Twenty years ago, the Indian banking system was in a crisis. Reform of public sector banks was the cornerstone of the economic reforms that were unveiled then. The government and the RBI had just introduced new norms for income recognition, provisioning and capital adequacy for Indian banks in line with international norms. It was a reality check for banks and they failed it badly. Till then they had been run in a manner completely at variance with sound prudential norms. The focus was only on...........
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Thursday, February 28, 2013
It’s not prudential to bank on discretion
.....For example, under “Procedures of RBI Decisions” the guidelines state, “Licenses shall be issued on a very selective basis to those who conform to the above requirements, who have an impeccable track record and who are likely to conform to the best international and domestic standards of customer service and efficiency.” There is no qualification of how “impeccable track record” will be determined or how “best international and domestic standards of customer service and efficiency” is defined........
RBI giving awareness to security personnel on FICN
SHILLONG, Feb 27: The Reserve Bank of India (RBI) is constantly giving classes and awareness to the security personnel deployed in vulnerable places where the marketing of Fake Indian Currency Note (FICN) is taking place, informed GM (O-in-C), RBI, P Shyam Sunder, here on Wednesday. Speaking to reporters, Sunder said, “RBI’s role in keeping a check on the floating of FICN in the market is the first line of defense.”...........
Coin scarcity due to people’s habit
SHILLONG, Feb 27: Holding of smaller denomination of coins by the people has led to the extinction of small coins from the state, claimed P Shyam Sunder, GM (O-in-C), RBI, here on Wednesday. Speaking to reporters, Sunder said that scarcity of smaller coins in the state has no doubt haunted the state.........
Rupee Coop Bank to propose relaxation in withdrawal limit
.........."Many pensioners, small
and medium business enterprises and charitable institutions are
suffering because of the restrictions on withdrawal imposed by the Reserve Bank of India
(RBI). We will draft a proposal recommending increase in the limit from
Rs 1,000 per day per person per account to Rs 5,000 for pensioners and
people under medical treatment. The limit can be increased to Rs 1 lakh
for charitable institutions."..............
Constable on duty at RBI office shoots himself
CHENNAI: A Chennai city police constable attached to the armed reserve wing shot himself with the government supplied weapon in his possession on the Reserve Bank of India (RBI) campus here on Wednesday evening. The bullet pierced his chest, and he is being treated in a hospital, police said. Mahendra Perumal, 26, from Ramanathapuram, was assigned guard duty on the RBI campus. Around 5.40pm, he pulled the trigger of his self loading rifle. His colleagues found him bleeding from the left side of the chest..........
Gem of a person looses fight with cancer..........
We are grief-striken to inform
that the former President of the Reserve Bank Retired Employees
Association Chandigarh and Ex-General Manager, Sushil Kumar, who was suffering from cancer for
the last 2 years, is no more. The cremation took place at 3.00 PM on 27-2-2013 at Ram Bag Cremation Ground, Kharar.
- R.K.Pahuja
Deeply aggrieved to know about sad demise of Shri Sushil Kumar. I worked
with him at Chandigarh in early nineties. He was gem of a person.
- Baldev Raj Chopra
We
the members of EXRBITES pay our heartfelt tribute to Shri Sushil Kumar ji and pray to God to grant eternal peace to his soul and give
courage to family to bear this loss. For the last 2 years he was
putting up a brave fight with cancer. You may recall that many of you
had sent "Get well soon" good wishes to him in response to my mail date
19th September, 2011 when he underwent a operation at New Delhi. A few times I met him I was surprised to see his
confidence. It was beyond my capacity to imagine how a person who knows
that he is suffering from such a life threatening disease still could
talk with so much cool. Such was his will power. Ultimately he bid final
farewell to us all today morning. May his soul rest in peace for ever. He
retired as GM from Chandigarh office on 31st July,1999. He was
Ex-President of Reserve Bank Retired Employees
Association. EXRBITES is indebted to him for giving full
support in giving shape to the Group. He was a very cordial man and
ready to help any one in case of need. He is survived by his son Sh
Aseem Kumar Sharma.
grief stricken
- Madan Gauria
Pai, Ramanathan, NRN: Will diverse applications change Indian banking?
........The entry of finance professionals is bound to make the banking sector interesting since it will also usher in new wave of technical know-how...............
In public interest
...... There are enough grounds, then, to be cautious in granting bank licences to entities primarily engaged in real estate or broking, if only to prevent the prospect of depositors’ monies being funnelled into these businesses. If the RBI, in the light of the feedback received on its draft norms, felt that the denial of banking licences to those in real estate or broking business would be unfair, it would have been perfectly in order for it to delete it altogether.........
The anatomy of regulatory independence
Since, barring the Reserve Bank of India (RBI), financial sector regulators in India came in later than those in developed markets, the debate on independence here started somewhere in the mid-2000s, with the intelligentsia generally supporting it. However, the global tide turned sharply in the aftermath of the 2008-09 crisis, after which the very same autonomy was vilified..........
Empowering the poor through mobiles
.....While deeply intertwined to e-governance, it has emerged as a separate domain aimed specifically at addressing the digital divide in access to government services and programmes. However, by themselves, they cannot be effective in development or governance. To make them act as catalysts in this process, policies need to be in place to support access to information, development of relevant content and services in the local languages, an enabling infrastructure, and an effective awareness and communication campaign aimed at the end users. Recent initiatives by the RBI for mobile based financial inclusion and by the Department of Electronics and IT to make mobile based provisioning of government services mandatory by all government departments and agencies offer great hope to achieve this vision.
Dip in inflation makes case for rate cut
With wholesale price inflation moderating and the government's fiscal situation expected to improve, there is room for further interest rate cuts by the Reserve Bank of India (RBI), according to the Economic Survey released today. "There has been some moderation in inflation in the third quarter (October-December) of 2012-13 and with the expected fiscal consolidation, the current macroeconomic situation creates room for a somewhat accommodative monetary policy," said the Survey.............
Super-rich tax? Redo the I-T slabs first
.....The number of income brackets may be kept at seven. In other countries, it varies from four to nine. The Gini coefficient that measures inequality - one representing maximum inequality and zero the minimum - would swing towards one if there are fewer income brackets causing greater inequality. Also, keeping the number of income brackets low would make the progression from minimum to maximum steep, and encourage the people make all efforts to keep the income within the lower income bracket to avoid tax. Having too many income brackets, on the other hand, would render it complex for calculation........
Fruitful decision
....... As an official explained, the tall, fruit-producing mango tree would signify that the CPC's efforts would also produce good results. Neem, on the other hand, has many medicinal values and just like income tax, it is a bitter pill that has to be taken.
Farmers as capitalists
......supporting agencies such as the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (Nabard) are yet to frame detailed guidelines for bank lending to such organizations. It is worthwhile to keep in mind that bank lending to self-help groups grew phenomenally in the 1990s only after RBI and Nabard jointly framed guidelines for such groups, and prodded banks to step up group lending..........
Rao committee: A halo for gold loan NBFCs
The release of Reserve Bank of India's (RBI) KUB Rao committee report on gold has brought a breath of fresh air. The awareness of gold loans had grown well beyond the south and gold loan
players, especially the biggies, have been growing at a brisk pace. The
RBI had some concerns, which it laid down with a slew of measures it
deemed fit. While these were more of hygiene factors, what
followed was a dialogue between the gold loan players and the regulator
to explain the business model, risk management
measures, the role the sector played in financial inclusion and the
sector's efforts to address customers, who even today are being
exploited by moneylenders and pawnbrokers. The Rao committee's
recommendations reiterate this and articulate a perfect mix of what it
feels about the sector and what it is expected to do going forward...........
Wanted: Budget With Equitable Burden Sharing - S.S.Tarapore
....Implementing the main recommendations of the RBI Report of the Working Group on Gold would be a strong signal. The setting up of the Gold Corporation of India (Gold Bank) and specific measures to activate idle gold hoards would reduce gold imports. Any further increase in the gold import duty will result in illicit imports.................
RRB employees to observe dharna tomorrow
......A large number of officers and employees from all the five Grameena Banks in the state would take part in the agitation to be held from 1030 hours, a press release from Andhra Pradesh Regional Rural Banks Employees Association here said. CPM State Unit Secreatry B V Raghavulu will inaugurate the Dharna and leaders from the Association of RBI, NABARD, Commercial Banks and RRBs should participate in the programme.....
RBI says economy not sole reason for mounting bad loans
....“We have to arrest the trend (of rising NPAs),” RBI Deputy Governor Anand Sinha said in his keynote address at the Mint Annual Banking Conclave in Mumbai on Wednesday. “This is a concern but it is not a systemic risk, it needs to be monitored.” Banks need to tighten their credit monitoring mechanisms and use the debt-restructuring facility to support stressed borrowers, Sinha said..........
The Reserve Bank of India is taking quite a gamble with India’s economic future
.......I have two thoughts for you. Firstly we may be entering a new paradigm where emerging and expanding economies have a different set of rules to the mature ones but can they be this different? Secondly if you add in the promises of further action the RBI has taken quite a gamble here but if it fails it will be the Indian population who will feel the pain.
Read...............
Read...............
Clear regulatory hurdles: Survey
......“The government is committed to fiscal consolidation. This, along with demand compression and augmented agricultural production, should lead to lower inflation, giving the RBI the requisite flexibility to reduce policy rates,”.......
Union Budget 2013: Survey indicates scope for RBI to ease more, says Pan
.....It is underpinned on the fact that we should be seeing lot more monetary easing from the Reserve Bank of India (RBI) as it clearly says that there is adequate scope for the RBI now to act. It also underpins on the fact that we are looking at a fiscal consolidation. Unfortunately what we may be missing out immediately is that there is definitely a challenge in terms of investments picking up because the visibility of demand globally, as well as in India .......
The Survey’s tired stories
.....The report’s view that the stimulus fed inflation is another back-handed self-compliment to its growth-generating abilities. Inflation had already hit the economy during the high growth period and interest rates had begun climbing during Y. V. Reddy’s term at the RBI......
Economic Survey reaffirms RBI view on GDP growth rate: BJP
......"The Economic Survey has said the GDP growth rate is 5%. This is a matter of serious concern. It brings us close to reality as when the RBI had said growth would be at 5% the government had questioned its veracity. The Survey reaffirms the RBI view,".........
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