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, May 3, 2014
The West Can Learn From India's Central Banker
Leader or led?
...............Singh at 50 had become governor of the Reserve Bank of India. Pranab Mukherjee was the finance minister, and wanted Bank of Credit and Commerce International (BCCI) to get a branch in Bombay, as it then was. BCCI was run by an influential Pakistani, had West Asian connections and a dodgy reputation. Singh as governor resisted; when Mukherjee insisted, Singh offered his resignation. He was then told that the government would take away RBI's bank licensing powers, so Singh decided it was better to make an exception rather than be rigid and damage RBI as an institution.............
PC’s model code
.......When elections are held over as many weeks as they are, the FM has said, it is a bad idea to not allow the government to function during this period. The Election Commission, for instance, told the government that it could not implement the Rangarajan committee’s recommendation on hiking gas prices. Fortunately, the EC allowed RBI to go ahead with issuing bank licenses, but it was pretty much touch and go for a long time. At a time when the economy needs the government to be taking quick decisions, it cannot be subject to such restrictions. No one doubts the EC’s intentions, but complex decision-making cannot be subject to what the EC decides—........
Rules and guidelines for LTC/LFC issued by Ministry of Finance
Letter submitted to the Bank by Reserve Bank of India Officers' Association opposing the move of Govt on LFC in Bank
...........We are seriously hurt and emotionally agitated that instructions are being issued to the Governor / Central Board of the central bank of the country by an officer at the level of Under Secretary to the Government of India.........
AIBEA opposes SBI move
.........While the Business Correspondent model itself is wrought with risks and deficiencies, it is really atrocious that Reliance had been handed over such vital banking functions by a major public sector bank. Itis strange that while RBI itself has not chosen to give them license to start their own Bank, SBI management has brought Reliance through backdoor method into dealing with regular banking services............
SBI promotes 10 CGMs to Deputy MDs
.........State Bank of India has promoted 10 Chief General Managers to the position of Deputy Managing Director (DMD). The CGMs who have been promoted are: ........
Different standards for different institutions........
My View on "After autonomy, the need to fix proper accountabil...":
In spite of several recommendations that all the Acts of Parliament should have Regulatory Impact Assessment the Parliamentarians are averse to having this. If Parliament is not wanting to be accountable to the people putting it in place, how can one think that the RBI becoming accountable to Parliament would be a good practice? Regulatory Impact Assessment involves the Minister responsible for the introduction of the Act should get the assessment of the impact of the Act on the subjects of the Act during the last quarter of every year by a competent evaluation mechanism independent of the implementing agencies. Such Review should be placed before the Parliament during the first session every year and seek the opinion of the House for any improvements. If this were to take place, then it makes sense for autonomous institutions like the RBI also to be accountable to Parliament. We can't have different standards for different institutions in the case of accountability.
- Dr.Yerram Raju
Here’s your chance to tell the RBI how high you think inflation could be in future
..........You will also have to give your views on the current inflation rate, its level after three months and after one year. In short, this is your chance to tell the RBI how much you expect to pay for various items like milk, wheat, rice, chana dal and tur dal. Keep in mind that the result of this survey will be used by the central bank as one of the important inputs to its monetary policy formulation.
How will interest rates behave after the elections? This is what history tells us
.........However, it is highly likely that the interest rates will remain steady at the elevated level for some more months. This is because for the RBI to take any rate action, the government will have to take measures to ensure fiscal discipline. If the next government manages to cut subsidies, the RBI may be able to reduce policy rates. But then how much of a 25 basis point cut is actually transmitted into the economy?..........
Various mobile banking apps vulnerable: Study
At a time when lenders have been encouraging consumers to go for mobile banking, a survey by Japanese security firm Trend Micro reveals that 15 bank related mobile apps and 39 online payment gateways, among several others, stand the risk of being exposed to cyber criminals. According to the study, social networking sites, shopping and health care apps used by Indian users are vulnerable............
EKO model, an innovated financial inclusion model
..........The resounding success of M-Pesa demonstrated that the ubiquitous mobile technology offers considerable potential for lowering transaction costs and providing secure banking services to vast numbers of poor in the developing world. RBI estimates say that there are still many households that are to be banked. The burgeoning mobile money models in India target precisely this widespread need for alternative forms of saving for people who are unbanked. Among various such initiatives, EKO is an early mover. ...............
13.54 crore siphoned off from Railways with forged cheques
Sixteen people who withdrew Rs.13.54 crore from the account of the North-Eastern Railway (NER) over a month by forging cheques of the Reserve Bank of India have been booked by the Directorate of Enforcement. They have been charged with laundering the siphoned off money by investing it in movable and immovable assets. In a complaint filed before the court.......
Authority on anvil to fight bank failures
...........Concerned that the present framework for resolving failed banks and financial institutions may not work in a major collapse, the government and the Reserve Bank of India (RBI) are looking at a proposal to create a Financial Resolution Authority (FRA) backed by law, which will permit temporary nationalization of failed institutions. The FRA has been proposed by a panel comprising RBI and finance ministry officials, which said that the present system of resolution of bank failures through shotgun marriages may not work in future if larger institutions fail. .............
RBI switches 30 banks to risk-based supervision
........Former RBI Deputy Governor KC Chakrabarty in 2012 had submitted a report on the review of supervisory processes for commercial banks, and had suggested replacing the present compliance-based and transactiontesting approach (CAMELS) with the risk-based supervision (RBS) system. Several jurisdictions across the globe have adopted variations of the riskbased supervision. The RBI had, in the past, made several failed attempts to migrate to the RBS supervision. It had first tried to introduc ..
Wilful bank loan default crosses Rs.70,000 cr
........The wilful bank loan default by 400 customers to various public sector banks have crossed the Rs.70,000-crore mark. Having released the names of top 50 wilful defaulters in December 2013, the All India Bank Employees’ Association (AIBEA) will publish the second list of remaining 350 candidates on Tuesday. The first set of 50 defaulters, consisting of a sitting Member of Parliament, a Central Minister and two Padma Shri awardees, collectively owe over Rs.40,000 crore to nationalised banks and the remaining 350 defaulters account for Rs.30,000 crore. In the last five years.........
Sowing inclusion, reaping NPAs
............The issue is tricky because banks are reluctant to admit that farm loans are a drag on their balance sheets as it is politically correct to say that these loans are profitable. At a broader level, RBI needs to find ways to scale down this commitment for the banks, with the government pitching in to fill the gap. We need to strike a balance here and not go overboard on inclusive lending. New entrants into this arena should keep this in mind as they would be especially vulnerable...............
RBI mulls micro fin cos as business correspondent
The Reserve Bank of India is seriously considering the Nachiket Mor committee’s suggestion on allowing micro finance institutions to function as business correspondents of banks to further its efforts towards greater financial inclusion, sources close to the development told Cogencis. However, the move has faced serious opposition from various departments in the central bank.................
Read - FPJ
Read - FPJ
Bandhan to start banking operations 600 branches
................"We plan to start off with 600-700 branches across the country. Some of them may be either existing ones or new," Bandhan Financial CMD Chandra Sekhar Ghosh said. He said that 80 per cent of the branches would be in the rural areas and the rest in the urban regions..............
SBI extends self-employment benefits to differently-abled
............. State Bank of India has decided to extend benefits of over 100 Rural Self Employment Training Institutes (RSETIs) to differently-abled individuals under its corporate social responsibility (CSR) initiative..........
Yes Bank promoter case adjourned to June 19
...........The matter came up for hearing of notice of motion before Justice Roshan Dalvi, who adjourned the hearing to June 19, 2014 on account of court vacation beginning May 9, 2014. The counsels of the bank requested if the matter can be heard on Monday but was denied by the judge, who preferred to hear the two-judge bench order before beginning the hearing of the two parties. Yes Bank is due to hold its Annual General meeting in May or June, in which it could pass resolutions and discuss the disputed matter.........
Subscribe to:
Posts (Atom)