............In its financial sector assessment programme for the country, the Fund pointed out that the independence of the RBI is not enshrined in the law and there are some legal provisions that could seriously undermine its independence from the Government. “Legal provisions in the Banking Regulation Law and the Reserve Bank of India Act allow the Central Government to give directions to the RBI, to require it to perform inspections, to overrule decisions and to supersede the RBI Board. Although these provisions have never been used in practice, it would be beneficial to remove them from the law so as to provide greater legal certainty,” the Fund said...............
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, September 3, 2013
Subbarao's 5 years: Managing crisis to managing conflict
Top bankers hail work of outgoing RBI chief Subbarao
......"I think the Governor's (five year) term has been in one of the most difficult environments globally and domestically. If you look at the world and our country today, there is so much change that you have to be at your feet and I can't imagine anybody else doing a better job (than Subbarao)," ...................
Two lectures
......Duvvuri Subbarao may or may not have had Mr Chidambaram’s lecture in mind when he wrote his; but it not only embodies an answer to the finance minister’s self-serving arguments, but also reflects the frustrations of having to live and work with him for a long five years. He asserted that an apolitical central bank had to act as a counterpoise to a government driven by the rituals of democracy. But he was also painfully aware that in a crisis, the government and the central bank were likely to be more effective if they acted together..................
Richly deserved praise from S.S.Tarapore
Dear Mangesh,
A richly deserved praise from S.S.Tarapore is
great since he is a person who reads a lot and if he finds the coverage to be
excellent, you can congratulate yourself and be proud of your work. Regards and best wishes,
- A.Chandramouliswaran, Former Executive Director
Wonderful !
- V.K.Sharma, Former Executive Director
Congrats!! This appreciation is well deserved
for your hard work. Keep it up. The information in your archives is a gold mine
and I am sure RBI itself will require this when it takes up the
History Volume V drafting. Even otherwise many are benefited from your
blog and it keeps the learning process continued with the retirees in
particular. With regards,
- Dr.T.V.Gopalakrishnan
My compliments to you, once again, Mangesh for the
appreciation of your work by Dr S.S.Tarapore for bringing out VITALINFO almost
every day in the morning - Jai Ho !!
- M O Sebastian,GM (Retd)
Dear Mangesh,
I am really happy to see people appreciating your
efforts in helping them get all financial news online so early in the morning.
I feel so happy to see the words of appreciation for you, a good friend of
mine, with whom I have worked for 6 long years. Through VITALINFO you are
helping the society untiringly without any selfish motive, which, I feel, is
great social work. With best wishes,
- R.L.Sharma, Officer-in-charge, Dehradun
Dear Taramabale ji
It is really a well deserved comment.
- R K Sood, RBI Chandigarh
Bank Employees anti Reform and against Merger Strike on 25.09.2013
.............Bank employees are presently facing low salary issues since four years and now their salary revision 10 th Bipartite Settlement is due from November 2012. Bank employee’s demand is central govt employees at par salary from earning of banks itself, but govt is ignoring since 2010. Their demands seem to be genuine that from banks earning they are demanding salary and their salary is not increased from their own efforts earnings. Since decade no bank is in loss and earning goes to Govt.............
Financial inclusion must be available to every citizen, say experts
......Former Regional Director of RBI, DPS Rathore said that financial inclusion came into focus after the UN resolution to end poverty from the globe and it is a resource which should be available to everyone. ..........
Pragathi Krishna Gramin Bank organises training programme
A training programme on Advanced Leadership for Executives was organised by the amalgamated RRB-Pragathi Krishna Gramin Bank in Bangalore. The valedictory function organised was graced by Meena Hemchandra, CGM & Principal, RBI, CAB, Pune.
FPJ
The new Rajan
.........The unprecedented scrutiny, at least in the non-pink papers and social media chatterati, has as much to do with his intellectual prowess as with his rather photogenic appeal. (Really, when was the last time the country's senior most financial regulator elicited such mainstream curiosity-anyone remember S. Venkitaramanan, RBI Governor at the height of an even graver financial crisis in 1991?). But as the trim 50-year-old settles down in his 18th floor office at the RBI headquarters at Ballard Estate, Raghuram Rajan and his wife Radhika Puri, whom he met while studying at IIM, Ahmedabad, will also be looking to create a new life in Mumbai over the next three years...............
No magic wand to wave away economic woes: Rajan
............“We have enough ideas,” said Rajan. “It is not just the currency, it is financial inclusion, it is growth. I think there is a lot to do. There are challenges in the economy.... These things are not going to be overcome overnight. There is no magic wand. But there are undoubtedly solutions to many of the problems that the RBI can tackle and the job is to go ahead and do it,”...........
What will keep Raghuram Rajan busy in RBI hot seat, what will he axe? Take a look
..........There has been speculation that Raghuram Rajan is not in favour of mid-quarter reviews and could dispense with the practice, although the scheduled mid-quarter review due later in the month would be brought out..................
RBI suggests 5 members for panel to screen new bank aspirants
......Sources said the names are that of market regulator Sebi Chairman U K Sinha, insurance regulator Irda Chairman T S Vijayan, pension regulator PFRDA Chairman Yogesh Agarwal, Financial Services Secretary Rajiv Takru and financial sector expert Y H Malegam. Takru and Malegam are also board members of RBI. Malegam, an independent director on many boards, is also an external member of Technical Advisory Committee of RBI on monetary policy...........
RBI sets new KYC norms for foreign students to open bank a/c
......However within 30 days of opening of account, foreign students should submit a rent agreement as address proof of local residence. Banks should insist on visit by landlords to branch to verify rent documents. Instead, banks should adopt alternative mechanisms to verify the local address, RBI said............
Top private banks pip state-run rivals in opening new branches
............Financial inclusion agenda coupled with growing business opportunities in non-metro centres have persuaded private lenders in increasing their branch count aggressively across the country. The introduction of low-cost branches has also encouraged network expansion..........
RBI nod must to review base rate methodology after 5 years
The Reserve Bank of India (RBI) on Monday said banks that sought to review their base rate methodologies after five years of finalisation would need the central bank's approval for such exercises. Base rate is the minimum rate at which a bank can lend. Banking executives said the implication of the revision in base rate norms was a bank would be able to consider a revision in methodology after 2015, subject to RBI's approval..........
HDFC Bank launches rural financial literacy initiative in Gujarat
.....Through this initiative, the bank will conduct a series of three literacy camps in every village, and each rural branch will hold this programme in two neighbouring villages over the next year. These camps will give participants a conceptual understanding of financial products and services using material provided by the RBI. HDFC Bank will use the financial literacy guide and posters as standard curriculum at these camps..........
PM on fiscal situation
....... Since most investment in gold is made out of black money, sincere steps should be taken to transform currency-circulation in banking transactions so that surplus currency may be ordinary ‘paper’ for all practical purposes. India should follow sensible advanced countries by discontinuing circulation of higher-denomination notes of rupees five hundred and above because such currency is used as black money to buy gold..............
JK CM opens J&K Bank National Business Centre in Mumbai
..........The Chief Minister expressed the hope that J&K Bank would grow further and further and emerge as one of the leading business companies in the Country. The Chief Minister was speaking at a function after inaugurating J&K Bank’s National Business Center at Bandra Kurla Complex, Mumbai in presence of Deputy Governor RBI, H R Khan and Chairman and CEO J&K Bank, Mushtaq Ahmad...........
Omar calls for early decision on J&K bank chief's extension
Alleging that a "propaganda war" is being played because of indecision, Chief Minister Omar Abdullah today asked the Reserve Bank to expedite the proposal to extend the term of the Chairman of government-promoted J&K Bank, Mushtaq Ahmed, at the earliest. "Uncertainty for any institution is not a good thing... people take advantage of that (uncertainty). A request has been put in to RBI and this has to be approved by RBI," Abdullah said at a bank event here, which also had RBI Deputy Governor H R Khan in attendance. ......
Differentiated Licensing Talk Gives Banking Aspirants Hope
The
Reserve Bank of India’s talk of differentiated licensing for banks on
the lines of the US and Singapore has raised hopes of many aspirants
such as India Infoline and Muthoot who believe when it becomes a reality
they could escape some tough regulations applied on full-scale banks. A
differentiated licensing could enable specialists such as
infrastructure lender IDFC, and gold loan company Muthoot Finance get a
regulatory treatment different to what it is for those banks such as
State Bank of India and ICICI Bank....
Read - ET
Banks will generate 7.5 lakh jobs in 5 years
.............By 2018, the banking industry is expected to generate around 7.5 lakh jobs. A report by management consultancy Boston Consulting Group notes the banking industry will need to hire a massive 9-11 lakh employees over the next five years with more than 80% vacancies taking place in public sector banks (PSBs). The situation could worsen as the hiring process in PSBs typically takes around 14 months...............
Worsening balance sheets have escaped attention
..........Worse, if the impairment to balance sheets is bad enough, taxpayer money will have to be used to bolster their capital. Remember, investment portfolios — and, hence, profits have already taken a beating thanks to the sharp increase in bond yields. So what can Rajan do? Regulatory forbearance, allowing banks to pretend aal izz well when it is anything but, is the standard refuge of supervisory authorities. It has been tried and tested in the past, and more recently with restructured assets that have been euphemistically named restructured “standard” assets. This simple expedient allows banks to get away with much lower provision for bad debts than warranted.............
HDFC Bank takes 15 days, two visits and 15 calls to credit eight paisa!
....This was violation banking double entry accounting mechanism and provisions. The Bank and its Kothrud, Pune branch and branch manager took 15 days and two personal visits by me and 15 phone calls to their centre of excellence and state of the art customer (harassment) call centre and equally harassing grievance resolution nodal officers and appellate authority to credit the eight paisa in my account.............
The looming banking crisis
With the collapse of the rupee and the stock market capturing attention, and corporate and media anger directed at the Food Security and Land Acquisition Bills, attention is diverted from much else that is wrong with the Indian economy. Except for occasional and startling reminders. One such came from Credit Suisse that pointed to the debt overload among leading Indian corporates. Another came from Reserve Bank of India Deputy Governor K.C. Chakrabarty on the losses building up in India’s infrastructural sector, including in its privately operated component. These are problems in themselves...........
Bengal cooperative banks come under RBI scanner
..........According to sources in the RBI, since most independent directors are political appointees, they often resort to undue influence on the bank authorities to release donations to organisations or exhibitions, where either they or their close relatives are involved. The RBI has already cautioned such banks and asked them to refrain from releasing donations to any charitable organisation or exhibition where either the directors of the banks or their relatives are involved, even within the permissible ceiling of 1% of the published profits of the bank concerned for the previous financial year..........
No national level merger of RRBs: Syndicate Bank chairman
Sudhirkumar Jain, chairman and managing director of Syndicate Bank, has ruled out the possibility of merging all regional rural banks sponsored by the Syndicate Bank at the national level. Putting an end to speculations that all of them would be merged, Jain said on Monday that as per the directions of the Finance Ministry, the sponsoring banks alone can merge the RRBs at the state level..........
Govt nod to I-T dept for tax refunds
The income tax department has resumed “normal refund payments” for 2011-12 after an informal goslow advisory was reversed. At
the same time, the offices have been asked to expedite refunds of up to
Rs 50,000 for the last financial year although the bulk of tax returns
were received by August 5. The move is aimed at ensuring that individual
taxpayers are not adversely affected by any delays in refunds. Sources
said the green light for all refunds has come from the highest level
with field offices instructed to clear pending dues..............
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