RBI eases KYC norms for Self Help Group

.........“KYC verification of all the members of SHG need not be done while opening the savings bank account of the SHG and KYC (Know Your Customer) verification of all the office bearers would suffice,”............

Read.......

Dr. Sandip - H(isto)R(y) persona lays down office today............

An institution within institution, Dr. Sandip Ghose, CGM-I-C, HRMD lays down office today. RBI PS Fraternity & VITALINFO wish him a very happy n healthy Re-Tyred life ...........

Reputational risk is the bank’s responsibility

.........It is not as though the Reserve Bank of India (RBI) has not undertaken corrective measures in the past. Other than issuing direct guidelines for combating money laundering and potential for terrorism financing, RBI has issued loan recovery, credit card and fair practices codes from time to time. Blaming the regulator for lax supervision is escapism. We do not aspire to be a nanny state. RBI, warts and all, is already an admirably stringent regulator. There is a limit to how much can be achieved by policing. For example, it is not possible for RBI or the department of financial services to oversee the safety of women in bank workplaces. However, it is critical enough to expose banks to enormous reputational risk..........

Read - Mint

Sting-less operation

After a recent meeting between bankers and the Reserve Bank of India on risk-based supervision, reporters were keen to know whether the cobrapost sting, in which officials in some banks were caught on camera offering to launder clients' black money, figured in the discussion, especially given the topic on hand. One chairman and managing director of a public sector bank quipped, "No wild animals were discussed, including cobra."

Business Standard

Banks and Liquidity Management - Dr.T.V.Gopalakrishnan

.............The mismatch in ALM is bank's own making and despite this RBI has come to their rescue in several ways which include cut in CRR and interest rate. Banks' approach to business has undergone a sea change and their dependence on borrowed funds rather than deposits can be identified as the major cause for their liquidity problems..............

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

BURA NA MANO HOLI HAI

Dear friends,

Pension updation is the subject which seems to be haunting the retired RBItes the most. Whenever retired employees, may they be in group or pair meet, the conversation invariably turns to the subject. With every passing day, desperation seems to have crept in the minds. Judges may come and judges may go, the case will still stand at the same stage. By the time the decision comes, if it comes, many of us will have retired from the life. I have a suggestion. You should leave instruction to utter the words 'pension updation case has been won' if the crow does not pick the riceball (pind) at the time of shraddha, to your relatives and I am sure the crow will fly away with the entire stock.

BURA NA MANO HOLI HAI.......

- Sharad Fadnavis, Ex-RBItes, Nagpur

Why should we unnecessarily burden the close relative with one more mantra that the 'Pension updation case has been won'? Now itself we can alienate our mind  from  pension updation and make up our mind that we will reach salvation notwithstanding the positive/negative result of the case. Anyhow good imagination! Our children who will be in a hurry to leave the country, may not even notice whether the crow has taken the pind. Why bother about that ?

- Vathsala Jayarman, Ex-RBItes, Chennai

Ex-appreciable VITALINFO.............

VITALINFO helps to keep us abreast with the developments in the shortest possible time and the service rendered by you in this regard is most appreciable. But many a time response is limited to a mere "thanks". It not intentional. In the midst of daily routines many a time there is not enough time to react in a fitting manner. Please bear with us. We are always grateful.

Thanks and regards,

C S R Nair, Ex-RBIte (via e-mail)

Finance companies violating RBI, Sebi norms

GUMLA: The financial establishments here, which were sealed on Monday, were violating directives of the Reserve Bank of India and the Securities and Exchange Board of India (Sebi).............

Read - TOI

KMSS for shutdown of all NBFCs

The Reserve Bank of India (RBI) is at present working on a plan to train the state police personnel to tackle the rising fake financial companies

............."There are hundreds of such NBFCs operating in the state. Many companies have already cheated investors of crores of rupees, shut down their operations and escaped from here. However, apart from arresting some of the officials, police have done nothing. We want the state government to take stern action to reimburse those who have lost their assets," ........

Read - TOI

Govt bank staff await entry of new private players

Manoj has been watching the business papers closely ever since the Reserve Bank of India announced giving out licences for new banks. A junior officer with State Bank of India, he sees the entry of new entities into banking will not only energise the sector but also get him a lucrative job. And, he is not alone. Many among the over seven lakh public sector bank employees are hoping to switch to new private banks..............

Read - Business Line

Banks make progress, but more challenges lie ahead

.....The villages in India are witnessing a flurry of activity, thanks to the financial inclusion initiatives of banks. Most of the banks are now busy appointing business correspondents (BC) or opening up ultra small branches in villages under the financial inclusion plan. As the new financial year, 2013-14, is round the corner, the focus on is meeting targets........

Read - HBL

FDI funds may be routed via independent accounts with banks to protect investors

..........The Reserve Bank of India is considering making it mandatory for foreigners to route foreign direct investment (FDI) into India through independent accounts with banks to ensure funds are not misused by company issuing shares. The move comes after the central bank detected that some companies were using the flexibility in the rules to retain the funds remitted by the foreign investor for as long as three months and return that later without issuing any equity...........

Read -ET

Decking up small savings

.....Small savings schemes have witnessed net withdrawals over the last two years, mainly because the returns offered were much lower than those on bank deposits and other investment avenues. The situation, however, is now set to reverse. With the RBI cutting its policy rates by 75 basis points in the last one year, banks have revised their term deposit rates by a similar degree. What is more, further deposit rate cuts of 50 basis points too appear likely over the next one year, with the pressure on banks to reduce lending rates. .....

Read - HBL

'BRICS bank could become future World Bank'

The BRICS bank, the setting up of which was approved by the group's leaders today, could become a World Bank in future due to the increasing influence of emerging countries, chairman of Goldman Sachs Asset Management said today..............

Read | Business Standard

World Bank ready to work closely with BRICS bank

............"We welcome the announcement of the establishment of a BRICS development bank and stand ready to work closely with the new bank to end poverty and build shared prosperity throughout the developing world," ..............

Read | Business Standard

Banks stare at MTM losses as bond yields surge

Banks are staring at huge mark-to-market (MTM) losses on their government bond portfolio in the fourth quarter, as yields on most liquid papers have moved up following the Reserve bank of India’s (RBI’s) hawkish tone in the mid-quarter review of its monetary policy.......

Read | Business Standard

With fiscal-end nigh, banks gasp for cash

..........“In view of the anticipated large volume of banking transactions during the annual closing of account for financial year 2012-13, the RBI, in order to facilitate smooth and non-disruptive conduct of banking operations, has decided to conduct additional liquidity operations,..........

Read - DNA

Can banks hound friends of defaulters for loan repayment?

.........Co-incidentally on the same day I saw a newspaper headline that said that India’s largest bank was all set to publish photographs of defaulters in newspapers and their own branches. This was an attempt to name and shame the “willful” defaulters into paying their over dues. In my opinion publishing of defaulters photo in newspapers is against the BCSBI code which requires that the bank respect the privacy of the borrower. This co-incidental overlapping of two separate incidents regarding collection practices by banks set me thinking............

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

Checklist before going electronic

Indian policymakers are keen to push bank depositors to write fewer cheques and make more transactions through the electronic route. The key benefit of e-payment is that transfer of funds is almost instantaneous. While the campaign is yet to kick off, we think that you should be aware of all the nuances of making e-payments before taking the plunge.........

Read - HBL

Be careful with fancy credit cards

Planning to get a new credit card? Well, if you thought you just had a silver, gold or platinum card to consider, think again. The array of the credit card types available is quite bewildering. Besides these basic cards, there are a number of specialised ones which appear to offer more value or seem more attractive.........

Read - HBL

Karur Vysya Bank will have new operation model

......“While innovation and technology adoption have helped capture the market initially, continuous improvement in branch operation model would help improve the in-branch experience,” .......

Read - HBL

FirstRand Bank eyes break-even by '14-end

.....“We are hopeful that our commercial (corporate) banking arm will break even by the end of the next fiscal. The balance sheet of our India franchise stood at $200 million as of 2012, with an asset base of $52 million,” .........

Read | Business Standard