..........The second is gold, and there we need to see a significant inducement for people to shift away from physical investment in gold and even if they want to continue to invest in gold, it creates financial or what I would call 'dematerialised' alternatives and there are options available which we need to not only design and put in place, but also sell quite aggressively. The marketing aspect of this is very important............
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, November 26, 2013
India’s Gold Dilemma
...The gold policy seems to be working, at least temporarily, as imports decreased 74 percent year-on-year in August. In addition to implementing other policies such as new restrictions on outward direct investment by Indian entities, India has made strides in decreasing the current account deficit and recovering the ailing rupee. However, foreign investors have started to question the Reserve Bank of India (RBI), whose efforts to promote stability are hurt by ever-changing policies at a time when the currency needs credibility and predictability...........
‘Banking one of the best industries to start career’ - Vaibhav Chaturvedi
JAIPUR, NOV. 25:
India is gearing itself for the future challenges and transforming itself for the drastic changes which are taking place, said Vaibhav Chaturvedi, Deputy General Manager of Reserve Bank of India. Chaturvedi was addressing students of JECRC College ‘Post Banking Crisis’. The lecture was organised by Business Line Club in association with Cairn India, the fastest growing energy company in the world...............
Would foreign banks prefer subsidiaries to branches? - A.Seshan
......What are the merits and demerits from the point of view of banks? The advantage is near-national treatment on a par with other banks of local origin in the matter of opening branches without RBI approval, subject to certain restrictions. Even as it is, under a World Trade Organisation agreement, RBI is required to give foreign banks 12 new permits to open branches every year, including those given to new entrants and existing lenders. Would national treatment also imply all the other features such as inclusive banking, no-frill accounts and so on? The RBI needs to clarify the point...........
RBI to launch CPI-indexed bonds by December end: Khan
....."Guidelines will be out soon...We are likely to launch the first tranche before end of December. We will come out with details (quantum)," RBI Deputy Governor H R Khan said on the sidelines of a National Housing Bank event. "This year it should be between Rs 10,000-15,000 crore (wholesale price and consumer price indexed bonds) but exact amount will come out. This is part of overall borrowing programme," he said.............
Obituary
Mr. Bhanu Toyle, Retd. Dy. Treasurer, RBI passed away on 23.11.2013. No.4/8, Velan Nagar, Aruymbakkam, Chennai (Behind Arihant Towers). Mobile: 98410-40000 / 72992-80998
Cyber criminals use RBI governor's name to lure victims
In case you have received a mail from Reserve Bank of India Governor Raghuram Rajan promising you Rs 2.05 crore, beware! Cybercriminals are sending out e-mails posing as Rajan and promising recipients a payment. In return, they ask recipients for "fund release order fee charges" of Rs 9,500, besides other personal information like residential address, mobile phone number and bank account details as well as the pan card. ...........
Is One Day Strike Sufficient For One Year Delay by IBA in Starting In Right Earnest the 10th BPS Negotiations
..............It seems, UFBU had conducted the meeting on 20th November, 2013 at Chennai without any preparations or else each Union must have been asked to bring their own agitation programme for discussions and finalization, as the stand of IBA is known to all Unions since October, 2013, when it befooled them by saying that IBA does not have the mandate to discuss the details of offering the wage revision percentage. Are UFBU leaders are so busy that they could not even prepare an agitation programme for discussion in the meeting on which lakhs of rupees must have been spent on travel and stay...................
Recruitment of Assistant Managers in Bharatiya Reserve Bank Note Mudran Private Limited
Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL/Company), a wholly owned subsidiary of Reserve Bank of India presently having its presses at Mysore in Karnataka and Salboni in West Bengal with Corporate Office at Bangalore invites applications from willing candidates for the posts of Assistant Manager in the Company.........
Retired bank staff seek pension hike
.......According to Bhat, those who retired in 1995 are getting the same basic pension. Even after 18 years, there has been no revision in the pension. A clerk who retired in 1995 gets a monthly pension Rs 4,000, whereas one who retires now will get Rs 13,000 a month ,.....
Mahila Bank seeks momentum with new branches, 9% FD rate
......Going forward, the bank plans to have at least 25 branches by the end of this fiscal and plans to add at least 100 branches annually. The plan is to have a branch in each of the state capitals and the bank is in the process of identifying the places. The bank is tapping human resources from other banks who are joining on deputation for three years. Out of the current staff strength of 100, more than 60% are women. The basic philosophy of the bank is to promote entrepreneurship among women by offering them financial assistance at subsidised rates. It does not, however, mean that the bank will not accept deposits from men. To make itself attractive for its customers, the bank has allowed ten free transactions at non Mahila Bank ATMs, double that offered by others........
SBI asks deputy MD to go on leave, sets up probe panel in graft case
... “We have been informed by the CBI that Shyamal Acharya, deputy managing director and group executive (mid corporate groups) of our bank is being investigated. So, Acharya has been asked to proceed on leave." "We have also constituted an internal committee comprising two senior managing directors to investigate internally,.............
Careful at SBI
...........This is where both the banks and RBI need to step in to give some perspective. Analysis needs to be done, for instance, to see what portion of loans is in trouble due to government delays—several years to get an environmental clearance, for example. Once this is done, for instance, it will be relatively easier for bankers to sanction recast proposals in such cases. More important...........
SBI deputy MD under CBI watch – a Rolex & an Omega for a loan?
......Though unrelated, the move comes after RBI deputy governor KC Chakrabarty has made several presentations on how PSU bankers are not doing their jobs well. According to Chakrabarty, while the PSU banks’ share of loans remained at a little over 75% between March 2009 and September 2013, their share of bad loans rose from 64.5% to 86.1%. RBI is also in the process of finalising ways to incentivise bankers for recovering bad loans while also penalising them for their role in ballooning NPAs.........
Banks go on rural overdrive, but profitability a worry
....“Right now, rural banking is not viable because the government is pushing it as a social responsibility. People in rural areas withdraw almost the entire amount and still prefer to transact via cash. Banks make money via transaction fees,” said Parekh. The numbers tally will RBI estimates, which suggest that only 2% of no-frills account holders have used the overdraft facility offered with these accounts. At the end of March 2013, only 40 lakh accounts availed the overdraft facility out of 18.2 crore accounts, shows RBI data..........
RBI asked if withdrawal norms in Amanath bank can be relaxed
The Karnataka High Court has directed Reserve Bank of India (RBI) to inform the court by December 9 whether the restriction on withdrawal of deposits could be relaxed by allowing higher withdrawals by the depositors of Amanath Cooperative Bank (ACB). Justice A.S. Bopanna issued the direction during the hearing of a batch of petitions on various issues related to the bank.............
PSBs woes
.....The author's call to public sector banks (PSBs) to reinvent themselves by changing their culture of functioning is appropriate. But the moot question is: can they do it? Would their political boss give permission? The ills of PSBs can be traced in large part to their parentage...........
RBI directions on FD, savings account interest not followed
........RBI should, therefore, not only be a regulator of banks but also play a developmental role of championing the cause of bank depositors by persuading the government to offer tax incentives which can not only give a boost to the banking industry but also help in stepping up the growth of gross domestic product (GDP) of our country as well.
By all means, go for the gold
.......The government borrows huge amounts from the market to meet its increasing expenditures, such as enhanced salaries to government servants. This leads to an increase in interest rates. The Reserve Bank prints more money to keep the interest rates down. This printing leads to inflation. The same amount of goods produced in the economy is chased by a larger number of currency notes. Thus, your loss is government’s gain..........
Which inflation should the RBI target?
.......Clearly, the RBI should not target inflation measured by WPI alone. A more relevant operative target for monetary policy – as it is for many central banks in countries such as Canada, Finland, Thailand or South Africa – is core inflation. In India, core inflation – which can exclude fruits and vegetables, milk and edible oils – would measure the imbalance in the economy or the gap between ex ante savings and investment. Therefore, the RBI should at least use core inflation as a supplementary indicator while targeting WPI.
Bank unions flay debt recast cover-up of bad loans
The All-India Bank Employees Association (AIBEA), will observe 5 December as 'All-India Demands Day' to highlight the threat of bad loans to the banking sector, which it claims, has been made worse by banks recasting debt of even willful defaulters. The association wanted the government to make willful default of bank loans a criminal offence, and bring changes in debt recovery laws to speed up recovery of loans instead of allowing debtors to roll over bank loans........
RBI frowns on US dollar arbitrage deals by large companies
.While RBI's directives had reduced such trades by FIIs, there was very little the regulator could do when similar transactions were made by Indian companies that have sizeable exports, imports and foreign loans that can be shown as a genuine underlying basis for forward transactions (in the NDF market, participants do not need any such underlying basis for trades). Instead of raising the issue with companies, over which the central bank has no direct jurisdiction, senior RBI officials verbally ............
Read - ET.........
Chidambaram has a dual personality when it comes to inflation
..To conclude, this is the real reason behind the high inflation of the last five years. The RBI cannot do anything about it. And as far as Chidambaram is concerned, the least he can do is stick to offering one reason for inflation.
‘We Expect RBI to Hike Repo Rate Twice More: Richard Iley
......I
think the total policy under Rajan regime is going to be tighter than
what we saw under Subbarao regime. There has been a subtle evolution in
the reaction function of the RBI under the new leadership. The central
bank is now giving a lot of weight to retail price developments. RBI in
last five years has been rather numb nuts over the issue of food
inflation. RBI has set monetary policy stance largely according to
core-WPI developments. There has been a lack of...........
Indians cut back on overseas investments
.....It is a trend that should make RBI Governor Raghuram Rajan happy. Indians are cutting back on their investments and remittances overseas. According to RBI data, Indians sent a mere $75 million (Rs 470 crore today) abroad in August for investing in shares, property and education and as gifts for relatives living overseas. This is a third lower than the average monthly outflow of $115 million between April and July. Money sent abroad has fallen after five years of sustained increase...........
Police orders closure of over 1,000 ATMs in Bangalore
Bangalore Police has ordered the shutdown of 1,037 ATM centres in Bangalore. Following the brutal attack of a woman customer inside an ATM in Bangalore last week, the State Government had ordered banks to post security personnel and install CCTV cameras (both inside and outside) all ATM sites. The police had set November 24, 4 p.m. as the deadline for banks to meet the security norms...........
White label ATMs take banking to masses
......Since banks treat ATMs as a cornerstone of their alternate channel strategy, WLAs are intended to serve as an important medium of banking for consumers. WLAs have proved to be a useful addition to the existing banking network and is addressing the underpenetrated semi urban and rural market which till date had minimal or negligible access to ATMs, while providing more options for the masses in urban locations. With the expansion of the White Label ATM (WLA) network, customers can have access to basic banking facilities located closer to their home or place of work............
Ensure safety of ATM users: women’s panel
The government should draw up scientific guidelines for selecting locations for Automatic Teller Machines (ATMs) and bring out a legislation in this regard, State Women’s Commission Chairperson K.C. Rosakkutty has said. The commission would write to the Union Finance Minister and the Governor of Reserve Bank of India on the issue, she said. The Chief Minister would be requested to discuss the issue at the State-level meetings of banks.................
Banks rushing to beef up security
.....According to an official of a leading private bank, which has a number of unmanned off-site ATMs, banks should not be made liable for the entire security. “There is a cost angle to it, as each ATM will need three guards. If we are doing everything, then what are the police for? The cost will ultimately be passed on to customers,” he said............
Cash in on credit card reward points!
.......Different banks have different terms and conditions with respect to the use of points. Previously, credit card companies sent catalogues of items that one could purchase to redeem their points. The products on the catalogue were mostly overpriced and did not offer too much choice, making it quite unpopular among customers. Now, however, the scene has changed and customers are offered more options and better ways to redeem their points. However, some banks ...........
SEBI show-cause notice to HSBC
...........HSBC, which has now earned notoriety globally, has chosen to ignore Ms Krishnamoorthi’s complaints from the very beginning and continues to maintain a surprising silence. But the situation this time is very interesting. Although the Reserve Bank of India (RBI) is HSBC’s primary regulator, there is no turf battle involved. On the contrary, RBI will most probably weigh in on behalf of the customer for several reasons...........
Lending to hotels, convention centres can be infra lending: RBI
The Reserve Bank of India (RBI) on Monday said bank lending for construction of hotels with project cost of more than Rs.200 crore and convention centres with project cost of more than Rs.300 crore will fall under the category of infrastructure lending. Other.........
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