............Rather than strong ad hoc measures such as drastic reduction in subsidies followed by rollbacks, the finance minister has decided to set up an Expenditure Management Commission, which will inter alia also recommend a comprehensive and enduring programme of reduction in subsidies. The Expenditure Management Commission will have a larger remit and locate areas where expenditures can be curtailed without loss of welfare, which would then enable the government to facilitate such expenditures which meet imperative social needs. The Commission would be undertaking...........
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.
Monday, July 14, 2014
Demanding to be included - Dr.Subir Gokarn
...........Enormous amounts of strategising, mandates to banks and other financial intermediaries, incentives and disincentives and so on have gone into the process. And yet where we stand today suggests achievement far less than expected, let alone desired. Thus far, the debate has revolved round the "supply side" of the equation - the appropriate organisational and incentive frameworks for expanding financial access........
Active middlemen and inactive institutions - Dr.T.V.Gopalakrishnan
............ NABARD which can be the best coordinating agency and problem solver has miserably failed in taking care of farmers interets, There is a Local Board in RBI which can play an effective and proactive role in coordinating and guiding all local authorities in various states and banks including NABARD has not been taking any interests although they can be easily an effective and very useful tool .................
Theory and practice
.........Generally, the huge pile of papers presented in the form of Economic Survey and Budget documents, which are produced in "secrecy", do not mean much to the common man beyond some price and cost rises, and increase in expenditure on account of taxes and other levies. Think of a day when the Economic Survey gives a realistic account of the "wish list" of the people who..........
The good is in the detail
.......... I propose to appoint a committee with representatives from the Finance Ministry, Ministry of MSME, RBI to give concrete suggestions in three months.” In the budget discourse monopolised by corporates, the financial world and the elite, this profound idea has been completely ignored. That Small and Micro Enterprises (SME) form the backbone of our economy is a slogan that has been a part of the national economic discourse for long. But beyond oral compliments, nothing great has been done for them. Also, there is very little awareness about this vital segment of our economy............
RBI dividend in FY15 may be more than budgeted
.......... Finance secretary Arvind Mayaram told FE that RBI will pay R46,000 crore to the government as dividend this fiscal, compared with R33,010 crore last fiscal and a similar amount envisaged in the interim budget. This year's dividend amount could turn out to be even higher, due to the new accounting philosophy recommended by the Malegam panel for the central bank, he said............
The Dollar Trap - Book Review by P.P.Ramachandran
.........The author has arrived at a judgement that the dollar will continue to reign as the leading reserve currency in the near future. The dollarcentric equilibrium seems to be unstable with big risks for the entire global economy. The fear of its decline and the resultant devastation itself lends a measure of equilibrium to the dollar. This is a painstakingly researched book and throws a flood of light on the omnipotence of the dollar and deserves to be read by economists, planners, financiers and students of banking and finance............
RBI receives over 76,000 complaints against banks
...........The reply to a query by RTI activist Abhay Kolarkar informed that offices of 15 ombudsmen appointed by the apex banks received these complaints within a year. Chief information officer with RBI DG Kale provided a big list of banks that included nationalized, cooperative and private ones, against which the complaints were lodged at ombudsmen offices mostly located in the state capitals........
APMC traders eye gadgets to detect fake currency
NAVI MUMBAI: The wholesale trader community at the five APMC markets in Turbhe have taken serious note of the rise in incidents of fake currency being circulated on the premises. Though the police have nabbed many accused for possessing fake currency in the past, the trader community, too, has started taking precautionary measures to prevent being cheated. About 80% of the wholesale traders, who handle a lot of cash daily, have started using machines to detect fake currency...............
This is not financial inclusion, Mr Modi
.........For years now, the Reserve Bank of India (RBI) has been trying hard to expand banking services in Asia’s third largest economy where, according to a 2012 World Bank working paper, only 35% of adult population has access to the formal banking network. For the first time, in January 2006, the RBI had allowed banks to appoint BCs and address the so-called last mile problem in providing banking services to the masses. The scope of business correspondents has continuously been extended over the years. In the last week of June,.................
Challenges for Senior Bankers To Make Frustrated Young Bankers As Part of the Bigger Bank Family
.............The senior bankers need to be sensitized about the fears and the psychology of the new recruits. The young bankers needs to be taught slowly the art of adopting to new environment, rather than adopting the methods of teaching them through punishments even for small aberrations like taking a day's leave without information etc. Certainly they are adult but they need time to adjust to new hostile work environment after a cool college life. They need to be give time to overcome the fears generated by lose talks in the branches / administrative offices. Young bankers too need to learn the art of adjusting to the new environment and.............
Banks use analytics to check fraud in online payments
...........“There are two kinds of fraud detection in payments: One is during the transaction, and the other is using analytics to identify suspicious transactions based on past behaviour. We specialize in the analytics part,” said Ganapathy. Whenever there is a transaction that is out of the way, it will trigger an alarm at the bank’s control centre which will immediately call up the customer or send an SMS to verify the transaction...........
Demand for Formation of NRBI (National Rural Bank of India)
..........All the committees appointed by the GOI, RBI & NABARD have categorically rejected the proposal of “merger of RRB with Sponsor Bank” and most of them have recommended either for formation of NRBI or five Zonal Rural Banks or State Level RRBs. Sir, we have been demanding for more than three decades for restructuring the RRBs to form NRBI at the Apex Level with State Level RRBs, totally delinked from Sponsor Banks for the reasons that –.........
NABARD awards for best farmer’s clubs
The National Bank for Agriculture and Rural Development presented awards to the best performing farmer’s clubs to mark its 33rd foundation day recently.They were presented by Finance Secretary K. Shanmugam for best performance in technology transfer, input supply, credit facilitation and village development. RBI Regional Director J. Sadakkathullah and NABARD Chief General Manager K. Venkateswara Rao spoke.
Nabard launches RuPay Kisan cards
.........."This is the first time that RuPay Card, which is in the nature of ATM cum Debit Card, is being issued by any cooperative bank in the state of Haryana," said Nabard Chief General Manager (Haryana) D V Deshpande. He said the issue of RuPay cards by cooperative banks will enable them to improve their customer service and bring it on par with any other bank to farmers and other customers.........
NPS needs tax sops, better reach, say fund managers
.................Pension earned from the NPS after retirement is taxable. An employee’s contribution up to 10 per cent of his basic salary and dearness allowance is eligible for income tax deduction within an overall Rs 1 lakh limit. The NPS also offers an extra income tax deduction if an employer contributes 10 per cent of the basic salary plus dearness allowance to an employee’s NPS account. This has no upper limit. “Some tax sops should be provided to push this product. We had expressed this concern to the finance ministry,”........
Uniform taxation for retirement products
...........“It’s not clear what uniform tax treatment for pension funds and mutual fund-linked retirement plans would mean. Right now, under section 80CCD (1), the employee gets a deduction of up to 10% of the salary on contributions in NPS. This deduction is capped at Rs.1 lakh. Under section 80CCD (2), the entire employer contribution up to 10% of the salary is deductible in the hands of the employee. Could the uniform treatment refer to giving the same benefits to mutual fund retirement plans as well?”............
Now, you can re-invest only in one house to save tax
......the explanatory memorandum to the Finance Bill has explicitly laid down that the benefit of capital gains tax exemption is intended only for re-investment in one residential house in India. The relevant sections of the I-T Act have thus been amended.
Read - TOI
Insurance policies with low cover to attract TDS on surrender
............While death benefit under the plan is always tax free under Section 10 (10D), the benefits under the Section are available to schemes only if the premium paid in not more than 10 per cent of the sum assured. It has, however, proposed to keep the small tax payers out of the net and said that there will be no deduction within this provision if the aggregate sum paid in a financial year to an assessee is less than Rs 1 lakh.........
ITR filing: CBDT launches new tax calculator for taxpayers
.............he 'Systems' directorate of the department has recently launched the new online facility where a taxpayer, individual, corporate or any other entity, can compute the liability and this filled up format can even be sent to a private email or to the email of the tax planner, intermediary or Chartered Accountant........
Investment limit hike makes PPF more attractive
.............The scheme is for 15 years. On maturity one has the option of continuing it for a further five years or encashing both principal and interest. There is no tax on the interest encashed. Interest is paid at 8.7% per annum and it is entirely tax free without any limit. Interest alone grossed up without taking the 80C benefit amounts to nearly 15%, which is significantly better than what one may earn on a fixed deposit (8% to 9% gross). It should be noted that interest is calculated..........
AIBEA demands mechanism to deal with banking defaulters
.................."The wilful default of bank loans should be made a criminal offence", AIBEA general secretary, C H Venkatachalam, told reporters here. "Such defaulters should not be allowed to hold office of public interest or contest in elections", he said, adding that the banking regulator should publish the list of such defaulters, since over Rs 5.65 lakh crore of public funds were locked up as NPAs.......
Team from IIT-M studies site of fire
.......A team from Indian Institute of Technology-Madras (IIT-M) inspected the accident site on Sunday. Upset over the damage to the heritage structure, but relieved there was no loss of life, SBI general manager Sanjiv Chadha said on Sunday that the three bank branches would be up and running from Monday.........
Monetising property: Advanced groundwork at Bank of India
.............Explaining the arrangement for such a transaction, a senior BoI executive said the Mumbai-headquartered bank could float a wholly-owned subsidiary for the deal. The selected real estate assets (buildings, head office premises and residences) would be transferred (formally, sold) to this subsidiary, a Special Purpose Vehicle (SPV), at value..........
Banks must boost MSME lending
..............A study by the International Finance Corporation shows that the commercial banking sector provides only about 10-15% of the recurring credit requirements of the MSME sector, which it estimates at R20 lakh crore at the lower end and R32 lakh crore at the higher end. Non-bank companies provide about 8-10% while at least 75% of the requirements are met from non-formal and non-organised sources.......
People are comfortable dealing with a public sector bank
............Banks are traditionally accustomed to selling single-premium plans because they are comfortable with one-time pay, guaranteed products such as the fixed deposits. That’s the only place where we are not aligned, and that’s where our team comes in. Our bank partners like traditional plans because these have guarantees built into them, which their customers demand..............
BRICS Bank on Agenda as Modi Takes Midfield
.........This edition of BRICS is significant as it is expected to witness the creation of BRICS development bank whose formation has been delayed over differences between China and India over its holding pattern. China, the biggest economy in the BRICS, wanted majority stake in the bank that would be a counter to the IMF dominance. The bank will have $100 billion capital within seven years. The highlight of the meet will be the creation of a $100 billion fund with contribution from all five members that would tackle liquidity crisis that any member country may face in future............
Tanishq pulls the plug on gold deposit schemes
..........“There was resistance from customers, as they wanted to complete the scheme. But now, as the Ministry of Corporate Affairs has clearly stated our scheme will be under public deposits, we are forced to close the scheme. We have given customers time till the end of August. If they do not opt for purchase of jewellery, we will send them cheques to close the payment,”..........
55 firms collecting money illegally evade action
...........The secret note says that according to inputs received by the IB, about 55 companies are collecting money from the public in West Bengal “without registration either with the Securities Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) and without filing any offer document with SEBI.” “Inputs further state that the government authorities are aware of the companies but still has not initiated any action against them,” .........
Worst behind banking industry on NPA front: Kochhar
..........."There will be some addition to NPAs and the restructured assets to the banking industry, but I think these additions in FY14-15 should be less than the additions in FY13-14. In that sense, we can assume that the peak is behind us and gradually now there should be an improvement,"............
RBI throws spanner in AP govt’s loan sop
..........This is a major setback for the government, which had sought rescheduling of farm loans worth Rs 35,000 crore. A team of officials on Friday rushed to Mumbai to persuade RBI officials to at least extend the rescheduling to rabi season, which amounts to another Rs 15,000 crore. ............
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