.......Board is not above Board is a fact known to both the Government and the RBI. The tax payers and depositors have no say in the appointment of Board of directors and they generally bear the brunt. Board of directors and indisciplined borrwers enjoy merrily. The game goes on.
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, June 21, 2014
FinMin mulls fixed 5-year term for PSB chiefs
..........The Union finance ministry is considering a proposal to provide a fixed tenure of five years to heads of public sector banks (PSBs). The aim is more operational stability and accountability. It is also considering changes in the appointment procedure of wholetime directors and revising the criteria for selection of non-official directors on PSB boards..............
Needed, more deliberation
...............Over a year ago, the then Governor, D. Subbarao, sought to protect the RBI’s turf. It is now Raghuram Rajan’s turn to shift the spotlight to what he considers to be ill-conceived recommendations. For instance, the enhanced role being given to ill-equipped and inexperienced appellate tribunals will undermine the role of regulators and paralyse the system. Underlying Governor Rajan’s strong words is the belief that an overhaul of the financial architecture as suggested by the Srikrishna Commission will have to be preceded by more deliberations, a point of view that will be appreciated by Finance Minister Arun Jaitley..........
Counterfeit currency note problem not serious in Madhya Pradesh: RBI
BHOPAL: Problem of counterfeit notes is moderate in Madhya Pradesh compared to other states, going by Reserve Bank of India. But the apex financial institution also pointed out that people are by and large unaware of features that distinguish real currency notes from the fake ones. For every 10 lakh notes, only six counterfeit notes are detected on an average. "We have received only one complaint about a fake currency note delivered from an ATM machine in the past one year," a RBI official said........
Bankers Fall in Love With Sound of Music
.....Most of them have been born into middle-class families which nurtured values like simple living, academic excellence and encouraged children to dabble in fine arts. They have managed to retain the values even after making very successful careers in fields dubbed as dry as finance, which is all about pragmatic decisionmaking with little room for other interests. But these people have found time outside their core profession to seriously pursue their hobbies, which for them have also acted as a stress buster while cutting deals and managing balance sheets and bottom lines............
Read - ET
AIRBREA - Resolution on Increase in Ex-gratia for Pre1986 Retirees
........... The meeting expresses its gratitude
to these elders as a result of whose struggle post- 1 January 1986 retirees are
getting the present pension benefit. While making the most sincere request to
the Respected Governor to enhance the present meager ex-gratia plus Medical
Allowance being paid to them, the CEC makes the following observations:.............
Read..........
Chidambaram favours pruning of PlanCom
.............Describing it as his “personal view” and not that of the party, Chidambaram said, “My personal view is that the Planning Commission should be a much more limited body, tasked with drawing up plans. At the moment, it is too big, flabby and unwieldy.”............
'No fresh funds for state-run banks in budget'
..........The Reserve Bank of India-appointed P J Nayak Committee had called for lowering the government's stake in public sector banks to 51 per cent to meet their capital requirements under Basel III norms and suggested setting up a holding company for all public sector banks. According the proposal, the proposed holding company would hold the government's stake in all state-run banks and raise capital through debt and equity on their behalf............
Why the mobile phone is the next battleground for hackers and payment companies
........Mobile payment companies need to mitigate this vulnerability by implementing inactivity timeouts, auto locking after a particular number of incorrect entries to automatically re-locking the secure element. Dual approvals for high ticket transactions as well as enrolling customers for predefined alerts would be beneficial in mitigation of mobile payment frauds.......
Most govt banks lose the plot on Casa
............The move is aimed at making the banking sector more prepared for any liquidity disruptions in the short run. Understandably, banks with lower exposure to high-cost bulk deposits and higher share of current and savings account deposits will find it easier to meet the norms. Banks having excess government bonds ..........
Banks in Tamil Nadu report 119% credit-deposit ratio
............ Total credit of the banks in Tamil Nadu registered a year-on-year increase of 13.50% by March 2014 and touched Rs 6,05,563.11 crore. The State Level Bankers' Committee of Tamil Nadu today convened its 138th SLBC Meeting to review the banking industry performance in the State. The share of Priority Sector Advances stands at 45.54% as against the national average of 40%. The percentage of Agricultural advances........
Getting financial inclusion back on track
.............Banks will need partnerships to roll out a nationwide retail payments infrastructure, with a clear blueprint of the architecture, licensing (payment institutions), and the commercial model (who pays how much to deposit/withdraw cash). It is useful to reiterate the fundamentals: while banking is an anchor economic sector with fiduciary liability, payments are essentially technology-based systems and processes. The nature of risk and mitigation differs much between..................
Financial Inclusion To Boost Markets
.........However, lack of formal banking prevents large sections of the population from being part of the capital market even indirectly . The National Pension System, which manages retirement savings of people and offers superior returns, is the ideal route for the poor to indirectly invest in stocks. But for the populace at large to start saving in such collective saving pools, they first need to have a bank account.
Read - ET
A long battle against inflation
..............The optimism was also based on hopes that consumer price inflation is on the downward glide path charted by the Reserve Bank of India. The credit default swaps market is also hinting at rising bond yields. The main concerns are well-known:..........
Will linking Aadhaar, India Post revolutionise banking?
Recently Bindu Ananth participated in a panel discussion as part of Network 18′s “Change India: Experiments with Big Ideas” TV series. The discussion revolved around the idea of setting up of a new payments bank, and how linking Aadhaar and India Post could revolutionise Indian Banking.
Watch the full panel discussion - Watch the video
Aadhaar=/citizen card
.........While a citizen card is a good thing, Aadhaar is quite distinct from the home ministry’s National Population Register (NPR) which is where the citizen card would emerge from. Ideally, they should have been part of the same project but they were separated for reasons of speed—right now, for every three Aadhaar numbers, NPR has issued just one. While it is still not clear the NPR’s detailed surveys of an area and its residents before doing biometrics will actually weed out non-citizens—it would be a good idea to see how it works .............
The regulatory mess of commodities trading
...............Comparing trading of commodities and bonds and the role played by incumbent regulators FMC and RBI, respectively, Dr Rajan said, the FSLRC also seems to be inconsistent in its emphasis on synergies and regulatory uniformity. "For instance," he said, "in forward trading where a real commodity is delivered, regulatory oversight over the real markets for the commodity where price is discovered, as well as over warehouses where the commodity is delivered, may be important sources of regulatory synergy. Should the FMC be subsumed under the Unified Financial Agency or would it be better ...............
Bombay HC directs YES Bank to hand over all documents to Madhu Kapur
The Bombay High Court on Friday directed YES Bank to hand over all the documents pertaining to the bank's communication with the Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) on challenging Madhu Kapur's promoter status to Kapur's counsel by Friday evening..........
Canara Bank to beef up asset quality
..........“We have been very proactive on the recovery front. We have three general managers for recoveries and monitoring the accounts. The RBI has come out with new guidelines for monitoring the accounts. While we already had the system in place, we have now a structured way of doing it. With improvements in sentiments, we don’t expect any major slippages in first quarter,”.........
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