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.
Sunday, June 15, 2014
Why Raghuram Rajan matters
'RBI to soon announce rules for on-tap banking licenses'
...."The RBI will soon come out with policy guidelines in differentiated banking licenses within a short period of time", Gandhi told reporters on the sidelines of ICC Banking Summit here today. Gandhi said that there was need for more variety of banks in the country. "We intend to give licenses to set up niche banks in the country. These licenses will be given on tap", he said......
Narendra Modi vows action on One-rank One-pension
......."My government is committed to One-rank One-pension," said Modi on board INS Vikramaditya. "There were many promises on One-rank One-pension, but no action was taken,"..............
Shaktikanta Das replaces Takru as revenue secretary
......Though rumours were rife that the Narendra Modi-led administration might replace Takru- appointed as revenue secretary in April by the outgoing United Progressive Alliance (UPA) government- the order of his transfer barely three weeks before the presentation of the Budget has come as a surprise.....
Shikha Sharma | The liberal banker
......“It’s always difficult when you take over a healthy, well-run franchise as you can end up spoiling it. While you are setting up a new venture you can do things the way you want, but here you have to build on the existing strength, which is what I have been doing,”....................
Bharatiya Mahila Bank aims Rs 1,800 crore of business in FY15
............... while the bank will mobilise deposits from all genders, it will prefer to lend mostly to women. The lender will also offer interest rate discounts on loans offered to women. The bank will focus on providing finance to retail, SME and mid-corporate sectors, but will also offer credit to large corporates through consortium lending............
Hunt For Capital
.........However HN Sinor, a veteran banker who served on numerous RBI committees and headed the Indian Banks Association, says the ultimate aim should be for government to divest its stake substantially from the stateowned banks. "My personal opinion is that the government cannot keep pumping in cash into these banks year after year," he said. "They have to take the decision to reduce the stake below 51%. Any other measure will be temporary." ...........
IIM-I students chart way out of rupee crisis
INDORE: At a time when the country has suffered devaluation of rupee against dollar, inflation and fuel price volatility in exchange market, two students of Fellow Programme in Management (FPM) at Indian Institute of Management, Indore (IIM-I) have rekindled hopes to address the problems through introduction of 'Bit Coin' currency system. ......
Woman hires goons, kills stepbrother on the advice of a tantric
The Wada police have arrested a 45-year-old woman for allegedly hiring and killing her stepbrother over a superstition to gain prosperity in life after her husband, a Reserve Bank of India (RBI) employee and her son died. She visited a female tantric for treatment of her illness and cops suspect that the tantric's advice to kill the brother took a toll on the woman's mind..............
Commuters at the Receiving End
KOCHI: Commuters in Kochi are going through tough times. Even as the problems created by the pipe burst at the Kochi Metro Rail construction site, near RBI at Ernakulam North, enters the fourth day, the restoration work going at the site is causing further woes to commuters and pedestrians alike.............
Govt looking to hike I-T exemption limit to ₹5 lakh
..............Indications are that the exemption limit will be raised to ₹5 lakh from the current ₹2 lakh; meaning, people earning ₹5 lakh or less annually will not have to pay tax. Currently, tax is levied at the rate of 10 per cent on income of ₹2-5 lakh, 20 per cent on income of ₹5-10 lakh and 30 per cent on income above ₹10 lakh ............
Obituary
Smt D.Sukumaran Nair (63) died in the early hours of 13th June in KIMS Hospital. She was in DOBD and staying in Gokuldham Quarters.
Landline 0471 2720202
Mobile 09446904821
- P.P.Ramachandran
Silver lining
My View on "Wait and watch till August - Dr.S.S.Tarapore":
The timing of Elections, 2014 did cause some dislocation in work relating to Budget, 2014-15 in Delhi and finalisation of Monetary Policy for the current year in RBI. While Reserve Bank of India could factor in the uncertainties and move forward with policy formulation, at ministerial level, things will stabilise only after Finance Minister finalises his maiden budget. As results of any policy measure by the central bank will be dependent on the supportive policy initiatives from the central government, RBI Governor cannot be blamed for the ‘wait and watch’ approach he has opted for the time being. Still, to the extent possible, RBI has made clear its expectations and has not stopped from doing what the Bank considered best in the given circumstances. In the context of the new government’s commitment to honour election promises, many of which will have an impact on resources availability and prices, RBI’s expectation about level of inflation at 8 per cent by January 2015 and at 6 per cent a year later are predictions based on prevailing situation. Depending on the measures by the government to fuel growth and improve the financial position of less privileged, the impact of inflation too will vary, making numbers less relevant. The silver lining is the better coordination between finance ministry and RBI as is evident from the more cordial language used in communication by both. Let us wait and watch.
- M G Warrier, Mumbai
Beware of online banking frauds: Look before you reply
Last month, the Reserve Bank of India (RBI) noticed a fake and fictitious account created as http://www.rbi-inonline.org/savings.html by some unknown persons, saying they were offering various banking facilities. Some fraudsters were asking the public to apply online for opening a “RBI Savings Account”. When this came to the notice of the central bank, they immediately cautioned the public ........
Many solutions
This is with reference to “Wait and watch till August” by SS Tarapore (June 13). Again, the RBI is firm on its stand with regard to inflation control being its pivotal aim and has introduced few changes in the monetary policy. All it did was change the SLR by 0.5 per cent. Of course, the optimism existing in the macroeconomic sphere thanks to the new government could boost the confidence of domestic as well as foreign investors. But steps such as removing the blocks on stalled projects, introducing investor-friendly tax and labour policies and facilitating land acquisition will do more along with tuning up the agricultural sector to reduce food inflation.
- Ramasamy Nagarajan
HBLUFBU Needs to Learn Lessons from Modi
.....The worst part is that even after the meeting was over on the afternoon of 13th June and almost 10 lakh bankers are breath takingly waiting for the circular of UFBU, these leaders are sleeping and I have yet to see the circular till the afternoon of 14th June i.e. after 24 hours of the meeting. I know in earlier settlements they used to take even few days to issue such circular as there was no pressure from social websites. Times have changed, and now cadre excepts that full fledged details to be released within few hours and not after few days. Some of the newspapers have covered the story in today's newspapers, but no circular from UFBU leaders. Are they so busy that they can not draft a letter of one page giving what actually transpired in the meeting? God save the Aam Banker from such retired and slow bankers. UFBU needs to learn their lesson fast.......
Wage Talk 13.06.2014: IBA offered 11%, UFBU demanded 25%
............In this talk IBA has improved wage increase offer of 10% to 11% in total salary which was rejected by bank union representative organization UFBU. Bank employees are demanding 25% increase and are hopeful from new govt. As reported this meeting was just a symbolic meeting in which govt shown willingness towards salary revision of bank employees for which PM and FM both had given assurance..........
Tax treatment: Pension regulator seeks parity for NPS with provident funds
................PFRDA has told the Finance Ministry that NPS withdrawals should be exempted from tax at the time of withdrawal just as PF withdrawals are at the time of retirement. “We have pitched for an EEE (exempt-exempt-exempt) tax structure for NPS on the lines of provident funds. Currently, we have an EET (exempt-exempt-tax) structure for NPS and this reduces the attractiveness of this product,” ...............
RBI sets norms for late fees on cards
In a move that will bring relief to credit card holders, RBI has told banks that they can charge late fees only in the next billing cycle following a missed payment. At present, card issuing banks charge a late fee for any payment made after the due date. The late fee imposed by card issuers ranges between Rs 100 and Rs 700, depending on the outstanding amount...............
Read - TOI
Why revised version of Inflation Index Bond may fail again?
.....In order to earn high post-tax return from these bonds, the investors in the 20 percent and 30 percent tax bracket would always need inflation rates to remain on the higher side, which is against the basic premise on which the RBI has been formulating its monetary policy in the recent years. Though the RBI cannot do much to make these bonds tax-free, it can definitely impress upon the government to consider making these bonds as tax-free.......
eMoney
.............What has helped is the boom in digital payments in India. According to the Internet and Mobile Association of India, such payments are expected to reach R1.2 lakh crore by the end of the year, 40% higher than in 2013. Credit cards will make up 21% of this while the rest will come from debit cards and internet banking. This has a lot to do with the fact that e-commerce...............
CII proposes five-point agenda for revival of NBFC growth
In order to arrest the steep rise in NPA and slowdown in loan growth, Confederation of Indian Industries (CII) has called for a long-term vision for the development of the NBFC sector in India. It has suggested a five point agenda for consideration of the Ministry of Finance and the Reserve Bank of India. The agenda focuses upon......
HC finds RBI terms 'unnecessary'
The High Court of Karnataka has termed “unnecessary,” the conditions imposed by the Reserve Bank of India for the taking over of Amanath Co-operative Bank by Canara Bank. During the hearing of a petition, Justice Ram Mohan Reddy observed that ......
SEBI takes its job seriously
The Securities and Exchange Board of India (SEBI) has taken up the job of investigating the Collective Investment Schemes (CIS) with zest. The regulator hopes to shed its negative image courtesy the Subroto Roy Sahara case. SEBI officials confess that the Sahara and Sharada scams are merely the tip of the iceberg, compared to the 600 CISs they are currently looking into. SEBI has started identifying CIS promoters and confiscating their passports before they flee abroad, as it has happened in the past. “Most regulating agencies like the RBI, MCA refuse to take responsibility when such scams come to light. The SEBI is left with the unpleasant task of cleaning the mess. Which is why we have decided to take our job seriously and are investigating the many companies expected to go bust in the near future,” says a SEBI official.
The Sunday GuardianTop 3 lenders in consortium may need to declare 'wilful defaulter' before penal action
The Reserve Bank of India (RBI) may want at least three top lenders in a consortium to declare a borrower a wilful defaulter before penal measures become applicable and the case is taken up by an appellate authority, banking industry officials say. They believe the regulator might take such a step to prevent banks with a relatively small exposure from classifying any borrower a wilful defaulter as a pressure tactic..........
CAG Report Pulls Up KSFE over Lending Business
.................The State Government thus permitted the KSFE in September 2012 to carry on the existing activity of lending business along with the chitty business. The audit sought clarification from the Reserve Bank of India on the status of the KSFE. “RBI stated that it had clarified on May 2013 to the State Government that it could not conduct chit and lending business simultaneously and advised them to hive off the lending business of the company into a separate entity and register it as a Non- Banking Financial Company,” the report says..........
Is EMI on credit card helpful?
...............While the use of credit cards as a mode of payments has caught on well, most people don't realise the perils of reckless use of credit cards. If you spend beyond your repaying capacity and do not pay your bill on time, most credit cards charge prohibitively high interest rates in the range of 36 per cent and 45 per cent. So, how does one deal with this?...............
At AGM, Kapur questions YES Bank governance
.............In her address at the AGM, Madhu Kapur said she was fighting for the rights she had inherited from her late husband (Ashok Kapur), which had been denied to her. These rights, she said, were enshrined in the Articles of Association and approved by the Reserve Bank of India. “If we want our bank to be sustainable, it will have to be trustworthy at all levels, with corporate governance and transparency being truly observed at all times,”...........
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