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.
Wednesday, June 5, 2013
Subbarao, a reluctant warrior on inflation
Too Much of Good Prudence, RBI
Is
the Reserve Bank of India (RBI) seeing all the leaves, branches, fallen
twigs, root system, annual rings, Cambrian structure, etc, of the
trees, while missing the wood altogether, in the matter of issuing new
banking licences? The latest clarifications from the central bank on its
guidelines issued earlier this year would suggest it is. This is
unfortunate..........
Read - ET Editorial
Voila! A demand draft is bounced !
.........Strange as it may sound, but two state-run lenders, State Bank of India (SBI) and Central Bank of India (CBI) had created a new record of bouncing a demand draft (DD). In this particular case, both these banks returned the DD drawn by CBI saying, “Instrument is cancelled”..................
ReTyring appreciation for untiring efforts of VITALINFO............
Dear Shri Mangesh
I appreciate your marvelous efforts in giving the daily news bulletin relating to banking and finance. It is an excellent and matchless effort on your part, which needs a great deal of sacrifice on your personal front, and I am sure, you will be getting the rewards in the form of blessings and deep appreciation from the readers. I had vacated my Office on May 31, 2013 on attaining superannuation, as GM-I/C, DBS, RBI, Hyderabad Office. I would like to remain a beneficiary of your sincere efforts and, if it is not inconvenient, kindly take on record my personal e-mail address as RBI mail connection will be discontinued.
Wishing you all the Best
Warm Regards
D Rajagopala Rao
Change of directorate - Punjab National Bank
.............has nominated Shri B. P. Kanungo, PCGM & Regional Director, Reserve Bank of India, Kolkata, as Director on the Board of the Bank with immediate effect and untill further orders, in place of Shri N. S. Vishvanathan.
Penalties on banks in India 'peanuts', says RBI Governor
In the backdrop of recent violations of banking norms by some public sector as well as private banks, RBI Governor D Subbarao believes that penalties for such offences in India amounted to "peanuts" compared to those in the western countries............
Money laundering: Early action against banks violating norm, says RBI Governor D Subbarao
......."What action? I cannot tell you because action on this has to be taken at lower level at the RBI. So it is premature to conclude that the RBI is going soft or harsh on this. "We got to follow a process. Just because media is investigating today, we can't say the RBI has to penalise tomorrow otherwise it is soft,"...........
Time to trim CRR by 50 bps, says SBI chairman
The Chairman of public sector lender State Bank of India (SBI), Pratip Chaudhuri, pitched for 50 basis points (bps) reduction in cash reserve ratio (CRR), apart from a cut in interest rate on government deposit, so as to pass on the benefits to borrowers.........
Saraswat Bank eager to merge with Rupee Bank
Announcing the willingness to merge with Rupee Bank, Saraswat Bank chairman Eknath Thakur said on Tuesday that the entire process could be completed within two months if Reserve Bank of India (RBI) gives its nod. Addressing a convention of Rupee Bank employees, elected representatives and Saraswat Bank officials organised by Bank Employees Union, Thakur said, “Employees involved in any kind of irregularity would be retrenched immediately during the merger. We have successfully merged seven banks before. Hence, I am confident about the merger with Rupee Bank.”.......
Banking on questions
Banking is a complex business, but even by those standards, some of the clarifications sought by prospective applicants of new banking licences from the Reserve Bank of India (RBI) were decidedly odd......
Banking is Just a Click Away Now, and So is Fraud
.....From
a customer perspective, awareness and education are the keys, which
banks are taking seriously, as mandated by the RBI, through their
websites and mails to clients. Banks are also investing in adding more
security features to customers’ accounts. One of the features that banks
added recently is the ‘digitised signature’. Most frauds occur when
customers show laxity in complying with security. Information for
attack can also be gathered from a bank’s staff. Awareness can act as a
crucial fortress against cyber aggresses. KVS Manian, head of consumer
banking Kotak Mahindra Bank says, “RBI has detailed guidelines on banks’
IT policy which stipulates a board-approved policy, among other things.
Customer education apart, we have to keep investing in upgrading
systems as well.”.......
Financial Inclusion Has Many Rocky Miles to Go
............Hence,
policy should not be formulated on the assumption that growth of MFIs
will lead to financial inclusion. Second, if lack of access to land
constrains progress in financial inclusion then it is a cause for
concern since land is scarce and hence not all rural households will be
able to offer the comfort of having an asset to the lender.
Indian Banks Witnessing a Financial Downfall
..............Things became even more dreadful, when Reserve Bank of India (RBI) posed special rules for all the Indian banks that made it tougher for the banks to come out of the crisis...........
RBI and India’s Villages
The
RBI had more than 400 questions seeking clarifications on new banking
licence guidelines. But there is even more brewing in the minds of
consultants, lawyers and entrepreneurs. Someone wanted to know if the
RBI would display the names of villages with population of less than
9,999. RBI replied saying it “can be obtained from the concerned State
Level Bankers Committees and District Consultative Committees at the
time of opening branches”. It can be done, but will it be based on the
latest census or the current population? As in most cases, reality and
statistics do not agree.
ET
ET
Bank licence clarification: Who gains, who loses
The Reserve Bank of India (RBI) clarification on the final norms on new bank licence has clearly ruled out any benefit to the new players in terms of more time to meet the cash reserve ratio/statutory liquidity ratio. In addition, RBI said the priority sector obligations have to be met and 25% of the branches have to be opened in unbanked areas...............
Shriram Group studying RBI clarification
.........“I think the clarifications are reasonably comprehensive and very detailed. RBI made its stance very clear, both in terms of structure as well as in terms of the business model.”............
L&T Finance may have to tweak its structure for banking foray
.......“Technically, I don’t think L&T Finance Holdings will be eligible to set up NOFHC. However, considering the track-record and diversified shareholding of its parent, RBI may allow it to promote a bank,” a senior partner with a global consultancy firm said, requesting anonymity.........
Gangs of private banks
.....Apropos Debashis Basu's column "Protecting customers from 'banksters'" (Irrational Choice, June 3), the word "banksters" rhymes with another word so well that it takes the meaning from it. While reading the article, I almost thought that the writer was describing my experience with private banks............
Clarity on number of new bank licences by October
................."So you need to wait at least till the interim scrutiny by the first committee of RBI gets over which would be around September-October. By the time they know how many meet the minimum benchmark after scrutinising applicants, we would be able to react to that. Giving numbers prematurely at this time would be silly,"................
Will linkers sustain good start?
...........One big caveat is that these bonds are linked to the Wholesale Price Index. For retail investors, whose expenses are linked to the Consumer Price Index, there is a real probability that these bonds won’t offer much succour. RBI has said that it is still working out the contours of the linker offering for retail investors. That should provide a clearer picture on the success or failure of this new asset category.
First issue of inflation indexed bonds oversubscribed
Government's first issue of the 10-year inflation indexed bonds, which aims at discouraging gold investments, was today oversubscribed by more than four times, though only bids worth Rs 1,000 crore were accepted. As per the RBI, which auctioned the '10 Years Inflation Indexed Government Stock, 2023', there were 167 competitive bids worth Rs 4,616 crore of which only 26 amounting to Rs 985.94 crore were accepted..............
Canara Bank seeds 67,000 accounts with Aadhar
Having already seeded over 67,000 accounts with Aadhar numbers, Canara Bank is making every effort to create awareness among the general public to open their bank accounts and link them to Aadhar mumbers. Towards this, it organised a road show across the 109 branches in five districts - Mysore, Hassan, Kodagu, Mandya and Chamarajanagar - on May 30............
ARCHIVING INDIA’S BANKING HISTORY
After
State Bank of India and Central Bank of India, it is now the Bank of
India’s turn to set up a banking museum to capture its sojourn since
1906. The museum will be built in a 6,000 square feet space at the
bank’s Fort office which happened to be its headquarters once, before
the bank shifted its head office to Express Towers at Nariman Point and
then to the Bandra Kurla Complex. The museum will capture many
innovative banking practices introduced by the bank from the beginning
of the 20th century, says Abhik Ray, who is in charge of the project.
Ray is a retired State Bank of India officer and was instrumental in
setting up SBI’s museum in Kolkata.
ET
ET
SBI sees room for accommodative monetary policy
There is enough room for an accommodative monetary policy when the policy is announced on June 17, believes Pratip Chaudhuri, CMD, State Bank of India. This is a possibility given the present growth of the economy, he said at a CSR event organised in Bangalore by State Bank of Mysore. An accommodative monetary policy is one where the RBI could attempt to expand the overall money supply to boost the economy when growth is slowing...............
RBI allows gold imports only on 100% cash payment
.......“This would make gold import tougher with those with full cash would be able to import the yellow metal. But, there would be no impact on gold availability overall,..................
RBI makes gold import norms tougher to rein in CAD
.........“It has now been decided to extend the provisions (of May 13 circular) to all nominated agencies/ premier / star trading houses…accordingly, any import of gold on consignment basis by both nominated agencies and banks shall now be permissible only to meet the needs of exporters of gold jewelry,.........
RBI, Finance Ministry and Commerce Ministry huddle over curbing gold imports
........Addressing reporters on the sidelines of a function organised by Assocham here, Commerce Secretary, S.R. Rao said the trade deficit was a matter of concern for the government and that the RBI and the Finance and Commerce Ministries are involved in the issue. ......
Gold rush: World Gold Council seeks RBI help
World Gold Council (WGC), the premier organization that promotes the use of gold globally, has approached the Reserve Bank of India (RBI) to work with it so that yellow metal could be promoted as a financial asset, rather than just a physical asset. The move comes close on the heels of a series of steps taken by the government as well as the central bank, aimed at reining in gold imports which is directly contributing to the rising current account deficit (CAD). ......
RBI tightens gold import norms
..............“It was decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. It has now been decided to extend the provisions of this circular to all nominated agencies/ premier / star trading houses who have been permitted by Government of India to import gold,”..................
What can policymakers do to prevent Indian rupee's drop?
.............The RBI could persuade banks and financial institutions to raise funds in dollars abroad and lend them locally, a measure that has worked in the past when overseas rates were attractive............
Rs 12 lakh seized from Gaya-bound bus
........Police arrested one person and brought him to Barhi police station. After opening the gunny bags, the police team found all the bags and the suitcase were filled with currency notes of Rs 10. The arrested man told police that notes were genuine and he used to carry currencies by exchanging the damaged and soiled notes at the Reserve Bank at Kolkata............
Rupee’s mysterious purchasing power parity
..............Finally, it is not size that matters. It is how the average level goes up. There will be, for all times to come, discrepancies in incomes. But the average must rise - that will mean more Indians will get more income and a better standard of life.
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