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.
Thursday, June 6, 2013
Who Would Audit the Central Bank?
RBI committee for single balance sheet of the central bank
..............Malegam committee also said that since RBI is not a commercial organization and its primary objective is not to earn profits, the nomenclature ‘Profit & Loss Account’ tends to be a misnomer and therefore it should be replaced with the nomenclature ‘Income Statement’. Also it said that even this statement should be a single statement as it is done currently. Committee also recommended that since interest income is the main source of income for RBI, under the income head only interest income should be mentioned and all other income should be shown in head— others...............
FSDC should not encroach autonomy of exisiting regulators: RBI
...“I am not saying that RBI should get the whole responsibility but every regulator should have a clearly defined role and there should be a co-ordinating body, but it should just be a co-ordinating body with more importance during crisis,” ........
Super regulator should remain a coordination body: Subbarao
........The RBI is of the view that in a bank-dominated financial sector like that of India, the synergy between the central bank’s monetary policy and its role as a lender of last resort, on the one hand, and policies for financial stability, on the other, is much greater..........
Ellaquai Dehati Bank conducts KCC Loan Mela
REASI : Ellaquai Dehati Bank (EDB), Branch Kundrorian District Reasi conducted Financial Literacy cum Kissan Crdit Card (KCC) Mela at village Nalati (Kundrorian) on Tuesday. The objective of the camp was to synchronise it with providing financial access and thus linking the financially excluded section with the banking system under Government of India Financial Inclusion Programme. Besides villagers, Bank Officials, Ram Kuwar AGM RBI, R.K Safaya, Chief Agriculture Officer Reasi, Sarpanchs of the area attended the Mela...........
SBI DISBURSES COINS WORTH RS 12L AMONG TRADERS
In an attempt to meet the shortage of coins State Bank of India's main branch at Bistupur in association with the Singhbhum Chamber of Commerce and Industry (SCCI) on Tuesday organised a coin disbursement mela wherein coins worth Rs 12 lakh of various denominations ( Rs 1, Rs 2, Rs 5 and Rs 10) were disbursed among local traders. A total of 330 traders were benefitted from the initiative............
Murli Radhakrishnan nominated as SBM director
BANGALORE, JUNE 5:
Murli Radhakrishnan has been nominated as Director of State Bank of Mysore (SBM). According to a bank release, Radhakrishnan’s nomination is in terms of Clause (b) of Sub-section (1) of Section 25 of the State Bank of India (Subsidiary Banks) Act, 1959, the Reserve Bank of India. Radhakrishnan replaces Madhumita Sarkar Deo on the bank board.
HBLBanks should hold camps to open bank accounts: RBI
........“Instead of customer coming to bank, the lenders should approach the customers through camp approach. In the process they should also involve local non-governmental organisation (NGOs) and local bodies. We are also asking respective state governments to help banks in conducting such branch opening camps. The solution is to capture everybody’s bank account first in a camp mode,” ..............
WPI not only variable for monetary policy: RBI deputy
The RBI will look at other variables, and not just the wholesale price-based inflation, when deciding monetary policy at its review on June 17, Deputy Governor K. C. Chakrabarty said on Wednesday......
Banks require Rs 5 lakh cr to meet Basel III capital norms, says RBI
.......In India, the Reserve Bank introduced the Basel III capital regulations for banks effective April 1 this year. The capital requirements will be phased over a period, up to March 31, 2018 — nine months ahead of the Basel Committee phase-in. Subbarao said: “As per our standard practice, we have pegged our minimum capital requirements for banks a percentage point higher than the minimum standards under Basel III.”..........
Local incorporation norms for foreign banks after sorting out issues: Subbarao
.......“The thinking at the RBI now is that the existing foreign banks, which are already operating as branches, have contractual obligations. We can’t demand them to convert into branches. For the new entrants, we might think for that policy even at the time of entry,“.............
'Structural imbalances in bank funding diluting monetary policy transmission'
..........The dilution in transmitting the monetary easing is a policy challenge as banks are the dominant source of funding to corporates and individuals," India Ratings said. Dependence on certificates of deposits (CDs) has also grown steadily and the Indian banking system has converted from being a net lender in the money market till 2005 to being a net borrower............
Is it better to sit on cash or trade in volatile markets?
...............RBI Governor D Subbarao said that the CAD, which is a key factor in monetary policy decisions, and inflation were still high. His comments dashed hopes of interest ratecuts and the market reacted sharply, with the Nifty slipping below its key psychological support level of 6,000 last week. .............
Higher insurance for bank deposits: who will pay for it and why?
While consumer organizations are demanding that bank deposits should be insured for a much higher limit, the RBI Deputy Governor pointed out that the costs of much higher deposit insurance will be onerous on depositors themselves. It will also allow promoters of shady cooperative banks to get away.................
Ponzi schemes: RBI governor for increasing surveillance, regulations
......."We need to tighten regulation, we need to make regulation more effective but we also need to pay attention outside the regulated sector,"...........
RBI GOVERNOR AGREES THAT PENALTIES ON BANKS IN INDIA ARE PEANUTS
............It appears RBI Governor has chosen an easy way to bring himself out of the mess exposed by Cobrapost. First of all, under his very nose, Mr K C Chakrabarty openly dared to give a clean cheat to three private sector banks exposed in the first leg of the expose. I have yet to come across any news wherein he snubbed his Deputy for such bizarre statement to the press. Now RBI Governor says action will be taken at a lower level. Does he mean that it will be at DG level or even lower than DG level. If it is so, then we know the fate of the action, which will tantamount to cover up the misdeeds rather than cleaning the system. I wonder why the action against banks has been delegated at a lower level? Is it considered to be a small issue by RBI? I feel such actions must be taken with the approval of RBI Governor and not by a low ranked officers in RBI, as it directly affects India as a nation...................
TDS on bank deposits: RBI’s advice to acknowledge 15-G/15-H is only half a step
........In short, the present advice of RBI to banks to simply give an acknowledgment to customers when they submit Form 15G/H is just a flash in the pan as it serves a very limited purpose but fails to deliver anything of value to the customers. Whether it is a computer mistake or a human error, banks have a bounden duty to refund the amount wrongly debited by them. While RBI has taken the first right step by asking the banks to issue an acknowledgment, which will serve as a proof for the customers to show that the form in fact has been duly submitted to the bank, RBI should go a step further and ask the banks to instantly refund the tax wrongly deducted, as it is patently a mistake committed by the bank, for which the customer should not be made to suffer..........
You must obtain acknowledgment of form 15-G/H from the bank
.........There have been number of complaints wherein tax has been wrongly deducted even when Form 15G/15H has been submitted. RBI states that such instances arise because either forms are misplaced or bank branches have lost track. So with a view to protect interest of depositors and for better customer service, RBI has advised banks to give an acknowledgment at the time of receipt of Form 15G/15H. RBI states that this will help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the banks...............
‘Banks should only be allowed to take deposits
........“Deposit collection by non-banking companies should be gradually minimised, and eventually eliminated. Towards this endeavour, the Reserve Bank has been quite restrictive in authorising NBFCs to collect deposits,”......
Need to minimise deposit mop-ups by NBFCs: Subbarao
In the light of deposit mop-up by non-banking finance corporations (NBFCs) Reserve Bank of India Governor D Subbarao admitted there was a dire need to tighten regulations for financial stability and consumer protection. He stressed that collection of deposits outside the banking space should be minimised and finally eliminated. Talking about mushrooming ponzi schemes that have duped many investors in recent times the RBI boss reminded that its jurisdiction was limited to NBFCs, but admitted there was a need to tighten regulation to check such schemes. Ponzi scheme is a fraudulent investment scheme where the money being brought in by newer investors is used to pay off older investors.................
Internet Banking Invites Fraudsters
......Reserve Bank of Indian has made it compulsory for all the banks across India to spread awareness about internet banking scams and the fraudsters through their websites and mails...........
RBI bars West Bengal Industrial Development Corporation from raising public money
.........In the wake of the Saradha scam, the RBI wants the WBIDC's status as an NBFC converted from deposit-taking to non deposit-taking. The RBI order would also apply to another state government entity, the West Bengal Industrial Development Finance Corporation (WBIDFC), which holds a similar licence to function as a deposit-taking NBFC.................
Banking licences: Why corporates are better placed than NBFCs
.......In other words, very serious players with deep-pockets like corporates are the likely beneficiaries while non-banking financial corporations are the likely losers as they will have to comply with stringent norms such as the cash reserve ratio (CRR), statutory liquidity ratio (SLR) requirements on day one and will need to transfer their entire lending book to the bank itself.............
RBI may issue only 3-4 bank licences; NBFC entry tough: E&Y
......There are two parts to the entire thing. If one were to look at the guidelines, one thing is very clear and that is they have made the clarifications in a very articulated manner. They have come out with all sorts of boundaries. So, as far as the discretion when the regulator is required to exercise whether it comes to the committee which will be formed to do that or the regulator himself the areas of such discretions are reduced through the clarification........
Sorry, We Are Not for New Banks Is RBI’s Message
Thirty four organisations, 443 queries, 165 pages of answers, and one message from the central bank - we are averse to new banks so licences will be at our discretion. The RBI, which has been reluctant to let new banks despite prodding from the political and business class for nearly a decade, has all but made it impossible for anyone to make a quick buck as it happens often with licenses............
YES Bank’s Kapoor explains why getting a bank licence is a long haul for aspirants
.......“I believe in the long run it is also an opportunity if there is application of newer technologies, if there is an outreach, because the reach and depth of Indian banking needs to widen and deepen. New bank models will have to focus on such opportunities predominantly,” Kapoor said. He, however, made it clear that it would be a long haul for the new entrants............
Banks to have multiple structure options to tie-up with insurers
...........In his budget speech, finance minister P Chidambaram had said that banks would be allowed to act as brokers to sell insurance. However, Reserve Bank of India (RBI) has expressed some apprehensions about this model and said that it could lead to 'reputational risks' for banks.............
No leniency for banks that are flouting norms: FinMin official
..."There is absolutely no scope for benefit of doubt to be given to anybody who violates fundamentals like KYC norms and cash transaction limits, does not report suspicious transactions, advise customers to make Rs 49,999 transactions (to avoid quoting PAN and their reporting), and a dozen of them in one day, there is absolutely no scope for that. This is absolutely not done,"..........
India on its way out of the woods: T C A Anant
..... “my perception is that we are making our way out of the woods… but I would say we are out of the woods only when we get back to 7-8 per cent GDP growth annually,”.....
Takru slams banks for lax loan appraisals
The Union finance ministry has come down heavily on banks for a lax credit appraisal process and taking undue advantage of the corporate debt restructuring (CDR) mechanism. “It’s a disgrace that banks have allowed cooked–up balance sheets (of borrowers) to get through,” said Rajiv Takru, secretary, financial services, at a seminar attended by leading bankers.......
Expect a 25 bps rate cut from RBI's June 19 policy: NS Venkatesh, IDBI Bank
......A 25 bps cut can be expected from the June 19th policy because the GDP growth has come down to around 4.8% and inflation has started showing signs of lower trajectory. Therefore, RBI will surely have a room to cut rates which will stimulate the economic growth for the country. .......
Banks not passing rate-cut benefits: India Ratings
Indian banks have not been passing on the rate cut benefits announced by the Reserve Bank of India (RBI). India Ratings put out a research paper on the same which was authored by Anand Bhoumik of India Ratings & Research. Bhoumik told CNBC-TV18 that reliance of banks on short-term liabilities had been increasing which has led to margin pressure..............
Import duty on gold, platinum hiked to 8%
...The Finance Ministry's action to raise duty follows curbs announced by the Reserve Bank on import of gold by banks as well as other entities........
Restriction in gold imports may lead increased smuggling
......."There is uncertainty in the market due to these restrictions. Domestic jewelers will have to pay upfront to the bank which at times become difficult for them. Moreover, they will have to place orders with the banks in advance. If a sudden demand emerges due to falling prices, jewelers will not be in a position to meet it instantly. They will have to wait till banks provide the metal." ............
Subscribe to:
Posts (Atom)