Inflation still high, says RBI Governor

.....Acknowledging the role of UCO Bank that has adopted Jalanga village under financial inclusion programme, Subbarao said, “After my first outreach programme here (in December 2009), UCO Bank has opened a branch which is catering to the banking needs of the entire population of Geltua gram panchayat. I’m informed that 84 SHGs have been formed at this gram panchayat. While UCO Bank’s Jalanga branch has tried all out to provide loans to the people, some are yet to avail credit." Earlier, Subbarao inaugurated the maiden ATM of UCO Bank here and also held an interactive session with a few SHGs (self-help groups). V Ramchandra Rao, Regional Director-RBI (Bhubaneswar) said, “UCO Bank opened a branch at Jalanga on January 6, 2010. The branch has extended advances of Rs 2.5 crore to 567 people. Total deposits of the bank have touched Rs 4.61 crore and 540 ATMs have been issued.”........

Read - Business Standard

RBI says will reach consensus with govt

“When there is consultation, obviously, you have to take into account the other side, its viewpoints. We will come to a mutual position and then issue (the guidelines),”

Read - BS

My view on "Silence............ tension over pension......."

Congratulations to all those who took part in the silent protest. I feel there is no better way than to protest silently. After all, as retirees, we are all senior citizens and should set standards of protest. The silver line is that the protest has been taken note of the by the Central Board. If we persist with such peaceful and effective protests, the day is not far off when our efforts will fructify. Once again Congratulations to all the participants at Guwahati.

- S. Srinivasan, Cochin (via e-mail)

New bank licence guidelines “very soon”: RBI Deputy Governor

.....Reserve Bank is likely to “very soon” come out with the final guidelines on new bank licences as its consultation with the Finance Ministry on the issue is nearing an end, Deputy Governor Anand Sinha said on Friday. He also said the RBI and the Finance Ministry will arrive at a common position on issues like allowing brokerage firms and realtors into the banking space......

Read - The Hindu

NDMA preparing norms for RBI to create codes for banks

The National Disaster Management Authority (NDMA) is in the process of preparing guidelines for the Reserve Bank of India (RBI) to create a set of codes for banks that provide home loans to ensure that only housing units that conform to prescribed safety standards can avail of loans............

Read - Mint

New hub to deposit fake currency notes

The heart of the Capital not only houses the nation’s central bank but also, ironically, the biggest piggybank of fake currency in the country, highly-placed sources said on Friday. In a first-of-its-kind initiative aimed at reducing ‘unnecessary paperwork, formal communication and toil’, the Parliament Street police station, located a stone’s throw away from the Reserve Bank of India (RBI), has now been made Delhi’s nodal collection centre for fake Indian currency notes (FICN). “Earlier, as per guidelines issued by the RBI, banks across the Capital were supposed to deposit all the fake currency notes they detected at their branches at local police stations annually,” said an officer....... 

Read - Hindustan Times

My View on "CRR = 900 km metro............."

Manohar Mahajan

It is unfortunate that despite being the head of the largest public sector bank, Shri Choudhuri talks like the accountant of a urban bank which is more interested in making money by lending money regardless of the purpose of the loan and background of the borrower. I fully agree with the views of Dr.T.V.Gopalakrishnan that earlier such executives - who do not have regards for regulatory prescriptions, leave would be better for the banking system. If the amount kept under CRR is also placed at the disposal of banks, it will go the same way as rest of the deposits have been deployed and a part of it would ultimately become NPA or written off. If something happens to the banking system as a spillover effect of international events, where the money would come from to support the banking system. CRR money acts as a cushion, injects liquidity in the banking system as and when it is needed and is an important monetary policy measure. By criticising CRR, Shri Choudhuri ,it seams , is playing more to the gallaries rather than doing any service to the Indian banking system. Perhaps, he may be having some different designs and continue to find fault with RBI’s actions so as to fulfill his ambition. 

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M.G.Warrier

Read this IMF view reported in HBL on February 7:
“..with the Fund estimating that a 10 percentage point reduction in the effective SLR likely lowering the borrowing costs for the private sector by around 100 basis points(BPS), while increasing the borrowing costs for the government by 50 bps over the medium term. IMF contends that reducing the effective SLR by 10 percentage points would reduce foreign borrowing by corporates by around four per cent in the medium term.”
I am leaving it to the readers to guess whose brief IMF is carrying. We will soon hear an echo of whatever is contained in the IMF note from the North Block despite feeble objections raised by Rakesh Mohan and Janak Raj.

Welcome RBI initiative

...........But a perusal of banks’ websites reveals that they have not followed RBI directive to make details of unclaimed funds public. A period of ten years allowed for banks to utilize unclaimed funds is too much which should be reduced to three years as is the system in case of unclaimed dividends of companies. Necessary amendment should be done in Banking Laws.

Read - Kashmir Times

Growing at five per cent

.....The Finance Ministry’s mid-year economic analysis (December 2012) sharply lowered the Economic Survey’s exaggerated estimate of 7.6 per cent to between 5.7 and 5.9 per cent but even that — as well as the usually more conservative Reserve Bank of India’s revised forecast of 5.5 per cent — look overly optimistic.......

Read - The Hindu

Don’t allow loans for gold buy: RBI tells co-op banks

......“In view of the concerns…,it is reiterated that state and central co-operative banks should not grant any advance for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold Mutual Funds,” RBI said in a notification............

Read..........

Bankers want SLR reduced if HTM bond limit is cut

Bankers have asked the Reserve Bank of India (RBI) to cut the Statutory Liquidity Ratio (SLR) limit if it also considers reducing the Held-To-Maturity (HTM) limit of banks. In a meeting of chief financial officers (CFOs) of public sector banks with RBI today, the central bank sought feedback on the idea of reducing the HTM limit. The CFOs suggested a cut in the SLR limit from the present 23 per cent, so that the impact on banks’ balance sheets was minimal. RBI has been in favour of reducing the HTM, whose upper limit is 25 per cent of SLR securities but it is traditionally aligned to the SLR ratio.......

Read - BS

Manager tells fraud victim bank helpless in face of virus attacks

......"What shocked me the most was when the manager at the bank's Malad branch told me that my debit card had been cloned after my data got compromised in a malware attack that took place in the bank," Kavathe said. "The manager was clueless when I asked him what was the guarantee my new card would not be cloned. He said the bank was unable to solve the problem of virus attacks and customers' confidential data being stolen.........

Read - TOI

'Secure systems to tackle card frauds'

Taking serious note of increasing instances of credit card frauds, the Reserve of Bank of India (RBI) said it would probe such incidents. It also asked banks to investigate such cases and take steps to plug loopholes. “We have to find out how it has happened, where it has happened and then take corrective action,” RBI Deputy Governor Anand Sinha said.

He conceded that the magnitude of the frauds is large and said the central bank would consult with other banks to deal with the situation..............

Read - BS

Int'l debit cards to blame, too

Banks are also responsible for the global credit card fraud, to some extent. Earlier, banks used to issue only ATM cards and then came ATM- cum- debit cards. Now, the option of only ATM cards has disappeared and banks are forcing account holders to have international debit cards, whether they need it or not. This international debit card can also be used in ATMs. The Reserve Bank of India should look into this matter. It must also take action against nationalised and private banks, with the exception of cooperative banks, as the former are guilty of this practice.

- Deendayal M Lulla (FPJ)

What changes in Income Tax rates would you suggest in the forthcoming Budget?

As the Union Budget for 2013-14 approaches, all individuals eagerly await to know about the one aspect that affects them most - Income Tax.

Record your comment here.........

Cabinet okays amendments to NABARD Act, 1981

........The decision of the Government to transfer the balance one percent shares to the Government of India from RBI in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI.  NABARD will combine the post of Chairman and the post of Managing Director, into one, Chairman and Managing Director to ensure a distinct line of command. ...........

Read...........

Empowering women in agriculture

...... Therefore, it is exceedingly important that we re-examine the current status of women’s empowerment in the field of farming. This is the purpose for which I introduced the Bill in the Rajya Sabha. The Bill is, however, yet to be discussed. I congratulate the author for highlighting the need for women’s empowerment in the field of agriculture.

Read - HBL