.......There is need for an explicit policy statement that there would be a break from earlier policies and public sector banks will no longer bail out failed banks. The system should no longer countenance profits being private and losses being public. If such a policy is cast in stone, new banks will have to earn the depositors’ trust only by hard performance. A prerequisite would be that the regulator would put a premium on prompt corrective action, which would be made public, bearing in mind depositor protection and as such it would lead to a more effective regulatory system................
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, December 2, 2013
1991 and 2014 - Dr.Subir Gokarn
......However, I would like to go beyond these perspectives and argue that there is an essential similarity between the two situations, which is critical to the prospects for the economy after the elections. In 1991, given the state of the economy leading up to the elections, the reform agenda was a matter of life and death. In retrospect, whoever came into office at the time would have been compelled to take many of the measures that the Congress government eventually took. That they were persisted with and......
Financial-sector reform in India
..The vicious cycle of borrowing, inflation and gold partly explains the 22% slump in the rupee between May and August. It has since recovered a third of its losses, partly thanks to Mr Rajan’s soothing presence. Mr Rajan’s liberalising vision was outlined in an official report that he wrote in 2008, when he was an academic. It was politely ignored at the time by an establishment that was enjoying a moment of Schadenfreude as Western countries which had hectored India saw their banks implode. Now he is in charge at the RBI he wants to create a blast of competition that will spread finance to more Indians...........
Guiding force retired..............
Shri S.V. Raghavan demitted highest office as Regional Director, Nagpur on November 29, 2013.
Till his retirement, he was also looking after the affairs of CAS. He has also
served as RBI Nominee on the Board of Indian Overseas Bank (IOB) for more than
three years. He has a very rich experience and knowledge of working in various
departments of the Bank in various capacities. I had the honour of assisting him
as his PS from March 2012. Though I had a very short stint with him as his PS,
his teachings and guidance has certainly fuelled my knowledge further. While
discharging my duties as PS, I have always tried to put my best and accomplish
the assigned task effectively and effeciently in a given time. I wish him Happy, Healthy and Eventful retired life.
- A.N.Patil, Private Secretary
My younger brother - My boss
My View on "Bhoria : The Effective Administrator":
I was also fortunate to work under Shri Bhoria Sir. in Bangalore for about two years -1998-2000. He was the currency officer and I was Asst. Cy.Officer. I was almost like a PA. It was during his time Bangalore office purchased Note Counting Machines and gadgets to detect Fake notes. He was the one who motivated me to put up office notes in Hindi and I also got a prize on Hindi day. I did not feel that I am working in a office. He was like my younger brother, though he was my boss. He always used to praise me for the good work done. I relish the memmory of working with him. I take this opportunity to wish him a very very happy and peaceful retired life. I would like to convey my wishes directly to him. I may kindly be given his contact phone/mobile No.
- D.KASTURI, Manager (Retired), Bangalore
Regards to PS Fraternity
Dear Mangeshji,
I retired from the
Bank's service as at the close of business on November 29, 2013. I would like to take this opportunity to express my sincere
gratitude and thanks for your guidance and support in
discharging my duties to the entire satisfaction of my superiors.
Kindly extend my thanks and regards to our PS Fraternity for their
help, which I cannot forget till my last breathe.
- S.K.J.Iyer, Retd. Private Secretary
to Regional Director, Thiruvanantapuram
Letter to Dr. Bhalchandra Mungekar
Please read letter to Shri Bhalchandra Mungekar- MP and our Chief Patron by Shri Talekar GS- Mumbai on issue of Pension Updation.
- L R Parab
Police takes on circulation of fake currency notes, banks alerted
......The state police has also been issued an alert on the increasing number of fake notes being deposited in banks by various people which could also have a connection with smugglers and law-offenders. RBI officials and seniors from the police met recently to decide on some key issues. It was decided that is any ATM releases fake currency notes, the customer would not be bothered and interrogated.............
RBI to launch awareness campaign for not writing on currency notes
......The Reserve Bank aims to create awareness among people about not writing anything on the currency notes and that they need to keep them clean, Deputy Governor K C Chakrabarty said on Saturday. However, when asked if banks would stop accepting such notes from Januray 1, 2014 onwards, he said: “If anyone writes anything on the currency note at the front of a banker then he may deny to accept that note so that this mistake may not be repeated again by that person.” “Our aim is to create awareness among the people that they should not write anything on the currency notes and need to keep the currency notes clean,”..................
Bank unions demand 5-day week
......The United Forum of Bank Unions (UFBU), in its memorandum to the Finance Minister, said not only Central and State Government ministries/departments but even the Reserve Bank of India follow the five-day work schedule. “Already in the banking sector, with the advent of technology-based services, proliferation of ATMs, Internet banking, etc., the delivery channels for customer services in the banks have multiplied manifold. Hence, it is possible to introduce five-day banking.”..............
Global ICT Policies And Strategies And Indian Perspective
..........The Reserve Bank of India (RBI) is slow in this regard even though RBI has acknowledged risks of e-banking in India. Although RBI has recently directed that all banks would have to create a position of chief information officers (CIOs) as well as steering committees on information security at the board level at the earliest yet these recommendations have not been implemented by the banks. This is so despite the fact that .......
Un-bankable institutions
.........In my view, something else is necessary for the whole of the banking system. It must be forced to recognise not only what a large part of the national economy it constitutes, but also the duty which that imposes on the system, and on individual banks and those who run them, to provide an honest, and efficient, and trusted service............
PSU banks stare at staff crisis
........In the next fiscal, PSU banks could face a 10-15 per cent shortfall at higher levels that include senior managers and those ranked above, initial estimates by the management consulting firm reveal. These projections come at a time nationalised banks are focussing on opening branches in rural and semi-urban centres as part of their financial inclusion programme. Further, the Reserve Bank is likely to grant banking licences to new entrants in January. This could lead to higher attrition in both PSU and private sector banks at the higher management level as the new entrants are likely to poach experienced personnel from the existing lenders...........
Out of the ring
...........The Tatas’ decision to retire may have something to do with the vibes emanating from the committee; or it may owe itself to the restrictions the RBI has placed on the ownership of equity. They are essentially designed to ensure that the new banks would belong to the applicants only in name: the shareholdings would be so fractured that the licensees would have little voice in management. That is understandable in view of the RBI’s lack of fondness for businessmen. But its conditions are so dire that the new banks may have no one to run them: that they may become the playthings of middle managers, and could well generate enormous scandals. That is something that the Tatas could do well without. ........
Different banks, new regime
... “The situation may be reviewed after a certain degree of success in financial inclusion is achieved and RBI is more satisfied with the quality and robustness of the risk management systems of the entire banking system.” The financial inclusion drive has had limited success and I do not know whether RBI is satisfied with the risk management systems of banks but it seems that both the government and the banking regulator are keen to have different kinds of banks to encourage innovation and meet the banking needs of a nation of 1.2 billion people.........
Punching PIN must for debit card transactions from Dec 1
Debit card holders will from Sunday be required to punch in their PIN numbers every time they use the card, a move aimed at minimising frauds. In June, the Reserve Bank of India had extended the deadline for the implementation of mandatory PIN punching at Point-of-Sales (PoS) and merchant outlets till November 30 following representation of banks......
Chit Fund Scam: Patra Panel Gets 8 L Affidavits
.....It issued notices to Chief Secretary J K Mohapatra and Director-General of Police Prakash Mishra in this connection, while the Finance department, in turn, has called for detailed information from a large number of agencies, including Reserve Bank of India, Securities and Exchange Board of India (SEBI), Stock Exchange as well as Economic Offences Wing (EOW). The commission, so far, has received a whopping eight lakh envelopes related to the chit fund scam. Each envelope contains one or more affidavits and the panel’s office is busy registering and sorting out the same so as to take forward the course of inquiry........
Financial Terms Simplified
This book contains brief definitions for terms used in banking, insurance, and finance, with the terms listed in alphabetical order. Common abbreviations have also been included at the start of each chapter. This is a suitable reference book for anyone who wants a simple explanation for complicated jargon...........
One inch at a time
..........The fact is that neither the RBI nor banks have any control over design, marketing, advertising and after-sales of third-party products. How can bankers treat customers fairly when, as per a tie-up with an insurance company, they are supposed to sell a life insurance product that will give, say, a five per cent return and offer minimal insurance cover? They will hardly apply their minds to the question of whether this is in the interest of their customers - unless, of course, the RBI first creates elaborate rules (the spirit of which should be "caveat venditor") and then penalises a few banks that are found to be flouting them. The RBI is far from doing this. It seems utopian to first allow banks to blindly sell anything they can - often turning tellers into hustling salesmen - and then to suddenly ask them to treat customers fairly......
The great bank robbery
Bank robbery always makes big news. But, not when it is craftily conducted by clever corporates. Corporate robbery of banks even carries a fashionable nametag called ‘non-performing asset’. It refers to loans that have gone sour and are not recoverable. Banks simply write them off. Unlike other categories of bank thieves who, if caught, face prosecution under a host of sections and sub-sections of the Indian Penal Code, big-time corporate bank robbers mostly go scot-free although several of them are even known to be habitual loan defaulters.......
Read......
Read......
SBI Graft Case : Lessons To Be Learnt
...The above news was shocking but did not surprise much as every banker is aware that corruption has seeped deep into banking sector too. Although a majority of the bankers are still honest, yet last few years have seen erosion in the percentage of honest bankers. The above news has created a big dent in the reputation of SBI. Now question is, what are the lessons to be learnt from this episode. I feel the following lessons are to be noted by all bankers.........
United Bank CMD’s NPA provisioning backfires
Most
PSU banks have been hit hard by rising bad loans during the current
fiscal, but none as badly as United Bank of India. The Kolkata-based
bank reported a Rs 490-crore loss in the second quarter due to high
provisions for non-performing assets (NPAs). One reason bankers cite for
this spike in loss is the “new CEO effect”. Typically, on taking charge
in PSU banks, a new CMD immediately makes higher provisions than usual
for bad loans and other liabilities, thereby depressing profits. This
prepares the ground to report a sharp turnaround in profits after a
year. This time, however, the higher provisioning made by
United Bank’s CMD Archana Bhargava, who took charge in April, appears
to have backfired. Alarmed by the sharp rise in NPA, the government has
restricted grant of new loans and has placed the bank under scrutiny,
subjecting its bad loans to a forensic audit. This will hurt business
and make it difficult for United Bank to grow its way out of its
problems.
TOI
TOI
Raghuram Rajan Now Says What ABS Said Two Years Back - Bank CMDs Openly Defy RBI Hints
.....Now Mr Raghuram Rajan with the backing of government is better placed and has publically confronted CMDs of Banks as to why they are not listening to his hints expressed through monetary policy. It seems, CMDs have become too thick skinned and feel that they can defy anybody, except some political bosses (who watch their interests), even if their policies are against the national interest. Sometimes I wonder as to why such financial wizards, who have reached the posts of CMDs, fail to take clue from RBI policies, whereas some people like me who could reach only AGM after over 30 years service, can easily pick up such hints. I do not find any reason except that it is due to their protection of personal interests and apathy towards national interest......
Read......
NPA reduction, a key issue
......Elaborating on just a few of the above, the RBI report points out that the asset quality of banks is an important indicator of their financial health. It also reflects on the efficacy of their credit risk management and recovery environment. Not surprisingly, the asset quality of banks decreased significantly during the year .The level of stressed assets (both NPAs as well as restructured assets) went up. Banks should strengthen their due diligence and also follow whatever guidelines the RBI and the Government have formulated to mitigate this pressing problem. Credit appraisal and post-loan monitoring are other crucial steps which need to be improved upon. The report makes a number of suggestions to spruce up..........
Mahila Bank targets business mix of Rs 60,000 cr by 2020
....The bank has launched a few women specific products and is in process of launching few more, she said. Some of the special products to be launched shortly include loans for setting up catering services and hygienic day-care centres for children of working women, ..........
How banks can improve product distribution
The
RBI is trying to put in place a regulatory mechanism for thirdparty
product (TPP) distribution by banks. There is considerable ire directed
at banks for ruthlessly pursuing profits by distributing insurance and
mutual fund products while shortchanging their customers’ interest.
There have been calls in the media to ban banks from distributing
third-party products. However, killing a low-cost distribution channel
would hurt the investor interest even more. How does TPP work and what
needs to change?..........
Red - ET
Red - ET
Bank officers’ body calls for better security at ATMs
The All-India Bank Officers’ Association (AIBOA) has appealed to its affiliated units and State committees to urge the respective bank managements to provide security and safety to customers transacting through ATMs...........
Guards at ATMs aren't enough
.........Experts say security guards at ATMs are of little help. This is because most guards are aged, untrained or ill-equipped. At best, they may have small batons. On condition of anonymity, a manager at a security agency said the company's security measures were based on the instructions of banks. Many banks such as State Bank of India (SBI), HDFC Bank and ICICI Bank sought guards for 24 hours, while some banks sought guards only for 10 pm-to-6 am shifts, he added...........
Bangalore: ATM Attacker Keeps Cops on Toes
......Auradkar said he had been telling the banks to get serious about the dangers at ATM kiosks.” In August and September, we held meetings with the chief secretary, DG & IGP and the executive director of the Reserve Bank of India. In all three meetings, appointment of security guards at ATMs was the core issue,” he recalled. Responding to news reports appearing on Thursday, Auradkar clarified he had not relaxed any security regulations for ATMs. “ATMs in places like malls, which have security guards at the entrance, can operate without guards as visitors are frisked at the entrance,” he said..........
As bitcoin rises, regulators scramble for norms: report
.. Bitcoin has already become the world's most expensive currency with a per unit value of over $1,000, or about Rs. 63,000, and it is posing all possible questions to regulators in India. These questions include whether to regulate the currency, what should be the norms, or who should regulate it. "As of now we don't regulate bitcoins, but are observing developments," an RBI spokesperson said when contacted.................
Agriculture to the rescue
.....If the economy still did well despite this, it was thanks to agriculture and a 10% hike in growth in the financing sector, largely a factor of interest rates going up as well as NRI deposits looking up. Given the buoyancy in RBI’s swap-based inflows, we can expect more buoyancy under this head in the third quarter as well. What of the future? While agriculture will still give some more of a kick to growth, the surprise is services slowing despite the relatively good growth of software exports. ......
Youth Employment Programme an Apolitical Initiative: Omar
...........He said the Reserve Bank of India has categorically directed the banks not to demand any collateral guarantee for any loan under Rs 10 lakh and asked the youth that if any bank manager asks them this kind of guarantee they should inform him through Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) so that appropriate action could be taken...........
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