TV18. He also voiced concerns at a time when Bajaj’s competitors are becoming aggressive in auto lending the company could ill-afford to hamper two-wheeler and three-wheeler lending for Bajaj Auto...........
NPAs: RBI wants info-sharing platform
Reserve Bank of India (RBI) Deputy Governor Anand Sinha has insisted banks must set up an information-sharing platform to reduce non-performing assets. In a closed-door meeting with bank chiefs on Friday, Sinha is understood to have asked for suggestions on how to use credit information on companies in improving communication between banks............
Banks on a bumpy road this fiscal
..........Banks had a major NPA cycle which started over a year back and substandard assets are now moving to a higher level. This means that on the same NPAs additional provisioning would have to be made. The going is expected to get tougher for banks as well as different sections of customers. Banks are worried about possible increase in slippages in sectors which have so far been largely immune to risks. The problems in the corporate sector have hit banks badly in the recent past...........
India clears way for Chinese banks
......“This is an excellent opportunity for banks in China to try and expand their Indian footprint if they wish to, because India is not going to be an indefinitely open market,” says Ananda Bhaumik, senior director at India Ratings. That is because the recently announced framework of the Reserve Bank of India (RBI) states that when the capital and reserves of the foreign banks in India exceed 20 percent of the capital and reserves of the banking system, RBI would bring back restrictions on further entry of new wholly owned subsidiaries (WOS) of foreign banks............
Non-resident Indians cashing in on the rupee’s woes
.........“The money that is being brought into India – is it eventually going to be spent in this country or is going to go back? If the money is going to stay in India, probably because the NRI has some commitment, such as having bought a house, they have dependent parents, or they have dependent family members – then it certainly makes a lot of sense to remit that money into the country.............
Sahara’s Subrata Roy blames troubles on comment about Sonia Gandhi
..........Roy alleged that his publicly aired view about Gandhi earned his Sahara group the wrath of the Reserve Bank of India (RBI), which eventually forced it to wind down its deposit-taking business through so-called residuary non-banking finance companies. The central bank, though, had previously lauded the same business as “inclusive banking”, Roy said..........
High food prices eating away at growth
........In fact, the RBI’s monetary policy has failed to control inflation. On the contrary, high interest rates are singularly responsible for choking the growth of several sectors of economy, such as housing and real estate development, production and sales of white and brown goods and the linked industrial products such as cement, metals, power, paints, wood products, petrochemicals, home furnishings, etc. Maybe it is time for a rethink on RBI’s inflation control policy, which seems to be heavily tilted towards curtailing monetary expansion. Whereas much of the current high rate of inflation is on account of increasing prices of food items primarily due to supply shortage. And.........
Farmers' suicide in Bundelkhand: Centre, UP response sought
......."Once these affidavits are filed, the court can assess whether the action of the lending institutions is in accordance with the master circulars issued by the Reserve Bank of India and whether any further direction of the court would be necessary to protect the interests of the farmers in the region," the Division Bench said. The court made the aforesaid observation in the light of the RBI's submission that it had issued "master circulars" on July 1, 2010 and July 1, 2013 "laying down guidelines for relief measures to be taken by banks in areas affected by national calamities". .........
Friday, November 29, 2013
Let’s go back to good old gold - Dr.S.S.Tarapore
.......As such, the best loss minimisation strategy would be to deploy one-third of the reserves in gold and one-third each in dollars and non-dollar currencies. As a first step, the RBI should undertake small purchases of gold, taking into account swings in prices. There is a strong anti-gold reserves lobby in India. Would this lobby prefer to hold a part of the reserves in onions!
Make RBI the Big Brother
- A B TELANG (ET)
Financial inclusion for Adivasi children at Aarey Colony
......Reserve Bank of India rightly entrusted the task of Financial Inclusion of downtrodden and Slum dwellers in Mumbai city to Bank of India. Bank of India has taken a lead and is committed to fulfill the expectations of RBI and the national goal. V.R. Iyer, Chairperson and Managing Director, Bank of India has a taken keen interest in getting Lead District responsibility in both Mumbai City and Mumbai Suburb Districts with a view to cater to the needs of downtrodden and poor people in these districts. Bank of India has identified Aarey Colony Area for implementation of Financial Inclusion Programme.........
Bhoria : The Effective Administrator
File photo :
Shri Bhoria, Ms. Kamala Rajan and Shri R.L.Sharma
at the Conference of Private Secretaries, 2010
I came on transfer to Kanpur from Jaipur Office in July 2007 and got the opportunity to work as Private Secretary to the Regional Director Shri J.B.Bhoria sir. He is retiring today after holding a very important, high and responsible position as Regional Director, Maharashtra and Goa. It was an honour and pleasure to work with him as his Private Secretary in Kanpur Office for about two and half years. Working under him was a great, satisfying and learning experience. I learnt the techniques in handling the crucial and sensitive situations and was always guided by Bhoria sir through his highly experienced and effective approach. Inspite of mounting official pressures, he was easily accessible to all his office colleagues and the senior officers, Heads of the departments, associations/unions used to meet him frequently in his chamber to discuss the informal official issues whatever they had in their mind. He was very thorough with his work, and very efficient and effective administrator. He has high degree of sincerely towards official work and is a great guiding force to all those who worked under him. Indeed, it was an honour to work with Shri Bhoria sir. I wish him a very healthy retired life ahead.
- Maya Verma,
AGM & Private Secretary
to Banking Ombudsman,
Kanpur
INVITATION TO JOIN RBIOA GROUP
You
will be happy to know that we have formed a Yahoo Group named
"RBIOA". It is basically an Internet based Group, as the
name indicates, exclusively for members of Reserve Bank of India Officers'
Association. The main aim of the group is to promote goodwill and enable
members to have free and frank discussions and share their views, especially on
the issues beneficial to the members of Association. The membership of the
Group is absolutely free. You
are most welcome to join. For becoming member please open the website of the
Group by clicking at the following link (or by typing it in your browser)
:-
http://in.groups.yahoo.com/group/rbioa
Once the page opens please click at “Join this Group” and do the needful. After you click at "Join" you will receive a message that your request has been sent to the Group. You can send/receive group mail in any email account (even other than yahoo). However initially you require an Yahoo ID for proceeding further. If you don't have one, please open a new account in Yahoo by typing in your browser <mail.yahoo.com> For any difficulty/assistance or any further information you want to have about the Group please feel free to write to moderator.rbioa@yahoo.com or rnvatsa@yahoo.com any time.
Once the page opens please click at “Join this Group” and do the needful. After you click at "Join" you will receive a message that your request has been sent to the Group. You can send/receive group mail in any email account (even other than yahoo). However initially you require an Yahoo ID for proceeding further. If you don't have one, please open a new account in Yahoo by typing in your browser <mail.yahoo.com> For any difficulty/assistance or any further information you want to have about the Group please feel free to write to moderator.rbioa@yahoo.com or rnvatsa@yahoo.com any time.
With
regards
Moderator
RBIOA GROUP
RBIOA GROUP
moderator.rbioa@yahoo.com
VITALINFO - Herculean task : V.S.Das, Former Executive Director
My dear Tarambale Sb.,
How nice to see you getting such
glowing and richly deserved accolades from so many RBItes, both serving and
retired ! I remember, you told me once that that the task requires you to wake
up very early in the morning (3:30), go through the media sites and scan
the relevant material to put VITALINFO together. I want to compliment you for
the umpteenth time for the Herculean task you have undertaken. It is really
commendable. I am happy that you have received formal recognition from the Bank
for this venture. I am, however, concerned that this should not affect your
health. May I suggest that you enlist the help of a few sincere
volunteers and train them to share your load, so that you take a break whenever
required? I believe this could contribute to the sustainability of VITALINFO in
the long run. Warm regards, -
- V.S.Das, Former Executive Director
Dear Tarambale Ji,
Heartiest congratulations and best wishes to you on
the successful completion of three eventful years of VITALINFO. Doing all that
extra work while continuing your full time job was extremely ambitious, and you
have achieved it with your personal motivation, hard work and dedication. I'm
sure it was worth it, for all its usefulness, benchmarks, applauds and many
more… including an ever widening VITAL friends and well wishers. Well done! May
you have His blessings for a renewed energy and vigour to continue this Vital
Mission.
With best wishes and regards,
- Dr.
R.L.Sahoo, Chief Archivist
Reserve Bank of
India Archives
Dear Shri Tarambale,
I hope You remember me. There
is no doubt about ‘VITALINFO’ a Role Model…. Congratulations for providing this
INVLUABLE Service …keep it up. With Regards
- D K Nalband,
Assistant General Manager, RPCD
Dear Tarambale,
Hearty Congratulations on completing three years of
VITALINFO. Your dedication and hard work is really inspirational. On a personal
note, it has been great learning for me going through VITALINFO every morning. Best
wishes for all your future endeavors. Regards
- Rama Nabar, Manager
College of Agricultural Banking
Dear Sir,
This is to request you, if possible, to add my email in your list for
sending VITALINFO. I find it really useful for my work in analytics division. Thanks
and regards
- Dr. Nitin Jain, Assistant General
Manager
Analytics Division, DBS, CO
On the happy
occasion of the birth anniversary I am happy to associate myself with all those
wishing you a very happy march enlightening every reader.
- Badri
Dear Mangesh,
I am overwhelmed to note that your "VITALINFO" has completed
three good years. Kindly accept my heartfelt Congratulations! No doubt,
this Himalayan task has been handled by you alone with full of dedication,
devotion and discipline! It is not a simple thing to have the globe united
together through your "VITALINFO". The banking knowledge has
reached every corner across the country and found one of the best tool for
financial literacy and inclusion. Kudos to Vital Information of
Mangeshji! Long live "VITALINFO". May God bless you with
happy, healthy and long life to render this selfless service! Thanks and Regards,
- Janaki Ravindran, CAFRAL
Dear Mangesh,
Hearty Congratulations as your brainchild VITALINFO enters 4th year. It
is indeed a commendable job you are doing for RBI brethern. As everyone points
out, VITALINFO has become a part of our daily life. Even high dignitaries like
former Governor, former DGs, ED have also praised your contribution in bringing
VITALINFO everyday without fail. Hats off to you Mangesh. I pray to the
Almighty for His blessings to you to continue to serve this way RBI brethern. Profound
Regards,
- S. Srinivasan, Cochin
HEARTIEST CONGRATULATIONS - On
behalf of all members of EXRBITES conveying to Shri Mangesh Tarambale. Heartfelt Greetings on the occasion
of 3rd Anniversary of VITALINFO which
falls today on 28th November, 2013.
Hats off to the hard work put by him to make our mornings bright. Any appreciation will fall short of words for
the wonderful work you have done for RBI.
Congratulations once again and wishing
that VITALINFO may touch new heights in its 4th year.
–
Madan Gauria, Moderator, EXRBITES Group
My best wishes on the occasion of third anniversary of VITALINFO.
- Shrikant Deshpande
Let us give a standing
ovation to our beloved Mangesh for continuing his commendable job. My hearty
congrats to Mangesh and wish him all the best.
- M.V.Sivakumar,
Ex Assistant Manager, Chennai
VITALINFO - Phenomenal work and sagacious services -- Ringside view
I TOO JOIN MADAN IN CONGRATULATING AND WISHING THE VERY BEST TO Mangesh and VITALINFO on the occasion of completion of VITALINFO’s third successful year of serving the banking community, RBI family and society in general. Many more happy returns of the day! Many thanks for everything. Dr D Subbarao and Shri G Padmanabhan have expressed the feelings of hundreds of VITAINFO surfers. Hearty congratulations! Warm regards
- M G Warrier
While working in our bank I had glorious moments as a WR Correspondent and photographer to have an ring side view of the inside happening in all the policy making forums of our bank - may be central board, local board, advisory committees, parliamentary delegations, and so on..... Now I have decided to share useful tips and information for common good.... In a press meet in RBSC our present PM made an appeal that every bank employee to "be patriotic, politically neutral and professionally excellent pursuits" and contribute to the growth of the Indian economy....(3 ps) and our Mangesh Tarambale is the role model....in spreading the professionalism of the invisible but invincible regulator of the Indian economy...... His mails I was regularly forwarding to many young bank executives to widen their comfort zone to render excellent empowering customer service.
I wish him score a sachin plus century and his services to reach good to great.....a lighted candle delights every banker... he is gifting roses fragrance clings to his fingers...let us also
With love
- P S S Narayanan, Ex Assistant Manager, Chennai
Best wishes for the occasion. God bless you with the potential, ,capability, energy & helpful spirit of service for the benefit of RBItes, Exrbites & yourselves (for contentment etc). Regards.
- Ranjit Kumar Rehan, Ex Assistant Manager, Delhi
Dear Mangesh ji
I extend my congratulation on the occasion of the IIIrd anniversary of the Vitalinfo. It is needless to say that the Vitalinfo is a much cherished name and the darling of all members of the exrbites group. It is very rare that so many people fall short of words for expressing their sense of gratitude and appreciation for something. VITALINFO is one such phenomenal work and sagacious services rendered by you, that exrbites are found fumbling for words for expressing their appreciation. The beauty of the VITALINFO is that it is liked, highly estimated, gratefully recognised and eagerly awaited for by all members of R B I fraternity starting from the people belonging to the lower rung of the ladder right up to the top of the R B I's hierarchy: Deputy Governors and Governors. Mangesh ji, you will be remembered for your VITALINFO for all time to come.
- G N Pandey, Ex Assistant General Manager, Delhi
Dear Tarambale
Hearty congratulations on VITALINFO's completion of three years. Among all mails we first see VITALINFO because it is not one mail, it is a newspaper covering banking and financial sectors. We appreciate your dedication and efforts for bringing out this edition daily without fail giving all information at one place. Yesterday only I was looking for some earlier VITALINFO mails as my daughter who is in HDFC Bank wanted to know about development in banking to attend a quiz contest. Long Live VITALINF. Cograts and thanks.
- A. U. Shaikh, Ex Assistant General Manager, Mumbai
Hearty Congratulations and Greetings to Shri Mangesh Tarambale on the occasion of the 3rd anniversary of VITALINFO - a sethu connecting Banking and members. What a great service !
- Vathsala Jayaraman, EXRBITES, Chennai
Congratulations to Shri Mangesh Tarambale for successfully running VITALINFO successfully for the last three years.
- G.Mohan, Ex Assistant General Manager, Chennai
I am very happy that I was reconnected to RBI through EXRBITES Group. My thanks are due to R M Joshi for introducing me to the group and to Madan Gauria for creating and managing about 500 members of the group and for connecting group with VITALINFO. there are many computer IT savvy but hard to find a person like Mangesh, who is one pointedly focused and connect all RBItes to VITALINFO through series of beeds making ornamental chain, serving the banking community, RBI family and society in general. Many more happy returns of the day! wish you successful and prosperous years ahead. Hearty greetings on the occasion of third anniversary of VITALINFO. May god grace you with a golden touch.
– K.S.Iyer, Ex Manager, Mumbai
Dear Mangesh,
Fitting tribute to Your untiring efforts from the VVIPs who count.....
-- Balasubramanian K
Congratulations. I have been accessing VITALINFO for only a few months now but am addicted to it. Thanks for all the efforts.
– Dimple Bhandia
Two-day employment fair held at Sports Ground Reasi
.......The Employment Fair was inaugurated today by Governor of J&K State N N Vohra in which he visited Bank stalls and interacted with the officials. SBI Jyotipuram in association with RBI distributed fresh currency and coins to the general public and LDM SBI along with Director SBI-RSETI educated the people about the ways and means of generation of self-employment and income.....
MP Rajeev Chandrasekhar Questions Use Of Biometric Authentication In Card Payment Units
Reserve Bank of India had advised all banks to include biometric sensor in all new credit card swiping machines and to improve their existing infrastructure to enable use of Aadhaar-based biometric authentication while making card-based payments. MP Rajeev Chandrasekhar has nowquestioned the move and raised several questions in a letter addressed to RBI Governor, Dr Raghuram Rajan..........
Need to address the address issue
My View on "Banks violate RBI norms to deny zero-balance A/Cs":
Bank staff are system driven and it is the system that applies logic, reason and rule. The staff at the counters in most banks lack knowledge of banking and most do not read their own bank's circular instructions. If the circular instruction translates into a system instruction, it is mercifully applied. There can be no discretionary application that requires the use of banking knowledge. No wonder that the survey revealed what exists in reality.
But one thing: it is important to have not one address but two and this should be mandatory. Why? I site to you a live instance: the maid servant in my house has her landed property in the village that carries a conservative value of INR 3 lakhs. She leaves off her work in the city for a minimum of two days to claim her MNREG wages to work on her own farm land! Many who migrated to the city to educate their sons/daughters and performing such chores are in this task. She also carries a chit in her community for INR 50000 reserved for marrying her daughter when she comes of age. Of course, she does not have a bank account and when she wanted to open she was asked to comply the KYC norm. No frills account in her present demeanor is a qualified account and she just could not open. It is important to have the temporary residential address and permanent address too. Incidentally, later she got the Aadhar card with her temporary residential address and this took care of KYC. The research is with an objective and the sting operation is to expose the banks' ways of compliance. This objective has been served but it is skin deep.
- Yerram Raju
ATM attack: 45-day deadline to banks to install CCTV cameras
......"Those ATMs which don't comply with the instructions will not be allowed to function," he said in a release, even as the banks struggled to adhere to the earlier order to deploy guards at all their ATM kiosks. He said a few banks have sought more time to deploy security personnel and install CCTV cameras and alarms, citing procedural delay. The banks have also asked that those kiosks located in guarded ares like railway stations, bus stations and commercial complexes, among others, be exempted from the order on posting security guards......
A Goat Or An ATM?
...The RBI has set up a committee to look at the regulatory gaps in financial inclusion. It is taking inputs from all stakeholders involved in financial inclusion. It hopes to give its recommendation by end of this year. Hopefully the committee will also address the lack of feedback and impact assessment mechanism. Unless banks, BCs and RBI understand why a goat is more important than a bank account to a rural consumer, financial inclusion will remain a ineffective activity.
Substance that matters
My View on Rajan, FM Working As A Team: Ram Charan
I am responding in short on the video clipping by Mr Ram Charan. I had talked about the measures that need to be taken on the supply side on your blog some time ago, perhaps shortly after Dr. Raghuram Rajan had taken charge as Governor. Unfortunately in our system there is more of words than substance. It is indeed very urgent and high time that RBI/Government set up a task force to come out with the measures that need to be taken in the short, medium and long term to tackle the supply side in food and vegetables across the country in the areas of production, storage, processing,
- B K Katyal, Ex Chief General Manager
AIBEA to protest on growing NPAs and corporate borrowers' role
The All India Bank Employees' Association (AIBEA) is planning to observe December 5, 2013, as All India Day, demanding a remedy for the increasing bad loans, alleging that the alarming increase in bad loans in the Public Sector Banks (PSBs) is due to the big and corporate borrowers. The bad loans in PSBs has increased from Rs 39,000 crore in March 2008 to Rs 1,64,000 crore in March 2013 and.......
Mahila Bank to open 16 more branches in four months
.......New branches would be coming up in state capitals and Union territories. The bank intends to fulfil its obligation of meeting 25% of its branches in rural and unbanked areas from the next fiscal. Earlier this month, the bank, a pioneering initiative to empower women, was launched with a corpus of Rs 1,000 crore to function as a universal bank.........
Manning the Mahila Bank
Though men may not be allowed to take loans or avail themselves of banking services from India's first commercial public sector bankfor women, they have not been left out when it comes to employment in the bank...
Empowering women?
......... No one in the media has commented on the speed with which a new bank was set up by infusing ~1,000 crore as initial capital. What could have been the reason for this urgency? Is it the need to empower women? Or, is it the issue of balancing the gender discrimination? None of these got prioritised in decision-making. .....
Too many unanswered questions
.........Unfortunately, as in most such cases, the statement leaves more questions unanswered than answered and inevitably leads to a great deal of speculation. What is the ‘real’ reason why the Tatas, one of the most respected corporate groups in the country, has chosen to withdraw its application? After all, nothing has changed since the final guidelines for issue of bank licences were announced by the RBI; and the final guidelines were announced after months if not years of debate. The Tatas must have done a careful assessment of whether or not a bank was an appropriate ‘fit’ in the overall the group strategy before deciding to apply for a bank licence. So what explains their getting cold feet at the last minute, just weeks away from the deadline announced by the RBI governor, Raghuram Rajan, for issue of bank licences?..........
Banking licence: Tatas’ pullout points to a missing link in policy
.......The RBI has been very transparent about the terms and conditions and hence is beyond reproach. If one finds the terms agreeable, then one can come in and play. Otherwise, they can stay away. The Mahindras did not think this model would work and hence stayed away, while the Tatas exit is a call to corporates to revisit their models. Such conditions would probably allow for break-even only after 5 years, and the RBI norms already state that the promoter will have to divest after 10 years. Therefore, the promoter has to take on these risks which will be the highest in the formative years, and would probably............
Banks eye foreign shores for Basel-III capital
......... senior official from the Reserve Bank of India (RBI) said some Indian banks are looking at issuing Basel-III compliant tier-I bonds abroad. “They may raise overseas first because the environment exists. Here, nobody is very sure,” said Chandan Sinha, chief general manager, RBI. He said banks were yet to finalise a quantum. These bonds are fairly new for global investors too although there have been a few issuances. This month, Singapore-based DBS Bank tested the market with Basel-III compliant tier-I securities of SGD 800 million. The bonds were oversubscribed, indicating investor demand remains solid..............
Banks told to be more open to small businesses
.......“The scheme is not implemented in the way it was promoted in the neighbouring States such as Tamil Nadu and Karnataka. We have taken the issues related to the extension of guarantee or surety free loans to small enterprises to the Reserve Bank of India. The mindset of the bankers should change in this context,” said B.V. Rama Rao, chairman, MSEDC........
Irda may allow new recruits to join group pension
..............."Managers in the middle and the top level usually go for GPS retirement benefit as it is considered as employee-friendly. Employees opt for up to 15 per cent of the basic pay as contribution to the group pension scheme. It was earlier popular among employees in IT companies, but not any more. Companies were using group pension scheme as a perk to attract talents as they are not entitled for government pension," ...........
Finance ministry open to private sector experts for PFRDA top post
In line with the policy of manning regulatory bodies with experts, the finance ministry has sought applications from experts in the private sector and academia, apart from senior bureaucrats, for the post of chairman of Pension Fund regulatory and Development Authority (PFRDA).........
Finance Ministry to seek special dividend from profit making PSUs: report
.In the 2013-14 budget, the government has estimated to garner Rs 29,870 crore as dividend from PSUs. Further, Rs. 43,996 crore is estimated to flow in from PSU banks and Reserve Bank of India under the same head. "We have budgeted Rs. 73,866 crore. We will achieve it," the official added........
Virtual currency
.......According to the Reserve Bank of India (RBI), virtual currency can be defined as a type of unregulated digital money which is issued and usually controlled by its developers and used and accepted among the members of a specific virtual community. It also provides flexibility in terms of business model and business strategy for the..........
RBS surrenders primary dealer licence in India
.............."In view of the request received from Royal Bank of Scotland NV, India to surrender its authorisation for conducting PD business, Reserve Bank of India has cancelled the said authorisation of the bank with effect from December 2, 2013," the banking regulator said in a statement today. RBI had permitted RBS to carry out PD business in India in May, 2008. Consequent to the cancellation of authorisation, RBS will stop undertaking business as PD in government securities market.......
No urgency to include Govt bonds in global indices: Mayaram
.............“There is no target for it. It would be interesting to be on the global indices, but it is not a matter which is so urgent that it requires an immediate decision. We are deliberating on this with different parties and much of it will be done by the RBI,” Mayaram said at an annual conference on bonds by ratings agency Crisil. Recently, RBI Governor Raghuram Rajan had also pointed out the need to bring more depth to the Indian bond market.............
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