.....Fortunately, Indian public sector bankers are a different lot and have successfully blended profitability with social banking. We have to build on this strength. The main point which this article seeks to drive home is that it is not enough to discuss the banking structure, important though it is. We should evolve the broad contours of the new banking culture. The Reserve Bank of India ( RBI) should appoint a Working Group to have an in- depth study of the wide range of issues and make more specific recommendations on the subject. In the banking crisis, the behaviour of bankers was appalling enough, but regulators, credit rating agencies, auditors – all of them created pressures in the same, wrong direction. The new banking culture should bear this in mind........
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.
Monday, November 25, 2013
RBI and the shifting sands of advice
...........On 30 October, governor D. Subbarao announced no change in the repo rate, but cut the CRR by 25 basis points to 4.25%. That was par for the course—the RBI governor was not bound by the committee’s advice and Subbarao frequently ignored it. Consider now what happened a year later, on 23 October 2013. The economy had sunk even deeper into gloom. Economic growth for the June quarter was a mere 4.4%, one percentage point lower than where it had been in the June 2012 quarter. ...............
A monetarist history lesson for India
..... First, RBI failed to reverse course quickly and withdraw its stimulus after the economy bounced back from the effects of the global financial crisis of 2008. In fact, in his last public appearance before he stepped down as RBI governor, D. Subbarao acknowledged this. He said, “With the benefit of hindsight, I must admit in all honesty that the economy would have been better served if our monetary tightening had started sooner and had been faster and stronger.......
Grace Koshie appointed woman director in Federal Bank
Kochi: Grace Elizabeth Koshie today joined the Board of Federal Bank as the first lady director in the Kerala headquartered lender. The bank becomes one of the few listed companies which have complied with the latest regulatory directions in the Companies Act, 2013, which requires a lady director to be on the Board of Directors. Grace Koshie, a postgraduate Economics graduate specialising in Econometrics and Monetary Economics from Bombay University, joined Reserve Bank of India in 1976...................
Agricultural Banking: Getting the Perspective Right
Does urban India need a women’s bank?
.............This is strange as professional urban women do not need a bank of their own. Women in rural pockets of India, fraught with casteism and gender discrimination, need this vehicle. As women do not have right to property, they cannot offer collateral while seeking a loan. This is true for all women, but women in cities are more involved in formal economy through jobs and entrepreneurship and they do not need a bank exclusively for themselves........
Needed, a new-age DFI
......Rather than reinventing the wheel, it makes a lot more sense to focus on this layer, especially after the RRBs have been recapitalized by the government and given a new lease of life by RBI through concerted regulatory action. In a similar vein, more than banking innovation, which ideally the market should deliver, the focus of the policymakers should be on institutional innovation in the banking sector. Twenty years ago, the economic policy regime was changed rather dramatically. Since then..........
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Bank pensioners warn of stir
.......Mr. Jain called for uniform medical scheme for retired bank employees. AIBRF further demanded family pension of bank retirees at a par with RBI and the government sector. The organisation also demanded that the benefits that the sixth Pay Commission extended to past retirees in the government sector be given to bank retirees as well.
ReTyred Assistance in issuing life certificates
...... had arranged in Thane (East as
well as West) for getting the life certificates signed and despatched to
the pension cell, BKC, Mumbai. This was arranged on Saturday
16th .......
Read.......
Read.......
Shortage of coins hits Barak Valley
.....Meanwhile, when asked about the shortage of coins in the city and in the valley as a whole, Ravi Kumar, Assistant General Manager of United Bank of India’s Silchar branch said “we cannot provide coins unless we get coins from the Reserve Bank of India. Further, Kumar said that camps were organised in 2012 to distribute coins and also the UBI had distributed coins during the KVIC Khadi Mela earlier this year. Moreover, as lead bank in the valley, UBI had informed the RBI of the coin crunch in the Valley, but no response has come so far.........
Coins now become a rare commodity
....Intriguingly, banks in the district are not keen on stocking coins while enterprising beggars are fishing in troubled waters and collecting a sum of Rs 15 for Rs 100. To address the shortage, coin-dispensing ATMs should be set up in Mahbubnagar as is the case in Hyderabad, said one J Sriramulu of Kothur. RBI is to be blamed for the shortage of coins, said one bank manager on the condition of anonymity. Since the intrinsic value of coins is more than their face value, RBI has reduced production of coins of small denominations, he said........
Fraudsters misuse RBI’s name
Fraudsters are sending out chain mails in the name of Reserve Bank of India to internet users, offering them lottery winnings, funds from abroad and tax refunds. RBI's chief general manager Alpana Killawala confirmed that the bank has been receiving several complaints from people who have deposited some money in the hope of receiving some windfall gain, only to be duped...............
Now, you can withdraw money from the neighbourhood grocery
....“There are more benefits. As most traders have higher cash-flows, they showed preference to dispense some cash back into the system, reducing the need to deposit it back in banks,’’ the SBI official said. From a bank’s perspective, this will reduce pressure on ATMs as people withdrawing smaller amounts might now prefer to do it from a next door grocery rather than going to ATM. This would mean that frequency of replenishing ATMs with cash might come down for banks. The idea of opening up PoS terminals for cash withdrawal was floated by the Reserve Bank of India a couple of years ago...........
RBI employee met with ATM mishap
One of our colleague Mr.R.Seetharaman at RBI
Chennai was robbed day before yesterday. The incident is described in the
subsequent lines. You are requested to spread a word about this to your friends
and other colleagues. It might save someone.
Our friend was walking towards Parry’s corner
through RBI Subway and suddenly he heard a screeching sound behind him. As
he turned around he found two young bikers fallen on the road, trying to pick
their bike up. These youth immediately turned aggressive and started shouting at
him and started blaming him for their accidental fall. They accused our friend
of jaywalking which resulted in this accident and their getting injured. Our
Friend tried to defend himself saying that he has not done anything wrong
rather it is the bikers fault. Finally, the bikers told him that he is of their
fathers age and they don’t want anything from him only he should get them
vaccinated with Tetanus injections. Rather they told that they don’t need money
from our friend for these injections, our Friend should just come along with
the youths and get these vaccines injected and pay the doctor himself.
Our Friend proposed to take them to Apollo
hospital but the youth countered saying why waste time unnecessary and that they
knew a doctor near the corner who will do the same. Then they requested our
friend to sit with him on the bike. Our Friend complied and he was made to sit
in between.
The moment these guys started the bike. Two
more bikes with two ruffian looking youth came on each side of the bike. The
youth sitting behind our friend told him that these guys are thieves and he has
a knife pointing on his back , if he will make even a little bit of noise they
will stab him. They further told him that they intend not doing any harm to him
and just want some money and asked our friend to hand over his wallet. They
further took our Friend to an isolated ATM without a guard and asked him to
withdraw money and give it to them. None of these six ruffians entered the ATM so
that their pictures cannot be taken by the ATM camera. Finally when our
colleague handed over the money these guys fled away.
A similar incident happened two days back at
a Bangalore ATM where a middle aged lady was robbed and assaulted inside an
ATM.
You may note and also advice all your
near and dear ones
a) Not to carry
ATM cards in their person when not required.
b) Carry
ATMs cards only when they intend to withdraw money from ATM. Further use
ATMs which are inside official premises like Bank or other safe locations where
Guards are normally present. Withdraw money during peak hours when people are
around.
c) Use
net-banking as much as possible. Keep one main account and other subsidiary
account from which to withdraw cash. Transfer money from Main account to
subsidiary account as and when required.
d) Ladies can
wear bare minimum jewellery while coming to office and go in groups after
office hours or raise an alarm if suspicious people approach them
e) Generally to
avoid walking alone after sunset in sub-ways and lonely/dark patches.
- Venugopal M.K / Chandraiah B
I contacted Mr.Seetharaman of Chennai
office. He said that he was completely cornered by the gang of goondas,
who took him to one of the side streets in Broadway. Initially, it happened not
at Subway near Chennai office but near Broadway Bus Stand atound 6.30 PM.
Although there were only two goondas intially, they were joined by a gang and
in all 6 to 8 people were there, who threatened him and forced him to withdraw
money from ATM and decamped with the booty. Seetharaman was saying he was
simply taken aback and got so much scared that he did not know how much money
he withdrew from the ATM. I think ATM for withdrawals, there is a limit. So
they made to him withdraw repeatedly, Seetharaman mentioned that he came to
know only from the printout from the ATM later on that in all a total sum of
Rs.80,000 was withdrawn. Perhaps, they must have been monitoring Seetharaman's
earlier visits to the ATM and a lot of planning has gone into this episode.
When I asked him as to why he did not lodge
complaint with the Police Authorities, Seetharaman said that he was so scared
of their threat not to go to Police. He also did not note the numbers of the
bikes. When I asked as to why there was no public on the road, he said that by
6.30 PM, the office rush was over and there were only few people waling along
and only vehicles were moving. Moreover the gang took Seetharaman to a secluded
place in one of the side streets without much public movement. Seetharaman still
seemed so scared about the threat and he thanked God that he was not subjected
to any physical harm. This happened on Tuesday last evening, On that same day,
the Bangalore ATM attach took place.
The episode looks very much movie type. I
wish Amma's government takes deterrent action against such waylaid robbery.
Seetharaman's mobile number is 9444327774. He added that the gang took away his
mobile also. Later Seetharaman took duplicate SIM card by deactivating the old
one.
- S. Srinivasan, Cochin
RBI subway had been a place of insecurity even earlier when
there were no ATMs.Many ladies have lost their chains and bangles.A
thief who missed a green necklace threatened a lady to wear the necklace
on some other day and relieved of her of the jewel.For fear of life,
that lady also handed over the necklace to him. Not only RBI subway, all
the subways come under the same
category.For fear of thieves passengers cross railway lines and get involved in accidents.
- Vathsala Jayaraman
A danger at any time - A.Seshan
....... Common sense would suggest that since ATMs carry cash they will always be the target of criminals. As a result of credit cards, debit cards, online banking and ATMs most of the transactions are taking place away from branches, saving costs for banks. But bank charges have been going up. Banks can certainly afford to allot security staff at ATMs. If they are still avaricious then they can charge a flat rate of Rs 5 on each ATM transaction. Also,............
ATM attacks
It's any time money not just for depositors but also for thieves
If India puts not just a man on the moon but also the first ATM, the next day's headlines could announce that the money withdrawn by the country's first lunar bank customer was swiped seconds later by an anonymous compatriot who had managed to get there on his own steam.........
Read - TOI
Police shut down 1,037 ATM kiosks
.As the 4 pm deadline expired, a reality check revealed that most ATM kiosks were still unguarded. The crackdown began around 7 pm, with local police inspectors put in charge of shutting down all non-complying ATM kiosks in their jurisdiction. By late night, at least 1,037 ATM kiosks were shut down across the City.......
Security gaps in transporting cash between banks in Kerala
........ the issue of security measures while transporting money between bank branches has also come into focus. Despite the strict norms by the RBI, there has been laxity on the part of some banks in adopting security measures putting at risk the safety of the bank personnel who do the job of transporting money............
Number of NBFCs declines, but assets rise marginally
......Though the number of NBFCs in business declined, these companies increased their total assets and net owned funds marginally. During 2012-13, the consolidated balance sheet of NBFCs-D expanded marginally by 2.2%. On the liability side, borrowings from banks declined though they were still the biggest source of funding for NBFCs-D followed by debentures and public deposits. “Among NBFCs-D, while the balance sheet of asset finance companies grew, that of loan companies shrunk,” the report noted...........
Poor credit appraisal responsible for rising bank loan frauds: K C Chakrabarty
......Frauds pertaining to loans make the majority of diversion of funds (64%), following are technology related frauds and finally KYC (know your customer) frauds. Examinations have revealed that the number of large value fraud cases — involving large sums of Rs 50 crore and above — has grown 15-times. Chakrabarty has founded appraisal standards for bigger loans sloppy...........
Banks reduce dependence on short-term deposits
Indian banks have often been pulled up by the RBI for borrowing short-term money for long-term lending purposes — known as asset-liability mismatch in banking parlance. While the problem persists, banks’ dependence on deposits with maturities of one year and below has come down significantly from a year ago, notes the RBI’s report on Trends and Progress in Banking...............
PIL alleges Rs1,500 crore irregularities in co-op bank
......Another allegation is that MDCCB kept Rs 1,000 crore with Madhya Pradesh State Industrial Corporation as fixed deposits but it failed to get the principal amount back and waived Rs 150 crore as interest without the permission of the Reserve Bank of India and the National Bank for Rural Development (NABARD). Representations to RBI and NABARD did not get any response and ............
Investing in Public Sector Banks Is Now Riskier Than Private Sector Banks: RBI Annual Data
Public Sector banks have traditionally been considered as a safer option by investors and depositors as compared to private sector banks. This assumption is not based on P&L statements, but on a perception that in case something goes wrong, government will be there to bail them out. However, looking closely at the RBI annual data for all major banks in India, which has recently been released, gives a totally different story...........
Read.....
Read.....
AIBEA opposes RBI move to grant new bank licenses to private entities
.....Mr. Venkatachalam criticised as “retrograde” the RBI guidelines over foreign banks. “RBI in its guidelines allowed foreign banks to take over our domestic banks even they do just over 3 per cent business in India. This should be withdrawn...We need further expansion of banks and strengthening of PSUs,” he added........
Sure failure
.....The committee is headed by a former governor of the RBI known for his socialist and conservative leanings. So it is likely to choose the most boring names out of the list that confronts it. If everyone that has hitherto been shortlisted is given a licence, the number of banks could almost double; the actual increase is likely to be smaller. Licences are only the first step; the new banks will then have to find properties that can attract customers, staff that can be trusted with money, and depositors who are prepared to move from the banks they are familiar with. All this is going to take time; so it is unlikely that the banking structure of India will change much in the next decade. Whatever competition emerges will be muted...........
No move yet to get RBI licence for TSB
.....Simplification of banking procedures and revision of interest in 1973 catalysed the growth of the bank. There has been a stable rise in the deposits since then and this has increased the resource position of the government too. The RBI licence will put to rest rumours of the bank becoming extinct and also lend more credibility to its functioning........
Why SBI’s first woman chief is called chairman
When
Arundhati Bhattacharya became the first woman to head the State Bank of
India in its 207-year history, there was some dilemma internally on how
to address the new chief. Some of the initial communication chose the
neutral term ‘chairperson’. But subsequently there were instructions
that she was to be referred to as chairman. Some believed these were
instructions from the top. But the choice of designation had more to do
with legalities. It turns out that the SBI Act of 1956 does not
recognize any designation of ‘chairperson’ and the legal eagles in the
bank decided the bank’s first woman head should stick to chairman.
TOI
CBI registers Rs 100 crore case against Dy MD of SBI Shyamal Acharya
...CBI sources here said a team of Economic Offences Wing in Mumbai has registered a case against Deputy MD Shyamal Acharya who is also the head of Mid-Corporate wing of the Bank, former Assistant General Manager K K Kumarah and a businessman Piyush Goyal for alleged graft. A senior SBI official said the bank is assessing the situation and will react only after getting complete facts......
Recruitment of Chief Executive Officer (Society/Trust for RSETIs & FLCCs) on Contract basis
Central Bank of India, a leading Public Sector Bank, with Pan India Branch Network of more than 4350 branches, with total business of more than 400000 Crores and driven by talented work force of 40000 + employees, is looking for Retired General Manager of Scheduled Commercial Bank/RBI/NABARD & Other Financial Institution having experience of working in Priority Sector side of banking.........
Bric and mortar desirable than net
My View on "Rs 3,652 crore lying idle in bank accounts":
RBI has instructed the banks to upload the list of account holders with unclaimed deposits on banks’ websites with regular updates. Some banks also send periodic reminders to account holders but hardly a few respond. As a very small percentage of people have access to Internet in our country and as the amount involved is huge, much of it belongs to poor, illiterate or less educated, it is suggested that RBI may instruct all banks (public, private sector, co-operative..) to very conspicuously display in each and every bank branch a List of Account Holders With Unclaimed Deposits (in the books of the branch): Name of Account Holder/s ( in full) ; Nature of Account (SB.FD,CD) and the (simple) procedure to claim the amount/ revive-reactivate the ‘dead’ account. (Not to mention amount for reasons obvious).The Notice to be displayed should be in the Regional language and contain a request to all acquaintances/friends/
- R.G.Nakhate
Expose defaulters who owe banks over Rs 1 crore, union tells Govt
KOCHI, NOV. 24: The All-India Bank Employees Association, which will observe December 5 as an ‘All-India Demands Day’ to highlight the threat of bad loans to the banking sector, has urged the Government to publish the names of all loan defaulters who owe banks more than a Rs 1 crore. The association also wants the Government to make wilful default of bank loans a criminal offence, and bring changes in debt recovery laws to speed up recovery of loans............
Your wait for that big I-T refund just got longer
If you are expecting a huge income-tax (I-T) refund, you may have to wait a bit longer than you earlier thought. To limit the government's fiscal deficit for the financial year at 4.8 per cent of gross domestic product (GDP), despite rising subsidies, the finance ministry has decided to go slow on I-T refunds, besides slashing Plan expenditure substantially........
Seer ready to deposit Rs 10 lakh as surety for another gold hunt
KANPUR: The seer who dreamt of a goldtreasure buried on the premises of a fort in Unnao district — and was proved wrong — has offered to dig again on a personal security of Rs 10 lakh and even court arrest if further excavation is also a failure. .........
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