The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
Tuesday, May 14, 2013
Writing Reserve Bank’s obituary - Dr.N.A.Mujumdar
Thankfully We Have RBI Which Is Not Like CBI
............. During my childhood days, whenever I asked my father (an Ex-RBI official) if he is a central government employee, he used to say proudly that RBI is an autonomous body, government can guide but can’t rule it. Now I feel the importance of that autonomous institution, in its recent annual monetary policy review, against much pressure from the industry and government’s wish, it decided to go with its hawkish stance and reduced the interest rate (repo rate) by a quarter percent only and said that there is little room for further policy easing. One will be surprised, why I am supporting that stance if the whole share market, industry and the government was expecting a dovish stand by the RBI............
A.S.Rao, Regional Director on UCBs in Andhra Pradesh
Regional Director of A.P,RBI,Hyderabad A.S.Rao had given a speech in the event of starting a Tirumala Cooperative Bank in mallakpet,Hyderabad on 13th may 2013. He had given the details and up to date status of urban cooperative banks of Andhra Pradesh the urban banks has a better average as compared to national average but the only drawback is capital,capital has not increased it has same value as compared to the previous years.In the end he requested all the members of urban banks to increase their capitalization as soon as possible.....
If bank boards aren't capable, nothing much can be done: K C Chakrabarty
RBI probes Cobrapost report, reveals violations by banks
..........Cobrapost editor Aniruddha Bahal claimed that both banks and the insurance companies flouted the Foreign Exchange Management Act (FEMA) rules, Reserve Bank of India (RBI) guidelines and KYC norms. The website alleged that banks accepted unaccounted cash and invested in insurance products thereby hinting at a two-way street between the two.............
RBI probe upholds Cobrapost charges on 3 private banks
.............The RBI probe supports these charges, of systemic misuse. It has found use of fictitious permanent account numbers issued by the income tax department, use of unknown non-resident ordinary (NRO) accounts, unauthorised gold sale and rampant non-compliance of Know Your Customer (KYC) norms. Apart from irregular staff junkets to bank officials selling insurance...........
Banks suppressing alerts on suspect dealings: RBI probe
....The report comes against a virtual clean chit given by some RBI executives, including Deputy Governor K C Chakraborty. The RBI probe found that there were several instances of cash deposits below Rs 10 lakh to avoid being reported as CTR (cash transaction report), and it found that banks were accepting Rs 50,000 and above without PAN or "there were multiple and large value transactions in Form 60 accounts in some cases"............
RBI doing its bit to ease interest rates, what about banks?
...........Despite the easing of interest rates by RBI, the weighted average lending rates of banks have declined by less than 0.5 percent, according to RBI data. Banks have said they are not in a position to reduce lending rates because of tight liquidity in the system. Also, to reduce lending rates, they should be in a position to cut deposit rates as well, which they may not be able to do at a time when the growth in deposits has been slow..........
Five steps towards better banking
While the Reserve Bank of India has cut interest rates by a meagre 25 basis points in its annual monetary policy review, it has announced some measures, which, if implemented, could translate into a better banking experience for customers. Here's a look at the most important ones........
Write off of bad debts at whose cost-Tax payers and depositors?
.......Both the RBI and Govt also talk and express their concern on the staggering NPAs and loss to the exchequer, but what prevents them to introduce an inbuilt mechanism to bring under control the NPAs and discipline the recalcitrant borrowers is something strange. .............
Financial matters made simple
Canara Bank has come out with a unique comic book to help improve financial literacy.
Available in six languages — Kannada, English, Hindi, Malayalam, Tamil and Telugu — the comic on ‘Money and savings’ was released recently by the bank’s executive director Ashok Kumar Gupta..........
Monetary levers big and small
.....Sadly, unlike a Rube Goldberg cartoon, where the ultimate purpose is something laughably trivial, like activating a napkin to wipe someone's mouth after each spoonful of food, the intent of monetary policy is the deadly serious business of stabilising the economic environment. In the cartoon, we get to observe what the napkin does. In the case of monetary policy, the official data as reported at present simply do not help to assess the speed and extent of transmission to borrowers from the banking system.........
Change in definition of control in FDI policy to be prospective: Sharma
.................The finance ministry and the Reserve Bank of India have sought clarity on the issue and want to align the definition of ‘control’ in the FDI policy with the proposed definition in the new Companies Bill to get more investments into the country. During his Budget speech, the finance minister had clarified he and his team would amend the definition of ‘FDI’ and ‘FII (foreign institutional investment)’ to remove ambiguity and to adhere to the international definition..........
Yellow metal sends red signal
New Delhi, May 13: India’s trade deficit widened alarmingly by more than 70 per cent in April over the previous month as imports of gold and silver jumped two-fold. The drop in gold prices have pushed up demand. The deficit, or the gap between what India exports and imports, ballooned to $17.8 billion from $10.31 billion in March...........
RBI's new headache: India's huge gold shopping spree
.......The Reserve Bank of India (RBI) brought into effect on Monday previously announced restrictions on banks importing gold. A trade ministry official said the April surge had revived discussion in the government of a further duty hike............
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RBI restricts gold import by banks to consignment
.....“To moderate the demand for gold for domestic use, it has been decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of gold jewellery exporters. Bulk of the gold imported by nominated banks is on consignment basis, whereby, nominated banks do not have to fund these stocks,”.........
Banks might tighten loans to jewellery sector
.....Bankers and jewellery exporters expect the Reserve Bank of India (RBI) to increase the margins on gold holding, as well the amount of collateral against which the loan is taken. Rajiv Popley, director of jewellery retailer and exporter Popley Group, said banks would highlight gems and jewellery traders and seek more collateral. Earlier, too, banks were wary of lending to diamond traders; now, with RBI considering tightening the norms, it would become very difficult for these traders to avail of loans.......
Thirst for gold defies steps to curb import
.....The government and the RBI have initiated a raft of measures to check gold imports. The government is planning to stop imports from Thailand, from where the yellow metal is imported at concessional duties. At the same time, the RBI has decided that banks can import bullion only against specific orders from jewellery exporters........
RBI's direction for MSMEs welcomed
The Federation of Associations of Small Industries of India (FASII) has welcomed the new guidelines of the ministry of Micro Small and Medium Enterprises (MSME) and Reserve Bank of India (RBI) for disbursement of loan for MSMEs. Badish Jindal, president of FASII, said.........
RBI was net dollar buyer in March
.....“RBI has been active in the foreign exchange market though with smaller transactions,” said a forex trader with a domestic brokerage. The trader added, “Apparently, the RBI is keeping rupee from rising above `53.75 per dollar levels.” The RBI had net bought $275 million in April 2012. .......
RBI yet to order banks to clear dues of armed forces pensioners
.......According to a Right to Information (RTI) petition filed by Commodore Batra, the RBI had on April 22, 2013, issued a strong message to all banks for credit due amount to affected pre-2006 pensioners and family pensioners with eight percent compensation for the delayed period. But according to Commodore Batra, banks and the Ministry of Defence worked to delay payments............
Uproar in Tripura assembly over chit fund issue
...............Later, Nath and Burman alleged that there was a clandestine transaction of money between the ruling CPI-M and Rose Valley and added, the Agartala Municipal Corporation (AMC) also issued trade license to the company. "When RBI and SEBI did not give them license, why the AMC run by the ruling party issued license for them?", he questioned.
Are company FDs as attractive as they look?
..............Unlike bank FDs, company deposits are not secure. Though non-banking finance companies (NBFCs) are regulated by Reserve Bank of India and others by the Registrar of Companies, you still have the risk of losing your money. These deposits are unsecured, which means that if the company is unable to meet its commitment, you stand to lose your principal. However, in case of bank FDs..........
Fine Future scam: EOW to register complaints against 4 banks with RBI
COIMBATORE: Sleuths of Economic Offences Wing (EOW), Coimbatore unit, have decided to lodge complaints with the Reserve Bank of India against four private banks which allegedly helped Fine Future firm, an online multilevel marketing portal, cheat 1.72 lakh investors across the state to the tune of Rs 818crores..........
When Banks aren’t Safe
It is baffling that every year, government banks write off Rs 15,000 crore of bad debts. Public money is squandered in the advances made to persons or institutions lacking creditworthiness and trustworthiness in repayment of loans. Every rupee collected from taxpayers has to be accounted for properly. That is not being done. The continuing loss in public sector banks has been forcing the government to impose more and more taxes on the common man to plug the mounting losses. The government must wake up before the people’s confidence in public sector banks erodes. Banks must obtain sufficient collateral security while making advances to safeguard taxpayers’ money.
- KV SEETHARAMAIAH, Hassan (ET)
- KV SEETHARAMAIAH, Hassan (ET)
Ratnakar Bank forays into Tamil Nadu
............"As part our expansion strategy, we intend to grow our presence across many more centres in Tamil Nadu. Our first branch in Chennai is a state of art lounge branch, using tablets instead of desktops which help increase the mobility of the branch staff to address customer's banking needs in a relaxed environment and provide them with end-to-end service within the branch,".........
SHG products under one brand, logo in the offing
The Tamil Nadu government has lined up several initiatives to encourage more women entrepreneurs in the state, the most significant being increasing lending through co-operatives, launching a new, common brand name and logo for products made by self-help groups (SHGs), and reservation of 30 per cent of plots for women entrepreneurs in upcoming industrial estates...........
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