............The new government should undertake a concerted drive to remove the conceptual cobwebs preventing the setting up of a Postal Bank, considering the great potential such a bank has for taking banking to the masses.
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.
Saturday, April 19, 2014
Payment banks aren't financially inclusive: Chakrabarty
Payment banks: RBI governor, deputy differ
Outgoing Reserve Bank of India deputy governor K C Chakrabarty has questioned the viability of payment banks and has said that they do not serve the purpose of financial inclusion. The statement comes at a time when RBI governor Raghuram Rajan has indicated that the central bank was in favour of issuing bank licences for limited purposes such as payments..................
Little big bank
..........“It would be a natural growth for NBFCs to turn into full-fledged banks. To make financial inclusion close to reality, one must experiment and there are a lot of aspects worth thinking about like — deposits, mobile banking, making use of existing technology, telecom, Aadhar and so on. It will be a narrow view if we look at financial inclusion only through bank accounts,” ........
Which way will the two new banks go?
The granting of banking licences to IDFC and Bandhan is interesting when looked at from the point of view of the character of the institutions that have been chosen by RBI. One is an MFI while the other is an infrastructure-finance company. If an NBFC was awarded this privilege, then the transition would have been relatively seamless. But once .........
RBI relaxes norms for its ED selection
With three executive directors' post will have to filled up at the Reserve Bank of India, the central bank has decided to relax the norms to accommodate more candidates. The residual service period criteria have been reduced to 2 years from 3 years..............
PRR invokes RTI in 'public interest'
April 16, 2014
The Central Public Information Officer,
Reserve Bank of India
Central Office
Mumbai
(Through RBI, Thiruvananthapuram)
Dear Sir,
Right to Information Act, 2005
According to a recent circular issued by the RBI Officers’ Association, the Bank is reported to have conveyed to it that the Government has given its(in principle ) nod for the Bank’s proposal for revision of pension to its pensioners provided certain conditions put forth by the former are agreed to. Almost all the conditions relate to the serving personnel. The Government is understood to have added that “such a course of action would be most appropriate and desirable in public interest”. (emphasis added ).
The present development has demolished conclusively the mythical conviction of the Bank’s Top Management which is on record having asserted, unequivocally, that the issue being a “simple” one is capable of early resolution, as “ the Government is not against updation, but only against illegal updation” -- yet another ill founded view of the Government.
The matter calls for special attention, also in view of the following:-
(1) The Government had, hitherto, taken the stand in different fora that it had not issued to the Bank any statutorily binding order. The invocation of the concept of “public interest” indicates a distinct deviation in its perceptions which has wider ramifications viewed in the context of the provision of section 7 of the Reserve Bank of India Act.
b) The several documents already accessed under the RTI Act do not reveal a single instance where the Government had invoked the concept of “public interest”. It is not known whether this was ever projected or attempted to be projected during any of its interactions with the Bank on the issue.
c) ‘Public interest’ in so far as it relates to “updation” of pension can only be in making improvements therein and certainly not in delaying or denying them by correlating the issue with wholly unrelated issues such as compensation package to the existing personnel.
d) On the whole, the attempt at invocation of the concept of “public interest” in this issue which had been remaining unresolved for an unduly long period of almost a decade appears to be preposterous, misconceived and, perhaps, motivated.
2) The Bank having conveyed, with no signs of reservation, the Government’s stand, portrays itself as being tacitly in agreement with the same including the concept of “public interest”.
3) In the light of the foregoing. I seek under section 6 of the Right to Information Act the following.
i) Copy of the in-house note/opinion based on which the Bank has found it appropriate to go with the Government’s stand involving the concept of ‘public interest’ in the issue pertaining to revision of pension of a numerically insignificant section of pensioners juxtaposed with the issue concerning wage structure etc of a relatively large number of serving personnel.
ii) Copies of records (e.g. notes, minutes, etc.), if any, or extracts thereof evidencing the Government’s stand invoking the concept of ‘public interest’ in relation to pension updation (This can, for the sake of convenience, pertain to the period from the close of 2011 when a formal request for clearance was sought from the Government).
4 The prescribed fee of Rs.10/- is enclosed.
Yours faithfully.
P. R. R. NAYAR , 4D, Wind brook Place, Vellayambalam, Trivandrum - 10, Tel: 2722602
Forwarded by Shri L.R.Parab
Forwarded by Shri L.R.Parab
OROP@2007 - Loud but logical : R.G.Nakhate
......A fundamental question does, however, crop up why pension updation from
01-11-2012, why not pension updation from 01-11-2007, 10 years after 01-11-1997
as the best ever pension accrued to GOI pensioners was from 01-01-1996 as
per recommendation of 5th CPC. This question also deserves some suitable
answer. May be I am thinking loud. But, surely all leaders would opt for
updation from 01-11-2007. The leaders too have been all along pleading for
pension updation retrospectively from 01-11-2002. Yes, if one rank one pension/
same rank same pension is granted in RBI from 01-11-2007?.......
Read............
Bharatiya Mahila Bank ties up with CavinKare's Trend In Vogue
........CK Ranganathan, CMD, CavinKare, who said that the company is happy to associate with BMB in providing collateral free loans to prospective franchises across the country, especially women, said that the company would take the responsibility of finding right place for salon for its franchisees, negotiate with the land owner for rent, would bring in cost efficient service providers and suppliers, which would bring down the cost for the franchisee..............
A star abroad, RBI boss riles bond traders at home
Bernanke's message
..........The sum and substance of Bernanke's message is that the economy needs to be run with appropriate fiscal and monetary measures. Expecting the stronger economies and their central banks to adjust for weaker economies is neither desirable nor feasible.
RTI Judgement Series: Provide information on MTM position of banks
......"While banks may have given information to RBI in confidence or in trust, there does not appear to be any duty cast upon RBI to act in their benefit. RBI being a regulator of the banking sector obtains and maintains such information in regulatory or supervisory capacity. Therefore, there is no element of choice as such available to banks. There does not appear to be a creation of any fiduciary relationship between RBI and the banks."..........
Innovation in payment banking
..........The basic proposition as laid out by the governor using banks and non-banks for payments and remittances is crucial for the way forward for inclusion and follows well established international practices. For the non-banks currently in the payments space, operationalizing the governor’s statement under the current framework would mean:..............
Big Loan Defaulters to Face RBI Audit
.........The Board of Financial Supervision (BFS), chaired by RBI governor Raghuram Rajan, has, in fact, cleared a proposal that the central bank will conduct an independent forensic audit of corporates declared fraudulent by banks. Independent audits, however, will be restricted to corporates that have borrowed more than Rs 1,000 crore. The central bank will first try to get to the bottom of what went wrong........
Finmin widens monitoring of NPAs at public sector banks to top 50 accounts
...........The seriousness of the NPA problem was also captured by ratings agency Fitch. In a report released on Thursday, Fitch Ratings expressed concerns over stressed assets in India compared to other Asian emerging markets. Fitch said it “expects Indian banks' asset quality to weaken further, with stressed assets (NPAs and restructured loans) to rise from 10% (at mid-2013) to around 15% during FY15 (by March 2015).”.............
Turning of the credit cycle
...........The Reserve Bank of India (RBI) and the finance minister have fired their salvos by emphasising the importance of recognizing permanently impaired assets expeditiously and clearly differentiating them from assets which are temporarily challenged. This stance is very healthy for the banking system and the economy in the longer term as such assets lock up capital that can be put to much better use. It will also significantly free up lenders’ and bond investors’ bandwidth. Also welcome is RBI stressing on promoters making their share of sacrifice .........
NBFCs approach RBI, govt over new companies Act
Non-banking finance companies (NBFCs) have approached the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs to amend regulations under the new companies Act. These companies fear the stiff reserve requirements and norms on investment in government bonds will hit them hard..........
Amicus Curiae seeks audit of temple wealth
.......The audit, he said, should be undertaken by Mr. Rai and a team of auditors to be appointed by him. He should be assisted by a Deputy Governor of the Reserve Bank of India (RBI) who will be nominated by the RBI Governor in consultation with the Amicus Curiae. The audit should cover management of the temple, the Sree Padmanabha Swamy Temple Trust and allied institutions over the past 25 years. Mr. Rai should be empowered to take into custody and seal all documents of the trust properties forthwith, Mr. Subramaniam has suggested.............
Permit farmers to open bank a/c with Aadhar: Bombay HC
.....However, the petitioners argued that several farmers who do not have bank accounts are still in the lurch. It was then, that the court suggested that farmers should be allowed to open bank accounts easily and not be made to submit a range of documents to avail of government relief, during times of calamity. "Farmers should be allowed to open bank accounts with only Aadhar cards as identification. The whole point of issuing Aadhar cards was that no other document would be required," the court said......
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