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Wednesday, September 10, 2014
Lap 2: Challenges for Raghuram Rajan - Dr. A.Vasudevan
Those who move the markets
Reserve Bank of India Governor Raghuram Rajan took charge of India's central bank when the rupee seemed to be in a tailspin while the country was facing runaway inflation. He stabilised the rupee and put up a more credible fight against inflation. These actions have landed him on the fourth annual Bloomberg Markets 50 Most Influential list, which will appear in the magazine's October special issue. He, however, isn't the only Indian banker on the list. The list also features State Bank of India Chairman Arundhati Bhattacharya. A selection of the 50 on the list:..........
Out at 70: RBI sets age limit for MD, CEO of private banks
......"It has been decided that the upper age limit for Managing Director & Chief Executive Officers (MD & CEO) and other Whole Time Directors (WTDs) of banks in the private sector should be 70 years," the Reserve Bank of India (RBI) said in a notification. This means beyond 70 years of age nobody "should continue" in the posts in a private bank, it said.........
Bank Employees stand for 25% Salary hike is just and sacrosanct ! : Complete book
...........The goal of this dissertation in this approach paper is to enhance the awareness of the bank employees and their well wishers to generate inquiring minds, with view of galvanizing strategies to settle the present impasse in the ongoing 10th bipartite negotiations. The goal is to prepare and merge their hearts and minds to resist, repulse the intransigence of IBA /Government combine in denying bankers just wage revision by considering their demand of minimum 25 % that too in pay slip components as against the tradition till 9th bipartite of settling wage load on establishment expenditure.................
Disrupted supply of new coin-bags creates increased premium in black-marketing of coins
...... It is indeed a sorry aspect that RBI cannot ensure adequate supply of coin-bags even after spending too much on overheads in setting up its subsidiary Security Minting and Printing Corporation of India Limited (SMPCIL) specifically for the purpose. If planners at SMPCIL cannot plan such simple ideas to ensure eliminating premium on coin-bags, then it is of no use to spend on such a subsidiary unit of RBI.
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aNOther apex institution???
My View on "How India compares on financial inclusion against ...":
A very interesting analysis. What is disturbing is, while some among the people responsible for policy formulation and implementation find time to respond in the media when personal issues are raised, very few responses we find on articles and comments like this from political or economic leadership who can clarify or defend policy. The handling of financial inclusion in the recent past has been, as if, it is the responsibility of public sector commercial banks. Such an approach weakens the existing infrastructure available for achieving the objective of financial inclusion. Cooperatives, NBFCs, NGOs and corporate are part of such structure. The existing institutional structure should be brought to the mainstream by providing regulatory support and making them functional in the present competitive environment. Please, please, do not come back with a suggestion for another apex institution to do this.
- M.G.Warrier, Mumbai
Open a Healthy Debate!
......Thanks to the vision of those who took over governance from the British, we have a strong foundation supported by a Constitution which has stood the test of time, a public sector which can shoulder responsibility and institutions, like the judiciary, Election Commission, Reserve Bank of India and CAG, which have withstood external pressures. One wishes, the new government musters enough strength and moral courage to open a healthy debate within the country on...........
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My View on "Reserve Bank to pick talent via UPSC-like test":
In the present scenario, the move to go for common-cadre of officers in RBI and making recruitment process more broad-based and professional is in the right direction. But, the hurry with which the RBI top management is trying to implement the well-intended measures may make its own path slippery. Till a decade back, RBI used to learn from its own experience and make corrections midway. The present move gives an impression that RBI has not learnt any lesson from the failure of its recent ‘Executive Interns’ experiment. One option to minimize damage could be to allow the existing staff (within certain age limit and having needed qualification) to migrate to the new cadre after testing their ‘fitness’ through an appropriate evaluation. Better still, would be creating a Financial Sector Service at national level, on the pattern of IAS and Tata Administrative Service (accepting the better features of both) which could be common for financial sector regulatory organizations and public sector banks including State Bank of India. Such service should first absorb the existing talent within the organizations and go for further recruitment after two or three years depending on need.
- M G Warrier, Mumbai
Beware: Citizens being robbed through bogus lottery emails sent in name of ‘Reserve Bank’
..........According to sources, several citizens have fallen prey to these bogus emails and continue to get trapped in the nefarious net. RBI never sends such mails: “No such emails are sent on behalf of the Reserve Bank of India (RBI) nor any lottery or prize amount is given by the Bank. The RBI has nothing to do with these emails,” asserted R Srinivas Rao, Public Relations Officer of RBI Nagpur.......
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Moneylife Foundation calls for a round-table discussion on ATMs usage and charges
..........Monelife Foundation has called for a round-table discussion on this issue at Moneylife Foundation Knowledge Centre at Dadar in Mumbai on 13 September 2014 between 2.30pm to 4.30pm. All citizens, activists and NGOs who wish to be part of this discussion and take this forward are invited to join the round-table. There is also a need to write to the RBI that any directive that leads to increased costs to the depositor must be discussed with bank customers, the largest stakeholders. Currently, banks have the freedom to decide their charges and interest rates without reference to RBI. So, if some banks found it prudent to curb usage or disallow third-party transactions, they could have gone ahead and done it without RBI’s intervention. So why the RBI directive?..........
E-Sentries Now Take a Swipe at ATM Burglars'
..........Integrated surveillance systems are being put in place to help banks receive alerts from ATMs across the country , be it someone breaking into an ATM in Palakkad or Ludhiana. All the monitoring happens from one point, depending on the company that sets up the system based on the bank's needs. The alert-based monitoring system is a software that buzzes an alarm for about 30 different kinds of activities inside the ATM, barring a normal withdrawal or other transactions. It detects attempts to tamper with the cash vending machine and any unusual movement inside an ATM such as a person staying inside for more than a few minutes -and throws up alerts at the control room. This helps someone......
Read - ET
Lords of financial crises
..........The International Monetary Fund (IMF) has managed to remain cloaked in secrecy despite being constantly in the public eye. As a multinational organisation with 188 member nations, the IMF is referenced in every financial crisis. Its biennial summits are attended by the who's who of global finance. The World Economic Outlook and the annual country reports are obsessively dissected. Yet very few people understand what the IMF does and how it does it.......
The Lehman moment
..........The firms raise large amounts either from the vulnerable sectors by promising unsustainable returns or even from the PSBs at lower rates and in turn, lend at usurious rates to the same sector. The consequences are disastrous as would be evident from the recent cases of Sahara or Saradha. The PSBs have to compete with these shadow bankers and in target-based lending, huge NPAs are inevitable. Not that the Reserve Bank of India or the Finance Ministry are not trying to address this problem, but the fundamental philosophy underlying the safe and sound running of the banks must be observed. The RBI Governor, Raghuram Rajan, has lamented the predominance of crony capitalism in the economy in general and the banking industry in particular. This must be faced squarely and with expediency. And yet one wonders how close the PSBs are to their Lehman moment.
Govt to collect services trade data on its own
............While the directorate general of commercial intelligence and statistics (DGCI&S) collects the merchandise exports and imports data, for the services exports and imports data, the commerce ministry relies solely on the Reserve Bank of India (RBI), which collects the data through the payments system. A commerce ministry official said the ministry has authorized various agencies for the pilot projects and the data will be collected under the supervision of the DGCI&S. “We had discussions with the RBI who also agreed that we should develop our own system of collecting services trade data because they rely on payment system to collect the same data which is not always foolproof,” he said, requesting anonymity............
Banks want repo facility on Saturdays
..........There other reason why banks wants the facility on Saturdays because of 95% cash reserve (CRR) requirement on a daily basis and 100% on the reporting fortnight. "CRR is required to be maintained at 95% on a daily basis. That being the case, I cannot afford take any chances. If there is a sudden big payment, I can take funds from the repo window at the end of the day. If there is no such window, I have to keep excess funds," she said............
World Bank warns of global jobs crisis
..............“As this report makes clear, there is a shortage of jobs and quality jobs. And, equally disturbingly, we’re also seeing wage and income inequality widening within many G20 countries, although progress has been made in a few emerging economies, like Brazil and South Africa,” he added. He said overall, emerging market economies had done better than advanced G20 countries in job creation, driven primarily by China and Brazil but the outlook was bleak. “Current projections are dim. Challenging times loom large,” said Twose.............
Bandhan Bank will usher in a new model in financial inclusion: CMD
..........“We will operate in a hub-and-spoke model,” says its Chairman and Managing Director, Chandra Shekhar Ghosh. While the nitty-gritty is yet to be finalised, Ghosh says he will bring about a new model in financial inclusion by connecting consumers, right from the large cities to the remotest of remote villages.........
Improving Capacity is Key to Financial Empowerment
..........A lot has already been said about the Jan Dhan Yojana; by the eloquent prime minister himself and then by advertisers, commentators and other worthies. It is phenomenal as far as communication and intent goes. It warms the heart to know that the bullet trains will not bypass the small hapless woman, but that there is a plan to empower her in plastic and reward points.It is difficult to argue with the potential of financial inclusion to significantly change lives and create long term, sustainable value. And yet, it will be a while before we know if the Yojana triggered or delayed financial inclusion.........
Read - ET
`The Worst is Over for Banking'
.............We have been working on how to integrate the two generations among the workforce.The challenge was to use the experience of old staffers while not killing youngsters' enthusiasm. All our team members are home grown, barring me and one senior in the treasury. That was a conscious choice for two reasons. We believe there is a lot of talent inside and if we hire youngsters and give them the exposure, they are more wedded to the institution. This has worked.....
Read - ET
SBI's operations disrupted in Kashmir valley due to floods
......"Banking operations in Srinagar are completely disrupted due to floods. We have 66 branches in the valley. Out of total branches, minimum of 60 are supposed to be closed, while there is no connectivity with rest of branches which are located on the outskirts, so we are not sure whether they are functioning," .......
It is up to bank to recover money from guarantor or borrower: NCDRC
...........National Consumer Disputes Redressal Commission (NCDRC), presided by Justice J M Malik, dismissed the complaint filed by Kerala resident R S Vasan against Canara Bank, while rejecting his contention that he was not a guarantor and that for the recovery, the bank should have first approached the family of the borrower who had died. "It is well-settled that it is the choice of the bank to recover the money either from the guarantor or the borrower. It is abhorrent from the principles of law to say that the bank must first of all recover the money from the borrower and thereafter it can proceed against the guarantor," NCDRC said. ...........
RBI says management, group companies can also be named as wilful defaulters
..............."While dealing with wilful default of a single borrowing company in a group, the banks and financial institutes (FIs) should consider the track record of the individual company, with reference to its repayment performance to its lenders. However, in cases where guarantees furnished by the companies within the group on behalf of the wilfully defaulting units are not honoured when invoked by the banks/ FIs, such group companiesshould also be reckoned as wilful defaulters,” RBI said in its clarification...........
What deters investment in India today?
.........An explanation for the slow growth rate of manufacturing in India, as recently offered by the Governor of the Reserve Bank of India (RBI), runs in terms of the ‘poor risk-appetite’ of the country’s industrial sector. This not only overlooks the cost of credit, considered very high even by the Ministry of Finance, but also aspects concerning the portfolio balance of firms in the corporate sector. Looking at the balance sheets of Indian corporates, as per RBI estimates, one notices a decline in the .........
Wary banks park excess liquidity with RBI at 7%, but won’t cut deposit rates
.......“It is difficult for us to cut rates when inflation is high. Depositors expect a real rate of return. Deposit rates will start trending down when inflation trends down,” said State Bank of India chairperson Arundhati Bhattacharya. Bankers are wary that if they cut deposit rates on the back of this transient improvement in liquidity, depositors may pull out money as retail inflation remains near 8%. Year-on-year deposit growth was 13.58% as of August 22 while credit growth was 11.04%, a four-year low........
SBI sends wilful defaulter notice to Vijay Mallya
............"We have already sent a notice to KFA (to declare it as wilful defaulter). There is a mandatory time that needs to be given to them to respond and that time is currently on," said Arundhati Bhattacharya, chairperson of SBI. SBI, which is the lead bank of a lender consortium to the crippled carrier, has an exposure of over Rs 1,600 crore.............
Tuesday, September 9, 2014
Reserve Bank to pick talent via UPSC-like test
Thoughtful analysis
My View on "Pension reforms miss the wood for the trees":
This is a thoughtful analysis of an issue which is viewed by different people depending mainly on the individual age and job profile. Having said that there is need to debate the inadequacies in the old age care and social security systems considering the alarming rate at which the population of ‘senior citizens’ is growing and the disgraceful manner in which that category is being described as a burden on the ‘working’ and ‘earning’ population. C R L Narasimhan writing in his column Financial Scene on July 21, 2014 had referred to a response from me and said that The Hindu will revisit issues like the NPS, the method of calculating pension and the capping of the minimum wage. Seen in this perspective, the issues like inadequacy of returns on retirement savings, the unprofessional way in which funds with EPFO and NPS are managed raised here and the greedy manner in which government look at and handle funds with FPFO, LIC and public sector organizations should be further debated for suggesting corrective measures.
- M G Warrier, Mumbai
KRISHNA PUBLIC SCHOOL BAGS RBI QUIZ CONTEST
..........The Chhattisgarh round of the quiz received a very good response from schools all over the State and more than 70 teams participated in the preliminary rounds. While addressing the participants as chief guest for the event, RSU Vice-Chancellor Dr Sheo Kumar Pandey highlighted the role played by television in promoting modern day quizzing. He appreciated the efforts made by RBI and also posed two quiz questions to the participants. Dr Sanjeev Sharma, General Manager and Officer-in-Charge RBI, Raipur, in his welcome address outlined the financial literacy endeavours of RBI of which RBIQ was an important component. He also emphasized upon the important role played by financial literacy in the financial inclusion programs of RBI............
SBI launches multi-currency international debit card
.......“To begin with, the prepaid debit card will enable customers to load four currencies – US dollar, euro, Great Britain pound and Singapore dollar. More currencies will be added going forward as the card has the facility to be loaded up to 12 currencies, S K Mishra, Deputy Managing Director, SBI, said. Mishra added that outbound travel from India is growing with 35 million people travelling outside India. “This is expected to grow to 50 million in 2020. Consumers expect smart products to address their travel needs. The multi-currency foreign travel card gives an option to load currencies of choice at SBI’s branch network,” he said...........
SBI seeks RBI’s nod to launch contact-less debit cards
The country’s largest lender State Bank of India today said it is planning to launch contact-less debit cards which would enable customers to carry out some transactions without entering the pin number. The bank has sought Reserve Bank’s permission for this. “Right now, for any card which has to be used, a customer has to put in the pin number. Some exception has to be made as for lower amount deals like buying a Metro or bus ticket, where he can simply show the card and get in......
LVB hikes interest rate on savings accounts with over 1 lakh balance
.........“An increased rate of 5 per cent will be offered to all customers on entire balance (Rs one lakh and above), calculated on a daily basis. It means that even if a customer keeps balance of Rs. 1 lakh and above in his savings bank account for a single day, he will be paid interest at the rate of 5 per cent per annum for that day,” the old generation private sector bank said in a statement.............
Kotak Bank appoints woman director on board
Kotak Mahindra Bank has appointed Farida Khambata as additional director on its board with immediate effect. The decision was taken at a board meeting on Sunday, September 7, Kotak Bank said in an exchange filing.............
Arun Thiagarajan resigns from ING Vysya Bank
........In a notice to the BSE, the Bangalore-headquartered private sector bank said it is taking necessary steps to appoint a successor in due course. Thiagarajan had joined the bank, which has 547 branches and about 10,000 employees, in 2010..........
Karnataka Bank appoints new additional director
Karnataka Bank Ltd has appointed BA Prabhakar, former Chairman and Managing Director (CMD) of Andhra Bank, as an Additional Director of the bank. The bank informed the BSE on Monday that the board, which met on September 6, has appointed Prabhakar as an Additional Director of the bank..............
Women and the Funding Challenge
..........For many first-generation women entrepreneurs, securing funding comes with a gender baggage. In general, banks want women to cough up stiff collateral or rope in a male guarantor. “Women are still asked (by banks) if husband or father will be the guarantor,“ says Zankhana Kaur, director, TiE Stree Shakti, Mumbai, which promotes women entrepreneurship. Elsewhere, early-stage investors quiz them on, besides their business idea, personal matters like marriage, relocation and kids, and what would happen to the business in their event; these are things they would rarely ask a man, say women entrepreneurs who have tried to raise funds through formal channels. “While there has to be due diligence for a business case, you cannot have it as a check list,“ says Kaur..........
New highways to economic growth
..........Atri Mukherjee, in a report titled “Regional Inequality in Foreign Direct Investment Flows to India: The Problem and the Prospects” (2011), written for the Reserve Bank of India (RBI), says that for the period between 2008-2009 and 2011-2012, these six States received 70 per cent FDI; Delhi and Maharashtra between themselves accounted for 50 per cent FDI. To get over this inequality, it is important not just to develop other States which have been left behind, but also encourage their participation in reaching out to the outside world. Here, Mr. Modi would do well to take a leaf out of the book of both the U.S. and Chinese models of sub-national participation in economic diplomacy, where provinces which were not developed were given special attention......
RBI norms on Basel III instruments are credit positive: Moody's
............“They will make the instruments more attractive to investors, broaden the investor base for additional Tier 1 (AT1) securities to include retail investors and allow banks to have a higher proportion of AT1 capital in their Tier 1 capital,” Moody’s said in its credit outlook report..........
Moody's points to fiscal, inflation worries
................Moody’s has repeatedly stated it is more concerned about the medium-term plan for the fiscal deficit and not only this year’s target. The finance ministry has already committed to reining in the fiscal deficit at three per cent of GDP by 2016-17. Mayaram said the government had set up an Expenditure Management Commission, which would look at broad contours of subsidy rationalisation.....
The exaggerated death of inflation
...........True, back then, monetary authorities were working with old-fashioned Keynesian macroeconomic models, which encouraged the delusion that monetary policy could indefinitely boost the economy with low inflation and low interest rates. Central bankers today are no longer so naive, and the public is better informed. But a country's long-term inflation rate is still the outcome of political choices not technocratic decisions. As the choices become more difficult, the risk to price stability grows. A quick tour of emerging markets reveals that inflation is far from dead. According to the International Monetary Fund's April 2014 World Economic Outlook,........
How India compares on financial inclusion against other countries
.....................But while we may cavil about the choice of method, there’s little doubt that India remains a vastly under-banked country. Also, what matters most for households is not opening deposit accounts, but access to credit. It’s in this regard that India’s track record is abysmal...............
Banks steal from the poor to loan the rich
.......Suppose a poor opens an account and deposits all his/her hard earned savings in it. What will he or she get - 4 per cent interest? Does not this mean that the poor depositors will end up subsidising the lendings to the rich and big corporates, who hardly keep any money in the savings account. What is the rationale behind doing this when several big corporates are defaulting on loan repayments? Today Indian banks have stressed loans that include the bad loans and the restructured loans, to the tune of Rs 10 lakh core, which is more than the total net worth of the banks.............
3 Vid DCC banks urge HC to direct RBI to treat them in parity with 16 banks of UP
Three unlicensed district central co-operative banks from Nagpur, Wardha and Buldana in Vidarbha have urged through their second re-joinders that their writ petitions be disposed of by the High Court here, with direction to the Reserve Bank of India (RBI) to withdraw its orders of rejecting these banks’ applications for grant of license to them to enable them to revive and survive in the larger interests of the depositors and general public of the area...........
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Don’t bank on it, yet
.........In recent years, a number of committees have been set up to recommend ways in which financial inclusion can be expedited. Such panels have been headed by, among others, Raghuram Rajan, the current RBI governor, K.C. Chakrabarty, former RBI deputy governor, and Nachiket Mor of the ICICI Bank. These committees have made many suggestions. We were told that micro-finance institutions (MFIs) and self-help groups would be of great help. But some of these institutions got embroiled in controversies and their promoters were considered no different from the typical, avaricious village money-lender. These MFIs could, at best, supplement the efforts of — but hardly replace — the traditional bank...........
Let Us Learn Jan Dhan Yojana Through An Intelligent Customer
........A scheme launched with good intentions may become a thorn for the banks and later on for government. There is a need to immediately introspect and issue the necessary clarifications. Let the speed be controlled as there is well known saying: SPEED THRILLS BUT ALSO KILLS. Anyway, as bankers need to keep up their spirits high even in gloomy mood, we provide the following fodder .........
Jan Dhan Yojana's real test
In his column "The inclusion triangle" (Muddy Waters, September 8), Subir Gokarn has lucidly brought out the high and low points of the Jan Dhan Yojana. The real challenge will be to keep the accounts alive, fund the overdraft mechanism and clarify doubts on the insurance cover. Moreover........
Jan Dhan Yojana opens a new door for RuPay gateway
.....AP Hota, Managing Director and CEO of National Payments Corporation of India Ltd (NPCI), toldBusinessLine that the target for the year-end was six crore cards. By March 2015, RuPay may be able to add an additional 10 crore accounts. If the Centre’s financial inclusion scheme lives up to its hype, the sheer number of RuPay cards in the country will create a critical mass that will help create a huge network of retailers who accept RuPay cards. According to Reserve Bank of India statistics,............
Declining Cost of Funds Spells Higher Earnings for NBFCs
.......Major NBFCs were impacted the most when the Reserve Bank of India tightened liquidity to ease exchange rate volatility in July last year.Large banks have a fair chunk of retail deposits, so they were not affected to the same extent. In certain segments like housing finance, NBFCs could not pass on the higher cost of funds due to competitive pricing by banks. This resulted in lower net interest margins for them in the past one year. However, with lower wholesale rates the NBFCs are expected to improve their margins in the next few quarters...........
Read - ET
Bandhan ropes in Ogilvy & Mather for building banking image
........... “We were talking to a few global majors for our requirements as currently we are drawing up plans to transform our micro-finance operations into mainstream banking. Ogilvy will create a logo and advertising strategies; it will also look after the interiors of bank branches,” Bandhan chairman and managing director Chandra Shekhar Ghosh said.............
My bank will not leave any wilful defaulter, says ED of United Bank
.......UBI had taken the step in line with the master circular issued by the Reserve Bank of India on wilful defaulters. He, however, declined to show his hand on his future plans (on declaring more borrowers as wilful defaulters). UBI has listed some 405 companies and their directors as wilful defaulters. This includes only a few big names. Most of UBI non-performing asset is on account of the MSME sector. Mr. Narang, along with Sanjay Acharya, also an ED, has been steering UBI since the erstwhile chairman-cum-managing director Archana Bhargava quit office in February 2014, leaving the bank steeped in a Rs.1,200-crore quarterly loss and a mountain of non-performing assets.....
How will the defaulter tag play out for Mallya?
........But it is a situation which India Inc. is watching closely: how will Mallya get over this crisis? Will it finally take its toll on the man who has always - during the past three decades at the helm of his UB Group - punched way above his weight and has pulled it through? Most important, this will show how the whole campaign against wilful defaulters plays out. Mallya's challenge this time is not about leveraging his assets.........
Kerala’s finances turn precarious
................The State borrowed Rs. 100 crore from the Reserve Bank of India (RBI) on Friday after it exhausted the State’s Ways and Means limit of Rs. 350 crore. The government has already announced its decision to issue bonds for Rs. 500 crore on Tuesday. It had raised Rs. 1,000 crore in late August to meet unavoidable expenditure in connection with the Onam festival season. The last time the State fell into overdraft was eight years ago.........
Monday, September 8, 2014
RBI report and aam aadmi - Dr.S.S.Tarapore
The inclusion triangle - Dr.Subir Gokarn
RBI Governor: Big picture reforms may take some time
RBI & Government A Bittersweet Relationship Story
........Although RBI is an autonomous organization, for a country to pass the test of time, its central financial authority and government should be able to see eye to eye in matters. As the relationship between RBI and current ruling government BJP is fairly new, it is too soon to comment on the future of this partnership. But the positive changes happening, both big and small, are giving a fairly encouraging signal.
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Govt, RBI to devise monetary framework for central bank: Rajan
............'This year the government and the RBI will negotiate together to formulate a monetary framework for the RBI...the idea is to move towards an objective which has much more emphasis on inflation,' Rajan said in a speech in Chicago on Friday. He said the focus for the RBI has been on controlling inflation and on creating a sound monetary framework. The RBI Act of 1934 does not say anything about the framework that the RBI operates under, he added. 'Since 1934 we have not figured out a framework for the RBI. (It is) time we do it. The government and the RBI will do that,' he said........
India’s unlikely bedfellows
...........Yet their fates are now linked. This week both men reached symbolically important milestones: Modi has passed 100 days in office, while Rajan has finished his first year as the governor of RBI. Together they bear the burden of huge expectations for a turnaround in India’s moribund economy. Their reputations alone have prompted an early uptick in sentiment. To maintain momentum, though, they need to start acting more like the bold reformers everyone expects them to be. Reputation can go a long way, of course. In a country where nepotism and connections usually determine who occupies high public office, Modi and Rajan represent a refreshing change. Neither of them are insiders in New Delhi, whose halls of power are as clubby and claustrophobic as Washington’s Beltway. Both are high achievers with undeniably successful track records.............
Missing thanks to inaction: The Modi government should get itself a CEA
.....Jaitley’s predecessor, P Chidambaram perhaps did not miss not having a CEA when Rajan left North Block, because he had Parthasarathi Shome as advisor to the finance minister to consult on fiscal matters. For macro issues, there was the Planning Commission and the Prime Minister’s Economic Advisory Council. These are not part of the finance ministry, but at least there was economic advice from within the system that was available. But Jaitley hasn’t appointed an adviser to the finance minister (a post that is co-terminous with the tenure of the minister). The Planning Commission has been disbanded, as has the Prime Minister’s Economic Advisory Council. "The only real expertise within the system in macro-economic policy is currently in the RBI. The government could end up being hostage to the central bank," Pronab Sen, chairman of the National Statistical Commission, points out...........
RBI unions take exception to HR rejig, lateral recruitment plan
...........Signatories to the letter included SV Mahadik of the RBI Workers’ Federation, CM Paulsil of the All-India RBI Officers’ Association and RN Vatsa of the RBI Officers’ Association. The Forum recalled its meeting with the Governor, Deputy Governors, and senior officials on August 19, wherein it had expressed concern over the proposed restructuring and clustering. It had also expressed serious opposition to lateral recruitment in leadership positions on a continued basis and had sought meaningful interaction for an amicable settlement..........
AIBOA central committee to meet in Kolkata to discuss wage hike issue
...........Public sector banks are the major foundation of Indian economy. With changing times, these entities would need to rejuvenate themselves like the private or foreign counterparts. A healthy wage structure and service condition would inspire and motivate the workforce, he added. Meanwhile M A Srinivasan, General Secretary, Canara Bank Oficers' Union told Business Line that the Central Committee of the All India Bank Officers Association would be meeting on September 16 and 17 at Kolkata to discuss wage revision issues, growing problem of NPA in the banking industry and issues concerning banking reforms such as payment banks among others. The AIBOA demand includes a 25 per cent hike in the pay-slip component, 5-day week and proper disciplinary guidelines..........
HDFC Bank To roll out the programme across all 96 branches in Odisha
...........The programme will be rolled out across all 96 branches in Odisha to educate customers and create awareness. The initiative was launched by guest of honour, Mr. P.K. Jena, Regional Director, Reserve Bank of India, Odisha. The 'Secure Banking' initiative comprises a series of workshops, which educate customers through presentations, on matters they need to be careful about, while conducting banking transactions............
RBI conducts financial literacy camp
..AGM Guite, also briefed the students on the various roles and functions of RBI. He said the RBI launched a project of 'financial inclusion' 8 years back which is now carried forward in a mission mode under the PMJDY to bring all the population of India under banking and financial system. He further pointed out how the process of opening bank account have been simplified and encouraged students and family to avail the opportunity..........
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RBI opens supervisory college for ICICI Bank
.........The RBI sets up supervisory colleges for banks which have good international presence. The main objectives of such colleges are to enhance information exchange and cooperation among supervisors, to improve understanding of the risk profile of the banking group and thereby facilitate more effective supervision of internationally active banks........
Study business at NUBS
............The Global Experience Opportunity (GEO) is a programme of activities created to provide students with opportunities to enhance their global employability through a mixture of study and work experience initiatives. It introduces students to the international business community and equips them with the practical skills needed to succeed in today’s hugely competitive and fast-paced global business environment. Students who take up this programme get the opportunity to intern with the Reserve Bank of India (RBI) and undergo a challenging 6-week summer internship. The participants undertake project-based work within the key functional areas of the bank, while gaining insights into India’s diverse culture. They are also exposed to the fast-paced business environment. This year, Newcastle students will have the unique opportunity to work at RBI along with students from Boston University........
Government of India can print Rupee 1 note: Law Ministry
......However, since the RBI was of the view that with the repeal of Section 2 of the Currency Ordinance, the Government of India is not empowered to issue note of denominational value of one rupee, the law ministry opinion was taken. The Law Ministry in its opinion stated that the Coinage Act of 2011, which consolidates the laws relating to coinage and the mints, does not bar the Government of India from printing one rupee notes.
Fake notes a menace for traders in Hubli-Dharwad
............Many traders say spotting fake notes is tough because they're very similar to the real deal. Some fakes found in the cash dispensed by some ATMs, banks and financial institutions. Mounesh Hadapad, a private company employee, said he was given a fake Rs 1,000 note by a cooperative bank. "When I went to Vijaya Bank to deposit it, the staff rejected it and proved it by placing it on a fake note detector," he said. He added that his point that another bank had given him the note wasn't considered. "I thought of complaining to the police but didn't do it as they may suspect me of wrong-doing," he said. ...........
Devotees bid adieu to Ganesha in Prakasam
..........Elderly people joined the youth in the celebrations by bursting crackers to give a warm send off to the Lord for removal of all obstacles and return for the festivities next year. Ganesh idol made out of four lakh coins, taking special permission from the RBI officials stood as highlight during this year's celebrations..........
Heritage marathon on September 14
Prastara Public Charitable Trust will be organising Madras Heritage Marathon on September 14. It has three categories,3 km, 5 km and 10 km.The event is supported by running clubs Chennai Runners, Dream Runners and Cool Runners. The run will begin from Queen Mary’s College and runners will run across heritage structures and monuments until RBI. For details, call 9884018618
The Hindu
Pension reforms miss the wood for the trees
...........Yet, the basic truth is this: a majority of the workforce today lacks any form of retirement security. Though India is likely to see its 60-plus population swell from 80 million to nearly 200 million over the next 15 years, nearly 90 per cent of these people are not covered by any formal pension scheme......
PSBs Headed for Consolidation
.........The ministry is expected to soon hold a meeting with all state-run banks to discuss issues related to their operations, their contribution to the economy and coordination with other arms of the government. The issue of consolidation will also be discussed at this meeting, a senior finance ministry official said, adding that any merger proposal will be evaluated on the parameters of panIndia presence, business and information technology integration. “The government has limited capital to offer and it has to be deployed judiciously,“ the official said on condition of anonymity. The government will draw the road map for bank capitalisation on the basis of performance of the banks in the second quarter of the current fiscal, the official added...........
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