A good piece worth reading - Dr. A Vasudevan

My view on RBI under Rajan can show regulators the way - SUCHETA DALAL

This is a good piece worth reading by every banker and surely by RBI officers in active service. I have one small suggestion to make. There could be implementation committees in each bank and in RBI and these committees could meet once a week in their own organizations providing inputs to either ED or DG in charge of operations about the implementation problems and successes and also suggest areas of inter-organizational coordination. I am not sure whether Ms Dalal would like to reflect over this idea (which in fact is in operation in the Central Bank of Nigeria) and if possible give some orientation to it to suit Indian circumstances. 

Message for RBI - Dr.T.V.Gopalakrishnan

My view on RBI under Rajan can show regulators the way - SUCHETA DALAL

A very well brought out message to RBI. The role of Ombudsman and BCSBI need to be examined in detail and there is ample scope for some synergies to be evolved.The Customer Service Department can play a key role in ensuring that banks are able to render complaints free service and like capital adequacy ratio, banks should be rated for their Customer Servive efficiency.The functioning of Local Boards of RBI also needs a thorugh review as it can do a lot in coordinating and guiding the banks, NBFCs, NABARD, Cooperative Banks and RRBs in their efforts to achieve Financial inclusion, improved credit to agricultural and rural segment and complaint free services. Local Boards can also be made for effective in Coordinating the actvities of NABARD,, State level Agencies in enhancing agriculttural production, storage, transportation and Distribution to better the supply position of food items to bring down inflation.

Thrust of trust by (re)tirees - R.Sridharan

A sympathetic view is needed by Government

Laying tracks for an institution and building it to a well established organization is a very tedious job and Reserve Bank is not an exception to this law. From day one of the commencement of this great institution, people started building this institution to a global level should not be left in the soil to be swallowed without any trace nor should be forgotten by the history.  At least those who are presently breathing still after attaining their old age with an expectation that a day will dawn for them in getting their dues by way of at least updation of their pension should not be deceived. Rumours going around that the updation will take place at any time used to serve these pensioners as a ray of hope but alas nothing has taken place in reality. The demand for updation is a legitimate right of a Government employee or the Reserve Bank employee where the Government in general and Finance Ministry in particular should try to assess the genuineness of the demand and sort out this long pending issue. Holding the power and turning a blind eye towards genuine demands is not a good governance and it should be ensured that the human rights should be protected in its own legitimate way. Even by granting the updation, I feel Government is not going to be at a great loss but earn the goodwill of Reserve Bank employees who are at the intellectual platform in contributing their mite to the nation building. At least now the new Government has been formed with a motto of good governance and ethical approach, we feel that good days will be returned to this country and all grievances of all the citizens will be resolved to reflect the Government’s noble policies to stamp the belief of the people in the Government’s functioning. Will the Finance Ministry at least now  look into the Reserve Bank retirees appeal in a positive manner and solve this long pending issue at the earliest?  

There is a thrust of trust by all the Reserve Bank retirees in the present Government’s approach to the country’s development. Many knocks at the doors of justice have gone futile  but  we hope the day is not going to be far away when one knock will be heard by the policy makers and the doors of justice will open shortly. 

- R.Sridharan 

Former Principal Private Secretary to the Governor

On a Tight Leash, PSU Banks Face Bankruptcy of Talent

..........It is not the only bank that's staring at a human resources crisis. Almost all state-run banks are in a state where if the current practice of joint wage negotiations and prohibition of lateral hiring are not abandoned, they will end up handing over their entire future growth to private sector peers on a platter. State Bank of India, the biggest, will see as many as 35,000 to 40,000 of its staffers retire in the next four years. These are not people who could be replaced by hiring freshers from colleges, but they need to be replaced by skilled people at the middle management level. The squeeze on hiring in the past is coming back to haunt state-run banks..........

Read - ET

SBI business per employee surges on large-scale hiring

.............The large-scale recruitment of Generation Next employees in the Officers and Assistant grade over the last three to four years has brought about a far-reaching attitudinal change among staff in their customer interface and services across the branches, the bank said............

Read - HBL

RBI Recruitment of Meritorious Sportspersons

The Reserve Bank of India invites applications from eligible Sportspersons for the posts of ‘Assistant’/ ‘Office Attendant’ in various offices of the Bank. Selection for the post will be through selection trial and Interview. The office-wise break-up of the posts is available on the Bank’s website. Candidates between 18 and 26 years of age and possessing necessary educational and sports qualifications are eligible to apply........

Read.......

Also read.........

NABARD organises school level awareness programme

........DDM, NABARD stressed that the objective of the programme is to generate awareness among the school children about Financial Literacy who in turn can percolate the message to the society. Further the programme also aimed at creating a small force of learned, educated and aware young citizens who are the future of this country. If children are made aware about financial literacy by way of various financial products, small savings, learning to invest, etc, they can plan their savings and invest them in a proper manner from an early age which can help them in future..............

Read - JK Newspoint

Slice of History - Financial Inclusion: It All Started in the 60s

..........That focus eventually culminated in nationalisation but not before RBI literally forced the commercial banks to expand to poorly-served areas.The first salvo in this direction was publicly fired by governor LK Jha in his address to Bombay bankers in 1967, where he went to the extent of suggesting `slowing down of branch expansion in urban areas'. The bankers privately told the governor that they would welcome this so long as their competitors as well as foreign banks were also kept in check. However, foreign banks, as Jha observed, were `obliged to confine themselves to port towns only' in order to make profits. A week later, .........

Read - ET

Anand’s book on economy released

Stray Thoughts On Political Economy, a book written by MANSAS chairman P. Anand Gajapathi Raju, has discussed the policies of Government and RBI and it should help the policy makers in reducing the gaps in economy, according to Vizianagaram Collector Kanti Lal Dande. He was speaking at a function organised at the M.V.G.R. College of Engineering,............

Read - The Hindu

Banks to secure ATMs by live CCTV monitoring

.......Leading banks that have initiated the process include State Bank of India, HDFC Bank, Punjab National Bank, and Union Bank of India. The Reserve Bank of India has also encouraged banks to put in place surveillance systems. While the RBI has not insisted on guards at every ATM, it has advised banks to try and have guards at all ATMs. Banks, however, say that...........

Read - TOI

RBI lets NBFCs work as banking correspondents

...........As of now, banks appoint individuals, small grocery stores and private enterprises as BCs. Early this year, an RBI committee headed by Nachiket Mor had recommended that the scope of BCs be expanded and suggested the possible inclusion of new entities as BCs. As per the new rules, even microfinance institutions operating as NBFCs (NBFC-MFIs) can operate as BCs. The central bank also issued rules for appointing non-deposit taking NBFCs (NBFC-ND) as their BCs. Banks and NBFCs operating as their agents, should ensure that “there is no co-mingling of bank funds and those of the NBFC-ND appointed as BC,” the RBI said..................

Read - Mint

Uday Kotak urges India to privatise state banks

............“My view is we have got to get bolder . . . if you want to fix banking, you have to fix the state sector, because it controls three quarters of the industry,” he said. “If you can bite the bullet and go below 51 per cent, that is the best way.”..........

Read - FT

Maharashtra will urge Arun Jaitley to withdraw RBI notification

.................... “We have decided to meet Mr Jaitley very soon. It is mandatory for the apex bank (Maharashtra State Cooperative Bank) to maintain a statutory liquidity ratio (SLR) up to 22.5 per cent. The RBI has specified that the apex bank will invest the SLR amount in government securities.” It is feared that the notification will have an adverse impact on liquidity of the apex bank and DC banks, affecting crop loans..........

Read - The Asian Age

Over Rs 9,000-crore agri loans to turn NPAs by June end in AP

..................State finance minister Yanamala Ramakrishnudu on Tuesday said they will bring pressure on the Reserve Bank of India (RBI) from the Centre if it did not agree for the reschedulement of crop loans in the state. "It is the responsibility of the banks to reschedule the loans when the farmers are under distress," he said while citing the declaration of almost all areas in the 13 districts as drought or flood hit last year. The authorities of the undivided government wrote a letter to the RBI for a similar relief in March this year but in vain as, ..........

Read | Business Standard

Panel on crop loan waiver meets RBI Governor

Former NABARD chairman P. Kotaiah and other members of a committee constituted by Andhra Pradesh government to work out modalities for crop loan waiver scheme, met Reserve Bank of India Governor Raghuram Rajan to apprise him of the reasons behind the decision and sought RBI’s support. According to sources, they reportedly told Mr. Rajan that farmers in the State were facing problems either due to frequent cyclones or drought. They were likely to face a similar situation in future too because of the .....

Read - The Hindu

Banks seek stringent norms for defaulters

..........Following a sharp rise in NPAs through the past two years, the Reserve Bank of India and the government have taken several steps to tackle the issue. The central bank has unveiled fresh norms to identify stress in the system at an early stage, and promised incentives to banks for doing so. However, if banks fail to act after stress is detected, they will face accelerated provisioning norms.......

Read | Business Standard

Court queries state on DCCB package

......After RBI struck down the three DCCBs' application to carry on banking operations last month, the courts were approached with the state government also being made a respondent. At a hearing held on Tuesday, the court directed the state government to clarify within a week the reason behind putting such a condition in the aid package. The banks were hoping once the package is declared RBI may reverse its decision or at least it may strengthen their case in the court. However, ..........

Read - TOI

RBI takes control of Mumbai co-op bank

The Reserve Bank of India has superseded the board of Mumbai-based Kapol Cooperative Bank and placed it under the management of an administrator, effectively taking control of the lender. The RBI has also prevented the bank from allowing any pre-mature withdrawal of fixed deposits.................

Read - TOI

RBI bans premature withdrawal of fixed deposits from Kapol Bank

..........RBI had appointed an administrator to run Kapol Bank over the week-end following reports of falling financial health including weak capital adequacy and high level of non-performing assets. RBI has also superseded the board of directors as there were concerns over its conduct. As a matter of safety, the banking regulator has curbed premature withdrawal of fixed deposits and loans against deposits, a senior bank official said. .........

Read | Business Standard

‘Naming Vijay Mallya a wilful defaulter tough’

.....As per the Reserve Bank of India norms, a wilful default happens when a company does not repay obligations despite having resources, or has not utilised the loan for other purposes or when there has been siphoning of funds or when the collateral has been sold without the lender’s consent. Strictly following these norms, Mallya cannot be deemed a wilful defaulter as there cannot be any malpractice or fraudulent motive attached to the issues at Kingfisher Airlines.............

Read - FPJ

UBI to focus on retail loans, expects 30-35% growth in FY15

..........The state-run lender expects 30-35 % growth in its consumer loan portfolio during the current financial year. "Retail loans will continue to remainour focus area, at least for now. It is one of our key strengths. We feel thatthere is lot of potential in the retail segment and we should exploit that opportunity,".......

Read | Business Standard

YES Bank to hand over AGM recording to HC

...............The court also asked Madhu Kapur to furnish documents pertaining to her correspondence with the Reserve Bank of India and the Securities and Exchange Board of India regarding the status of the promoters. The high court also said from now, any correspondence between the regulators and either of the parties regarding Kapur's change in classification status had to be exchanged by both sides. Earlier, YES Bank had written to RBI and Sebi, urging Kapur be declassified as a promoter............

Read | Business Standard