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.
Tuesday, June 17, 2014
RBI is answerable to Parliament
FMC sets up panel to examine feasibility of CCC for commexes
Abolish post of revenue secy: Shome panel
.............“The present functions of the department of revenue should be allocated to the two Boards. This would empower the tax departments to carry out their assigned responsibilities efficiently,” the Tax Administration Reform Commission (TARC) said. Instead of a revenue secretary who is an Indian Administrative Service officer, it suggested a governing council, headed by a chairperson of the two Boards, by rotation, and with participation from outside the government, to be set up at the apex level to oversee the functioning of the two Boards................
Special category financial profligacy
.....In Seemandhra’s case if the money asked for was for fulfilling infrastructure gaps—as Hyderabad has gone to Telengana—there would have been some merit in the demand. But Naidu wants to write off farm loans. The demand should not even be considered. This is particularly so, since the limit on state borrowing imposed by the Reserve Bank of India (RBI) is the only obstacle to Naidu’s plans of throwing R54,000 crore at his pet project. To put the figure in context,..................
Innovative financial inclusion models are the only solution
............Is this business profitable for Ratnakar Bank? Are you doing this for survival or by force?
Ahuja: We started our journey as a new transformed bank two-three years ago. We had to pitch against SBI and so many other banks for the segment of the market which is quite well banked and understood. We bet that financial inclusion—what we call development banking—would become a fairly significant business for us in the next five to 10 years. We created a bank within a bank for that, our entire financial inclusion strategy is structured on a very different platform than the conventional bank. We don’t use the...................
Large industries make MSMEs' cash flow lumpy, says RBI Dy Governor Gandhi
.........“There is also an oft-heard complaint from bankers that MSMEs are often quite lackadaisical when it comes to settling their dues. It needs to be recognised that MSMEs often act as ancillaries to large industries, and their cash flows are lumpy. The business orientation of large industries often affects the MSMEs directly, in turn hampering the recycling of funds and business operation of MSME units. “Banks need to take a proactive view, carefully analysing the linkages of the MSME units, when ..............
RBI reviewing regulatory framework for NBFCs: RBI Deputy Governor
.......While delivering the 33rd Frank Moraes Memorial Lecture organised by United writer's association and the Frank Moraes foundation, Gandhi said as for the regulator, it is the constant endeavour of Reserve Bank to enable prudential growth of the sector, keeping in view the multiple objectives of financial stability, consumer and depositor protection, and need for more players in the financial market, addressing regulatory arbitrage concerns while not forgetting the uniqueness of NBFC sector.........
Wage hike talks inconclusive
............So far about nine rounds of negotiations have taken place. While a senior IBA functionary dubbed the trade unions’ 25 per cent wage hike demand as ridiculous, the unions feel the bank managements are being plainly stubborn. The talks ended on an inconclusive note on Friday. The ninth five-year bipartite wage settlement, which ran from November 1, 2007, to October 31, 2012, resulted in bank employees getting a 17.5 per cent pay hike................
RBI asks cos to have director to ensure AML norms compliance
............"If the director, in the course of any inquiry, finds that a reporting entity or its designated director on the Board or any of its employees has failed to comply with the obligations... He may by an order, levy a fine on such reporting entity or its designated director on the Board or any of its employees, which shall not be less than Rs 10,000 but may extend to Rs 1 lakh for each failure," RBI said in a notification today...........
Make taxpayers’ life easier: Panel
A government panel on tax reforms has recommended sweeping changes, including pre-filled returns for individuals, a common return for I-T and wealth tax, and an overhaul of the administration to focus on customer satisfaction and reduce disputes. The Tax Administration Reforms Commission (TARC), headed by Parthasarathi Shome, has said that the government needs to ensure that refunds are paid, with interest, within a stipulated timeframe...............
Read - TOI
Read - TOI
Clarification - Obituary
Dear Sir,
Regarding the obituary news of Mrs D Sukumaran Nair appearing in the Vitalinfo there is a small clarification. Mrs Ramani Nair, W/o Shri Sukumaran Nair passed away. Shri Sukumaran Nair was working as DGM, DBOD ( Not Mrs Nair)
Regards
- KP Madhavan Nambissan
P.S. The error is deeply regretted which occurred while editing the info correctly reported by Shri P.P.Ramachandran.
P.S. The error is deeply regretted which occurred while editing the info correctly reported by Shri P.P.Ramachandran.
NBFCs: State Seeks Centre’s Intervention
...............The State Government has administrative limitation in enforcing the fair practice code prescribed by the RBI which necessitates unavoidable intervention by the Central Government. In view of this, the RBI was requested to take effective steps to check and control the rampant growth and operation of unlawfully functioning NBFCs,” Chennithala said in the letter. “However I feel that necessary directives from the Central Government to the RBI and all public sector financial institutions working in our state is necessary,” he said...........
Payment banks barred from any other financial operations
The Reserve Bank of India (RBI) has accepted the Nachiket Mor panel’s recommendations on introducing payment banks, but has made significant changes on the characteristics of the proposed entities. To start with, the central bank will set the initial capital requirement at Rs 100 crore as opposed to Rs 50 crore suggested by the Mor panel. For the purpose of computing capital adequacy ratio, payment banks will only factor in operational risk and not market risk and credit risk, unlike full service banks.......
RBI should reveal top defaulters’ names
............The RBI currently circulates a list containing details of non-suit filed accounts of defaulters owing Rs. 1 crore and above, besides that of wilful defaulters with outstandings of Rs. 25 lakh and above. But these are only to banks and financial institutions for their confidential use. According to the RBI, this information on defaulters is being held by it in a ‘fiduciary capacity’ on behalf of the banks. Such posturing, though, negates the very purpose of compilation of the defaulters’ list. In fact, one of the stated objectives of the Central bank when it first issued a circular on disclosure of information on defaulters (No DBOD No BC47/20.16.002/94 dated 23.04.1994) was to “make public the names of the borrowers who have defaulted”. The argument of banking secrecy will not wash any more....................
Why should government fund PSU banks all the time?
......Press reports indicate that some of the public sector banks (PSBs) are seeking more capital ahead of the budget, which is scheduled to be presented by the second week of July. According to these reports, cash-strapped public sector banks "hit by a higher proportion of stressed assets and global Basel III requirements" have begun listing out capital requirements ahead of the budget in July.........
PSU banks' asset quality woes likely to continue: Fitch
......RBI Deputy Governor H R Khan had recently said that though there was some moderation in non-performing assets of banks, it would be too early to say that the industry has left behind the worst. The Fitch report said that efforts to deal with reported NPLs may mean the peak in stressed assets could be lower than its earlier forecast of 15% by FY'15.........
Cosmos Bank to open 4 branches in Tamil Nadu
.......The branches, one in Chennai city and one each in Coimbatore and Hosur, will be opened during this financial year. The four branches of Amravati Peoples’ Bank which merged into the Cosmos Bank, will be shifted to the State..........
Mergers will cost SBI Rs 5,000 crore
............... “According to an internal assessment about Rs 1,000 crore is required for the merger of one associate bank to itself and it takes about a year to reorganise and rehabilitate the employees. Capital will be a key concern for the bank as it will also have to set aside funds for growth and expansion....................
Dena Bank targets Rs 500 cr SME lending in UP
........The Bank has planned to establish specialised NRI Branches, Retail Processing Hubs and SME Processing Centre across India for faster transactions and loan approvals. "We are focussing on small advances to the agricultural and SME segments for increasing our lending portfolio and credit ratio," .......
Central Bank in image makeover
..........The bank’s Executive Director, BK Divakara, was in the city to inaugurate the renovated premises of the bank’s Mid-Corporate Finance Branch and Main Branch on Friday. Speaking to Business Line on the sidelines of this function, he said the bank’s Board has set aside a sizeable budget for the refurbishment exercise. “This main branch commenced operations from this premises in March 1935,” he said, bringing to mind the rich tradition and history of the bank. The total outlay for refurbishment of branches has been estimated at Rs. 650 crore. Asked the need for taking up this mammoth exercise after all these years, he said, “We not only believe in customer satisfaction, but in their delight as well to sustain and survive in this competitive environment.”..........
Sebi asks depository participants to share FPI info with banks
........The latest move is part of Sebi's efforts to harmonise KYC norms with that of the Reserve Bank of India (RBI). Sebi-approved depository participants are responsible for granting registration to FPIs under the new framework. "DDPs (Designated Depository Participants) are advised to share the relevant KYC documents with the banks concerned based on written authorisation from the FPIs," the Securities and Exchange Board of India (Sebi) said in a circular. Accordingly, .......
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