.....Instead of the discipline of rule-based policy that Christensen would like to see, India seems to be indulging in a kind of me-too monetarism that may be overly loose. It will be interesting to watch how RBI policy evolves during the course of the year. In the meantime, Christensen is promising to write more about Indian monetary policy — and that is a good thing........
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Thursday, February 7, 2013
Subbarao seeks 200 new bank branches in State
GUWAHATI,
Feb 6 – Reserve Bank of India (RBI) Governor D Subbarao today called upon the
nationalized banks to set a target of establishing 200 new bank branches in the rural areas of
Assam during the financial year 2013-14. He was addressing the State Level
Bankers’ Committee (SLBC) meeting at the Assam Administrative Staff College
which was also attended by the heads of all the nationalized banks having branches in
Assam, the Chief Secretary and senior officers of the State government and
officers of the banks, official sources said........
CRR = 900 km metro, 25% larger economy
DFS' unique identity
.....Bidding farewell to Mittal, one of the officials said everyone now knew what DFS was, unlike a few years ago when people simply called it the “banking division” and its secretary was referred to as the “banking secretary”.
10 lakh employees to join two-day banking strike: AIBEA
.........."While the Government is so keen to bail out corporates, it has no time or intention to mitigate the sufferings of the people and working masses. Hence this strike has become necessary to express our serious concern and opposition and to demand remedial measures,"............
The growing current account risk
...........The conference call that Reserve Bank of India Governor D. Subbarao had with economists a day after the announcement of the monetary policy on 29 January offered further proof that the external situation is a major worry. Many of the questions dealt with it. Subbarao said in one of his answers that future interest rate cuts will not depend on the inflation trajectory alone. The size of the current account deficit will also be considered. That statement should temper some of the more unrealistic expectations of deep rate cuts in the coming months. Meanwhile, former RBI Governor Y.V. Reddy has put forth an intriguing idea in his forthcoming book on Indian economic policy, which was excerpted in Mint on Monday. Reddy argues that India should aim for a zero current account deficit over an economic cycle, so that India has the space to absorb shocks in bad years.........
Why RBI should go easy on bank licences
......The government is trying to push the RBI in giving out new banking licences with daily media reports on what kind of corporates can be given these licences. The fact that the government is getting involved in new bank licences at a time when its own banks are showing the worst performance in the banking sector leads to serious questions on the intentions of the government. The RBI will only give out a few licences based on merits but given the government involvement there will be raised eyebrows on why certain corporates received licences and certain corporates did not receive licenses. The RBI should hold back on bank licences until the banking sector gets back on track with balance sheets improving. The government should leave the RBI on the banking licence issue.......
RBI panel revives Manmohan Singh's 1992 idea of 'gold bank'
A Reserve Bank of India (RBI) panel has revived the proposal of setting up a gold bank, or 'Bullion Corporation of India', to reduce imports of the metal- an idea mooted over two decades ago by Manmohan Singh, the Minister of Finance at the time. "With considerable changes in policy related to gold over the past 20 years, the proposal for setting up a Bullion Corporation of India (BCI) needs to be revisited and activated," a committee, headed by K U B Rao, to study the issue of gold imports said in its final report...........
Extreme shine: Gold import restrictions an emergency step, says RBI
India's central bank, the Reserve Bank of India (RBI) said it would consider imposing value and quantity restrictions on gold imports by banks, which account for 60 percent of India's imports of the yellow metal, under extreme conditions, as the world's biggest consumer of gold battles a record high current account deficit............
Read - IE
Read - IE
RBI panel asks banks to provide gold- linked financial products
A Reserve Bank of India ( RBI) panel asked the government to design innovative financial instruments to ensure real returns and said it must take steps to curb gold imports to reduce the current account deficit ( CAD). In its report released on Wednesday, the panel headed by K. U. B. Rao, Advisor, Department of Economy and Policy Research at the RBI, proposed a slew of measures like mandatory quoting of PAN numbers for high- value purchases, restriction on gold loans and check on NBFC branches dealing with gold loans. The RBI working group on issues related to gold imports also said " under extreme circumstances", RBI may consider to stop import of gold by banks..........
PAN card must for high-value gold purchases: RBI panel
Seeking to check demand of gold, a RBI committee today proposed a slew of measures like mandatory quoting of PAN card numbers for high-value purchases, restriction on gold loans and check on NBFC branches dealing with gold loans.............
Read - IE
Read - IE
How to Reduce Gold Imports: A New Kind of Gold Bonds
.......launch of an innovative gold bond scheme coupled with bringing
transparency in the secondary market of gold trade would enable the
country to significantly reduce import of gold..........
Microfinance bodies, officials eat up 150 cr of farm loan waivers
.......TOI
had reported on January 17 that the RBI has asked all banks responsible
for the implementation of the waiver scheme to register FIRs against
bank officials and MFIs who fraudulently draw part of the benefit meant
only for individual farmers. As per the direction of the finance
ministry and the RBI, banks have started the recovery of such fraudulent
payments, starting with the accounts that have been scrutinized by the
CAG.........
NBFCs demand recovery powers, tax benefits like banks
......RBI had constituted a working group under former Deputy Governor Usha Thorat to look into the issues and concern of the NBFC sector. The group had submitted its report to RBI in August 2011. Based on the committee’s report, RBI came out with draft guidelines for the sector in January 2013. The working group had recommended that NBFCs be given benefit under Sarfaesi Act and given the tax benefits for provision. However, RBI’s draft guidelines did not mention this as it’s the government which will take a decision. During a meeting organised by industry body FIDC (Finance Industry Development Council), RBI’s Deputy Governor Anand Sinha had indicated that the central bank may take the issue to the finance ministry.
Faux fisc lift to bring banks to their knees
.......In 2011, the working group on operating procedure of monetary policy under chairmanship of RBI executive director Deepak Mohanty had suggested auctioning of government’s cash balances. The auctioning would be at the discretion of the RBI. RBI Governor D Subbarao admitted government cash balances have been higher and held for longer than their historical regime. He said that RBI has requested the government to disclose the cash balances so that everyone is on the same page.........
RBI bats for increasing financial literacy
The Reserve Bank of India (RBI) feels a lot of work is needed to be done on financial literacy in the country. “While a number of measures have and are being taken across the country, given the enormity of the task, a lot of ground still needs to be covered,” said K C Chakrabarty, Deputy Governor of RBI, while addressing the workshop on financial literacy at Nabard in Mumbai...........
RBI releases Financial Literacy Material
.......The objective of Financial Literacy material is to aid creating financial awareness and educate common people on management of money, importance of savings, advantages of saving with banks, other facilities provided by banks and benefits of borrowing from banks. This guide is a ready recknor for trainers involved in Financial Literacy and Financial Inclusion. The Financial Diary has been prepared..........
Read.........
Integrated Rural Development & Management: Shaping rural futures
......In the NER the change has been there but relatively at a slower pace. Investment flows are jacking up mainly due to larger involvement of the banks [public sector inclusive of the Regional Rural Banks and Cooperatives particularly]. Government schemes are gaining ground and subsidy-centric approach is being slowly replaced by market-oriented activity-diversification based approach. The RBI and NABARD efforts as well as the activities of other development agencies [government and non-government] are accentuating the changing process to a satisfactory extent..............
Govt mulling raising NABARD authorised capital to Rs 20,000 crore
............Besides other things, the government will also take a call on merging the post of Chairman and Managing Director in the financial institution. Following the changes, which would be carried out through amendment to the NABRAD Act, 1981, the institution will be able to introduce new credit products, forge new linkages and develop new clients. Once the changes are made in the Act, NABARD, which is the apex rural and farm development bank and whose role is to promote credit growth in these areas, would be able to undertake short term lending operations. The transfer of RBI's equity to government would end the conflict of interest between the regulator and regulated entity.
SBI Chairman to visit Guwahati
Chairman, State Bank of India, Pratip Chaudhuri will be visiting Guwahati and Nagaon on February 6 and February 7, along with the Governor of RBI, Dr D Subbarao to attend the special State Level Banker’s Committee meeting convened at the behest of the State Government at the Administrative Staff College, Khanapara in Guwahati..........
Axis Bank deploys 500 cash deposit machines
Axis Bank has deployed 500 cash deposit machines in various branches in over 300 cities across the country, said a press release issued by the bank on Wednesday. The cash deposit machines network enables customers unmatched convenience of depositing cash in real-time, with funds credited instantly to their accounts for all successful transactions without the hassles of filling lengthy deposit slips and waiting in the queue at the teller.............
Takru meets PSB chiefs
..........In his maiden meeting with PSB chiefs after taking over as Secretary of the Department of Financial Services in the Finance Ministry, Mr. Takru also took up for discussion a host of other issues such as the aspect of financial inclusion and the direct benefit transfer scheme which is operated through the banking channel.........
Basel III implementation: A new challenge for Indian banks
........ Basel III was designed to address the weaknesses of the past crisis and to make the banking sector much stronger and efficient enough to face any crisis. The major thrust area of Basel III is improvement of quantity and quality of capital of banks, with stronger supervision, risk management and disclosure standards. The new norms will definitely address the systemic loopholes in Basel II, but it will have some impact on banks.........
Read - Business Today
‘BSP netas used bank to launder cash’
......"The bank had sanctioned Rs 2 crore but as per repayment schedule, total recovery would be only Rs 30 lakh in five years and for the same loan account the bank had not followed the share linking norms," the RBI's inspection report said. When contacted, Mishra strongly refuted the charge and threatened to proceed against RBI. The BSP leader said he had taken a loan from the Indian Mercantile Bank and had mortgaged his Windsor Place property, the worth of which was more than the loan amount........
Banking for the braveheart
The book under review is by a banker with great experience in his field and academics. The testimonials in the blurb from the leading lights of the profession testify to the author’s expertise. It took me quite some time to go through the whole book; it contains many features of a technical nature not known to me despite my five decades of experience in central banking vis-Ã -vis commercial banking................
Online fraud and cash economy
Credit card frauds are on the rise. This when the Reserve Bank of India (RBI) is keen on encouraging people to use less cash and employ electronic transfers besides payment methods such as credit and debit cards. It’s easy to see why—this allows cash flow to be tracked and should make it less easy for unaccounted money to wash through the system............
Global credit card fraud: New malware behind fraud, suspect bankers
.......While RBI has done its
best to make transactions secure it cannot prevent international frauds.
Since most of the cards issued by MasterCard and Visa
are international cards they can be freely used outside the country.
The card information can also be used in online transactions because in
some countries there are e-commerce sites that conclude a transaction
without even the CVV2 number which is printed on the reverse of the
credit card.
CONTINUE MOBILE BANK
At a function in the presence of RBI officials, Tamilnad Mercantile Bank launched its mobile bank service in Tuticorin during 2008. The bank officials mobilised deposits from petty traders, housewives and workers and opened a sizeable number of savings bank accounts. Now it is understood that the mobile bank is to stop its operation from February 4, 2013. It will mean a lot of inconvenience for account holders of mobile bank to go to bank branches for transactions. It is requested that the mobile bank should continue to function as usual.
- E.S. Krishnan, Tuticorin (The Hindu)
Aircel launches ‘Mobile Money’
.........All a person has to do to transfer money from Chennai to Tirunelveli is to deposit the money with a correspondent in the former area, after which an SMS is sent to the recipient confirming the transaction details. The recipient has to merely go to a banking correspondent in their respective area to retrieve the cash. “While we sign up the retailers who wish to serve as banking or business correspondents, they go through a certification process by ICICI Bank – which puts the onus of complying with RBI regulations on them. This will work even if both parties have no ICICI bank account, with the minimum amount needed to start an account being Rs. 100,”.............
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