Jaipur: BJP Rajasthan president Vasundhara Raje on Monday demanded apology from RBI Governor D Subbarao for his comment on the rise in food inflation. The RBI Governor by saying that rural people's shift to protein and eating more of egg, milk and fruits is causing food inflation is an insult of the poor, she said. Subbarao should visit Rajasthan to see the ground reality she said. "He should come and see that how tribals are living," ........
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Tuesday, April 9, 2013
Implementation of RBI guidelines key for financial inclusion
Financial inclusion is a journey which the Indian banking industry has started. Like any other journey, this one too is fraught with challenges and limitations, and needs a roadmap to achieve its goal. Deepak Singhal, Regional Director, Reserve Bank of India, discussed this and more in an exclusive interaction with SupportBiz.............
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Ex-bankers get million-dollar offers
.....“Companies have begun identifying personnel for key roles. Given that hiring is a six-to-nine month process, most institutions have paid headhunters to identify available talent. While the packages offered by the new players might not be drastically different, stock options will make their offers financially attractive,”.......
Retired bankers in demand as India Inc looks for licence
.....It’s not only commercial bankers who are sought. Former central bankers are also in high demand — former central banker A K Khound, who retired from RBI as Chief General Manager of the Banking Operations and Development Department, which drafted the licensing norms, will share his knowledge with Aditya Birla Financial Services.........
Women-only Bank in India: Worth it?
........However, when I went deep into the subject-matter, I realized that the whole exercise might go futile and was not required in the first place. It is basically in rural and semi-urban areas where women need to be drawn to the Banking system. For this, creating an altogether new Bank from scratch may not serve the very purpose. Secondly, there might be security and safety issues in case even guards deployed at branches are females, as such branches can become vulnerable to robberies. Thirdly, women-only Bank might not turn out to be a profitable business proposition as the business prospects from women (most of whom are not earning) shall be limited............
Is the Mahila Bank a good idea?
......Targeting women as primary customers and employees of a bank to be promoted by the government is a rare combination of good economics and good politics. The Government of India is in the business of banking; its pre-eminent position being challenged recently. In the backdrop of the upcoming election and lack of ability to fund welfare programmes, the Mahila Bank announcement creates the feel-good factor, and can yet be a profitable idea.........
My View on "Reserve Bank of India's powers not to be clipped: ..."
It is little discomforting to comment on the personal views of an eminent Justice on an issue which he had opportunity to examine threadbare. But here, one is compelled to clarify certain misconceptions which are being conveyed to the media. One, Reserve Bank of India all along has been functioning within the mandated contours of responsibility and whenever central bank’s autonomy has surfaced as a contentious issue, it has happened when North Block has attempted to manipulate RBI’s perceptions by pre-emptive tactics through media or otherwise. It is public knowledge that GOI-RBI consultations are an ongoing process and these have never been dependent on the incumbent holding the position of RBI Governor. Recent years have seen RBI working with maximum transparency in policy formulation and implementation. Discussion papers on policy issues, draft guidelines on regulatory measures are notified to invite comments of stake-holders. Just as judiciary cannot function the same way as legislatures function, financial sector regulators may not be able to go by ‘majority vote’ on each issue.
- M.G.Warrier
Co-operative bank crisis may hit vote politics
......In a meeting with the National Bank for Agricultural and Rural Development (Nabard) last week, the government took stock of the situation. "We have told them that it is an issue between the state government and the Bank. We don't have a role in it. The state government also wanted to know whether the bank needs any capital infusion to meet the required 4% capital adequacy norms of the Reserve Bank of India," said S Padmanabhan, Nabard's chief general manager........
Economists for bank rate cut but agree CAD a larger problem
The Reserve Bank of India brass today met the economists of several banks, as part of the exercise before the annual review, on May 3, of monetary policy. Several, it appears, favoured a rate cut to re-start the investment cycle..........
Economists bat for rate cuts to boost growth
........Economists' views come more or less in contradiction with the bankers' view who wanted the governor to cut CRR and not repo rate saying given the high cost of deposits a repo cut would not help them cut their lending rates.........
Inclusive Monetary Fund
........The IMF makes the comment in a conference call in its paper, Jobs and Growth: Analytical and operational considerations for the Fund, released last week. Deputy Director of IMF Kalpana Kochhar discussing the paper said "considering issues of job creation and inclusive growth will become a standard element of the IMF's surveillance".........
Another scandal to ride through
..........Responding to queries, Finance Minister P Chidambaram said, “Inquiries have been put in motion in respect of the names that have been exposed.” Such pronouncements were made by government spokesmen after information about secret bank accounts of Indians in Switzerland and Liechtenstein came to light but they did not lead to any action. Opening offshore accounts is not a crime but their structures are designed to conceal actual ownership and they are often used for illegal purposes like tax evasion. Interestingly, almost all the Indian accounts uncovered by ICIJ were opened during the economic boom of the last decade.........
Raiffeisen Bank International CEO Herbert Stepic returns 2 million euro in pay
..."The amount to be repaid was set at 2 million euros, and I complied with that decision with conviction and transferred the amount to RBI," he said. "I consider this step as a moral obligation towards both the organisation, for which I have been working with great commitment for more than 40 years, as well as its staff members," he said, calling the repayment "my personal contribution to the rigorous cost saving measures" at the bank............
RBI to release Rs 10 bank note bearing rupee symbol
.....The note will also bear the signature of RBI Governor Dr D Subbarao and the year of printing '2013' printed on the obverse side, a RBI release said...........
Three independent members quit Sahara boards
Amid a fierce regulatory battle with capital markets watchdog Sebi, diversified conglomerate Sahara group has seen three independent members exiting from the boards of its various companies. Those having relinquished their association with Sahara group include RBI's former Deputy Governor Amitabha Ghosh, retired Supreme Court judge S Mohan and New India Assurance Company's former Chairman AC Mukherjee...........
Banks may need more time to replace debit, credit cards
........“Some banks may find it difficult to meet the deadline. The task involved is enormous, banks have to develop a new platform, test it thoroughly, create new chip-based cards and segregate cards that have been used overseas. In some banks, this process has just started and it will be difficult for them to meet the deadline,” ........
BJP may support RBI’s guidelines for new banks
......Party treasurer and member of Rajya Sabha, Piyush Goyal, had demanded that the Centre should not discriminate against certain sectors of the economy. He had urged the Government and the RBI to look at all sectors with an open mind, while objecting to the provision in the draft guidelines that prohibit companies with 10 per cent stake in real estate from starting a bank. “We are happy that the final guidelines do not have such restrictions. You cannot put restrictions artificially,” Goyal told Business Line. He said draft guidelines reminded the era of licence raj........
IDBI Bank’s fee income from govt biz doubles in FY13
......“We are proactively encouraging our customers to pay their taxes through us. This is part of our cross-sell activity. “We want to leverage our technology as much as possible to facilitate e-payments to the Central and State Governments. Even non-IDBI customers can pay their taxes through us.” Government business presents two-fold advantage for banks. While banks earn fee income, the funds collected also improve their overall low-cost CASA (current account, savings account) deposits, albeit only for a day. “Any banking relationship is not just an asset relationship. It has to be seen holistically as asset plus liability plus whatever other cross-sell opportunities that a commercial bank can tap,”.......
NBFCs under lens for margin funding
.....The real problem arises when stocks actually fall. When prices tank in a short-time, NBFCs which have funded investors are forced to sell to recover the money financed.” “This accentuates the fall in stock prices, resulting in near-collapse of some stock.” These days, margin sales by NBFCs are causing frequent cases of instability in the market. At present, deposit-taking NBFCs are regulated by the Reserve Bank of India (RBI), and as far as the non-deposit taking NBFCs are concerned, it is a grey area,......
Foreign banks to slow down in India as RBI imposes stiffer rules on lending to priority sectors
.........The new rules take effect in five years. "The regulations are saying we have to go to 40% in five years, while our balance sheets are doubling. We don't think it is either sensible or achievable," ..........
RBI 'uneasy' at sovereign bond offer to foreign investors
.....“In a recent interaction, the central bank had communicated its discomfort in issuing sovereign bonds. It has been observed in the past that small trigger can create volatility in the bond market,” said a senior from a foreign bank. The Reserve Bank of India manages the government’s borrowing programme, ensuring it is conducted smoothly.......
Indian banks going nowhere: Jefferies
......“Over the next 12 months, we believe the fundamentals of the domestic banking sector are unlikely to change much, with tepid loan and deposit growth, range-bound NIMs and weak asset quality,......
Finmin aims to halve net bad loans of PSBs
......."Each bank is in a different situation. Though the guidelines will be issued for all banks, there can be some relaxation on implementation for some banks under exceptional circumstances,".............
Mamata to seek moratorium on interest paid by State Govt
.........“The Centre is taking away Rs 40,000 crore as interest, more than the revenue earned by the State, every year. The Reserve Bank of India is cutting the money unilaterally. We are going to meet Prime Minister and Finance Minister,” .............
India Mortgage Guarantee Corporation to commence operations soon
India Mortgage Guarantee Corporation, a joint venture between the National Housing Board (NHB), Genworth Financial, Asian Development Bank and the International Finance Corporation is expected to commence operations soon. "We have applied for a license to the Reserve Bank of India which is expected to come in soon," RV Verma, chairman and managing director, National Housing Bank said...........
Rising NPAs, a major concern for financing infra projects: bankers
.....Growing non-performing assets (NPAs) is a major hurdle for providing more finances to infrastructure projects, bankers told Finance Minister P. Chidambaram here on Monday. “We conveyed to the Finance Minister that due to current dispensation regarding NPAs, there are difficulties in providing more finances,” State Bank of India Chairman Pratip Chaudhuri said, while talking to reporters after a meeting the Finance Minister had with bankers and industrialists here..........
RBI set to comb spike in bad loans
......Even as the finance ministry and RBI have directed banks to migrate to the core banking solution and eliminate manual intervention while detecting NPAs in their books, several banks have been found using manual tools while managing bad assets. Manual intervention implies recording of crucial data manually, which leaves room for data mismatch. Such mismatch results in an incorrect assessments of the NPA problem, bankers said.......
SBI wages war on wilful defaulters
.......SBI began compiling the wilful defaulters’ list in 1999. It has 1,124 borrowers on the list, with Rs.7,315 crore of loans. Besides sharing the names of the wilful defaulters with the Reserve Bank of India (RBI) and Credit Information Bureau (India) Ltd (Cibil), SBI also plans to publish the photographs of the promoters of the companies in leading newspapers........
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