Eurozone crisis may be over by Sept: Subbarao

........The RBI Governor, a 1972 batch IAS officer, said, "I was appointed Governor on September 5, 2008 and two weeks later the Lehman Brothers collapsed ... So there was an association with Subbarao becoming the Governor and the world economic crisis." Subbarao further said, "So my term was initially for three years. So people thought when my term will be over, the crisis will be over because there was a co-relation between Subbarao and financial crisis." And then in August 2011, he said the government renewed his term for two more years. "And two days after that Eurozone crisis happened. So again it established a co-relation. So, that is why eurozone crisis and the global crisis will be over when my term comes to an end," he said..........

Read | Business Standard

5-6 pc growth not sufficient: RBI Governor

........"If we do the right things, we can get back on the track of the double digit growth,"...........

Read - ET

Market sees RBI cutting rates 50 bps by Sep

The governments seriousness about narrowing its fiscal deficit, coupled with the weak gross domestic product (GDP) numbers, might prompt the Reserve Bank of India (RBI) to cut interest rate later this month, market participants said. With GDP growth slowing to 4.5 per cent in the third quarter and Finance Minister P Chidambaram pegging fiscal deficit at 4.8 per cent of GDP in 2013-14, after 5.2 per cent this year, the Street expects RBI to cut repo rate 50 bps, in two tranches, before the end of the first half of 2013-14 the first, of 25 bps, on March 19...........

Read | Business Standard

Workshop on foreign exchange issues on Mar 4

BHOPAL: Reserve Bank of India (RBI), Bhopal will organize a workshop on Foreign Exchange Management Act, (FEMA) on March 4, at Samanvay Bhawan in Apex bank premises. RBI Deputy Governor, HR Khan will chair the interactive sessions, an RBI release said on Saturday..........

Read - TOI

Luncheon meet with Dr.Sandip

'Farewell' to 'Welfare' persona

It is now known to all that Dr.Sandip Ghose, CGM-I-C, HRMD will be saying goodbye to RBI this month end.  On a Re-Tyring mode, he will take over as Director, National Institute of Securities Market - NISM (An educational initiative by SEBI).  Normally, farewell is given on or after retirement.  

But, always on its toes, RBI PS Fraternity thought it fit to jump ahead and be the first to get him for the 'Farewell'. A true Friend, Philosopher and Guide to the PS Fraternity, Dr Sandip accepted the invitation of a Luncheon Meet, which was organised on Sunday, the 3rd March 2013 at Kharghar Quarters Community Hall, Navi Mumbai.  

A sporting woman supporting the successful Sandip - Smt. Jayanti's presence at the Meet was notable. S/Shri Shekhar Bhatnagar, Officer-in-Charge, Belapur - Navi Mumbai Office and Bazil Shaikh, Chief General Manager & Secretary, Secretary's Department joined the Meet. Speaking on the occasion, they praised Sandip.  

Among others who attended the Meet, Re-Tyred colleagues S/Shri R.Sridharan, Raghu Gujar and Smt Rita Fernandes were also seen.  Shri Pawan Kumar took a flight from Delhi not to miss the   'farewell bus'. R.Sridharan and Mangesh Tarambale spoke on the occasion. Smt Jayashree Ramnath expressed herself by singing a hindi song. Dr. Sandip delivered a very thought provoking speech but became emotional while interacting with the PSs. He was given a memento by the PS Fraternity.

Shri Surendrababu Pillai compered the programme in a professional way. S/Shri Anand Amin, Kiran Mahadik, Narendra Keni, Vilas Sawant and Arun Raut had taken all the pains for the "Meeting Point" and "Eating Joint". Amar Pahujani captured' the golden moments.

The "Brand Sandip" will always be close to the heart of the PS Fraternity !!!

- Mangesh Tarambale

(Photo courtsey : Amar Pahujani)

RBI dy guvs extension

The recent notification of Anand Sinhas extension of appointment clearly states: Shri Anand Sinha... appointed as deputy governor, Reserve Bank of India... for a period up to 28.02.2013, is hereby continued as deputy governor, Reserve Bank of India until 18.01.2014 when he completes the tenure of three years from the date on which he assumed office, i.e. 19.01.2011. This makes it clear that the extension of Sinhas appointment is consistent with government guidelines, and there was no special dispensation.

Alpana Killawala

Chief General Manager

Department of Communication

Reserve Bank of India, Mumbai

Read | Business Standard

How the govt chooses PSU bank CEOs

How does the government of India, majority owner of public sector banks that roughly account for 70% of the banking industry and a key growth driver in the world’s 10th largest economy, choose the chief executives of such banks? A peek into the board room at the Reserve Bank of India’s (RBI) regional office on Delhi’s Parliament Street on 11 February would have given you an idea..........

Read - Mint

The philosophy of financial inclusion and rural credit - DR. N. A. MUJUMDAR

.....It has now been realised that physical reach is only the beginning of the process of financial inclusion, which cannot be reduced to mere tokenism. The focus should now be on multiplying the number and volume of transactions in these accounts. The Reserve Bank of India ( RBI) has now addressed the issue of giving a qualitative content to the concept of financial inclusion. Banks have been advised to offer a minimum of four basic products to these customers: a basic savings bank deposit account with emergency credit facility like overdraft; a remittance product for electronic benefit transfer, a savings product like a recurring deposit and a facility for entrepreneurial credit, like general credit or ' Kisan Card.' We are thus taking the process of financial inclusion a step further......

Read - FPJ

A quiet focus on financial sector

......In the present Indian context, supervision of financial conglomerates is a big issue. The latest guidelines issued by the Reserve Bank of India (RBI) for licensing new banks have drawn attention to it in a big way. Since India is fast integrating with the rest of the world, it is necessary to keep an informed watch on the competitiveness of Indian financial sector.......

Read - The Hindu

Bank jobs are now in big demand

.....According to Jyothi Ghosh, Chief General Manager, State Bank of Hyderabad, a candidate from Harvard attended the interview but was not selected because the bank felt he was ‘overqualified’ and would definitely leave at the first good offer. This could point to two trends.....

Read - HBL

RBI puts Surat bank under directions

......Surat Nagrik Sahkari Bank managing director Samir Patchigar told TOI, "We are shocked with the RBI's decision. We got a one-page letter saying the bank was under directions and no reasons were given by the RBI." Patchigar said the bank was awaiting approval from RBI headquarters in Mumbai for its merger with Mehsana Urban Cooperative Bank. RBI Ahmedabad had already cleared the merger proposal............

Read - TOI

Five changes you need to know about your credit/debit cards

.......In fact, the day the country’s Finance Minister gave his budget speech, the RBI silently put in place its guidelines for banks for risk mitigation for electronic payments, which includes cards as well as net banking transactions. Here’s a quick list of what to expect, and the change you should know about the same............

Read..........

Dont just pay tax; file return as well

With March 31 approaching, its time to check whether you have fulfilled all the tax-filing commitments. The important deadlines to remember are March 15 (the last date for paying advance tax), March 31 (for investing in tax-saving instruments), and July 31 (for filing tax returns). In case you miss the date, you can file the return before March 31, 2014. But you will be charged a penalty of 1 per cent of the taxable amount, for every month of delay...................

Read | Business Standard

Senior citizens feel the pinch as banks reduce extra interest on fixed deposits

.....Public sector banks have started cutting the additional interest (or premium) they pay on fixed deposits of these citizens. The move may have been prompted by the Finance Minister’s observation at a meeting with public sector bank chiefs in November that the additional interest for senior citizens may be reasonable but not excessive, say bankers........

Read - HBL

Banks in Delhi flout RBI rules, demand both ID, address proof

Despite the clear directions of Reserve Bank of India (RBI) to accept one document for both identity and address proof if it bears address of the applicant and accept only self declaration to transfer account from one branch to another, the banks in Delhi and NCR insist on separate documents for identity and address proof. Further, self declaration of address frowned upon by the banks.......

Read.........

Ministers sore with bankers on loans to private dairies

.....Upset with officials from public sector banks and the National Bank for Agriculture and Rural Development in the district encouraging private dairies at the cost of the state government's “Jeevan Kranti” scheme, Municipal Administration Minister M Mahidhar Reddy suggested to the chair to adopt a resolution. Ongole MP M.Srinivasulu Reddy said he would take up the matter with Union Finance Minister P.Chidambaram and also RBI officials......

Read - The Hindu

Banks in race to woo depositors

.....Many public sector banks have already launched their tax saving deposit schemes targeting these investors. State Bank of India has advertised its deposits scheme with a 5-year tenor offering 16.64 per cent effective annual yield in general and as much as 17.39 per cent for senior citizens. It has calculated these returns for investors in the higher tax bracket of 30 per cent and the rate of interest at 8.50 per cent for general investors and 9 per cent  for senior citizens......

Read - The Hindu

IndiGo seeks RBI nod for $849 mn aircraft acquisition loan

...........Indicating a change of strategy,  IndiGo has made an application to RBI to raise funds through external commercial borrowing route. Information on the RBI website reveals that the loan will be used for "import of capital goods'' and will be for term of 14 years. IndiGo did not respond to an email on the issue. Analysts see the airline's move to approach RBI as prudent............

Read | Business Standard

New bank aspirants roping in former top brass as independent directors

Former public sector bank chiefs and executive directors may find themselves in the thick of things as the Reserve Bank of India (RBI) wants private sector banks which will be set up in the future to have majority of independent directors on their board. In view of this, veteran bankers who have helmed public sector banks are seen as being pre-eminently placed to take up the responsibility, say analysts......

Read - HBL

New bank licences: the meaning of inclusion

.................The second phase in which two banks were licensed did not change fundamentals. RBI’s policy guidelines indicate that the learning from the earlier experiences informs them, but they don’t contain game-changing conditionalities. What is the strategy of RBI on regional, sectoral and aggregation disparity? Will any of the new players come out with a business plan that will appeal to RBI on this count? Is there a game-changer applicant lurking out there? It will be interesting to watch this space.

Read - Mint

My View on "Do we need more banks or bigger banks?"

Yes, we need more banks, but sound ones. RBI should take care of each weak banks and make them strong by giving proper medicines and cure to reform them. Just dissolving and or closing the weak banks is not the solution. In such cases, some experts be appointed and rehabilitate the weak banks as builders do redevelopment of the old ones. I hope RBI Management may come up with stringent measures to rehabilitate the directives issues to some of the Co-op banks which are now a days dissolving more and more. Alternatively, no licences be issued to such coop. banks in future. Make them alert from time to time, highlight to the customers who are not knowing the dissolution of a coop. bank, Suddenly one sweet morning these coop. banks are closed and customers moneys are blocked which they have invested for their daily bread. Before closing any coop. banks, RBI shd publish well in advance in order to make customers alert to take their money out from the Bank, which are their daily need for bread. pl look into this matter seriously and take appropriate step in the interest of customers who have invested in such weak coop. banks. customers are not qualified like Bank Managers. Education is meant for spreading and not looting the customers. 

- Krishnan Swaminathan, Ex Private Secretary

The New Normal

The Budget is built on the assumption of a nominal GDP growth rate of 13.4% with an underlying inflation of 6.5%. Is it the new normal for inflation against 5%, held as the “tolerable” rate for more than two decades? Would RBI adopt this as its assumption for monetary policy in 2013-14? If it has a different take on the subject, would it not result in a disconnect in the coordination of fiscal and monetary policies?


- A SESHAN (ET)

My View on High dividend pressure on Reserve Bank of India"

Govt can demand the dividend from RBI and it generally obliges also. But the fact that RBI has failed to take care of its own pensioners whose conditions are going from bad to worse and whose requirements can be met with a few lakhs or crores are being ignored by the Govt and the Bank, does not stand justice or logic or reasoning. Time FM and the Governor see the pathetic conditions of retirees of the Mighty Organisation and open their eyes.The issue is  unfortunately pending to satisfy the EGO of some officials at some level.

- Dr.T.V.Gopalakrishnan

For brevity and clarity, let me quote from my own comments on need to augment RBI's reserves and thereby strengthen the central bank's balance sheet recorded in August 2012 in the context of higher transfer of 'surplus' by RBI to GOI:

"To ensure that temptations of government emanating from external compulsions do not dilute the strength of RBI’s balance sheet, GOI should take measures to augment the share capital of RBI after carrying out appropriate amendments to RBI Act. Till such time RBI should be allowed to retain surplus income by transfer to reserves. Considering the size of its balance sheet and the internal and external pressures on its income generating capabilities, as also the nature of shocks the Bank has to absorb from time to time, the central bank’s reserves need to be augmented on an ongoing basis.

 - M.G.Warrier

Finance ministry may not get the desired dividend from Reserve Bank of India, PSU banks

....“A huge rise in transfer of profit from the Reserve Bank as well as public sector banks to the government is possible,” says Jahangir Aziz, economist at JPMorgan Chase. “But it would depend on how much bonds the government will issue and how much of these will be picked up by the RBI and the banks. The income here is an outcome of financial engineering by the government and not on account of increase in productive activity in the economy.”.........

Read - ET

Here is Pune’s all women bank

The Board is constituted as per Reserve Bank of India guidelines and consists of experienced Bankers, Chartered Accountants, Lawyers, Tax Practitioners, Economists, Entrepreneurs etc.

.........The bank, founded by eminent charted accountant Vivek Dadhe and his wife Meenakshi Dadhe, is fully managed by women - everyone, right from members of the board of directors to class IV employees are all women. Started initially to help economically backward women escape the clutches of private moneylenders by offering loans at affordable interest rates, the bank has truly brought many of these women into mainstream banking. Besides, making women financially independent, Bhagini Nivedita has financed many industrialists as well.......

Read - Sakal Times

Women-run PSU bank may face HR challenges

.....The Khandelwal committee, which was set up to address the human resource challenges of state-owned banks, while acknowledging the manpower shortage banks are facing had observed that over the next few years, 80 per cent of general managers, 65 per cent of deputy general managers, 58 per cent of assistant general managers and 44 per cent of chief managers would be retiring. The Reserve Bank of India has termed 2010 to 2020 as the ‘decade of retirement’......

Read | Business Standard

Chidambaram banks on Sewa’s idea

.......... “It is a bold and strong step in the direction of financial inclusion. You have to invest in women for a stable society and sustainable development. The move will help in asset ownership of women, having bank accounts and bank balance. I have always believed that assets are safer in women’s hand,” ........

Read - The Daily Bhaskar

No case for a women's bank

......Why do we need a public sector bank for women? There are already co-operative banks, such as Mann Deshi Mahila Sahakari Bank in Maharashtra and Mahila Sewa Co-operative Bank in Gujarat, doing just what Chidambaram stated. A co-operative bank is any day better placed to play this role than a commercial bank, given the much stiffer competition for the latter to both get deposits and give loans. The government can easily achieve its objective of encouraging women entrepreneurs through the 26 existing public sector banks, which have branches across the country. State Bank of India, the country's largest bank, alone has over 14,000 branches. .....

Read - Business Today

All-women bank to start ops from November: Chidambaram

......."It will be inaugurated in November. Initially we should start with at least one branch in each major region of this country, South, West, East, Centre, North and the North-east. So that will mean immediately we should start with six branches,...........

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

Bank for women

.....Ideally, the bank should cultivate entrepreneurship and not remain a regular bank giving loans. It would be better to bring in a development leader to head the bank for infusing new energy and set it up on a totally different platform. A PSB hand heading the bank would render it just another PSB.......

Read - The Hindu

Thanks for the bank FM, but what about jobs?

Despite the recent hype, one of the key drivers of women's empowerment — jobs for women — remains neglected and forgotten by policymakers. A recently released survey shows that more women are remaining home-bound doing domestic duties than a decade ago, even though a large number of them are willing to work. These are some of the findings of a report.........

Read - TOI 

Budget for women: They need real help not gender apartheid

...........The second initiative is India’s first women’s bank, with a Rs 1,000 crore capital, staffed predominantly by women for a mainly female clientele. The existing system, despite having a number of women in command positions, has not been very women-friendly, even in urban areas. Go into villages, and you will see this compounded, many times over. Women don’t get loans because their husbands have defaulted. There is harassment, financial jargon, and general lack of service. Lack of literacy, and financial literacy, keeps women from accessing credit. These issues exist and are very real. But, is the solution to get the existing banking system to treat women as a priority sector, incentivise the opening of women-only branches, women-only officers in existing branches to serve women entering the banking system for the first time — or is it dealing with women as ‘separate but equal’? A sort of gender apartheid.........

Read - DNA