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.
Thursday, July 3, 2014
UN special envoy hails RBI's work on financial inclusion
Poverty definition immaterial for financial inclusion: Raghuram Rajan
.........“It doesn't matter that we have a precise definition. There's so much demand for financial services in the country that we don't need to delineate 'you get it, you don't'. Everybody needs it,” .............
Governance in the corporate sector - certain perspectives - G Padmanabhan
Valedictory address by Mr G.Padmanabhan, Executive Director of the Reserve Bank of India, at the 15th National Conference of Practising Company Secretaries (PCS) on the theme "Practising Company Secretaries: The Facilitator for Corporate Growth", Mumbai, 27°28 June 2014
....During the past two decades, the importance of good corporate governance has come to the fore. The concern has been reinforced, particularly as it relates to the financial sector, in the backdrop of the global financial crisis. Suffice it to say here that it essentially comprises acting in a manner as to enjoy sustained trust of all the stakeholders which can broadly be grouped into four categories: the owners, the lenders, the customers and the regulators. The literature on corporate governance is voluminous and I too have spoken about it elsewhere. It is not my intention to go into the principles and practice of sound corporate governance here today. After jogging my mind about the issues that I should flag to an audience like this, I concluded that, given my background, it might be worthwhile to talk about............
गोल्ड बॉन्ड संभाल सकते हैं आर्थिक हालात - एस एस तारापोर
Centre must set up gold bank, deposit accounts to check smuggling: Assocham
.............The industry chamber has mooted a proposal in this regard to the finance minister, nudging him to consider unveiling it in the upcoming Union Budget. "The gold bank would procure and retain gold abroad through offshore foreign currency borrowing. Using this gold from the gold bank, scheduled commercial banks can offer gold deposit account to their retail customers. finance minister could consider announcing it with the Budget," Assocham president Rana Kapoor said...............
RBI Seeks Quotes to Swap Gold to Improve Reserves Quality
..............The apex bank said the operation would "standardise the gold available with RBI in India with respect to international standards like London Good Delivery" and the gold acquired would be delivered to its overseas custodian, the Bank of England. Under the leadership of Governor Raghuram Rajan, appointed last year, the RBI has sought to modernise its market operations and improve the management of gold and foreign currency reserves that are worth a total of around $315 billion................
Grand farewell to the brand persona
United Forum of Reserve Bank Officers' Association & Employees, Belapur had organized a grand farewell to its beloved leader. The pictorial history of Shri Madan's journey of dedicated working in RBI captured from time to time was displayed near the stage. Aesthetic rangolis added colours to the event. The proramme commenced with traditional deep-prajwalan followed by garlanding of statutes of Chhatrapati Shivaji Maharaj and Bharat Ratna Dr. Babaseb Ambedkar. Shri Keshav Jagtap, Secretary, AIRBOA welcomed the dignitaries on the dais who were felicitated by the United Forum leaders of the Belpaur unit.
Singing to the tunes of a novel concept - 'The Belapur Signature Song' written by Shri Madan Khadgi was presented
by the staff. Then
Shri Madan Khadgi was felicitated by the United Forum, Belapur with a huge
garland (colloquially called as "Ajgar Har") and a traditional turban
(in Marathi "Feta").
The
dignitaries and the staff could not stop themselves in describing the good qualities of brand persona Shri Madan Khadgi, his ability to write, direct, produce and acting in the drama, to name the few.
His unbiased and selfless leadership qualities were praised by one and
all. Madan's balanced dual role as a
personnel officer of the Bank and trade union leader proved to be two sides of one coin. General Manaer (O-I-C) Shri Ajay
Michyari had special words for him. "Shri Khadgi speaks what he thinks and he thinks first and then speaks" Shri Michyari said and further added that Madan played both the roles of Personnel Officer
and Union Leader impartially. A grand farewell to the brand persona ended with vote of thanks by Shri Shashikant Pawar, Assistant Manager.
- Shashikant Pawar
- Shashikant Pawar
Achhe Din (kab) aanewale hai?? - K.N.S.Unni
Please refer to plea of Shri.P.P.Ramachandran to Governor Dr.Raghuram Rajan. Beyond doubt there must be a close relationship between the Regulator (RBI) and the Finance Ministry. A “Give and Take” philosophy must imbue their connection—not animosity. Currently the atmosphere one suspects is vitiated by hatred and suspicion. In the past many of our Governors stepped into RBI after serving as Finance Secretaries which inevitably resulted in RBI culture being modelled to suit the dictates of the mandarins of the Finance Ministry. However Dr.Jalan and Reddy did their best to arrest the imposition from the Finance Ministry. We hear that a decision was taken,may be five years ago, to amend the pension regulations but between them the RBI and Finance Ministry moved the papers back and forth for a long time until the day the then Finance Minister who attended the Board Meeting asked the Governor and the Secretary dealing with the case to have a one to one meeting and find a solution. My humble query to the powers that be is simple-- whether such a lot of time should have been wasted to the great detriment of the old and dying retirees and also why the Treasury and Central Bank did not adopt an attitude of give and take to solve the issues long long ago—before hundreds of Retirees joined the Maker. Happily the scenario has changed and we have a new government under the leadership of one who promises us Achhe Din. I trust that the darkest period in the life of retirees is over and day light would soon come.A happy sign of Ache Din is perhaps the reshuffle of Secretaries in the Ministry. The insistence of the Government that the RBI should revise the pension only once in ten years whereas the wage revision would be once in five years raises the question whether we are back ward looking or forward looking Rather than pull the RBI retirees back to the level of Government employees a forward looking move could have been to reduce the ten year period prescribed for government employees to five years thus making both groups happy. One should be pardoned for expecting the Government to add to the welfare of the working class rather than abridge it.
- K.N.S.Unni, Adviser (Retired)
- K.N.S.Unni, Adviser (Retired)
RE 1 COIN DELAYS YATRA WORTH CRORES
The temple, the devotees and the state pumped in undiluted devotion and crores of rupees to make the 137th chariot procession of Lord Jagannath in the city a grand success. But a Re 1 coin delayed the annual fair that is normally organised with military-like precision and months of preparation. ............
No signal yet for chariot wheels
My View on "FINDING A REPLACEMENT FOR CHAKRABARTY":
Reserve Bank of India is one statutory body in the country which has been able to withstand the pangs of succession issues at the top for more than 7 decades of its existence, thanks to the maturity shown by those in charge of governance in Delhi. Recent developments in relation to filling up of top positions in judiciary, executive including those like state governors, statutory bodies and public sector organisations signal the need for transparent and rational succession plans.
Developments like easing out of a Deputy Governor (Subir Gokarn) for no fault of his and a short-lived controversy about selection of a Deputy Governor from inside and the present delay in deciding on filling up of the vacancy caused by Chakrabarty’s resignation brings focus on the need to ensure continuity at the top in organisations like RBI and perhaps a quick review of the selection and placement procedure at higher levels. Perhaps the pool from which selection is made may need some change and the age profile (raising the upper age limit by 3 to 5 years from the present ‘normal’ at 62 years) need a review.
Formulating and implementing succession plans for top government/public sector jobs with professionalism and efficiency in a graceful manner is imperative for allowing the institutions to function with reasonable functional autonomy within the legislative mandates.
Another point is that it will be next to impossible to attract talent to these government positions, given the meager remuneration offered. It is time to revise this, factoring in market realities. The present practice has resulted in compromises on quality and the nation can ill-afford this state of affairs.
- M.G.Warrier
Lord Jagannaath's chariot wheels move very slowly and the Lord for a week from yesterday is in hibernation and would be back by 9th July. Hope the new Dy. Governor's appointment would be announced!!
- Yerram Raju
Bankers Wage Revision in Positive Direction: UFBU Representation and Govt indication
.....As information received there are difference of opinions between bank employees unions and employees on hike of salary percentage When the demand was raised in 2011 the hike of 25 % was reasonable but for today its required to be 35% minimum. As [per industry sources, the earlier govt was not in mood of settlement due to various political and hostile attitude but new govt approach is seems to be practical and bank employees wage revision is expected to be finalized in August 214 and bank employees may get increased salary from October 2014.............
Timely suggestion
My View on "Review the RBI - A.Seshan":
This is a timely suggestion.
It would be worthwhile to revisit the preamble of the Reserve Bank of India Act, 1934 which reads asunder:
“An Act to constitute a Reserve Bank of India.
Whereas it is expedient to constitute a Reserve Bank of India to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage;
And whereas in the present disorganization of the monetary systems of the world it is not possible to determine what will be suitable as a permanent basis for the Indian monetary system;
But whereas it is expedient to make temporary provision on the basis of the existing monetary system, and to leave the question of the monetary standard best suited to India to be considered when the international monetary position has become sufficiently clear and stable to make it possible to frame permanent measures;
It is hereby enacted as follows: -”
Beyond some cut and paste, because of changes in the institutional structure in the financial sector or external policy compulsions, the RBI Act has not yet been subjected to the comprehensive review, envisaged in its preamble.
- M.G.Warrier
Plea for ‘no tax regime’ for pensioners
The Vellore Institute of Development Studies (VIDS) has urged the Central government to introduce a bold ‘No Tax Regime’ for all pensioners during the forthcoming Union budget, in order to enable the pensioners to lead a peaceful retired life. It also pleaded for exemption from income tax on all retirement benefits, including lump sum payments and monthly pension...................
Little tax relief on the cards
............Tax experts say the government might not increase both the limits substantially, though a total increase of at least Rs 1 lakh crore is needed, as persistently high inflation had eroded household savings. "The government should give some benefit to people; there might be other ways to offset the revenue loss by cutting subsidies, higher disinvestment or improving compliance. If it is raised to Rs 3 lakh, it is a nominal increase," said Divya Baweja, senior director, Deloitte...........
Inter School Quiz
The preliminary round of the All India Inter School quiz conducted by the Reserve Bank of India will be held in Karnataka at the following places between 9.30 a.m. and 12.30 p.m.: Shikshakara Sadan Auditorium, Kempegowda Road, opposite Cauvery Bhavan, Bangalore on August 14; Navajyothi Sabhanagana, JSS College for Women, Mysore, on July 28; and Loyola Hall, St. Aloysius Pre-University College campus, Mangalore, on August 1. Schools and colleges can send in the entries of a two- member team. The last date for registration is July 18. For details, email:hrdbangalore@rbi.org.inor call 080-22180416/080-22180338
RBI directs banks to oppose loan waiver proposal
A fresh diktat from the Reserve Bank of India, barring banks from giving in to government pressure and waive off farm loans, could be a death blow to lakhs of farmers, who are seeking a bailout package..........
Now comment on credit report disputes
..........For instance, as banks keep on updating your credit behaviour, there may be a manual error in the information fed in. So, if your outstanding credit was Rs.5,000, but the bank accidentally entered it as Rs.50,000, the error should not effect your credit performance. The committee had suggested that additional fields should be created in the credit report to include dispute codes, consumer comments on the dispute and details of collateral..................
Review bank branch audit norms: ICAI
..................The contention of the CA Institute members’ are that banks are guided by their overall aggregate exposure in branches with advances of below ₹ 20 crore and feel that it may not be material enough to warrant a statutory audit every year. “They (banks) look at the aggregate picture and contend that such branches account for only say 15-16 percent of the bank’s total advances. But what they don’t realise is the risk factor. If there is increased NPA in such branches, the entire profit of a bank in a financial year could get wiped out”, a chartered accountant said. Rather than only looking at “materiality” in terms of advances, the risk factor also needs to be considered by the banks and banking regulator, it was pointed out............
Is time running out for Dhanlaxmi Bank?
.......At the peak of the crisis, the Reserve Bank of India (RBI) was apparently in favour of merging Dhanlaxmi Bank with another financially strong bank. "Former RBI governor D Subbarao was in favour of the merger," says a person familiar with the developments at the bank. "But the state government of Kerala opposed the merger on the ground that Dhanlaxmi was the only home-grown Hindu bank from Kerala." Dhanlaxmi, being one of those old-generation private banks, was given a chance to reinvent itself under a new management and Jayakumar was given charge in May 2012. While other lenders in a similar position, like Federal Bank and Ratnakar Bank, are on a strong footing now after a leadership change, the Thrissur-based lender has remained trapped in a web of increasing cost and high slippages (in non-performing assets), from which it is still yet to recover.........
Plan to cover all unbanked GPs in Odisha prepared
..............."Keeping in view the existing infrastructure (connectivity, power supply, communication) and man power and viability aspect, it was viewed by all banks in the meeting dated June 24, 2014, that would be an herculean task to open huge number of branches in the unbanked GPs within three years. Hence, it was unanimously decided to prepare the branch opening plan for the period 2014-15 to 2018-19 covering five years instead of three years as suggested by the state government".......................
Sebi chief U K Sinha to meet Arun Jaitley tomorrow
........The meeting assumes significance as Jaitley is gearing up to present his maiden Budget in Parliament on July 10. Sebi has been pressing that there is a need for uniform tax treatment of retirement related investments irrespective of the investment routes - pension products launched by mutual funds or the retirement funds managed by the government's EPFO (Employees' Provident Fund Office)...........
Government support to state-run banks to be factored in: S&P
...............S&P said the proposal does not change its assessment that the government is highly supportive of banks and that it would reassess the tendency of the government to provide extraordinary support at a later stage of the development of the resolution regime. However, S&P noted that garnering political commitment for such sweeping changes would be difficult. These changes would take a while to implement, making it tough.............
R-Cap in talks with Sumitomo Mitsui for banking initiatives
The Anil Ambani-controlled Reliance Capital Ltd is in talks with Japan’s Sumitomo Mitsui Banking Corp. for various initiatives in banking for over a year, company said on Wednesday. In a statement to BSE, the company said it was “constantly exploring various strategic partnerships, which may or may not necessarily result into transactions.”...........
Bandhan starts recruitment drive
.............Chairman of Bandhan Chandra Sekhar Ghosh earlier told PTI that the proposed bank would harness the best skills available in the market, so that customers were able to get the flavour of a new generation bank. However, he said that the shift from an MFI (micro-finance institution) to a new-generation bank would require a change in the mindset of the existing employees as they were so far dealing with poor people living in the semi-urban and rural areas..........
World Bank officials to make field trip to Bandhan Financial Services
Onno Ruhl, Country Director, World Bank, along with other senior officials of the organisation will visit the Kolkata-based Bandhan Financial Services Pvt Ltd on July 10. Bandhan, a micro-finance company, was recently given banking licences by the Reserve Bank of India (RBI)..........
Wrongly billed for your credit card? Here’s what RBI says banks must do
.........the Reserve Bank of India has a set guidelines that banks need to follow. On Tuesday, the apex bank issued a master circular on credit card, debit card and rupee denominated co-branded prepaid card operations of banks, and here's what it had to say:..............
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